Developing coal chemical industry in eastern Mongolia by diverting water? The Ministry of Environmental Protection rejects approval for the 24 billion yuan project to divert water from the Chuo River to the Liao River

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Developing coal chemical industry in eastern Mongolia by diverting water? The Ministry of Environmental Protection rejects approval for the 24 billion yuan Chuo-Liao Water Transfer Project Author/Source: Date: 2016-07-08 Clicks: 74 Among the environmental impact assessment approval decisions for construction projects announced regularly by the Ministry of Environmental Protection on June 30, the only project that was denied approval – the Chuo-Liao Water Transfer Project – did not seem to attract media attention. In fact, the project’s environmental impact assessment report describes it as “the most important water resource allocation project in Eastern Mongolia”. According to the website of the Inner Mongolia Water Resources Department, the \"Chuo-Liao Water Diversion Project is one of the 172 key water conservation and supply projects that have been identified; it is also one of the 12 major water infrastructure projects included in the autonomous region’s plan. Furthermore, it is among the 20 major water infrastructure projects that were required to start construction by 2016.\" ” It was designated as Project No. 1 because the \"Chuo-Liao Water Transfer Project\" was included in the State Council’s \"Several Guidelines on Further Promoting the Sound and Rapid Economic and Social Development of Inner Mongolia\" as early as 2011, and approval processes have been smooth ever since. In 2012 and 2013, it was respectively included in the \"Comprehensive Plan for the Songhua River Basin\" and the \"Comprehensive Plan for the Liao River Basin\", both of which were approved by the State Council ； At the end of 2012, approval for the project plan was obtained from the Ministry of Water Resources, and in April 2016, approval for water extraction was granted by the Songliao Water Resources Commission. “The feasibility study report for the project has been revised and finalized; pending approval from the **Development and Reform Commission, the project is expected to begin construction in the second half of this year. ” The Chuoji Liao project involves building a reservoir on the Chuo River in the Nen River basin, from where water is then diverted 390 kilometers south to the Xiliao River. An average of 565 million cubic meters of water are diverted each year, with a total investment of 23.748 billion yuan. In its approval comments, the Ministry of Environmental Protection raised three critical issues: the implementation of the project will lead to significant degradation of the ecosystem in the river sections downstream of the water source. Fish stock levels have declined significantly, with the flow at downstream estuaries decreasing by up to 90%. The flooded area of the water source reservoir is large, having a significant impact on plants that are under special protection, including 18,000 plants that are classified as **Grade II protected species and are characteristic to the region. At present, water resources in the water reception area are over-exploited, and river dry-ups as well as water quality issues within the watershed have become extremely severe. The additional water discharge will further increase the pressure on regional water pollution control. The shortage of water resources is indeed urgent. Tongliao is located in the heart of the Horqin Sandland and is one of the most water-scarce areas in the Northeast. Its per capita water resource allocation is 45% of that in Inner Mongolia, 51% of that in the Northeast region, and 44% of the national average. Surface water resources have reached their limit for exploitation, the Xiliao River dries up throughout the year, and groundwater is overexploited on a scale of 2,905 square kilometers; the greatest drop in groundwater levels in the affected areas was 18.41 meters. The Molimiao Reservoir, the endpoint of the project and once known as \"Asia’s largest desert reservoir,\" has also been dry for over a decade. However, in the face of the harsh ecological environment, the abundant waters of the Chuoer River were not given priority for restoring vegetation in the Horqin Desert, replenishing underground aquifers, or restoring the flow of the West Liao River. On the contrary, one of the primary tasks of this project is to \"ensure a water supply for implementing the ‘water-coal combination’ strategy in the eastern Mongolian region\", that is, to develop coal chemical industries that are highly water-intensive and polluting in Xingan League and Tongliao. According to the documents, in 2010 the Inner Mongolia Regional Party Committee proposed establishing a new coal chemical industry base in Xingan League. To date, 5 economic development zones have been established. The Chuoji Liao project supplies 212 million cubic meters of industrial water, accounting for 87.6% of the city’s total water intake. Tongliao City also planned, during the 12th Five-Year Plan period, to utilize the coal resources of the Huolin River to establish **new types of coal chemical industry bases. To date, 6 autonomous-region-level economic development zones have been established. The Chuoji Liao project supplies 248 million cubic meters of industrial water, accounting for 82.4% of the city’s total water intake. For example, the coal-to-natural gas project with an annual production capacity of 4 billion cubic meters that Inner Mongolia Mining plans to build in the Buryat Industrial Park in Keyouzhong Banner, Xingan League, is riddled with problems. To produce 1,000 cubic meters of coal-based gas, approximately 7 tons of water are required; it is estimated that this project will need 28 million cubic meters of fresh water. The treatment technologies for high-salinity water and VOCs in coal chemical projects are also far from