TEMPLATE FOR PROJECT CONCEPT NOTE (PCN)documents.worldbank.org/curated/en/307771468263349027/... · Web viewInventory of PCB equipment in non-power sectors in eight provinces of China

Document ofThe World Bank

Report No: 58720

RESTRUCTURING PAPER

ON A

PROPOSED PROJECT RESTRUCTURING

OF

PCB MANAGEMENT AND DISPOSAL DEMONSTRATION GEF PROJECT

(GRANT TF056008)

(BOARD DATE: DECEMBER 15, 2005)

TO THE

PEOPLE’S REPUBLIC OF CHINA

DECEMBER 22, 2010

ABBREVIATIONS AND ACRONYMS

FECO Foreign Economic Cooperation Office GA Grant AgreementGEF Global Environment FacilityGEO Global Environment ObjectiveMEP Ministry of Environmental ProtectionPCB Polychlorinated BiphenylTDU Thermal Desorption Unit

Regional Vice President: Mr. James W. Adams, EAPVPCountry Director: Mr. Klaus Rohland, EACCSSector Manager: Mr. Ede Jorge Ijjasz-Vasquez, EASCS

Task Team Leader: Ms. Solvita Klapare, EASER

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CHINA PCB MANAGEMENT AND DISPOSAL DEMONSTRATION PROJECT

P082993CONTENTS

A. SUMMARY.......................................................................................................................... 5B. PROJECT STATUS............................................................................................................ 5C. PROPOSED CHANGES..................................................................................................... 5ANNEX 1: RESULTS FRAMEWORK AND MONITORING.................................................9ANNEX 2: IMPLEMENTATION PLAN................................................................................15

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PCB MANAGEMENT AND DISPOSAL DEMONSTRATION PROJECT

RESTRUCTURING PAPER

A. SUMMARYThe proposed changes include: (a) modifications of the intermediate results targets and description of project activities; (b) a reallocation of Grant proceeds; and (c) a second extension of the Grant closing date from December 31, 2010 until December 31, 2011. These changes are necessary to account for initial project implementation delays and changes in the actual circumstances identified during project implementation. In light of recent progress achieved, these changes are proposed to allow the project to complete its activities and meet its development objectives.

B. PROJECT STATUSThe project has experienced significant implementation delays due to: (i) the failure of the first round procurement of the Thermal Desorption Unit (TDU); (ii) the loss of the selected site for the TDU due to objections by local population and the corresponding delay in locating a suitable alternative site; (iii) delays in issuing a license for handling PCB wastes and operating TDU (a withdrawal condition for PCB clean-up and disposal of low-contaminated PCB wastes); and (iv) delays in the refitting, test-burn and licensing of the national incinerator facility at Shenyang (a withdrawal condition for disposal of highly contaminated PCB wastes).

In June 2010, the Bank agreed to the Government’s request to extend the Grant closing date for six months, until December 31, 2010 to give the Recipient time to develop a detailed action plan to complete important project activities and meet key milestones. (See Restructuring Paper, Report No. 58377 of June 28, 2010.) Since July 2010, the Recipient has made good progress towards achieving the agreed milestones including: installation of the TDU facility has been completed, and the preparations for the trial

run are being finalized; licensing procedures and issuing authority for handling PCB wastes have been

clarified; approvals authorizing Hangzhou DADI Environmental Co., Ltd. to clean up the first

two PCB-contaminated sites have been issued by the Zhejiang Province Environmental Protection Department and to operate the TDU facility issued by the Ministry of Environmental Protection (MEP);

MEP has issued a license authorizing Shenyang Center to operate PCB Incinerator; clean-up of the first PCB-contaminated sites has been completed; preparations for the next two sites are being finalized; and a satisfactory action plan covering January 2011 – December 2011 has been

submitted.

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C. PROPOSED CHANGES

Results/indicators. Changes are required in the Results Framework, particularly the Intermediate Results targets, to reflect the actual number of PCB contaminated sites identified in Zhejiang Province and changes in the process of adopting regulatory frameworks (for details see Annex 1). The changes include:

Component 2, intermediate results indicator “Technical standards issued on PCBs in surface water, groundwater, air, and soil” proposed to be dropped and two new indicators “National Regulations issued on PCB management and disposal” and “National PCB pollution control standards” to be added. These changes reflect the change in PCB regulatory framework. Although studies have been conducted on environmental quality standards for PCB in surface water, ground water, soil and air, these standards are not likely adopted before the proposed new closing date. Instead, the Government plans to adopt integrated environmental quality standards for all chemicals at the same time (including PBC), after analysis of financial implications of adopting such standards is carried out.

