CHINA
Hai Basin Integrated Water and Environment Management Project

GEF Project Brief
East Asia and Pacific Region
EASRD

Date: October 3, 2003
Team Leader: Douglas C. Olson
Sector Manager/Director: Mark D. Wilson
Sector(s): General water, sanitation and flood protection
Country Manager/Director: Yukon Huang
sector (50%), Irrigation and drainage (50%)
Project ID: P075035
Theme(s): Water resource management (P),
Focal Area: I - International Waters
Environmental policies and institutions (P), Pollution
management and environmental health (P)
Project Financing Data
[ ] Loan [ ] Credit [X] Grant [ ] Guarantee [ ] Other:

For Loans/Credits/Others:
Amount (US$m): 17
Financing Plan (US$m): Source
Local
Foreign
Total
BORROWER/RECIPIENT
14.74
0.00
14.74
GLOBAL ENVIRONMENT FACILITY
5.17
11.83
17.00
Total:
19.91
11.83
31.74
Associated Parallel Financing (US$m): Source
Local
Foreign
Total
Tianjin Urban Development and Environment Project II



Borrower
51.77
5.63
57.40
IBRD
0.00
40.85
40.85
Total
51.77
46.48
98.25




Borrower/Recipient: PEOPLE'S REPUBLIC OF CHINA
Responsible agency: MOF, MWR, SEPA, BEIJING & TIANJIN MUNICIPALITIES & HEBEI PRO
Ministry of Water Resources
State Environmental Protection Agency
Municipalities of Beijing and Tianjin
Province of Hebei
Address: Ministry of Water Resources, Baiguang Road, Beijing, China
Contact Person: Mr. Liu Bin - MWR and Ms. Li Pei -SEPA
Tel: (8610) 6320-2127 - MWR; (8610) 6615-3366 ­ SEPA
Fax: (8610) 6320-2027 - MWR; (8610) 6615-1932 ­ SEPA
Email: nfb@mwr.gov.cn
Estimated Disbursements ( Bank FY/US$m):
FY
2005
2006
2007
2008
2009
2010



Annual
2.44
3.25
3.35
3.60
3.17
1.19



Cumulative
2.44
5.69
9.04
12.64
15.81
17.00



Project implementation period: 5 years
Expected effectiveness date: 07/01/2004 Expected closing date: 06/30/2009
OPCS PAD Form: Rev. March, 2000
GEF Project Brief (PAD)

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A. Project Development Objective
1. Project development objective: (see Annex 1)
The overall objective is to catalyze an integrated approach to water resource management and pollution
control in the Hai River Basin in order to improve the Bohai Sea environment. Specifically, the Project will
(i) improve integrated water and environment planning and management in the Hai Basin, (ii) support
institutional aspects related to effective local, municipal/provincial, and basin-wide water and environment
planning and management, (iii) enhance capacity building in water and environment knowledge
management and implementation, and (iv) reduce wastewater discharges from small cities along the rim of
the Bohai Sea. The Project is intended to demonstrate new technologies and management approaches, with
the lessons learned applied throughout the Hai Basin and other basins boarding the Bohai and Yellow Seas.
The Project will also serve as a complement and link to, water and environmental management issues for
two on-going World Bank-financed operations in the Hai Basin: Second Tianjin Urban Environment and
Development Project (TUDEP2 - FY03) and the Water Conservation Project (WCP - FY01).
2. Key performance indicators: (see Annex 1)
Key performance indicators are:
i. Decreased water pollution in pilot counties (tons of reduction);
ii. Reduced Groundwater overdraft in pilot counties (rate of water table lowering reduced);
iii. Reduced pollution loading to the Bohai Sea from coastal counties;
iv. Formulated Integrated Water and Environmental Management Plans (IWEMPs) for 10 selected
counties in the Hai Basin and for Tianjin Municipality;
v. Produced seven Strategic Studies at central and Hai Basin levels and integrated findings into
IWEMPs;
vi. Carried out four Demonstration Projects and integrated findings into IWEMPs;
vii. Formulated Strategic Action Plans (SAP) for the ZhangWeiNan subbasin and Hai River Basin;
viii. Established river reach data management system for the Hai Basin;
ix. Established a functional Evapotranspiration (ET) Management system for the Hai Basin;
x. Provided technical support to Tianjin coastal wastewater management.
B. Strategic Context
1. Sector-related Country Assistance Strategy (CAS) goal supported by the project: (see Annex 1)
Document number: 25141
Date of latest CAS discussion: December 19, 2002
The proposed Project is consistent with the Bank's Country Assistance Strategy (CAS) for China. The
sector related goal is the sustainable development and management of water and other natural resources.
The Strategy includes environmental protection objectives, strengthening of institutions and tools for
improved environmental management, and financing of environment-related investments that will produce
rapid benefits. The proposed Project will contribute towards these objectives and actions by promoting a
more integrated approach to water resource management in the Hai Basin, providing technical assistance to
the construction of wastewater treatment plants in secondary towns and wastewater canal clean up
(financed by TUDEP2), and funding pre-investment studies for innovative projects including pollution
prevention and wastewater treatment and reuse/disposal. The proposed Project was mentioned in the CAS
as a project to support environmentally sustainable development, and specifically in the area of improving
water resources management.
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1a. Global Operational strategy/Program objective addressed by the project:
The proposed Project falls under the GEF International Waters Focal Area, and specifically under
Operational Program Number 10: Contaminant-Based Program. The Project has direct relevance for the
Global Programme of Action (GPA) for the Protection of the Marine Environment from Land-based
Activities. One of the Chinese leaders in the national response to the GPA is actively involved in the
preparation of this GEF Project. The Project directly responds to the needs of the GPA by seeking to
reduce pollutant loadings to the Bohai Sea through integrated water and environment management. The
Bohai Sea is a semi-enclosed sea with globally important ecological resources that provide significant
fishery benefits to China, North and South Korea, and Japan. The GEF Operational Program objective of
the Project is to improve water resources management and reduce land-based sources of pollution to the
coastal and marine environment of the Bohai Sea. Furthermore the Project would also consider the need for
environmental flows in rivers, flood plains, wetlands, and into coastal and estuary waters.
The integrated framework proposed by the Project would allow better understanding of important
surface-subsurface and water quantity-quality interactions, and facilitate important new management
approaches. Consistent with Par. 10.5 for OP 10, the Project will "play a catalytic role in demonstrating
ways to overcome barriers to the adoption of best practices limiting contamination of international waters."
OP 10 is also the only International Waters program which does not require the Project to be tied to a
multi-country collaborative effort. The global benefits are the improvements of the Bohai Sea coastal and
marine environment, and the demonstration-dissemination-replication nation-wide and region-wide of
compliance with the GPA. Close cooperation with on-going GEF-financed efforts, such as the Yellow Sea
Large Marine Ecosystem (YSLME) Project and the Partnerships for the Environmental Protection and
Management of Asian Seas (PEMSEA) / Bohai Sea Project, would be maintained during Project
implementation. During Project preparation, linkages have already been established between the Project
management offices and periodic interactions will take place during implementation. The long-term
objective of the former Project is ecosystem-based, by supporting environmentally-sustainable management
and use of the Yellow Sea. The proposed Project will contribute to YSLME Project's long-term objective
and to PEMSEA's objective to control land-based sources of pollution of the Bo Hai Sea and to establish
inter-jurisdiction coordinating mechanisms to address environmental issues in the Bo Hai Sea.
The Project also supports the objectives of the Convention on Biodiversity, insofar as one of the
components focuses on environmental needs for water (see Annex 2). This will include specific studies on
requirements for reduced pollution and increased flows to the Bohai Sea in order to enhance marine
ecology, and other studies to determine minimum ecological flows for water courses and wetlands in the
Hai River Basin.
In the Hai Basin (as elsewhere) the poor are the first and most seriously affected by the deteriorating
environment. This can lead to social instability, which is a global concern. Water pollution negatively
affects water sources for domestic and irrigation purposes impacting on health and livelihoods. Untreated
wastewater is used for irrigation when other water sources are not available. Water table drawdown affects
the poor directly because their wells are normally shallow and dry up sooner. The need to drill deeper
wells, install more powerful pumps and consume more electricity is a continuous burden on poor farmers,
many of which end up without irrigation water which has a major effect on their livelihood, and forces them
to use often polluted surface water for domestic and irrigation purposes. The Project will support
integrated water and environment management in rural and peri-urban areas and will involve farmers to
participate in the definition of viable alternatives to improve the water resource conditions and use patterns.
Community Driven Development (CDD) will be piloted in one of the demonstration projects to build in
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more participation and ownership.
The Project is also consistent with the Bank's 2001 Environment Strategy, its 1993 Water Resources
Management Policy and its 2003 Water Resources Sector Strategy. The Environment Strategy emphasizes
the need to improve the quality of growth, reduce environmental health risks, improve the institutional
framework for environmental management, and protect regional and global commons--all key elements of
the proposed Project. The Water Resource Policy stresses the importance of managing water in a
comprehensive and integrated manner, which is one of the primary objectives of the Project. The Water
Resources Sector Strategy emphasizes the importance dedicating more effort to integrated water resources
management actions in water rights administration, discharge control, water conservation, pricing,
institutional strengthening combined with infrastructure investments and poverty alleviation. The Project
would support the management part of this equation linked to major ongoing infrastructure investment
programs.
Finally, the proposed Hai Basin Project also is in line with the World Bank's China Country Water
Resources Assistance Strategy (CWRAS), which is an outgrowth of the Water Resources Sector Strategy.
The CWRAS addresses the important issues and provided a good foundation for future Bank assistance to
China in water resources management issues. One of the important messages in the CWRAS is that
integrated water resources management is both a top down and a bottom up set of activities. It is not
possible to achieve integrated water resources management only by establishing laws, policies, regulations
standards, and water allocations from the top down. Implementation needs to be bottom up. In China that
means that the counties (and the townships, villages, and individual water users) need to be directly
involved in planning and implementing integrated water resources management actions, including water
rights and well permit administration, and enforcement, discharge control, industrial restructuring, "real"
water savings measures, wastewater treatment, treated effluent reuse, etc. The Project addresses many of
the important issues discussed in the CWRAS including a strong emphasis on top-down bottom-up water
resources management.
2. Main sector issues and Government strategy:
Degradation of the Bohai Sea
The Bohai Sea, located in the northwest corner of the Yellow Sea, is one of the world's ecologically
important, and stressed, bodies of water. The fishery resources are important to China, Japan, and North
and South Korea. More than 40 rivers discharge into the Bohai Sea, of which the Yellow (Huang), Hai, and
Liao rivers are the most significant. From an ecological perspective, the Bohai Sea is a large, shallow
embayment of the Yellow Sea. The Yellow Sea, in turn, is a shallow continental sea of the northwest
Pacific Ocean. These relationships are important because of the physical and biological links between these
systems. In particular, fish and shellfish stocks in the Yellow Sea are dependent on the Bohai Sea as a
reproduction and nursery area.
The open water environment in the Bohai Sea supports diverse marine life including invertebrates, fishes,
marine mammals and birds. In the past, a major source of larvae and juveniles for the East China Seas
came from the Bohai Sea, but this function has steadily diminished. Therefore, the ecological condition of
the Bohai Sea is critically important for maintaining fishery stocks and biodiversity in northwest Pacific
Ocean fisheries. It is generally accepted that over-fishing, pollution, reduction of freshwater inflows and
habitat loss have combined to reduce these ecosystem functions.
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The Bohai Sea has historically been an important fishing area due to its location adjacent to major
population centers, and its role as a seasonal spawning and nursery ground for the larger and more
productive Yellow Sea fishery. The history of Bohai Sea fisheries is one of boom and bust scenarios, with
the major impact being the introduction of motorized fishing vessels in the 1960s, and new types of fishing
gear such as fine-mesh nets for prawns that also caught all kinds of juvenile and larval fish. In 1988, prawn
trawling was banned, and has been replaced now by thousands of kilometers of drift and set gill nets, which
also have a negative impact on juvenile and larval fish. A major paradox of the Bohai Sea fishery is that
despite its damaged condition, it is still attracting increasing numbers of fishermen due to lack of alternative
employment in the region for many people. Today, the Bohai Sea is very heavily fished, with almost 90,000
registered fishing vessels in the provinces/municipalities surrounding the Sea.
In contrast to the decline in the natural aquatic systems, aquaculture has grown rapidly, and the Bohai Sea
and northern Yellow Sea now account for almost two-thirds of the PRC's total production. The major
species cultivated are prawns, oysters, clams, mussels, cockles, abalone, and seaweed. Pollution, both from
external sources and self-production, as well as diseases are increasingly affecting aquaculture production,
and the threat of human disease and toxic contaminants are putting pressure on the government and the
industry to clean up pollution problems.

