INTEGRATED SAFEGUARDS DATA SHEET CONCEPT STAGE Public Disclosure Copy Report No.: ISDSC14707 Date ISDS Prepared/Updated: 10-Oct-2012 I. BASIC INFORMATION A. Basic Project Data Country: China Project ID: P129563 Project Name: Anhui Yellow Mountain New Countryisde Demonstration Project (P129563) Task Team Rabih H. Karaky Leader: Estimated 00-undefined-0000 Estimated 27-Mar-2014 Appraisal Date: Board Date: Managing Unit: EASCS Lending Specific Investment Loan Instrument: Sector: General transportation sector (25%), General water, sanitation and flood protection sector (25%), Other industry (25%), General agri culture, fishing and forestry sector (15%), Sub-national government administration (10%) Theme: Rural services and infrastructure (58%), Cultural Heritage (21%), Rural non- farm income generation (10%), Other rural development (6 %), Municipal governance and institution building (5%) Financing (In USD Million) Public Disclosure Copy Financing Source Amount Borrower 67.00 International Bank for Reconstruction and Development 100.00 Local Govts. (Prov., District, City) of Borrowing Country 0.00 Sub-borrower(s) 0.00 Total 167.00 Environmental B - Partial Assessment Category: Is this a No Repeater project? B. Project Objectives The higher level objective of the project is to raise the standards of living for rural households in Huangshan municipality. The proposed project development objective (PDO) is to improve the quality of services and income generating opportunities available to rural households in selected villages of Huangshan municipality through: (i) upgrading infrastructure services, (ii) restoring and preserving the existing cultural heritage assets, and (iii) promoting high value-added agriculture and countryside tourism. C. Project Description Public Disclosure Copy The Anhui Yellow Mountain Countryside Demonstration Project would finance investments in 68 villages across four counties and three districts of Huangshan municipality. An asset based approach that builds on public sector investment, and mobilizes local villages and private sector potential to promote local economic development, is contemplated. It combines the conservation of cultural heritage sites with the upgrading of rural infrastructure, and the promotion of income generating opportunities from high value agriculture and countryside tourism. Interventions will be tailored to local conditions and will be determined in consultation with line bureau staff, villagers groups, private sector representatives and local government. Women are expected to constitute a large share of project beneficiaries given the high rate of rural-urban migration among men in search for employment in the cities. The project areas are selected based on criteria that aim at reducing the existing development and income gaps among different villages on one hand, and at maximizing the potential benefits from the existing cultural and natural heritage assets on the other hand. Sub- projects are identified in consistency with the relevant sectoral/regional development plans and strategies. The project will be financed by an IBRD loan of $100 million representing 60 percent of total project cost. The rest will be financed by counterpart funds comprising allocations from the seven project counties/districts and the municipality. The Bank loan will be passed on as grants to the participating villages. The project would have four components. Component A: Infrastructure Improvement This component aims at improving village-level infrastructure and public services by financing sustainable priority investments in rehabilitating and expanding service facilities while preserving and enhancing the traditional and historic character of project villages. Based on village needs, investments may include one or more of the following activities: i) village roads upgrading/ constructions, bridges, sidewalks, domestic and tourism pathways, car parks, street lightings and associated sub-surface infrastructure services; ii) safe and reliable piped water supply either from Public Disclosure Copy mountain springs or municipal water supply systems with appropriate treatment technologies; iii) storm water and waste water management through construction of drainage systems, sewer networks, low cost and environmentally appropriate treatment and disposal facilities; iv) public toilets, garbage bins and drop-off points. Garbage would be compressed at nearby solid waste transfer stations, and disposed in existing sanitary landfills; v) river enhancements for flood control, environmental and recreational uses, and vi) rehabilitation of minor irrigation and drainage canals. Component B: Cultural Heritage Conservation & Preservation This component aims at restoring, preserving, protecting and, where practicable, adaptively reusing historic Huixhou style buildings for social, cultural, village environment, economic and tourism development purposes. Investments would include interventions to: i) arrest physical deterioration; improve structural integrity, physical safety and functionality; restore cultural and historic authenticity; ii) improve presentation and signage, and enhance the core surrounding environment by putting Hui-style façade onto non-traditional buildings [whitewashed walls and dark tiles, and fire- proof walls (“Horse-head walls”)] to promote the visibility and positive image of the villages; iii) promote and facilitate the adaptive reuse of local cultural heritage sites for social, cultural, and economic development purposes; iv) document and disseminate information on important tangible and intangible cultural heritage assets (buildings, particular social histories and practices, traditional stories, music, dress and dance); v) strengthen cultural heritage preservation and promotion institutions at the municipal and district/county levels and build their capacity to operate and