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Pilot Project of Poverty Reduction through Industrial Development in China’s Contiguous Impoverished Areas in Sichuan Province

Environmental Impact Assessment Report

(Copy for Approval)

|Administrative Organization |Foreign-funded Project Management Center, Poverty Alleviation and Development office of |

| |Sichuan Province |

|Report Prepared by |Institute of Environmental Protection Research of Sichuan University |

Content

Chapter 1 Overview 4

1.1 Backgrounds 4

1.2 Conformity Analysis of Project Construction and Related Industrial Policies and Planning 7

1.3 Assessment Basis and Standard 21

1.4 Category, Rating, Scope and Period of Assessment 40

Chapter 2 Project Overview 47

2.1 Objectives and Investment of Project 47

2.2 Composition and Schedule of Project 47

2.3 Construction Content and Scale of Construction 48

2.4 Construction Standard of Project 53

2.5 Relevant projects and due diligence 55

Chapter 3 Environment and Current Social Situation 60

3.1 Environmental conditions of the villages covered by the project 60

3.2 Economic conditions of counties covered by the project 71

3.3 Natural protection reserves, cultural relics and historic sites in the project area 72

3.4 Present environmental quality condition 75

Chapter 4 Predication and Valuation of Environmental Influence of Infrastructure Projects 84

4.1 Analysis of Construction Period’s Influence on Environment 84

4.2 Analysis of influence on environment during operation period 92

Chapter 5 Impact Analysis of Agricultural Activities 101

5.1 Environmental Impact Prediction and Assessment of Planting Project 101

5.2 Environmental Impact Prediction and Assessment of Breeding Project 114

5.3 Impact Analysis of Agricultural Product Processing 123

5.4 Resource Carrying Capacity Analysis 129

5.5 Environment Capacity Analysis 135

Chapter 6 Analysis of Alternative Plans 138

6.1 “With and Without Project” Analysis 138

6.2 Comparison and Selection of Irrigation Methods 141

6.3 Comparison of Environmental Impact of Different Planting Patterns 142

6.4 Comparison of Different Approaches to Dispose Animal Feces from Breeding 145

Chapter 7 Public Participation 149

7.1 Purpose of Public Participation 149

7.2 Information Disclosure 149

7.3 Methods and Contents of Public Participation 151

7.4 Results of Public Consultation 154

7.5 Summary 159

Chapter 8 Environmental Management Plan 160

8.1 Environmental management institutions and their responsibilities 160

8.2 Mitigation Measures 164

8.3 Training Projects on Environmental Protection 201

8.4 Environmental monitoring plan 204

Chapter 9 Conclusion and Suggestion 207

Chapter 1 Overview

1.1 Backgrounds

1.1.1 Project’s Implementation Area and its General Situations

1. Project’s Implementation Area

The Project involves 199 administrative villages of 49 townships of 6 counties of 2 cities (prefectures) in Sichuan Province. The specific implementation areas are shown in Table 1.1-1.

Table 1.1-1 Project Areas (Cities) and Counties

|Areas | |Project |Project |Covered |Covered |Notes (Names of the Project Towns and Townships) |

| |Project |Township |Village |Households |Population | |

| |County | | | |(Person) | |

|Liangshan |Jinyang |16 |36 |8830 |35300 |Xiangling Township, Mayizu Township, Taoping |

| | | | | | |Township, Mufu Township, Pailai Town, Honglian |

| | | | | | |Township, Lugao Town, Xiaoyinmu Township, Dexi |

| | | | | | |Township, Yida Township, Bingdi Township, Nanwa |

| | | | | | |Township, Siwo Township, Tugou Township, Yimohe |

| | | | | | |Township, Rekejue Township |

|Liangshan |Meigu |10 |52 |11779 |45818 |Yiguojue Townshipship, Waxi Township, Longmen |

| | | | | | |Township, Jueluo Township, Jingyetexi Township, |

| | | | | | |Nongzuo Township, Jiukou Township, Luo’eyigan |

| | | | | | |Township, Lamu’ajue Township, Bapu Town |

|Liangshan |Zhaojue |8 |42 |9864 |47900 |Jiefang Township, Sangang Township, Nidi Township,|

| | | | | | |Wanchang Township, Saladipo Township, Sikai |

| | | | | | |Township, Dimo Township, Liuqie Township |

|Luzhou |Gulin |6 |20 |12498 |57458 |Shuangsha Town, Mati Township, Masi Miao Ethnic |

| | | | | | |Township, Jiaoyuan Township, Baini Township, |

| | | | | | |Shibao Town |

|Luzhou |Xuyong |3 |20 |10613 |45600 |Chishui Town, Shuiliao Yi Ethnic Township, Shiba |

| | | | | | |Yi Ethnic Township |

| |Total |49 |199 |61325 |261461 | |

2. Project Area’s Characteristics

1) In the project area, there are a large number of poor residents with a high poverty incidence. There are absolute poverty and relative poverty, region-specific poverty and poor population, economy-led poverty and knowledge-led poverty, returning to poverty and new poverty at the same time.

2) The rural human capital is uncompetitive. The residents are of poor physical conditions, of less vocational education and training, of low capacity and quality, and of less participation in social activities.

3) The two project counties under Luzhou City are located in the ranges of Daloushan Mountain and Xueshan Mountain at an altitude of about 700m, while the 4 project counties under Liangshan Prefecture are located in Daliangshan Mountain at an altitude of more than 2000m. Therefore, the natural environment is harsh with frequent natural disasters.

4) Since the project villages lack public services, many residents fell into poverty or relapsed into poverty due to illness and schooling and other issues.

5) With poor infrastructure, the project villages are vulnerable to natural disasters.

6) The large scale industrial development is suffocated because the farm produce are within several varieties, with low technology content and extensive management.

7) The narrow-minded farmers lack self-development ability and awareness to make innovation.

8) The income source is not diversified, the market information acquisition is not smooth, the sale channel for agriculture is narrow, and product brands are not well established.

1.1.2 Project Implementation and Administrative Units

In accordance with the innovation in administrative requirements and farmer organization in the Project, the project administrative organization is divided into the project leading system, the project implementation system and the technical support system.

Sichuan Province sets up a Project Leading Group (whose responsibility could be taken by the Provincial Leading Group of Poverty Alleviation and Development), while the Foreign Capital Project Management Center of the Province is responsible for the organization and implementation of the Project. The cities (prefectures) and counties involved in the Project set up a Leading Group (which could be taken by the Leading Groups of Poverty Alleviation and Development at city, prefecture and county levels), while the Foreign Capital Project Management Centers at city, prefecture and county levels are responsible for the organization and implementation of the Project. All project townships and towns set up project work stations. Villages set up Project Implementation Teams or Farmer Professional Cooperatives which organize farmers to implement and manage the projects for industry-based poverty alleviation. In sum, a top-down organization and administration network is formed to guarantee the smooth implementation of the Project.

