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China: Meizhou Bay Navigation Improvement Project

ENVIRONMENTAL ASSESSMENT

Executive Summary

Meizhou Bay Harbor Administration Bureau

Fujian Provincial Environmental Science Institute

SEPTEMBER 2012

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E4016 V2

TABLE OF CONTENTS1. PROJECT INTRODUCTION............................................................................................................................ 1

2. PROJECT REGULATORY AND LEGAL FRAMEWORK...................................................................................5

SAFEGUARD POLICIES........................................................................................................................................... 5

3. ANALYSIS OF ALTERNATIVES...................................................................................................................... 8

3.1 WITH/WITHOUT PROJECT...............................................................................................................................83.2 CHANNEL ALIGNMENT AND DEPTH...................................................................................................................83.3 DREDGING/ROCK BLASTING TECHNIQUES AND EQUIPMENT..............................................................................83.4 MANAGEMENT OF DREDGED MATERIAL AND BLASTING SPOIL...........................................................................9

4. ENVIRONMENTAL BASELINES................................................................................................................... 10

4.1 OVERVIEW OF REGIONAL ENVIRONMENT.........................................................................................................104.2 PHYSICAL ENVIRONMENT...............................................................................................................................134.3 AMBIENT ENVIRONMENTAL QUALITY..............................................................................................................154.4 SOCIO-ECONOMIC CONDITIONS........................................................................................................................15

5. ASSESSMENT OF IMPACTS AND MITIGATION MEASURES.......................................................................17

5.1 IMPACTS DURING CONSTRUCTION STAGE.........................................................................................................175.1.1 Impacts on Marine Ecology......................................................................................................................175.1.2 Impacts on Aquaculture Farms...............................................................................................................205.1.3 Impacts on Sensitive Ecological Protection Area..................................................................................205.1.4 Impacts on Infrastructures......................................................................................................................215.1.5 Wastes from Construction Ships..............................................................................................................215.1.6 Impacts on Navigation..............................................................................................................................225.1.7 Social Impacts............................................................................................................................................22

5.2 IMPACTS DURING OPERATION STAGE..............................................................................................................235.2.1 Flow, Marine Erosion and Sedimentation..............................................................................................235.2.2 Waste Management...................................................................................................................................235.2.3 Navigation Safety.......................................................................................................................................245.2.4 Cumulative Impacts...................................................................................................................................24

5.3 SUMMARY OF MITIGATION MEASURES............................................................................................................25

6. PUBLIC CONSULTATION AND DISCLOSURE.......................................................................................... - 37 -

7. ENVIRONMENTAL MANAGEMENT PLAN (EMP).................................................................................... - 38 -

1.1 ROLES AND RESPONSIBILITIES......................................................................................................................- 38 -1.2 MONITORING PROCEDURES AND CRITERIA.............................................................ERROR! BOOKMARK NOT DEFINED.8.3 MANAGEMENT PLANS.................................................................................................................................. - 39 -

8. EMP BUDGET........................................................................................................................................... - 40 -

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1. PROJECT INTRODUCTION

This document summarizes the social and environmental impact assessment (EIA) process of the Fujian Meizhou Bay Navigation Improvement Project (hereafter, the Project), which is located in the middle of the coastline of Fujian Province in Southeast China between the main port areas of Fuzhou and Xiamen (see Figure 1).

The Project is Phase III of a three-phased navigation channel improvement program, which include navigation channel dredging and dredged material disposal. According to both Chinese Environmental Assessment laws and regulations and the World Bank’s Operational Policy 4.01 Environmental Assessment, the proposed project is Category A for environmental assessment purposes, due to the scale and significance of potential environmental and social impacts.

Based on safeguards screening, the following safeguards policies are triggered: 1) OP4.01 Environmental Assessment; 2) OP4.10 Natural Habitats; 3) OP4.12 Involuntary Resettlement. Therefore, a full environmental impact assessment (EIA), a stand-alone environmental management plan (EMP), and a Resettlement Action Plan have been prepared and found in compliance with World Bank safeguards policies. This Executive Summary is based on these reports, as well as feasibility studies, design and relevant surveys carried out for the project.

In summary, the EIA has thoroughly assessed potential environmental and social impacts related to navigation channel dredging, rock clearing, dredged material disposal in backfilling areas and ocean disposal site, risk assessment and emergency plan, as well as cumulative impacts in the Meizhou Bay area. Adequate mitigation measures have been developed in the EMP to avoid, minimize, mitigate or offset the social and environmental impacts.

As concluded from these documents, the Project: (i) incorporated effective analysis of alternatives and engineering measures to maximize project benefits and minimize negative impacts that would have occurred; (ii) will not adversely affect or convert critical natural habitats; (ii) will not adversely affect resources of high cultural value; (iii) will not adversely affect ethnic minorities; (iv) will have minimized the need for resettlement and will provide adequate and just compensation and income restoration for affected peoples; and (v) includes management plans for addressing environmental and social issues during construction and operation of the project.

Project Description

The World Bank will finance the dredging of the main navigation channel of Meizhou Bay, which is designated as Stage 2 of Phase III Meizhou Bay channel improvement program. The Project owner, Meizhou Bay Harbor Administration Bureau (MBHAB), will carry out dredging of several branch channels and anchorage/crossing zones ahead of the main channel through domestic financing, which is designated as Stage 1 of the Phase III. The dredged materials from both Stage 1 and 2 will be placed in a permitted ocean dumping site outside the bay; and Xiaocuo and Putou Backfill Area inside the bay where planned port development will reuse the dredged materials for land reclamation. The Project EIA and EMP cover both stages of the Phase III activities. Table 1

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presents engineering details of the Stage 1 and Stage 2 covered by the EIA and EMP. Figure 2 shows the locations of needed dredging/rock clearing, the ocean dumping site and the two back fill areas.

The Project EIA drew extensively on two existing studies, i.e. Strategic Environmental Assessment (SEA) for Meizhou Bay Regional Development Plan and SEA for Meizhou Bay Port (Putian-Quanzhou) Development Master Plan. It is found that the development of Meizhou Bay has taken into account the Integrated Coastal Management (ICM) framework, which has been proven a successful tool to mitigate cumulative impacts as demonstrated in the Xiamen Port of Fujian Province since mid 1990’s. The Project EIA and EMP have incorporated and enhanced the key recommendations of the SEAs, notably the ecological compensation measures.

Table 1 Meizhou Bay Navigation Channel Improvement Project –Phase III

Phase III – Stage 2 Main Channel - 300, 000 DWT channel (52.1 km long, 350-500m wide upon

completion)- Two sections totaling 21.5 km need to be dredged

Dredged Materials Disposal - Meizhou Bay Marine Waste-Dumping Site - 6.7 million m3- Xiaocuo Backfill Area - 4 million m3

- Putou Backfill Area – 7.2 million m3

Phase III- Stage-1Removal of Linchi Rock Blasting and removal of sea-bed rock at Linchi areaXiaocuo Channel A 2.0 km long 150,000 DWT navigation channel Putou Channel A 4.9 km long 70,000 DWT navigation channel

Branch channel Dongwu Section

A 6.6km long 50,000 DWT branch channel

Putou North Channel

A 2.9km long 10,000 DWT branch channel

Anchorage/crossing zone Dredging of two anchorage zones and expansion of an existing crossing zone.

Dredged Material Disposal Putou Backfill Area- 25.3 million m3

Figure 1 Project Location and Navigation Channels (source: World Bank)

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Figure 2 Project Location and Navigation Channels

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2. PROJECT REGULATORY AND LEGAL FRAMEWORK

The Project Environmental Assessment (EA) was completed in accordance with Chinese environmental assessment laws/regulations and the World Bank safeguards policies. Compliance with Chinese domestic regulations and World Bank policy requirements are summarized in this chapter.

World Bank Safeguard Policy Requirements

Of the ten safeguards policies, the following are triggered: 1) OP4.01 Environmental Assessment; and 2) OP4.04 Natural Habitats. Compliance with these policies, and the World Bank’s disclosure of information policy, is summarized in Table 2.

Table 2 Compliance with World Bank Safeguards Policies

Safeguard PoliciesTrigger

Actions

Environmental Assessment(OP/BP 4.01)

Yes - Category A project. - Full EIA and EMP have been prepared.- Consultation conducted as part of EIA process

Natural Habitats(OP/BP 4.04)

Yes - Ecological survey conducted as part of EIA- Mitigation measures developed to mitigate impacts- Ecological compensation and habitat offset program

developed in EMPInvoluntary Resettlement (OP/BP 4.12)

Yes - Resettlement is applicable and a Resettlement Action Plan has been prepared.

OP/BP4.36 ForestNo The project will not finance activities that would involve

significant conversion or degradation of critical forest areas or related critical natural habitats as defined under the policy.

OP/BP4.09 Pest Management

No The project will not procure any pesticides nor will an increased use of pesticides result from the project. No action is required under the policy.

OP/BP4.11 Physical Cultural Resources

No Cultural relics have been surveyed during EA, no cultural relics or other physical cultural resources are found. Chance-find procedure will be strictly followed.

