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1. Project Summary and Relationship to China's Agenda 21 This project seeks to control the water pollution in the Beidaihe area through formulation of a pollution control plan and construction of a wastewater treatment plant. It plans to protect the ecosystem in the waterbody and promote tourism and fishery in the area. This project is based on programme areas 14C and 14F of China's Agenda 21, and is related to programme areas 12A and 10C.

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2. Background

Located to the west of the Bohai Sea, Beidaihe area in Qinhuangdao city is a well-known summer resort and national scenic spot with agreeable climate. Since the founding of the Peopleís Republic of China, it has been the office location of the central government in summer. As a result, it is also known as the ìSummer Capital". In the east, Beidaihe area adjoins Coastal Forest Park which is a national nature reserve and the Qinhuangdao Marine Sports Field which is a national sports training centre. In the west, it adjoins the famous Nandaihe Golden Coastal Tourist Area and Changli Golden Coastal Nature Reserve, which is also a national marine nature reserve. The coastal area of Beidaihe area is an excellent place which has a soft sand beach and calm tides. On the other hand, Beidaihe area has rich offshore fishery resources, including some rare animals such as lancelet and stichopus japonicas. In particular, the reserve of lancelet is more than 13,000 tons, which can bring significant scientific and economic value. Therefore, it is necessary to maintain a good ecological environment in the Beidaihe area. In recent years, however, the discharge of urban sewage increased rapidly due to the speedy development of industry and tourism. At present, the Beidaihe area and its adjacent seaport areas discharge 77,549,000 t/a of wastewater. The existing treatment facilities can only treat 22% of the total sewage discharged, and 230,000 t/d of sewage is discharged into the sea directly without any treatment. As a result, the marine environment is seriously polluted. The monitoring data show that the concentration of dissolved organic matter (DOM) and dissolved oxygen (DO) of sea water in the outlets of the Beidaihe River and the adjacent Daihe River, the Yanghe River, and the Yinmahe River all can not meet the Class III Sea water Quality Standard. The phosphorus and nitrogen content of sea water in 33% of the offshore areas can not meet the standard, and the state index of sea water eutrophication reaches 0.55. Therefore, the marine plankton diversity index has decreased from 0.686 in 1978 to 0.503. The annual fishing capacity of high-quality fishes and shrimp has decreased from more than 7,000 tons in the 1960ís to less than 100 tons currently; and three red tides occurred in 1990, 1991 and 1995 respectively. The geometric average of coliform bacteria of the sea water in the bathing beach is close to and sometimes even exceeds the standard of 10,000 per litre, which place the sea water here at a medium pollution level. Evidently, controlling the water pollution in the Beidaihe area is extremely urgent. The key to solve the water pollution problem in the Beidaihe area is the treatment of 180,000 t/d sewage discharged from Beidaihe Western Recuperative District, Nandaihe Tourism Development District, Seaport Western Industrial District, Qinhuangdao Economic and Technological Development District and Baitaling Cultural District. This project will construct the Beidaihe Western Sewage Treatment Plant and the water reuse system. The plant will explore a cost-effective treatment process and will provide a model for the follow-up wastewater treatment project. The project will have significant impact on improving the natural environment of the Beidaihe area, conserving its tourism resources and promoting sustainable tourism and fishery. It has been incorporated into the Ninth Five-Year Plan and Long-term Targets of Qinhuangdao city for the Year 2010. The preparation of this project was started in 1992, which included the environmental impact assessment and feasibility study for the construction of Beidaihe Eastern Sewage Treatment Plant and Beidaihe Western Sewage Treatment Plant. The project proposal for Beidaihe Western Sewage Treatment Plant was ratified by the Planning Commission of Hebei province in December 1995.

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3. Objectives

3.1 Long-term objective To establish and improve the water pollution control system and water environment monitoring system of the Beidaihe area. In addition, the project aims to maintain the aquatic ecosystem equilibrium and promote the sustainable development of tourism and marine fishery.

3.2 Immediate Objectives * To control the quantity of sewage discharged into the sea water by issuing sewage discharge permits; * To ensure the sea water quality in the offshore area meets the Class II Sea water Quality Standard and the water quality of the outlets of rivers meets the Class III Sea water Quality Standard; * To control the sea water quality in the resort so as to meet the standard of clean water.