1.2 Conformity Analysis of Project Construction to Related Industrial Policies and Planning

1.2.1 Conformity of the Project to Industrial Policies

According to the Catalogue for Guiding Industry Restructuring (2011 Version) (Amendment) (issued by Order No. 9 of the National Development and Reform Commission, amended on February 16, 2013), the Component “Livestock and Poultry Breeding” under the Project belongs to Article 5 Development and application of technologies for the standardized breeding of livestock and poultry on a large scale, Item 1 Agriculture and Forestry, Category 1 Encouragement; the Component “Agriculture Development” belongs to Article 2 Construction of agricultural product bases and Article 8 Selection, breeding, breed conservation, and development of the fine varieties of animals and plants (including wild animals and plants); biological seed breeding; and production, processing, storage, and appraisal of seeds, Item 1 Agriculture and Forestry, Category 1 Encouragement; the Component “Food Processing” belongs to Article 32 Storage and transport, preservation, processing and comprehensive utilization of products from agriculture, forestry, animal husbandry and fishery, Item 1 Agriculture and Forestry, Category 1 Encouragement; the Component “Water Conservancy Engineering” belongs to Article 23 Farmland water conservancy facilities construction (irrigation and drainage channels, sluice gates, pump stations and so on), Item 2 Water Conservancy, Category 1 Encouragement; the Component “Road Construction” belongs to Article 12 Rural roads construction, Item 24 Highway and Road Transport (including Urban Passenger Traffic), Category 1 Encouragement; no technologies, equipment or raw materials which are restricted and to be eliminated are involved during the construction and operation of all Components.

The Project is not stipulated by the Catalogue of Restricted Uses of Land (2012 Version) and the Catalogue of Prohibited Uses of Land (2012 Version) issued by the Ministry of Land and Resources and the National Development and Reform Commission. Therefore, the construction of the Project conforms to the industrial policies and land policies of China.

1.2.2 Conformity of the Project to Related Planning

Table 1.2-1 Conformity with the Twelfth Five-Year Plan for National Economic and Social Development of the People’s Republic of China

|Plan |Planning Contents |Contents under the Project |Conform or Not |

| |To accelerate the |the development of facility agriculture will be sped up, the standardized production|The project area is equipped with favorable environment and prominent |Yes |

|the |development of modern |of garden crops, such as vegetables, fruits, teas, flowers and plants, will be |resource advantages. The Project focuses on plants including forage grass, | |

|Twelfth |agriculture |promoted. The livestock husbandry will be promoted with a higher proportion of |potato, sweet orange and other fruits, and livestock including cattle and | |

|Five-Year| |output value. Agricultural industrialization will be impelled, and the processing |sheep. At the same time, counterpart infrastructure is developed to | |

|Plan for | |industry and distribution industry for agricultural products will be supported to |facilitate the agricultural industrialization in this area. | |

|National | |make the agricultural production and operation professional, standardized and | | |

|Economic | |intensified at a large scale. | | |

|and | | | | |

|Social | | | | |

|Developme| | | | |

|nt of the| | | | |

|People’s | | | | |

|Republic | | | | |

|of China | | | | |

| |To accelerate the |Integrated innovation and wide application of science and technologies will be |Green control measures are adopted in the Project to prevent insect |Yes |

| |innovation in |promoted in efficient cultivation, disease prevention and control, agricultural |diseases. Mechanical operation and scientific training are adopted in | |

| |agricultural science |water-saving and other fields. Agricultural mechanization is accelerated to |animal husbandry and crop farming to develop the agricultural science and | |

| |and technology |integrate agricultural machinery with agriculture. |technology in this area. | |

| |To perfect the |The capacity building of agricultural public services will be enhanced, and the |During the implementation, public services are promoted through planning to|Yes |

| |socialized agriculture|public service agencies of all townships or the area will be improved and perfected,|set up cultivation cooperatives, creating information distributing | |

| |service system |including popularization of agricultural techniques, disease prevention and control |platforms for products, registering green goods, establishing products | |

| | |for animals and plants, and quality supervision of agricultural products. |storage and trading markets. | |

| |To consolidate and |Farmers will be encouraged to optimize the planting and breeding structure, to |Farmers’ economic income is increased through various strategies, such as |Yes |

| |increase household |improve their production, operation and economic benefits. Through agricultural |cultivation under forest, combination of retail cultivation and cultivation| |

| |business income |industrialization and new rural cooperatives, farmers will reasonably share the |villages, cultivating sweet oranges, walnuts and potatoes in accordance | |

| | |incremental benefits during product processing and circulating. Particular measures |with local conditions , and agricultural cooperatives. | |

| | |will be adopted for the local conditions to develop high-efficiency agriculture with| | |

| | |characteristics. | | |

| |To strengthen the |Water conservancy works for farming, rural roads, rural electrification for new |The Project involves the construction of rural roads, production shortcuts |Yes |

| |rural infrastructure |villages, and the small hydropower for fuel project will be fully constructed. |and water conservancy infrastructure. The Project improves the rural | |

| | | |investment environment for better rural development. | |

| |To comprehensively |Diffused pollution caused by pesticides, chemical fertilizers, agricultural films |During the implementation, green prevention and control are promoted, |Yes |

| |promote the rural |will be governed, and pollution prevention will be fully promoted in livestock and |farmers receive trainings to reasonably utilize pesticides and chemical | |

| |environment |poultry breeding. |fertilizers. In allusion to livestock and poultry pollution and ecological | |

| | | |damage, forage grass planting and effective pollution prevention measures | |

| | | |are raised to alleviate the diffused pollution. | |

Table 1.2-2 Conformity with the Twelfth Five-Year Plan for National Economic and Social Development of Sichuan Province

|Plan |Planning Contents |Contents under the Project |Conforms or Not |

|the |To improve the |Farmland infrastructure, the rural drinking water safety project, rural roads, rural|In the Project, new rural roads and production shortcuts, water conservancy|Yes |

|Twelfth |development conditions|information infrastructure will be reinforced. A new round of construction will be |infrastructure, trading places for agricultural products and livestock, | |

|Five-Year|for agricultural and |implemented for the rural electric network transformation project, rural traditional|storerooms for agricultural products will be constructed. It is significant| |

|Plan for |rural areas |markets, and cold-chain logistics. |to improve the rural investment environment and the rural industrial | |

|National | | |development. | |

|Economic | | | | |

|and | | | | |

|Social | | | | |

|Developme| | | | |

|nt of | | | | |

|Sichuan | | | | |

|Province | | | | |

| |To develop modern |Cultivated land and basic farmland will be strictly protected to stabilize food |The basic construction under the Project does not occupy any basic |Yes |

| |agriculture with great|production. Relying on the advantages of agricultural resources, the featured |farmland. The forage grass and fruit forests will be mainly planted in the | |

| |efforts |profitable agriculture, such as potato, fruits and tea, will be developed with great|wild grass ground this area, no fertile farmland involved. Since the | |

| | |efforts. The animal husbandry will be stably developed, and the standardized |Project is located in the Wumeng Mountain Region, the industrial | |

| | |large-scale cultivation of livestock, poultry and aquatic products will be promoted.|large-scale development could be driven by the existed development | |

| | |To develop ecological agriculture, pollution-free agricultural products, green food,|foundation for the agriculture, forestry and animal husbandry this region. | |

| | |organic food, and agricultural products with geographical indications will be |At the same time, the Project aims to develop green products, featured | |

| | |developed. Farmer cooperatives and the leading enterprises in agricultural |brands and specialty industries, and goes beyond the regional market | |

| | |industrialization will be supported to improve the industrialized operation. At the |through industrial training and agricultural cooperatives. | |

| | |same time, the agricultural science and technology and the comprehensive services | | |

| | |will be improved. | | |

| |To accelerate the |The planning and construction of new villages will be enhanced. The comprehensive |In order to produce green products, in the Project, green prevention and |Yes |