The Bohai Sea is subject to heavy land-based pollution from domestic, industrial, agricultural, and
livestock sources. The Bohai Sea is subject to one-third of the wastewater and half of the pollutant loading
discharged into seas bordering China. This amounts to 3 billion m3 of wastewater and 700,000 tons of
pollutants per year. The areas where pollutant concentrations exceed the national standards in the Bohai
Sea, mainly for inorganic nitrogen and phosphorous, has been expanding and in 1997 it covered 43,000
km2, accounting for half of the total sea area. The most seriously affected areas include the estuaries and
coastal shallows. Pollution has led to mass mortalities of aquaculture species and contributes to an
increasing frequency of harmful algal blooms, commonly known as "red tides." In 1989 a "red tide"
covering 1,300 km2 formed in the Bohai Sea off the coast of Hebei; an even more massive "red tide"
extending over 3,000 km2 appeared in the Liaodung Gulf of the Bohai Sea in 1998.
Water Pollution
Surface and groundwater quality in China has been seriously degraded due to lack of effective pollution
control, combined with rising population and industrial operations. Sixty-eight percent of the total river
length in the north China plains is classified as polluted (i.e., unsuitable as raw water sources for drinking
water), and large amounts of the groundwater resource is also polluted. Hai River is one of the most
polluted river systems with more than 80% of the river reaches classified as polluted. Much of this is at or
above Class V (worst pollution category). Hai River discharges into the Bohai Sea and is a major
contributor to its pollution loadings.
The Chinese Government is beginning to address the serious water pollution problem in the Bo Hai Sea and
the Hai Basin, both of which have been identified as priority areas in the 9th National Five Year Plan
(1995-2000). The State Environmental Protection Administration (SEPA) has prepared the "Bo Hai Blue
Sea Action Plan" and the "Water Pollution Prevention Program of Hai River Basin". Both plans include
components of pollution control. The Government's efforts to control pollution has been focused on large
municipal and industrial sources, with the major cities of Beijing, Tianjin, and Shijiazhuang having
embarked on large-scale wastewater treatment plant construction programs. Despite considerable reduction
of pollution generated from these large point sources, water quality has continued to decline. This trend
suggests that many other sources are contributing to water pollution. Reducing pollution from secondary
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cities and towns and suburban industries is essential to improving water quality in the Hai Basin and the
environment of the Bo Hai Sea. Although information on the impact on water quality from these areas is
limited, it is estimated that ­ together with surrounding rural areas ­ they account for more than half of the
total pollution generated in the Hai Basin. However, pollution from these peri-urban and rural areas is
largely uncontrolled. Almost none of the secondary cities and towns have wastewater treatment facilities.
Township and Village Enterprises (TVE) and other small industries located in and around these cities and
towns have very little pollution control infrastructure.
In 2001, SEPA formulated the 10th Five Year Plan of Water Pollution Prevention and Treatment in the Hai
Basin, briefly named the Hai River Plan. The Hai River Plan is based on a Program of Water Pollution
Prevention in the Hai Basin, approved by the State Council in March 1999. In this plan, the programmed
water quality goals of some river reaches were revised, a control target index of gross amount of pollutant
for 2005, COD and NH -N were added, and some necessary water pollution treatment items were
3
supplemented. The Hai River Plan identified that the key needs are to substantially reduce the gross amount
of pollutant discharge in Hai Basin, to guarantee drinking water source areas reach standards, to address
cross-provincial water quality disputes, and to establish a control system for the gross amount of NH -N
3
pollutant.
Water Scarcity and Groundwater Mining
Water resources in China are unevenly distributed. While water resources are quite abundant in the south,
water availability in the north is very limited. In the Hai Basin, water availability is only 305 m3 per capita
which is about 14% of the national average and about 4% of the World average. A 2001 study sponsored
by the World Bank, "Agenda for Water Sector Strategy for North China" estimates current economic losses
from water shortages of approximately US$7.3 billion per year in the three major river basins in North
China: the Hai, Huai, and Huang (Yellow River). Total abstraction of groundwater in the Hai Basin is
estimated to be around 26 bcm per year, which is approximately 9 bcm more than the sustainable yield.
The Government has started to take measures to address water scarcity problems, including improving
irrigation efficiency, increasing the price of piped water to encourage conservation and improve the
finances of public water utilities, and encouraging wastewater reuse. One of the most ambitious measures
is the proposed "South-North Water Transfer Project" (SNWT Project). This Project, when completed, will
transfer 20 bcm of water from the Yangtze River system to North China, including the Hai Basin, at an
estimated cost of around U.S. $10-15 billion.
China's leadership, in particular Premier Zhu Rongji, has made a point of emphasizing the need to combine
the construction of the SNWT Project with redoubled efforts on water management and water use
efficiency, pollution clean-up and prevention, and appropriate (i.e., higher) pricing. The official slogan
emerging from the high-level study session in October 2000, where it was decided to go ahead with the
Eastern and Central Routes of the SNWT Project is "first save water, then transfer water; first treat
pollution, then move water; first protect the environment, then use water."
In order to safeguard sustainable development of the social economy in the capital city of Beijing and
surrounding areas, the Capital Water Resources and Sustainable Utilization Plan for 2001-2005 for the
Early Part of 21st Century, was approved by the State Council. The water consumption in Beijing has
exceeded bearing capacity of the water resources and the ecological system due to rapid population and
economic growth and the high speed of urbanization. Therefore, in view of the water ecological system, the
plan emphasized the need for coordinated attention to population, resources, and the environment. The Plan
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aims to achieve a general balance of water resources supply and demand in terms of the water supply
systems and the configuration of water resources in local region, in order to guarantee sustainable
development of the social economy in Beijing and surrounding areas. The Plan will include integrated
policies such as water conservation, water recycling, utilization of rainfall and flood waters, conjunctive
use of surface water and groundwater, water resources protection, and adjustments in water pricing.
Water and Environmental Management Institutions
The complex and interrelated nature of water pollution, water scarcity, groundwater overdraft, and flooding
in the Hai Basin calls for an integrated approach to water and environmental management. An integrated
approach will lead to better understanding of important surface/subsurface and water quality interactions,
and facilitate new management techniques. However, integrated water and environmental management
techniques are problematic because of difficulties in inter-jurisdictional and inter-administrative
cooperation along several dimensions.
Water and environment management involves many central-level ministries and agencies: Ministry of
Water Resources (MWR), SEPA, Ministry of Construction (MOC), Ministry of Agriculture (MOA), and
others. MWR has the primary responsibility for overall management of the nation's water resources, and
SEPA has overall responsibility for pollution control. There are considerable overlapping jurisdiction
problems between these agencies and with other ministries and agencies concerning urban water supply,
water pollution control, groundwater management, and irrigated agriculture. Much of this problem has its
foundation in Chinese law that applies to water resources (Water Law) and pollution control (Water
Pollution and Prevention Control Law --WPPC) in which mandates are not clear, with overlapping
responsibilities, and poorly defined planning linkages between the two ministries. Laws are traditionally
drafted to give ministries power, not to share power. The Project would provide a powerful demonstration
effect and an incentive to break through these horizontal institutional barriers.
The management role of central ministries is further limited by the increasing powers of provinces
following the decentralization process. According to the official government structure, local and provincial
agencies have vertical technical interaction with central ministries. However, the local and provincial
agencies report and depend on provincial and lower-level governments, especially in relation to
administration of laws and most importantly for funding. Well-meaning principles (such as water allocation
at the basin level or polluter-pays-principle) are often in conflict with the economic interests of the
provinces and lower-level governments which have no legal obligation to downstream jurisdictions under
current Chinese laws. Administrative bodies -- whose financial viability depends on provincial budgets --
empowered by laws to enforce regulations at the local level are often under pressure to act in the interest of
local governments to the detriment of sound overall water or environmental resource management. This has
implications not only at the planning level, but also in critical areas such as pollution enforcement. The
Project would provide a powerful demonstration effect and an incentive to break through these vertical
institutional barriers.
China also has a number of River Basin Commissions (RBCs) for its major river basins. The RBCs are
part of the MWR and, while they have been established for many years, are unrepresentative of basin
stakeholders, have no separate governing board or corporate status, and have a major focus on basin
planning, hydraulic infrastructure construction and operation and flood control. It is difficult for the RBCs
to enforce provisions of basin plans on other sector ministries and provincial governments, and the
functions they perform overlap with activities undertaken at the provincial and local level. In principle,
RBCs prepare basin development and operating plans in full consultation with the provinces, sectoral
ministries, and other stakeholders. In practice, there are few formal consultation mechanisms, and the main
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directives affecting RBC activities are received vertically from MWR. A further factor is that SEPA has no
institutional/operational presence at the basin level.
3. Sector issues to be addressed by the project and strategic choices:
Land-Based Sources of Pollution to Bohai Sea: An important Project focus will be on water pollution
from coastal small cities in Tianjin Municipality for two reasons. First, the large urban areas in the Hai
Basin such as Beijing, Tianjin, and Shijiazhuang are already investing in large Wastewater Treatment
Plants (WWTP); yet more than half of the population and pollutant loading comes from outside the large
urban areas. Second, since Tianjin borders on the Bohai Sea, interventions to reduce wastewater flows
should have an immediate beneficial impact on water quality in the Sea. The GEF grant would finance
technical assistance to address complex water pollution control problems in the Tianjian coastal area,
including industrial pollution control, remediation of contaminated canals that flow into the Bohai Sea, and
wastewater management institutional and financial issues. The Grant would also be used to pilot an
incentive-based financing mechanism for wastewater management in the coastal areas. These activities
would be carried out in close coordination withthe World Bank's FY03 TUDEP2, which provides financial
support for the rehabilitation of the canal and construction of small cities wastewater treatment plants.
Left on their own, the secondary cities and towns in the Hai Basin are unlikely to invest in comprehensive
wastewater management systems for several reasons. One is that the financial constraints facing secondary
cities and towns, and rural areas are severe. The fiscal position of many small city governments is weak
and many have heavy debt burdens. Another reason is that the massive national effort to control water
pollution is mainly focused on point industrial sources and large urban areas (with populations over
500,000 inhabitants). Since national and provincial resources are major sources of financing for water
sector projects, the gap in planning seriously limits the development of comprehensive wastewater
management in secondary cities towns.
China is beginning to recognize the importance of peri-urban and rural non-point sources of pollution,
especially animal wastes. SEPA is currently developing comprehensive regulations on this subject and part
of the output of the Project will be in defining the types and relative impacts of non-point sources in the
Tianjin area as a basis for developing county policies on Non-Point Source (NPS) management.
Water and Environmental Management: The Project would finance the formulation and implementation
of "Integrated Water and Environmental Management Plans" (IWEMP) in Tianjin Municipality and 10
counties throughout the Hai Basin. Pre-investment studies for priority infrastructure will also be
undertaken, with future financing coming from either local or international sources, including a possible
World Bank-financed follow-up project. The plans will consider both water quantity and quality issues,
with special emphasis on treating wastewater, controlling groundwater overdraft, and wastewater reuse.
Although the area covered under the Project is only a small percentage of the Hai Basin (less than 10%), it
is expected that the plans will serve as powerful examples for other counties and municipalities. The
strategic choice was made to focus water resource planning based on administrative boundaries at the
county level rather than strict hydrological boundaries because existing jurisdictions have the political
authority and control the implementing agencies. Moreover, both Tianjin and the selected counties in Hebei
and Beijing are involved in on-going Bank operations (TUDEP2 and WCP) that are already dealing, in a
limited capacity, with some water resource management issues. However, in recognition of the importance
of carrying out water and environment planning and implementation within hydrologic boundaries, the
Project will select one key subbasin (ZhangWeiNan) which will cover several counties for development and
initial implementation of an IWEM Strategic Action Plan.
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The Project will facilitate the development of new institutional arrangements for integrated water and
environmental management at the local, municipal, and basin level, and also provide policy support at the
various levels. At the local and municipal level, municipal and county coordinating mechanisms with
multiple agency participation for water and environmental management and organized by the local
governments will be established to coordinate all water resource related activities within the respective
jurisdiction. For the key subbasin (ZhangWeiNan) institutional cross-county arrangements for integrated
water and environment management will be explored. At the Basin level, new institutional arrangements
for basin-wide policy, planning, and management will be investigated and, hopefully, lead to the
establishment of a high-level, multi-sectoral coordinating committee. During Project implementation a
high-level Project coordinating committee and high-level steering committees led by MWR and SEPA will
provide the institutional and coordinating support for basin wide IWEM. The mandate, functions, and
authority of the existing Hai River Basin Commission (HBRC) in relation to a possible Basin Coordinating
Committee will also be examined. The Project will also help the HBRC improve its Knowledge
Management (KM) program, which includes activities such as measurement, monitoring, modeling,
databases, planning, and information dissemination related to water and environmental management.
C. Project Description Summary
1. Project components (see Annex 2 for a detailed description and Annex 3 for a detailed cost breakdown):
The Project will support the development of top-down and bottom-up mechanisms for integrated water and
environment management in the Hai Basin, based to the extent possible on existing institutional
mechanisms. The Project will also promote development of new coordination mechanisms at all levels that
will adopt practical and pragmatic methods to overcome current institutional barriers to integrated water
and environment management. The key aspect is that the Project needs to have maximum incorporation of
horizontal and vertical integration. Horizontal integration includes cross-sectoral cooperation and
coordination of actions between water resources and environmental protection ministries/bureaus, as well
as others including agriculture and construction ministries/bureaus. Vertical integration includes direct
linking and constant interaction between the Central and Hai Basin component activities and the smaller
jurisdictions of ZhangWeiNan subbasin, Tianjin municipality, and Beijing/Hebei counties components. The
Project will be implemented in two phases (see Annex 4). The two phased approach will permit a process
of good planning followed by specific actions to affect real change. Parallel demonstration projects will test
and demonstrate high priority actions that are clearly needed throughout the basin. The proposed Project
includes four components:
Component 1: Integrated Water and Environment Management - IWEM (US$14.30)
The IWEM will be divided into 3 subcomponents: (a) Strategic Studies at the central and Hai Basin levels;
(b) integrated water and environment management planning; and (c) demonstration projects. All three of
these subcomponents are very closely interrelated. The strategic studies would support and provide
guidance to IWEMPs and to the demonstration projects. The demonstration projects would provide
important practical input into the IWEMPs. There would be constant interaction between these
subcomponents to ensure that they are all working together in an integrated manner.
Subcomponent 1A - Strategic Studies - (US$1.59)
The seven strategic studies focus on four primary areas of concern at the Hai Basin level -- policy, legal
and institutional issues; environmental needs for water including the Bohai-Hai linkages; water quantity
management; and pollution management. The seven strategic studies are: (a) Policy and Legal Framework
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and Institutional Arrangement; (b) Bohai Sea Linkage; (c) Countermeasures for the Protection and
Measurement of the Water Ecological System; (d) Water Savings and High Efficiency Water Utilization;
(e) Administration of Water Rights and Well Permits, and Sustainable Groundwater Exploitation; (f)
Wastewater Reuse; and (g) Water Pollution Planning and Management. These will provide both the
substantive framework for the entire Project as well as guidance for the IWEMPs. The time frame for the
strategic studies allows both for horizontal linkages between the studies and with the IWEMP planning
process.
Subcomponent 1B - Integrated Water and Environment Management Planning - IWEMP (US$9.36)
The IWEMP subcomponent is the core of the Project. It would provide an example of the methods and
benefits of this approach to China and to the receiving environment of the Bohai Sea. The subcomponent
will provide the context within law, policy, institutional arrangements, and operational practices, for the
development of practical approaches to IWEM at the basin, sub-basin, and county levels. The IWEM
planning process for selected counties in Beijing and Hebei, and for Tianjin municipality would utilize the
outputs of the strategic studies as a basis for developing specific IWEMPs for their respective jurisdictions.
The demonstration projects (see below) would provide examples of how, in practice, specific aspects of the
IWEMPs can be implemented. This subcomponent would be carried out in 2 phases, the first phase would
take about 2 years and would involve the preparation of the plans and the second phase would take about 3
years and would include initial implementation of the IWEMPs. The main purposes of the subcomponent
would be to improve the capcity of local governments and water and environment management entities to
carry out IWEM, and to achieve specific and sustainable improvements in water and environmental
outcomes.
The subcomponent would support the formulation of an IWEM Strategic Action Plan (SAP) for the
selected subbasin (ZhangWeiNan). The primary focus of the ZhangWeiNan SAP would be on water
pollution, but water quantity aspects will also play an important role insofar as quality and quantity
management intersect in virtually all aspects of pollution management. The subcomponent would also
support the preparation of IWEMPs in 5 counties in Beijing, 5 counties in Hebei and in all of Tianjin.
These plans would: (a) evaluate present surface and groundwater conditions in terms of both quantity and
quality; (b) establish target objectives for improvements in water quantity and quality management
including the definition of monitoring indicators and monitoring and evaluation requirements for tracking
improvements; (c) prepare detailed plans for reaching targets using a 10 and 15 year horizon; and (d)
define a set of initial actions to be implemented during the second phase of the Project. In the second phase
of the Project, the subcomponent would support implementation of actions defined in the first phase which
would include activities such as preparation of feasibility studies and designs, training an capacity building,
and implementation of small civil works in activities which could include installation of measuring devices
and monitoring stations, onfarm irrigation system improvements, land leveling, changes in agriculture
practices, groundwater recharge, wells, wastewater collection and treatment, and environmental restoration.
The subcomponent would facilitate the establishment of institutional coordinating mechanisms for IWEM
in the Beijing and Hebei pilot counties and in Tianjin. The intention is to help to improve, develop, and
implement a set of policies, and legal, administrative and institutional instruments at the county and
municipal level. A basin-wide IWEM SAP would be prepared for the entire Hai Basin during the second
phase of Project implementation after the strategic studies and the county and municipal IWEMPs have
been prepared, and based on lessons learned from them, with focus on capacity building and basin
integrated management, on the basis of the natural characteristics of the basin, the existing Bohai Action
Plan, and the 10th Five Year Plan of Water Resources Protection and Water Pollution Prevention in Hai
River Basin.
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Subcomponent 1C - Demonstration Projects (US$3.35)
This subcomponent would finance demonstration projects that will serve as experimental units to carry out
the IWEMPs. The demonstration projects will be carried out in selected counties would address: (i)
effective control of wastewater discharge, (ii) pollution control combined with environmental
improvements, (iii) "real" water saving and (iv) effective management of water rights and well permits.
These are all critical areas common to all Hai Basin counties and they will provide powerful examples on
how to address these complicated issues in an effective manner at the county level. As these demonstration
projects progress, they will provide guidance to the counties and municipality for how to address these
issues in the IWEMPs. The demonstration projects will include an initial design phase which will take
about 1 year. Annual action plans will be developed for each demonstration project based on the concept
of refining and improving the demonstration projects based on the previous year's experience.
Component 2: Knowledge Management - KM (US$6.51)
The KM component will have 2 subcomponents: (a) KM Development; and (b) Remote Sensing and
Evapotranspiration (ET) management systems. These subcomponents are very interrelated and need to be
prepared and implemented in a coordinated manner. KM is the technical basis through which the Project
will be implemented and all KM activities at all levels are grouped together in this component. Further, to
ensure that this remains a needs-driven and not technology-driven component, significant attention will be
given to the management of the component.
Subcomponent 2A - Knowledge Management - KM (US$5.00)
This subcomponent would provide a service function for all users and clients within the Project and would
provide hardware and software tools to help Project participants to address their specific issues. The
subcomponent would improve data management, common information system platforms, standardized data
transfer and security protocols, decision-support requirements, data acquisition including remote sensing,
and purpose-specific systems such as water use and pollution discharge permitting and tracking. A key
initial activity is a GIS-based approach for integrating the two different water function zone systems to
allow MWR and SEPA data systems to communicate and to manage water and the water environment in an
holistic manner. KM activities are essential for improving basin-wide water quality monitoring and
modeling systems, water ecological environment monitoring systems for river reaches and other water
bodies in the Basin, including a coastal water quality model; basin-wide network of flow monitoring
stations coupled with a simulation model for real-time reservoir management and water allocation; regional
groundwater models; GIS mapping; satellite imagery for improved resources management, etc. In addition,
KM activities will strongly support the KM needs of Project pilot counties in Beijing and Hebei, Tianjin
municipality and ZhangWeiNan subbasin. This will include hardware, software and training aspects
concentrating on GIS systems, data sharing and management, monitoring, modeling, remote sensing and
water and environment planning.
The development of the KM system will depend on the close collaboration between the MWR and SEPA,
as well as other units at all levels related to the use and conservation of water resources in the Hai Basin.
The system would taken into consideration both differences with present management methods of the
various units and the practical needs for shared KM. During Project preparation, this collaboration has
been proceeding well resulting in a significant breakthrough in MWR/SEPA cooperation, which has been
poor in the past. The KM subcomponent would be jointly managed by MWR and SEPA through the
Project KM Group in order to ensure integration.
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Subcomponent 2B - Establishment of Remote Sensing (RS) Evapotranspiration (ET) Management
System (US$1.51)
This subcomponent will support improvements in the conservation of water resources and the water
environment, in order to achieve a rational water balance and its sustainable management, based on a focus
on ET management. ET management is the principal innovative international cutting edge approach being
introduced under the Project. The key to sustainable water quantity management in the Hai Basin is to
reduce present amounts of ET to sustainable levels (i.e., reducing ET throughout the basin in order to
eliminate groundwater overdraft and provide more surface water for ecological purposes including
enhancing outflow to the Bo Hai Sea), and then, in the future, to manage ET within the basin to remain at
these sustainable amounts. Many of the Project activities need to be solidly based on the ET management
concepts including: (i) high-efficiency water utilization and "real" water savings, (ii) administration of
water rights and well permits, and (iii) water quantity management within the IWEMPs in Tianjin and in
the Beijing and Hebei counties. Utilizing remote sensing techniques, the sub-component would evaluate
basin wide existing ET and existing ET for all of the counties within the Hai Basin. Then the amount that
basin-wide ET would need to be reduced in order to achieve sustainable use would be determined and a
target ET reduction would be assigned to each Project county involved in IWEM. The sub-component
would then support remote sensing and GIS techniques to develop county level ET reduction plans that
would become an integral part of water quantity management within the IWEMPs. The "real" water
savings demonstration project would develop practical approaches at the county level for remote sensing
based ET management.
Component 3: Tianjin Coastal Wastewater Management (US$4.75)*
The component would assist Tianjin address a set of critical water pollution control issues in the coastal
area, particularly for activities closely related to the TUDEP2, which directly provides an additional
US$98.25 through associated parallel financing to this component. A Coastal Wastewater Management
Study will cover institutional, financial, and technical studies for wastewater management programs. The
Dagu Technical Assistance activity would assist the TUDEP2 on technical aspects related to the
renovation and remediation of the 83 km-long Dagu Canal system which has served as the main wastewater
canal for Tianjin City for four decades and which discharges directly into the Bohai Sea. The total cost for
the Dagu Canal renovation is estimated at US$55.15 million, which will be financed under the TUDEP2.
The Dagu Catchment Industrial Pollution Control program will support an industrial pollution control
and pre-treatment study, and improve monitoring and enforcement of discharges into Dagu canal. Control
of industrial pollution is essential for the successful renovation of Dagu canal, and the proper operation of
municipal collection and treatment systems. A Small Cities Financial Incentives program will be
established to assist cities in meeting their financial obligations. Instead of providing construction
subsidies, the basic concept is to provide output based aide to small cities during the early years of their
service agreements with wastewater treatment companies. In order to receive these subsidies, however, the
small cities must demonstrate they have: i) a functional wastewater treatment plant, ii) plans to develop a
comprehensive collection system network; and iii) a comprehensive industrial pollution pre-treatment
program within the network collection area. TUDEP2 will provide an estimated US$43.10 million to
finance small city wastewater treatment facilities associated with the incentive program.
*) Together with the associated parallel financing through the TUDEP2 the cost of this component totals US$103 million.
Component 4: Project Management, Monitoring and evaluation, and Training (US$6.18)
Hai Basin Project management would support coordinated and integrated actions by the Ministries/Bureaus
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of environmental protection and water resources at the various levels. All Project Management Offices
(PMOs) would have Joint Expert Groups to assist the PMOs in coordination, review, supervision and in
some cases execution of technical activities under the Project. The Central PMOs would be supported by
an international expert panel with broad experience in water quality and quantity management, water and
environment planning and knowledge management. The PMOs will also arrange international and domestic
study tours and international and domestic training on a variety of topics related to IWEM, river basin
management, knowledge management, "real" water savings and ET management, pollution control, water
rights and well permits, wastewater treatment, wastewater canal clean up, wastewater reuse, ecological
restoration, etc. The Project will also support PMO operations, monitoring and evaluation and other
Project management aspects mainly through counterpart funding.

Indicative
Bank
% of
GEF
% of
Component
Costs
% of
financing
Bank
financing
GEF
(US$M)
Total
(US$M)
financing
(US$M)
financing
1. Integrated Water and Environment
14.30
45.1
0.00
0.0
7.40
43.5
Management
2. Knowledge Management
6.51
20.5
0.00
0.0
2.50
14.7
3. Tianjin Coastal Wastewater Management
4.75
15.0
0.00
0.0
4.30
25.3
4. Project Management, Monitoring and
6.18
19.5
0.00
0.0
2.80
16.5
Evaluation, and Training
Total Project Costs
31.74
100.0
0.00
0.0
17.00
100.0
Front-end fee
0.00
0.0
0.00
0.0
0.00
0.0
Total Financing Required
31.74
100.0
0.00
0.0
17.00
100.0
Note: An additional cost of US$98.25 million for the Tianjin Coastal Wastewater Management component is
included in TUDEP2.
2. Key policy and institutional reforms supported by the project:
The following reforms will be promoted under the Project:
i. Establishment of Institutional Coordinating Mechanisms in Tianjin, ZhangWeiNan, and the
selected Pilot Counties: Water coordinating committees or other institutional coordinating
mechanisms would be established to coordinate all water resource related activities within the
respective jurisdiction. This is necessary because water quality is usually regulated by the
Environment Protection Bureaus (EPBs); the Water Resources Bureaus (WRBs) typically manage
water allocations and flood control; and there are weak linkages between the public water and
wastewater utilities, and the environmental and water resource bureaus. In a situation of extreme
water scarcity, extensive water pollution, and unsustainable groundwater mining, a coordinating
body with jurisdiction over the various bureaus/agencies is required to achieve the necessary
integrated management of the resource.
ii. Establishment of a High-Level Hai Basin Coordinating Mechanisms: The same problems that
exist at the county and municipal level also exist at the basin level. New institutional arrangements
for basin-wide policy, planning, and management will be explored and, hopefully, lead to the
establishment of a high-level, multi-sectoral coordinating committee for the Hai Basin. The
mandate, functions, and authority of the existing HRBC in relation to the Basin Coordinating
Committee (BCC) will also examined.
iii. Policies for Controlling Groundwater Mining: Groundwater overdraft is a huge problem in the
Hai Basin, yet the administrative and regulatory structures for groundwater management are
mostly ill-defined and poorly implemented. The Project will help improve the legal, policy, and
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regulatory framework for actions such as: defining aquifers and safe yields, creating groundwater
management plans, permitting wells, licensing drillers, groundwater pollution control, etc.
iv. Policies for Water Pollution Control: Improving water quality throughout China, and particularly
in the Bohai Sea, will require more than just treating wastewater from large urban areas and
industries. It will also require dealing with domestic and industrial wastes from towns and villages,
and rural pollution such as livestock and agricultural run-off. The Project will help establish a
broad water quality management framework for these issues and begin to address rural and small
city/town pollution on a pilot basis. In addition, the Project will explore different financing and cost
recovery options for investments in water pollution control in small cities and rural areas.
3. Benefits and target population:
One set of benefits revolves around improved public health, healthier ecosystems, and environmental
aesthetics. Public health benefits stem from reduced use of untreated wastewater for irrigation, which
endangers both the irrigators and the people who consume vegetables and other sensitive crops. Public
health benefits will also accrue from reduced contamination of mariculture and capture fisheries, such as
prawns, oysters, clams, mussels, cockles, abalone, and seaweed cultivated in the Bohai Sea. Pollution, both
from external sources and self-production, as well as diseases are increasingly affecting mariculture
production, and the threat of human disease and toxic contaminants are serious problems. The clean-up of
polluted sewage canals will also improve environmental aesthetics, including odors, and raise property
values alongside canals.
Economic benefits will also be generated from improved productivity of mariculture, and better
management of water resources. Groundwater overdraft and pollution is threatening the sustainable use of
aquifers which are valuable water storage reservoirs. Control of groundwater overdraft will lower pumping
costs and preserve water for the future, thereby avoiding a "tragedy of the commons", with its
well-documented economic inefficiencies. Control of groundwater pollution will also preserve valuable
water storage reservoirs for drinking water purposes, where the alternative of building new storage
reservoirs or conveying water from large distances is generally prohibitively expensive for local use. Used
of reclaimed wastewater will create valuable new water supplies for irrigation and non-potable municipal
and industrial use. Better water allocation more closely related to the economic value of water, including
managed reallocation of water away from agriculture (without necessarily reducing agricultural yields) and
towards high value municipal and industrial uses. Finally, economic benefits at the farm level enhance
social stability which is of great importance in the Chinese system.
The China-GEF Hai Basin Integrated Water and Environment Project will significantly promote IWEM
with the long-term objective to make sustainable the use of water resources in the basin, where the water
crisis has become increasingly severe. In achieving its objective, the Project will also exert great influences
on local socioeconomic development and people's livelihood. development and implementation of the
IWEMPs will include participation of water users through water user associations and other mechanisms.
The water rights and well permits demonstration Project will also introduce CDD concepts to ensure
maximum ownership by the water users and the community in addressing and implementing the difficult
choices necessary to achieve sustainable use of water resources.
The Hai Basin covers the Beijing municipality, Tianjin municipality and Hebei province and parts of other
provinces in and around the North China Plain. People living in this area have seriously suffered from
water shortage and water pollution ­ especially those in the rural areas outside Beijing and Tianjin who
account for the majority of the population under the Project in the provinces. Control of water use and
pollution in the basin, supported by the Project will lead to improvement in people's living conditions and
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rehabilitation of their production sustainability. The Project will also require changes in their water use
behavior that further lead to multiple interaction between their economic activities and water and
environment management. As the Project beneficiary, therefore, local people's understanding, participation,
and collaboration will be pursued to ensure Project success.
A social assessment was conducted for the Project to ensure that the different needs and aspirations of the
Project beneficiaries and impacted people were taken into account. In terms of promoting IWEM, the
participation of women and men in Project activities as well as benefit sharing is pursued. The Project also
encourages the organization of Water User Associations (WUAs), in which women and men farmers
participate and are empowered. Female members in the WUAs' leadership are encouraged. The enabling
environment for gender equality in the Project area is good (e.g. existing legal and regulatory framework
that promotes equality; adaption of international conventions and commitments; an extended network of
individuals, universities and research institutes, and NGOs that promote gender equality).
4. Institutional and implementation arrangements:
The implementation arrangements would build upon the existing management structures for the TUDEP2
and the Water Conservation Project (WCP). The following agencies will have involvement in Project
implementation.
l
Ministry of Water Resources (MWR)
l
State Environmental Protection Agency (SEPA)
l
Ministry of Construction (MOC)
l
State Oceanic Administration (SOA)
l
Ministry of Agriculture (MOA)
l
Ministry of Finance (MOF)
l
Beijing Municipality
l
Tianjin Municipality
l
Hebei Province
l
Hai River Basin Commission (HRBC) (under the MWR)
A Project Coordinating Committee led by MOF and with participation from MWR, SEPA, Beijing, Hebei
and Tianjin will be responsible for coordinating the smooth implementation of the Project. High-level
Steering Committees headed by Vice Ministers and Project Management Offices in MWR and SEPA will
be responsible for implementing their parts of the Project in coordination with each other, and with the
Project provinces/municipalities, counties and sub-basin. Leading groups and Project Management Offices
will be responsible for their parts of the Project in Tianjin, Beijing, Hebei, Hai Basin Commission,
ZhangWeiNan and in each of the Beijing and Hebei pilot counties, all in coordination with each other, and
with the central level PMOs. All of these entities have already been formally or informally established and
where informal, will be formalized before negotiations.
D. Project Rationale
1. Project alternatives considered and reasons for rejection:
A project that would only support those aspects of water and environment management under the
responsibility of MWR and the provincial and county water bureaus was considered. This alternative
would be much easier to implement than the proposed Project because it would not require coordination
between different government entities, but would not be able to support the Project objective of promoting
integrated water and environment management which requires the involvement of MWR and SEPA and the
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respective provincial and county water resources and environmental protection bureaus, as well as
participation from MOF, MOA, MOC, and others and their correspondent provincial and county level
entities. In particular, the Project would not be able to include the water environment which is under the
jurisdiction of SEPA and for which MWR does not have responsibility.
A project that would only involve the county and municipal levels and not address Hai Basin or Central
level water and environmental management issues was considered. This alternative would also be easier to
implement and would address many bottom-up issues, but was rejected because it would not support basin
and central level policy, strategy, and institutional issues that are essential for integrated water and
environmental management.
The development of a complete Hai Basin IWEMP was considered as an additional Project activity, but
was rejected, because insufficient institutional mechanisms presently exist to effectively develop and
implement such a plan. With the successful implementation of the Project, a second phase could be
prepared and implemented that would include a Hai Basin IWEMP.
2. Major related projects financed by the Bank and/or other development agencies (completed,
ongoing and planned).
Latest Supervision
Sector Issue
Project
(PSR) Ratings
(Bank-financed projects only)