Component 3, intermediate result “All (estimated 56) temporary PCB storage sites in Zhejiang Province identified” proposed to be changed to “All PCB storage sites in Zhejiang Province identified”; intermediate results indicator “10 In-use large PCB transformers installed before 1980 decontaminated and more transformers tested” proposed to be dropped. This change reflects the actual number of sites identified in Zhejiang Province and PCB contaminated transformers. Identification of actual sites requiring clean-up and PCB containing transformers was part of project activities. After pre-monitoring of the sites, of 56 were estimated at appraisal, 16 have been identified as requiring clean-up. Sixteen other sites are to be confirmed, depending on the results of ongoing pre-monitoring and decisions of local authorities on land use. It appears that the remaining 24 sites do not have PCB contamination or clean-up of these sites is not possible due to various reasons outside of project control. Also, after two-round testing of transformers in Zhejiang and Liaoning Provinces, no PCBs were found in the transformers. Component 4, target values for intermediate results indicators “Incinerator operational records confirm Zhejiang Province’s approx 22,500 PCB-containing capacitors disposed of in an environmentally sound way”, “Incinerator operational records confirm Zhejiang Province’s approx 250 tons of PCB oil disposed of in an environmentally sound way” and “Incinerator operational records confirm Zhejiang Province’s approx 20,000 tons of PCB-contaminated soils disposed of in an environmentally-sound way” proposed to be revised.These changes are required to reflect the actual number of sites identified in Zhejiang Province. Given the decrease in number of actual sites requiring clean-up and based on early experiences from clean-up of the first pilot sites, a reasonable target is 2,000 PCB- capacitors (compared to 22,500 originally estimated) for 16 identified sites; 100 t of PCB- oil (compared to 250 t); and 13,000 t of PCB-contaminated soil (compared to 20,000 t).

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None of these changes affect the PDO, or PDO indicators, which remain relevant and achievable, if the Grant closing date is extended.

ComponentsThe component 3 activities need to be modified to reflect the actual circumstances identified during the project implementation. These modifications include:

Component 3 - Decontamination of transformers will not be funded from Grant proceeds, as no PCB containing transformers have been found in either Zhejiang or Liaoning Provinces. This activity was planned to be funded by the Grant provided by the Italian Government. The Grant funds for this activity have been reallocated to finance technical assistance for the development of Zhejiang PCB contaminated sites clean-up plans, supervision of site clean-up works, and training activities.

At the same time, transportation of highly contaminated PCB wastes from Zhejiang Province to the Shenyang incinerator needs to be added as a component activity. Although transportation was identified in the Project Appraisal Document as a project activity, it was erroneously excluded from the Project Description in the Grant Agreement (GA). It is therefore proposed to amend the GA to include this important activity. The appropriate change in wording is shown in the reallocation table below, under Category 3(a).

Financing. A reallocation of Grant proceeds is proposed as shown below. The key reallocation is US$2,266,000 from category (1) Works to category (2) Goods, which is necessary due to the increased cost of the TDU facility, as a result of procurement. Also, the originally planned civil works contracts for storage facilities in Shenyang and Zhejiang were split into separate contracts for civil works and goods.

The remaining balance needed to cover the increase of category (2) Goods will be reallocated from category (3a) Clean-up of PCB sites, which requires less funding due to decrease in the number of sites identified for clean-up.

Category of Expenditure Allocation (US$) % of FinancingCurrent Revised Current Revised Current Revised

(1) Works (1) Works 2,730,000 1,181,000 100 100(2) Goods (2) Goods 3,003,000 5,269,000 100 100(3) Services (other than consultants' services) for:

(a) Clean-up of PCB storage sites and low contaminated soils and decontamination

(3) Services (other than consultants' services) for:

(a) Clean-up of PCB storage sites and lowcontaminated soils and transport of

5,418,000 4,978,000 100 100

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of transformers under Part C of the Project

(b) Disposal of highly contaminated PCB waste under Part D of the Project

highly PCB contaminated wastes from Zhejiang to Shenyang under Part C of the Project