| |construction of modern|improvement of the rural environment will be intensified with proposals of |control measures and technical training are intensified, the pollution | |

| |new villages |scientifically utilizing chemical fertilizers, pesticides and agricultural films. |prevention and control plan on plant diseases and insect pests is put | |

| | |More efforts will be made to prevent the pollution caused by large-scale cultivation|forward, reasonable utilization of chemical fertilizers and pesticides is | |

| | |of livestock and poultry. |advocated. Meanwhile, practical pollution prevention and control measures | |

| | | |are raised for the large-scale cultivation of livestock and poultry. | |

| |To help farmers |The policies to strengthen agriculture and benefit farmers will be put into practice|Through the rural infrastructure construction, the Project promotes the |Yes |

| |increase their income |in an all-around way. With intensified vocational skills and trainings, farmers will|regional industrialization and the regional economy, helping farmers | |

| | |have higher income, wider income channels in a sustainable and rapid way. |increase income and become better off. | |

| |To accelerate the |In accordance with the overall goal that an all-round well-being will be achieved |Located in the Wumeng Mountain Region which is an old revolutionary area, |Yes |

| |development of |within the province by 2020, the leapfrog development in minority areas and the |minority area and poverty-stricken area, the Project invests more economic | |

| |minority areas, old |accelerated development in old revolutionary areas and poverty-stricken areas will |inputs on the poverty-stricken area to facilitate the social development in| |

| |revolutionary base |be carried forward with great efforts, with the infrastructure construction, |the poverty-stricken area through the infrastructure construction and the | |

| |areas and |people’s livelihood improvement and featured industry development as the priorities.|large-scale development of featured industries. | |

| |poverty-stricken areas| | | |

Table 1.2-3 Conformity with the Outline for Development-oriented Poverty Reduction for China’s Rural Areas (2011-2020)

|Plan |Planning Contents |Contents under the Project |Conform or Not |

| Outline for|Targets and Tasks |By 2020, the targeted people of poverty alleviation shall have |The following are the overall goals of the Project: Farmers’ specialized cooperatives |Yes |

|Development-| |abundant food and clothing, and enjoy compulsory education, basic |covering poor households will be set up in the contiguous poor areas with special | |

|oriented | |medical care and housing. To narrow the expanding development gap,|difficulties. With supports, the market-oriented cooperatives will, on the basis of the | |

|Poverty | |the increase of per capita net income in the poor areas shall |local natural conditions and resources, develop featured advantageous industries which are| |

|Reduction | |exceed the national average, and the indicators of the major |efficient, ecological, and high-value. Great efforts will be made to extend and perfect | |

|for China’s | |fields in the public service shall be approaching to the national |the industrial chains, and to increase the share-cropping proportion for the average | |

|Rural Areas | |average. The basic farmland and water conservancy for farmland, |profit in the industrial chain. A stable foundation will be built for poor household to | |

|(2011-2020) | |the featured advantageous industries, drinking water safety, and |increase their income, and “two transformations” will be achieved as poverty-stricken | |

| | |transport are the top priorities among the tasks of poverty |villages transform into well-off villages in the new rural areas, and poor households | |

| | |alleviation. |transform into well-off households. At the same time, the pattern for the industry-based | |

| | | |poverty alleviation and the innovative mechanism for the industry-based poverty | |

| | | |alleviation will be explored in the contiguous poor areas with special difficulties. | |

| | | | | |

| |Targeted Scope |The major targets in the poverty alleviation are the rural |The 6 counties covered by the Project are all determined by the state as regional counties|Yes |

| | |population having labor capacities under the standards of the |in the Wumeng Mountain contiguous poor areas with special difficulties. In these counties,| |

| | |poverty alleviation, and the priorities are given to the |poor residents are of a large number, the poverty incidence is high, the infrastructure is| |

| | |contiguous poor areas with special difficulties (including the |outdated, and so the counties are vulnerable to natural disasters. In addition, the | |

| | |Wumeng Mountain Region), key counties and poor villages. |industrial products are of single variety, low technology and extensive management. | |

| |Industry-based poverty|Featured industries, poverty alleviation supported by science and |Through conditional grants, the Project pays the farmers’ specialized cooperatives in the |Yes |

| |alleviation |technology, educational and cultural causes will be developed. |project areas to intensively develop 7 local leading industries at a standardized large | |

| | |Infrastructure, public health, population service management, and |scale, including sweet orange, walnut, konjac, potato and sheep. The Project assists the | |

| | |social security will be improved. Furthermore, energy and |specialized cooperatives in registering green trademarks, guiding the logistics market, | |

| | |ecological environment construction will be emphasized. |processing market and trading market, extending the industrial chain and achieving the | |

| | | |environmental pollution improvement in the project implementation. | |

| |Social Poverty |Fix-point poverty alleviation will be strengthened, cooperation |The project fund consists of two parts, the loan from the World Bank and the fiscal fund |Yes |

| |Alleviation and |between the east and the west will be promoted in the poverty |for poverty alleviation from the government. The cooperation with the World Bank not only | |

| |International |alleviation, and enterprises and all sectors of society will be |introduces the fund for the poverty alleviation, but also has a demonstration effect. The | |

| |Cooperation |mobilized to participate in the poverty alleviation and learn from|cooperation could guide more international financial institutions to focus on the poverty | |

| | |the theories and practices of the international community. |issue in China and make investments on the poor areas. Then the current under-investment | |

| | |Projects on poverty reduction will be carried out to share |could be resolved. At the same time, benefited from the cooperation, China could learn | |

| | |experiences and facilitate the poverty reduction. |from the international experiences and practices on agricultural industrial development | |

| | | |and farmer organizations, and explore the new system, new mechanism and new pattern with | |

| | | |Chinese characteristics for the industry-based poverty alleviation on the basis of the | |

| | | |local conditions in the poor areas. | |

Table 1.2-4 Conformity with the Outline for Development-oriented Poverty Reduction for Sichuan Province’s Rural Areas (2011-2020)

|Plan |Planning Contents |Contents under the Project |Conform or |

| | | |Not |

| |Targets |By 2015, the problem of food and clothing will be stably resolved for the |The following are the overall goals of the Project: Farmers’ specialized cooperatives covering poor |Yes |

|Outline |and Tasks |targeted people of the poverty alleviation, and the number of poor |households will be set up in the contiguous poor areas with special difficulties. With supports, the| |

|for | |residents will be largely reduced. By 2020, the targeted people of poverty |market-oriented cooperatives will, on the basis of the local natural conditions and resources, | |

|Developme| |alleviation shall have abundant food and clothing, and enjoy compulsory |develop featured advantageous industries which are efficient, ecological, and high-value. Great | |

|nt-orient| |education, basic medical care and housing. To narrow the expanding |efforts will be made to extend and perfect the industrial chains, and to increase the share-cropping| |

|ed | |development gap, the increase of per capita net income in the poor areas |proportion for the average profit in the industrial chain. A stable foundation will be built for | |

|Poverty | |shall exceed the provincial average, and the indicators of the major fields|poor household to increase their income, and “two transformations” will be achieved as | |

|Reduction| |in the public fields shall be approaching to the provincial average. The |poverty-stricken villages transform into well-off villages in the new rural areas, and poor | |

|for | |goal of building a well-off society will be achieved at the same time as |households transform into well-off households. At the same time, the pattern for the industry-based | |