Implementation
Development
Bank-financed
Progress (IP)
Objective (DO)
Wastewater treatment, sewage system Beijing Environment Project 2
S
S
development, drainage company
strengthening
Water supply, wastewater treatment,
Hebei Urban Environment
S
S
institutional strengthening
Project
Wastewater treatment, sewage system Huai River Basin Pollution
S
S
development, institutional strengthening Control Project
Wastewater treatment, institutional
Liao River Basin Project
S
S
strengthening
Irrigated agriculture system
Water Conservation Project
S
S
improvements and water conservation,
self-financing irrigation and drainage
districts and groundwater management
Irrigated agriculture system
Tarim Basin Project 2
S
S
improvements and water conservation,
self-financing irrigation and drainage
districts and river basin management
Wastewater treatment, sewage system Shandong Environment Project
S
S
development, institutional strengthening
Irrigated agriculture system
Yangtze Basin Water Resources
S
S
improvements and water conservation, Project
self-financing irrigation and drainage
districts and river basin management
Wastewater treatment, sewage system Guangxi Urban Environment
S
U
development, river basin management
Project
- 16 -

---

Irrigated agriculture system
Irrigated Agriculture
S
S
improvements and water conservation, Intensification Project 2
and self-financing irrigation and
drainage districts
Coastal zone planning and management Sustainable Coastal Resources
S
U
improvements, marine aquaculture
Development Project
Other development agencies
ADB
"Transjurisdictional
Transjurisdictional water pollution
Environmental Management
Project"
River basin management
Yellow River Law Project
IP/DO Ratings: HS (Highly Satisfactory), S (Satisfactory), U (Unsatisfactory), HU (Highly Unsatisfactory)
3. Lessons learned and reflected in the project design:
The Bank has assisted in financing 17 water resources and irrigation projects in China and numerous water
supply and sanitation projects over the last 15 years. Generally, these projects have been implemented
efficiently, and time and cost overruns have not been excessive despite periods of sharp price escalation. In
recent years the Bank has been supporting institutional aspects of water and environmental management:
(a) at the Basin level in the Yangtze Basin Water Resources Project, the Tarim Basin II Project, the Guanxi
Urban Environment Project and the Liao Basin Environment Project; and (b) at the system level through
self-financing irrigation and drainage districts and water supply and sanitation corporations in numerous
projects. Key lessons from previous Bank-financed water resources projects in China are that:
i. detailed organizational and staff arrangements should be formulated and agreed before
implementation;
ii. counterpart funding should be committed before implementation, including the direct participation
of the Provincial Planning Commissions and Finance Bureaus;
iii. projects should include institutional development support for the strengthening of provincial and
local bureaus;
iv. water and environmental management needs to have both bottom-up and top-down aspects;
bottom-up activities need to have strong involvement by existing political/administrative entities
(townships, counties, prefectures, municipalities, provinces) including their respective
technical/administrative bureaus (water, environmental protection, agriculture, construction, etc.)
because these are the entities with direct line responsibility for management; top-down activities
should be concentrated at the river-basin level and should establish the enabling policy and
strategic environment for cross-sectoral and cross-administrative boundary coordination;
v. participation of water users in water resources management especially in the lower-level bottom-up
aspects is crucial; and
vi. data and knowledge management activities are critical to water and environment management and
need to be widely shared and compatible.
Experience with institutional development Project indicates that strong government support is necessary for
its success, and that specialized TA during preparation and early implementation is important to help
promote, teach, and establish institutional reforms before full implementation begins.
The 1993 World Bank Policy Paper on Water Resources Management and Chinese Government policy are
compatible and emphasize the following principles: (a) water resources should be managed and developed
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in a comprehensive integrated manner and consider cross-sectoral issues with the goal of ensuring the
sustainability of the water environment for multiple uses as an integral part of the country's economic
development process; (b) water resources planning and management should be carried out considering the
interrelationships between water, land and human resources with the objective of enhancing economic
growth and development in an environmentally sustainable manner; (c) water is an economic resource and
therefore should be managed in an economically efficient manner; (d) the river basin should be the basic
unit for planning and managing water resources; (e) water users should participate directly in water
resources management and development; and (f) water use should be efficient and environmentally
sustainable.
The profound water management problems facing China, high pollution levels, and growing numbers of
water and pollution disputes that have no resolution except recourse to the State Council, the reluctance of
the National People's Congress to move the draft Yellow River Law into law, and the overall direction of
institutional reform in China, combine to suggest that this Project would be implemented at a critical
junction in China's recent history of water resources and water environment management. As the only
World Bank supported Project that comprehensively addresses integrated water and environment
management in China, this Project has the potential to greatly influence institutional development at a time
when the central government is seeking improved institutional mechanisms for water management.
4. Indications of borrower and recipient commitment and ownership:
The Chinese government, at all levels, is committed to improving the ecological health of its coastal waters
and better management of its water resources. An important policy milestone was reached in July, 2000
when the representatives from the State Oceanic Administration (SOA) and the coastal
provinces/municipalities signed the "Bohai Declaration" which outlines the principles and objectives for
saving the Bohai, and commits their agencies to specific actions to achieve these goals. In 1999 the Marine
Environmental Protection Law (MEPL) was amended to better protect and improve the marine
environment, conserve marine resources, abate pollution, and ensure sustainable coastal and marine
development. Of particular importance for the proposed Project is Article 3 of the MEPL which calls "total
quantity control" of pollutants based on the measured carrying capacity of the coastal waters. SEPA is held
responsible for the prevention and control of land-based pollution that impacts the marine environment, and
in 1999 introduced the "Blue Sea Action Program." The State Council has also ratified the "Blue Sea
Action Program" which presents a suggested investment program of around US$7.2 billion for reducing
land-based sources of marine pollution. State Council Circular 37 [2000] promotes the concept of
integrated water resources management, water pollution control, and water conservation. Finally, both the
9th [1995-2000] and 10th [2000-2005] National Five Year Plans agreed by multiple ministries stress the
need for integrated water and environmental management, with the Hai Basin identified as the highest
priority.
Government commitment to improve water management in the Hai Basin and the Bohai Sea environment is
also demonstrated by the on-going investments in wastewater collection and treatment in the large cities
(Beijing and Tianjin) and agricultural water conservation infrastructure, such as the Bank-financed Water
Conservation Project (WCP). For secondary towns in Tianjin, the towns/counties must finance the
wastewater treatment works either through loans or self-financing covering all investment costs.
MWR, SEPA, Tianjin Municipality, Beijing Municipality and Hebei Province all participated in the
preparation of the GEF Concept Note and GEF PDF-B Grant request and the two preparation mission, and
strongly support the Project, utilizing to a great extent their own human and financial resources to
undertaken Project preparation activities. MOF, MWR, SEPA Tianjin, Beijing and Hebei have made initial
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commitments to provide counterpart financing during Project implementation. The catalyzing effect of this
Project is enormous and there is strong awareness by all of the entities involved in Project preparation that
the Project is key to carrying out integrated water and environment management in China. The incremental
cost analysis (Annex 12) shows that billions of dollars will be expended in near future to try to solve these
huge water quantity and water quality problems in northern China. The Project will contribute greatly to i
enhancing the benefits of these investments.
5. Value added of Bank and Global support in this project:
The Bank is helping the Chinese Government to develop and implement an integrated cross-sectoral
approach to water and environment management. The Project would address an important missing link in
efforts to improve water and environment management in the Hai Basin and the Bohai Sea environment.
Other GEF and Chinese initiatives are addressing the marine and coastal issues (PEMSEA and the Yellow
Sea Marine Ecosystem Project). Large Chinese cities, such as Beijing and Tianjin, often with partial World
Bank financing, are beginning to construct wastewater treatment systems to reduce land-based sources of
pollution into the Bohai Sea. The proposed Project will complement these efforts by financing IWEM
activities at the county and municipal level in rural and peri-urban areas (see Annex 2 for more detail).
More than half of the pollutant loading into the Bohai Sea comes from secondary cities and towns and rural
areas. The general approach taken will be to develop an IWEM framework, which deals with water
scarcity, groundwater mining, and water pollution. Management improvements will take place from the
bottom-up with pilot counties, at the middle administrative levels through Tianjin, and from the top-down
at the basin and national levels.
The Project builds upon, fills in the gaps, and links two Bank-financed projects, the WCP and TUDEP2,
and fits into the overall framework for improving the Bohai Sea environment. It would also help provide the
management framework for integrated water resources management in the Hai Basin, which is
indispensable for a long-term, sustainable approach to rescuing the Bohai Sea. Reducing pollution into the
Bohai Sea is best done within an integrated water resources framework. Although government policy calls
for an integrated framework, inter-jurisdictional and inter-administrative cooperation often proves difficult
in practice, and the Project will provide an incentive and approach to break through institutional barriers
and provide a powerful demonstration effect. The Bank is helping to provide international expertise to
provide Chinese counterparts with a broad range of management experiences and instruments to draw
upon.
E. Summary Project Analysis (Detailed assessments are in the project file, see Annex 8)
1. Economic (see Annex 4):
Cost benefit
NPV=US$ million; ERR = % (see Annex 4)
Cost effectiveness
Incremental Cost
Other (specify)
Per GEF requirements, a project-specific analysis on GEF incremental costs has been prepared and
included as Annex 12. IWEMPs, which will be prepared during the first phase of Project implementation
will carry out cost/benefit analyses of alternatives in order to determine the best plans from an economic
standpoint. Social and environmental aspects will also be considered in selecting the activities for the
IWEMPs.

2. Financial (see Annex 4 and Annex 5):

NPV=US$ million; FRR = % (see Annex 4)
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Financial analyses will be carried out as a part of the preparation of IWEMPs. These will evaluate the
financial feasibility of different options. IWEMPs will also include financing plans that indicate the
schedule and sources of financing for implementing the actions defined in the IWEMPs. The Project will
provide only limited financing for IWEMP implementation during the second phase. Government and other
resources will be required to implement these plans, and the Project counties and Tianjin have committed to
work to line up these financing needs. The use of higher water charges in both irrigated agriculture and
water supply and sanitation will also be an important sources of financing and financial sustainability.
These aspects will be defined during the preparation of the IWEMPs.

Fiscal Impact:
3. Technical:
The Project would introduce a new practical approach to water savings in irrigated agriculture using
remote sensing and ET management rather than only focusing on irrigation systems efficiency
improvements, which has been the approach in China in the past. Improving irrigation system efficiencies
does not necessarily save water and in fact can often increase the amount of consumptive use (ET) of
irrigated agriculture by eliminating leakages which were returning to the surface or groundwater systems
and utilizing that water for more crop production. "Real" water savings focuses on reduction in ET which
can be accomplished through a combination of irrigation technology, agriculture and management
measures. The objective is to reduce the ET at the county level to target levels and then maximize the
production and value of production per unit of ET. There is a wide range of water productivities
(Yield/ET) for each crop type depending on irrigation, agriculture and management practices. The Project
will assist the counties in evaluating the range of water productivity's in the county for each crop type and
to develop a plan that will assist the farmers in moving from lower to higher water productivity practices,
always keeping the target ET for the county as the goal. Remote sensing combined with land use
information and crop yields can be used to carry out this analysis for each parcel down to sizes of 30 by 30
m. The Project will provide strong technical support to the counties form the Hai Basin Commission and
the Project KM Group to learn and implement this innovative practical approach.
River reach files and coding systems will be developed in a platform where both MWR and SEPA and the
lower level water resources and environmental protection bureaus will be able to share data and utilize it in
their water function zones and water environment function zones, respectively. This will greatly improve
the ability of both entities to carry out their water and environment management functions. This will be an
important break through in information sharing.
Comprehensive wastewater management involves the collection, treatment, and safe disposal of domestic
and industrial wastewater. Coastal cities in Tianjin are under intense pressure to adhere to national policy
and construct wastewater treatment plants, but they are facing a number of constraints. First, the combined
drainage and wastewater networks are underdeveloped, and much of the wastewater is not collected.
Second, many industries do not have pre-treatment and directly discharge toxic and hazardous wastewater,
which degrades the collection network and disrupts treatment plants. Finally, most small cities do not have
access to capital to investment in treatment plants and must enter into build-own-operate (BOT) contracts
with companies, resulting in dramatic tariff increases. The Project will address all three issues by funding
institutional and financial studies, technical assistance, and piloting a financing mechanism that provides
incentives for small cities to develop comprehensive wastewater management programs.
The Dagu canal system in Tianjin s filled with approximately 2.2 million cubic meters of sediment, most of
it contaminated according to Chinese environmental standards. Dredging, dewatering, treatment, and safe
disposal of the contaminated sediment is a complex and highly technical task. The Dagu canal cleanup is
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one of the largest and most ambitious sediment remediation project undertaken in China, and the
experiences gained under the Project will be useful for addressing the hundreds of similar canals throughout
the country. The Project will finance international technical assistance to help local engineers address
complex technical and environmental issues.
4. Institutional:
During Project preparation and implementation, development and strengthening of institutional mechanisms
for coordination and integration of activities, carried out by different bureaus (water, environmental
protection, agriculture, construction, etc.) at the municipal and county levels, and by different ministries
and provinces at the Hai Basin level, would be a key element. At the municipal and county levels
establishing coordinating mechanisms is considered to be feasible with the strong support from the
governments. At the Central level the Project Coordination Committee chaired by MOF will play an
important role in the coordination and integration of activities both at the central and Hai Basin levels.
Establishment of a high-level Hai Basin Committee with representation from the various ministries and
provinces/municipalities would require high-level government commitment, and may not be feasible during
the Project implementation period. Project management mechanisms including the Coordination Committee
and the Steering committees established in MWR and SEPA should provide adequate institutional
management support during Project implementation. One of the Strategic Studies will address institutional
mechanisms at the Hai Basin level and make recommendations adopting new mechanisms that will ensure
the adequate participation of the different ministries and provinces. The existing river basin commissions
are essentially departments of the Ministry of Water Resources and lack the authority to coordinate and
integrate water and environment management activities in the basins, and for this reason new institutional
mechanisms are needed.
4.1 Executing agencies:
The executing agencies will be MWR and SEPA at the central level, and Beijing and Tianjin Municipalities
and Hebei Province at the provincial level.
4.2 Project management:
A Project Coordinating Committee led by MOF and with participation from MWR, SEPA, Beijing, Hebei
and Tianjin will be responsible for coordinating the smooth implementation of the Project. High-level
Steering Committees headed by Vice Ministers and Project Management Offices in MWR and SEPA will
be responsible for implementing their parts of the Project in coordination with each other, and with the
Project provinces/municipalities, counties and sub-basin. Leading groups and Project Management Offices
will be responsible for their parts of the Project in Tianjin, Beijing, Hebei, Hai Basin Commission,
ZhangWeiNan and in each of the Beijing and Hebei pilot counties, all in coordination with each other, and
with the central level PMOs. All of these entities have already been formally or informally established and
where informal, will be formalized before grant agreement negotiations. All PMOs would have Joint
Expert Groups to assist the PMOs in coordination, review, supervision and in some cases execution of
technical activities under the Project. The Central PMOs would be supported by an international expert
panel with broad experience in water quality and quantity management, water and environment planning
and knowledge management. These project management arrangements are considered to be adequate.
4.3 Procurement issues:
Procurement under the Project is expected to be straightforward, as most of the procurement activities will
involve hiring consultants; arrangements for training, seminars and study tours; and purchase of computer,
office, and monitoring equipment. There will also be some small works that are yet to be defined. They
will be defined during their first and second year of the Project when the demonstration projects and
IWEMPs will be planned. These works would be in activities such as installation of measuring devices
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and monitoring stations, onfarm irrigation system improvements, land leveling, changes in
agriculture practices, groundwater recharge, wells, wastewater collection and treatment, and
environmental restoration. Civil works procurement activities relative to the Tianjin Coastal Wastewater
Management component will be carried out under TUDEP2. A procurement capacity assessment and
action plan and a first year procurement plan have been prepared. The Procurement capacity assessment
concludes that there is significant capacity available in the PMOs because of work on other Bank projects
including particularly the WCP and TUDEP2. Some procurement training will be required. The MIS
developed and functioning under the WCP will be adapted and utilized for the present Project.
4.4 Financial management issues:
Financial Management under the Project is expected to be straightforward. A Financial Management
Assessment Report has been prepared. The Financial Management Assessment Report concludes that there
is significant capacity available in the PMOs because of work on other Bank projects including particularly
the WCP and TUDEP2. Some financial management training will be required. The MIS developed and
functioning under the WCP will be adapted and utilized for the present Project.
5. Environmental:
Environmental Category: C (Not Required)
5.1 Summarize the steps undertaken for environmental assessment and EMP preparation (including
consultation and disclosure) and the significant issues and their treatment emerging from this analysis.
Specific actions to be included in the demonstration projects and IWEMPs will be defined during the first
and second year of Project implementation. It is not possible at this time to specifically determine these
actions will be, but their overall purpose will be to improve water and environment management in the
counties where they will be implemented. The TORs for the IWEMPs and the demonstration projects will
require that alternatives are evaluated in terms of economic, environmental and social considerations with
extensive stakeholder participation. These activities will include some small civil works for actions such
as installation of measuring devices and monitoring stations, onfarm irrigation system
improvements, land leveling, changes in agriculture practices, groundwater recharge, wells,
wastewater collection and treatment, and environmental restoration. These actions will be very small
with probable negible environmental impact, normally costing less than $50,000 per action. An
Environmental Assessment (EA) has been prepared which includes an Environment Management Plan
(EMP) that addresses steps that will be taken to ensure adequate environmental protection and mitigation
measures are taken during the design and implementation of these works. The EA also includes a
resettlement policy framework to address possible resettlement and land acquisition issues, although it is
considered unlikely to occur. IWEM and demonstration projects will include involvement by existing
political/administrative entities (townships, counties, prefectures, municipalities, provinces, ministries)
including their respective technical/administrative bureaus (water, environmental protection, agriculture,
construction, etc.), the entities with direct line responsibility for management. Participation of water users
and polluters in water resources management is also important. Information management and sharing are
needed aspects of water and environment management. During the initial phase of Project implementation,
IWEMPs for about 10 counties, the Tianjin Municipality, and a key subbasin (ZhangWeiNan) will be
prepared and demonstration projects will be designed in detail. These activities will include consultation
with these stakeholders through surveys and working sessions to ensure their adequate involvement and
input. The TORs for these IWEMPs and demonstration projects that are being prepared during Project
preparation include requirements for consultation and participation. Implementation of the IWEMPs and
demonstration projects will also require significant participation, which will be defined in the IWEMPs and
design of the demonstration projects. The IWEMPs will be designed to take into account all the different
water uses and the entire range of threats to water quality including point and diffuse pollution sources. No
disbursements will be made under the Tianjin Coastal Wastewater Management - Small Cities Financial
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Incentives Program until an Operational Manual has been prepared that is acceptable to the Bank, which
will include environmental and resettlement criteria.
5.2 What are the main features of the EMP and are they adequate?
A brief EMP was prepared as a part of the EA. It summarizes how the Project will improve integrated
water and environment management in the Hai Basin. The EMP also addresses how small civil works will
be implemented in order to ensure environmental protection and mitigation of possible negative impacts. In
general these impacts are considered to be small or non-existant.
im
Because the Project is in fact a project to improve environmental management in the Hai Basin, the entire
PIP for the Project could be considered to be an overall EMP. The IWEMPs that will be prepared during
the initial phase of Project implementation will be similar to EMPs for water resources management for the
counties, for Tianjin Municipality and for the ZhangWeiNan subbasin. The EMP for the TUDEP2 will
cover activities related to the Tianjin Coastal Wastewater Management component.
5.3 For Category A and B projects, timeline and status of EA:
Date of receipt of final draft: 11/15/2003


5.4 How have stakeholders been consulted at the stage of (a) environmental screening and (b) draft EA
report on the environmental impacts and proposed environment management plan? Describe mechanisms
of consultation that were used and which groups were consulted?