OP/BP4.37 Dam Safety No The project area does not include any dams.OP/BP4.10 Indigenous Peoples

No There are no indigenous peoples live in project-located area, no impact on the indigenous peoples.

OP/BP7.50 Projects on International Waterways

NoThe project doesn’t include any international waterways.

OP/BP7.60 Projects in Disputed Areas

NoThe project area does not include any disputed areas.

The World Bank Group Environmental, Health and Safety Guidelines (WBG EHS Guidelines) also apply to the Project. The project Environmental Management Plan includes the mitigation measures that are fully in compliance with the EHS General Guidelines (especially related to Construction management), as these general requirement in the Guidelines is equally required in Chinese laws, regulations, guidelines and construction management norms. As required by the World Bank, the EMP measures are also fully consistent with the dredged material management practice specified in the EHS Guidelines for Ports, Harbor and Terminals, which is illustrated in

Table 3.

Table 3 Compliance with WBG EHS Guidelines for Ports, Harbours and TerminalsIFC Guidelines EIA /EMP Compliance

Dredging should only be conducted if necessary, and based on an assessment of the need for new infrastructure……

Dredging is needed for the improvement of main channel which is justified.

During operation stage, no dredging is envisaged due to advantages of hydrodynamics in Meizhou Bay.

Prior to initiation of dredging activities, materials should be evaluated for their physical, chemical, biological, and engineering properties to inform the evaluation of dredge materials reuse or disposal options.

Dredged material should be analyzed in order to select appropriate disposal options (e.g. land reclamation, open water discharge, or contained disposal).

Sediments were monitored and confirmed to be in conformity with national standards of ocean sediments standards (GB18668-2002). Non hazard is conformed.

Excavation and dredging methods should be selected to minimize suspension of sediments, minimize destruction of benthic habitat, increase the accuracy of the operation,……

Alternative dredging methods were compared based on these considerations, and final selected equipment is the one that meet these requirements.

Areas sensitive for marine life such as feeding, breeding, calving, and spawning areas should be identified.

Ecological baseline survey were conducted which confirmed that there are no such sensitive sites within the dredging impact scope.

Dredging and blasting should be conducted in a manner so as to avoid fish migration or spawning seasons, routes, and grounds

Dredging and blasting is arranged to avoid fish spawning season.

Inspection and monitoring of dredging activities should be conducted to evaluate the effectiveness of impact prevention strategies, and re-adjusted where necessary.

On-site supervision staff will be arranged to monitor the dredging and blasting impact.

Use of lateral containment in open water disposal should be considered. Use of borrow pits or dikes reduces the spread of sediments and effects on benthic organisms.

Use of cap containment sediments with clean materials should be considered

Confined disposal facilities should be used.

Dredged material is reused as backfilling material for land reclamation for berth construction. Enclosure dike is to be built to contain the material, and sedimentation and filtration will be deployed to confine the impact on water and benthic organisms. Concrete capping will eventually be applied as part of dock construction.

Port operators should prepare a spill prevention, control, and countermeasure plan

Risk analysis is an integral part of EIA, which comprehensively analyzed the potential risk of spill and conducted scenario simulations, identified impact scope and sensitive areas to be affected. EIA also described the emergence response measures which include management structure, equipment and response team capacity.

Domestic Laws and Regulations

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The EIA is prepared fully in compliance with China national laws, regulations, guidelines and procedures. Compliance with key Chinese national laws and regulations are summarized in Table 4.

Table 4 Compliance with China Domestic Laws and RegulationsChina Laws and Regulations Project Compliance

Environmental Impact Assessment Law

• Full EA prepared by the certified EIA consultant and Project proponent, reviewed and approved by Fujian Provincial Department of Ocean and Fisheries and Fujian Provincial Environmental Protection Department.

• Two rounds of public participation conducted.Marine Environmental Protection Law

• EA covers dredging, blasting, disposal of dredging materials (both ocean disposal and CDFs), land reclamation, waste management, oil spill risks, ecological protection and compensation, etc.

• Ocean disposal site (Meizhou Bay Marine Waste-Dumping Site) designated by State Ocean Administration

• Oil spill risk emergency response plan prepared• Ecological compensation plan prepared

Notice on Strengthening EIA Management for Construction Projects Funded by Loans from International Financial Institutions

• EIA and EMP are prepared in compliance with World Bank safeguards policies.

Fishery Law • EMP incorporates measures to minimize impacts on fishery resources resulted from underwater blasting and construction. Affected aquaculture will be relocated before construction

Harbor Law • Port development comply with relevant plans• EA covers the disposal of dredged materials for land reclamation

Marine Traffic Safety Law • EA considers safety operation zone for construction activities.Marine Territory Utilization Administrative Method

• EA covers land reclamation using dredged materials• Occupying sea areas have and will be approved by marine authorities.

Administrative Regulations for Marine Pollution Prevention from Marine Engineering

• Land reclamation using dredged materials covered by the EA. No natural spawning ground, breeding ground and feeding ground will be occupied.

• Quality of the dredged/filling material complies with environmental criteria

• EMP incorporates mitigation measures for blastingAdministrative Regulations for Marine Pollution Prevention from Ship Wastes

• Ship wastewater and solid wastes must be received and treated by port facilities.

Administrative Regulations for Marine Waste Disposal and Interim Regulations for Dumping Site

• Ocean disposal site (Meizhou Bay Marine Waste-Dumping Site) has been assigned by State Ocean Administration

• Dredged Material Disposal Plan prepared• Before disposal, approval shall be obtained from marine authorities

Navigation Safety Regulations for Above- and Under Water Activities

• Construction shall start after approved by relevant authorities.

Technical Regulations for Impact Assessment of Construction Projects on Marine Living Resources

• EA assessed impacts on marine living resources resulted in dredging, blasting and disposal of dredged materials

• EA evaluated the economics value of potential losses • An ecological compensation plan covering fish reproduction and

release and habitats protection prepared.

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3. ANALYSIS OF ALTERNATIVES

The EA includes comprehensive alternative analyses, including the following: A “with/without project” scenario, Variations in the navigation channel alignment Alternative dredging techniques and equipment, , and Management of dredged materials and blasting spoils.

3.1 With/Without Project

Economic, environmental and social benefits associated with the Project are myriad compared to a “without project” alternative. At a regional level, the Meizhou Bay development will help reduce the average land transport distance between seaports and the hinterland. Compared to the nearest alternative ports, the Meizhou Bay provides significant potential distance saving to and from major hinterland industrial users of these ports. This has obvious economic benefits and environmental benefits related to decreased transportation requirements. The project will help reduce the probability of ship collision accidents due to a widened channel and rock removal, helping to augment navigation safety and minimize environmental accident risks. The project will reduce ship downtime that is currently significant related to navigating the large-size LNG ships, in particular. Most importantly, the project contributes to the country’s overall environmental sustainability objective for coastline development, i.e. through developing prioritized strategic port hubs to avoid widespread degradation of the coastline caused by proliferation of small port development. Resource representatives for the Project will continue to work with and expand efforts described within the Integrated Coastal Management (ICM) process. Thus, the Project would result in environmental impacts that will be avoided, minimized and compensated through measures incorporated into the project design, environmental management plans, and Integrated Coastal Management marine zoning initiatives.

3.2 Channel Alignment and Depth

The channel alignment and depth were carefully selected for environmental, safety, socio-economic and technical considerations. The main channel will follow the existing alignment to minimize dredging requirements. Within the alignment, two specific alternatives were further studied. The proposed alternative was selected to augment navigation safety. For branch channels, the alignment was also selected based on safety concerns, and to minimize dredging and rock blasting. The alternative that requires less dredging is selected when possible.

3.3 Dredging/Rock Blasting Techniques and Equipment

For dredging operations, several techniques and methods have been compared. Key criteria to determine preferred dredging methods and equipment includes: 1) Load capacity; 2) Noise and vibration specifications; 3) Transportation, and 4) Blasting methods. The self-propelled trailing suction hoper with bend-blow functions is selected as the prime dredger to avoid potential sediments spills during transportation and backfill operation. The rock

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blasting operation is to be conducted using underwater borehole millisecond explosion by rock-explosive vessels. Maximum explosive charge volume was carefully studied and determined. As result, the impact scale and area scale can be minimized.

3.4Management of Dredged Material and Blasting Spoil

Internationally, three common management alternatives may be considered for dredged material disposal: open-water disposal (ocean dumping), confined (diked) disposal, and beneficial use. The selection of a preferred alternative for dredged material disposal must be based a number of considerations that include environmental acceptability, technical feasibility and economics.

