AZERSU JOINT STOCK COMPANY - World Bank



AZERSU JOINT STOCK COMPANY

National Water Supply and Sanitation Project II

AGSTAFA REGION WATER SUPPLY AND SEWER SYSTEM SERVICES PROJECT

ENVIRONMENTAL IMPACT ASSESSMENT

Client: AZƏRSU JSC,

Baku. AZ1012. Moscow Avenue, 67.

Prepared by: Dr. MİRZAKHAN MANSİMOV,

Environmental Consultant

mirclimate@

Baku

FEBRUARY 2008

TABLE OF CONTENTS

ABREVIATIONS ...................................................................................................................4

SUMMARY…………………………………………………………………………………………..5

1.INTRODUCTION ...……………………………………………………………………………..12

1.1. GENERAL OBJECTIVES OF THE PROJECT……………………………………………12

1.2. OBJECTIVE OF ENVIRONMENTAL ASSESSMENT………………………..................12

1.3. PROJECT DETAILS…………………………………………………………………………12

1.3.1. General purpose of the project…………………………………………………………...12

1.3.2. Project location and brief summary………………………………………………………14

1.4. ANALYSIS OF PROJECT ALTERNATIVES………………………………………………17

1.4.1. ALTERNATIVE 1. Existence of current situation and “Lack of project” case………..17

1.4.2. ALTERNATIVE 2. Restoration/improvement works will cover drinking

water infrastructure only…………………………………………………………………………..17

1.4.3. ALTERNATIVE 3. Restoration/improvement works will cover drinking

water infrastructure and sewer systems together……………………………………………..17

2. LEGISLATION, REGULATIONS AND RULES ON ENVIRONMENT……………………21

2.1. WORLD BANK ENVIRONMENTAL MANAGEMENT POLICY………………………….21

2.2. ENVIRONMENTAL CATEGORIES………………………………………………………...22

2.3. ENVIRONMENTAL LAWS AND REGULATIONS OF AZERBAIJAN ………………….22

2.4. REGULATIONS ON WATER SUPPLY AND USE OF WATER………………………...23

2.5. ENVIRONMENTAL MANAGEMENT INSTITUTIONS…………………………………...24

2.6. ENVIRONMENTAL ASSESSMENT RULES……………………………………………...25

3. ASSESSMENT OF THE CURRENT SITUATION OF ENVIRONMENT………………...26

3.1. NATURAL ENVIRONMENT………………………………………………………………...26

3.1.1. Climate………………………………………………………………………………………26

3.1.2. Geological and hydrogeological conditions……………………………………………..26

3.1.3. Surface and ground waters……………………………………………………………….26

3.1.4. Soils and land use…………………………………………………………………………28

3.1.5. Flora and fauna (Plants and animals)…………………………………………………...29

3.1.6. Sensitive areas. Qarayazy reserve………………………………………………………29

3.2. SOCIAL AND ECONOMIC ENVIRONMENT……………………………………………..30

3.2.1. General social-economic situation………………………………………………………30.

3.3. ENVIRONMENTAL POLLUTION …………………………………………………………32

4. ASSESSMENT OF POTENTIAL IMPACTS ON NATURAL AND SOCIAL ENVIRONMENT..................................................................................................................37

4.1. ENVIRONMENTAL IMPACT ASSESSMENT..............................................................37

4.2. POTENTIAL IMPACTS OF THE PROJECT………………………………………………38

4.3. IMPACTS OF USE OF GROUND WATERS ON WATER RESOURCES……………..40

4.4. ASSESSMENT OF IMPACTS FOR OTHER ALTERNATIVES…………………………40

5. ENVIRONMENTAL MANAGEMENT PLAN………………………………………………...42

5.1. IMPACT MITIGATION MEASURES AND ENVIRONMENTAL MANAGEMENT……..42

5.2. MITIGATION MEASURES DURING THE WSSS INFRASTRUCTURE

RESTORATION AND RECONSTRUCTION PHASE, ENVIRONMENTAL

MANAGEMENT…………………………………………………………………………….……..42

5.2.1. Wastes discharged to atmosphere………………………………………………………42

5.2.2. Waste waters……………………………………………………………………………….43

5.2.3. Solid wastes………………………………………………………………………………..43

5.2.4. Noise management………………………………………………………………………..43

5.2.5. Fire safety measures………………………………………………………………………44

5.2.6. Management of impacts on soil and vegetation………………………………………..44

5.2.7. Health and safety management………………………………………………………….45

5.2.8. Regulating people’s movement…………………………………………………………..45

5.3. ENVIRONMENTAL MANAGEMENT DURING UTILIZATION PHASE………………...45

5.4. ENVIRONMENTAL MONITORING PLAN…………………………………………………46

6. PUBLIC CONSULTATIONS………………………………………………………………….48

ANNEX I. ENVIRONMENTAL CATEGORIES…………………………………………………49

ANNEX II. ENVIRONMENTAL MANAGEMENT PLAN………………………………………50

ANNEX III. ENVIRONMENTAL MONITORING PLAN........................................................54

ANNEX IV. DRINKING WATER MONITORING STANDARDS IN AZERBAIJAN.............56

ANNEX V. PUBLIC CONSULTATIONS. I REPORT..........................................................57

ANNEX VI. PUBLIC CONSULTATIONS. II REPORT........................................................59

ANNEX VII. PHOTOS.........................................................................................................63

ABBREVIATIONS

EIA – Environmental Impacts Assessment

EMF – Environmental Management Framework

EMP – Environmental Management Plan

NGO – None-governmental organization

PEE – Public Ecological Expertise

SEE – State Ecological Expertise

SEP – State Ecological Program

UN – United Nations

UNDP – United Nations Development Program

WB – World Bank

WHO – World Health Organization

SUMMARY

1. Introduction

Water supply and sewer system in Azerbaijan is characterized by old and half-destroyed physical infrastructure, severe financial restrictions and unsatisfactory utilization. As a result, level and quality of water supply and sewer system services, especially that of small towns, have degraded significantly. Water shortage has affected people’s welfare, and consumption of unpurified water has negatively affected public health. Conveying sewage to non-designated areas without cleaning has caused various infections and pollution of environment.

Azerbaijan Government and World Bank are currently discussing implementation of new projects for water supply and sewer system sectors in small towns and regions to eliminate current pitiful situation. Azerbaijan Government and World Bank have commenced development of projects for reconstructing and improving water supply and sewer system in 20 small towns within the framework of “National Water Supply and Sewer System Project” in 2007. One of these towns is Agstafa.

The main goal of the project is to totally replace plants and pipelines currently utilized in Agstafa town having no practical use for water supply and sewer systems with new ones, and to provide their long-term and sustainable utilization.

For realising these goals, assessment of potential environmental and social impacts during construction and utilization phases and management of these impacts are one of the main issues of the project.

2. Project area and brief content

Agstafa region is located in north-west of Azerbaijan Republic, 460 km far from Baku, on Ganja-Qazakh plain (Figure 1). Total area of the region is 1504 km2, and the population is 75.6 thousand, 12.1 thousand of which live in Agstafa town.

Drinking water supply of Agstafa town, Khatai and Vurghun settlements and Ashagi Goychaly, Hassansu and Eynally villages, total of 13,900 people, is planned to be improved within the project framework. Natural growth of population and water supply prognoses till 2027 are given in the project. Water supply and the capacity of plants, as well as their exploitation duration are planned till that year. Water demand norm per capita is calculated 210 l/day (including expected losses). 4371 m3/day in 2008-2012 and 5465 m3/day in 2022-2027 water consumption is estimated in the town, including the demands of industrial, commercial and administrative entities.

Sewer system will consist of water storing and conveying sewer network and sewage processing plants. Daily volume of sewage produced in Agstafa town is 3631 m3/day, together with Khatai settlement total sewage volume will be 4500 m3/day or 88.6 l/sec. Sewage processing plants will be located 4.5 km north-west of Agstafa town, and sewage will be flowed into Agstafachay River after cleaning in 4.5 km area. Conveying cleaned sewage into man-built ponds where they can be re-processed by plants is also suggested.

3. Requirements for EIA

In 1996, Azerbaijan Government adopted amended EIA procedures corresponding to the systems applied in other countries. New rules have been described in the Regulations for Conducting Environmental Impacts Assessment in Azerbaijan Republic. These Regulations state that “assessments of wastes discharged into environment should start in the beginning, i.e. in the planning stage and before technical-economic assessment.” According to Environmental Protection Law, development of EIA for all projected enterprises having potential impacts on environment is compulsory. Requirements established for development of EIA match with World Bank requirements (OP/BP 4.01).

4. Analysis of project alternatives

The only difference between Options A and B is water source. Option B is more suitable for its environmental and social impacts, as well as from economic point of view. This is stipulated by the following:

• Ground waters under Hassansuchay river-bed selected as water source in Option B are more quality and they have very little chance to be exposed to future pollution;

• There is no need for pumps to convey water from water wells to water storage facilities. Height difference between the water source areas and pressure-flow controlling water storage facilities is 48-130 meters. This means saving power and conveying water by gravity, and there is no need for extra buildings and facilities;

• In Option A, height difference between the water sources under Agstafachay river-bed and the pressure-flow controlling water storage facilities is -45 meters. This, in turn, requires a second level pumping station and construction of an additional water storage facility. Accordingly, construction and utilization costs are higher in this option;

• Water of Agstafachay River is regularly polluted by industrial and domestic wastes in Armenia and by sewage in Qazakh town. As ground water reservoirs under the river-bed are recharged by river waters, pollution risk of ground waters is high. Therefore Option A is not recommended.