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4. Outputs and Activities

4.1 Formulation of strategy for water pollution control in the Beidaihe area and further preparation for the construction of a sewage treatment plant * On the basis of the Overall Planning for Qinhuangdao city which was approved by the government of Hebei province in 1993, formulate a comprehensive strategy for water pollution control in the Beidaihe area. The strategy will be incorporated into the urban construction agenda for the Ninth Five-Year Plan, and would be gradually implemented; * Review the existing environmental impact assessment and the feasibility study report on the sewage treatment project in the Beidaihe area; * Adjust the industrial structure and reform or phase out factories which pollute the environment seriously. The project also aims to decrease the generation and discharge of industrial wastewater. Monitoring Indicators: completion of the comprehensive strategy for water pollution control in the Beidaihe area, incorporating it into the local economic development plan for implementation; decrease of the sewage discharge by 10 million t/a before the year 2000 and by 20 million t/a before the year 2010. Implementing Agencies: the Planning Commission and Urban Construction Bureau of Qinhuangdao city

Time Schedule: January 1997 - December 1997

4.2 Pilot plant for sewage treatment and water reuse in the Beidaihe area * Construct the secondary Beidaihe Western Sewage Treatment Plant with a treatment capacity of 80,000 m3/d using conventional aeration or oxidation ditch process; * Construct the wastewater reuse system with the reuse rate of 30%. Monitoring indicators: completion of the sewage treatment plant with the removal efficiency as: BOD5 (80%, CODCr(71%, SS(80%, the quality of the effluent as: BOD5(30mg/l, CODCr (100mg/l, SS(30mg/l; completion of the wastewater reuse system, and the water quality of its effluent to meet the requirements on industrially reusable water. Implementing Agency: Government of Qinhuangdao city

Time Schedule: January 1997 - December 1999

4.3 Monitoring and management system of water quality * Build a monitoring and management system of water quality in the Beidaihe area, based on the existing conditions of Qinhuangdao Environmental Monitoring Station and Qinhuangdao Marine Monitoring Station; * Carry out personnel training on water quality monitoring and pollutant discharge monitoring; * Conduct a study on water quality monitoring technologies, and issue the forecast of water quality tendency periodically. Monitoring indicators: completion the water quality monitoring network in the Beidaihe area, and issues of the forecast on water quality tendency periodically. Implementing Agencies: the Environmental Protection Bureau of Qinhuangdao city and Government of the Beidaihe area

Time Schedule: January 1997 - December 1999

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5. Inputs

5.1 Chinese Inputs Chinese inputs mainly include the transportation and office facilities, domestic experts and technicians, technical data and monitoring data and part of the construction investment for the sewage treatment plant.

5.2 International Inputs International inputs mainly include key technology and equipment for the sewage treatment plant, water quality monitoring instrument, training of Chinese staff, and partial funding for the project construction. 5.3 Budget The total capital needed for this project is US$ 15 million. The Chinese side will raise US$ 11 million from domestic sources, while foreign aid and investment will cover the other US$ 4 million.

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Table 1. Budget by Item (in million US dollars)

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Table 2. Budget by Output (in million US dollars)

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6. Benefits This project will improve the water environment in the Beidaihe area and adjacent areas. Upon the completion of this project and the follow-up project of the Beidaihe Eastern Sewage Treatment Plant, the number of people who will come to the Beidaihe area for vacation and tour will increase from 6,350,000 in 1995 to 8,000,000 in 2000. The project will be beneficial to the propagation of high-quality marine fishes, particularly rare species, and increase the fishing capacity of fishes and shrimp. It is estimated that marine fishery output value will increase from 100,000,000 yuan RMB at present to more than 200,000,000 yuan RMB in the year 2000 and more than 400,000,000 yuan RMB in the year 2010. The marine environment of the national sports base-Qinhuangdao Marine Sports Ground and the national marine nature preservation zone-Changli Golden Coastal Nature Preservation Zone will be protected. The reused water will be used for industry, agriculture and garden, and this will save a large amount of fresh water resources and mitigate the problem of urban water shortage.

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7. Risks The unfavourable factor which can influence the project implementation is the difficulty for the local government to continue to raise the funds required. This difficulty has hindered the implementation of the project since its approval in 1992. Now, there is a way to raise the domestic funds. First, according to Qinhuangdao Cityís special policies approved by the country, part of the fund can be raised by collecting an accessory fee for Qinhuangdao Seaport; Second, local financial support can cover some costs; Third, fee for non-gratuitous use of urban infrastructure can be levied to support the project. Finally, the remaining costs will be covered by loans. Therefore, it is hopeful to overcome this difficulty.

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