During the preparation of the EA water users and other stakeholders were consulted through a survey
carried out in the pilot and demonstration counties. TORs for the preparation of IWEMPs and
demonstration projects are being prepared during Project preparation. These TORs include requirements
for consultation and participation of water users and other stakeholders to ensure that relevant viewpoints
are taken into account during the preparation of these activities during Project implementation. As a part of
the social assessment process, during Project preparation a detailed consultation process was undertaken in
two of the Project pilot counties that are representative of typical plain area and mountain area counties.
This consultation involved identification of water resources, water environment, agriculture and income
aspects. A specific problems analysis of water and environment conditions was undertaken in these
counties and potential solutions were discussed with stakeholders. This consultation and problems analysis
is illustrative of what will be done in each IWEMP county during the initial stages of IWEMP preparation.
5.5 What mechanisms have been established to monitor and evaluate the impact of the project on the
environment? Do the indicators reflect the objectives and results of the EMP?
The overall objective of the Project is to catalyze an integrated approach to water resource management
and pollution control in the Hai River Basin. The extent to which the Project will achieve actual reductions
in pollution and reductions in water consumption are dependent upon the details and time of the IWEMPs
and demonstration projects that will be prepared and designed during the first years of Project
implementation. Each IWEMP and demonstration project will include a monitoring and evaluation
component that will specifically address the implementation and effectiveness of the IWEMPs and
demonstration projects. The monitoring and evaluation plans for these activities will be prepared during
the first phase of Project implementation and will identify monitoring sites, parameters and targets.
IWEMPs and demonstration projects will include baseline surveys/inventories of surface and groundwater
quantity and quality conditions, uses and trends and establish specific objectives, timelines and indicators
for IWEMP and demonstration project implementation both during the life of the Hai Basin Project and
beyond. The PIP for the Project will includes a monitoring and evaluation plan which will monitor overall
Project implementation in accordance with the PIP.
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6. Social:
6.1 Summarize key social issues relevant to the project objectives, and specify the project's social
development outcomes.
As mentioned earlier, water and environmental management requires the involvement of existing
political/administrative entities and their respective technical/administrative bureaus, since these are the
entities with direct line responsibility for management. Participation of water users and polluters in water
resources management is also important. Information management and sharing are also needed aspects of
water and environment management. During the initial phase of Project implementation IWEMPs for 10
counties (in Hebei and Beijing), the Tianjin Municipality and a key subbasin (ZhangWeiNan) and
demonstration projects in Hebei, Beijing and ZhangWeiNan will be prepared. This will include
consultation with water users, polluters and other stakeholders. These activities will take place through
surveys and working sessions to ensure their adequate involvement and input. Implementation of the
IWEMPs and demonstration projects will also require significant participation, which will be defined in the
IWEMPs and demonstration projects designs.
The preparation of a Social Assessment (SA) is assisting the proposed Project to set up its social
development and poverty alleviation objectives and incorporate them into the Project strategic objectives as
a whole, that is, equitable allocation of water to industrial and agricultural uses in the urban and rural
areas, and satisfaction of the needs for water quantity and quality by groups of people in various social
strata with different economic incomes; as well as sustainable development of integrated water management
systems in terms of legal, institutional, and local capacity building. Through the SA exercise, the Project is
able to directly address the stakeholders and their needs and roles in Project activities, especially the
primary stakeholder, local farmers, in their varied productive situations; and to grasp the complex social
diversities and different gender roles in the Project context.
Participation of the Project beneficiaries and participatory capacity building of poor people would be
important aspects in the Hai Basin Project. With detailed case studies and surveys in the typical project
areas, studies as a part of the social assessment have helped to understand how the socio-economic,
political, and institutional contexts influence the Project outcomes, and to detecting potential social risks or
adverse impact the Project may bring about to local society.
6.2 Participatory Approach: How are key stakeholders participating in the project?
Preparation of IWEMPs, demonstration projects, KM systems and strategic studies will include
consultation of stakeholders to ensure that relevant viewpoints are taken into consideration.
The IWEMPs and demonstration projects will include a significant amount of capacity building for
farmers. The ET management, "real" water savings and groundwater management aspects will include
comparisons of irrigation/agriculture/onfarm management practices by different farmers, and those with
better practices will be held up as examples to those with poor practices. There will also be a considerable
amount of awareness raising of farmers and other water users in regard to the sharing of limited water
resources and the need to use them in a sustainable manner in terms of both quantity and quality.
6.3 How does the project involve consultations or collaboration with NGOs or other civil society
organizations?
Farmers associations and cooperatives, as well as business and social groups will be consulted as a part of
IWEMP preparation during the first phase of Project implementation. Mechanisms for their participation
during IWEMP implementation will be defined in the IWEMPs. To the extent possible farmer Water User
Associations (WUAs) will be established to facilitate preparation and implementation of the irrigated
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agriculture aspects of IWEMPs.
6.4 What institutional arrangements have been provided to ensure the project achieves its social
development outcomes?
The institutional mechanisms that will be designed and implemented at the county and municipal level will
include mechanisms for ensuring the involvement of water users and other stakeholders in water and
environment management activities. The demonstration project on water rights and well permits will
include a pilot CDD component in order to introduce CDD concepts to ensure maximum ownership by the
water users and the community in addressing and implementing the difficult choices necessary to achieve
sustainable use of water resources. To the extent possible WUAs will be established to enhance farmer
participation.
6.5 How will the project monitor performance in terms of social development outcomes?
The PIP will include a monitoring and evaluation plan which will include mechanisms for monitoring and
measuring the performance of the Project in terms of social development outcomes.
7. Safeguard Policies:
7.1 Are any of the following safeguard policies triggered by the project?
Policy
Triggered
Environmental Assessment (OP 4.01, BP 4.01, GP 4.01)
Yes
No
Natural Habitats (OP 4.04, BP 4.04, GP 4.04)
Yes
No
Forestry (OP 4.36, GP 4.36)
Yes
No
Pest Management (OP 4.09)
Yes
No
Cultural Property (OPN 11.03)
Yes
No
Indigenous Peoples (OD 4.20)
Yes
No
Involuntary Resettlement (OP/BP 4.12)
Yes
No
Safety of Dams (OP 4.37, BP 4.37)
Yes
No
Projects in International Waters (OP 7.50, BP 7.50, GP 7.50)
Yes
No
Projects in Disputed Areas (OP 7.60, BP 7.60, GP 7.60)*
Yes
No
7.2 Describe provisions made by the project to ensure compliance with applicable safeguard policies.
Although the Project has been determined to be a Category C, because the small civil works would have
very limited environmental impacts, an Environmental Assessment that includes an Environmental
Management Plan and a Resettlement Policy Framework has been prepared, in order to ensure that any
such impacts would be avoided, minimized or mitigated. No resettlement and land acquisition is anticipated
under the Project. However, in case such resettlement would occur during Project implementation, the
Resettlement Policy Framework would apply. The Project will provide technical assistance for activities
related to the TUDEP2, such as Dagu Canal rehabilitation and Small Cities wastewater management. All
environmental and resettlement requirements for these works will be covered under the Environmental
Assessment, the Environmental Management Plan, the Resettlement Action Plan, and the Resettlement
Policy Framework of TUDEP2. The Small Cities Financial Incentives Program under Component 3 -
Tianjin Coastal Wastewater Management, will provide post-construction financial support to any eligible
coastal small city in Tianjin that demonstrates reduction of pollution into the Bohai Sea, including those
financed under TUDEP2. The Incentives Program will be carried out in accordance with an Operational
Manual that is acceptable to the Bank and will define procedures and eligibility criteria, including
environmental and resettlement aspects.
While no cultural properties to be affected by Project activities have been identified, an appropriate clause
will be included in all works contracts regarding the procedures to be followed in the event of chance finds
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of culturally significant sites during Project activities.
F. Sustainability and Risks
1. Sustainability:
Counties and municipalities participating in the Project will establish institutional mechanisms to
coordinate across sectors to prepare and implement IWEMPs. Implementation of the IWEMPs will
continue after Project completion and the IWEMPs will include financing plans for their implementation.
Successful preparation and initial implementation of IWEMPs under the Project with sound institutional
mechanisms will be a powerful incentive for sustainability and also for replicability in other counties and
municipalities in the basin and throughout China. Successful implementation of KM systems including data
sharing mechanisms and particularly the coding and river reach file systems under the Project will be
adopted by MWR and SEPA and utilized throughout the basin and elsewhere in China. Having
Government budgeting for Project activities including KM and ET management through counterpart
funding will help to ensure their sustainable funding after Project completion.
Investments in wastewater treatment for secondary towns under the Project will be financed through a
combination of self-financing, IBRD loans, and GEF grants (the terms and conditions of the GEF grant will
be determined). Financial management and operational development plans are a condition for financing and
will be monitored during Project implementation.
The Chinese government has provided assurances about the priority nature of this Project and their
commitment to ensure adequate government support including financial resources for sustainability after
the Project is completed of the successful Project actions.
1a. Replicability:
The Project is designed to be highly replicable. The development of demonstration projects and IWEMPs at
the county level provides an excellent opportunity for replicability because first the water and environment
issues in most of the Hai Basin counties are very similar to the Project pilot counties and second the
governmental set up in all Chinese counties is highly uniform. Successful demonstration projects and
IWEMPs will therefore be very replicable. The Chinese government has provided assurances that they will
take full advantage of successful results of the Project and promote broad replication. The Project will
include a good deal of interaction between the Project pilot counties in the form of study tours and
workshops to the different Project counties so that they can learn from each other. Once successful
experiences have been achieved other counties form the Hai Basin and from elsewhere in China will be
invited to visit and to learn. At the Basin level the experiences learned will be highly replicable to other
China basins (such as the Liao) with similar water scarcity and water pollution issues. In addition the
practical integrated water and environment approaches implemented in the Project address problems of
water scarcity and pollution that are common in many parts of the world. Therefore the potential for
replicability is very large.
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2. Critical Risks (reflecting the failure of critical assumptions found in the fourth column of Annex 1):
Risk
Risk Rating
Risk Mitigation Measure
From Outputs to Objective
Bottom-up water resources management
M
The Chinese Government is committed to
at the county and municipal level will not
strongly support replication of successful
be replicable and won't contribute to
IWEMP.
IWEM at the basin level.
An improved policy environment at the
S
The Project is designed to plan and implement
central level will not contribute to
Project activities at grass roots level in
improved IWEM and planning.
accordance with policies and improved policies.
Improvements in KM and ET
M
The KM and ET management subcomponents
management will not contribute to better
have been designed to provide direct service to
IWEM.
IWEM at the county, municipal and sub-basin
levels.
Wastewater Treatment Plants will not
M
Project will include technical assistance to
operate as planned.
ensure that adequate financial and operational
aspects are addressed during the planning phase.
From Components to Outputs
Counterpart funding will not be adequate
M
Assurance will be sought prior negotiation, so
and not available on time.
that counterpart funding is adequate and
available on time.
County and municipal governments don't
S
Assurance will be sought prior negotiation, so
support IWEMPs and their
that support for the Project and new
implementation, as well as new
coordinating mechanisms, from all levels of
institutional coordinating mechanisms.
local Governments, is obtained.
Hai Basin Commission does not exercise
S
Assurance will be sought prior negotiation, so
strong ownership in KM design and
that the Hai Basin Commission would provide
improvements and does not provide
strong support to Project activities and exercises
necessary support to other components.
strong ownership in KM design.
Political will is inadequate to support
S
Initial steps in the Tianjin small cities and the
program of Integrated Wastewater
Dagu Canal rehabilitation support that are
Management Measures.
undertaken under the TUDEP2 will demonstrate
commitment.
Project management is not adequate and
S
Assurance will be sought prior negotiation, so
there is no cooperation between the
that the cooperation between agencies is
various agencies.
optimal; Project preparation is carried out with
various agencies and joint management,
working, and implementation groups are
established.
Overall Risk Rating
S
Risk Rating - H (High Risk), S (Substantial Risk), M (Modest Risk), N(Negligible or Low Risk)
3. Possible Controversial Aspects:
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G. Main Conditions
1. Effectiveness Condition
(1)
Standard Covenants.
2. Other [classify according to covenant types used in the Legal Agreements.]
Legal Covenants
(1)
Standard Covenants.
(2)
Project Management Organizations. Maintain throughout the period of Project implementation
organizations with composition and staffing acceptable to the Bank, including: (a) Central Level: the
Project Coordinating Committee led by MOF, and the Project Steering Committees and PMOs in MWR
and SEPA; (b) River Basin Level: the PMO in Hai Basin Commission, the Leading Group led by SEPA
and Joint PMO for Zhangweinan sub-basin; (c) Provincial Level: a Coordination Group lead by the
Finance Bureau, Joint PMO of WRB and EPB in Hebei Province and Beijing Municipality respectively; a
Coordination Group lead by the Finance Bureau, PMO in Tianjin Construction Commission and Joint
PMO of WRB and EPB in Tianjin; and (d) County Level: a Coordination Group lead by the Finance
Bureau, the Joint PMO of WRB and EPB in Counties namely Chengan, Guantao, Feixiang, Linzhang and
Shexian respectively in Hebei Province; a Coordination Group lead by the Finance Bureau, Joint PMO of
WRB and EPB in Counties or Districts namely Tongzhou, Daxin, Fangshan, Miyun and Pinggu
respectively in Beijing Municipality; a Coordination Group lead by the Finance Bureau, PMO in Lucheng
County of Shanxi Province, in Xinxiang County of Henan Province; and in Dezhou City of Shandong
Province.
(3)
Cooperation between Water Department and Environment Department. MWR, SEPA,
Beijing and Tianjin municipal governments and Hebei provincial government, under coordination of MOF,
shall ensure, through the institutional cooperative mechanisms established under the Project, the close
cooperation between water department and environment department at central level, river basin level,
provincial level and county level for Project management and implementation, especially during the process
of integrated water and environment management planning and implementation. The mechanisms and
management structure developed and tested under this Project shall be promoted gradually through MWR
and SEPA in the non-Project areas of Hai Basin during Project implementation and after Project
completion.
(4)
Joint Expert Groups. Maintain throughout the period of Project implementation, the Joint Expert
Groups at central, river basin, provincial and county levels for providing technical assistance to the PMOs
at various levels as above-mentioned, with composition and staffing acceptable to the Bank. The Joint
Expert Group at Central Level shall carry out internal supervision mission at field level twice a year and
prepare independent technical report with recommendations to the Bank supervision mission and various
PMOs at all levels.
(5)
Project Workshops. The Central PMO of MWR and of SEPA, under the leadership of Steering
Committees of MWR and of SEPA and coordination of the Project Coordination Committee led by MOF in
cooperation with all the PMOs at various levels, shall take primary responsibility for maximum
incorporation of horizontal and vertical integration into the Project activities by maintaining constant
communications and organizing workshops at least twice a year throughout the period of Project
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implementation. Horizontal integration includes cross-sectoral cooperation and coordination of actions
between water resources and environmental protection ministries/bureaus, as well as others including
agriculture and construction ministries/bureaus. Vertical integration includes direct linking and constant
interaction between the Central and Hai Basin component activities and the Zhangweinan sub-basin,
Tianjin municipality and Beijing/Hebei counties components.
(6)
Sustainability of Remote Sensing-Based ET Technology Application. A RS-ET Specialist
Group, consisting of at least three specialists, shall be established officially within the Information Center
of the Hai Basin Commission to be responsible for application of RS-based ET Management technology in
Hai Basin. The Hai Basin Commission shall approve the necessary staff quota for the three specialists with
qualification and TOR acceptable to the Bank.
(7)
Annual Plans. Annual Project implementation plans shall be prepared and approved by the Bank
prior to January first of each year during Project implementation. The plan shall be prepared by the PMOs
of Hai Basin Commission, Zhangweinan Sub-basin, Hebei, Beijing and Tianjin respectively and
consolidated by MWR and SEPA PMOs at Central level. In addition to the annual plans prepared for the
entire Project, specific annual plans should be prepared in detail for the demonstration projects that would
be reviewed and approved by the Bank prior to January first of each year.
(8)
Management Information System. Maintain throughout the period of Project implementation the
MIS installed and operated within all the PMOs to facilitate Project management and implementation, and
monitoring and evaluation.
(9)
Project Progress Report. The semi-annual Project progress report shall be prepared attached with
the MIS tables by the PMOs of Hai Basin Commission, Zhangweinan Sub-basin, Hebei, Beijing and
Tianjin respectively and consolidated by MWR and SEPA PMOs at Central level, and submitted to the
Bank supervision mission for review.
(10)
Training and Study Tours. Domestic and overseas training and study tours shall be carried out
under their respective part of the Project in accordance with the Chapter of PIP for training and study
tours. The plans for each overseas study tour shall be submitted to the Bank for its review and approval.
(11)
Monitoring and Evaluation. Monitor and evaluate Project implementation on an ongoing basis
facilitated by MIS, in accordance with key indicators in Annex 1 and in Chapter 5 and Annex 8 of PIP. The
M&E report shall be prepared annually by the PMOs of Hai Basin Commission, Zhangweinan Sub-basin,
Hebei, Beijing and Tianjin respectively and consolidated by MWR and SEPA PMOs at Central level. In
addition, a thematic M&E report shall be prepared in detail for each of the demonstration projects. The
annual M&E reports and thematic M&E reports, which incorporate the collected data and criteria, and
analyzed and evaluated results of Project implementation, shall be completed by June 30 of the next year
and submitted to the Bank for review.
(12)
Water User Association Development. During the period of Project implementation, WUAs shall
be planned and established gradually to cover all the irrigated agricultural areas of all the Project counties
or districts in Beijing and Tianjin municipalities and Hebei province in order for the WUAs to participate in
the whole planning and implementing process of the integrated water and environment management. Before
effectiveness of the Project, at least one WUA shall be officially established in each of the townships in all
the Project counties or districts in Beijing and Tianjin municipalities and Hebei province.
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(13)
Community Driven Development. Guantao and Chengan county governments of Hebei province
shall strongly support the bottom-up approach to the demonstration programs for groundwater and
water-right management by providing counterpart funding and making institutional arrangements for
community driven development in the demonstration pilot sites of the two counties. Beijing municipal and
Hebei provincial governments, learning from the demonstration program, shall promote CDD approach to
all the other irrigated agricultural areas of all the Project counties or districts in Beijing and Hebei.
(14)
Counterpart Funding. MWR, SEPA, Beijing and Tianjin municipal Governments and Hebei
provincial government shall ensure availability of the counterpart funding in a timely manner during Project
implementation as planned in the Project costab attached to PIP during the Project implementing period.
(15)
EMMP. MWR, SEPA, Beijing and Tianjin municipalities and Hebei province shall: (a) ensure
that all activities under its respective part of the Project shall conform to environmental standards and
guidelines satisfactory to the Bank, including the environmental regulations and guidelines issued by the
SEPA of PRC and said Project province or municipality's Environmental Protection Bureau; and (b) to
that end, implement the part of the Environmental Mitigation and Monitoring Plan applicable to its
respective part of the Project, in a manner satisfactory to the Bank;
(16)
Replicability of Project Approaches. MWR, SEPA, Beijing and Tianjin municipal governments
and Hebei provincial government shall replicate the following approaches and concepts developed and
implemented under the Project into other areas of Hai Basin during Project implementation and after
Project completion: (a) integrated bottom-up and top-down approach for water and environment
management planning supported by KM; (b) concept of ET management for sustainable planning and use
of water resources; (c) concept of real water savings (reduction of ET) for irrigated agricultural water
savings in resources water shortage areas; (d) application of RS-based ET technology in River Basin
Planning and Management; (e) application of RS-based ET Technology in Irrigated Agricultural Water
Savings; (f) integrated planning for both water quality and quantity control; (g) approaches for non-point
source pollution control; (h) ET based groundwater management with linkage between withdraw permits
and groundwater availability; (i) Monitoring and Evaluation of activities; and (j) application of MIS in
Project management and implementation.
(17)
Stakeholder Involvement. MWR, SEPA, Beijing and Tianjin municipal governments and Hebei
provincial government shall organize and mobilize the stakeholder involvement in the whole process of the
integrated bottom-up and top-down water and environment management planning and implementation
through various workshops, training, public consultation, WUAs and CDD approaches during Project
implementation.
(18)
Cooperation with other Programs. MOF, SEPA and MWR shall strengthen cooperation between
this Project and PEMSEA Bohai Sea Management Project administered by State Oceanic Administration,
Yellow Sea Large Marine Ecosystem by UNDP, and have meetings and exchanging results and views with
the PMO for PEMSEA Bohai Sea Management Project and Yellow Sea Large Marine Ecosystem Project
as well as with ongoing SEPA and MWR related programs such as the Bohai Blue Sea Action Plan, the
Water Pollution Prevention Program for the Hai River Basin and the South North Transfer Programs.
H. Readiness for Implementation
1. a) The engineering design documents for the first year's activities are complete and ready for the start
of project implementation.
1. b) Not applicable.
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2. The procurement documents for the first year's activities are complete and ready for the start of
project implementation.
3. The Project Implementation Plan has been appraised and found to be realistic and of satisfactory
quality.
4. The following items are lacking and are discussed under loan conditions (Section G):
I. Compliance with Bank Policies
1. This project complies with all applicable Bank policies.
2. The following exceptions to Bank policies are recommended for approval. The project complies with
all other applicable Bank policies.
Douglas C. Olson
Mark D. Wilson
Yukon Huang
Team Leader
Sector Manager/Director
Country Manager/Director
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Annex 1: Project Design Summary
CHINA: Hai Basin Integrated Water and Environment Management Project
\
Key Performance
Data Collection Strategy
Hierarchy of Objectives
Indicators
Critical Assumptions
Sector-related CAS Goal:
Sector Indicators:
Sector/ country reports:
(from Goal to Bank Mission)
Sustainable development and
Sustainable management will
management of water and
reduce poverty
other natural resources
GEF Operational Program:
Outcome / Impact
Indicators:
Improve integrated water and l Decrease water pollution in l Annual monitoring and
Improvements in water and
environmental management
pilot counties
evaluation reports
environmental planning and
in terms of water quantity and l Reduce Groundwater
management will result in
water quality in the Hai Basin
overdraft in pilot counties
sustainable management of
and reduce land-based sources l Reduced pollution loading
water resources
of pollution to the coastal and
to the Bohai Sea from
marine environment of the
coastal counties
Bohai Sea
Global Objective:
Outcome / Impact
Project reports:
(from Objective to Goal)
Indicators:
l Improved cooperation and
Catalyze a more integrated
integration of WRM and
l Annual monitoring and
Improvements in water and
approach to water resources
pollution control activities
evaluation reports
environmental planning and
management and pollution
at the county level with
management will result in
control in the Hai Basin in
support from upper levels
sustainable management of
order to improve the Bohai
(prefectures, provinces,
water resources
Sea environment
HRBC, ZhangWeiNan,
MWR and SEPA)
l Adoption of improved
WRM and pollution control
approaches at the county
level with support from
upper levels (prefectures,
provinces, HRBC,
ZhangWeiNan, MWR and
SEPA) including ET
management, river reach
data sharing, KM
applications, water rights
and discharge control
administrative systems, real
water savings, pollution
reduction
l Improved small city
wastewater management
and discharge canal cleanup
activities
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Key Performance
Data Collection Strategy
Hierarchy of Objectives
Indicators
Critical Assumptions
Output from each
Output Indicators:
Project reports:
(from Outputs to Objective)
Component:
1. Integrated Water and
Environment Management
(IWEM)
l IWEMPs for 10 counties l Prepared and initial
l Semi-annual reports on
l Bottom-up water resources
and the Tianjin
implementation has started
physical and financial
management at the county,
Municipality
progress
subbasin and municipal
l Improved institutional
l Established and functional
l Annual monitoring and
level will be replicable and
coordinating mechanisms
evaluation reports
contribute to IWEM at the
for IWEM created
l Bank/GEF supervision
basin level
l Strategic studies
l Prepared and findings
mission reports
l An improved policy
conducted:
integrated into IWEMPs
environment at the central
1. Policy and legal
level will contribute to
framework and
improved IWEM and
institutional
planning
arrangements;
2. Bohai Sea Linkage;
3. Countermeasures for
the Protection and
Measurement of the
Water Ecological System
4. Water Savings
5. Water Rights and Well
Permits, and Sustainable
Groundwater
exploitation;
6. Wastewater Reuse
7. Water Pollution and
planning.
l Prepared, distributed and
l SAP for Hai Basin and
initial implementation has
for ZhangWeiNan
started
subbasin
l Prepared and findings
integrated into IWEMPs
l Demonstration Projects
carried out:
1. Real Water Savings
2. Management of Water
Rights and Well Permits
3. Control of Wastewater
Discharge
4. Pollution Control and
Water Environmental
l Defined and implemented
Improvements
l Policies, mechanisms and
instruments
2. Knowledge Management
l Development Integrated l Created and implemented
l Semi-annual reports on
l Improvements in KM and
Water Resource ­ Water
physical and financial
ET management will
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Quality Information
progress
contribute to improved
Management System
l Annual monitoring and
IWEM
l Development Application l Established and functional
evaluation reports
Systems for the former
l Bank/GEF supervision
l Develop a functional ET l Established, tested and
mission reports
Management System
functional
l Create Mechanisms for
l Working Groups in existing
the Continuation of
agencies have been trained
Systems after the Projects
and use technology
finalization
3. Tianjin Coastal Wastewater
Management
l Provide TA for the
l Provided and carried out
l Semi-annual reports on
l Wastewater Treatment
Renovation and
physical and financial
Plants will operate as
Remediation of the Dagu
progress
planned
Canal
l Annual monitoring and
l Dagu Catchment
l Carried out and integrated
evaluation reports
Industrial Pollution
into IWEMP
l Bank/GEF supervision
Control
mission reports
l Binhai Wastewater
l Carried out and integrated
Management Study
into IWEMP
l Small Cities Financial
l Incentive mechanism tested
Incentives
4. Project Management and
Training
l Joint Expert Groups
l Set up and functional
l Semi-annual reports on
l An improved policy
l Conduct Training,
l Carried out
physical and financial
environment at the central
Workshops and Study
progress
level will contribute to
Tours
l Annual monitoring and
improved IWEM
l Monitoring and
l Adequate System in Place
evaluation reports
l Project management setup
Evaluation, specifically of
l Bank/GEF supervision
can guide water and
IWEMPs and
mission reports
environmental planning and
Demonstration Projects
management in the Basin
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Key Performance
Data Collection Strategy
Hierarchy of Objectives
Indicators
Critical Assumptions
Project Components /
Inputs: (budget for each
Project reports:
(from Components to
Sub-components:
component)
Outputs)
1. Integrated Water and
l Support formulation of
l Semi-annual reports on
l Counterpart funding will be
Environment Management
County Integrated Water
physical and financial
adequate and on time
(IWEM)
and Environmental Plans
progress
l County and municipal
(IWEMPs)
l Annual monitoring and
governments strongly
l Support preparation of
evaluation reports
support IWEMPs and their
pre-investment studies and
implementation as well as
implementation of some
new institutional
planned actions
coordinating mechanisms
l Support establishment of
institutional coordinating
mechanisms for IWEM
l Support formulation of SAP
for ZhangWeiNan subbasin
l Support formulation of SAP
for Tianjin Municipality
(Total budget: US$14.3
million)