Lack of project scenario is the worst case. Critical environmental situation in and around Agstafa town can aggravate, if the current situation will not change. There is great potential of total destruction of damaged water and sewer lines, flooding streets and yards with sewage which, in turn, increases the risk of negative impacts on public health and welfare. Impacts on environment and water ecosystems: pollution of surface and ground water reserves, erosion and pollution of soil, degradation of plants are possible. Existence of such a situation is undesirable, especially with high growth rate of population and creation of new enterprises.

5. Environmental pollution level

A field trip to current and projected water supply and sewer system areas was realised with Agstafa Water Canal Department on February 14-15, 2008. It was found out that main pollution source affecting environment and human health are sewage waters flowing both through inside and outside of Agstafa town in open ditches and channels for 5 km and joining Agstafachay River.

The amount of these sewage waters change depending on hours of day and seasons of year. Waste waters are conveyed from town into an open course by a sewer ditch, then flow through farm lands and Poylu village into Agstafachay River. These waters don’t reach the river in winter time because of small amount, and soak into ground polluting ground waters. Lands along the sewage ditch are cultivated for fodder.

These areas are also used as pastures and domestic animals certainly drink these waste waters and eat canes and grass growing in these waters. This in the end cause noxious substance to get into human body and brings about various diseases.

Sewage is settled in a number of small ponds made in the sewage course by Agstafa Water Canal Department and evaporated. This primitive method decreases the amount of waste waters flowing along the course, but also accumulates settled solid depositions in the water course. This, in its turn, promotes reproduction of living entities which cause various diseases in hot seasons of year.

Most of sewage waters in Agstafa town are streamed into open ditches, and such situation poses serious dangers to human health.

Hence, main pollution source for Agstafa town and its sorrounding, Poylu village and Agstafachay River is sewage waters flowing through open ditches and water course. These waters pollute ground waters in the area as well. This kind of situation contains the risk of various infections for people and domestic animals.

6. Impacts of the project

As the final goal of the project is improvement of people’s welfare, public health and environment, its impacts are mainly positive. Only in construction phase of the project insignificant impacts and disturbance are expected.

Positive impacts of the project. These impacts will be long-term. The following are positive impacts after project implementation:

• People will be supplied with quality drinking water corresponding to standards;

• Demand for water will continuously satisfied;

• As the water will be conveyed to water distribution system by gravity, less power will be consumed;

• Utilization and technical service expenses will be insignificant, as no coagulants or flocculants will be used for water purification and ground waters will be produced and conveyed by water pressure;

• Soil erosion and pollution in the streets of the town will be prevented by decreasing water loss in water mains;

• Creation of new management system for water supply and sewer system based on modern technologies and continuous control over water quality will diminish risks of infectious diseases and health care expenses;

• Reconstruction of sewer system will prevent pollution of streets in the town and illnesses among people;

• Sewage water purification will end pollution of soils, ground waters, plants and Agstafachay River;

• New jobs will be opened;

• Previous negative effects of waste waters on Poylu village residents and domestic animals will be eliminated;

• Impacts on sensitive ecosystems, Agstafachay River course, swamp vegetation, water ecosystems of Hassansuchay River will be minimized. Reduction of pollution in these rivers will also have positive effects on Kur River ecosystems, including Qarayazy state reserve fauna and flora.

Negative impacts of the project. Possible negative effects and disturbance of the project are only expected in its construction phase. These impacts will be noise, vibrations and emissions discharged to atmosphere generated by heavy equipment and construction mechanisms.

These impacts will be generated during the following activities:

• Temporary impacts generated during the preparation of sites for drilling water wells; drilling of wells; construction of roads connecting drilling sites, water pipelines and pump stations (only in Option A) for pumping water to the second level (totally 25.5 ha area in Option A, and 28.6 ha area in Option B);

• Temporary impacts during the construction of central urban water storage facility and water pipelines (totally 7.5 ha area);

• Impacts during the replacement of old water lines (41 km) and house connecting (39 km) systems with new one in the town.

7. Impact mitigation measures and environmental management

The purpose of developing measures for mitigating negative environmental impacts is to minimize possible negative environmental and social-economic impacts during the construction and utilization phases of the WSSS restoration project. These measures will be carried out by construction company during the construction phase of the WSSS project and by Agstafa Water Canal Department during utilization phase (Table 1).

Project Implementation Group and Azersu JSC will control the project management. A World Bank representative will also observe project implementation during its realization.

EMP monitoring reports will be submitted to MENR, Azersu JSC and World Bank.

Table 1

Mitigation measures

|Phase |Source |Impacts |Mitigation measures |

|Construction phase A. |Excavation of trenches, removal |1. Generation and spread of dust |Areas where asphalt surface of roads are |

|Construction of water |of asphalt surface in the | |removed, trenches are dug and then filled again |

|supply and sewer system |streets, | |will be watered to prevent dust pollution during|

|network in town |Burial of pipelines, filling | |construction of WSSS in towns, settlements and |

| |trenches, transportation of | |villages in arid seasons of year |

| |generated wastes, new paving on | | |

| |roads. | | |

| | |2. Solid wastes (metal, concrete, |- Metal wastes will be collected and taken to |

| | |rock pieces, asphalt, sand and etc.)|metal processing companies; |

| | | |- Construction debris (sand, soil, rocks) will |

| | | |be used as an additional material for filling |

| | | |deep trenches when needed. If not needed, they |

| | | |will be taken to city dumping-grounds; |

| | | |- Removed asphalt debris will be taken to |

| | | |bitumen factories for recycling; |

| | | |- Speed limits will be set for trucks within the|

| | | |town during transportation of wastes. |

| | |3. Noise generated by construction |- Equipment and heavy transport will not be used|

| | |equipment and lorries |at night time, on Saturdays and Sundays; |

| | | |- Noise absorbing walls will be set up if there |

| | | |is any dwellings, offices or public places in |

| | | |less than 50 m distance from purification plants|

| | | |and transport routes; |

| | | |- Nearby people and institutions will be warned |

| | | |about high noise during daytime; |

| | | |- Special attention will be given to sensitive |

| | | |institutions, especially schools, kindergartens |

| | | |and hospitals; |

| | |4. Impacts on movement of people and|Borders of construction sites will be marked, |

| | |traffic |safety boards will be placed, signs regulating |

| | | |movement of pedestrians and traffic will be |

| | | |erected |

|Construction phase B. |Preparation of drilling sites, |1. Soil erosion |For minimizing erosion of soils, water conveying pipes or |

|Drilling of wells in |building temporary roads, |potential |concrete field ditches will be placed in highly sloping |

|water sources, |excavation and filling of | |sites of areas, hollows and dry river courses to prevent |

|construction of |trenches for pipelines, | |land slides in slopes |

|pipelines and water |construction works | | |

|mains, construction of | | | |

|water storage, | | | |

|purification plant, and| | | |

|water canal | | | |

| | | | |

| | | | |

| | | | |

| | | | |

| | | | |

| | | | |

| | | | |

| | | | |

| | | | |

| | | | |

| | |2. Impacts on use of |Water mains and sewage canal will be constructed in old |

| | |soil |places, involvement of additional lands is not planned, |

| | | |schedule of works will be agreed people, or people will be |

| | | |notified beforehand for not impeding agricultural |

| | | |activities |

| | |3. Impacts on health |- health protection trainings will be conducted; |

| | |of personnel |- all personnel will be supplied with special uniforms; |

| | | |- personnel working in excavation of polluted soils and |

| | | |collection, loading, transportation and disposal of sewage |

| | | |waters will be supplied with protective safety glasses, |

| | | |gloves, long rubber boots and dust masks; |

| | | |- mobile shower cabins will be set up for personnel; |

| | | |- personnel will pass regular medical check-ups |

|Utilization phase |Silt depositions in water |1. Impacts on |Neutralisation of depositions, noxious substances and heavy|

|(2008-2027) |cleaning plants |environment, air and |metals, their use in fertilizing lands |

| | |soil through wastes | |

| |Sewage conveyed to Agstafachay |1. Degradation of |Sewage will be processed in water purification stations and|

| |River |water quality in |cleaned to irrigation water level |

| | |Agstafachay river | |

| | |course and river-bed | |

| | |2. Impacts of sewage |Sewage will be conveyed by a canal and pollution of |

| | |on sorrounding lands |sorrounding lands will be prevented |

| | |3. Impacts on ground |Pollution of ground waters will totally be stopped. There |

| | |waters |will not be impacts on water-swamp ecosystems of |

| | | |Agstafachay River compared to current situation |

| | | | |

| | |4. Impacts on |No negative impact on Qarayazy state reserve is expected as|

| | |sensitive ecosystems |there is no direct contact |

8. Environmental monitoring plan

Conducting monitoring is the major strategic tool in environmental management. Planning monitoring allows to identify and foresee potential impacts.

Duties of Azersu and its regional subsidiaries, including Agstafa Water Canal Department are to supply people with quality and required amount of drinking water, maintain sewer systems in good working condition and purify waste waters. Water quality control is carried out by laboratories of Azersu and its subsidiaries.

Planned monitoring in project areas during and after construction phase is discussed in this section.

Main elements of the environmental monitoring plan are the following:

1. In construction phase:

• Dust monitoring;

• Noise monitoring;

• Solid wastes monitoring;

• Waste waters monitoring;

• Soil monitoring.