|China’s | |the whole province as poverty-stricken villages transform into well-off |poverty alleviation and the innovative mechanism for the industry-based poverty alleviation will be | |

|Rural | |villages in the new rural areas, and poor households transform into |explored in the contiguous poor areas with special difficulties. | |

|Areas | |well-off households. The construction of new villages, featured industries,| | |

|(2011-202| |public services, capacity promotion and infrastructure are the top | | |

|0) | |priorities among the tasks of poverty alleviation. | | |

| |Targeted |the Four Regions (including the Qinbashan Mountain Region, the Wumengshan |The 6 counties covered by the Project are all determined by the state as regional counties in the |Yes |

| |Scope |Mountain Region,the Daliangshan Mountain Yi Ethnic Region, the |Wumeng Mountain contiguous poor areas with special difficulties. In these counties, poor residents | |

| | |Xiaoliangshan Mountain Yi Ethnic Region, the Tibetan Region ) determined by|are of a large number, the poverty incidence is high, the infrastructure is outdated, and so the | |

| | |the State and the Province is the main battlefield for the provincial |counties are vulnerable to natural disasters. In addition, the industrial products are of single | |

| | |poverty alleviation. Poverty alleviation and development shall be well |variety, low technology and extensive management. | |

| | |carried out in key counties and places where poor villages are | | |

| | |concentrated. | | |

| |Industry-b|Featured industries, poverty alleviation supported by science and |Through conditional grants, the Project pays the farmers’ specialized cooperatives in the project |Yes |

| |ased |technology, educational and cultural causes will be developed. |areas to intensively develop 7 local leading industries at a standardized, intensive and large | |

| |poverty |Infrastructure, public health, population service management, and social |scale, including sweet orange, walnut, konjac, potato and sheep. The Project assists the specialized| |

| |alleviatio|security will be improved. Furthermore, energy and ecological environment |cooperatives in registering green trademarks, guiding the logistics market, processing market and | |

| |n |construction will be emphasized. |trading market, extending the industrial chain and achieving the environmental pollution improvement| |

| | | |in the project implementation. | |

| |Social |Fix-point poverty alleviation will be strengthened, cooperation between the|The project fund consists of two parts, the loan from the World Bank and the fiscal fund for poverty|Yes |

| |Poverty |east and the west will be promoted in the poverty alleviation, and |alleviation from the government. The cooperation with the World Bank not only introduces the fund | |

| |Alleviatio|enterprises and all sectors of society will be mobilized to participate in |for the poverty alleviation, but also has a demonstration effect. The cooperation could guide more | |

| |n and |the poverty alleviation and learn from the theories and practices of the |international financial institutions to focus on the poverty issue in China and make investments on | |

| |Internatio|international community. Projects on poverty reduction will be carried out |the poor areas. Then the current under-investment could be resolved. At the same time, benefited | |

| |nal |to share experiences and facilitate the poverty reduction. |from the cooperation, China could learn from the international experiences and practices on | |

| |Cooperatio| |agricultural industrial development and farmer organizations, and explore the new system, new | |

| |n | |mechanism and new pattern with Chinese characteristics for the industry-based poverty alleviation on| |

| | | |the basis of the local conditions in the poor areas. | |

Table 1.2-5 Conformity with the Regional Development and Poverty Alleviation

Plan for the Wumeng Mountain Region (2011-2020)

|Plan |Planning Contents |Contents under the Project |Conform or |

| | | |Not |

| |Planning Scope |The 38 counties (cities, prefectures) in the adjacent areas of Sichuan |The 6 counties covered by the Project are all determined by the state as regional counties in |Yes |

|(2011-2020)| |Province, Guizhou Province and Yunnan Province, including 13 counties in |the Wumeng Mountain contiguous poor areas with special difficulties, including Xuyong County, | |

|Regional | |Sichuan Province, 10 counties (cities, prefectures) in Guizhou Province |Gulin County, Butuo County, Jinyang County, Meigu County, Zhaojue County. In these counties, | |

|Development| |and 15 counties (cities and prefectures) in Yunnan Province. And the 13 |poor residents are of a large number, the poverty incidence is high, the infrastructure is | |

|and Poverty| |counties in Sichuan Province are Xuyong County, Gulin County, Muchuan |outdated, so the counties are vulnerable to natural disasters. In addition, the industrial | |

|Alleviation| |Counties, Mabian Yi Autonomous County, Puge County, Butuo County, Jinyang|products are of single variety, low technology and extensive management. | |

| | |County, Meigu County, Zhaojue County, Xide County, Yuexi County, Leibo | | |

|Plan for | |County and Pingshan County. | | |

|the Wumeng | | | | |

|Mountain | | | | |

|Region | | | | |

|(2011-2020)| | | | |

| |Development |By 2015, the poor people shall be halved, and the mechanism and system in|The following are the overall goals of the Project: Farmers’ specialized cooperatives covering|Yes |

| |Goals |favor of poverty alleviation, coordinated development between environment|poor households will be set up in the contiguous poor areas with special difficulties. With | |

| | |and population shall be initially formed. By 2020, the targeted people of|supports, the market-oriented cooperatives will, on the basis of the local natural conditions | |

| | |poverty alleviation shall have abundant food and clothing, and enjoy |and resources, develop featured advantageous industries which are efficient, ecological, and | |

| | |compulsory education, basic medical care and housing. |high-value. Great efforts will be made to extend and perfect the industrial chains, and to | |

| | | |increase the share-cropping proportion for the average profit in the industrial chain. A | |

| | | |stable foundation will be built for poor household to increase their income, and “two | |

| | | |transformations” will be achieved as poverty-stricken villages transform into well-off | |

| | | |villages in the new rural areas, and poor households transform into well-off households. At | |

| | | |the same time, the pattern for the industry-based poverty alleviation and the innovative | |

| | | |mechanism for the industry-based poverty alleviation will be explored in the contiguous poor | |

| | | |areas with special difficulties. | |

| |Industrial |On the basis of market orientation and resource advantages, pillar |Based on the combination of long-term and short-term goals, reasonable industry selection is |Yes |

| |Development |industries with characteristics will be developed. Industry transfer will|made. The long-term industrial development of the project area is fully taken into account, | |

| | |be carried out by adjustable measures, industrial parks will be promoted |while the project households will increase their income and get rid of poverty in a short | |

| | |towards intensive development, industrial structure will be optimized, |term. In the selection and development of industries, both farmer income and ecological | |

| | |and circular economy will be developed. An industrial system featured |conservation are taken into account. Effective measures are taken to prevent water and soil | |

| | |with regional characteristics will be shaped to accelerate the regional |loss and desertification, and real effects are achieved in geological disaster prevention. | |

| | |economy. |After integrated comparison, 7 varieties, namely, sweet orange, walnut, white konjak, potato, | |

| | | |Liangshan medium wool, Meigu goat and beef cattle, are selected as pillar industries. | |

| |Improvement in |To raise rural residents’ living standard, substantial efforts will be |In the Project, rural roads will be constructed and hardened, water conservancy facilities |Yes |

| |the rural |made to improve the production and living conditions in rural areas, and |will be built, and modern green agriculture, such as drop irrigation, green prevention and | |

| |conditions for |develop small-size towns and villages. Priorities are given to “improving|control, will be developed. Besides, counterpart cattle insemination centers, counterpart | |

| |basic production|the rural production and living conditions”, “improving the living |farmer markets and trading markets will be established to improve the rural conditions for | |