2. Knowledge Management
l Support strategic planning l Semi-annual reports on
l Hai Basin Commission will
and technical investigations
physical and financial
exercise strong ownership in
at the basin level through
progress
knowledge management
improved data collections, l Annual monitoring and
design and improvements
GIS, river reach data
evaluation reports
and provide necessary
systems, river basin models,
support to other components
ET management and other
KM applications
l Support formulation of
County IWEMPs through
improved data collections,
GIS, river reach data
systems, models, ET
management, and other KM
applications
(Total budget: US$6.51
million)
3. Tianjin Coastal Wastewater l Support establishment of
l Semi-annual reports on
l Political will exists to
Management
institutional coordinating
physical and financial
support program of
mechanisms for IWEM
progress
Integrated Wastewater
(Construction Commission, l Annual monitoring and
Management Measures
Environmental Protection
evaluation reports
Bureau, Water Bureau)
l Support formulation of a
Municipal IWEMP
l Support preparation of
pre-investment studies and
implementation of some
planned actions
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l Support the rehabilitation of
the Dagu Canal
Support small city
wastewater management
(Total budget: US$103
million)
4. Project Management and
l Support the development of l Semi-annual reports on
l Project management at all
Training
policy, legal and
physical and financial
levels will be adequate and
administrative mechanisms
progress
involve good cooperation
and instruments for
l Annual monitoring and
between the various
improving IWEM
evaluation reports
agencies
l Support Project
Management, Monitoring
and Evaluation
l Provide Training
(Total budget: US$6.18
million)
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Annex 2: Detailed Project Description
CHINA: Hai Basin Integrated Water and Environment Management Project
The Project has the goal of achieving real improvements and important progress in Integrated Water and
Environment Management (IWEM) in the Hai Basin, and achieving real reductions in pollution to the Bo
Hai Sea. In addition the Project has the objective of contributing to the reversal of existing trends in
deteriorating water quality and worsening overexploitation of surface and groundwater resources. The
Project would be implemented in two phases. The two phased approach will permit (i) a process of good
planning, followed by (ii) specific actions to affect real change (see Annex 4). Parallel demonstration
projects will test and demonstrate high priority actions that are clearly needed throughout the basin. The
key aspect of the GEF Hai Basin Project is that it will have maximum incorporation of horizontal and
vertical integration. Horizontal integration includes cross-sectoral cooperation and coordination of actions
between water resources and environmental protection ministries/bureaus, as well as others including
agriculture and construction ministries/bureaus. Vertical integration includes direct linking and constant
interaction between the Central and Hai Basin component activities and the ZhangWeiNan subbasin,
Tainjin municipality, and Beijing/Hebei counties components.
The Project (estimated total cost: US$ 31,741,800) would be divided into 4 interrelated components: (a)
Integrated Water and Environment Management; (b) Knowledge Management; (c) Tianjin Coastal
Wastewater Management; and (d) Project Management, Monitoring and Evaluation, and Training. Main
products would include: (i) Seven strategic study reports (two reports at national level, five reports at Hai
Basin level); (ii) Integrated Water and Environment Management Plans (IWEMP) for five key counties in
Beijing, five key counties in Hebei Province, and Tianjin Municipality; (iii) Strategic Action Plans (SAP)
on IWEM for the Hai Basin and the ZhangWeiNan sub-Basin; (iv) Four demonstration projects; (v) A
Knowledge Management (KM) system based on sharing between water conservancy institutions and
environmental protection institutions and a Evapotranspiration (ET) management system based on satellite
Remote Sensing technologies; and (vi) The promotion and technical support of wastewater treatment in
small cities/towns in the coastal areas of Tianjin municipality, and technical support for the clean up of the
Dagu Wastewater Canal in cooperation with the Tianjin Urban Environment Development Project
(TUDEP2) Project.
By Component:
Project Component 1: Integrated Water and Environment Management - US$14.30 million
The IWEM is divided into 3 subcomponents: (a) Strategic Studies (SS) at the central and Hai Basin levels;
(b) Integrated Water and Environment Management (IWEM); and (c) Demonstration Projects. As can be
seen in Figure 1, all three of these subcomponents are very closely interrelated. The SS will support and
provide guidance to IWEM planning and to the demonstration projects. The demonstration projects will
provide important practical input into the IWEM planning. There will be constant interaction between these
subcomponents to ensure integration. There will also be an important link, with continuous feedback and
information updating, to the Knowledge Management (KM) component of the Project.
Subcomponent 1A - Strategic Studies (SS)
Policy and Legal Framework and Institutional Arrangement (SS 1): The evolution of the legal and policy
environment in China has been very rapid, however it still tends to reflect a command and control,
top-down approach to social, economic, and environmental development. In the water sector, this has
created severe institutional problems due to ambiguities in the law, and lack of effective coordination
mechanisms. For water resource management and water pollution control, the legal, policy and institutional
framework has created particularly serious coordination problems with the result that there is duplication
- 37 -

---

and competition between the Ministry of Water Resources (MWR) and the State Environmental Protection
Administration (SEPA) in many areas of water management. These problems are reflected down to the
local level. In particular, the fact that river basin organizations are part of MWR, and that SEPA has no
presence at the basin level, makes IWEM especially difficult. The SS will examine the legal, policy and
institutional framework within the context of the Hai River basin with the purpose of identifying barriers
that can be overcome by practical measures that will achieve a level of coordination between the two
ministries to allow and support IWEM both at the basin and local levels. The study will further elaborate
upon how institutions must respond and possibly modify themselves through stronger cooperation ­ and in
certain cases integration ­ in order to meet the challenges driven forward by technical, economic, and
financial innovations in the field of both water resource management and water pollution control. There is a
desire on the part of MWR and SEPA to achieve the practical benefits of improved institutional
coordination, but without sacrificing the authorities provided to each ministry in the Water Law and the
Water Pollution Prevention and Control Law, and their respective Implementing Rules. This study will
provide the context within law and policy for practical approaches to operational coordination between the
two ministries, and the GEF Project as a whole will catalyze the entire integration process.
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GEF IWEM Project


KEY ISSUES

IWEM PLANNING



TOOLS (KM / ET)

DEMONSTRATIONS









IWEM IMPLEMENTATION

STRATEGIC STUDIES

Key Issues in Achieving

IWEM
IWEM PLANS

in the Hai River Basin
· Hai River Basin


· Tianjin

1.
Laws, policies, institutions
· Zhangweinan Sub-


basin

Environmental Needs
· Beijing Key Counties

2.
Bohai Sea ­ Hai Basin
· Hebei Key Counties

interactions


3.
Basin Ecological Needs
Strategic Action Plans



Efficient Water Utilization

4.
Water Savings and
KM & ET TOOLS

Efficient Water Use

5.
Water Rights, Well Permits,

and Sustainable
DEMONSTRATION

Groundwater Exploitation
PROJECTS

6.
Wastewater Reuse
Focusing on key


implementation issues on all

Pollution Control
strategic aspects for

7.
Water Pollution Planning
effective IWEM.

· Ecological restoration

· Real water savings

·

Water rights, well

permits

· Pollution control
Figure 1: Project Integrated Water and Environment Management (IWEM) Logic and Linkages
- 39 -