2. In utilization phase:

• Monitoring of water volume in water sources and water storages;

• Monitoring of microbiological and chemical composition of water distributed to people, comparison to water standards;

• Monitoring of pollution level of sewage;

• Monitoring of waste waters after purification;

• Monitoring of depositions settled in water cleaning plants;

• Monitoring of cleaned sewage in the place where it joins Agstafachay River;

• Monitoring of soil where depositions generated in water cleaning plants will be used as fertilizers.

Regular reports on implementation of monitoring plan will be submitted to Azersu JSC, MENR and World Bank.

1. INTRODUCTION

1.1. GENERAL OBJECTIVES OF THE PROJECT

Water supply and sewer system in Azerbaijan is characterized by old and half-destroyed infrastructure, big financial limitations and unsatisfactory exploitation. In the result, the level and the quality of water supply and sewer system services especially in small towns have significantly degraded. Water shortage and use of dirty water for drinking have negatively affected welfare and health of the population respectively. Uncontrolled flow of waste waters to non-designated areas have promoted spread of various infections and pollution of environment.

To eliminate this pitiful situation, Azerbaijan Government and the World Bank are currently discussing the implementation of new projects concerning water supply and sewer systems in small towns and regions. Commencing in 2007, Azerbaijan Government has started to develop projects for reconstruction and development of water supply and sewer system in 20 small towns with the World Bank within the framework of “National Water Supply and Sewer System Project”. One of these regions is Agstafa.

The main objective of the project is to increase exploitation and water use culture through the development of safe for health, reliable water supply and sewer systems.

Assessment of potential environmental and social impacts of the project during construction and exploitation period for obtaining these objectives, and management of these impacts are one of the main issues of the project.

1.2. OBJECTIVE OF ENVIRONMENTAL ASSESSMENT

The main objective of environmental assessment (EA) is to identify potential impacts on natural environment and social and economic life in Agstafa region during reconstruction and exploitation periods of the project; to develop measures for mitigation of negative effects, as well as to develop Environmental Management Plan (EMP) and Environmental Monitoring Plan (EMP).

The scope of works for environmental assessment includes, but not limited to:

• Brief description of main environmental situation, including quantity and quality of water sources affected by the project and water ecosystems potentially exposed to its impacts; water supply quality; current practices in distribution of wastes produced in water and waste water processing; health level of people regarding infections spreading through water and liquid processing; sewage and solid waste conveyance practice in town and other issues identified during assessment in project areas;

• Description of Azerbaijani laws and regulations on project environmental assessment; especially environmental standards which will be applied during the project; required licenses and rules; environmental monitoring requirements, and institutional responsibility identified for management of environmental issues in water and sewer system projects.

• Identifying major environmental issues in construction and utilization phases emerged in the result of project impacts. Potential impacts assessment on environment includes, but not limited to, the following:

- impacts on infrastructure;

- impacts on sensible ecosystems, such as wetlands, water bodies, rivers and lakes with global and regional importance;

- impacts of ground works;

- impacts on human health (sewage infections and pollution risks);

- Impacts on biodiversity, traffic and convenience during construction.

This project has been identified as a “B” category project in World Bank classification for EA (OP/BP4.01)[1]. This requires separate environmental assessment report, including environmental management plan. Moreover, public consultations shall be conducted for discussion of the project and suggested environmental management plan for it. However, considering restoration character of planned works, environmental impact assessment is not expected to be detailed or accurately developed.

1.3. PROJECT DETAILS

1.3.1. General purpose of the project

Technical-economic assessment of the project has been developed by ASPİ Company in 2007[2]. The main goal of the project is to totally replace all useless equipment and pipeline system currently used in water supply and sewer system in Agstafa town with new ones and to provide their long-term and sustainable utilization. Project activities cover the following strategic issues:

• To provide a reliable water supply system for all consumers in the area covered by the project;

• To supply satisfactory amount of water to every consumer on the base of their real demand for water;

• To provide enough water pressure based on demands of every consumer.

The main management components for realising these terms are the following:

• Control over losses in water supply systems;

• Distribution of water within the town network on the base of correct measurements;

• Production of required amount of water and its conveyance to water supply system in required quality and amount.

Ground waters and deep-well waters are planned to be used as a source of water supply in the project. Total reconstruction of sewer systems and construction of water processing plants, as well as prevention of conveying sewages to surface water bodies are one of the most important parts of the project.

1.3.2. Project location and brief summary

Agstafa region is located in north-west of Azerbaijan Republic, 460 km far from Baku, on Qazakh-Ganja plain (Figure 1). Total area of the region is 1504 km2, and the population is 75.6 thousand, 12.1 thousand of which live in Agstafa town. Major railways and highways cross the town.

[pic]

Figure 1. The location of Agstafa region

Current water supply and sewer system. Water supply system of Agstafa town was constructed in 1965-70s, and the main source of water is pressure-free ground waters on the left bank of Hassansuchay river nearby Eynally village which is located 8.5 km south-east from the town (Fig 1). Besides this, 4 water wells which have been drilled in town in 2001-2003 are also used. 1750 subscribers (8612 people), 20 state institutions and 18 other institutions are using the water supply system. Total length of water pipelines is 55.4 km. Technical condition of water supply system is not satisfactory, water loss is great, there is no water cleaning plants and water supply is not continuous.

The sewer system is reported to be developed in 1980-86s, but, in fact, the sewer system is almost ruined to non-existence. There are total 8.2 km of various diameter collectors within the town. Sewage is conveyed to Agstafachay River nearby Poylu village without

[pic]

Fig. 2. Project area

cleaning. Water cleaning plants belonging to Railways Station have collapsed, a farmer is settled in the place where the town utilities service plans to build a water cleaning plant.

Project coverage area and facilities. Water supply. The project covers total reconstruction of water supply and sewer systems of Agstafa town. Drinking water supply of villages nearby water sources and around the town will also be improved. Drinking water supply of Agstafa town, Khatai and Vurghun settlements and Ashagi Goychaly, Hassansu and Eynally villages, total population of which is 13,900, is planned to be improved. Natural growth of population and water supply prognoses are given in the project[3]. Water supply and the capacity of plants, as well as their exploitation duration are planned till that year. Water demand norm per capita is calculated 210 l/day (including expected losses). 4371 m3/day in 2008-2012 and 5465 m3/day in 2022-2027 water consumption is estimated in the town, including the demands of industrial, commercial and administrative entities.

Water supply alternatives for the project are suggested depending on water sources and local topography:

• Option A suggests using the ground water source in Hassansu valley, alongside the railways (35.9 l/sec.) and the ground water source in Agstafachay river-bed (55.1 l/sec.). In this case, existing water sources (wells) in Eynally village remain as back-up. The length of pipelines connecting water sources and water storages will be 13.35 km (Fig. 3).

• Option B suggests using the ground water source in Hassansu valley, alongside the railways; currently used ground water source in Eynally village (70 l/sec.); and the ground water source in Hassansuchay river-bed (30 l/sec.). The length of pipelines connecting water sources and water storages will be 13.25 km. (Fig.4).

The location of water storage facilities and picturing general scheme of in-town pipeline network will be decided in one of the options according water sources. Local topography, allowable working and static pressure limits in water lines network will be the main criteria for making a choice.

All of the equipment used will be the same in both of the options. These include pumps for producing water from wells, pump station for pumping water to second level, water storages and pressure-flow controlling water station sites.

The following are the plants planned to be built in water storage facilities:

• Water storages – 2 off 1500 m3;

• Chlorinator for water chlorination and a store for keeping chlorine containers;

• Auxiliary buildings (control-security room, toilet);

• In-site connection lines and flushing sewer network.

Delivery of water from water storage facilities to consumers will be carried out through water distribution and conveyance lines. Construction works within the project will start from building water distribution lines in streets.

Sewer system will consist of water storing and conveying sewer network and sewage processing plants. Daily volume of sewage produced in Agstafa town is 3631 m3/day, together with Khatai settlement total sewage volume will be 4500 m3/day or 88.6 l/sec. sewage processing plants will be located 4.5 km north-west of Agstafa town, and sewage will be flowed into Agstafachay river after cleaning in 4.5 km area. Conveying cleaned sewage into man-built ponds where they can be re-processed by plants is also suggested.

1.4. ANALYSIS OF PROJECT ALTERNATIVES

1.4.1. ALTERNATIVE 1. Existence of current situation and “Lack of project” case

This case can be considered the worst. The existing water supply system is not able to supply people with drinking water and sewer drainage is almost destroyed anyway.

Critical environmental condition in and around Agstafa town can aggravate, if the current situation will not change. There is great potential of total destruction of damaged water and sewer lines, flooding streets and yards with sewage which, in turn, increases the risk of negative impacts on public health and welfare. Impacts on environment and water ecosystems: pollution of surface and ground water reserves, erosion and pollution of soil, degradation of plants. Existence of such a situation is undesirable, especially with high growth rate of population and creation of new enterprises.

Water shortage and damaged sewer system will promote consumers to refuse paying bills; losses in water lines, and etc. This can also render Agstafa water canal economically ineffective.

1.4.2. ALTERNATIVE 2. Restoration/improvement works will cover drinking water infrastructure only

This alternative suggests construction of totally new water supply and sewer systems, and additionally, surrounding villages of Agstafa town will also be supplied with drinking water according to Options A and B. New water sources will be involved in water supply for this reason. These sources are ground waters under Hassansuchay and Agstafachay river-beds. Insignificant environmental impacts will occur during exploitation of these water sources. Sewage is planned to be flowed to Agstafachay river without cleaning.

