6. Alternative routes for the proposed 16 km covered limestone conveyor were considered during route selection, which has been specifically designed to avoid all residences. The conveyor belt will be at ground level except at road crossings and in the agricultural areas in the lowlands, where it will be elevated. Therefore, agricultural activity will be disturbed only during construction and there will be no loss of agricultural land. In the mountains, the land is occupied by open canopy mixed deciduous and conifer forest that has been greatly modified by human activity. The area along the road through which the conveyor belt passes is a tree plantation. The conveyor belt closely parallels the road through the mountains.

7. The proposed plan is to construct a wharf and an elevated accessway to the plant site on pilings along the south bank of the Yang Tze River. No dredging will be required for wharf construction. There are no significant ecological and land use issues associated with the wharf construction or operation.

8. The government is responsible for the livelihoods of the people who live or carry out economic activity on the site. It, therefore, takes responsibility to ensure that involuntarily displaced people are given different land to farm or other jobs. For this project, very little resettlement will be required. There are no residences on the quarry site, nor is there any agricultural activity on the quarry site. The overland conveyor belt route has been specifically selected to avoid residences, and is elevated in all areas under agricultural production. Nor are there residences on the clay quarry site. There is one residence on the levee separating the cement plant site and wharf site, and there is one residence and one small farm building located on the plant site. Thus, the government will provide for the relocation of two households. There are also about two dozen graves at the clay quarry that must be relocated; these graves will be relocated in accordance with local practice and the families will be compensated.

9. There will be displaced economic livelihood, consisting of minimal loss of agricultural activity at the clay quarry (mostly mulberry grove), loss of a cotton plantation enterprise at the cement plant site, and loss of a small chemical plant (producing paint pigment) at the cement plant site. However, the cotton plantation and chemical plant are state-owned enterprises and the local government is involved in the decision process. The Land Procurement Fund (lease payment by the sponsor) is to be used by the local government to find alternative land or employment for the people involved in the cotton farm collective, for the relocation of the two households, and for providing a new site and facility for the chemical plant. A second fund, the Agricultural Land Development Fund, was established and paid to the cotton farm collective for distribution to farmers to relocate their farming activity. Resettlement and compensation have been implemented in accordance with Chinese law, and is considered fair and equitable, and consistent with World Bank policy.

10. Based on its review of available information regarding potential environmental impacts and proposed mitigation measures, IFC concludes that the proposed project is being designed to meet World Bank policies and environmental, health and safety guidelines, and Government of China requirements. With state-of-the-art pollution control technology and quarry reclamation as proposed, there are no significant adverse impacts on the environment associated with this project.

11. IFC will monitor ongoing compliance with World Bank policies and environmental, health and safety guidelines during the life of the project by evaluating monitoring reports submitted annually to IFC by the sponsor and by conducting periodic site reviews during project supervision.