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Bohai Sea Linkage (SS 2): The main objective is to provide the linkage between environmental condition of
the Bohai Sea and of Bohai Bay which receives the runoff from the Hai River basin. The main issues to be
researched are: (i) to identify and assess regulations and laws on environmental quality of the Bohai Sea
that have implications for land-based actions that may be included in the Hai River basin SAP; (ii) to
assess pollutant load reductions and water volume increases from the Hai River basin that will have
meaningful consequences for the Bohai Sea and Bohai Bay; (iii) to recommend spatial and temporal
pollutant control actions that will maximize beneficial effects on the Bohai Sea; and (iv) to provide
guidance to the development of the Hai River SAP that will reflect the actions that will be required to
maximize ecological benefits in the receiving marine environment. The SS would also create the linkages
with other institutions and programs in the Bohai Sea such as the Bohai Sea Environmental Management
Project that is sponsored under the PEMSEA program of the GEF, and the United Nations Programme of
Action for Protection of the Marine Environment from Land-Based Activities. The objective is to maximize
the benefit of these studies for the purpose of the SAP, and to provide input into ongoing research and
management programs focusing on the marine environment.
Countermeasures for the Protection and Measurement of the Water Ecological System (SS 3): The
natural aquatic environment, including wetlands, has been all but destroyed in the Hai River due to the high
levels of pollution and reduction of flow volumes in all rivers that has dried out most wetlands. An integral
part of the IWEMP process is to factor into the planning process the minimum flows, the scheduling of
these flow, and water quality requirements that are needed to maintain the environmental functions of
important wetlands. The study will capture the existing information base for important wetlands and river
courses in the basin and, including coastal wetlands as a basis for making decisions on priorities for the
balance of the study. In addition to technical and financial considerations, socio-economic implications will
also be assessed. Important outputs will be to: (i) assess the nature of ecological functions in order to
develop priorities for follow-up actions, (ii) examine the technical options and feasibility for ecological
maintenance and their costs, and (iii) determine minimum flows and their scheduling to maintain ecological
functions. A conservation plan will be proposed for inclusion in the Hai Basin IWEMP and implementation
plans will be developed for several key areas. The study of coastal wetlands will be a key linkage to the
Bohai Sea insofar as water volume enhancement targets have not been established for the Bohai Sea under
any of the national or international Bohai Sea programs. Therefore, as a first approximation, flow required
to maintain coastal wetlands will provide guidance to drafters of the basin IWEMP on flow adjustment
requirements that will also have beneficial effects on Bohai Bay.
Water Savings and High Efficiency Water Utilization in the Hai Basin (SS 4): The aim is to change the
water balance in the Hai Basin into a water balance that supports a sustainable river-aquifer system.
Present amounts of ET in the basin far exceed this sustainable balance resulting in groundwater overdraft
and inadequate environmental flows. Thus the overall goal is to reduce ET to levels that will achieve a
sustainable water balance. With the objective of achieving this water balance an target ET annual quota
amount will be assigned to each county in the basin. This SS will help the counties in achieving their ET
reductions. The likely attainable ET reductions for each land use class will be assessed. Some limited field
experiments will be carried out, to verify the expected results, before they will be applied in the
Demonstration Projects and IWEMPs. The Project will also inventory Chinese and international success
stories in reducing ET. Groundwater table declinations will also be investigated. Groundwater and ET are
coupled through percolation processes and groundwater extractions. Analytical relationships between
rainfall, groundwater irrigation, and ET will be worked out to better understand at which threshold levels of
irrigation, ET will actually start to diminish. At the same time, the impact on crop yield will be paid
attention to, because the Project aims to enhance rather to negatively impact farmers incomes.
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Administration of Water Rights and Well Permits, and Sustainable Groundwater Exploitation in the Hai
Basin (SS 5): This study will analyze the reasons why existing water rights and well permit systems have
not been effective in controlling the use of water to sustainable levels and how this has resulted in
groundwater overdraft. The study will evaluate laws, regulations and processes and make
recommendations on how the can be directly linked to the control and management of water resource use to
sustainable levels. This will include a detailed anlaysis of measuring and monitoring requirements. The
study will also analyze how to improve the knowledge base of the groundwater system of the Hai Basin.
Relevant data is scattered among various institutes. The aim is therefore to describe the groundwater
behavior of the entire Hai Basin using as much as possible field and satellite data that becomes available
during the execution of the Project. A good understanding of the exchange processes between the saturated
and unsaturated zone is of importance to make groundwater use quantitative. Currently, the extractions are
only marginally known, because there is no control on the volume individual farmers pump out from the
aquifers. The Project intends to compute the Net Groundwater Use from a novel combination of
precipitation and ET data. Net Groundwater Use is basically the sink from the groundwater system, which
together with the fluctuations of the hydraulic head will yield to first order assessments of lateral
groundwater movements across the basin (i.e. simple GIS based groundwater model).
The Hai Basin Wastewater Reuse (SS 6): The main objectives are to provide recommendations on
wastewater treatment (in order to increase suitability for various uses) and prepare strategic level
wastewater reuse plans in 8 cities (Beijing, Tianjin, Shijiazhuang, Baoding, Tangshang, Datong, Xinxiang
and Dezhou city). Specific attention will be paid to: (i) investigate current water pollution sources; (ii)
demand and supply aspects of renovated water; (iii) analysis of plans for sewerage treatment; (iv) sewerage
water renovation and use; and (v) analysis of the benefits of sewerage renovation and utilization including
mechanisms for encouraging wastewater reuse. In addition the Project would promote wastewater
utilization technologies and experiences across the Hai Basin beyond the 8 specified cities.
Water Pollution Planning and Management (SS 7): One of the significant failures of the 8th and 9th Five
Year Plans has been the inability to reduce pollution levels in most rivers in China, particularly ambient
water quality. During this 10 year period in the Hai River basin, the water quality has been declining to the
point where most of the surface water is now Class V+ (worst water quality without any functional use).
This failure is due to a variety of reasons, including the planning framework, lack of investment, inadequate
management tools, and by the poor coordination between MWR and SEPA in both planning and
operations. The recent announcement of the intention to implement the Eastern Route of the South to North
Water transfer scheme, which will flow through the lower and most polluted part of the Hai River basin,
has direct implications for both ministries because failure will compromise this enormous investment. This
study will examine the reasons for past failures and, using this as a basis for taking corrective actions, to
develop a detailed, realistic, and implementable plan for basin-wide pollution control. In addition to
institutional coordination issues, the study will develop pollution load reduction targets through a total load
control process that has not yet been widely adopted in China. The study will evaluate the types of
management tools that are required to more effectively manage the day-to-day operations of pollution
control such as discharge permitting and tracking systems. A review and evaluation of wider application of
policy instruments for water pollution control will made, including economic instruments such as permit
trading. Problems of enforcement of discharge regulations is a major problem in China for political and
economic reasons, and will be examined to determine what measures can be implemented to ensure
compliance of industry to their permitted discharge, and to ensure accountability of local EPBs in enforcing
the law. As an integrated part of the pollution control study, reviews and discussions of options will be
made on how pollution control and cleaner production could be further enhanced within the framework of
an industrial adjustment policy for the Hai Basin. The output of these activities will be a basin-wide action
plan for pollution control, with realistic targets, development and application of management tools,
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assessment of economic options and incentives, capacity development, linkages to industrial adjustment
programs, and operational issues involving coordination between the two ministries. More particularly,
plans will be developed for key areas and for protection of the Bohai Sea.
Subcomponent 1B - Integrated Water and Environment Management Planning (IWEMP)
IWEMPs are one of the primary vehicles for achieving real on-ground change in this Project. As such they
are principal clients for the results of the Basin wide SS, KM, remote sensing of ET, and demonstration
sub-projects (see Figure 1). The Plans would address the endemic problems of water use exceeding
sustainable levels of groundwater and surface water supply, as well as improving the water quality
situation where much of the surface water exceeds level 5 (the worst) quality standard. Interactions
between water quality and quantity will also be addressed so that the optimal integrated Plan is produced.
The primary objectives of these Plans is to improve the capacity of management entities to carry out
IWEM and to achieve specific and sustainable improvements in water and environmental outcomes.
IWEMPs would be developed in a two Phase approach during this Project. Phase one, during the first two
years, will involve Plan preparation. The second Phase will involve initial IWEMP implementation during
years 3-5 (Annex 4). IWEMPs would be developed in five counties in both Beijing and five counties in
Hebei Province, and an overall IWEMP is to be developed for the Tianjin Municipality which will include
four, more detailed County/District level Plans. The Tianjin component would also include special studies
dealing with water quantity, water quality, rural and urban non point source pollution, aquatic ecology,
agricultural reuse and groundwater management.
Strategic Action Plans (SAP) will be prepared for the Hai Basin and Zhangweinan sub-basin. The scope of
SAPs is less comprehensive than the IWEMP, and focuses more on specific issues. For example, the
Zhangweinan SAP will focus primarily on water pollution control. The Hai Basin SAP will be formulated
near the end of the Project, consolidate the lessons learned under the Project, and provide guidance for the
next steps in Hai Basin water and environment management. All IWEMPs and SAPs will provide a plan of
action which will guide government investment well beyond the five year term of the Project and into the
next 10-15 years.
The Plans will: (i) identify actions aiming to balance water consumption as measured by ET; (ii) to reduce
water pollution to levels more consistent with the assimilative capacity of river function zones; (iii) to
improve institutional arrangements by integrating management responsibilities horizontally (between
agencies at the same level of government) as well as vertically (between the different levels of government
and stakeholders); and (iv) to establish improved water management arrangements locally, including Water
User Associations water permits, and volumetric based water pricing.
In the second phase of the Project, initial priority actions defined in the first phase would be implemented,
which would include activities such as preparation of feasibility studies and designs, training an capacity
building, and implementation of small civil works in activities which could include installation of
measuring devices and monitoring stations, onfarm irrigation system improvements, land leveling,
changes in agriculture practices, groundwater recharge, wells, wastewater collection and
treatment, and environmental restoration.
The subcomponent would facilitate the establishment of institutional coordinating mechanisms for
IWEM in the Beijing and Hebei pilot counties and in Tianjin. The intention is to help to improve, develop,
and implement a set of policies, and legal, administrative and institutional instruments at the county and
municipal level. The PMOs, joint expert groups and leading groups at the different levels would provide
the foundation for these coordinating mechanisms.
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Subcomponent 1C - Demonstration Projects
The demonstration projects will play a very important role in evaluating and testing practical measures to
implement different aspects of integrated water and environment management at the county level. Because
the demonstration projects will need to have considerable learning by doing, they need to be flexible and
adjustments need to be made as they are implemented. All demonstration projects will have the full
involvement of local officials and experts and will contain outreach components to ensure that lessons
learned are made available to other counties. After in-depth coordination efforts between CPMO and
basin-level provincial (municipal) PMOs, four main topics for demonstration projects, in different areas of
the Bohai Basin, were selected:
l
The "Real"Water Savings demonstration project for irrigating agriculture, will be carried out in Daxing
County, Tongzhou District, and Pinggu District of Beijing. These counties are also included in the
WCP, so there is already considerable knowledge in "real" water savings approaches. This
Demonstration Project will be based on the bottom-up approach, where farmer user groups will be
involved in achieving ET reductions (i.e. "real" water savings). The Project is planned to be action
driven and aims at reducing the comprehensive ET in the counties selected for water savings by 10%
between 2003 to 2008. This approach can only become successful if farmers agree to cooperate.
Farmers have not applied "real" water savings on a large scale (partially because the practical
guidelines are absent), so substantial attention will be given to make the water users aware that water is
a limited resource, and that their help is unavoidable to improve their local water resources
sustainability as well as the basin wide situation. The work will largely rely on the development of
software tools that will help water policy makers at various levels understand what "real" water savings
means and where in the counties the reductions of ET can potentially be achieved. The operational
aspects of reducing irrigation water will be assisted by the application of quotas. Sound and robust
calculation procedures that quantify the allowable groundwater irrigation amounts in relation to ET
quota will be developed and tested. A farmers-training-farmers program will be launched.
l
The demonstration projects of "Effective Management of Water Rights and Well Permits" at county
level, which targets the World Bank Water Saving & Irrigation Project Zones in Cheng-an County and
Guantao County, both in Hebei Province. This Demonstration Project aims at reducing groundwater
use through a legal system of laws, permits, and water rights. It is an effort to boost the concepts of
sustainability and to prevent the groundwater table from falling at a pace of over 1 m/yr in the
Southern part of the Hebei Province. The overall objective is to get pilot areas where it has been
feasible to stop the groundwater table declination. The regulations on water right management is based
upon the general concept of local sustainability, i.e. the groundwater extractions should be in balance
with the replenishment. Such an approach can be worked out exploring the Net Ground Water use data
that will be provided by the Strategic Study on groundwater.
Both Cheng-an and Guantao are typical in that they have serious shortage of surface and groundwater,
while heavily relying on use of both shallow and deep ground water for domestic and irrigation
purposes for more than a dozen years. The Demonstration Project would use a CDD approach, based
on the fact that people depend on groundwater for agricultural and industrial production as well as for
domestic purposes. Water shortage seriously constrains their economic development. To achieve the
overall Project objectives, it is obvious that there won't be a sustainable use of the water resources
unless the users want to do so; and there won't be sustainable socio-economic development unless its
beneficiaries participate in the development process with a sense of ownership. The CDD approach is
adopted for purpose to promote local participation and ownership.
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l
The county-level demonstration projects on "Effective Control of Wastewater Discharge" into the two
major tributaries of the upper ZhangWeiNan Canal; locations are Lucheng City in the upper Zhang
River, Shangxi Province, and the Xinxiang City in the upper Wei River, Henan Province. The
demonstration project will include improvements of capacity of local and basin managers to control
waste discharges and the implementation of control measures such as a total load approach to pollution
management. The range of management tools required will be determined during an initial phase and
implemented thereafter. The demonstration project will also focus on waste discharge control and
protection of water sources in two different locations: one in Xinxiang County, and one in Lucheng
City being two of the most polluted upstream parts of the Sub-basin. Control of upstream pollution
and protection of water sources will be a key element in the demonstration project.
l
The "Pollution Control and Water Environmental Improvements" demonstration project is selected in
parts of the Zhangweixin River in the Dezhou City, Shangdong Province, which is an important part of
the lower ZhagnWeiNan Canal. The Project will be focusing on pollution control for enhancing water
environment and will take place in Dezhou City in the downstream part of the sub-basin. It has, as a
major objective, the restoration of surface water environmental conditions through a program of control
of sources, improved management of groundwater, implementing improved treatment processes,
application of a range of management tools such as integrated management of sluice gates, permitting
systems, etc., while developing a greening landscaping along the Dezhou Section of the South Canal.
The Project will be closely linked to an overall plan for improving the water environment and
ecological restoration along the Wei River and Wei and South Canal from Xinxiang County to Dezhou
City now being shaped by authorities in the Hai Basin.
Project Component 2: Knowledge Management - US$6.51 million
The KM component would have 2 subcomponents: (a) KM Development; and (b) Remote Sensing and
Evapotranspiration (ET) management systems. These subcomponents are interrelated and will be prepared
and implemented in a coordinated manner.
Subcomponent 2A - Knowledge Management (KM)
KM will play a key role and will provide tools, information, technical support, and linkages to IWEM and
planning at all levels (central Hai Basin, ZhangWeiNan Subbasin, Tianjin Municipality, Beijing and Hebei
counties). The four primary goals of this Hai Basin KM component would be to: (1) develop a truly
integrated Basin-level water resources-water quality information management system; (2) develop
integrated application systems at the Basin and local levels; (3) provide direct support for ET-based water
management, and (4) develop an integrated water management system that will continue to be sustained
after this Project is over.
Both HBC/MWR and SEPA have developed significant basic information management systems that will
form the foundation for the integrated water management systems in the Hai Basin. Both organizations
have implemented some vertical integration mechanisms, working at provincial and other levels to collect
and manage water data. A very important development is that both organizations have enthusiastically
embraced the concept of joining together to provide horizontal integration of water quantity and water
quality management. The development of this working relationship between these two organizations is an
extremely important development for the GEF Project. Without this working relationship, the integration of
water resources management and pollution control/water environment management would be almost
impossible to achieve in the Hai Basin. An agreement has been reached to freely share data as well as share
in the development of integrated databases and applications.
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The component design provides for nine major tasks: (i) Project management; (ii) Status Assessment and
Requirements Analysis; (iii) Implementation Plan and System Design; (iv) Data and Software Standards
Development; (v) Additional Data Collection, primarily for support of ET; (vi) Basin-Wide Fundamental
Platform; (vii) Applications for Water Resources and Water Environment Management; (viii) System
Maintenance and Operation; and (ix) Staff Training.
Subcomponent 2B - Remote Sensing and Evapotranspiration (ET) data systems
ET management is the principal innovative international cutting edge approach being introduced under the
Hai Basin Project. The key to sustainable water quantity management in the Hai Basin is to reduce present
amounts of ET to sustainable levels (i.e. reducing ET throughout the basin in order to eliminate
groundwater overdraft and provide more surface water for ecological purposes including enhancing outflow
to the Bo Hai Sea), and then, in the future, to manage ET within the basin to remain at these sustainable
amounts. Many of the Project activities need to be solidly based on the ET management concepts including:
high-efficiency water utilization and real water savings, administration of water rights and well permits and
water quantity management within the integrated water and environment management plans in Tianjin and
in the Beijing and Hebei counties.
The Project would introduce a new practical approach to water savings in irrigated agriculture using
remote sensing and ET management rather than only focusing on irrigation systems efficiency
improvements, which has been the approach in China in the past. Improving irrigation system efficiencies
does not necessarily save water and in fact can often increase the amount of consumptive use (ET) of
irrigated agriculture by eliminating leakages which were returning to the surface or groundwater systems
and utilizing that water for more crop production. "Real" water savings focuses on reduction in ET which
can be accomplished through a combination of irrigation technology, agriculture and management
measures.
The innovative aspect is that spatially distributed ET information based on satellite remote sensing data
will be used for strategic planning of ET at the basin level, as well as for the "real" water savings at county
level. The only feasible way to increase basin outflow and reduce groundwater overexploitation is the
reduction of the comprehensive ET. Although this is a simple hydrological fact, it is not straightforward to
implement a large scale ET reduction program. One of the largest problems in ET management is the
determination of the ET value. Although there are several field scale measurement techniques, none of these
techniques provides insight in the spatial distribution of ET across vast areas.
The work plan foresees the generation of a continuous time series of ET data between 2003 to 2008. The
data will have a 1000 m resolution for the basin wide studies and has a 30 m resolution for the
demonstration projects in the various counties. To facilitate the ET reduction process and allocate areas
that are potentially suitable for reducing ET, remote sensing maps of ET will be combined with digital
maps of land use and cropping patterns. Furthermore, this Project will provide technical assistance on
quantifying the ET quota and implementing these quota through a water rights and well permits program
that will be designed through the execution of Strategic Studies and Demonstration Projects. The objective
is to reduce the ET at the county level to target levels and then maximize the production and value of
production per unit of ET. There is a wide range of water productivities (Yield/ET) for each crop type
depending on irrigation, agriculture and management practices. The Project will assist the counties in
evaluating the range of water productivities in the county for each crop type and to develop a plan that will
assist the farmers in moving from lower to higher water productivity practices, always keeping the target
ET for the county as the goal. Remote sensing combined with land use information and crop yields can be
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used to carry out this analysis for each parcel down to sizes of 30 by 30 m. The Project will provide strong
technical support to the counties form the Hai Basin Commission and the Project KM Group to learn and
implement this innovative practical approach. It is recognized that an early stage involvement of several
authorities and stakeholders is a pre-requisite to successful implementation of an ET driven water resources
management plan.
Project Component 3: Tianjin Coastal Wastewater Managemnet* - US$ 4.75 million
The component would focus exclusively on the Tianjin coastal area for two reasons. First, wastewater
management for small cities and industries along the coastal area will directly address GEF Operational
Program #10 by demonstrating ways to reduce land based-sources of marine pollution, in this case to the
Bohai Sea. Second, the component will leverage GEF funds by supporting infrastructure investments
financed under the TUDEP2. The TUDEP2 plans to finance from two to four wastewater treatment plants
in the coastal area, with an estimated cost of around US$50 million. In addition, there are other small cities
in the coastal area on the verge of making wastewater management investments. TUDEP2 will provide
associated paralled financing of US$98.25 million towards this component for: (i) renovation and
remediation of the 83 km-long Dagu Canal system which has served as the main wastewater canal for
Tianjin City for four decades and which discharges directly into the Bohai Sea, and (ii) wastewater
management for small cities and industries along the coastal counties of Tianjin.
The component would cover the following set of integrated activities:
l
Binhai Wastewater Management Studies: The Binhai Coastal Commission, which is a special
administrative agency responsible for guiding the development of the Hangu, Tangu, and Dagang
districts, will conduct a comprehensive wastewater management study which will cover institutional,
financial, and technical studies.
l
Dagu Technical Assistance: The Dagu canal system is filled with approximately 2.2 million cubic
meters of sediment, most of it contaminated according to Chinese environmental standards. Dredging,
dewatering, treatment, and safe disposal of the contaminated sediment is a complex and highly
technical task. The Dagu canal cleanup is the largest and most ambitious sediment remediation project
undertaken in China, and the experiences gained under the Project will be useful for addressing the
hundreds of similar canals throughout the country.
l
Dagu Catchment Industrial Pollution Control: Although most of the collected municipal wastewater
will go to treatment plants in the future, there are still many industries that discharge directly into Dagu
Canal (or into municipal systems) without adequate treatment. The GEF program will fund an
industrial pollution control and pre-treatment study, and improve monitoring and enforcement of
discharges into Dagu canal. Control of industrial pollution is essential for the successful renovation of
Dagu canal, and the proper operation of municipal collection and treatment systems.
l
Small Cities Financial Incentives: Controlling water pollution from small cities is a major challenge in
China due to their limited technical and financial resources. Pollution from small cities accounts for
approximately half of the pollution generated in Tianjin municipality, and currently no small city in
Tianjin treats its wastewater. A special fund will be established to assist cities in meeting their financial
obligations during the early years of wastewater treatment plant operation. Instead of, or in addition to,
providing construction subsidies, the basic concept is to provide output based aide to small cities
during the early years of their service agreements with wastewater treatment companies. The GEF
financing will be used to establish and test this incentive mechanism for the Binahi Coastal Districts
and Jinnan District. If successful , the output based subsidy model could be expanded to cover other
small cities in Tianjin, or other provinces/municipalities in the Hai Basin and elsewhere in China.
l
Component-Wide Activities: There are many issues which span all four activities above, and require a
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component wide approach. International and domestic program advisors will guide the implementation
of the activities and ensure coordinated and best practice approaches are taken, so that the component
can fulfill its GEF objective of serving as a demonstration model for integrated wastewater
management. Seminars, workshops, and reports for small cities throughout the Hai Basin and along the
rim of the Bohai Sea, will be organized. High priority pollution testing equipment and
computer/software will be procured for district construction and environmental bureaus, and the
municipal EPB.
*) Together with the associated parallel financing through the TUDEP2 the cost of this component totals US$103 million.
Project Component 4: Project Management, Monitoring and Evaluation, and Training - US$6.18 million
Hai Basin Project management would support coordinated and integrated actions by the Ministries/Bureaus
of environmental protection and water resources at the various levels. Central Project Management Offices
(CPMOs) have been established in MWR and SEPA which will be supported by a Joint Expert Group of
water, environment and other national expertss to assist the PMOs in coordination, review, supervision and
in some cases execution of technical activities under the Project. The central Joint Expert Group will be
key to Project success, because the will work to ensure the technical vertical and horizontal integration of
Project activities. The CPMOs will also be supported by international experts with broad experience in
water quality and quantity management, water and environment planning and knowledge management.
These experts will provide guidance and make detailed recommendations in technical aspects of the Project
and would visit China 2 to 4 times a year for periods of 2 to 6 weeks each time to provide periodic
guidance and assistance. This approach will ensure Chinese ownership of actions because the international
experts will not be directly responsible for Project activities but instead for providing assistance and
on-the-job training in technical aspects related to the Project. The CPMOs will also be responsible for
arranging international and domestic study tours and international and domestic training on a variety of
topics related to IWEM, river basin management, knowledge management, "real" water savings and ET
management, pollution control, water rights and well permits, wastewater treatment, wastewater canal
clean up, wastewater reuse, ecological restoration, etc. The Project will also support CPMO operations,
monitoring and evaluation and other Project management aspects mainly through counterpart funding. The
Project will support Project management, joint expert groups and training and the other Project areas
including Tianjin, Beijing, Hebei, Hai Basin Commission, ZhangWeiNan and in each of the Beijing, Hebei
and ZhangWeiNan pilot counties. Domestic training will be an important aspect of the Project which will
include quarterly workshops held in different Project counties and areas to learn from each other,
interchange ideas and receive guidance from experts.
Project monitoring and evaluation will be carried out by Project PMOs. Annual monitoring and evaluation
reports will be prepared that detail the Project implementation progress of activities and finances for each
subcomponent and the performance indicators. This will be tracked in the Project MIS system. In addition
each IWEMP and demonstration project will include a monitoring and evaluation component that will
specifically address the implementation and effectiveness of the IWEMPs and demonstration projects. The
monitoring and evaluation plans for these activities will be prepared during the first phase of Project
implementation. IWEMPs and demonstration projects will include baseline surveys/inventories of surface
and groundwater quantity and quality conditions, uses and trends and establish specific objectives,
timelines and indicators for IWEMP and demonstration Project implementation both during the life of the
Hai Basin Project and beyond.
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Additional GEF Annex 3: STAP Roster Technical Review
CHINA: Hai Basin Integrated Water and Environment Management Project
HAI BASIN INTEGRATED WATER AND ENVIRONMENT MANAGEMENT PROJECT
World Bank/GEF: International Waters, OP 10 Project: Contaminant-Based Program
STAP Roster Expert Review
undertaken by
Dr Gunilla Björklund
Marmorv. 16A
SE-752 44 Uppsala, SWEDEN
************************************
Overall impression
The Hai River is one of the most significant rivers discharging into the Bohai Sea, China, in the north east
part of the Yellow Sea. The river basin area is about 265 000 km2 and includes the counties of Beijing,
Tianjin, almost all of Heibei, parts of Nei Mongol in the north, of Shanxi in the west, and of Henan and
Shandong in the south and southeast. The Bohai Sea is a reproduction and nursery area for parts of the fish
and shellfish stocks of the Yellow Sea. The population of the area is more than 117 million with a density
of 500 ­ 1000 people/km2 and several mega cities but also several secondary cities. The region is one of the
countries most important industrial and agricultural regions accounting for 15 percent of China's GDP.
Over-exploitation of surface and groundwater in the semiarid-subhumid area has resulted in that the annual
water availability per capita is only 305 m3 and that the total groundwater abstraction per year in the Hai
Basin is around 26 billion m3, approximately 9 billion m3 more than the sustainable yield. As only parts of
the mega cities today have any wastewater treatment, 68 percent of the rivers in north China are polluted. In
the Hai River system more than 80 percent of the surface water and 50 percent of the ground water is
classified as polluted and unsuitable as raw resources for drinking water.
Both the reduction of freshwater inflows and the increasing pollution from the discharging Hai river system
has a detrimental effect on the fish stocks and biodiversity of the East China Seas as well as the ecosystem
functions of the Bohai Seas. And the attempts to address these issues have been hampered by a lack of
coordination between the different agencies involved.
The GEF Hai Basin Integrated Water and Environment Management Project aims at addressing the current
threats by (i) improving integrated water and environmental planning and management in the Hai Basin, (ii)
supporting institutional aspects related to effective local, municipal/provincial, and basin-wide water and
environment planning and management, (iii) addressing the issue of declining amount of available water by
"real" water saving, and (iv) reducing wastewater discharges from small cities along the rim of the Bohai
Sea. The project will enhance capacity building in water and environment knowledge management and
implementation, including by demonstrate new technologies and management approaches. The project
intends thus to contribute to the objectives under OP 10 and "play a catalytic role in demonstrating ways to
overcome barriers to the adoption of best practices limiting contamination of international waters".
The overall impression of the project is very good. It clearly demonstrates the need to build an integrated
management framework to water management in the area. Cooperation between agencies with responsibility
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for different aspects of water use having an impact on water quantity and on water quality and on the
environment is absolutely necessary to achieve any sustainable results. The project is clearly demonstrating
ways to overcome existing institutional barriers by addressing both horizontal cross-sectoral integration and
vertical bottom-up and top-down integration. The approach to decreasing accessible water quantity is
innovative but is most of all providing means to address these problems more sustainably. As the secondary
towns, having no wastewater treatment, are the main contributors to pollution of surface and groundwater,
the prioritisation of pollution control by wastewater treatment is a logical first step, a step that will need to
be followed by addressing other sources of pollution such as agriculture. This would be initiated within the
framework of the different demonstration projects, which also will serve to develop capacity at the
implementing agencies to deal with the problems at different levels.
1.
Scientific and technical soundness of the project
The project brief is describing the approach to work with Integrated Water and Environment Management,
IWEM, including developing and implementing policies, and legal, administrative and institutional
instruments at different levels. It is further describing measures to within such a framework achieve water
quantity management, water savings in irrigated agriculture, by developing Evapotranspiration management
systems including high-efficient water utilisation and different techniques for water savings, and
administration of water rights and permits. These techniques are new and innovative for the region and are
based in a qualified scientific and technical knowledge. The wastewater management technique is not
described in detail but such methodologies are well tried and needed. Wastewater treatment techniques are
also used in World Bank supported projects in the region.
1.1
Sufficient information and knowledge to carry out the project
Information and knowledge to carry out the project has to sufficient extent been secured by including
relevant institutions in the area in the preparation for the project and in that the project builds upon, fills in
the gaps and links to two World Bank-financed project in the region.
1.2
Appropriateness of approach to collect relevant information on sections of society and
economy and on different aspects of the environment, water management and ecosystems
The available information presented is to a very large extent collected by local experts, through local
institutions or through the World Bank projects, which would secure best possible access to such
information. A Social Assessment of the project has been undertaken by a local consultant.
1.3
Sectoral changes needed to achieve the goals of the project
The project brief clearly identify the need to identify the stakeholders and their behaviour and roles in
relation to the project as crucial for project success. It further following the Social Assessment recommends
the piloting of the community-driven development approach to achieve a win-win situation on the integrated
water and environment management including natural resources management and local socio-economic
growth and will thereby secure necessary stakeholder participation.
1.4
The issue of inter-comparability of data
The data collected through the Ministry for Water Resources, MWR, and through the State Environmental
Protection Administration, SEPA, are not always compatible or comparable. As they are both key agencies
in water management for the region and will be implementing parts of the project this could be a critical
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issue. The Knowledge Management subcomponent of the program is requiring close collaboration between
the two agencies, including on data management, common information system platforms, standardised data
transfer and security protocols etc. The development of the component during project preparation resulted
according to the project brief in a significant breakthrough in MWR/SEPA cooperation. The river reach
files and coding systems is going to be developed into a platform where the two agencies will be able to
share data and utilise it in their water function and water environment function zones, which should ensure
inter-comparability.
1.5
The interlinkages between water-related environmental issues and root causes behind the
different environmental problems
The different environmental problems in the region are, as is described in the Overall Impression, mainly
water related but with an adverse effect not only on the Bohai Sea and the East China Sea and its
biodiversity and ecosystem and their functioning but also on the living conditions for the people and the
economic system. The degradation of the Bohai Sea is resulting from Land-based Sources of Pollution, by
non-treated or insufficiently treated wastewater mainly from secondary or small cities, and by agriculture,
discharging through the Hai River, which is heavily polluted. The decreasing amount of freshwater reaching
the Bohai Sea is partly a result of over-extraction of surface and groundwater, mainly for irrigated
agriculture. These issues are to be addressed by the project, where in particularly measures to address the
decreasing water quantity (by evapotranspiration management) will address the root causes, while pollution
control by wastewater treatment can be seen as a remedy.
1.6
Tools and methodology for TDA and SAP in the project
The project is not identifying any Transboundary Diagnostic Analysis, TDA, for the project as that is not
required for projects that are not developed in a transboundary cooperation but which are addressing causes
to environmental degradation in a transboundary sea, here the Bohai Sea. Strategic Action Plans are going
to be developed in different areas but not with the same focus as for this project. This makes it difficult to
see whether some aspects of relevance to the project will be missing in the SAPs.
1.7
Technologies adapted and their relation to the regional socio-economic profile
It is assumed that the project will contribute to the local socioeconomic development and people's livelihood
including by possibilities to use reclaimed wastewater as new water supplies for irrigation and non-potable
municipal and industrial use. Further, evapotranspiration ET, management will contribute to better and
more efficient water use in irrigated agriculture, an important economic sector in the area.
1.8
Do proposed technologies pose environmental threats?
As the proposed technologies will result in an increased amount of water available in the area, by
application of ET management, not only the socio-economic sectors but also the environment should benefit
from that. However, if measures to address pollution in the region, such as wastewater treatment, are only
applied in the most downstream parts, the resulting consequences for the environment in upstream areas
might still be less advantage then anticipated. Such issues need to be addressed in the Integrated Water and
Environment Management framework as need the necessity of not exceed the ecological carrying capacity
for the region.
1.9
Technological innovations applied to support the project
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The methodology for evapotranspiration, ET, management that is to be applied for the region is innovative
and well suited for an agriculture region where applied methodologies for large scale water saving have
failed. For it to be successful a participatory approach needs to be applied, where the individual farmers as
well as the sectoral organisations are informed and involved. There is thus a need for a strong component of
capacity building and knowledge management.
1.10
Institutional arrangements including their scientific capacity
The project will according to the documentation ensure for Joint Expert Groups at central, river basin,
provincial and county levels for providing technical assistance to the Project Management Offices at the
different levels. A majority of these experts will be regional experts with only few international experts.
1.11
Are the choices of demonstration sites representative and appropriate?
The demonstration sites have been chosen to address issues of effective control of wastewater discharge,
pollution control combined with environmental improvements, "real" water savings (application of ET
management), and effective management of water rights and well permits. As these issues are crucial for
project implementation the choice of demonstration sites to be able to demonstrate such techniques are
essential.
1.12
Problems overlooked
The project documentation and plan is addressing the problematic and water and environment issues of the
area within an Integrated Water and Environment Management framework, including water quality as well
as water quantity aspects and their linkages to socio-economic aspects and factors, all important for the
scientific base of the project. There are some references to Monitoring and Evaluation, M&E, of the project
and the project documentation is including a presentation of Key Performance Indicators that might be used
in such a process. There is, however, no plan for the Monitoring and Evaluation process. Such a process
needs to be initiated early on in the project process and an M&E plan needs to be incorporated in the project
documentation, including in the Project Brief.
1.13
Issues of conflict
No issues of conflict between different types of water use or between different water users have been
identified in the documentation. The earlier lack of cooperation between the Ministry for Water Resources,
MWR, and the State Environmental Protection Administration, SEPA, had it not changed into cooperation
during the project preparation, could have resulted in a conflict between water use sectors. An assessment
of different risk and presentation of different mitigation measures to meet these risks is presented in the
documentation. Some of those risks, should they not be addressed, might of course develop into a conflict
and it is essential that proper mitigation measures are taken.
2.
The global environmental benefits of the project and its contribution to the IW focal area
goals.
2.1
Does the project address issues that will result in global environmental benefits?
The project, although the project area, the Hai River Basin, is situated within one country, China, will
contribute to global benefits in an International Waters area, the Bohai Sea, where the Hai River is
discharging, and further the East China Sea. The project should result in improvement of the Bohai Sea
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environment and protection of the fish stocks and biodiversity of the Yellow Sea and the East China Sea by
reduction of marine pollution caused by land based sources, including secondary towns and their industries.
Application of ET management should have an effect on the total water budget of the region including on
the International Waters where Hai River is discharging.
2.2
Are any negative environmental effects anticipated?
No negative environmental effects are anticipated should the project activities be undertaken within the
Integrated Water and Environment Management framework, identified risks be mitigated and any emerging
new risk be addressed by the cooperating institutional structure to implement the project.
2.3
Will the project be able to strategically meet the incremental costs of
a)
Assisting the country to better understand the environmental concern of the Bohai Sea and
subsequently the Yellow Sea and the East China Sea?
In cooperating with local stakeholders, including with farmers on the ET management and with municipal
stakeholders on wastewater treatment and reuse, awareness, training and capacity building should be
important issues. The documentation does not clearly describe how this critical aspect will be addressed
although it clearly demonstrates the need to involve all groups.
b)
Building the capacity of existing institutions?
Many of the different institutions were involved in the project preparations and would, based on the
experiences from that be aware of what is needed from them. All the different Project Management Offices
would have Joint Expert Groups to assist the PMOs in various steps to implement activities. The PMOs are
responsible for different aspects of international and domestic training. The project documentation does not,
however, specify how such training should be organised and how the different PMOs themselves should be
trained in order to ensure compatibility not only in data and methodology but also in the approach to
problem-solving.
c)
Implement measures that address the priority transboundary concerns?
Meeting incremental costs to address priority transboundary concerns might be an issue in applying the
integrated approach to Water and Environment Management for the Hai River Basin as such an approach
should also include addressing issues of the Hai River discharging into the Bohai Sea. In doing this,
contacts for information exchange and, where appropriate, cooperation should be made with other relevant
projects in the region, including the two GEF/UNDP-projects for improvement of the Bohai Sea
environment. The project documentation is referring to such exchange as being relevant.
3.
The project's replicability and regional context
The project approach, to within an Integrated Water and Environment Management system apply measures
to improve water quality and quantity and thus the discharging water into the International Water of Bohai,
Yellow Sea and subsequently East China Sea, development of relevant demonstration sub-projects, and
application of innovative technology would make it highly replicable in particularly for areas with the same
climatic and socio-economic conditions as the Hai River Basin.
3.1
Scope for replication of approaches in other international water bodies
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The demonstration projects and the Integrated Water and Environment Management structure have been
developed to be possible to replicate in other counties in the river basin and are thus seen as highly
replicable. The Chinese government has ensured a broad replication should the project be successful.
Particular parts, such as the ET management technology, would be applicable also to other river basins,
should the physical and socio-economic conditions be favourable.
3.2
The regional scope of the project
The project intends to be implemented in a densely populated, water scarce and highly water polluted river
basin in China discharing into the International Waters of Bohai and the Yellow Sea LME, which makes the
region very relevant for this type of project.
3.3
The innovativeness of the project
The project is introducing a new and innovative approach to water savings, which focuses on reduction in
evapotranspiration through a combination of irrigation technology, agriculture and management, building
on water productivities for different crops etc. Although the methodology is site and crop specific in its
application the system as such can be applied to other areas and is very interesting.
4.
Linkages to other focal areas, programmes, action plans etc.
4.1
Linkages to other GEF focal areas
The project falls under the GEF IW Focal Area, specifically under the OP 10: Contaminant-Based
Programme but it is also contributing to the objectives under the Biodiversity focal area 2 "Coastal, Marine
and Freshwater ecosystems" as the intention is that it will include specific studies on requirements for
reduced pollution and increased flows to the Bohai Sea whereby it should enhance marine ecology. It will
further determine minimum ecological flows for watercourses and wetlands in the Hai River Basin.
4.2
Relevant conventions/programs considered and taken into account
Objectives under the Biodiversity convention will be supported. The project will also respond to what is
stated in the Global Programme of Action to Protect the Marine Environment from Land-based sources of
Pollution by seeking to reduce pollution of water discharging into the Bohai Sea by the different activities
under the project.
4.3
Consistency between proposed activities and existing National Plans
The project documentation is identifying existing plans such as the 10th National Five Year Plan
(2000-2005), Bohai Blue Sea Action Plan, Hai Basin Comprehensive Management Plan, etc. municipality
plans etc. and their emphasis on the need for water-saving, reduction and prevention of pollution etc. It thus
seems to be good consistency between proposed activities and existing plans.
5.
Degree of involvement of stakeholders in the project
The project has, according to the project documentation, been designed to involve stakeholders. Detailed
case studies and surveys in typical project areas have shown the necessity to involve stakeholders in the
preparation of the different steps of the project implementation. The demonstration project on water rights
and well permit will include components to ensure maximum ownership by water users, and mechanisms
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for farmers' participation during the implementation of the integrated agriculture aspects of Integrated
Water and Environment Management, IWEM, plans will according to the project brief be ensured. Detailed
plans for such participation will need to be worked out and spelled out in the IWEM plans.
5.1
Will national and regional institutions be able to contribute to the achievement of the project
objectives?
Farmers associations and cooperatives as well as business and social groups will according to the
documentation be consulted as part of the IWEM preparation. At project policy level the documentation
describes the need to examine possible new institutional arrangements for basin-wide policy, planning and
management for establishing a high-level, multi-sectoral coordinating committee. Otherwise the
implementation arrangements will build on existing institutional structure, which to a large extent has been
involved in the project preparation, thereby enhancing cooperating abilities. In such cooperative efforts they
would be able to contribute towards the project objectives.
5.2
Capacity building
As part of the project the Joint Expert Group that will support the Central Project Management Offices will
provide assistance and training and the project shall according to the documentation include quarterly
workshops in different areas to exchange experiences. The documentation does not provide information
about capacity building of different stakeholders such as water users and farmers. Such capacity is
essential and would need to be ensured to secure project sustainability.
6.
Conclusions
The project is a very well designed and developed project with a strong governmental ownership and
commitment by the Chinese government. The project approach, to develop an IWEM framework and within
that develop and implement measures to deal with water scarcity (by applying new and innovative
methodologies), groundwater mining and pollution, is scientifically and regionally appropriate and viable. A
strong national and regional institutional arrangement is in place and as project preparations has resulted in
increased cooperation efforts it is likely that this arrangements will provide a good bases for project
implementation. To achieve long-term sustainability the project also intends to include participation of
different water users, although the project is not providing any information on how it intend to enhance the
capacity among different water users for them to contribute towards successful project implementation and
sustainability. Furthermore, a detailed plan for Monitoring and Evaluation, that needs to be initiated early
in the project, has not been provided. With these two aspects remediated, I would strongly recommend the
project for approval by the GEF Council, and am convinced that implementation of this project would lead
to beneficial results for the region and the global environment.
Uppsala 22 August 2003
Gunilla Björklund
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Additional GEF Annex 4: Incremental Cost Analysis
CHINA: Hai Basin Integrated Water and Environment Management Project
Overview
The overall objective of the GEF alternative is to catalyze a more integrated approach to water resource
management and pollution control in the Hai River Basin in order to improve the Bohai Sea environment.
Specifically, the Project would: Improve integrated water and environment planning and management in the
Hai Basin; Support institutional aspects related to effective local, municipal/provincial, and basin-wide
water and environment planning and management; and support reduction of wastewater discharges from
small cities along the rim of the Bohai Sea. Specific Project components, all interrelated include: (i)
Integrated Water and Environment Management (IWEM); (ii) Knowledge Management (KM); (iii) Tianjin
Coastal Wastewater Management; and (iv) Project Management, Monitoring and Evaluation, and Training.
The GEF Alternative intends to achieve these outputs at a total incremental cost of US$ 129.99 million and
focuses on high-priority issues for the Chinese government and international environment protection.
Broad Development Goals
The Hai Basin, home to over 117 million people and accounting for 15 percent of China's GDP, is spread
over four provinces and the municipalities of Beijing and Tianjin. The area that would be covered by the
Project is one of the country's most important river basins and one of the most important industrial and
agricultural regions of China. Water has played a pivotal role in the development of the Basin, and
sustainable development is heavily dependent on water resource management. Like many other areas in
China, the Hai River Basin is facing serious water-related problems, including water pollution, water
scarcity, and flooding. Over-exploitation of groundwater, estimated by some to be 9 Billion cubic meters
annually, and overuse of surface water resulting in inadequate environmental flows, along with increasing
groundwater and surface water pollution, are contributing to the decline and deterioration of water
resources and damage to freshwater and in coastal environments in the Hai Basin. Present water use
patterns in the Hai Basin are not sustainable and continued rapid economic growth is jeopardized.
The Basin discharges into the Bo Hai Sea and is a major contributor to pollutant loadings. The sea is an
important eco-system and fishery resource, reflecting its role as a seasonal spawning and nursery ground
for the larger and more productive Yellow Sea. However, heavy land-based pollution from urban,
industrial, agricultural, and other sources in the Hai River Basin, combined with over-fishing, reduction of
freshwater inflows, and habitat loss, threatens the fishery and has steadily diminished many of the Bo Hai
Sea's eco-system functions.
The Chinese Government is committed to corrective action. China's 9th Five Year Plan (1995-2000)
included provisions for improving water resource management in the Hai River Basin and restoring the Bo
Hai Sea ­ notably pollution control measures. Other measures include greater efficiency in water use, water
diversions from the Yellow River to the Hai Basin, and improved flood control measures. While these
initiatives are vital, they address problems of immediate concern and insufficiently provide for longer-term
challenges. The south north transfer of water from the Yangtze River to northern China including the Hai
Basin is a more long-term solution, but would still be inadequate to meet demands without major
improvements in water resources management.
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Baseline Scenario
This scenario comprises previously agreed plans and initiatives of the Chinese Government to address
water related problems at national and local levels. It reflects the likely situation concerning the Hai Basin
and Bo Hai Sea in the absence of GEF support. There are various national programs and more detailed
investment programs, generally formulated by sector management agencies and local governments, to
implement the national plans. It has to be taken into account that these national plans are highly ambitious
and are sometimes not fully realized. The related activities are often carried through to the next planning
period and tend to be large scale investments, leaving out the medium to small scale investment level.
Another important issue is the institutional fragmentation of water resource management as it involves
amongst others, the following agencies: the Ministry of Water Resources (MWR), the State Environment
Protection Administration (SEPA), the Ministry of Construction (MOC) and the Ministry of Agriculture
(MOA). Each agency has its own planning process, frequently leading to overlapping and/or inconsistent
plans and programs.
National Plans
·
9th National Five Year Plan (1995-2000): China's environmental improvement priorities were
defined as: three rivers (Huai, Hai, and Liao), three lakes (Tai, Cao, and Dianchi Lake), two air quality
issues (SO2 and acid rain), one municipality (Beijing), and one marine area (Bo Hai Sea). (Planned
Investment: US$ 22.2 billion)
·
10th National Five Year Plan (2000-2005): Emphasizes the need for sustainable management and
use of water resources, especially intensifying agricultural water-saving and wastewater reuse efforts.
(Planned Investment: US$ 30.5 billion)
·
China Trans-Century Green Program: Emphasizes construction of urban environmental
infrastructure. The Program has three phases, spanning 15 years. Formulated through joint efforts of
SEPA, The State Development Reform Commission (SDRC), and the State Economic and Trade
Commission, it is an umbrella program for all pollution control initiatives in China, including water
pollution control of the Hai River Basin. (Planned Investment: component of National Five Year Plan)
·
The South-North Water Transfer Project (SNWT Project): This proposed Project would address
the serious water scarcity problems in North China, including the Hai Basin. The intention is to transfer 20
bcm water from the Yangtze River system to North China. (Planned Investment: US$ 10-15 billion)
·
Bo Hai Blue Sea Action Plan: The plan seeks to influence urban development, the economic
structure, and the adoption of clean production technologies. High priority is given to the control and
prevention of land-based pollution. The intention is to invest in new and improve existing sewage treatment
plants, recycling and reuse of waste, and the adoption of various "clean" technologies. (Planned
Investment: US$ 7.2 billion)
·
Water Pollution Prevention Program of Hai River Basin: The Program endeavors to ensure that
all industries abide by national discharge standards and improve water quality. (Planned Investment: US$
5.3 billion for water pollution control)
·
Hai Basin Comprehensive Management Plan: The Plan incorporates flood control, water resource
management, and soil and water conservation. (Planned Investment: US$ 1.5 billion)
·
National Irrigated Agriculture Water-Saving Program: The Program endeavors to rehabilitate
irrigation systems and improve irrigation technologies in 300 counties, identified as demonstration sites.
(Planned Investment: US$5.2 billion)
Beijing Municipality
·
Plan for Sustainable Use of Water Resources in the Capital in the 21st Century (2001-2005): It
focuses on the development and protection of water resources. By 2005, Beijing Municipality plans to
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achieve water savings of 790 million cbm, reuse of 645 million cbm of treated wastewater, supply of 150
cbm of water from rain and flood sources, achieve groundwater balance in the city, and ensure that the
water quality of the city suburbs reaches national standards. (Planned Investment: US$ 3 billion)
Tianjin Municipality
·
Hai Basin Tianjin Municipality Wastewater Treatment Project: The Project will complete the
Municipality's 1958 Sewerage and Drainage Master Plan, which designates six drainage zones, a WWTP
in each zone, and separate sanitary and storm sewers. (Planned Investment: US$274 million)
Hebei Province
·
The Hebei Provincial Government has outlined an ambitious environment protection plan for the
province up to the year 2010 to be implemented in three phases. The plan is consistent with national
environmental plans including the Trans-century Green Engineering Plan and the Hai River Pollution
Control and Prevention Plan, which are mentioned above. (Planned Investment: TBD)
Related Projects financed by the World Bank and the Asian Development Bank
·
Water Conservation Project
·
2nd Tianjin Urban Environment Project
·
2nd Beijing Urban Environment Project
·
FY01 Hebei Urban Environment Project
·
Agenda for Water Sector Strategy for North China
·
Tianjin Wastewater Treatment and Water Resources Protection Project
·
Coastal Resource Conservation and Environment Management Project for the Bo Hai Sea
The cumulative effect of the Government's initiatives outlined above will be considerable, particularly with
regards to reduction of pollution of water resources in the Hai Basin. COD loadings from major sources in
the Hai Basin are estimated to be reduced by 17 and 25 percent in 2010 and 2020, respectively, compared
with the 2000 levels. However, reductions in loads will not be sufficient to improve water quality to the
extent needed for public health, environmental needs, and restoration of the marine environment of the Bo
Hai Sea.
Table 1: Hai Basin COD Loads from Major Pollution Sources

