PROJ ECT INFORMATION DOCUMENT (PID)
CONCEPT STAGE
Report No.: AB354
Project Name
Livestock Waste Management in East Asia
Region
EAST ASIA AND PACIFIC
Sector
Animal production (100%)
Public Disclosure Authorized
Project ID
P079610
Recipients
CHINA, THAILAND, VIETNAM
Implementing Agencies
CHINA-
Ministry of Finance
3 San Li He Lu, Beijing 100820, P. R. China
Tel:+86-10-68553102;
THAILAND-
Ministry of Agriculture and Cooperatives, Department of Livestock
Development
Phaya Thai Road, Bangkok 10400, Thailand
Tel: +66-2-6534486;
VIETNAM-
Ministry of Natural Resources and Environment, Department of Environment
83 Nguyen Chi Thanh Street, Ha Noi, Vietnam
Public Disclosure Authorized
Tel. 844-7734245
Environment Category
[ ] A [x] B [ ] C [ ] FI [] TBD (to be determined)
Date PID Prepared
November 4, 2003
Estimated Date of Appraisal
December 30, 2004
Authorization
Estimated Date of Board
May 1, 2005
Approval


1. Key development issues and rationale for Bank involvement
The South China Sea is a locally, regionally and globally significant body of water that is surrounded by countries
that are experiencing rapid population and economic growth. This bio-geographic region is one of the world's most
biologically diverse shallow-water marine areas. However, this biological richness is seriously threatened by
Public Disclosure Authorized
environmental problems, in particular land-based anthropogenic pollution.
A major source of land-based pollution is intensive livestock production. The region is the World's most important
livestock production area. It is particularly dominant in the pig sector, the largest livestock-based source of water
(and other) pollution. China, Vietnam, and Thailand accounted for about half of all pigs in the world in 2001. This
share is rising. Roughly 80 percent of the total production increase stems from intensive forms of livestock
production, the vast majority of which is located around the major urban centers close to the coastal regions of the
(East and) South China Sea. Considering that a large proportion of the nutrients contained in feed are not retained in
the animal's body but excreted in urine and manure, the result is an excessive concentration of nitrogen (N) and
phosphorus (P) compounds in the periphery of the urban areas, which results in significant water, land, and air
pollution. A World Bank analysis for the coastal regions of Central South, South-west, and East China showed that
the Chemical Oxygen Demand (COD) from untreated piggery waste alone accounted for about 28 percent of the
current urban plus-industrial COD loads already in 1996. However, this share is estimated to rise to 90 percent in
2010.
The CAS's of China, Thailand, and Vietnam all reflect the need for rapid economic growth that
is environmentally sustainable. All three countries have recognized the detrimental
Public Disclosure Authorized
environmental impact of rapidly increasing intensive production of livestock and have begun to
develop appropriate regulations and other measures. However, these measures are not sufficient
and, where they exist, they are far from effective due to serious implementation problems. While
capacity differs considerably, all three countries have yet to realize effective institutional and

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technical capacity for environmentally sustainable livestock production. The proposed project
would significantly improve the countries' capacity to address livestock-based pollution and
provide the countries with international good practice and regional experience. FAO/LEAD,
CIDA, and ADB have all provided technical assistance or other support for methods of
livestock-based pollution abatement in the region. GEF is supporting several similar projects that
address livestock-related pollution in Eastern Europe. The results and lessons learned of these
projects will directly feed into or complement the proposed projected.

2. Proposed
objective(s)
The project's development objective is to demonstrate replicable and sustainable livestock waste management
approaches that will protect and improve the local and global environment while enhancing livelihoods, particularly
in public health. The environmental benefits of the project would be most immediate for the local environment in the
demonstration watersheds of the Livestock Waste Environmental Impact Mitigation Component. In addition,
through replication of these demonstration sites as well as through the Institutional Development Component and
Project Monitoring the project would lead to positive environmental impacts both at the local levels and for the
South China Sea. While the main environmental benefit of the project would come from reduced pollution of
surface water draining into the South China Sea, other local and global benefits would occur in the areas of
biodiversity, land degradation, and climate change.