For the Project, around 43 million m3 dredged materials will be generated from channel improvement. Economic, technical and environmental aspects were analyzed to determine the most effective management of these dredged materials. It was determined that a major part of the dredged materials, about 36.5 million m3, will be reused as filling materials for port expansion at Xiaocuo and Putou inside the bay. The remaining 6.7 million m3 will be placed in a permitted ocean dumping site, the Meizhou Bay Marine Waste-Dumping Site. The former alternative, the placement of dredged materials in confined disposal facilities, has both environmental benefits and negative impacts compared with the latter. Reusing the dredged materials reduces substantial needs for filling materials (for the port development) that may have to be obtained from other sources such as opening new quarries. It also reduces substantial impacts on marine environmental that may be resulted from ocean dumping. Alternatively, the disposal and land reclamation associated with confined disposal facilities would have to occupy coastal areas that would otherwise provide ecological services and livelihood uses. Therefore, sound planning, design, and management are essential if dredged material disposal is to be accomplished with appropriate environmental protection and in an efficient manner. Accordingly, the Project has been developed within the Integrated Coastal Management framework context. These considerations are fully taken into account during the preparation of EA.

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4. ENVIRONMENTAL BASELINES

A comprehensive review of regional marine environmental and dedicated baselines studies were conducted during EA preparation. Coastal Integrated Management initiatives, provincial planning initiatives and local environmental receptors were reviewed in project baseline identification. Overall, the Meizhou Bay enjoys exceptional physical conditions in terms of topography and hydrodynamics, and good sediment and water quality. It presents medium to low sensitivity from a biodiversity perspective due to the physical and ecological conditions, and long history of intensive human activities.

4.1Overview of Regional Environment

Fujian Province has a total sea area of 13.6 million ha, and a land coastline of 3,752 km. The province has 125 bays, 7 of which are suitable for development of up to 50,000t deep water berth. Overall, the ocean fishery and coastal mudflat resources are considered abundant in the province.

Various planning processes have been initiated regionally for effective integrated management of the coastal areas. The cumulative effects section describes integration of project design to meet conceptualized goals as described in the nearby Xiamen Integrated Coastal Management Planning process. Provincially, the Fujian Provincial Marine Environmental Protection Plan (2011-2020) classifies the province’s marine waters into 3 general levels based on an assessment of marine ecological sensitivity and significance of marine ecological services (see Figure 3). The first level includes legally designated protected areas and “important biotope and ecological service area”. The second level refers to marine areas that are under “controlled protection and utilization”. This level requires reasonable development and utilization on a principle that the main ecological services function will not be harmed. The third level “development supervision area” includes those marine areas that can be used for urban, industrial and port development, and ocean disposal. According to the Plan, as is shown in Figure 3, waters within Meizhou Bay have been designated as either level 3 for development (mostly coastal area) and level 2 for controlled protection and utilization (specifically, for navigation and water exchange between inside- and outside- bay). The northern Xinghua Bay is designated as fishery waters. The southern Quanzhou Bay has an important estuary wetland reserve for protection. The Fujian Provincial Ecological Zoning also indicates that the “important marine biotope” in Meizhou Bay is “insensitive”.

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Figure 3 Fujian Marine Environmental Protection Plan (2010-2020) for Meizhou Bay and Quanzhou Bay

The Project also complies with marine functional zoning objectives outlined by the Fujian province. As of 2010, there are 15 marine (special) nature reserves aimed to protect typical ecosystems, habitats for rare species, important wetland, migratory channels, spawning/breeding/feeding grounds and protected areas for important fishery species in the Fujian province. Protected habitats, fauna and flora include estuary coastal wetland, significant mangroves, coral, white dolphin, lancelet, egret, etc. The Planning also designates 27 sea island special nature reserves. These nature reserves are legally designated protected areas.

Of these nature reserves, the nearest one to the Project is Meizhou Island Ecological Nature Reserve (see Figure 3 and Figure 4), which is located to the northeast of the bay mouth and is about 7 km away from the Project construction site. The area of the nature reserve is 9,990ha, including the island and adjacent sea area. The Meizhou Island features coastal sand beach and rocky landscape. A small piece of mangroves (about 20 ha) were found in the west of the island. The mangroves’ development has been subject to limited freshwater feeding. The island holds many fish boats for offshore fishing, while inside the Meizhou Bay fishing is not economic.

The Meizhou Island is a major tourist attraction because it is the home to Mazu (Matsu). Annually some 100,000 pilgrims, mostly from Taiwan, come to the island to visit Heavenly Empress Place – Meizhou Ancestral Temple which commemorates Mazu.

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Figure 4 Marine Functional Zoning - Meizhou Island and Quanzhou Bay Estuary Wetland Reserve

A nature reserve that resides outside of the Project development area, but in relatively close proximity south of the project is the Quanzhou Bay Estuary Wetland Reserve. This reserve features coastal wetland, mangroves, rare and endangered birds, fishes, marine mammals. Meizhou Island is actually less significant component in the integrated coastal context. By contrast, Quanzhou Bay has many species listed or acknowledged in IUCN, Red List and by other international organizations. It is classified as Important Bird Areas (IBA) in China, by Bird Life International, a Non-Governmental Organization (NGO). Quanzhou Bay represents a higher value area for natural habitat compensation program related to the Project. Restitution of mangrove forests will occur in Quanzhou Bay as the key feature of ecological compensation

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for Project impacts on natural habitats. This program is discussed in the EIA and the action plan included in the EMP.

4.2Physical Environment

Overview

Meizhou Bay is located in the middle coastline of Fujian Province in southeast China. The Bay enjoys exceptional physical conditions in terms of topography, geomorphology and geology. In the middle of the Bay there is a natural deep trench with depth up to 52m. Terrestrial topography of the Bay features with low hills on the continent and marine-abrasion cliffs and tableland on small islands. At high tide it has a 187 km indented coastline of mainly sheltered waters. The Meizhou Bay is a typical strong tidal bay that features deep water, forceful tidal current and large tidal range. These physical conditions are particularly favorable for a deep water navigation channel and port development. Low tide level is shown by the blue line in Figure 5 below. The inter-tidal area of the Bay is about 142 km2. The Figure 5 also shows the two backfill areas outlined with yellow line.

Figure 5 Inter-Tidal Zone (Blue Line)

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Meteorology

The region is subject to sub-tropical marine monsoon climate with abundant precipitation and frequent typhoons. The last 21 years have averaged a 4.6 typhoons per year , of which 76% took place during mid-July to mid-September.

Hydrology and Hydrodynamics

The high tide level is about 516 km2 the inter-tidal area is about 142 km2. The average tidal prism is as large as 2.42 billion m3. Such a large tidal prism1 represents significant water exchange between the bay and ocean, and strong assimilation capacity. A critical characteristic of Meizhou Bay is that there is no major river flowing into the Bay. A small Fengci Creek empties into the bay in the northwest (see Figure 6). From an ecological perspective, this means limited fresh water and sediments (which brings nutrients, and potentially pollutants) into the Bay. Therefore, the Meizhou Bay is well known as “a non-silting bay” and has a long history as a busy navigation channel and port area.

Figure 6 Freshwater Inflows - Location of Fengci Creek

Marine Ecology1 Tidal prism is the volume of water between mean high tide and mean low tide, or the volume of water leaving the bay at ebb tide. Tidal prism is critical for the environmental carrying capacity of a bay or estuary.

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A dedicated marine ecosystem study was conducted during EA preparation, covering the entire Meizhou Bay. Extensive Desktop reviews of previous ecological surveys for the bay and at regional level were conducted as well. There are no protected areas, endangered or protected species, coral reef, mangroves or other types of critical habitats identified in the Bay. As noted above, the nearest sensitive area is the Meizhou Island.

The marine ecological survey covers phytoplankton, zooplankton, fry and eggs, benthic organism, fishes and marine mammals in the Bay. 62 species of benthic organisms have been identified in the Bay. 11 species of fry and fish eggs were found and present a distribution pattern that tends to decrease rapidly from the southern part to the northern part of the Bay 29 common fish species and 13 crustaceans (predominantly one species of shrimp) are found. There were no marine mammals found during the surveys. Overall, compared with neighbouring Quanzhou Bay and Xinghua Bay, the Meizhou Bay presents lower ecological values in terms of resource abundance and biodiversity. As result, fishing2 in the bay is not economic. Marine-based traditional livelihoods in the bay include aquaculture of sea weed, oyster, clams and abalone, etc.

4.3Ambient Environmental Quality

During EA preparation, sampling and tests of water, sediments and biological quality were conducted to characterize the physical, chemical and biological conditions of the project area. Results show the water and sediments are uncontaminated and meet the relevant Chinese quality standards. These results are consistent with other environmental quality monitoring previously conducted. Biological quality generally met quality objectives, and air and noise levels are suggestive that the area has an increased industrial base.

4.4 Socio-economic Conditions

Social-economics. The Bay is under the jurisdiction of two municipalities, i.e. Putian in the north and Quanzou in the south. The north part of Meizhou Bay belongs to Xiuyu District and Xianiu County of Putian Municipality. A 2010 statistics shows Putian has a population of 3.2 million, with the GDP amount to RMB81.6 billion. Putian is an important agriculture base in Fujian province, well known for grain, sugarcane and oranges. The south part of Meizhou Bay belongs to the Quangang District and Hui’an County of Quanzhou Municipality. A 2010 statistics shows Quanzhou has a population of 7.9 million, with the GDP amount to RMB356 billion. Quanzhou is a developed industrial base and has been the No. 1 in terms of the GDP size in Fujian province for 12 years.