1997
2000
2010
2020
Urban Industry
2,289
2,213
1,435
1,225
Urban municipal
401
488
656
713
Rural industry
1,623
1,607
1,266
858
Livestock
643
663
730
848
Rural municipal
239
254
276
292
Total COD
5,195
5,225
4,361
3,935
Baseline Scenario: 1000 tons/year (Agenda Water Sector
Strategy for North China, April 2, 2001)
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Global Environmental Objectives
Success in managing the Hai River Basin and restoring and protecting the environment of the Bo Hai Sea is
of global importance, because the trans-boundary effects of water pollution are severe. The Bo Hai Sea and
the Yellow Sea are a single large marine ecosystem and interdependent fishery. Approximately 600 million
people live in the basins that drain into the Yellow Sea. Many depend on it as a source of livelihood.
Damage to the Bo Hai Sea's function as a nursery area for fish and shellfish stocks damages the resource
wealth of the Yellow Sea. The implications are even more widespread, for pollution of the Bo Hai Sea
ultimately affects the East China Sea. The Bo Hai Sea, the Yellow Sea, and the East China Sea are
connected, forming a continuous circulation system.
The deterioration of the water resources in the Hai Basin is severely impacting the quality of life of millions
of people in a river basin with major population, industrial production and agriculture production. Water
pollution and water scarcity impact on agricultural production and human and environmental health.
Deterioration of the environment is also hampering poverty reduction, the most seriously impacted are often
the most vulnerable.
The GEF Alternative Project will assist China to significantly improve its water resource management
practices. From a global perspective, this improvement would result in the following benefits:
·
It would help improving the Bo Hai Sea environment, contributing thereby to maintaining fishery
stocks and biodiversity of the Yellow Sea and the East China Sea more generally;
·
Poverty reduction enhances social stability which, if not addressed, has national and potential
international implications.
·
An integrated approach to water resources management in the Hai Basin would provide a model
for wider application in China;
·
Success in China would encourage other developing countries to draw upon the lessons learned.
GEF Alternative
The proposed GEF Program for the Hai Basin and Bo Hai Sea will encourage a more comprehensive
integrated water resource management approach than outlined under the baseline scenario. This will help
give direction to and ensure that various plans of the agencies involved in the Hai Basin are coordinated
and properly integrated. The central focus of the GEF alternative would be the support of the formulation
of Integrated Water Resource Management Plans (IWEMPs) in pilot counties and at the sub-basin and
basin levels. Attempts to improve water resources management in China have been very top down, with
strong laws, policies, regulations and large investments, but with insufficient bottom up implementation at
the grass roots level. The purpose of the IWEMPs is to address integrated planning and to implement
practical bottom up actions that translate top down initiatives into bottom up results. The IWEMPs will
include water user participation and local government ownership in the development of plans that address:
(i) water quality management aspects, concentrating on point and non-point sources of pollution through
the implementation of discharge controls, industrial restructuring to clean industries, wastewater treatment
in small cities, industrial wastewater treatment, and agricultural and livestock production related pollution
controls, (ii) reuse of treated wastewater, (iii) improvements in water use efficiencies that result in "real"
water savings by reducing non-recoverable losses particularly evapo-transpiration (ET), (iv)
implementation of effective water rights and well permits systems, (v) increasing water pricing combined
with volumetric measurement, (vi) conjunctive use of surface run-off and groundwater, and (vii) ecological
restoration.
The IWEMPs would also, where appropriate, provide revisions to laws, regulations, standards, and other
factors related to water quality and water quantity management at basin and local levels. In addition,
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Demonstration Projects would be implemented in selected counties to deepen experience in key complicated
areas including: (i) "real" water savings, (ii) administration of water rights and well permits, (iii) pollution
control, and (iv) ecological restoration. Strategic Studies at the basin level would address important basin
policies, programs and approaches in order to ensure adequate governmental support to the lower levels to
implement to plan and implement the IWEMPs and demonstration projects. Lessons learned from the pilot
counties and demonstration areas would be shared with other counties throughout the Hai Basin and
elsewhere in China. An integrated approach would furthermore lead to a better understanding of important
surface/subsurface and water quality interactions, and facilitate new management techniques.
Without GEF support, integrated water resource management at the county level is unlikely to be achieved
because of the already mentioned difficulties in inter-jurisdictional and inter-administrative cooperation and
inadequate programs to implement government policies at the grass roots level. Each agency has its own
programs with generally ineffective bottom up implementation and inadequate coordination because of lack
of adequate vertical and horizontal integration of activities. Water resource management involves many
agencies. While the MWR has the primary responsibility for overall management of the nation's water
resources, and SEPA has overall responsibility for pollution control. There are considerable overlapping
jurisdiction problems between these agencies and with other ministries and agencies concerning urban
water supply, water pollution control, groundwater management, and irrigated agriculture. MWR's and
SEPA's management role is further limited by the increasing powers of provinces following the
decentralization process. The GEF Program would provide a powerful demonstration effect and an
incentive to break through institutional barriers.
The GEF alternative has already resulted in a breakthrough during Project preparation whereby Project
related cooperative mechanisms have been established between MWR and SEPA. The Project would
include an integrated program to improve basin-wide measurement, monitoring, modeling, and data sharing
that will greatly enhance water resources management. River reach files with a common coding system will
be developed and implemented that will allow for the sharing of information that will satisfy both SEPA
and MWR needs, as well as the lower-level needs at the county level. Applications will also be developed
that support the needs of integrated water resources management for the different entities. These activities
under the Project are referred to as Knowledge Management (KM). KM improvements are needed because
an adequate system of data collection and analysis is critical to integrated water resources management.
Monitoring is another serious problem in the Hai Basin. Without effective monitoring and enforcement, it is
impossible to have an adequate system of water rights administration or volumetric pricing.
This is the first GEF initiative of this kind. A further global benefit, therefore, is the important
demonstration effect of solving problems related to water resources through adopting a comprehensive
integrated management approach for a globally important river basin. The Project would help to provide
the management framework for integrated water resources management, which is indispensable for a
long-term sustainable approach to water use in the Hai Basin and to reducing pollution into the Bohai Sea.
Although government policy calls for an integrated framework, experience has shown that
inter-jurisdictional, and inter-administrative cooperation often proves difficult. The GEF grant would
provide an incentive to break through institutional barriers and intends to provide a powerful demonstration
effect. The Project would help to provide international expertise to provide Chinese counterparts with a
broad range of management experiences and instruments to draw upon.
The rationale for GEF involvement is that, without support, the Government tends to focus on measures
that are visible and with immediate effect, thus geared towards investment in infrastructure rather than
management activities and research (see baseline scenario). The Government and research institutes have
limited practical experience in designing integrated water resources management instruments resulting in
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sustainable use of water resources and environmental protection/restoration. The international expertise
that accompanies GEF Projects would provide Chinese authorities with a broad range of management
experiences and instruments to draw from.
In addition to the global benefits described above, the Project would also generate significant
supplementary benefits for China. The IWEMPs formulated under the Program will enable government
agencies at various levels to better manage and use water resources in the Hai Basin. The improved
knowledge management system, including ET management, for the Hai River Basin will help government
agencies to formulate efficient and sustainable water resources policies and ensure effective enforcement of
water pollution regulations and laws. These benefits are not in the baseline scenario because of inadequacy
of financing and institutional capacity limitations. ET management using remote sensing is a principal
innovative international cutting edge approach being introduced under the Hai Basin Project. The key to
sustainable water quantity management in the Hai Basin is to reduce present amounts of ET to sustainable
levels, and the Project provides a practical feasible approach for achieving this objective. Eventually
reducing ET to sustainable levels will result in stabilization of groundwater systems and the long-term
provision of water for environmental purposes including delivery of fresh water to the Bo Hai Sea.
The wastewater management for small cities and industries along the coastal area (component 3) will
directly address GEF's Operational Program #10 by demonstrating ways to reduce land based-sources of
marine pollution, in this case to the Bohai Sea. China presently pays very little attention to small cities and
suburban industrial pollution, concentrating almost exclusively on pollution control in large urban areas.
The Project would attempt to leverage GEF funds by supporting infrastructure investments in small cities
and suburban areas financed under the World Bank-financed Tianjin Urban Environment and Development
Project (TUDEP2). In addition this component will support cleanup of the Dagu Canal system which has
served as the main wastewater canal for Tianjin City for four decades and which discharges directly into
the Bohai Sea. China has many of these large sewerage discharge canals that need to be renovated and the
Project will provide a demonstration on technically and environmentally sound approaches for this.
Success of this component will provide powerful demonstrations of how to begin to address these huge and
presently largely un-addressed pollution problems.
Although the scope of the proposed GEF Program is small compared to the enormity of reducing pollution
of the Bo Hai Sea, it will provide important demonstration effects. It will support technical assistance to
control pollution from secondary cities, and suburban and rural areas, which account for more than half the
pollution loadings entering the Bo Hai Sea. The global benefit, therefore, will be laying the groundwork for
substantial reduction of pollution of the Bo Hai Sea and an improved marine environment. This, in turn,
will contribute to sustainable management of the Bo Hai Sea and maintaining fish stocks and the
biodiversity of the Yellow Sea and East China Sea.
Related GEF Projects
The proposed GEF Project builds upon, fills in gaps, and complements other related initiatives in the region
that are supported by GEF. By contributing to improvement of the Bo Hai Sea environment, the Program
addresses an important missing link in the China/GEF relationship. China is a participating state in two
GEF/UNDP Projects for improvement of the Bo Hai Sea environment: "Building Partnerships for the
Environmental Protection and Management of Asian Seas" (PEMSEA); and "Reducing Environmental
Stress in the Yellow Sea Large Marine Ecosystem" (YSLME). The proposed GEF alternative also
complements initiatives supported by other international agencies. Some of these projects are listed above.
The PEMSEA Project is designed to assist the East Asia Sea Region to collectively protect and manage the
coastal and marine environment through intergovernmental and inter-sectoral partnerships. It involves ten
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countries in Asia, including China. A key element is to facilitate development of institutional capacity,
management strategies and action plans to deal with land-based pollution. The Bo Hai Sea is identified as a
sub-regional sea under stress and a pollution "hot spot". A demonstration site has been established to
reduce waste discharges and to address environmental problems common to adjacent provinces and
municipalities. The proposed GEF Program for the Hai Basin and Bo Hai Sea complements the PEMSEA
Project in two important ways:
·
It will contribute to PEMSEA's objective to control land-based sources of pollution of the Bo Hai
Sea;
·
It will complement PEMSEA's efforts to establish inter-jurisdiction coordinating mechanisms to
address environmental issues in the Bo Hai Sea by promoting integrated water resource management in the
Hai Basin.
The YSLME Project is a regional effort involving China and the Republic of Korea to formulate and
implement a regional Strategic Action Program (SAP). The Democratic People's Republic of Korea has
also been invited to participate in the Project, although it has so far declined formal involvement. The
long-term objective of the Project is ecosystem-based, by supporting environmentally-sustainable
management and use of the Yellow Sea. As mentioned earlier, the Bo Hai Sea is critical to maintaining the
fish stocks and biodiversity of the Yellow Sea. The Hai, Liao, and Yellow Rivers have important effects on
salinity in the western Yellow Sea. Therefore, the SAP must involve the Bo Hai Sea and the Hai River
Basin. The proposed GEF alternative will contribute to YSLME Project's long-term objective and support
the formulation and implementation of the SAP.
Incremental Costs
As discussed in the Baseline Scenario section above, the Government of China has plans or is in
the process of implementing billions of dollars in investments that will result in improvements in water
quantity and water quality conditions in the Hai Basin with consequent improvements to the Bo Hai Sea.
These investments will not appreciably contribute to the Project objectives of moving towards integrated
water resources management in the Hai Basin and small city and suburban wastewater treatment. For the
purpose of this incremental cost analysis it was decided to only include in the Baseline Scenario those
investments related to the closely-linked TUDEP2 and Water Conservation Project (WCP), that would
contribute to the Project objective of integrated water and environment management. In this regard, using
data from TUDEP2 and WCP, the total cost of the Baseline Scenario is US$ 206.95 million, including
Government of China expenditures of US$ 118.72 million and IBRD financing of US$ 88.23 million.
(Note: The Baseline Scenario included all of WCP and only the Water Reuse and Institutional Development
components of TUDEP2). For the GEF Alternative, the total cost is US$129.99 million, including US$
72.14 million from the Chinese government (US$ 57.40 million under TUDEP2 and US$14.74 million
direct), US$ 40.85 million of IBRD loans under TUDEP2, and the GEF grant of US$ 17 million. (Note:
The Dagu Canal Rehabilitation and Suburban Sewerage components of TUDEP2 were included in the
GEF Alternative because their successful implementation is dependent upon the GEF Project.) All of these
funds would be incremental to the baseline scenario. Table 2 shows the incremental cost distribution
according to Project component.
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Table 2: Incremental Cost Matrix
Component
Cost
US$ Million
Domestic Environmental Benefit
Global Environmental Benefit
Category
1. Integrated
Baseline
187.85 (i) Water conservation in irrigation
Some improvement of Bo Hai Sea
Water and
agriculture and reduction in surface and marine and coastal environment
Environment
groundwater overuse.
and protection of fish stocks and
Management
biodiversity.
(IWEM)
With GEF
202.15 (i) Demonstration effect of adopting
Demonstration effect of adopting
Alternative
integrated water management measures integrated water and environment
to control water pollution and deal with
management measures to control
water shortage and other related
water pollution and deal with
problems; (ii) Reduction of marine
water shortages. Further
pollution caused by land-based sources, improvement of Bo Hai Sea
especially pollution from secondary
marine and coastal environment
towns and their associated industries (iii) and greater protection of fish
Improvement of public health because of stocks and biodiversity.
better water quality and pollution
reduction; (iv) Improvement of the
environment of the Hai River Basin; (v)
Protection of fish stocks and biodiversity;
(vi) Enhanced habitat & species
protection.
Increment
14.30