| |and living |environment” and “developing small-size towns and villages”. |production and living. | |

| |Employment and |The employment structure will be adjusted to broaden employment channels |During the project construction, local labor will play a leading role, so the Project will |Yes |

| |the rural human |and improve employment services. Training resources of all types will be |promote the local employment. During the project implementation, through capital investment, | |

| |resource |integrated, and vocational skill training will be enhanced to improve the|trainings, seminars and other methods, the local people will be mobilized, the local | |

| |development |quality of rural workers and fully develop rural human resources. |employment will be promote, and farmers’ income will be increased. | |

| |Ecology |The priorities are given to protecting natural forest resources, |No basic farmland will be occupied in the project construction. Forage and fruit will be |Yes |

| |Construction and|returning farmland to forest or grassland, treaingt stony |planted on wild grass ground without competing for fertile farmland which could, to some | |

| |Environment |desertification, conserving aquatic resources, fostering protection |extent, relieve the regional water and soil loss and desertification. During the project | |

| |Protection |forest and treating water and soil loss. The core areas are the key |implementation, green prevention and control, and farmer training will be promoted; pesticides| |

| | |ecological function areas where limitations are imposed on exploration, |and chemical fertilizers will be reasonably utilized; forage planting and effective pollution | |

| | |and nature reserves where exploration is forbidden. These limitations and|prevention measures are put forward to relive diffused pollution. For nature reserves, | |

| | |bans are determined by state and provincial main functional areas. |practical management measures are proposed in the project design, construction, operation and | |

| | |Combined with disaster prevention and reduction and tackling climate |maintenance. | |

| | |change, ecological construction and environmental protection are enhanced| | |

| | |to build ecological safety barriers for the upper reaches of the Yangtze | | |

| | |River. | | |

1.3 Assessment Basis and Standard

1.3.1 Laws and Regulations

1) Law of the People’s Republic of China on Environmental Protection (effective on December 26, 1989);

2) Law of the People’s Republic of China on Appraising of Environment Impacts (effective on September 1, 2003);

3) Law of the People’s Republic of China on Prevention and Control of Pollution From Environmental Noise (effective on March 1, 1997);

4) Law of the People’s Republic of China on the Prevention and Control of Atmospheric Pollution (effective on September 1, 2000);

5) Law of the People’s Republic of China on Water Pollution Prevention and Control (amended and effective on June 1, 2008);

6) Law of the People’s Republic of China on the Prevention and Control of Environmental Pollution by Solid Wastes (effective on April 1, 2005);

7) Law of the People’s Republic of China on Water and Soil Conservation (amended and effective on March 1, 2011)

8) Law of the People’s Republic of China on Flood Control (effective on January 1, 1998);

9) Law of the People’s Republic of China on Forestry (amended and effective on April 29, 1998);

10) Law of People’s Republic of China on Land (effective on January 1, 1999)

11) Law of the People’s Republic of China on Water (effective on October 1, 2002);

12) Law of the People’s Republic of China on Cleaner Production Promotion (effective on January 1, 2003);

13) Law of the People’s Republic of China on Land Administration (effective on August 28, 2004);

14) Law of the People’s Republic of China on the Protection of Wildlife (amended and effective on August 28, 2004);

15) Law of the People’s Republic of China on Cultural Relics Protection (effective on June 29, 2013);

16) Law of the People’s Republic of China on Urban and Rural Planning (effective on January 1, 2008);

17) Law of the People’s Republic of China on Grassland (amended and effective on December 28, 2002);

18) Law of the People’s Republic of China on Animal Husbandry (effective on July 1, 2006);

19) Law of the People’s Republic of China on Agriculture (effective on March 1, 2003);

20) Law of the People’s Republic of China on Animal Epidemic Prevention (effective on January 1, 2008);

21) Law of the People’s Republic of China on Desert Prevention and Transformation (effective on January 1, 2002);

22) Law of the People’s Republic of China on Agricultural Product Quality Safety (effective on November 1, 2006);

23) Law of the People’s Republic of China on Food Safety (effective on June 1, 2009);

24) Law of the People's Republic of China on Conserving Energy (effective on April 1, 2008);

25) Law of the People's Republic of China on Circular Economy Promotion (effective on January 1, 2009).

2. Rules and Regulations on Environmental Protection

1) Regulations on the Administration of Construction Project Environmental Protection (effective on November 29, 1998);

2) Regulations on the Impact Assessment of Planned Environment (effective on October 1, 2009);

3) Detailed Rules for the Implementation of the Water Pollution Prevention and Control Law of the People's Republic of China (effective on March 20, 2000);

4) Regulations on Scenic and Historic Areas (effective on December 1, 2006);

5) Regulations on the Implementation of the Law of the People's Republic of China on Water and Soil Conservation (effective on August 1, 1993);

6) Regulations of the People's Republic of China on Wild Plants Protection (effective on January 1, 1997);

7) Regulations on the Implementation of the Law of the People's Republic of China on Land Administration (effective on January 1, 1999);

8) Regulations on the Protection of Basic Farmland (effective on January 1, 1999);

9) Regulations on the Implementation of the Law of People’s Republic of China on Forestry (effective on January 29, 2000);

10) Regulations on the Implementation of the Law of People’s Republic of China on Cultural Relics Protection (effective on July 1, 2003);

11) The List of Wild Animals of National Priority Protection(Effective on January 14, 1989);

12) Decision of the State Council on Several Issues Concerning Environmental Protection (GUOFA No. 31 [1996])

13) Decision of the State Council on Implementing the Scientific Outlook on Development and Reinforcing Environmental Protection (GUOFA No. 39 [2005])

14) Administrative Provisions on the Pollution Prevention of Drinking Water Source Reserves (amended version on December 22, 2010);

15) the Lists of State Protected Wild Plants (the First List) (August 4, 1999);

16) Several Opinions on Enhancing the Project Environmental Protection Administration in the Large-scale Development for the Western Region (GuoHuanFa No. 4 [2001]);

17) Notice for Environmental Impact Assessments on Environmental Noise During the Construction of Highways, Railways (Including Light Rails) and Other Projects (GuoHuanFa No.94 [2003])

18) The Temporary Act of Environmental Impact Assessment of Public Participating (GuoHuanFa [2006] No.28)

19) Classified Administration Catalogue of Construction Projects Environmental Impact Assessment (October 1, 2008)

20) Catalogue for Guiding Industry Restructuring (2011 Version) (Amendment) (issued by Order No. 9th of the National Development and Reform Commission, amended on February 16, 2013)

21) National Eco-Functional Regionalization (Ministry of Environmental Protection of the People’s Republic of China and Chinese Academy of Sciences, Public Announcement No.35 2008)

22) Several Opinions on the Implementation of the Most Rigid Cultivated Land Protection System in Road Construction (JiaoGongLuFa [2004]164)

23) Opinions on Further Implementations of Basic Farmland Protection (GZF [2005]No.196)

24) Circular on Further Standardization of the Environmental Impact Assessment (GuoHuanBan[2002]No.88, effective in 2002)

25) Notice on Further Strengthening of the Protection of Separated Drinking Water Sources (GuoHuanBan [2010] No.132)

26) Technology Guidelines on Contiguous Pollution Control and Treatment in Rural Areas (trail) (March, 2012)

27) Administrative Regulations of the People's Republic of China on Pesticides (No. 326 Order of the State Council of the People's Republic of China)