Port Development. Meizhou Bay is a substantial bulk port, handling nearly 40 million tonnes of freight in 2010, accounting for around 40% of the total goods handled by the five ports under Putian and Quanzhou. Port traffic has increased by 143% from 2004 to 2010. The main commodities handled based on 2010 statistics are crude oil, building materials, coal and oil 2 Fishing refers to catching wild seafood, while Aquaculture refers to cultivation and farming of seafood.

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products as well as ore, grain, timber and others. The bay is fringed with a number of industries that are heavy users of the port such as petrochemicals, power generation, timber processing, grain milling, ship building and ship repairing. According to the Meizhou Bay Port (Putian-Quanzhou) Development Master Plan, by 2030 the Meizhou Bay will be able to handle 76.7% of the total goods handled by the fiver bay ports under Putian and Quanzhou. The concentrated development in Meizhou Bay indicates that the development pressure on the surrounding bays will be lessened relatively.

Bay Area Development . Retaining Meizhou Bay’s emphasis on bulk cargoes, the Master Plan seeks to promote complementary industries including the development of handling, storage and transhipment facilities, logistics services, and other modern harbor-based activities while maintaining the recreational and environmental amenities of the Bay. Road and railway networks connecting Meizhou Bay and the hinterland will also be improved or developed.

Marine Aquaculture. Marine aquaculture in Meizhou Bay includes shallow seas, inter-tidal mudflats for the cultivation of oysters, clams and seaweeds, etc. Cage aquaculture is mainly for abalone that is located in the vicinity of Yangyu, Huiyu and the area between Luoyu and the main channel. Abalone is highly sensitive to water quality and temperature. In hot summer time the abalone cages have to be moved to northern China where cooler sea water is favourable for the growth of abalone. Along with the rapid port facility and industrial development over the years, aquaculture in the Meizhou Bay has been going down. It is anticipated that the livelihood of local people will gradually turn to industries and services associated with the port operation.

Livelihoods. According to RAP, livelihood survey was conducted covering the area potentially affected by the Project, including the areas in the vicinity of navigation channels, Putou and Xiaocuo. It is found that in the year of 2010 and 2011, the main income source of the potentially affected people was from businesses outside the Project area, accounting for 48% of their total income, while offshore (outside the bay) fishing and aquaculture only account for 8.5% ~18% of their total income. Based on the surveys, local livelihoods are not dependent on natural resources.

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5. ASSESSMENT OF IMPACTS AND MITIGATION MEASURES

The Project is a co-ordinated regional development that is anticipated to result in significant benefits in environmental management, and navigation capacity and safety. The Project will also cause direct and indirect impacts to the socio-economic and natural environments. Efforts to minimize and/or mitigate anticipated adverse impacts are outlined in the project EMP and RAP. Key impacts assessed are associated with the dredging/rock blasting and disposal of dredged materials on marine ecology, sea water quality, aquaculture, and hydrodynamics conditions.

The EA and RAP include due diligence of the environmental and social management of previous Meizhou Bay Phase I and II of navigation improvement, and constructed berths in Putou and Xiaocuo. It is confirmed that the previous construction is in compliance with Chinese environmental regulations and no major legacy or outstanding environmental or social issues have been identified.

5.1Impacts during Construction Stage

5.1.1 Impacts on Marine Ecology

The main construction activities include navigation channel dredging/rock blasting, transportation and disposal of dredged materials at two backfill areas and the Meizhou Bay Marine Waste-Dumping Site. Based on the environmental impacts scoping and screening, the key impacts on marine ecology during construction stage include:

(1) Dredging will damage the benthic organisms at the dredged section;(2) Dredging will cause turbidity of sea water which will have impact on marine life;(3) Rock blasting wave will have negative impacts on marine life;(4) Backfilling the dredged materials (land reclamation) at Xiaocuo and Putou Backfill

Area will cause loss of coastal wetland, and its ecosystem service function for aquaculture cultivation.

(5) Ocean dumping of dredged materials will have impacts on benthic organisms and water quality.

These impacts have been thoroughly assessed in this EIA. In summary, it can be concluded that the impacts associated with dredging/blasting and ocean dumping are of temporary nature and manageable. The habitats loss can be recovered in a period of time. In terms of the backfilling, it will result in permanent loss of around 400 ha coastal wetland (including inter-tidal zone and permanent shallow sea area). Compared with the overall 142 km2 inter-tidal zone in the context of Meizhou Bay, the loss is minor. With proper mitigation measures and ecological compensation (offset) measures, these impacts can be minimized and mitigated to acceptable level.

Dredging

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Dredging exerts direct impact on benthic organisms within dredging range and immediate vicinity area which will be damaged or destroyed. Based on the ecological baseline survey conducted during the EA, the richness of the benthic organisms in Meizhou Bay is of low level, with an average biomass of 6.896g/m2. A comparison study in the SEA study also shows that the average biomass of benthic organisms at Meizhou Bay is significantly lower than Quanzhou Bay and Xinghua Bay. It is estimated that the direct loss quantity of benthic organisms will be about 81.43 t. The total dredged area of both stages is about 10.88km2. This is about 2% of the total Meizhou Bay area. Furthermore, according to historical data, the loss of benthic organism in the dredged area will gradually restore to the previous level in 2 years. Therefore, the impact on dredging will not significantly convert or degrade the natural habitat for benthic organisms in the Meizhou Bay. The impact is of temporary nature and will be fully recovered in relatively short time period.

Dredging will also cause suspended sediments to increase water turbidity and have potential impacts on planktons, fish eggs and fry. Modeling was conducted to assess the scope of such impacts and estimate the loss of marine living resources. It is concluded that the dredging operation will cause increase water turbidity limited to the vicinity of dredging areas which is small scale in the whole Meizhou bay context. This temporary impact is of limited and temporary nature, and will not significantly degrade or convert natural habitats of the channel area. With adequate mitigation measures for dredging operation and fish resources compensation plan, such impacts can be effective mitigated.

Rock Blasting

Rock blasting will create impulse waves which will have negative impact on marine lives. Blast waves from under-water explosion usually spread forward right through fish body since fish body and water have similar density. However, when air cavities exist in fish body, blast waves getting through will result in the avulsion or fragmentation of cavity walls due to air condensability. The main reason for death of fish is that explosion causes fish bladders to burst (in terms of fish with air bladders). In addition to fish bladders, other inner organs are also easily damaged. The longer distance from the explosion site, the smaller impact of explosion on fish will be brought. Fish without air bladders have much greater chance of survival under the same conditions. Large mammal and fish, e.g. cetaceans, seals and fish are all at risk from the effects of underwater blasts, which can cause sub-lethal injuries due to pressure or shock waves rupturing tissues. The EIA assessed the various explosive load options based on actual experiences and guidelines, and estimated the loss of nektonic organisms of 149t at an optimum max. load of 100kg explosive charge over three years period. While, nektonic organisms usually possess strong capability of migration, the project construction will result in the temporary migration of nektonic organisms to other sea areas. After the project construction is completed and the marine environment of the project area basically stabilize can the nektonic organisms be moved back to the project area and neighboring areas. Therefore, the actual loss quantity of nektonic organisms will be less than estimated.

During blasting operation, a number of measures will be adopted to minimize the impact on marine life. These include strict control of explosive load, small-load prior blasting to drive away

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fish, run noisy equipment (drilling machine or air compressor) to drive away fish before blasting, avoid end of spring and early summer time to minimize the impacts on spawning, deploy large fish monitoring program around 2000m perimeter of blasting and establish first aid system for large fish etc. With effective implementation of these measures, the potential impact on marine life will be effectively minimized and mitigated.

Ocean Dumping of Dredged Material

Part of the dredged material from outer bay area will be disposed of in an ocean dump area – Meizhou Bay Marine Waste-Dumping Site, permitted by the State Oceanic Administration. Physical and chemical analysis shows the dredged materials in Meizhou Bay are clean, uncontaminated, and is categorized as Clean (Class I) dredged materials. With proper dumping frequency and other management measures implemented, the dumping will not result in significant negative impacts on water quality. During dumping, suspended solids concentration will increase within the dumping site. However, the impacted area is limited. Since the dumping will conducted in an intermittent and temporary manner, the suspended solids concentration will recover to baseline value in a short period of time upon completion of the dumping.

Hydrodynamics modeling result show the impact zone of the dumping suspended sediments is about 6.3 km southward and 4.7 km northward. The impact zone is far away from nearest sensitive areas such as Meizhou Island reserve, Dahu Bay and Dagang Bay aquaculture area. These sensitive areas won’t be impacted by the dumping operation.

During ocean disposal operation, mitigation measures will be implemented, including strictly follow the maximum annual and daily dumping limit (max. 4 million m3/a and 226,800 m3/day, respectively), monitoring and supervision, dumping at ebb tide period to the extent possible, etc.