(b) Disposal of highly contaminated PCB waste under Part D of the Project

4,568,000 4,289,980 100 100

(4) Consultants' service

(4) Consultants' service

1,001,000 1,097,020 100 100

(5) Training, workshops and study tours

(5) Training, workshops and study tours

852,000 757,000 100 100

(6) Incremental Operating Costs of:

(a) SEPA

(b) PIU

(6) Incremental Operating Costs of:

(a) SEPA

(b) PIU

168,000

300,000

168,000

300,000

100

100

100

100(7) Unallocated (7) Unallocated 300,000 300,000 100 100

TOTAL TOTAL 18,340,000 18,340,000

Closing date The closing date of the Grant will be extended for the second time from December 31, 2010 until December 31, 2011. If approved, this would represent a cumulative extension of 18 month from the original closing date.

As noted in the background section above, the project experienced a number of start-up problems. All of these issues have now been addressed, including fulfillment of the two withdrawal conditions. Completion of these project activities were key cornerstones for meeting the project development objective.

The proposed extension of 12 months is necessary to clean up the identified PCB-sites in Zhejiang Province, complete site monitoring, start treatment of low-level PCB-contaminated soils; dispose of highly-contaminated PCB waste in the Shenyang’s incinerator; as well as complete design of the National Replication Strategy. With this extension, it is expected that the project would be able to complete all it activities and achieve the development objectives.

Implementation Schedule. The implementation schedule will be modified to account for the extended project implementation period. Annex 2 provides details on the implementation plan for the remaining project activities.

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ANNEX 1:Results Framework and Monitoring

CHINA: PCB MANAGEMENT AND DISPOSAL DEMONSTRATION PROJECT

Project Development Objective (PDO):

The development objective of the project is to identify and demonstrate environmentally-sound and cost-effective policies, procedures and techniques for safely managing and disposing of China’s unique temporarily stored PCBs and associated PCB-contaminated wastes.

Revised Project Development Objective:

N/A

PDO Level Results Indicators* C

ore

D=DroppedC=ContinueN= New

R=RevisedUnit of

Measure Baseline

Cumulative Target Values**

Frequency Data Source/Methodology

Responsibility for Data CollectionYR 1 YR 2 YR 3 YR4 YR5 YR6

Indicator One: Lessons from Zhejiang Province’s demonstration of the most cost-effective, environmentally-safe policies and methods for identifying, excavating and cleaning-up temporary PCB storage sites documented and disseminated nationally and globally.

C(timeline revised)

% 0 0 0 20 50 70 100 Every six months Tracked using PCB inventory, management, and disposal information in the management information system (MIS) and the known international and national PCB toxicity standards

Local PIUConsultants: review

CIO/MEP: coordination

Indicator Two: China’s national PCB management and program and policy/regulations refined to reflect lessons from Zhejiang’s experience.

C(timeline revised)

% 0 0 0 20 50 70 100 Every six months Tracked using PCB inventory, management, and disposal information in the management information system (MIS) and the known

Local PIUConsultants: review

CIO/MEP: coordination

international and national PCB toxicity standards

INTERMEDIATE RESULTS

Intermediate Result (Component One): CIO/SEPA and Zhejiang Province’s PIU have the trained staff required to (a) implement a provincial PCB management demonstration project successfully; and (b) document and apply to design of China’s national PCB management program the lessons learned from itRevised Intermediate Result (Component One):N/AIntermediate Result indicator One: Zhejiang PIU staff in project management

C%

0 50 80 100 100 100 100 Every six monthsDatabase will be established as part of the MIS

Local PIU and CIO/MEP

Intermediate Result indicator Two: 160 EPB and power company staff in management and disposal

C%



Intermediate Result indicator Three: 60 EPB and power company staff in PCB site monitoring

C %



Intermediate Result indicator Four: 20 EPB staff in PCB site cleanup

C %0 50 80 100 100 100 100 Every six months

Database will be established as part of the MIS


Intermediate Result indicator Five: 40 power company staff in management of in-use and stored PCB equipment

C %



Intermediate Result indicator Six: 15 EPB staff in soil decontamination




Intermediate Result indicator Seven: 30 EPB staff on PCB emergency response




Intermediate Result (Component Two):The necessary national and provincial policy frameworks for environmentally-sound management and disposal of PCBs are established