28) Guidelines on Safety Application of Pesticides (GB/T8321.1~8321.7)

29) Regulations on the Administration of Grass Seeds (No.5 Amendment, Ministry of Agriculture, 2013)

30) Regulations on the Implementation of the Food Safety Law of the People's Republic of China (No. 557 Order of the State Council of the People's Republic of China)

31) Regulations on Forest Pest and Disease Control of the People’s Republic of China (December 18, 1989)

32) Regulations on the Protection of Basic Farmland (January, 1999)

33) Opinions on Strengthening Protection of Ecological Environment in Rural Areas (Ministry of Environmental Protection, November 1999);

34) Provisions on Strengthening Township Enterprises’ Work on Environmental Protection (Ministry of Environmental Protection, Ministry of Agriculture, National Planning Commission, National Economy and Trade Commission, March 1997);

35) Classified Catalogue for the Environmental Impact Assessment of Construction Projects (October 1, 2008);

36) Guidance Catalogue for Industrial Restructuring (amended in 2013);

37) Announcement on “ Requirements on Compiling Abridged Environmental Impact Assessment Reports of Construction Projects” (Ministry of Environmental Protection, No. 51, 2012), August 15, 2012;

38) Circular on Issuing and Implementing “Catalogue for Limiting Land-use Projects (2012)” and “Catalogue for Banning Land-use Projects (2012)”, May 23, 2012;

39) Circular on Strengthening the Management of Environmental Impact Assessment of Construction Projects Funded by International Financial Organizations (Ministry of Environmental Protection, National Planning Commission, Ministry of Finance, People’s Bank of China, June 1993);

40) Circular of the State Council on Issuing and Distributing the Comprehensive Program of Energy Conservation and Emission Reduction under the “Twelfth Five-year Plan” (GUOFA [2006] No. 26, August 31, 2011);

41) Circular on Further Strengthening the Environmental Impact Assessment Management and Controlling the Environmental Risks (HuanFa [2012] No. 77);

42) Circular on Strengthening the Risk Prevention and Environmental Impact Assessment Management (HuanFa [2012] No. 98)

43) Opinions of the State Council on the Emphases of Environmental Protection (GUOFA [2011] No. 35);

44) Circular on Strengthening River Pollution Prevention and Control (HuanFa [2007] No. 201)

45) Approval of the State Council for the Air Pollution Prevention and Control in Key Areas under the “Twelfth Five-year Plan” (GUOHAN [2012] No. 146)

46) Circular on Issuing and Distributing “Air Pollution Prevention and Control in Key Areas under the ‘Twelfth Five-year Plan’” (HuanFa [2012] No. 130)

47) Announcement on Releasing the Modification of “Standards for Pollutants Discharged by Urban Wastewater Treatment Plant (GB18918-2002)” (Announcement No. 21 by State Environmental Protection Administration in 2006);

48) Opinions on Strengthening Industrial Water Conservation (GuoJingMaoZiYuan [2000] No. 1015);

49) The National Outline of Ecological Environmental Protection (GUOFA [2000] No. 38);

50) Regulations for the Implementation of the People’s Republic of China on the Protection of Terrestrial Wildlife (effective on March 1, 1992);

51) Regulations for the Implementation of the People’s Republic of China on the Protection of Aquatic Wildlife (effective on March 1, 1992);

52) Regulations for the Planning and Construction of Villages and Towns (Order No. 116 by the State Council of the People’s Republic of China);

53) Regulations for the Conservation of Famous Historic and Cultural Cities, Towns and Villages (Order No. 524 by the State Council of People’s Republic of China);

54) Opinions of the State Council on Promoting the Sustainable Development of Animal Husbandry (GUOFA [2007] No. 4);

55) Circular on Further Promoting the Pilot Environmental Supervision of Construction Projects (HuanBan [2012] No. 5);

56) Instructions on the Pilot Compulsive Liability Insurance for Environmental Pollution (HuanFa [2013] No. 10);

57) Circular of the State Council on Issuing and Distributing the Air Pollution Prevention Action Plan (GUOFA [2013] No. 37);

58) Guidelines for the Government Information Publicity on the Environmental Impact Assessment of Construction Projects (Trial) (HuanBan [2013] No. 103);

59) Circular of the State Council on Issuing and Distributing the National Principal Functional Area Planning (GUOFA [2010] No. 46);

60) Letter of the State Council on the Division of Quarantine of Fruits, Flowers, Chinese Medicinal Materials and Other Plants (GuoBanHan [1997] No. 19);

61) Measures for the Administration of Production Permits on Feedstuff and Feed Additives (Amended Order No. 5 by the Ministry of Agriculture);

62) Regulations for the Administration of Breeding Stock and Poultry of People’s Republic of China (Order No. 153 by the State Council).

1.3.3 Local Regulations and Rules on Environmental Protection of Sichuan Province

1) Regulations on Environmental Protection of Sichuan Province (Amended on September 24, 2004)

2) Implementation Measures of Law of the People's Republic of China on Appraising of Environment Impacts of Sichuan Province (Effective on January 1, 2008)

3) Regulations on the Protection of Drinking Water Source of Sichuan Province (Effective on January 1, 2012)

4) Implementation Measures of Land Administration Law of the People's Republic of China of Sichuan Province (Effective on December 10, 1992)

5) Regulations on the Protection of World Heritage of Sichuan Province (Effective on April 1, 2002)

6) Implementation Measures of the Law of the People's Republic of China on the Prevention and Control of Atmospheric Pollution of Sichuan Province (Effective on September 1, 2002)

7) Regulations on the Administration of Tourism of Sichuan Province (Effective on July 24, 2003)

8) Implementation Measures of Water Law of the People's Republic of China of Sichuan Province (Effective on July 1, 2005)

9) Circular on Strengthening the Protection of Drinking Water Sources by the Sichuan Provincial People’s Government (CHUANFUHAN No.58, 2006)

10) List of Special Protected Wild Animals of Sichuan Province (March 12, 1990)

11) List of Newly Included Special Protected Wild Animal of Sichuan Province (CHUANFUFA No.37, 2000)

12) Detailed rules of the Protection of Basic Farmland of Sichuan Province (CHUANFULNG No.77, 1996)

13) Circular of the Delimitation of Urban Centralized Drinking Water Source Protecting Area From Sichuan Provincial People’s Government office Department (CHUANBANHAN No.26, 2010)

14) Regulations on the Protection of Scenic Area of Sichuan Province (Effective on August 1. 2010);

15) Regulations for the Solid Waste Pollution Prevention of Sichuan Province (Effective on January 1, 2014);

16) Regulations for the Administration of Nature Reserves in Sichuan Province (Effective on January 1, 2014);

17) Circular of the People’s Government of Sichuan Province on Issuing and Distributing the Implementation Regulations for the Air Pollution Prevention Action Plan of Sichuan Province (FuFa[2014] No.4);

18) Circular on Further Strengthening the Environmental Supervision of the Source Reserves of Drinking Water Sources (ChuanHuanFa [2014] No. 54);

19) Circular on Implementing the Regulations for the Protection of Drinking Water Sources of Sichuan Province (ChuanHuanBanFa [2012] No. 69);

20) Circular on Issuing and Distributing the “Sichuan Province Implementation Plan under the ‘Twelfth Five-year Plan’ for Air Pollution Prevention in Key Areas” (ChuanHuanFa [2013] No. 99);

