Fuzhou World Bank Financed Projects Nanjiang Binlu, Phase-ii project of the Third Ring Road and Kuiqi Bridge environmental impact report



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11.6 Summary of public opinions


(1) Most of interviewees support the Nanjiang Binlu & the Phase-II Project of the Third Ring Road and Kuiqi Bridge Project;

(2) Opinions from people along the roads and bridge during the road design stage:

Nanjiang Binlu: ① It is suggested to consider multiple proposals for design of the line across the Fanchuanpu Church, including adoption of bridge to prevent the church square from occupation; it is suggested not to occupy the Puxiazhou swamped land.

The Phase-II Project of the Third Ring Road and the Kuiqi Bridge: It is suggested to set the road along the Wulongjiang River, and roundabout the village in order to occupy less farm land and demolish less houses; the cultural properties and existing woods and ancient trees shall be avoided as much as possible; flyover crossing shall be avoided when never possible when passing by the villages; the swamped land shall not be occupied.

(3) Opinions from people along the line during the construction period

Opinions from people along the Nanjiang Binlu, the Phase-II Project of the Third Ring Road and the Kuiqi Bridge: the road construction can be concentrated in a considerably short period, so that the inconvenience to residents along the road due to the construction noise could be shortened; the construction site shall be reasonably arranged, with the concrete mixer, bitumen cooking facilities far away from the residential places. Opinions from people along the Nanjiang Binlu: appropriate measures shall be adopted during construction in order to protect buildings like the Anlan Guild Hall and Fanchuanpu Church etc. from impact due to construction vibration; Opinions from people at south of the Kuiqi Bridge: the turbidity of water inside the Minjiang River will increase due to construction of the bridge, which will cause increase of the operational cost of the Linpu Village Waterworks because of additional dose of chemicals, therefore, appropriate economic compensation by the Employer is suggested.

(4) Opinions on demolition and resettlement

For households along the Nanjiang Binlu, a lot of them are of low-income urban families, who have small house and poor economic status. They hope the Employer can set different resettlement proposals against different groups. Whenever possible by the policy and the standard, both the house conditions and living levels of the resettlers shall not be lowered; the enterprises shifted shall be provided with appropriate land for resettlement;

Interviewees along the Phase-II Project of the Third Ring Road and the Kuiqi Bridge suggest that the compensation for demolition and resettlement shall be reasonable. They hope the Employer can discuss directly with the resettlers on the resettlement issues and the compensation can be paid to the resettlers directly;

② It is suggested to take into consideration the living habits and living demands of those resettlers and give them equal area of land for building their house independently;

③ It is suggested to give appropriate compensation to farmers who lost the land so that they can maintain the current living level, which has active meaning for social stability.

(5) Operation period

Opinions from people along the Nanjiang Binlu: after the road is constructed and put into use, there will be more residential buildings and office buildings by the road. However, the heavy vehicles will cause pollutions like noises, exhaust and dusts. Therefore, it is suggested to put traffic limit on Nanjiang Binlu and stop heavy motor vehicles and transient vehicles.

12 Economic Evaluation and Environmental economic Gains and Losses Analysis


Construction of Nanjiang Binlu, the Phase-II Project of the Third Ring Road and Kuiqi Bridge Project largely completes the layout of the city road network of Fuzhou city, improves the traffic condition of Nantaidao Island, stimulates the development and construction of Nantaidao Island, perfects the comprehensive transportation network of Fuzhou city, and enhances the integrative communicative function of the urban roads in Fuzhou. Nanjiang Binlu, as a secondary main road, the 3rd Ring Road and Kuiqi Bridge as well as the connection project as the backbone road of the traffic, together serve the traffic in Fuzhou city, and resolve the organic connection between Fuzhou and the external expressway. The construction thereof is in conformity with the steps of “extend to the east, enter into the south, and exploit to the west” proposed by Fuzhou Government, and enhances the reconstruction of the dated city area, as well promotes the development and construction of Nantaidao Island, Huaian Developing Zone, and Mawei Economic development area. They are an important strategy in the city construction, and contribute a lot to a proper city layout.

12.1 National Economy Assessment and Economic Gains and Losses Analysis of Nanjiang Binlu

12.1.1 National Economy Assessment


The Economy Assessment Indexes of the Project refer to Table 13.1 – 1 (social discount rate 12%).