mature; news of sewage and odors continues to emerge from Datang Group’s two projects in Chifeng and Dolun. The promise of zero emissions in coal chemical industries is difficult to fulfill. Furthermore, this coal-to-gas project is located in the ecological function zone of the Horqin Grassland, which is a area designated for restricted development. It does not meet the \"Environmental Access Requirements for Modern Coal Chemical Industry Projects (Trial)\\", yet the Inner Mongolia Development and Reform Commission approved it on the grounds of \"spotwise development in key ecological function zones\". Moreover, the environmental impact assessment documents show that the project uses coal with high arsenic content; if the arsenic is not removed thoroughly, the pollution risks will be even greater. In its approval comments, the Ministry of Environmental Protection requested that the project \"reduce the scale of water transfer for engineering purposes and optimize the scheduling and operation plans,\" adhere to the principle of determining production levels based on water availability, give priority to tapping into the water-saving potential in the receiving areas, thoroughly evaluate the rationality of the water pollution control plans, and propose practical environmental protection measures. Complaint 1: The environmental impact assessment report has 909 pages; the protection settings are not available for copying, and the accompanying diagrams in the file are missing – a poor quality document. Complaint 2: The second environmental impact assessment public notice for the coal-to-gas project in Xingan League does not include the full version of the assessment report; only a 14-page summary is provided. The environmental impact assessment agency is China Global Engineering Corporation. Link: Notice from the Office of the Ministry of Environmental Protection regarding the refusal to approve the environmental impact assessment report for the Chuo-Liao Water Transfer Project. Notice on the refusal to approve the environmental impact assessment report for the Chuo-Liao Water Transfer Project; Letter No. Huanban Huiping 1143. Inner Mongolia Chuo-Liao Water Supply Co., Ltd.: We have received your company’s request regarding the approval of the environmental impact assessment report for the Chuo-Liao Water Transfer Project (Document No. Nei Yinchuo [2016] 17). Upon review, the project and its environmental impact report have the following issues: First, the implementation of the project will lead to significant degradation of the ecosystem in the river sections downstream of the water source. According to the environmental impact assessment report, after the project is implemented, the utilization rate of water resources in the river basin will increase from 18% to 50%. Degradation of the swampy wetlands covering 16 square kilometers downstream of the dam is likely to occur, while the density and coverage of grasslands in the steppes covering 93 square kilometers will decline. Fish populations will also decrease significantly, with the flow at the downstream estuary potentially dropping by up to 90%. Although measures such as maintaining an ecological flow rate and implementing ecological scheduling have been proposed to mitigate these effects, they still have a considerable impact on the water resources, hydrological conditions, and estuarine wetlands downstream of the dam. It is necessary to adhere to the basic principles of \"ecology first, green development,\" thoroughly assess the extent and severity of the ecological impacts of this project on the Chor River, reduce the scale of water diversion for the project, optimize the scheduling plans, and ensure the ecological water needs and ecological security of the middle and lower reaches of the Chor River. 　　II. The flooding area of the water source reservoir is large, having a significant impact on plants that are under special protection. The reservoir covers an area of 112 square kilometers, including 18,000 plants that are under **Grade II protection and represent local flora. The engineering parameters should be adjusted appropriately based on the actual water transfer scale, in order to reduce the impact of reservoir flooding. 　　III. At present, due to the overexploitation of water resources in the water reception area, river dry-ups and water quality issues within the watershed have become extremely severe. After the implementation of this project, the additional water discharge will further increase the pressure on regional water pollution control. It is necessary to adhere to the principle of determining production based on water availability, prioritize tapping into the water-saving potential in water-receiving areas, thoroughly evaluate the rationality of water pollution control plans, and propose practical environmental protection measures. 　　In light of the above issues, our department has decided not to approve the environmental impact assessment report for this project. Article 25 of the Environmental Impact Assessment Law stipulates that if the environmental impact assessment document for a construction project is not approved, the construction unit shall not commence construction. If the project truly needs to be constructed, the environmental impact assessment report should be revised and improved, after which it must be submitted to our department for approval again in accordance with the prescribed procedures. My department has entrusted the North China Environmental Protection Inspection Center and the Environmental Protection Department of Inner Mongolia Autonomous Region with conducting supervision and inspections. 　　If your company is not satisfied with the decision contained in this notice, it may apply for administrative reconsideration to our department within 60 days from the date of receipt of this notice, or it may file an administrative lawsuit in accordance with the law within three months from the date of receipt of this notice.