2. Knowledge
Baseline
3.82 Improved Knowledge Management in

Management
Water Conservation and Pollution
Control.
With GEF
10.33 Improved Integrated Knowledge
Demonstration effect of adopting
Alternative
Management System for the Hai Basin
integrated water management
and improvements in the conservation of measures to control water
water resources and the water
pollution and deal with water
environment.
shortage and other related
problems.
Increment
6.51

3. Small Cities
Baseline
0.00

Wastewater
With GEF
103.00 Improvement of the water quality of the
Reduction of marine and coastal
Treatment
Alternative
Hai River Basin and improvement of
pollution caused by land-based
Support
public health because of better water
sources, especially pollution from
quality and pollution reduction.
secondary towns and their
associated industries.
Increment
103.00

4. Project
Baseline
15.28 Improved Public Sector capacity for

Management
water conservation and pollution control.
and Training
With GEF
21.46 Increased public sector capacity for

Alternative
Integrated Water and Environmental
Management and improved institutional
arrangement for integrated water
resource planning and management.
Increment
6.18

TOTAL
Baseline
206.95
With GEF Alternative
336.94
Increment
129.99
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Additional GEF Annex 5: Social Assesment
CHINA: Hai Basin Integrated Water and Environment Management Project
The China-GEF Hai Basin Integrated Water and Environment Project will cover the whole basin or a total
318,000 square km, including Beijing, the national capital, Tianjin municipality, Hebei and several parts of
five other provinces, with a population of 117 million people, about 9 percent of the Chinese population.
For more than a dozen years, over-exploitation of the surface water and overdraft of groundwater for
domestic, industrial and agriculture uses in the densely populated basin has resulted in a severe water crisis
with water resources shortage and environmental pollution. This situation has seriously affected people's
lives and health, and constrained local socio-economic productivity development.
This Project will support promotion of integrated water and environment management in the Hai Basin,
with the long-term objective to realize a more rational distribution of water resources, increase water use
efficiency and rehabilitate environmental quality and ecological systems. To counter the deteriorated
situation water resources in the Hai Basin, strict control of water use and pollution would lead to
improvement of the people's living conditions and rehabilitation of their production sustainability. At the
same time there is a need for major changes in their water use behavior that further lead to multiple
interactions between their economic activities and the water control management. As the Project
beneficiaries, the local people's understanding, participation and collaboration will be an important aspect
of Project success.
A social assessment (SA) was recommended and undertaken in the Project preparation to address the
Project impact on behavioral change among the local population under integrated water and environment
management, to detect any potential social risks and possible social costs that the Project may bring about
on local society, and to promote community participation and empowerment in the programs of ground
water management and water right management in the Demonstration Projects. According to the Project
contents and the socio-economic characteristics of the Hai Basin, the SA was particularly focused on the
rural areas outside Beijing and Tianjin municipalities where about 80-90 percent of the Project population
in the related provinces live while lacking effective measures to protect themselves from water shortage and
pollution. Such focus of the SA made it more pointed and meaningful in steering the Project design.
The SA was commissioned to a qualified sociologist from the China Agricultural University as SA. In
accordance with the Bank requirements, including methods and contents of social analysis (Social Analysis
Sourcebook), the SA consultant prepared a work guideline and first did a desk review, collecting and
analyzing the secondary data and information of the Basin socio-economic background, water related crisis
and current anti-crisis activities, legal and policy environment, as well as the potential Project stakeholders
at various levels and their interests in comparison with the proposed Project concept. Based on this initial
review, the SA fieldwork was designed and conducted through exemplary qualitative data gathering using
the participatory approach and quantitative data collection with appropriate sampling methods. As the
culminating activities of the SA, stakeholders workshops were carried out at village, township, county and
municipality levels for validating, verifying and communicating the SA concerns and results. A SA report
was completed and attached to the draft Project Implementation Plan (PIP).
The Project areas were exemplified with two typical counties in Hebei Province, Cheng-an and Shexian, for
the SA field surveys and case studies, where water was extremely short and severely polluted, which has
affected local economic production. Moreover, in terms of the topographic features and groundwater
quality, these places were also demarcated into some plain and mountainous areas with different irrigation
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schemes, and some brackish and fresh groundwater zones facing different water usability constraints.
These represented the multiple characteristics of the Project coverage and reflected the complex
socio-economic diversities in the Hai Basin for the SA to analyze. Table 1 (below) summarizes the basic
conditions of water resources and quality and the related socio-economic situations in the Project areas in
Hebei Province.
Table 1
Basic Water Conditions and Socio-Economic Situations in Hebei's Five Key Counties
Plain area (Cheng-an, Guantao,
Mountainous area (Shexian County)
Linzhang and Feixiang Counties)
Water resources
Very little or almost no surface water,
High proportion of surface water,
Surface water
"all rivers dried up, and all water
mainly used for irrigation;
polluted".
More conservancy engineering works
(middle ­ small scales mainly).
Underground water
Deficient in shallow layer of freshwater
More water resource in volume,
with low quality;
freshwater, uneven distribution, with
Large area of shallow brackish water,
difficulties.
requiring the use of deep layer freshwater
for drinking and irrigation;
Severe deficiency due to long term over
exploitation.
Industry and
Low percentage of industrial use, more
High use degree, with large proportion
agriculture use
than 85% by agriculture.
and concentrated distribution of
industry use.
Fluorine and Iodine There are high fluorine concentrate areas Better water quality, lack of iodine in
with different degrees.
some areas
Water
Area pollution by chemical fertilisers and
environment
pesticides exists extensively and can be
Agricultural
quite serious, esp. nitrogen and
pollution
phosphorous to shallow underground
freshwater (mainly in the plain areas);
Caused secondary salinization of arable
land soil (plain area).
Industrial/living
Very limited wastewater treatment for
pollution
industrial and domestic wastewater, more
severe in mountain area (Shexian
County).
Cross boundary
More serious than mountain areas.
Entering surface water deteriorated
pollution
in quality, the pollution concentration
increased.
Agriculture
Wheat and corn as the main crops;
Wheat and corn as the main crops;
More cotton and vegetable production
more fruit production;
compared with the mountainous area;
More structure adjustment was made
More difficult to adjust cropping pattern
with more water and soil conservation
due to market factors.
and converting cultivation to forestry.
Farmers'
Pig rearing is the principal animal
Small sized and scattered animal
non-land income
husbandry production;
rearing;
sources
Rural industry
More out-migration as wage labour,
More TVEs of construction material
structure
construction, trade, etc.
and mining, more local wage labours.
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Each of the items and the related findings in the table were detailed and elaborated in the SA analyses of the
sampling cases. In the plain area, most agricultural and industrial water uses, as well as the domestic water
uses, relied on groundwater; while in the mountainous area, irrigation districts were served mostly with the
surface water. Different water resources resulted in differentiation of community livelihoods but all water
resources were significantly polluted. In the plain area, the groundwater was drawn from the shallow layer
in the freshwater zone and from the deep layer in the shallow brackish water zone (brackish water in this
zone is generally not suitable for drinking or irrigation). With overdraft, however, the freshwater in the
shallow layer became almost exhausted while the deep groundwater has very limited recharge resulting in
very rapid drawdown. Local people, from county leaders to farmers, were well aware of the water
problems, and they were even panicking about their deteriorating situation, and hence very keen to change.
Beilangpu village in Cheng-an county, for example, had 100 wells irrigating its 450 ha of farmland. The
wells were deployed much more densely (about one per 2 ha of land) than they were supposed to be (about
one per 7 ha) because of competition in irrigation without unified management and cooperation. As a result,
in most cases no more water could be drawn from one well if two neighboring wells being pumped
simultaneously. Still worse, farmers might have to enlarge the wells and buy bigger pumps more frequently
(almost every year in the worst cases) due to rapid water table lowering (in some cases by about 2 meters
annually and it was presently as deep as 42 meter in the fresh shallow layer zone) They also had to take
more and more time and pay for more and more electricity to irrigate the same land. Farmers said, with this
tendency, it would not take too long that all the 100 wells might have to be abandoned because the expense
installing deeper wells and larger pumps was too high. Farmers hence wanted to save water in order to
stabilize their livelihoods and secure their future. In fact, they had some ideas to do so, such as using pipe
irrigation, cultivating dry crops, and organizing themselves under a unified irrigation management systems
for better cooperation. They practiced some of the ideas, such that they cultivated 4000 mu of cotton taking
about 60 percent of the village land. Yet this was not good enough for either water saving or increasing
their incomes, and they wanted to do more. So when they heard of this proposed Project, they were very
enthusiastic and participated energetically in the discussions.
The SA found that there were some other local projects going on for natural resource rehabilitation, such as
the programs of Returning Unarable Farmland to Forestry, Integrated Watershed Management, etc. But for
most of the Projects as well as the local development planning in general, decisions were usually made
top-down and communities and farmers had not much say but merely collected-funds and provided labor
inputs. Even village leaders rarely had voices in Project choices and decision-making processes. As a result,
the rehabilitation measures were limited. The World Bank supported Water Conservation Project was also
implementing in some of these areas with significant bottom-up aspects. WCP pays great attention to
institutional management reform as one of its three major measures for "real" water saving (the other two
measure are improvement of irrigation systems and improved agricultural techniques), by encouraging
farmers' participation in local irrigation management through organizing Water User Associations
(WUAs). The WUA as an effective participatory means was hence also introduced and adopted in this Hai
Basin Project design, based on the rich experience from WCP and other Bank aided rural development
projects nationwide. With a systematical review of the rehabilitation effectiveness on the basis of local
community and farmer consultation, the SA synthesized some potential rehabilitation measures as shown in
the table below, in comparison with other ongoing development programs.
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Table 2
Local Rehabilitation Measures Synthetic Analysis
Identified measures
WB WCP
GEF Project
Local
Reform the evaluation system
of the leaders' performance,
and strengthen their
environment awareness
Establish coordination and
*
*
management mechanism
among the relevant agencies
Formulate and implement

Formulate plans for integrated
plans for integrated
management of water resource and
management of water
environment
resource and environment
Scheme of integrated
*
management of surface water
Scheme of well irrigation
management with quota of
*
well amount and water
volume
Improve or establish and operate
monitoring system for underground
water
Improve or establish and operate
monitoring system for surface water
Integrated management and control
of underground water exploration
Prevention of agric. Pollution
Management of water use right and
admission of digging well
Formulate necessary local
*
*
regulations and water rights
systems
Raise relevant agencies'
Capacity building of water resource
abilities of administrative
and environment management
guidance and technical service
Improve the techniques and
Engineering work for polluted water
equipment of enterprises to
re-collection and re-use
save water and treat pollution
Improve engineering works of Underground pipe
Works and devices to prevent
irrigation systems
project, drip irrigation
leakage
Establish or improve irrigation Water Users'
Organise WUAs
management system
Associations
Adjust cropping pattern and
Agronomic measures
Water saving techniques
Convert unarable
adopt water saving techniques (plastic film, returning
farmland to
straw to filed, etc.)
forestry
Convert cultivation to
Integrated
forestry, prevention of erosion
watershed
management
Note: * mark means that activities would be included in this area.
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To undertake these rehabilitation measures, the SA stressed a bottom-up approach to the Project design and
implementation. For the Project objectives, it was obvious that there would not be a sustainable use of the
water resources unless the users wanted to do so; and there would not be a sustainable socio-economic
development unless its beneficiaries participated in the development process with a sense of ownership. For
this purpose, the SA recommended the piloting of the community-driven development (CDD) approach as a
good way to achieve a win-win situation of both natural resource management and local socio-economic
growth in the Project context.
The primary objective of the CDD approach to be adopted would be to enhance the capacities of
communities (especially the poor) to implement development programs of their own choice while improving
their access to social and productive services, resources and infrastructure. Through household interviews,
focus group meetings and stakeholder workshops on various levels, both the Project and local people
confirmed to each other the significant roles of community participation and empowerment in improvement
of the local situation. The SA actually did a pre-survey and information dissemination for some CDD pilots
under the Project's demonstration project of water resources management and water right management; and
particularly highlighted the commitment and capacity building of community participation in these
programs at current stage, especially for those poor and vulnerable groups. Following the SA survey and
analysis, the Project will prepare and plan for the CDD adaptation to the demonstration pilot sites in the
following aspects:
·
Understanding of the objectives of the CDD exercise in the Project context (links to intended social
and economic development outcomes and impacts of the Project), the needs and meanings of
incorporation of CDD into the demonstration projects, from both the perspectives of local
communities and the Project design/management;
·
Investigation of the pilot's situations of water crisis, local socio-economic conditions, natural
resources, demographic information, social diversity and gender, important contingencies, and legal,
regulatory and policy environment; identification of stakeholders and analysis of their behavior and
roles in relation with the Project/CDD activities;
·
Institutional capacity assurance and capacity building for the CDD approach (from the village to
county levels); creation of enabling environment for stakeholder participation (with different gender
roles); technical training framework on community level;
·
Community mobilization and involvement through PRA (participatory rural appraisal), including
community members in all social strata and especially those in the poor and vulnerable groups;
farmers' commitment and capacity building (including training programs and leaning by doing),
participation mechanism establishment;
·
Community/village (or in a township scope if preferred) development plan ­ its contents and drawing
procedures based on the PRA outcomes; combination of water resource management with community
socio-economic development action plan ­ to be made with a bottom-up approach involving and
ensuring communities themselves in all aspects of the development activities' design, financing,
management, implementation, monitoring and evaluation;
·
CDD budget estimation, implementation tactic framework and timetable;
·
CDD participatory monitoring and evaluation mechanism; clear accountability (to local
people/farmers and authorities) and aligned incentives through transparent and flexible processes;
and
·
CDD outcomes expected.
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In the SA exercise, CDD was thus determined to be an effective means to either achieve Project goals or
avoid/minimize potential social and cultural risks, though there still is a good deal of work necessary to
prepare and implement a successful CDD demonstration pilot in its adaptation to a Chinese society where
there was no previous experience of this kind. More trainings in this regard was proposed as well.
Moreover, because of the SA was a reiterative process during the Project life cycle, it also set forth the
monitoring and evaluation indicators for future assessment of the CDD participatory nature in particular
and the Project achievements in general.
On the whole, as an integrated method to incorporate participation and social analysis into Project design
and implementation work, the SA helped to ensure the Project social development objectives were well set
and the proposed means to achieve them were appropriate, in light that this Project proved to be eagerly
expected and strongly supported by local communities and farmers as its primary beneficiaies. As an
integral part of its overall strategic objectives, this Project was set to demonstrate a win-win achievement of
both sustainable use of water resources through the integrated water and environment management, and
sustained community livelihood development via local institutional and participatory capacity building.
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