Table 13.1 – 1 Table of National Economy Assessment Indexes



Assessment

Content


Economy Net Present Value (ENPV) (10,000 Yuan)

Economy Internal Return Rate (EIRR) (%)

Economy Benefit Cost Rate (EBCR)

Investment Recovery Period (Year)

Remarks

Calculation

Indexes


27309.77

18.06%

1.82

7.69

Investment Recovery Period (including the construction period)

The national economic benefit cost flow refers to Table 13.1 – 2.

Table 13.1-2 National Economic Benefit Cost Flow of Nanjiang Binlu Unit: 10,000 Yuan



Item

Cost

Benefit

Increment benefit of the land

Net benefit flow

Total Net Benefit Flow

Total

43243.21

309809.34

45500.00

266566.13

1646829.82


12.1.1.1 Sensitivity Analysis


Parameters used for the economic assessment come from either estimation or prediction, thus are not completely accurate. The sensitivity analysis considers the impact of the unfavorable conditions such as increase of financial cost on the economic assessment indexes of the Project in case of decreases of incomes due to certain factors. The statement carries out analysis as per the three conditions of cost increase and benefit decrease. The calculation results are shown in Table 13.1-3.

Table 13.1-3 Sensitivity Analysis (EIRR) of Nanjiang Binlu

Item

Total Economic Net Present Value

(10,000 Yuan)



Economic Internal Return Rate (%)

Economic Benefit Cost Ratio

Investment Recovery Period (year)

Cost Increase 10%

22092.55

16.55

1.65

8.14

Benefit Decrease 10%

19361.57

16.39

1.67

8.18

Cost Increase 10%

Benefit Decrease 10%



14144.35

14.97

1.49

8.68

Seen from the above analysis, changes of benefit and cost of the project investment will have certain impact on the internal return rate. However, in case of the most unfavorable condition, i.e. investment increases 10% or benefit decreases 10%, the net present value of the project is 14,133,350,000 Yuan, and the economic internal return rate is 14.97%, showing the Project has a high vigilance against risks and thus is feasible.

12.1.1.2 Result of National Economy Assessment


For Nanjiang Binlu, it is shown in the economy assessment indexes of national economy assessment that the Project in terms of economy is feasible and has vigilance against risks.

12.1.2 Environmental economic Gains and Losses Analysis


The main task of environmental economic gains and losses analysis is to weigh the economic protection benefit gained from the necessary environmental protection capital invested for the Project construction. Thus, in analysis of the environmental economic gains and losses, it shall include not only calculation of the investment and cost for controlling pollution, but also the estimation of potential environmental and economical effects. However, losses from the pollution are generally indirect, which makes it difficult to directly calculate in currency, if any, the calculation is hardly accurate. Short of basic indexes for environmental economic effect assessment, it is only possible to make a simple analysis of the environmental economic effect.

12.1.2.1 Environmental economic Losses Analysis


Ecological Economic Losses

Along the Nanjiang Binlu is mainly city ecological environment. The direct impact by the project construction on the environment is from the requisition of land, and changing the usage of parts of local land. The ecological economic losses resulted from the Project mainly come from the occupancy of the paddy field, dry land and orchard. The specifics are shown in Table 13.1 – 4.



Table 13.1-4 Calculation of Ecological Economic Losses of Nanjiang Binlu

Land Type

Area of Requisition (mu)

Average Yearly Product (Yuan/mu)

Total (Yuan)

Paddy field

43.56

3000

130680

Dry land

101.7

3000

305100

Orchard

96.81

2100

203301

Unused land and shoals

144.1

450

64845

Total

386.1




703926

Medical Losses from the Impact on Residents’ Health Along the Line by the Changes of Environmental Quality

Nanjiang Binlu goes by Anlan Assembly Hall, the residential area of Pacific City and some other residential areas, the permanent population of which is around 2288, to count as per one tenth of the population, i.e. 229 people are affected. The medical care costs margin between urban and rural areas is calculated as per 94.52 Yuan/person. year in the statistical yearbook (Note: the number is quoted from the Environmental Impact Report of the 2nd Ring Road Phase III of Fuzhou).

To calculate the increased costs of the residents’ medical care by the market value method:

C=N*△E


In the Formula: C―― Increased costs of medical care for residents along the line;

N―― Number of people affected by the change of environmental quality along the line;

△E―― Margin of medical care costs between urban and rural areas (Yuan/person. year).

From the above formula, the annual cost of medical care from the impact on resident’s health along the line by the changes of environmental quality is RMB 21,645.08 Yuan.