Backfilling

About 36.5 million m3 dredged material will be placed in Poutou Backfil Area (32.5 million m3) and Xiaocuo Backfill Area (4 million m3) respectively. The two backfill areas are mainly inter-tidal zone (see Figure 5). On one hand, by reusing the dredged materials rather than directly dumping into ocean or opening new disposal site, this disposal option substantially reduces materials needs for filling materials that would otherwise needed for port development from other sources, thus reducing substantial impacts results of ocean dumping and the potential environmental concerns from materials exploitation. On the other hand, the backfill will permanently occupy the inter-tidal zone which provides important ecological services and livelihood uses.

The total area of two backfill area is 406ha, about 2.9% of intertidal zone of Meizhou Bay. Ecological survey concluded that the inter-tidal zone in Meizhou Bay has been intensively modified by aquaculture farm activities, rather than habitats for natural species. The

19

reclamation of Putou and Xiaocuo area would not result in significant degradation or conversion of natural habitat in the context of whole Meizhou Bay area.

Backfill disposal of dredged material will also have the potential to impact water quality around the discharge outlet of the enclosure dike. According to estimation, the impact range of suspended sediments is widest at ebb tide. The area where concentration of suspended sediments exceeds the limitation of 10mg/L (a threshold of significant impacts on marine live) is at the discharge outlets to extend 100m long and 20m wide in tidal direction. The impact is short-term and will not significantly impact water quality and marine ecology. With proper construction of enclosure dike and filtration layer, sedimentation prior to discharge, and proper runoff control measures, such impact can effectively minimized.

5.1.2 Impacts on Aquaculture Farms

Dedging and blasting will cause suspended sediment and impulse wave that may affect about 7.29km2 aquaculture farm areas. The backfilling in the two disposal areas will also affect 150 ha aquaculture farm areas based on field surveys conducted during project preparation. Site specific impacts assessment and mitigation measures are presented in Table 8. These aqua farms are mainly for seaweed, oysters, clams and abalone. These aquaculture activities are seasonal. In order to avoid such impacts, dredging and rock blasting activities will be scheduled to avoid aquaculture operation period to the extent possible. If not avoidable, survey and consultation with aquaculture owners will be conducted prior to construction to identify actual impacted aquaculture and agree on temporary relocation and economic compensation. For the permanently lost aquaculture area, the local government will allocate new cultivation area based on marine economic growth planning to ensure the restoration of the normal operation of local aqua farms, as spelled out in the RAP. Therefore, it can be concluded that the impacts on the aqua farms and livelihoods of affected people can be adequately mitigated and compensated in line with national and World Bank policy requirements.

5.1.3 Impacts on Sensitive Ecological Protection Area

Based on ecological baseline survey, there is only one ecological protection site in the vicinity of project area, i.e. Meizhou Island, which is located to the southeast of Meizhou Bay. The island is mainly a national tourism destination famous for the Temple of Matsu, a sea goddess. It was designated as an ecological protection area in 2005, with main protection objective of the marine abrasion topography, the island, beach, and a piece of mangrove (20ha) and freshwater ecosystem. The protection area boundary is more than 7 km away from the Phase III channels, even farer from the backfill areas. The water quality impact simulation and marine life impact analysis in previous sections has confirmed that the dredging, blasting and backfilling will have no impact on the ecological sensitivity of the Meizhou Island during the project construction stage.

5.1.4 Impacts on Infrastructures

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Water Intake Facilities

There are three water intakes for the industrial enterprises around the bay, with distance of min. 1.5km from the dredging/rock blasting areas. According to the modeling of dredging and blasting impacts, the scope of suspended sediments concentration exceeding applicable Class II water quality standard will not reach water intakes of any water intake in the Meizhou Bay. Therefore, suspended sediments increment caused by construction has little impact on the quality of inlet water of these enterprises.

LNG Pipeline

The Putou branch channel will cross the seabed LNG pipeline. There is no dredging or blasting needed in the vicinity of the pipeline section, however, there is potential risk of mistaken anchorage or other operation activities that may damage the pipeline. To address such risks, during the project implementation, the project owner will consult with the pipeline owner Fujian Natural Gas Co., Ltd, prior to operation, and strengthen the specific location survey before dredging/blasting in the vicinity of the LNG pipeline. Warning buoys will be placed along the LNG pipeline to guide the dredging operation to avoid the safety risk. With these precautions, such risk can be avoided.

Oil Pipeline

There is an oil pipeline virtually parallel with part of the main channel, with a min. distance of 500m. There is no crossing between the oil pipeline and the channel. The nearest distance between the Linchi rock blasting areas and the oil pipeline is about 570m. Given the far distance and its well buried under the sea bed, it can be concluded that channel dredging and rock blasting will have no impact on the submarine oil pipeline. Warning buoys will be placed along the oil pipeline to guide the dredging and rock blasting operation in order to avoid any safety risk. Emergency plan is in place.

Structures and Docks

Rock blasting will have potential adverse impact on other buildings and docks. According to technical guidelines, safety distance of blasting was calculated and concluded that the blasting impacts on buildings is limited within 45m. No buildings and dock facilities are around the vicinity of blasting area, therefore, such impact is little.

5.1.5 Wastes from Construction Ships

During dredging and rock blasting operation, there will be small amount of wastewater and solid waste generated from the operation ships, which may have adverse impact on the water quality and ecological environment of the Bay. According to Management Regulations on Preventing Vessels from Polluting Marine Environment, Fujian Marine Environmental Protection Regulations and other relevant laws and regulations, construction vessels must be equipped with oily soil storage cabins (or containers) and for oil polluted water to be

21

received and disposed by receiving organizations authorized by maritime authorities. And discharge of oil-polluted water to the harbor area is prohibited. By unloading the wastewater and solid waste to the central treatment facility in the port, the impact of construction ship waste can be adequately mitigated.

5.1.6 Impacts on Navigation

Dredging and blasting will have disturbance on the normal navigation of the channel, with potential risk of collision and spills. To mitigate such risk, security watch will be deployed during underwater blasting operation. Restricted area will be established, all vessels and personnel are forbidden to enter the restricted area. Prior notification will be made in advance to vessels to avoid the area, in particular, the safety of construction personnel, vessels berthed at the harbor area and vessels passing by neighboring docks and channels. The notice will specify the construction period, area and scope, and the relevant precautions in detail, and the local maritime bureau will release information on blasting time, navigation hours and entry/exit arrangements on its website on a daily basis.

5.1.7 Social Impacts

Key social impacts are mainly disturbance to aquaculture in the vicinity of dredging and blasting operations and backfilling area.

Following World Bank safeguards policy OP4.12, detailed survey of land acquisition and resettlement, consultation with project-affected people were conducted during project preparation. An overall Resettlement Plan (RP) and a separate RP for Putou Backfill Area were developed. The overall RP consists of a resettlement planning for the direct resettlement impact by the Project and a due diligence review of the implemented resettlement in Phases I & II and in Xiaocuo and Putou.

The Project will not cause relocation of any households, and the direct resettlement impact will be minor. The Project will possibly acquire some shallow sea area (in the vicinity of dredged navigation channel) where there is a fish farm on which a household relies. Xiaocuo and Putou operation areas will also require shallow sea (mainly inter-tidal area, as noted above) acquisition. In the Putou operation area, 7,774 mu (518 ha) will be acquired, which will have an impact on the livelihoods of 8,725 persons. Resettlement already completed in Phases I & II and in the two operation areas involved 2,417 mu (161 ha) of shallow sea area, which impacted 100 households (388 villagers). A due diligence review confirmed that the completed resettlement complied with the provincial and city regulations and is included in the RP.

A grievance procedure from village to provincial government was designed as part of the RP. Arrangements on resettlement institution, capacity building, monitoring and reporting are also covered in the RP.

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Gender issue was in-depth analyzed in the project social documents from various angles such as education, employment, decision making, rights and interests, and further developed specific protection measures for women in livelihood restoration process through gender balance participation.

According to the consultation with the municipal ocean and fishery bureau, some fishermen in the project area have fishing licenses and fishing boats. However, there is virtually no fishing activity within the bay area due to economic reasons and decades of navigation history of Meizhou Bay, all nearby fishermen are well aware that fishing is not allowed in the channel for the sake of safety reason. Field survey concluded that the fishing is only conducted off the Bay area for economic reasons. Therefore, the Project has little impact on fishing activities.

5.2Impacts during Operation Stage

5.2.1 Flow, Marine Erosion and Sedimentation

These Project will impact marine hydrodynamics conditions, erosion and sedimentation processes. Modelling analysis was conducted which concludes that after the channel dredging, no obvious change of flow pattern characteristics occurs throughout the bay and there is no big change in flow field characteristics. The sedimentation intensity following project implementation is low except that of the dredging area. The water body of Meizhou Bay features low sediment concentration and limited sediment sources. Its sedimentation intensity tends to weaken gradually and reach a new balance following a period of readjustment and adaptation. There is no regular maintenance dredging envisaged for Meizhou Bay navigation channels.

