Sustainable Mercury Management in Nonferrous Metal Industry

dropped

The Project Development Objective (PDO) is to strengthen the regulatory framework and capacity for reducing mercury emission, and to promote the adoption of related techniques and good practices for enterprises in the nonferrous metal industry.PDO-Level Indicators • National level Standards, technical guidelines, and national replication plan submitted or adopted to support mercury reduction and recovery in the sector (number)• BAT/BEP successfully demonstrated for selected enterprises (number; each enterprise can demonstration more than one BAT/BEP)• Mercury reduction by demonstration enterprise (metric tons/year)• Direct project beneficiaries (number, and gender disaggregated).Component 1. Strengthen Regulatory Framework, Knowledge Dissemination, and Promotion of Sector wide Replication (total cost US$32.2 million, of which GEF US$7.3 million)This component will finance technical assistance activities to promote industry-wide replication and ensure the long-term sustainability of mercury reduction in the nonferrous metal sector. Among other things, activities supported will include development and update of four national mandatory standards for emissions and product specifications based on the experience of the demonstration enterprises and the other enterprises in the whole industry, three of which are expected to be adopted within the project duration while one will be submitted for adoption and may be approved after project closing due to the longer time needed for the processes. The technical assistance and studies under Component 1 will provide guidance to the demonstration activities under component 2 while the lessons learned under component 2 will in turn inform the regulatory improvement under component 1, which forms a feedback loop. The regulatory and TA component will also pave the way for these technologies and practices to be validated and certified as BAT/BEP for the national catalogue and potentially inform the international BAT/BEP to be recommended for the Minamata Convention. Component 2. Demonstration of Mercury Emission Control and Recovery Technology (total cost US$120 million, of which GEF US$12 million)This component will demonstrate technologies and practices for mercury control, abatement, and recovery at selected participating enterprises. It will provide technical assistance and investment financing (goods and civil works) to four enterprises, supporting at least one production line in each of the four areas: mercury recovery; specialized mercury abatement; synergistic control for conventional pollutants and mercury; and online monitoring equipment for gaseous mercury., which are representative of the priority technologies. This component is expected to be implemented through subgrant agreements with enterprises selected during project preparation and early project implementation to allow more time for careful selections and phased approach. The Yuguang Zinc Industry Co., Ltd. in Henan province has been identified through a nationwide call for proposals that was open to all enterprises, state-owned and private, based on pre-agreed selection criteria to demonstrate mercury recovery technology. These criteria evaluate viability of the proposed technologies, enterprise’s commitment to the project, facility’s compliance status with applicable environmental and social requirements and its financial performance and level of committed co-financing. Three more demonstration enterprises will be selected during the early years of implementation, preferably from the provinces of Henan, Hunan, Shaanxi, Shandong, and Guizhou province, as well as the Inner Mongolia Autonomous Region, where top lead, zinc, and copper production capacity is concentrated.Regular evaluation and verification of the effectiveness of demonstration activities will be carried out during project implementation with data shared with the environmental authorities, and the verified demonstration technologies are expected to be recommended for inclusion in the BAT/BEP guidelines, which will greatly facilitate their replication nationwide. Component 3. Project Management (total cost US$8.1 million, of which GEF US$1 million)This component will support (a) day-to-day project management, coordination, planning, administration, and supervision of project implementation; (b) technical support, including the preparation of terms of reference and procurement management; (c) monitoring, reporting, and evaluation, E&S monitoring, including submitting semiannual and annual reports of project progress, E&S reports, and a project completion report; and (d) project fund management and disbursement management.