According to this alternative, the population will be supplied with continuous, quality drinking water, and water supply will cover 100% of Agstafa town population. Centralized water supply covered only 60-70% of population before the project. Water loss will be reduced, flow-meters will help to save water, and accordingly electricity, and payments by people and organizations will increase. Continuous and quality water supply will affect public health positively and reduce the infections risks.

Improvement of water supply system will increase the volume of sewage waters, and there will be no waste from town sewer system into environment. However, conveying sewage waters to Agstafachay without cleaning will kill ecosystems in river-bed and valley and will pollute ground waters under the river-bed. As sewage will flow into lower parts of the river, self-cleansing capacity of the river will be reduced, because most of the river water is regulated through Agstafachay water storage pond and distributed to irrigation canals. During lo-flow periods (winter, summer) water flow in the river is very low. As Agstafachay flows into Kur river, sewage can affect sensible ecosystems, such as river water quality, river flora and fauna, and forest ecosystems along the river banks. Infection risks to people living along the river banks can increase.

1.4.3. ALTERNATIVE 3. Restoration/improvement works will cover drinking water infrastructure and sewer systems together

This alternative suggests construction of totally new water supply and sewer systems, and additionally, surrounding villages of Agstafa town will also be supplied with drinking water according to Options A and B. New water sources will be involved in water supply for this reason. These sources are ground waters under Hassansuchay and Agstafachay river-beds. Insignificant environmental impacts will occur during exploitation of these water sources. Sewage is planned to be cleaned in water purification plants, then re-processed in “bio areas” and streamed to Agstafachay.

This alternative will also provide continuous and quality drinking water to people, and water supply will cover 100% of Agstafa town population. Water loss will be within the allowable standards, flow-meters will help to save water, and accordingly electricity, and payments by people and organizations will increase. Continuous and quality water supply will affect public health positively and totally reduce the infections risks. Impacts on surface and ground waters will be minimal.

Concluding analysis of suggested alternatives and options, use of Alternative 3 and Option B is more suitable. This is the most appropriate choice regarding minimal environmental impacts and minimizing project costs.

[pic]

Fig.3. Variant A.

[pic]

Fig. 4. Variant B.

2. LEGISLATION, REGULATIONS AND RULES ON ENVIRONMENT

2.1. WORLD BANK ENVIRONMENTAL MANAGEMENT POLICY

The World Bank requires an environmental assessment (EA) of projects proposed for Bank financing to help ensure that they are environmentally sound and sustainable, and thus improve decision making (OP 4.01, January 1999).

Environmental assessment (EA) is such a process effects, scale and type of which depends on potential environmental impacts, especially volume of the suggested work. The purpose of EA and its management is to identify potential environmental risks and spread of their impacts to project areas; to analyze alternatives; to decide ways of making choice; to determine locating, planning, projecting and implementing, as well mitigating measures; to compensate for negative effects on environment and reduce them to minimum; and to identify positive environmental effects.

EA includes environment (air, water and soil); human health and safety; social aspects (deportation, living and historical-cultural areas); and transboundary and global aspects. All changes which can possibly take place in the country, including ongoing ecological researches, national environmental plans, political framework of the country, laws and responsible organizations on ecological and social aspects, country’s behaviour on international treaties and conventions are also taken into account in proposed projects. The Bank does not finance any project, including any EA project which does not comply with country’s commitments.

The following are the issues that the Bank requires to focus on and consider important during EA process:

• Major initial environmental indicators;

• Compliance with environmental regulations of Azerbaijan;

• Sources of social assessment;

• Analysis of alternatives;

• Public participation, discussions and consultations with public and organizations;

• Information disclosure.

2.2. ENVIRONMENTAL CATEGORIES

As the project is aimed at improving public welfare and health, collecting and cleaning waste waters, there are less chances of major environmental impacts. Therefore this project is considered Category A project in World Bank classification, and category criteria and their compliance with national legislation is described in Annex I.

A Category A project is likely to have significant adverse environmental impacts that are sensitive, diverse, or unprecedented. These impacts may affect an area broader than the sites or facilities subject to physical works, can cause serious and irrevocable impact upon the environment or human health. The EIA for a Category A project examines the project’s potential negative and positive environmental impacts, compares them with those of feasible alternatives (including the "without project" scenario), and recommends any measures needed to prevent, minimize, mitigate, or compensate for adverse impacts and improve environmental performance for a Category A project. The borrower is responsible for preparing a report, normally an Environmental Impact Assessment (or a suitably comprehensive regional or sectoral EIA).

2.3. ENVIRONMENTAL LAWS AND REGULATIONS OF AZERBAIJAN

Main legislation acts regulating EA in Azerbaijan are given in Table 1.

Main law on environmental protection and regulating its efficient use is Environmental Protection Law (1999). The Law states main principles of preservation of nature, rights and obligations of government, public institutions and citizens in this area; determines objectives of users of nature in conducting environmental monitoring, term of “ecological insurance” for dangerous activities, and establishes volunteer and compulsory environmental audit of economic activities. Basic responsibilities for violation of its requirements have also been formulated.

Table 1

Main environmental laws

|Acts of legislation |Year adopted |

|Environmental Protection Law |1999 |

|Environmental Safety Law |1999 |

|Specially Protected Natural Areas and Objects Law |2000 |

|Radiation Safety of Population Law |1997 |

|Sanitarian-epidemiological Safety Law |1992 |

|Protection of Atmosphere Law |2001 |

|Soil Code |1999 |

|Industrial and Domestic Wastes Law |1998 |

|Water Code |1997 |

|Radioactive Wastes Law |1994 |

|Soil Productivity Law |2000 |

The law establishes basic standards of environmental quality, environmental requirements for economic activities, and sets requirement for state and local environmental monitoring. Quality of environment is included in environmental standards:

• Maximum concentration limit of noxious substances (MCLNS) in environment;

• Tolerance limits of noxious substances thrown into environment;

• Level of radiation safety;

• Sanitary-hygienic norms and standards.

Violation of above-mentioned norms and requirements can result in termination or restriction of economic activity.

Main goals and objectives of State Ecological Expertise (SEE) and Public Ecological Expertise (PEE) have been identified in Environmental Protection Law. Implementation of recommendations of State Ecological Expertise is compulsory. Public opinion is necessary for making optional or alternative decisions, but different from environmental expertise (EE) and SEE recommendations, this is informative and suggestive.

2.4. REGULATIONS ON WATER SUPPLY AND USE OF WATER

The main law on water supply and efficient use of water resources is Azerbaijan Republic Water Code (1997).

The list of norms and standards valid in Azerbaijan is given below, considering parameters of pollutants and elements:

• “Rules for protecting surface water sources form impure water contamination”. State Committee on Environment and Control over Use of Natural Resources. Baku, 1994;

• “Standardizing rules for use and protection of water sources”, Resolution #2006 of the Cabinet of Ministers of Azerbaijan Republic, October 15, 1988, article 8;

• “Developing draft version of MCLNS standards for enterprises applying technical standards and tolerance limits of waste and recommendations on its content”. State Environmental Committee, 1994;

• Handbook for standardizing concentration of noxious substances discharged into atmosphere and water bodies. State Environmental Committee of USSR. Moscow, 1989;

• State Standard #17.0.0.04-90. Recommendations for filling and updating environmental passport of an enterprise. State Environmental Committee of USSR. Moscow, 1990;

• State Standard 17.0.04-90. Environmental passport. Baku, 1990.

• Rules for use of water objects for cultural and community purposes, recreation and sport purposes. Resolution #216 of the Cabinet of Ministers of Azerbaijan Republic (1998).

• Allowable limits of detrimental effects to fishery water bodies. Resolution of the Cabinet of Ministers of Azerbaijan Republic (1999).

• Guidelines on regulating discharge of pollutants into atmosphere and water bodies. Goskompriroda USSR, 11.09.1989 No.09-2-8/1573

• Rules for state control over protection and use of water bodies. Resolution #198 of the Cabinet of Ministers of Azerbaijan Republic (1998).

• Resolution #150 of the Cabinet of Ministers of Azerbaijan Republic on Application of rules for paid use of water in Azerbaijan Republic (1996).

• Regulations on development and application of limits for use of water. Article #8 (15.10.1998. Council of Ministries’ Decision No: 206).

• Resolution #122 of the Cabinet of Ministers of Azerbaijan Republic on Application of fees for use of natural resources, discharge of pollutants into environment, and on use of funds formed from these sources (1992).

• Regulations on processing, preparation, submission, state expertise, approval and application of systems for comprehensive use and protection of water resources – Article #8 (15.10.1998, The Cabinet of Ministers Resolution #206).

• Radiation Safety Norms QN 2.6.1.054-90 (NRB-90);

• State Standard 2874-82. Drinking Water. Hygienic Requirements and Water Quality Control;

• SNIP (Construction Norms and Regulations):

- For water treatment plants: SNIP 2.04.02-84; State Construction Committee, 1985

- For waste water treatment plants: SNIP 2.04.03-85; State Construction Committee, 1985.

2.5. ENVIRONMENTAL MANAGEMENT INSTITUTIONS

Azerbaijan Government is responsible for the protection of environment. The Ministry of Ecology and Natural Resources (MENR) is the central state institution controlling the protection of environment. MENR is commissioned to control application of environmental rules and adherence to norms and standards.

National Hydrometeorology Department of MENR is commissioned with registration and monitoring of surface water bodies and Geological Department of MENR is commissioned with assessment of ground water resources.

State Melioration and Water Systems Agency is the responsible institution for use of water, exploitation of water storages, canals and melioration facilities, supply of irrigation water.