5.2.2 Waste Management

The waste water, oil-containing ballast water and solid waste from the ships, if not well managed, may pose a potential pollution that is harmful to the marine environment and ecology. Such impacts are strictly regulated by both national and international regulations. A number of national regulations, e.g. Management Regulations on Preventing Vessels from Polluting Marine Environment, Fujian Marine Environmental Protection Regulations and other relevant laws and regulations, strictly require that wastewater and solid waste are forbidden to be discharged into the coastal sea area. These wastes must be unloaded to the waste treatment facilities in the port for treatment. Therefore, with sound enforcement of waste management regulations, the potential impacts of ship wastes can be properly mitigated.

5.2.3 Navigation Safety

During operation stage, safety is the most important thing for the normal operation of Meizhou Bay ports. There are various ships navigating in the channels, including LNG carrier, oil tankers and other vessels that may carry dangerous or hazardous materials.

23

Therefore, navigation safety is a paramount priority for MBHAB. It is also an important concern for the marine ecological environment, in particular for the possible spill of oil or hazardous materials. A risk assessment is thoroughly conducted as part of EIA, with adequate assessment and preparedness of emergency response plan. Overall, the improvement of Phase III channel improvement project itself is aiming to improve the navigation infrastructure in order to improve the operation safety of Meizhou Bay. Furthermore, since Meizhou Bay has been intensively used for navigation for decades, there have been well established management and operational procedures in MBHAB and relevant enterprises. There are also well established emergency response system and capacity within MBHAB regime, which is described in more detail in EIA.

5.2.4 Cumulative Impacts

The cumulative impact assessment, which is about the collective impacts caused by an action in combination with other past, present and future actions, attempts to co-ordinate the Project with other regional development and conservation efforts in an effort to maximize ecosystem and economic function. By reviewing related development impacts, including relevant port and bay area development plans and strategic environmental assessments (SEAs) that cover the 2010-2030 Meizhou Bay port and regional development, the EA concluded that the proposed Project is fully in line with the overall marine environmental plan and marine functional zoning plan which provide an integrated coastal management (ICM) framework to ensure long-term environmental sustainability and economic development.

It is identified that in the planning period of 2010-2030, the sources of cumulative impacts include significant economic and population growth, urbanization and industrial expansion, port and shipping development, land reclamation and waste disposal in the Meizhou Bay area. The analysis of cumulative impacts focused on the physical, chemical and biological aspects of the Meizhou Bay coastal system, specifically, sedimentation and erosion, water quality, and marine ecology (such as benthic organism, a proxy for valued ecosystem components). Meanwhile, cumulative impacts on terrestrial ecology, ambient air quality, and aquaculture were reviewed as well.

Meizhou Bay has experienced rapid port and shipping development over the past 20 years. Port traffic has increased by 143% from 2004 to 2010. Baselines review shows that the overall environmental quality, as reflected by seawater and sediment quality and biodiversity indicators, remains relatively stable and meeting designated environmental quality standards, largely due to exceptional physical conditions and environmental carrying capacity, and environmental protection efforts over the years. According to Meizhou Bay 2030 port development master plan, Meizhou Bay handled 40 million tonnes of freight in 2010, accounting for around 40% of the total goods handled by the five bays under Putian and Quanzhou. By 2030 there will be 286 berths in the five bays, of which 196 berths will be located within Meizhou Bay. Notably, the Meizhou Bay will be able to handle 76.7% of the total goods handled by the five bays. The concentrated development in Meizhou Bay is consistent with the marine functional zoning and indicates that the development pressure on the surrounding ecologically more sensitive bays will be lessened relatively.

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Cumulative impacts prediction shows that the most significant cumulative impacts arising from the temporally and spatially overlapped regional and port development would be related to the loss of coastal wetland. Under the maximum 2030 development scenario defined in the Meizhou Bay Port Development Master Plan, by estimate, 10%~15% of the coastal wetland within the Meizhou Bay maybe reclaimed for port facility development.

Wastewater generated in Meizhou Bay port in year 2020 and 2030 are predicted to reach 1.45 and 1.9 million m3/a. Domestic wastewater would be account for around 85% of the total. COD and oils would be the primary pollutants to impact the seawater quality, because wastewater from port production and vessels contains considerable oils. The wastewater will be collected and treated in several advanced wastewater treatment plants whose discharge outlets are located in the middle to lower bay areas that are close to the bay mouth and subject to strong tidal movement. Modeling study was then conducted, taking into account tidal baseline seawater quality, tidal characteristics in the Meizhou Bay, sensitive receptors near the wastewater outlets, temporal and spatial overlapping of wastewater discharge from those outlets. It is found that maximum increase of COD and oils would be minor, the seawater quality will remain the current planning targets, and the impacts on nearby sensitive receptor would be minor as well.

It is found that the development of Meizhou Bay has taken into account the Integrated Coastal Management (ICM) framework, which has been proven a successful tool to mitigate cumulative impacts as demonstrated in the Xiamen Port of Fujian Province since mid 1990’s. The ICM application in Xiamen Port has successfully helped resolve coastal use conflicts such as conflicts between transportation and aquaculture, coastal engineering and conservation, waste disposal and tourism, fisheries.

The ICM application in the context of Meizhou Bay port development includes crucial means to mitigate the cumulative impacts, notably, the marine functional zoning, environmental legislation and enforcement, and licensing, charging and penalty systems for use of ocean areas. Conservation measures including strict wastewater treatment requirements and funding for fish resources and mangroves rehabilitation are clearly defined in the Project EIA and EMP, which can be model practice to mitigate the major cumulative impacts in terms of loss of coastal wetland arising from port development. Thus, it is concluded that the Meizhou Bay port development has explicitly incorporated considerations of cumulative impacts to ensure long-term environmental sustainability and economic development.

5.3Summary of Mitigation Measures

Based on impact assessment, a set of mitigation measures have been developed in the EMP to avoid, minimize, mitigate and compensate the adverse environmental and social impacts. These mitigation measures are developed to address the identified impacts of design, construction and operation stages, in accordance with relevant national laws, regulations, guidelines and norms, as well as World Bank policies, including the Environment, Health and Safety General Guidelines and applicable specific Guidelines for Ports, Harbor and Terminals. Detailed management plan for marine ecological compensation and restoration, dredging and blasting,

25

dredged material disposal, contractor specifications and contingency plan are further elaborated in the EMP.

A summary of these mitigation measures, implementation and monitoring arrangement is shown in Table 5, Table 6, and Table 7. Specific measures for key social sensitive receptors are listed in Table 8.

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Meizhou Bay Navigation Improvement Project Environmental Assessment Executive Summary (Draft) August 2012

Table 5 Environmental Protection measures during Design Phase

Activities Potential Impact/Problem Mitigation Measures Reference to

EMP/RAPWho implement

Who Monitor

Monitoring Indicators

Monitoring Frequency

Land acquisition and resettlement

Potential impacts on aquaculture farmers

• Preparation of Resettlement Plan in accordance with national policy and World Bank policy.

Details in RAP

Hehai University

MBHAB, World Bank

RAP approved by MBHAB and World Bank

Prior appraisal

Dredging, blasting and disposal

Benthic, inter-tidal habitats and fishery resources will be affected

• Ecological compensation (offset) measure developed, budgeted and included in the EMP;

• Fish breeding and release program prepared;

• Offset program for mangroves rehabilitation prepared.

EMP Chapter 9

MBHABEIA Consultant

MBHAB,FOFD, FPEPD

Programs approved by FOFD

EIA approved by FPEPD

Prior to appraisal

Dredging, blasting and disposal

Sediments disturbance, dredged material spills to increase water turbidity and impact water quality and ocean ecology

• Prepare Environmental Management Plan, including Dredged Material Management Plan

EMP Chapter 7

EA consultant MBHAB, World Bank

EIA approved by FPEPD and World Bank

Prior to appraisal

Emergency accidents of oil/chemicals spill and CNG pipeline damage

Dredging and blasting has the risk of damage oil and CNG pipelines and vessels during construction which will affect coastal and ocean ecology

• Emergency response plan has been thoroughly assessed and included in the EIA and EMP

EMP Chapter 8


EIA approved by World Bank, FPEPD

Prior to appraisal

Contractor obligations

Inadequate environmental management practice may cause severe environmental impacts

• Contractor specifications developed in the EMP, and are to be incorporated into the bidding documents and construction contracts

EMP Chapter 6


EIA approved by World Bank,Specifications included in bidding documents

Prior to appraisal

Before issuing bidding

27


Table 6 Environmental Protection measures during Construction Phase


EMP/RAPWhoimplement

Who Monitor



Site Layout Potential disturbance to areas on the site and that construction activities take environmental, groundwater, drinking water supply

• Locate the camp away from immediately adjacent property owners. A layout plan for construction activities needs to be developed and approved by the Environmental Supervision Engineer

EMP Chapter 6.2

Contractor ESE, IEMC Site plan approved by ESE

Prior to construction

Contractor management

Sewage, domestic garbage, community disturbance, secure safety

• Staff facilities, ablutions, chemical toilets, potable water, first aid equipment must be provided for the staff

• Enforce code of conduct for workers

• Safe storage of fuel and dangerous materials.