21) Circular of the General Office of the People’s Government of Sichuan Province on Strengthening Haze Pollution Prevention (ChuanBanFa [2013] No. 32);

22) Measures for Preventing the Exhaust Pollution by Motor Vehicles in Sichuan Province (Effective on March 1, 2013);

23) Measures for Administrative Responsibility Investigation of Environmental Pollution Accidents in Sichuan Province (Effective on April 1, 2005);

24) Measures for Hazardous Waste Pollution Prevention in Sichuan Province (Effective on January 1, 2014);

25) Measures for the Administration of Radioactive Contamination Prevention in Sichuan Province (Effective on March 4, 1999);

26) Circular on the Pollution Prevention and Emission Reduction of Large-scale Livestock and Poultry Industry (NanFuBanFa [2014] No. 36);

27) Opinions on Implementing the Pollution Prevention Regulations for Large-scale Livestock and Poultry Cultivation (NanShiHuan [2014] No. 102);

28) Opinions on Strengthening Environmental Protection and Enhancing Environmental Comprehensive Treatment in Urban and Rural Areas (ChuanHuanFa [2011] No. 58);

29) Circular of the Sichuan Environmental Protection on Further Strengthening the Construction and Administration of the Contiguous Environmental Improvement Program (ChuanHuanFa [2014] No. 88);

30) Rural Environmental Comprehensive Improvement Demonstration Program of Sichuan Province (2012-2014);

31) Interim Procedures for Rural Contiguous Improvement Demonstration Program of Sichuan Province.

1.3.4 Technical Standards of Environmental Impact Assessment

1) Technical Guidelines For Environmental Impact Assessment — General Programme(HJ2.1-2011)

2) Guidelines For Environmental Impact Assessment — Atmospheric Environment(HJ2.2-2008);

3) Technical Guidelines For Environmental Impact Assessment — Surface Water Environment (HJ/T2.3-93);

4) Technical Guidelines For Noise Impact Assessment(HJ2.4-2009)

5) Technical Guidelines for Environmental Impact Assessment - Groundwater Environment (HJ610-2011)

6) Technical Guideline For Environmental Impact Assessment — Ecological Impact(HJ19-2011);

7) Technical Guidelines For Environmental Risk Assessment on Projects(HJ/T169-2004)

8) Quality Standard For Ground Water(GB/T14848-93);

9) Emission Standard of Environment Noise For Boundary of Construction Site(GB12523-2011);

10) Technical Specifications To Determinate the Suitable Areas For Environmental Noise of Urban Area (GB/T157.1690-94);

11) Integrated Wastewater Discharge Standard (GB8978-1996);

12) Ambient Air Quality Standard (GB3095-1996);

13) Integrated Emission Standard of Air Pollutants (GB16297-1996)

14) Environmental Quality Standards For Surface Water(GB3838-2002);

15) Standards For Irrigation Water Quality (GB5084-2005);

16) Environmental Quality Standard For Noise (GB3096-2008);

17) Technical Code on Soil and Water Conservation of Development and Construction Projects (GB50433-2008);

18) Control Standards For Soil and Water Loss on Development and Construction Projects (GB50434-2008);

19) Technical Specifications For Pollution Treatment Projects of Livestock and Poultry Farms (HJ497-2009);

20) Technical Standard of Preventing Pollution For Livestock and Poultry Breeding (HJ/T81-2001);

21) Management Measures of Preventing Pollution For Livestock and Poultry Breeding (Ministry of Environmental Protection, 2001);

22) Technical Requirement For Non-Hazardous Treatment of Animal Manure(NY/T 1168-2006);

23) Technology Code For Land Application Rates of Livestock and Poultry Manure(GB/T25246-2010);

24) Technology Code For Environment Quality and Sanitary Control In Livestock and Poultry Farms(NY/T1167-2006);

25) Regulations on Scaled Livestock Cultivation Pollution Control (the State Council Order No.643)

26) Local Agricultural Standards of Liangshan Yi Autonomous Prefecture—Meigu Sheep (DB5134/T185-2009)

27) Implementation Rules for the Epidemic Prevention Regulations of Domestic Livestock and Poultry (Order No. 10 of Ministry of Agriculture in 1992);

28) Regulations for Major Animal Epidemic Emergencies (Order No. 450 by the State Council);

29) Regulations for Administration of Veterinary Medicine (Order No. 404 by the State Council);

30) Regulations for Administration of Feedstuff and Feed Additives (Order No. 609 by the State Council);

31) Feeding Standards of Mutton Sheep (NYT 816-2004);

32) Hygienic Standards of Excrement Hazardous-free Treatment (GB7859-87);

33) Code of Epidemic Prevention for Feeding Beef Cattle (NYT 5151-2002);

34) Technical Specifications for Hygienic Operation in Circulating Animal Products (SBT10395-2005);

35) Circular on Issuing and Distributing “Disposal Methods of Animals Dying of Disease or Dysoemia (Trial)” (NongYiFa[2005] No. 25);

36) Circular on Releasing “Technical Policy for Hazardous Waste Pollution Prevention” (HuanFa [2001] No. 199);

37) Directory of National Hazardous Wastes (Order No. 1 of the Ministry of Environmental Protection);

38) Catalogue of Medicines Forbidden in Feedstuff and Drinking Water for Animals (Announcement No. 176 of the Ministry of Agriculture);

39) Specifications for Usage of Feedstuff and Medicine Additives (Announcement No. 168 of the Ministry of Agriculture);

40) Pollution Control Standards for the Storage Sites and Disposal Sites of General Industrial Wastes (GB18599-2001);

41) Environmental and Hygienic Standards for Construction Sites (JGJ146-2004);

42) Technical Specifications for Environmental Pollution Control in Livestock and Poultry Farms (NYT1169-2006);

43) Technical Specifications for Sterilization of Livestock and Poultry Farms (DB31T432-2009);

44) Veterinary Medicine Code of the People’s Republic of China and Guidelines of Veterinary Medicine (2010);

45) Quality Standards of Veterinary Medicine by the Ministry of Agriculture (2006);

46) Quality Standards of Imported Veterinary Medicine by the Ministry of Agriculture (2006);

47) Specifications of Veterinary Medicine (1992);

48) Hygienic Standards of Feeds (GB13078.2-2006);

49) Good Agricultural Practices (GB/T 20014.7-2008);

50) Pollution-free Food Usage Guidelines for Livestock and Poultry Feeds and Feed Additives (NY 5032-2006);

51) Pollution-free Food Quality of Drinking Water for Livestock and Poultry (NY 5027-2008);

52) Pollution-free Food Quality of Processing Water for Animal Products (NY5028-2008);

53) Pollution-free Food Management Standards for Mutton Sheep (NY T 5151-2002);

54) Design Specifications for Methane Projects in Large-scale Livestock and Poultry Farms (NYT1222-2006);

55) Biological Safety Disposal Regulations for Diseased Animals and Diseased Animal Products (GB16548-2006);

56) Environmental Quality Standards for Livestock and Poultry Farms (NY/T 388-1999);

57) Technical Guidelines on Environmental Safety Application of Chemical Fertilizer (HJ555-2010);

58) Farmland Environmental Quality Evaluation Standards for Edible Agricultural Products (HJ332-2006);

59) Environmental Quality Evaluation Standards for Farmland of Greenhouse Vegetable Production (HJ333-2006);

60) Standards for Organic Fertilizers (NY 525-2002);

61) Standards for Organic-Inorganic Compound Fertilizers (NY481-2002);

62) Standards for Organic-Inorganic Compound Fertilizers (GB18877-2002).