Azersu JSC carries responsibility for water supply for people, houses, industrial and public entities and for utilization of sewer systems.

According to Article 42 of Environmental Protection Law, EIA should be prepared by independent experts and exposed to public discussions. The document becomes effective after being approved by SEE. SEE is the department of MENR.

MENR also approves Environmental Passports and issues licenses for management of dangerous wastes.

State Committee on Soil and Cartography regulates use of soil, and State Registration of Real Estate Service carries out registration of real estate, including registration of land owners.

The Ministry of Emergency Situations (MES) is the responsible institution for management of natural disasters and industrial accidents. MES also controls the implementation of safety rules in construction, mining and industry.

The Ministry of Health is the state institution controlling the sanitarian-epidemiological situation in the country. The ministry also regulates health protection in work places.

State Metrology and Standardization Service determines relevance of and quality and quantity standards for units of measurement, and carries out governmental policy in this area.

Norms and rules established for implementation of acts of legislation are compulsory for all institutions regardless of their legal form. Norms and rules become effective after being approved by the Cabinet of Ministers.

All organizations have health, safety and environment department. They provide implementation of all norms, rules and standards, and are responsible for keeping appropriate records and conducting trainings.

It should be noted that sometimes uncertainties and parallelisms are encountered in environmental management. This is mostly due to indefiniteness in legislation and regulations, in other cases, are the result of misuse of power by ministries. For example, SEE in MENR carries out EIA and expertise Ecological Passports in one hand, and Ecological Centre in MENR prepares EIA. This is contrary to rules established in EIA Guidelines (i.e. EIA should be prepared by independent consultants).

Another problem is poor coordination of activities among authorized institutions. This sometimes causes conflicting issues. Such kinds of issues include, but not limited to, standards control, private ownership and state registration of lands, and etc.

To solve the above mentioned problems, relevant changes to regulations and strengthening control over their implementation are required.

2.6. ENVIRONMENTAL ASSESSMENT RULES

In 1996, Azerbaijan Government adopted amended EIA procedures corresponding to the systems applied in other countries. New rules have been described in the Regulations for Conducting Environmental Impacts Assessment in Azerbaijan Republic. These Regulations state that “assessments of wastes discharged into environment should start in the beginning, i.e. in the planning stage and before technical-economic assessment.” According to Environmental Protection Law, development of EIA for all projected enterprises having potential impacts on environment is compulsory. Requirements established for development of EIA match with World Bank requirements (OP/BP 4.01).

3. ASSESSMENT OF THE CURRENT SITUATION OF ENVIRONMENT

3.1. NATURAL ENVIRONMENT

3.1.1. Climate

Restored as one of the administrative area units of Azerbaijan Republic in 1990, Agstafa region occupies 1503.7 km2 of area which expands to north-west end of Ganja-Qazakh plain and Jayranchol plain. The region is bordered with south-west and north-east slopes of low highland range which is north-west slope of Small Caucasus Mountains inclining towards north.

Two major climate zones are distinguished in Agstafa region:

1. Mild hot climate with dry winter

2. Mild hot semidesert and arid plain climate with dry winter.

These climate types are characterized by mild winter and hot summer. Depending on orographic structure of the region territory, all climate elements are distributed unequally due to height changing from north to south and from south to center. Total annual radiation is 125-130 kkal/sm2, and total annual radiation balance is 45-50 kkal/sm2.

Annual weather temperature is 12-14°C. Temperature changes from +2°C to -2°C in the coldest month of January, and fluctuates between 20-24°C in July. The highest temperature observed in summer is 40-43°C, and the lowest temperature in winter is -20-25°C.

Precipitation ranges between 420-250 mm changing from north-west to south-east. Precipitation ranges during the year. Most of the atmospheric depositions fall in spring. Average annual humidity is 70-75%. Possible annual evaporation is 800-1000 mm.

Average annual wind speed is 1.3 m/sec. Eastern winds dominate in the area. Number of sunny days is 5-15, number of dark days is 10-20 and number of days hailing is 1-3 a year.

3.1.2. Geological and hydrogeological conditions

Locating in low highlands of north-west slope of Small Caucasus Mountains, Agstafa region constitutes part of Qazakh synclinorium regarding relation of modern relief to tectonic structures and has mainly flat terrain. Geological structure consists of chalk, volcanic-sedimentary and sedimentary rock compositions of Palaeogene, as well as alluvial-proluvial and deluvial-proluvial clay loams, sandstone, gravel and etc. of Quaternary. Total thickness of top chalk depositions on the right bank of Kur river and Agstafachay river-bed reaches 1800-2000 mm which has been exposed to wrinkling during mountain formation processes and complicated by tectonic breaks and furrows. This restricts economic activities in lowlands which constitute southern borders of the region and cause some problems.

Tokens of mineral depositions among natural resources of the region are signs of structural-lithological characteristics of geological development, magmatism and geological development history. Mineral resources are represented poorly within the area, can only be observed in south-western slopes. Existence of endless non-mineral natural resources (whetstone, bentonite, pebble, sand, volcanic ash, raw cement and etc.) makes Agstafa region one of the areas of the Small Caucasus with good perspective.

One of the problems related to geological and geomorphological conditions of the region is the seismicity of the area. Although the region is rated to Richter magnitude 7 earthquake, very weak shocks are observed in the area.

Regarding the hydromorphological condition of the region, ground waters in continental sedimentary depositions have much more importance and cover large area. These waters are less mineralised and can be used for various purposes, including domestic services, balneological purposes and etc.

Depending on tectonic, geomorphological and lithological characteristics of the region area, ground erosion can be wide spread not only in easily corroded rocks, but also in pebbled deep layers. Bottom erosion is 7-8 cm along the right bank of Agstafachay River and reach 1.5-3 m in furrows along the Kur River. Development of furrows along the right bank of Kur River is intensive.

3.1.3. Surface and ground waters

Two rivers cross Agstafa region territory, which are used as a source of fresh water. These are Agstafachay and Hassansuchay. Both rivers start from the territory of Armenian Republic and join Kur River in the end crossing Agstafa region.

A dam was built on Agstafachay River on the border with Armenia and the dam is currently used for irrigating agricultural lands of Qazakh and Agstafa regions through left and right bank canals.

Hassansuchay starts from Armenia and joins Kur River crossing Tatly, Goychaly, Vurghun and Eynally villages of Agstafa region. 40-50% of annual water flow of the river originates from rain, 20-25% from snow and 25-30% from ground water recharge. Some morphometric indicators of Agstafachay and Hassansuchay are given in Table 2.

Table 2

Morphometric characteristics of rivers

|Rivers |Length, km |Area of drainage basin|Density of river |Rate of water flow,|True vertical |True vertical |

| | |(watershed), thousand |network, |m3/sec. |height of source, |height of mouth, |

| | |km2 |km/km2 | |m |m |

|Agstafachay |133 |2.85 |0.6 |13.2 |3002 |210 |

|Hassansuchay |71 |0.35 |0.8 |1.75 |2680 |196 |

Hassansu River almost dries out in its terminus in summer time because of intensive irrigation. 293.3 million m3 of annual water flow of Agstafachay is abstracted for irrigation. Annual distribution of flows of the above-mentioned rivers is given below in relative tables.

Table 3

Annual distribution of water flow

|No. |River/ destination |Unit |Winter |Spring |Summer |Fall |II |

| | | |XII-II |III-IV |VI-VIII |IX-XI | |

|1 |Agstafachay/ |m3/sec. |3.05 |17.49 |9.2 |4.4 |8.65 |

| |Barkhudarly (situated below| | | | | | |

| |water storage level) | | | | | | |

| | |mln. m3 |24.2 |139 |73,3 |34,9 |271 |

| | |% |10 |51 |26.5 |12.5 |100 |

|2 |Hassansu/ Sakhkavan |m3/sec. |0.54 |2.6 |1.8 |0.85 |1.43 |

| | |mln. m3 |4,19 |20,7 |14,3 |6,76 |45,0 |

| | |% |9.0 |44.9 |31.4 |14.7 |100 |

Ground waters. Because of the complicated hydrogeological structure of the area, ground waters in Agstafa region largely differ from each other in regard to depth, feeding specifications, and inclination and mineralisation degree. Climate, rivers and lakes, lithologic composition of rocks, inclination specifications, permeability, economic impacts of people and soil-vegetation layer play special role among factors determining complexity of hydrogeological condition. Formation, feeding, dynamics, as well as mineralisation degree and chemical composition of ground waters depend on the above mentioned factors.

It has been discovered that the amount of sulphuric and nitric compositions in ground waters in the areas between Agstafachay and Shamkirchay has been increasing because of intensive agricultural activities. Main reason of this is that various organic and mineral compositions used as fertilizers get solved in water and soak into ground waters.

In the result of long-term studies in Agstafa region, special hydrogeologic expedition group of the Ministry of Environment and Natural Resources of Azerbaijan Republic discovered that there is huge ground water reservoir in between the courses of Agstafachay and Hassansuchay Rivers.

3.1.4. Soils and land use

Agstafa is one of the regions of Azerbaijan Republic exploited since old times and intensively irrigated depending on characteristics of its landscape. The following soil types are wide spread in Agstafa region: light gray-brown; dark gray-brown; wet grassland; wet grassland-forested; wetland-grassland; and gray. The above-mentioned soil types are distributed in the region in order of horizontal height zones. Therefore, various soil types expanding from plains, especially from Kur River banks to low and medium highlands formed under different climate circumstances vary for their genetic, physical, chemical and mechanical characteristics, as well as for the intensity of exploitation. The amount of humus in gray-brown and gray soils comprises 1.8-3.0% and suffers from salinity. Especially, semideserts have been formed with low productive bushes, wormwoods and ephemers in soils developed on salty rocks under arid climate conditions in sloping plains along the Kur River, foothills and Jayranchol lowland. Salinities are wide spread in lowlands of Jayranchol where water table is too close to the surface and in plains between ridges.