• Proper treatment of wastewater, collection and disposal of solid waste

• Maintain continuous community consultation. Disclosure of project information. Keep complains register in camp office

EMPChapter 6.3-6.9

Contractor ESE,IEMC

Facilities provided;

Training provided; Material and waste properly managed;

Disclosure board installed

Daily

Dredging Marine suspended sediment pollution

Benthonic habitat and fish resources impact

• Dredging Management Plan developed in EMP.

• Contractor will develop detailed construction plan to be approved by Environmental Supervision Engineer

• On-site monitor the dredged

EMP Chapter 7.2

Contractor ESE,IEMC

Dredging plan approved;On site supervision by ESE;Specification followed;

Prior to dredging

Daily

28



EMP/RAPWhoimplement

Who Monitor



material storage barge to prevent spill.

• Enforce Dredging Engineering Technical Specification,

• Apply the GPS, dredge depth indicators to accurately control dredging;

• Strengthen the management on mud gate, the overflow time is controlled within 0.5 hour to reduce the suspended sediment flow into sea;

• The interval of dredging vessels shall be over 500m to avoid the overlapping impact of suspended sediments

• Implementation of fish breeding and release program

MBHAB

GPS installed;

Overflow time controlled;

Safety distance maintained;

Fish released.

Yearly

Rock blasting Impulse wave impact on ocean organisms, aquaculture farms

Noise and vibration

Blasting safety

• Follow the Blasting Safety Procedure (GB136722-86), Navigation Project Blasting technical Guidelines (JTJ286-90).

• Blasting plan must be submitted to local ocean and fishery authority for approval before implementation.

• Millisecond blasting technology, max load100kg

• Inform the administration of maritime affairs, navigation, release the Navigation Stopping

EMP Chapter 7.3

Contractor ESE,IEMC

Blasting plan approved by authorities,

Explosive charge recorded;Notice issued;

Prior to blasting

Daily

29



EMP/RAPWhoimplement

Who Monitor



Notice, and prior notice to nearby entity before 6 hours, prior area clearing and notice before 30mins, set the safeguard distance of 250m;

• Run noisy drilling machine and compressor to compel fish away from the area. Trial blasting with small load to drive away fish

• Blasting is arranged avoiding end of spring and early summer (April – June) to minimize impact on fish reproduction

• Establish safety zone, deploy watching ships, ban underwater personnel operation within 1500m radius

• After blasting, examine whether there is blind shot;

• Monitor large-size marine fishes within 2km boundary, once they’re found, the blasting will be canceled. Rescue large ocean fish if found and report to local ocean and fishery authority

Fish compelling measures done;

Schedule controlled;

Safety zone patrolled;

Inspection;

Visual inspection

Potential impact on LNG pipelines and oil pipeline

• Blasting plan must also be submitted to LNG and Fujian Oil Refinery port authority for agreement before blasting

• Mark LNG and oil pipeline zone to avoid anchorage etc.

• Emergency plan is in place

EMP Chapter 7.3 and 8

Contractor ESE,IEMC

Blasting plan agreed by CNG and Oil companies,

Safety zone marked;Emergency

Prior to blasting

Daily

30



EMP/RAPWhoimplement

Who Monitor



plan in placeDredged Material Transportation

Marine suspended sediment pollution

• Transported to designated backfill area, dumping at will is forbidden;

• Control the mud gate to avoid the mud water spill

EMP Chapter 7.4

Contractor ESE,IEC

No spill observed;

Daily

Dredged material backfilling in Putou and Xiaocuo

Loss of intertidal habitat

Loss of benthonic organisms

Loss of aquaculture farms

Sediment discharge through runoff may impact the water quality of coastal area

• Establish cofferdam in backfill area and filter layer prior to disposal;

• Dredging operation with the self-propelled bow-blowing TSHD whose transfer blowing pump blows silt to backfill area by hydraulic filling;

• Arrange the layout of the reclamation pipeline to ensure adequate settling time before supernatant discharge

• Control the elevation and side slope of the backfill region strictly to prevent spill

• Implementation of offset program of reestablishment of Mangroves in Natural Areas in Quanzhou bay is implemented

EMP Chapter 7.6

Contractor

MBHAB

ESE,IEC

Cofferdam established;

Effluent water turbidity;

No spill observed;

Mangroves planted.

Daily

Yearly

Construction ships management

Oil-containing wastewater may leak into water

Garbage

Noise impacts

• Oil-contaminated water will be collected and stored in the slop tank and then be disposed of in on-land treatment facility

• Solid waste and garage are not allowed to dump into water, must be collected and treated in on-land facility.

EMP Chapter 7.4

Contractor ESE,IEC

Waste disposal log;

Rules followed;

Daily

31



EMP/RAPWhoimplement

Who Monitor



Potential risk of disturbance on navigation channel, safety concerns of ship collision

• Abide by the regulations of Maritime Traffic Safety Law of the People's Republic of China and International Regulations for Preventing Collisions at Sea as well as the navigation requirements of the local maritime authorities.

• Prior notice to clear the construction zone, prepare emergency plan, equip communication facilities and signals, assign watching staff, liaison with weather authority, mark LNG and oil pipeline zone to avoid anchorage etc.

Safety measures taken

Physical cultural resources protection

Chance-find of physical cultural resources may be damaged

• In case of chance-find of any suspected physical cultural resources, dredging/disposal operation shall stop. Relevant cultural resources authority be notified. Dredging/disposal resumes only after approved by relevant authority.

EMP Chapter 6.10

Contractor ESE,IEC

Record of chance find

Daily

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Table 7 Environmental Protection measures during Operation Phase

Activities Potential Impact/Problem Mitigation Measures

Reference to EMP/RAP

Who implement

Who Supervise



Site Rehabilitation

Camp and operation site may be left with garbage, unleveled or not rehabilitated which is subject to erosion

Visual and landscape nuisance

• Remove all rubble, rubbish, litter, unused building equipment, contaminated soils or any other relevant articles from the site following the end of the construction phase

EMP Chapter 7.2

Contractor ESE, IECMBAHB

Site cleaned and rehabilitated

Upon project completion

Waste from ships

Oil containing wastewater, solid waste from ships, if discharged into water, will cause adverse impact on marine ecology and water quality

• Enforcement of national and international regulations e.g. Management Regulations on Preventing Vessels from Polluting Marine Environment, Fujian Marine Environmental Protection Regulations and other relevant laws and regulations.

• Wastewater and solid waste are forbidden to be discharged into the coastal sea area, and must be unloaded to the waste treatment facilities in the port for treatment.

Ship owners MBAHB Visual inspection;Waste disposal record

Daily

Navigation traffic in Meizhou Bay

LNG carrier, oil tankers and other vessels that carry dangerous or hazardous materials pose safety risk of leakage and spill.

• Safety operation procedures are well established

• Emergency response plan is in place.

• Special emergency response team and facility are deployed in Meizhou Bay.

• Improve vessel traffic control

EMP Chapter 8

MBAHB FPEPD,FOFD

Accidents records

Monthly

33


Oil spill may potentially affect the Meizhou Island

system in Meizhou Bay as well as the monitoring capacity of law enforcement team.

Ecological compensation and habitat offset

• Reproduction and releasing seed of various chosen marine species over 2012 and 2020.

• Mangrove plantation and enhance program in Luoyang Jiang mangrove in Quanzhou Bay Estuary Wetland Reserve, to be implemented during 2014-2016. A TORs is developed in EMP to scientifically design the program.

EMP Chapter 9

MBHAB FOFD, FPEPD

Fish released

Area of mangrove planted

Yearly

Cumulative impacts

Ecological impacts such as loss of benthic organisms and inter-tidal zone; Water quality degradation; impacts on aquaculture, etc.

• Cumulative impacts addressed in Meizhou Bay Port Master Planning EA, Meizhou Bay (Quanzhou - Putian) Strategic Environmental Assessment (SEA) Report

• Function Zoning has been developed following Integrated Coastal Management (ICM) approach

• Adopt Best Management Practice (BMP) by Meizhou Bay Harbor Administration Bureau

• Habitat improvement programs under ICM framework (fish breeding and release, artificial rock deployment, mangrove habitat enhancement programs etc.)

• Dialogue mechanism among stakeholders to monitor the development and ecological status of Meizhou Bay

EMP Chapter 10

MBHAB

FOFD

MBHAB

FOFD/MBAHB

MBHAB

FPEPD SEA report approved

Function Zones maintained;

Area of habitat improved;

Meetings organized

Yearly

Yearly

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Table 8 Site-specific Mitigation Measures for Sensitive Receptors

No Receptor

Current situation

and planning

Distance to construction area

Environmental and Social Impacts Main Mitigation Measures Current Field PhotosTo

dredging area

To blasting

area

35


1Putou Aquaculture Zone

Current: laver and seeweed cultiviation; Planned for port development

1.1km to Putou Channel dredging area

0.85km to Putou channel rock blasting area

1. Construction of Putou North channel will result in sediment suspension in the aquaculture area. 59.1 ha will have increased sediments concentration exceeding applicable standards 10mg/L. 2. Construction of 5# anchorage zone will impact 566 ha, but the increased the sediments suspension is small to cause significant impact.