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Revised Intermediate Result (Component Two):N/A

Intermediate Result indicator One: Technical standards issued on PCBs in surface water, groundwater, air, and soil

D %

0 N/A N/A N/A N/A N/A N/A N/A N/A N/A

Intermediate Result indicator Two: Guidelines issued on PCB cleanup, containerization, transportation, storage, treatment, and disposal

C %



Intermediate Result indicator Three: Guidelines / policies issued on PCB clean-up funding mechanism

C(timelines revised)

%



Intermediate Result indicator Four: Regulations issued on PCB emergency response




Intermediate Result indicator Five: National Regulations issued on PCB management and disposal

N %



Intermediate Result indicator Six: National PCB pollution control standards

N %0 20 30 60 80 100 100 Every six months



Intermediate Result (Component Three):All (estimated 56) temporary PCB storage sites in Zhejiang Province identified, PCB-containing equipment and contaminated soil recovered; Low contaminated wastes packaged, transported, temporarily stored and treated; Severely contaminated wastes safely transported to Shenyang for incineration; 10 in-use large PCB transformers installed before 1980 decontaminated and more transformers tested.Revised Intermediate Result (Component Three):All PCB storage sites in Zhejiang Province identified, PCB-containing equipment and contaminated soil recovered; Low contaminated wastes packaged, transported, temporarily stored and treated; Severely contaminated wastes safely transported to Shenyang for incineration. Intermediate Result indicator One: All temporary PCB storage sites in Zhejiang Province identified, PCB-containing equipment and contaminated soil recovered.

C(impl. timeline revised )

%


Local PIUConsultants: reviewCIO/MEP: coordination and review

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Intermediate Result indicator Two: Low contaminated wastes packaged, transported, temporarily stored and treated.

C(impl. timeline revised)

%



Intermediate Result indicator Three: Severely contaminated wastes safely transported to Shenyang for incineration.

C(impl. timeline revised)

%



Intermediate Result indicator Four: 10 In-use large PCB transformers installed before 1980 decontaminated and more transformers tested.

D % 0 N/A N/A N/A N/A N/A N/A N/A N/A N/A

Intermediate Result (Component Four):All highly-contaminated PCB wastes recovered from Zhejiang Province safely disposed of in an completed rotary kiln incinerator in Shenyang

Revised Intermediate Result (Component Four):N/A

Intermediate Result indicator One: Shenyang rotary kiln incinerator completed to Stockholm Convention standards for PCB disposal and staff trained in disposal.

C %



Intermediate Result indicator Two: Incinerator operational records confirm Zhejiang Province’s approx 2,000 PCB-containing capacitors disposed of in an environmentally sound way.

R (target and timeline)

%

0 0 0 0 10 70 100 Every six months



Intermediate Result indicator Three: Incinerator operational records confirm Zhejiang Province’s approx 100 tons of PCB oil disposed of in an

R (target and timeline)

% 0 0 0 0 10 70 100 Every six months Database will be established as part of the MIS

Local PIUConsultants: reviewCIO/MEP: coordination and

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environmentally sound way. reviewIntermediate Result indicator Four: Incinerator operational records confirm Zhejiang Province’s approx 13,000 tons of PCB-contaminated soils disposed of in an environmentally-sound way.

R(target and timeline)

%



Intermediate Result (Component Five):Effective project Monitoring and Evaluation Plan developed and implemented

Revised Intermediate Result (Component Five):N/A

Intermediate Result indicator One: Zhejiang PCB site inventory report

C %

0 50 80 90 100 100 100 Every six months

Progress reports,Progress review meetings (annually)

CIO/MEP and local PIUConsultants: review

Intermediate Result indicator Two: PCB management progress and completion at all sites in Zhejiang

C(timeline revised)

%

0 20 30 50 70 80 100 Every six months



Intermediate Result indicator Three: PCB disposal in Shenyang

C %

0 50 80 90 100 100 100 Every six months



Intermediate Result indicator Four: Semi-annual and annual project progress reports

C %

0 50 80 90 100 100 100 Every six months



Intermediate Result (Component Six):Detailed China national replication program for PCB management and disposal developed and adoptedRevised Intermediate Result (Component Six):N/A

Intermediate Result indicator One: National workshop for proposed national PCB management program held

C(timeline revised)

% 0 0 0 10 10 70 100 NA Survey and workshops

Consultants: developmentCIO/MEP: coordination and review

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Intermediate Result indicator Two: National PCB management program document finalized and approved

C(timeline revised)

%

0 0 0 10 10 70 100 NA Survey and workshops


Intermediate Result indicator Three: Global dissemination workshop held

C(timeline revised)

%

0 0 0 10 10 70 100 NA Survey and workshops


*Please indicate whether the indicator is a Core Sector Indicator (see further http://coreindicators)**Target values should be entered for the years data will be available, not necessarily annually.