Soil types typical for Agstafa region allow cultivation of agricultural plants. Main agricultural areas are winegrowing, cereal production and animal husbandry. Secondary areas are sheep-breeding, potato-growing, gardening and vegetable-growing. Major natural agricultural resource of the region is winter pastures in Jayranchol plain. These areas are mainly used for grazing livestock (sheep husbandry) and fodder production.

3.1.5. Flora and fauna (Plants and animals)

Vegetation in Agstafa region consists of riparian forests on the left bank of Kur River and winter pastures of Jayranchol grassland. Alluvial grasslands along the Kur River are characterized by tamarisk forests besides riparian forests rich with willow, white poplar, alder-tree and various shrubs. Mountain xerophyte, wormwood steppes in highlands, ephemer, wormwood rich dry steppes in foothills and wormwood semideserts dominate in the region.

Wormwood and Batis group of plants (saltwort and etc.) are developed in sloping foothill plains and in Jayranchol highland where arid climate dominate.

Vegetation in semidesert and dry steppe zones of the region have been exposed to essential changes as a result of the development of irrigative agriculture, subsidence and industrial-technological impacts. Natural phytocenosis have been destroyed in these areas because of growing various agricultural plants and grape and fruit gardens replaced them. Moreover, quarries and sand-pits and various construction plants in the area, as well as construction of roads and hydro-technical infrastructure also removed vegetation.

Jayranchol highland belonging to Agstafa region has 170 thousand ha of pastures, 165 thousand of which is useful. Desert, semidesert, steppe and partially grassland vegetation type phytocenosis constitutes main part of natural vegetation in the area. Wormwood ephemers, wormwood frail salinity, wormwood and other meadow type cenoses are wide-spread.

Agstafa region area has rich animal life typical for various landscape types. Wild boar, wolf, fox, rabbit, hare, badger, beaver, squirrel, pheasant, eagle, wood-pigeon, migrating ducks, white and black geese and other animals and birds live in the forests.

3.1.6. Sensitive areas. Qarayazy reserve

Forests in Agstafa region occupy 7500 ha of area and mainly consist of white poplar, willow, oak and elm-tree. White poplar forests occupy 1826 ha, willow forests 200 ha, oaks 920 ha and alder 50 ha of area in forestry.

Because of poor protection of forestry, density of highly productive soil-protecting and water-purifying forests have decreased, even disappeared in some places in the result of illegal felling of trees and impromptu animal grazing in forests along year. As poplar forests have suitable conditions for natural self-restoration, lots of sprouts and shoots grow there. But shoots perish as a result of cattle grazing in forests, and this impedes natural self-restoration of forests.

Qarayazy oak-aspen tree forest is situated nearby Mughanly and Sadikhly villages of Agstafa region. Qarayazy reserve was established in 1978 in riparian woodlands around the Kur in Agstafa region. According to the Ministry of Environment and Natural Resources of Azerbaijan Republic, the area of the reserve is 4855 ha. 40.9% of this area is covered with forests, 30.8% is not covered with forest, and 28.3% is non-forest (sand flat, swamp, cultivated land, hayland, roads and water bodies) area. 42.8% of forests consist of oak-trees, 28.2% aspen tree and 19.7% of planted trees.

Specially protected oak-aspen forests in Qarayazy reserve consist of biodominant groves where oak-tree or aspen predominate, and there is a small biodominant grove of oak-elm trees. Average age of trees ranges between 150-200 years. Density of forests is low, mainly 02-04. Most of the trees have been exposed to anthropogenic impacts, branches and topsides are cut. Although this forest is within the state reserve, continuously used for animal grazing and trees are cut illegally.

Riparian forests in central and southern parts of Qarayazy reserve have been severely damaged by negative impacts of people. There is no tree in its natural (untouched) condition.

It is necessary to prohibit all illegal activities – illegal felling of trees, animal grazing and etc. which impede restoration of forests, and to take special forestry measures.

3.2. SOCIAL AND ECONOMIC ENVIRONMENT

3.2.1. General social-economic situation

Agstafa region is situated in north-west of Azerbaijan Republic, 460 km far from Baku, in Ganja-Qazakh sloping lowland. Located in favourable natural-geographic area, the region is one of the oldest inhabited places not only in Azerbaijan, but also in entire South Caucasus. Territory of the region is bordered with Georgia, Armenia, and Tovuz and Qazakh regions of Azerbaijan.

As an administrative district, Agstafa region was established on January 24, 1939, then was abolished on December 4, 1959, united with Qazakh region and became part of it. By the resolution of Azerbaijan Government, Agstafa region was separated from Qazakh region and regained its region status since April 1990. Agstafa region has 1 town, 9 settlements and 29 villages.

Although Agstafa is a quite “young” administrative region, it is one of the socially and economically well-developed regions.

Main economic activities. 23 big and small economic sectors have been developed in Agstafa region. Main business sectors are agriculture, production of and trade with domestic goods, non-alcohol drinks and etc.

Majority of the population works in agriculture sector. Animal husbandry is the major agricultural sector. Cattlebreeding and poultry have well-developed. More than 23,159 cattle and more than 222,000 poultry are maintained in the region. Most of them are bred in private facilities and small farms.

Table 4

Cultivated agricultural lands (for all categories), ha

|Year |2000 |2002 |2003 |2004 | 2005 |2006 |

|Cereals and leguminous plants |9231 |12036 |9736 |12064 |12623 |12542 |

|Potatoes |536 |460 |574 |580 |498 |430 |

|Vegetables |1097 |1318 |1370 |1373 |1397 |1450 |

|Melon plantations |209 |119 |150 |151 |82 |101 |

|Vine gardens |290 |286 |286 |286 |313 |287 |

|Fruit and berry gardens |912 |915 |918 |923 |981 |950 |

|Wheat |6317 |9386 |7523 |9129 |9188 |9135 |

Table 5

Main crops (for all categories), tons

|Year |2000 |2002 |2003 |2004 | 2005 |2006 |

|Potato |4419 |4003 |5744 |5807 |5050 |4484 |

|Vegetables |12584 |13803 |14289 |14386 |15308 |15874 |

|Cereal |21594 |32292 |26599 |33157 |35271 |3436 |

|Melons |2001 |1304 |1643 |1653 |831 |1026 |

|Grape |3604 |3687 |3738 |3744 |3792 |4261 |

|Fruits and berries |11151 |11299 |12705 |12764 |14553 |14248 |

|Wheat |14284 |25529 |20833 |25908 |26999 |26959 |

Table 6

Quantity of animals (for all categories), each

|Year |2000 |2002 |2003 |2004 | 2005 |2006 |

|Cattles, including cows and buffalos |17869 |19884 |20792 |21786 |22524 |23159 |

|Pigs |28 |13 |17 |29 |47 |53 |

Health. Current level of health care in the region is partially satisfactory. Such as there arehospitals and medical stations in all settlements and villages of the region supplied with relevant medical personnel. Main indicators of health care in the region are shown in table 7.

Table 7

Main indicators of health care

|Year |2000 |2002 |2003 |2004 | 2005 |2006 |

|Number of doctors |122 |129 |130 |129 |127 |128 |

|Number of nurses |458 |474 |479 |484 |455 |465 |

|Number of hospitals |13 |13 |13 |13 |13 |13 |

|Number of beds in hospitals |560 |560 |560 |560 |560 |560 |

|Number of outpatient departments and polyclinics |20 |19 |20 |20 |20 |20 |

|Capacity of outpatient departments and polyclinics |737 |709 |744 |744 |744 |744 |

|(number of patients) | | | | | | |

Marriage, birth and child death statistics characterize the health level of the population in Agstafa region.

Main indicators of public health:

• Number of marriages 501

• Number of divorces 35

• Number of newborns 1202

• Number of deaths 618

• Death of children under 1 year age 14

Main diseases and illnesses among the region population in all categories (2007)

• All diseases 1963

• Some infectious parasites 738

• New derivatives 85

• Endocrinal disturbance 374

• Blood and blood producing organs 151

• Neural system and sense organs 321

• Blood circulation system 504

• Respiratory organs 304

• Skin and connective tissue 46

• Bones, muscles and connective tissues 94

Infections and parasitic diseases among population in the region

• Tuberculosis of respiratory organs 41

• Total hepatitis virus 25

Hepatitis A 21

Hepatitis B 4

Hepatitis C -

There are 93 sports complexes in Agstafa region for public health protection and 6500 people make use of these complexes.

35 preschool institutions, 39 high schools and 49 libraries serve to educate people. In addition, there are 38 clubs and 2 museums in the region.

Historical monuments. There are 36 locally important historical, architectural and art memorials in the region. 10 of these left from Stone Age, 22 from Bronze Age and 4 from Middle Ages. These monuments are mainly located in Agstafa town, Ashagi Goychaly, Tatly, Kochasgar, Pyrily, Yukhari Goychaly, Qyrily, Hassansu and other villages.

3.3. ENVIRONMENTAL POLLUTION

There is no big industrial plant in the region and wastes discharged to atmosphere have local effects. The project areas cover lowlands and are surrounded by dwellings and farms.