Limit overflow time to less than 0.5hr to reduce suspension.Distance between dredging ships shall be kept more than 500m to avoid cumulative sediments suspension.

2Luoyu West Aquaculture Zone

Current: abalone net cage, seaweed and laver. Planned for port development

0.78km to 4# anchorage zone dredging

0.04km to main channel blasting

Dredging of main channel in the west of Luoyu. will result in sediment suspension in the aquaculture area. 9 ha will have increased sediments concentration exceeding applicable standards 10mg/L.

Temporarily relocate abalone net cage out of impact zone before the dredging.Limit overflow time to less than 0.5hr to reduce overflow.Distance between dredging ships shall be kept more than 500m to avoid cumulative sediments suspension.

Rock blasting in the main channel in the west of Luoyu will impact the aquaculture zone.

Blasting can be conducted only after relocation of abalone net cage.Single-stage explosives no more than 100kg

3Dongwu Aquaculture

Current: abalone net cage, seaweed and laver. Planned for port development

0.41km to Branch Channel dredging site

0.4km to Branch Channel blasting site

Sediment suspension exceeding-standard plum will not reach the aquaculture area.

Precaution measure taken:Limit overflow time to less than

0.5hr to reduce suspension.Distance between dredging ships shall be kept more than 500m to avoid cumulative sediments suspension.

No significant impacts resulted from blasting will impact the Dongwu abalone cultivation.

Precaution measure taken: Single-stage explosives no more than

100kg

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LNG line beneath


4Huiyu Aquaculture

Current: abalone net cage, seaweed and laver.

Overlap with Huiyu West channel

Dredging of 4# anchorage zone will impact 95ha where will have increased sediments concentration exceeding applicable standards 10mg/L. but the increased sediments suspension is small to cause significant impact.

Limit overflow time to less than 0.5hr to reduce suspension.Distance between dredging ships shall be kept more than 500m to avoid cumulative sediments suspension.

5

Fujian Refinery port and seabed oil pipeline

Seabed oil pipeline zone

0.26km to the dredging site of crossing zone

0.58km to blasting site

Blasting is far away from the oil pipeline so the shock wave resulted from the blasting is insignificant to the oil pipeline

(1) Single-stage explosives no more than 100kg(2) Linchi rock blasting shall be carried out only when the 300,00 DWT ship is not operating in the ports.(3)Prohibit navigation in the case explosives has not exploded.

6

Meizhou Bay seabed LNG pipeline

seabed LNG pipeline

0.13km to Putou channel dredging area

0.122km to Putou channel blasting site

Blasting is far away from the LNG pipeline so the shock wave resulted from the blasting is insignificant to the LNG pipeline

(1) Single-stage explosives no more than 100kg；(2) Prohibit navigation in the case explosives has not exploded.

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6. PUBLIC CONSULTATION AND DISCLOSURE

Two rounds of public consultation have been conducted according to the Chinese EIA public participation regulations and World Bank Environmental Assessment Safeguard Policy OP4.01. A combination of questionnaire surveys, interviews and public meetings have been administered to affected people, institutions, enterprises, government bodies and other stakeholders. Public concerns have been responded to during consultation and incorporated either in project design or in the EMP. Information disclosure of EA preparation has been carried out through public bulletins, local newspapers and the internet. The full EIA document was disclosed on the website of MBHAB and FESI on February 18th, 2012, with announcement on Fujian Haixiadushi Newspaper, and as such, is accessible to the general public. Updated EA was locally disclosed on July 15, 2012. The EA were disclosed in InfoShop on September 12, 2012.

For the purpose of minimizing impacts, communication with project affected people will continue throughout the project. Contractors are required to disclose information about project contents, key environmental issues and mitigation measures, compliant receiving person contact at project construction site. Regular consultation meetings with project affected communities (aquaculture farmers) must be organized during the dredging/blasting and disposal operation period, at least quarterly. A grievance mechanism is also established under the Resettlement Action Plan to address the public concerns about the land acquisition and livelihood compensation issues.

A stakeholder dialogue mechanism will be established during the project operation stage. The dialogue mechanism provides a forum to monitor and evaluate the regional development activities, change of marine and terrestrial ecological environmental status and social development progress in the Meizhou Bay area. The key purpose of such a dialogue mechanism is to keep all the relevant agencies and public informed about the regional development and cumulative environmental and social impacts.

MBHAB will be responsible for organizing stakeholder dialogue meeting on a yearly basis. Stakeholders invited include (but not limited to) Fujian Province Ocean and Fishery Department (FPOFD), Fujian Province Environmental Protection Department (FPEPD), ocean fishery agencies in Quanzhou and Putian, environmental protection bureaus from Quanzhou and Putian, local Development and Reform Commission, local marine affair agencies, district governments, representatives from key industrial enterprises around the Meizhou Bay area, Meizhou Island Nature Reserve Authority, and representatives from local communities and aquaculture business communities.

Environmental and marine ecological monitoring data in Meizhou Bay during the project operation will be fully shared among the stakeholders. The key findings and recommendations from the meeting will be formally communicated to relevant governments for necessary follow-up actions to ensure a sustainable development of Meizhou Bay, with integration and harmonization of socio-economic development and ecological functions maintenance.

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7. ENVIRONMENTAL MANAGEMENT PLAN (EMP)

A detailed Environmental Management Plan (EMP) addressing all issues identified in the EIA (i) organizes all measures to mitigate environmental impacts during the construction and operation; and (ii) establishes an organizational structure, procedures, institutional responsibilities for implementation, and a budget and source of financing for each activity. The EMP also includes environmental monitoring and capacity building programs. Main components of the EMP are:

focusing on the identified significant environmental impacts associated with the activities. confirming the execution of the developed mitigation measures, managing the environmental processes toward meeting the objectives and guideline value

of specific environmental indicators, and monitoring the effective mitigation technologies and management processes.

The key aspects covered within the EMP are summarized as follows.

7.1 Roles and Responsibilities

The key roles during construction are presented in Figure 7. The Fujian Provincial Transport Department (FPTD) will take the overall responsibility for management and coordination of the project implementation. The FPTD has a readily established a Project Management Office (FPMO) with 4 staff who has coordinated and managed the implementation, including environmental and social safeguards, of previous World Bank-funded highway and road projects in Fujian Province. FPTD/FPMO has a strong track record in managing safeguards of World Bank-funded projects.

FPTD(FPMO)

MBHAB

ESE

EQMC

IEMC

Contractor/Constructions Sites/Ambient Environment

Figure 7 Management Structure During Construction

The MBHAB, a subsidiary agency of FPTD, will be responsible for the preparation and implementation of the project. The MBHAB will carry out day to day safeguards implementation

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and compliance, as well as the monitoring and reporting tasks under the project. The MBHAB has a readily established Channel Construction Management Office with 10 staff, which was established for implementing the previous navigation channel development in Meizhou Bay. The Office will be further strengthened for implementation of the Project. The FPTD and MBHAB will also coordinate with other government agencies in managing the project.

An independent environmental management consultant will be recruited to conduct independent monitoring on performance of both the contractors and the supervision engineers in terms of EMP implementation. The consultant will also provide environmental training to the contractors, environmental supervision engineers and the MBHAB staff before and during construction, and assist MBHAB to prepare semi-annual environmental reports to the Bank.

Environmental mitigation measures developed in the EMP will be fully incorporated into the bidding documents and contracts of Contractors. Environmental supervision responsibility will be included in contracts with construction supervision engineers as an integral part of project supervision.

7.2 Management plans

Specific management plans have been developed in the EMP. These include: Dredging and Rock blasting Management Plan Dredged Materials Management Plan Fish Reproduction and Release Plan Mangrove Management Plan (MMP) And Monitoring Contractor Environmental Management Specifications Pollution Prevention Plan Emergency Response Plan Communication And Engagement

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8. EMP BUDGET

All mitigation measures have been budgeted and fully incorporated in project costs including monitoring and supervision.

The gross investment for environmental protection is RMB34.392million Yuan, accounting for 3.8% of the total project investment. The estimated gross investment of environmental protection of this project is shown in Table 9 and Table 10 .

Table 9 EMP budget for construction

Items MeasuresBudget

（ RMB million）1 Disposal Fee for outer bay dredged materials discharge 5

2Geotextile and other measures at the inner bay disposal

sites4

3 Waste management for construction ships 1.2

4 Compensation for Aquaculture Farm Relocation 10

5 Ecological loss compensation – fisheries and intertidal 19.804

6Environmental Management, risk management and

environmental monitoring1.5

Grand Total 41.504

Table 10 EMP Budget for operation

Items Measures

Budget

（ RMB

million）1 Dredged Materials management 0.6

2 Ship waste management 0.15

3 Ecological loss compensation 0.20

4Environmental Management, risk management and

environmental monitoring0.25

Grand Total 1.2

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