1.3.5 Policies and Guidelines of World Bank

1) Operation Policy 4.01 Environmental Assessment(OP 4.01);

2) Operation Policy 4.04 — Natural Habitat(OP4.04);

3) Operation Policy 4.09--Pest Management (OP4.09);

4) General Environmental, Health, and Safety Guidelines(EHS Guidelines);

5) Environmental, Health, and Safety Guidelines for Mammalian Livestock Production

6) Environmental, Health, and Safety Guidelines For Annual Corp Production

7) Environmental, Health, and Safety Guidelines For Food and Beverage Processing

1.3.6 Project Schematization and Technical Documents

1) The Twelfth Five-Year Plan For National Economic and Social Development of The People’s Republic of China

2) The Outline of the Twelfth Five-Year Plan For National Economic and Social Development of Sichuan Province

3) Outline for Development-oriented Poverty Reduction for China’s Rural Areas (2011-2020)

4) Outline for Development-oriented Poverty Reduction for Sichuan’s Rural Areas (2011-2020)

5) Regional Development and Poverty Alleviation Plan for the Wumeng Mountain Region (2011-2020)

6) The Outline of the Twelfth Five-Year Plan (2011-2015) for National Economic and Social Development of Liangshan Yi Autonomous Prefecture

7) The Walnut Industry Development Plan of Gulin County (2013-2020)

8) The Environmental Protection Plan of the “12th Five-Year Plan” of Gulin County (2011-2015)

9) The Prevention and Cure Plan of the Water Pollution of Gulin River (2011-2020)

10) The Livestock Industry “12th Five-Year Plan” of Zhaojue County

11) The General Planning Report of State-Level Natural Reserve of Rare and Special Fish of Upstream Yangtze River

12) Feasibility Study Report on the Sichuan Province Demonstration Pilot Project of China’s Poor Areas Industry-based poverty alleviation and Development.

13) Technical Standards of “Demonstration Pilot Project of China’s Poor Areas Industry-based poverty alleviation and Development” of Sichuan Province (Sichuan Provincial Poverty Alleviation office, Foreign funded Project Administration Center, September, 2013)

14) World Bank Phase Six Poverty Alleviation Project Environmental Impact Assessment Outline

1.3.7 Assessment Standard

According to the environmental functional district planning and the specific location of the project area, quality standard and emission standard are selected for all environmental elements. The assessment is implemented in accordance with the environmental standard recognized by the regional environmental protection bureaus (in accordance with the industrial emission standard if any).

1. Environmental Quality Standard for Surface Water

1) Quality standard: the water body in the assessment area is evaluated according to the Category III Standard in the Environmental Quality Standard for Surface Water (GB3838-2002). The specific standard values are shown in Table 1.3-1.

Table 1.3-1 Environmental Quality Standard for Surface Water (Extract)

Unit: mg/L (except pH)

|Item |pH |COD |BOD5 |DO |Petroleum |NH3-N |Potassium Permanganate |

| | | | | | | |Index |

2) Emission Standard: the Project is located in rural areas. Currently, there is no any sewage treatment facilities except for septic tanks. In the Project, the wastewater in the construction period is utilized in the farm irrigation after the primary treatment. The cultivation wastewater in the operation period is pre-treated and utilized in farmland irrigation. The wastewater from the orange commercialized production line and white konjak processing plant, and sanitary wastewater may be treated on the basis of the specific situations and counterpart environmental protection facilities. Where there are treatment facilities provided by wastewater treatment stations, the Primary Standard in the Integrated Wastewater Discharge Standard (GB8978-1996) is adopted for the assessment, where there is no wastewater treatment station, Standards for Irrigation Water Quality (GB5084-2005) is adopted for the assessment.

Table 1.3-2 Integrated Wastewater Discharge Standard (Extract)

Unit: mg/L (except pH)

|Item |pH |COD |BOD5 |Animal and |Petroleum |NH3-N |SS |

| | | | |Vegetable Oil | | | |

Table 1.3-3 Standards for Irrigation Water Quality (Extract)

Unit: mg/L (except pH)

|Crops |pH |COD |BOD5 |Water |Number of Fecal Coliforms (per 100ml)|SS |

| | | | |Temperature | | |

|Dry Farming | |200 |100 |35 |4000 |100 |

|Vegetable | |100a,60b |40a,15b |35 |2000 a,1000b |60a,15b |

Note: a. processed, cooked and peeled vegetables; b. uncooked vegetables, melons and herbal fruits

2. Ambient Air Quality Assessment Standards

1) Quality Standard

The ambient air quality in the project area is evaluated according to the Secondary Standard in the Ambient Air Quality Standards (GB3095-2012) and the maximum allowable concentration of hazardous substance in residence districts set in the Sanitary Standard for Industrial Enterprise Design (TJ36-79). The related standard values are shown in Table 1.3-4.

Table 1.3-4 Assessment Standards for Current Ambient Air Quality

Unit: ug/m3

|Assessment Factor |Daily Average |Hourly Average |Maximum Allowable |Note |

| | | |Concentration/ once | |

|SO2 |150 |500 |/ |GB3095-2012 |

| | | | |Secondary Standard in GB3095-2012 |

|NO2 |80 |200 |/ |GB3095-2012 |

| | | | |Secondary Standard in GB3095-2012 |

|PM10 |150 |/ |/ |GB3095-2012 |

| | | | |Secondary Standard in GB3095-2012 |

|TSP |300 |/ |/ |GB3095-2012 |

| | | | |Secondary Standard in GB3095-2012 |

|H2S |/ |/ |0.01 |TJ36-79 |

2) Emission Standard

The project emits exhaust gases according to the Secondary Standard in the Emission Standards for Odor Pollutants (GB14554-1993) and the Secondary Standard in the Integrated Emission Standard of Air Pollutants (GB16297- 1996). The specific standard values are shown in Table 1.3-5.

Table 1.3-5 Project Emission Standards of Air Pollutants

Unit: mg/m3, the odor concentration is dimensionless

|Pollutant |Maximum Allowable Emission Concentration |Concentration Limits on Unorganized |Standard |

| |(Organized, 15m Exhaust Funnels) |Emission | |

| |Concentration (mg/m3) |Rate (kg/h) |Monitory Points |(mg/m3) | |

| | | | |Concentration (mg/m3)| |

|NO2 |240 |0.77 | |0.12 | |

|TSP |120 |3.5 | |1.0 | |

|Ammonia |/ |4.9 |Boundary |1.5 |GB14554-1993 |

| | | |Concentration | |Secondary Standard |

| | | |Limits | | |

|Sulphureted |/ |0.33 | |0.06 | |

|Hydrogen | | | | | |

|Odor |/ |2000 | |20 | |

|Concentration | | | | | |

The trading market of the project is equipped with a dining zone. The dining hall emits lampblack according to the Emission Standard of Cooking Fume (Trial) (GB18483-2001). The specific standard values are shown in Table 1.3-6 and Tale 1.3-7.

Table 1.3-6 Emission Standard of Cooking Fume (GB18483-2001)

Scale Division of Catering Businesses

|Scale |Small Scale |Middle Scale |Large Scale |

|Number of Standard Kitchen Ranges |≥1, ................
................

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