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ANNEX 2:Implementation Plan

CHINA: PCB MANAGEMENT AND DISPOSAL DEMONSTRATION PROJECT

Component 1: Institutional StrengtheningUnder this component, additional emergency preparedness training in Zhejiang Province will be carried out in March 2011. The training will provide officials from Zhejiang and other provinces with a methodology and guidelines for emergency response in case of a PCB related accident. Public awareness will also be performed.

Component 2: Development of a Policy Framework for PCB Management and DisposalIn the first half of 2011 public consultations on the national pollution control and environmental quality standards for PCBs will be completed. Since PCB is only one of the pollutants requiring adoption of quality standards, the Government has decided to adopt integrated environmental quality standards for all or most of the chemicals at the same time.

Component 3: PCB Management in the Zhejiang ProvinceIn total, only 32 PCB-contaminated sites have been identified in Zhejiang Province. Of these, more detailed surveys have shown that only 12 require clean-up and four others require only removal and collection of stored PCB capacitors or soil. The need to clean up the other 16 sites must be confirmed based on additional pre-monitoring.

Component 4: Disposal of Highly Contaminated PCB Wastes in Liaoning ProvinceThe incinerator in Xinmin, Shenyang (Liaoning Province), already passed the trial run test; storage and pre-treatment facilities are ready. The disposal of highly-contaminated PCB waste can start as soon as the PCB waste from clean-up under component 3 becomes available. By January 2011, the first batch of highly-contaminated PCB waste will be transported to the facility and will be pre-treated after arrival. Due to the severe weather conditions in Liaoning, it is expected that the incinerator will not operate until March 2011. Once operations begin, incinerations should require approximately six months, or until September/October 2011.

Component 5: Project Monitoring and EvaluationThree project review meetings will be held regularly with the first meeting planned for March 2011.

Component 6: Design of a National Replication ProgramInventory of PCB equipment in non-power sectors in eight provinces of China is underway with results expected by the end of December 2010. Based on these results, two or three provinces will be selected as “replication provinces”. During March – July 2011, the replication program for these provinces will be formulated and presented in the national workshop in September 2011, followed by an international workshop for dissemination of results and a national workshop to assess the results of the project.

Site clean-up plan

Site # Location Jan-11 Feb-11 Mar-11 Apr-11 May-11 Jun-11 Jul-11 Aug-11 Sep-11 Oct-11 Nov-11 Dec-1121 Hangzhou, Xiaoshan25 Jinhua, Laoshushan36 Huzhou, Nanpu42 Hangzhou, Glass Group Company45 Jiaxing, Fengzhi Co.Ltd., Jiaxing7 Shaoxing, Xinchang37 Taizhou24 Xin'an jiang18 Ningbo, Cixi, Meishan22 Hangzhou, Yuhang13 Jiaxing, Tongxiang28 Chun'an transformer station32 Quzhou, Shizikou10 Wenzhou, Yueqing47 Quzhou, Fangcun8 Shaoxing, Zhuji14 Ningbo, Xiangshan16 Ningbo, Cixi26 Jinhua, Meicheng27 Chun'an, Wenchang35 Lishui, Qingtian11 Jiaxing, Wangdian23 Jinhua, Yiwu30 Jinhua, Xiaoshun9 Wenzhou, Pingyang44 Wenzhou, Pingyang1 Shaoxing city2 Shaoxing city3 Shaoxing city, former Power Bureau38 Hangzhou Steel Corp, Xiasha farm43 Huzhou, Deqing17 Ningbo, Yuyao

Documents

TEMPLATE FOR PROJECT CONCEPT NOTE (PCN)documents.worldbank.org/curated/en/307771468263349027/... · Web viewInventory of PCB equipment in non-power sectors in eight provinces of China