maintain these sites, promote them within the overall Huangshan tourism development plan, and increase the level of communities’ involvement and appreciation for them to support of their sustainability. Public Disclosure Copy Component C: Enhanced Economic Opportunities This component aims at generating direct employment opportunities, increasing local household incomes, and stimulating village economies by building on the above improvements of the infrastructural services and cultural heritage, to promote the development of high-value agriculture and countryside tourism. Investments would include support for: i) tourism-related conversion and adaptation of farmhouses into countryside motels in partnership between farmers, village/community management organizations and private companies; ii) training of villagers to develop their skills in tourism promotion, management and service provision, communication, marketing and accountin g; iv) improvement in the production and marketing of high-value local products such as tea, mulberry, flowers, herb and grapes, and aquaculture; v) development of new production cooperatives and the training of farmers in application of new “green” and organic agricultural technologies--including initiatives to obtain green and organic certification; and vi) construction of markets for farmers to sell their agricultural products and handicrafts; establishment of culture exhibition center for signature products. Component D. Project Management Support This component aims at strengthening the capacity of PMOs at the municipal and district/county levels to effectively implement, manage, monitor and report on project activities and progress. The component will support: i) the establishment of effective financial and project management information systems and project monitoring and evaluation system; ii) the purchase of necessary systems hardware and software; iii) training of PMO staff to effectively utilize the systems; and iv) other related consultancies and studies. D. Project location and salient physical characteristics relevant to the safeguard analysis (if known) Public Disclosure Copy The project is located in Huangshan Municipality at the far southern end of Anhui province. Huangshan Municipality has 101 towns and townships, and around 900 villages with a land area of 9,807km2 and a total population 1.5 million. Huangshan is endowed with a rich natural environment, and is the home-town of Huizhou Culture with abundant physical cultural resources, and is a leading tourism destination in China. The project covers 68 villages of Huangshan Municipality spread across 7 counties/districts, as follows: Tunxi District (3 villages): Waibianxicun, Xinjiangcun, liucun; Huangshan District (12 villages): Xingcun, Raocun, Sanhecun, Chaoyangcun, Longshancun, Longyuancun, Baiguocun, Zhongduncun, Yongfengcun, Guocun, Shuxicun, Xinfengcun; Huizhou District (8 villages): Xixiancun, Lingshancun, Yangcun, Shuyuancun, Kunshacun, Qiankoucun, Fuxicun, Qiashecun; She County (20 villages): Xucun, Tangyuecun, Zhengcun, Xiongcun, Maihuayucun, Shitancun, Zhanqicun, Changxicun, Shenducun, Yuliangcun, Futacun, Baojiacun, Wengzhengshancun, Hongqingcun, Hongfeicun, Zhangtancun, Miantancun, Jiekoucun, Sucun, Beiancun; Xiuning County (7 villages): Yanpucun, Yanjiaocun, Tianlicun, Wanxincun, Lanshicun, Huaqiaocun, Huangcun; Yi County (6 villages): Pingshancun, Guhuangcun, Shenchongcun, Bishancun, Tuanjiecun, Miaolincun; Qimen County (12 villages): Taoyuangcun, Zhukoucun, Lixicun, Lunkengcun, Penglongcun, Huanglongcun, Liuducun, Xiangtancun, Huanshacun, Luxicun, Mashancun, Kengkoucun. E. Borrowers Institutional Capacity for Safeguard Policies A project leading group has been established under the leadership of the vice mayor and with members of DRC, Finance Bureau, Culture commission, Tourism Commission, Environmental protection Agency, Housing Construction Committee, Planning Bureau, Department of Public Disclosure Copy Transportation, Agriculture Committee, Water Conservation Bureau, Health Bureau. A central PMO has also been established at Huangshan Municipality with 5 professionals and technical positions. County/District level PMOs have been established, which will include designated and full time staff in project preparation and implementation. Though Huangshan Municipality had previous experience working with the Bank, it is the first time for the central PMO to independently work on Bank financed project. The Bank team will provide PMOs staff with safeguards trainings to improve their capacity to the satisfactory level. F. Environmental and Social Safeguards Specialists on the Team Zhefu Liu (EASCS) Feng Ji (EASCS) II. SAFEGUARD POLICIES THAT MIGHT APPLY Safeguard Policies Triggered? Explanation (Optional) Environmental Assessment OP/ Yes The impacts of the proposed project on the BP 4.01 environment are expected to be overall positive. The project, by design, puts strong emphasis on the conservation of environmental and PCRs resources. Potential adverse environmental impacts are mainly related to small scale infrastructure construction, including soil erosion, spoil disposal, noise, dust and disturbance to local communities which could be readily mitigated. The increased number of tourists in the villages may also have some Public Disclosure Copy adverse impacts (e.g. wastewater, waste), for which mitigation measures will be proposed in the EMP. The diversification of crop system (e.g. tea, rose) potentially involve pest management which will be addressed in a Pest Management Plan. Based on the available information and the field visits, it is proposed that the project is classified as category B project after considering the type, location, sensitivity, and scale of the project, and the nature and magnitude of the potential environmental impacts due to the following: (i) the project mainly includes improvement