A field trip to current and projected water supply and sewer system areas was realised with the Head of Agstafa Water Canal Department Mr. Vidadi Shahmammadov on February 14-15, 2008. It was found out that main pollution source affecting environment and human health are sewage waters flowing both through inside and outside of Agstafa town in open ditches and channels for 5 km and joining Agstafachay River.

The amount of these sewage waters change depending on hours of day and seasons of year. Waste waters are conveyed from town into an open course by a sewer ditch (Figure 1), then flow through farm lands (Figure 2) and Poylu village (Figure 3) into Agstafachay River (Figure 4). These waters don’t reach the river in winter time because of small amount, and soak into ground polluting ground waters. Lands along the sewage ditch are cultivated for fodder.

[pic]

Figure 1. Sewage waters on the way out of the town

[pic]

Figure 2. Sewage waters among fodder plants farms

These areas are also used as pastures and domestic animals certainly drink these waste waters and eat canes and grass growing in these waters. This in the end cause noxious substance to get into human body and brings about various diseases.

[pic]

Figure 3. Sewage waters near Poylu village (caned water course)

[pic]

Figure 4. Place where sewage waters join Agstafachay River

Sewage is settled in a number of small ponds made in the sewage course by Agstafa Water Canal Department (Figure 5) and evaporated. This primitive method decreases the amount of waste waters flowing along the course, but also accumulates settled solid depositions in the water course. This, in its turn, promotes reproduction of living entities which cause various diseases in hot seasons of year.

[pic][pic][pic][pic]

Figure 5. Small ponds in sewage water course where sewage is settled

Most of sewage waters in Agstafa town are streamed into open ditches, and such situation poses serious dangers to human health (Figure 6).

[pic][pic]

[pic][pic]

Figure 6. Sewer ditches in Agstafa town

The results of the field trip confirm that main pollution source for Agstafa town and its sorrounding, Poylu village and Agstafachay River is sewage waters flowing through open ditches and water course. These waters pollute ground waters in the area as well. This kind of situation contains the risk of various infections for people and domestic animals.

4. ASSESSMENT OF POTENTIAL IMPACTS ON NATURAL AND SOCIAL ENVIRONMENT

4.1. ENVIRONMENTAL IMPACT ASSESSMENT

This section discusses potential impacts on environment and social-economic sectors during water supply and sewer system construction and utilization works in project areas. Environmental impact is the penetration of activity to anything, i.e. to a receiver not actively related to operations. The receiver might be environment (air, soil or water) or biosphere depending on it (human health, society, flora and fauna). The following criteria are used for assessing environmental impacts (Table 8). Legal, administrative and social framework of the project is detailed in Environmental Impact Assessment Framework[4].

Table 8

Criteria used for environmental impact assessment

|Category |Terminology | |

|Scope of impacts |

|Occurance potential |Presice |100 % |

| |Possible |More than 50 %, less than 100% |

| |Predicted |More than 10 %, less than 50% |

| |Not predicted |Less than 10% |

|Repetition of occurance |Constant |Non-stop |

| |Many times |Once or more a day |

| |Less |Less than once a day |

| |Once |Ad hoc occurance |

|Scale of occurance |Regional |More than 10 km (for example, Absheron Peninsula) |

| |Provincial |Within 10 km radius |

| |Local |Outside sanitarian zone |

| |Direct |Inside sanitarian zone |

|Duration of occurance |Continuous |Over exploitation period |

| |Long-term |As long as exploitation period |

| |Medium-term |More than a year |

| |Short-term |Less than a year |

|Indicator of impact on receiver |Very high |200 % more than normal |

| |High |Up to 200 % of normal |

| |Medium |Almost equal to normal |

| |Low |More than 50 % of normal |

| |Very low |Less than 50 % of normal |

Main possible impacts on environment and social-economic sectors during water supply and sewer system restoration operations will occur in construction phase of works. These impacts are short-term, temporary and local impacts.

Assessment of potential impacts on environment and social-economic sectors covers the following areas:

• Dust generated by digging and ground works during construction of pipelines;

• Solid wastes generated by destroying asphalt surface and excavations in streets;

• Noise and vibrations created by construction machines (bulldozers, excavators), power and welding generators, lorries;

• Temporary impacts on traffic, people’s movement and agricultural activities during pipeline construction;

• Overflow of sewage during pipeline welding;

• Impacts on greenery and cultural-social entities in town;

• Impacts on soil and vegetation during excavation of trenches for building water mains connecting water sources with water storage facilities and water supply systems;

• Less expected cases, impacts on health and safety of employees during construction works;

• Impacts on sensitive areas and biodiversity;

• Social and economic impacts;

• Impacts on health.

Water supply and sewer system restoration project comply with all environmental laws and regulations of Azerbaijan Republic. The project is also relevant to Warranty[5], EA (OP/BP 4.01)[6] procedures of the World Bank and the Bank’s Information Transparency Policy[7]. In all cases, the project will be implemented in compliance with national requirements and EIA Statue, all norms, rules and standards will strictly be followed.

4.2. POTENTIAL IMPACTS OF THE PROJECT

As the final goal of the project is improvement of people’s welfare, public health and environment, its impacts are mainly positive. Only in construction phase of the project insignificant impacts and disturbance are expected.

Positive impacts of the project. These impacts will be long-term. The following are positive impacts after project implementation:

• People will be supplied with quality drinking water corresponding to standards;

• Demand for water will continuously satisfied;

• As the water will be conveyed to water distribution system by gravity, less power will be consumed;

• Utilization and technical service expenses will be insignificant, as no coagulants or flocculants will be used for water purification and ground waters will be produced and conveyed by water pressure;

• Soil erosion and pollution in the streets of the town will be prevented by decreasing water loss in water mains;

• Creation of new management system for water supply and sewer system based on modern technologies and continuous control over water quality will diminish risks of infectious diseases and health care expenses;

• Reconstruction of sewer system will prevent pollution of streets in the town and illnesses among people;

• Sewage water purification will end pollution of soils, ground waters, plants and Agstafachay River;

• New jobs will be opened;

• Previous negative effects of waste waters on Poylu village residents and domestic animals will be eliminated;

• Impacts on sensitive ecosystems, Agstafachay River course, swamp vegetation, water ecosystems of Hassansuchay River will be minimized. Reduction of pollution in these rivers will also have positive effects on Kur River ecosystems, including Qarayazy state reserve fauna and flora.

Negative impacts of the project. Possible negative effects and disturbance of the project are only expected in its construction phase. These impacts will be noise, vibrations and emissions discharged to atmosphere generated by heavy equipment and construction mechanisms.

These impacts will be generated during the following activities:

• Temporary impacts generated during the preparation of sites for drilling water wells; drilling of wells; construction of roads connecting drilling sites, water pipelines and pump stations (only in Option A) for pumping water to the second level (totally 25.5 ha area in Option A, and 28.6 ha area in Option B);

• Temporary impacts during the construction of central urban water storage facility and water pipelines (totally 7.5 ha area);

• Impacts during the replacement of old water lines (41 km) and house connecting (39 km) systems with new one in the town.

Measures for mitigation of negative effects are described in Annex II.

4.3. IMPACTS OF USE OF GROUND WATERS ON WATER RESOURCES

Project area water resources include ground waters in the area and water resources of Agstafachay and Hassansuchay Rivers. Detailed information is given in Section 3. Comparing the amount of water removed from water sources to reserves of rivers in the project area, use of water will have no effect on river plume.

Option A. Annual water flow of Agstafachay River in the area selected as water source is 271 mln m3 or 8.65 m3/sec. Planned volume of water which will annually be removed from ground water reserves under the river course is 1.8 mln m3 or 57.1 litre/sec. Removed volume constitutes 0.4% of annual water flow of the river. Therefore it will not affect hydrologic balance of the river.

Annual water flow of Hassansuchay River in the area selected as water source is 45 mln m3 or 1.45 m3/sec. Planned volume of water which will annually be removed from ground water reserves nearby the river course is 1.13 mln m3 or 35.9 litre/sec. Removed volume constitutes 2.5% of annual water flow of the river. This will not affect hydrologic balance of the river.

Option B. 3.4 mln m3 or 110 litre/sec. of water is planned to be removed only from Hassansuchay River basin ground waters annually. It constitutes 7.7% of annual water flow of the river. Even in this case, significant effect on hydrologic balance of the river is not expected.

In fact, there is not a connection between ground waters and river flow in selected water source area of Hassansuchay River. As this area is located in foothills, its ground waters are formed in middle highland zone and recharge potential of ground waters is higher.

Hence, removal of water from the area will not have significant effect on its ground water and surface water reserves.

On the other hand, both of the rivers are used for irrigation, and Hassansuchay does not reach its mouth in summer time, i.e. other impacts on river balance are larger and deeper in scale.

4.4. ASSESSMENT OF IMPACTS FOR OTHER ALTERNATIVES

The only difference between Options A and B is water source.

Option B is more suitable for its environmental and social impacts, as well as from economic point of view. This is stipulated by the following:

• Ground waters under Hassansuchay river-bed selected as water source in Option B are more quality and they have very little chance to be exposed to future pollution;

• There is no need for pumps to convey water from water wells to water storage facilities. Height difference between the water source areas and pressure-flow controlling water storage facilities is 48-130 meters. This means saving power and conveying water by gravity, and there is no need for extra buildings and facilities;

• In Option A, height difference between the water sources under Agstafachay river-bed and the pressure-flow controlling water storage facilities is -45 meters. This, in turn, requires a second level pumping station and construction of an additional water storage facility. Accordingly, construction and utilization costs are higher in this option;

• Water of Agstafachay River is regularly polluted by industrial and domestic wastes in Armenia and by sewage in Qazakh town. As ground water reservoirs under the river-bed are recharged by river waters, pollution risk of ground waters is high. Therefore Option A is not recommended.