Costs for Environmental Pollution by Noises

During the construction of the project, noises come from construction equipments, mainly the engines of shovel car, shovel loader etc. and the usage of electric saw as well; mechanical noises are mainly the thump of pile driver, the noise of the machinery excavating the earth material, the clash of material in agitator etc. Those will influence the life of the residents to some extent. But appropriate protective measures can minimize the harm.

If we adopt some noise abatement measures during the operation of the Project – installing noise-proof window or wall, the indoor noise condition will meet the relative functional requirements. In this way, costs for noise abatement are somewhat equal to the losses from noises without the noise-proof window or wall. Because of lack of specific design data for the noise-proof means in sensitive points, costs hereof will not be calculated for the moment.

12.1.2.2 Environmental Effect Analysis of Nanjiang Binlu


Cost for road forestation and conservation of soil and water of Nanjiang Binlu is RMB 12,850,000 Yuan, and the afforest ion area is 128500.0 m2.

The construction and operation of the Project will undoubtedly cause some disturbance and harm to the surrounding environment along the line. However, the adoption of environmental control measures shall ease the disturbance and harm, and to some effect shall have some positive effects on the original environment. Refer to Table 13.1 – 5 for this.



Table 13.1-5 Benefit Qualitative Analysis of Environmental Impact of Nanjiang Binlu

Environmental Measurement


Environmental Benefits

Construction period environmental control measures

Prevent noises from affecting the residents; prevent surface water, ambient air from pollution; and prevent water loss and soil erosion.

Regulation if Forestation and Temporary Ground

Beautify the landscape along the expressway; improve the local ecological environment; ameliorate the overall surroundings and prevent water loss and soil erosion

Noise Control Project

Prevent the traffic noise from constantly disturbing the sensitive points along the line

Aquatic Environment Protection Measures

Protect the water quality of surface water along the line; maintain the functions of the original water body; and protect the surface water resources.

Environmental Control and Monitor

Know the condition and change trend of the environmental quality and maintain the environmental quality along the line.

It is difficult to make quantitative analysis of some environmental effects after the implementation of the above measures. As follows are quantitative analyses of the effects after the implementation of some measures therein:

Analysis of Forestation Benefit

From the perspective of ecology and health, forestation is useful in oxygen production, dust abatement, sterilization, noise control and improving microclimate. In consideration that it is difficult to collect the economic indexes of monetization, we hereby merely calculate the monetized benefit of the production of oxygen and carbon dioxide fixation.

According to the statements of Institute of Botany, Chinese Academy of Sciences, every square meter of herb plant produces 1.76g oxygen every day, and fixes 2.41g carbon dioxide. In this way, every square meter of vegetation produces oxygen 642.4g/a, and fixes carbon dioxide 880g/a. The forestation area of this road is about 128500m2, and thus the monetized benefit of its oxygen production is about RMB 14500 Yuan/a, and the monetized benefit of its carbon dioxide fixation is around RMB 37,400 Yuan/a, totaling RMB 28800Yuan/a.

Analysis of Benefits of Soil and Water Conservation

Benefits of soil and water conservation comprise ecological benefit, social benefit and economic benefit. For ecological benefit, via implementing the soil and water conservation program, the correction rate of water loss and soil erosion can reach 100%. Quantity of soil erosion cut down in the construction period reaches more than 98% of the new water loss and soil erosion, thus the water loss and soil erosion resulted from the project construction will be under effective control. The destroyed vegetation is restored, beneficial to the balance of the whole eco-system. In addition, the execution of the program will stop the earth condition within the project area from deteriorating, reduce the loss of organic matters like nitrogen and phosphor as well as the running off of inorganic salt, and contribute positively to the improvement of the local ecological environment and agricultural production conditions.

In terms of social benefit, the implementation of water and soil conservation program to a large extent stimulates the water and soil maintenance of the local construction project.

As for economic benefit, carrying on the water and soil conservation program effectively controls the water loss and soil erosion, reduces the mud and sand silting up in field and pound, decreases natural disasters and thus brings economic benefit indirectly.


12.1.3 A Brief Summary of Environmental Economic Gains and Losses Analysis of Nanjiang Binlu


Seen from the above computational analysis, the losses from environmental pollution of the project is RMB 725,600 Yuan/a, while the monetized benefit from oxygen production and carbon dioxide fixation of road forestation is RMB 28,800 Yuan/a.

The construction of Nanjiang Binlu project plays an important role in improving the traffic condition of Nantaidao Island, promoting the development and construction of Nantaidao Island and enhancing the comprehensive traffic capacity of city roads in Fuzhou. Meantime, it brings enormous economic and social benefits. Compared with the losses from environmental pollution, its social benefit is still considerable.




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