of the existing infrastructure such as alleys improvement and pavement within villages, improvement of existing roads, and small scale new infrastructure at village level, including piped water supply system, public toilets, sewers, and small scale sewage treatment facilities), rehabilitation of existing village irrigation and drainage canals where hazardous Public Disclosure Copy chemicals in the silt are not a concern; (ii) the project is located in areas (e.g. villages) that have been heavily influenced by human activities and not in protected areas; (iii) the project does not have any significant adverse environmental impacts that are sensitive, diverse or unprecedented. The mitigation measures for these adverse impacts can be readily designed. The borrower will prepare an EA which will involve two stages of public consultations, the first stage once the ToR of the EA has been prepared, and the second stage when the draft EA Report has been prepared. The EA Report will be reviewed and cleared by the Bank and disclosed at the project areas in the local language (accessible to the locally affected people) and at the Bank's Infoshop in the English language prior to appraisal. The EA will describe in detail: (i) The project activities; (ii) The project geographical settings, including its area of influence considering each Public Disclosure Copy type of project activities (e.g. road construction, water supply, wastewater and solid waste management); (iii) The legal framework and World Bank requirements; (iv) The institutional framework for project preparation and implementation for each type of project activities; (v) Potential adverse environmental impacts for each type of project activities; (vi) An EMP/ Environmental Code of Practice (ECOP) (implementable and monitorable), including for each type of construction activities to be financed under all three components. This will also include measures to enhance positive impacts when applicable; (viii) An institutional strengthening plan; and (ix) Results of the consultations with project stakeholders. An EMF will also be prepared prior to appraisal to identify any additional site specific impacts Public Disclosure Copy that are not likely to be covered by the EMP/ ECOP (see vi above) to develop additional site specific measures, if any needed. This EMF will also include screening procedures to identify and mitigate potential impacts (including those impacts on PCRs) from activities that are likely to be identified during project implementation, if any. Natural Habitats OP/BP 4.04 TBD Based on the available information, the project activities are not likely to affect protected reserves, known as natural habitats, or established or proposed critical natural habitats. Further assessment will be done during project preparation. Forests OP/BP 4.36 No The project will not finance activities that would involve any conversion or degradation of critical forest areas or related critical natural habitats as defined under the policy. Pest Management OP 4.09 Yes A Pest Management Plan will be prepared for subprojects that involve agricultural activities under Components A and C of this project Physical Cultural Resources OP/ Yes A Physical Cultural Resources (PCR) BP 4.11 Management Plan will be prepared for Component B of the project (incorporated in the Public Disclosure Copy EA/EMP) and the TT will ensure that : (i) A PCR assessment is conducted by a nationally recognized institution, experienced PCR consultants together with the EA consulting team (ii) PCR inventories are developed and mapped through information obtained from literature sources, consultation with authorities, communities etc. (iii) A PCR Management Plan covering all PCR subprojects will be developed Indigenous Peoples OP/BP 4.10 No The task team visited many of the villages in the project area and had meetings with the municipal department in charge of the minority affairs. The team concluded there are no ethnic minorities in the project area. Thus, OP 4.10 is not triggered. Involuntary Resettlement OP/BP Yes A Resettlement Action Plan (RAP) will be 4.12 prepared prior to appraisal to cover all project activities triggering OP 4.12. Since there is a possibility that sub-projects maybe dropped or replaced after project appraisal, a Resettlement Public Disclosure Copy Policy Framework (RPF) will be prepared and disclosed prior to appraisal. Safety of Dams OP/BP 4.37 TBD Based on the available information, this policy is not likely to be triggered. Proposed water supply schemes will use mountain springs or urban water supply systems. Accounting for the possibility that water supply schemes may draw water from reservoirs controlled by existing small dams, the policy is considered TBD at this stage. Further assessment will be conducted during project preparation. Projects on International No Waterways OP/BP 7.50 Projects in Disputed Areas OP/BP No 7.60 III. SAFEGUARD PREPARATION PLAN A. Tentative target date for preparing the PAD Stage ISDS: 30-Jul-2013 B. Time frame for launching and completing the safeguard-related studies that may be needed. The specific studies and their timing1 should be specified in the PAD-stage ISDS: Next preparation mission will review the EA safeguards documents prepared by the consultants based on the recommendations made by the ID mission and the TORs reviewed by the Bank team. IV. APPROVALS Public Disclosure Copy Task Team Leader: Name: Rabih H. Karaky Approved By: Regional Safeguards Name: Panneer Selvam Lakshminarayanan (RSA) Date: 15-Oct-2012 Coordinator: Sector Manager: Name: Mark R. Lundell (SM) Date: 12-Oct-2012 1 Reminder: The Bank's Disclosure Policy requires that safeguard-related documents be disclosed before appraisal (i) at the InfoShop and (ii) in country, at publicly accessible locations and in a form and language that are accessible to potentially affected persons.