3. Preliminary
description
The proposed project would be implemented through separate arrangements in each of the three Participating
Countries, thus ensuring strong country ownership under very different institutional settings and livestock-based
pollution problems. In order to make full use of international and regional knowledge and experience, to exploit
cross-country learning experiences and other synergies such as cost-savings for the development of policy tools a
fourth, regional coordination and support part would be established. The proposed project consists of the following
three components:
The outcome of the Institutional Development Component would be a conducive policy framework for livestock
waste management with strengthened and better-enforced regulations, more effective institutions and financial
incentives. The project would finance activities for the development of policies and decision-support tools (draft
regulations, planning, guidelines, standards, use surveys and GIS techniques, etc.) as well as capacity-building,
awareness-raising, and enforcement of policies and regulations through training of central and local officials and
farmers, institutional cooperation, and a communication program.
The Livestock Waste Environmental Impact Mitigation Component would result in demonstration watersheds with
improved livestock waste management with improved nutrient-balances. In each country it would be implemented
in one or two watersheds that drain into the South China Sea. Sub-components would include area-wide planning
with GIS techniques, surveys and registration procedures, and the actual physical demonstration sites of improved
waste management both, for large number of small producers (`non-point source pollution') and for selected large
farms (`point source pollutions').
The outcome of the Project Management and Monitoring Component would be efficient project management and
information on livestock-induced environmental changes and their underlying causes. This component includes a
Project Management Sub-component with work done in the project management units and the training and
equipment needed for efficient project management. A second sub-component includes the monitoring of the
project, including implementation progress monitoring, monitoring of water pollution and other environmental
indicators, nutrient-balances and other project aspects, e.g. rate of compliance with environmental regulations, and
the monitoring and evaluation of the specific demonstration sites.
The outcome of the Regional Support and Coordination Component would be efficient sharing of knowledge and
experiences amongst all countries. The component would include regional workshops, develop of mechanisms for
informal collaboration amongst countries, and the development of policy and decision tools. Each participating
country is at a different stage of livestock development, thus sharing of experiences can lead to significant
mitigation of livestock waste during the development process. Capacity building at the regional level to address this

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problem and similar problems would be improved by this component. This component might be implemented by
FAO/LEAD, which has a comparative advantage in its technical expertise and previous work in this area in the
region.
Implementation Arrangements. This project is a joint World Bank and FAO/LEAD (Livestock, Environment and
Development) initiative. FAO/LEAD has already done provided substantial technical assistance to all three
countries. It will play a key role in assisting the Participating Countries in the project preparation process and
execute the PDF-B preparation grant. It is also foreseen that FAO will be the responsible agency for the coordinating
and support part of the project. The in-country implementation will require strong inter-agency cooperation, in
particular between the relevant agencies for agriculture and environment. The proposed project seeks to build
extensive partnerships both, (i) at the country level such as with (i a) the proposed IBRD-financed Guangdong Pearl
River Delta Urban Environment Project in Guangdong Province of China, (i b) the proposed IDA-financed Rural
Water and Sanitation Project in Vietnam, and (i c) with the private sector, and (ii) at the regional level with (ii a) the
UNEP/GEF Coordinating Unit of the `Reversing Environmental Degradation Trends in the South China Sea and
Gulf of Thailand` Project, (ii b) the IMO/UNDP `Building Partnerships for the Environmental Protection and
Management of the East Asian Seas Project', (ii c) the Global Programme of Action (GPA) for the Protection of the
Marine Environment from Land-Based Activities, and (ii d) the Mekong River Basin Authority.

4. Safeguard policies that might apply
The safeguard on Environmental Assessment (OP/BP 4.01) applies. An EA will be undertaken to analyze the
environmental risks and benefits of the project and develop procedures for site-specific environmental screening and
analysis. In addition, the safeguard on Involuntary Resettlement (OP/BP 4.12) will is triggered. For instance, no
appropriate land that is owned by the community might be available for communal-level waste storage or treatment
facilities supported by the project. Therefore, country-specific resettlement action policy frameworks and, for those
specific investments that are already identified at appraisal, site-specific resettlement plans will be developed as part
of the social assessment work. The applicability of other safeguard policies such as Indigenous Peoples (OP 4.20)
and, possibly, Natural Habitats (OP 4.04) need to be assessed during the preparation process. It is proposed that an
Environmental Specialist will be contracted under the PDF-B funds to work with the local team and ensure and that
it covers the regional aspect adequately in the EIA, and that other safeguards are adequately assessed and addressed.
A Bank Safeguard specialist will support and guide the work of the consultant.

5. Tentative
financing
Source:
($m.)
BORROWER/RECEPIENT 12.0
GLOBAL ENVIRONMENT FACILITY
7.0
FOREIGN MULTILATERAL INSTITUTIONS (UNIDENTIFIED)
0.5

Total 19.5

6. Contact
point
Contact: Achim Fock
Title: Senior Economist
Tel: (202) 473-9974
Fax: (202) 522-1675
Email: afock@worldbank.org

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