Lack of project scenario is the worst case, and maintenance of situation described in section 3.3. means regional-scale environmental and social crisis exists.

5. ENVIRONMENTAL MANAGEMENT PLAN

5.1. IMPACT MITIGATION MEASURES AND ENVIRONMENTAL MANAGEMENT

The main objective of environmental management is to mitigate negative environmental and social impacts, minimize environmental risks, adhere to safety rules and follow all current and strategic measures intended for health protection during construction and utilization phases of the project.

The elements of system determining environmental management during the project implementation are the following:

• Roles, duties and responsibilities of Azersu and Agstafa Water Canal Department management;

• Management of water supply and sewer systems (WSSS);

• Assessment and management of wastes and risks;

• Data and records;

• Exploitation of and technical services to equipment and machines;

• Management of changes;

• Services of other organizations;

• Study of accidents and incidents, analysis and elimination of their consequences;

• Public information;

• Bringing up the reliability, and assessment of, operations.

The purpose of developing measures for mitigating negative environmental impacts is to minimize possible negative environmental and social-economic impacts during the construction and utilization phases of the WSSS restoration project. These measures will be carried out by construction company during the construction phase of the project and by Agstafa Water Canal Department during utilization phase.

Environmental Management Plan is given in Annex III.

5.2. MITIGATION MEASURES DURING THE WSSS INFRASTRUCTURE RESTORATION AND RECONSTRUCTION PHASE, ENVIRONMENTAL MANAGEMENT

5.2.1. Wastes discharged to atmosphere

Heavy equipment and machines used within the project framework will mainly be new and comply with all standards. Impact of emissions from auxiliary equipment (welding equipment, pumps and etc.), construction mechanisms and lorries on atmosphere will be minimal:

• Local impacts on chemical composition and pollution level of air;

• Emissions will quickly spread and disappear.

Management of emissions will depend on compliance of equipment and machinery exploitation with technical and utilization specifications.

The following are measures for emission and dust management:

• Due services to bulldozers, graders, excavators and trucks will be performed in compliance with their exploitation standards, use of recommended fuel will be controlled;

• Regular check of technical condition of all equpment Programme will be prepared and carried out regularly;

• Areas where asphalt surface of roads are removed, trenches are dug and then filled again will be watered to prevent dust pollution during construction of WSSS in town, settlements and villages in arid seasons of year;

• 30 km/h speed limit will be set for movement of vehicles on dirt roads;

• Excavating trenches, building temporary dirt roads and loading/unloading operations will be stopped when wind speed exceeds 11m/s;

• Transported loads will be covered if there is any people and dwellings at 300 m or closer distance.

5.2.2. Waste waters

Possibility of spill of waste waters contained in sewer lines during construction and restoration works is very high.

During completion of these works in the town waste waters in every built and reconstructed site (block) will be stored in temporary pits dug in the ground in sewer line level. Then they will be sucked up and taken out of town by septic vacuum trucks and disposed to sewer ponds. These works will be done in the beginning of construction activities in every block. People will be notified not to dispose sewage into open ditches, and these waters will be removed from yard by septic vacuum trucks.

5.2.3. Solid wastes

As mentioned before, solid wastes (metals, asphalt chunks, rocks, concrete, gravel, sand and etc.) will be generated during drilling operations, removal of asphalt surface, dumping sand for building base underneath pipelines, filling excavated soil back, paving roads, building storages and other works within the project framework.

Solid wastes will be managed as follows:

• Borders of construction sites will be marked beforehand and signs will be erected warning people not to dump garbage and not to enter;

• Metal wastes will be collected and taken to metal processing companies;

• Construction debris (sand, soil, rocks) will be used as an additional material for filling deep trenches when needed. If not needed, they will be taken to city dumping-grounds;

• Removed asphalt debris will be taken to bitumen factories for recycling;

• Speed limits will be set for trucks within the town during transportation of wastes.

5.2.4. Noise management

Noise is disturbing sound. It is measured by energy or pressure intensity unit and measured in decibels (dB). Noise level is proportional to audio-frequency range of human ear and is called A-frequency or dBA. Noise during construction works will be generated by sources shown in Table 9.

Table 9

Expected noise level from technical equipment

|Equipment |Maximum expected noise level in 15 meter distance (dBA) |

|Bulldozers and excavators |87 |

|Cranes |86 |

|Welding equipment |73 |

|Generators |92 |

|Tipper trucks |87 |

|Concrete mixers |87 |

According to norms valid in Azerbaijan, allowable noise level should be as follows:

• 65 dBA in daytime;

• 45 dBA at night-time.

These are very close to World Bank standards[8].

The following actions are planned to reduce noises:

• Equipment and heavy transport will not be used at night time, on Saturdays and Sundays;

• Noise absorbing walls will be set up if there is any dwellings, offices or public places in less than 50 m distance from purification plants and transport routes;

• Nearby people and institutions will be warned about high noise during daytime;

• Special attention will be given to sensitive institutions, especially schools, kindergartens and hospitals;

• Mufflers of heavy equipment will always be kept in good condition.

5.2.5. Fire safety measures

Appropriate measures against fire will be taken in compliance with existing laws and safety rules. These measures are as follows:

• Fire fighting equipment will be placed in all sites having fire potential;

• All personnel will be trained on fire fighting.

5.2.6. Management of impacts on soil and vegetation

There is a potential of land erosion during excavation of trenches for water mains connecting water storage facilities with water sources; construction of a sewer canal; building a water purification plant; and temporary use of dirt roads. For minimizing erosion of soils, water conveying pipes or concrete field ditches will be placed in highly sloping sites of areas, hollows and dry river courses to prevent land slides in slopes.

Impacts on vegetation will be little and insignificant during construction of water mains and canals. If linear objects will come across trees, their trajectory will be changed. But this possibility is very low, because there is no forest in the project areas.

5.2.7. Health and safety management

Safety and safe work place is obtained when all personnel strictly and punctually follow all safety rules and regulations. Construction contractor will train its personnel on safety, environment and quality control, as well as control implementation of safety rules. Works will be guided by existing laws, sanitarian rules and Azersu JSC manuals.

The following measures will be taken to protect health of personnel working in polluted areas:

• Health protection trainings will be conducted;

• All personnel will be supplied with special coveralls;

• Personnel working in excavation of polluted soils and collection, loading, transportation and disposal of sewage waters will be supplied with protective safety glasses, gloves, long rubber boots and dust masks;

• Mobile shower cabins will be set up for personnel;

• Personnel will pass regular medical check-ups.

Use of asbestos and other dangerous substances is not planned.

5.2.8. Regulating people’s movement

Impacts on people and their economic activity, public transport, agricultural activities during construction phase are inevitable.

Construction sites will be divided into sections, works will be planned according to schedule prepared beforehand, people and organizations will be notified ahead of time. Borders of construction sites will be marked, safety boards will be placed, signs regulating movement of pedestrians and traffic will be erected.

5.3. ENVIRONMENTAL MANAGEMENT DURING UTILIZATION PHASE

Agstafa Water Canal Department will be supplied with various modern control, repair, measurement equipment and small laboratory, as well as administrative building, vehicles, special equipment for cleaning sewer systems. Sewage purification process will cover mechanical and biological stages, and these waters are planned to be cleaned to irrigation water level.

WSSS management is carried out according to internal procedures of Azersu JSC. These procedures comply with requirements set by the legislation and management regulations of Azerbaijan Republic.

Potential environmental impacts during utilization phase are small, and their management is described below:

• Continuous control over water quality and standards (Annex V);

• Control over water consumption;

• Prohibiting entrance of people and animals in water protection areas and providing regular guarding;

• Continuous control over chlorination process in water storage facilities, accommodating chlorine storage in chlorination building to safety rules;

• Continuous control over mechanical and biological sewage aeration in sewage purification stations, use of mobile power generator for providing continuous purification;

• Continuous control over quality (microbiological and chemical composition) of purified sewage water;

• Researching options of using purified waters for irrigation purposes and for growing technical crops during dry seasons. Conducting consultations with authorized organizations;

• Continuous control over neutralisation of noxious substances and heavy metals in silt depositions settled in sewage purification plants as a part of technical processes;

• Researching options of mixing depositions with mineral fertilizers and using in agricultural lands agreeing with authorised organizations;

• These depositions are possible to use as fertilizer for plants decorating Agstafa town.

5.4. ENVIRONMENTAL MONITORING PLAN

Conducting monitoring is the major strategic tool in environmental management. Planning monitoring allows to identify and foresee potential impacts.

Duties of Azersu and its regional subsidiaries, including Agstafa Water Canal Department are to supply people with quality and required amount of drinking water, maintain sewer systems in good working condition and purify waste waters. Water quality control is carried out by laboratories of Azersu and its subsidiaries.

Planned monitoring in project areas during and after construction phase is discussed in this section (Annex IV).

Main elements of the environmental monitoring plan are the following:

1. In construction phase:

• Dust monitoring;

• Noise monitoring;

• Solid wastes monitoring;

• Waste waters monitoring;

• Soil monitoring.

2. In utilization phase:

• Monitoring of water volume in water sources and water storages;

• Monitoring of microbiological and chemical composition of water distributed to people, comparison to water standards;

• Monitoring of pollution level of sewage;

• Monitoring of waste waters after purification;

• Monitoring of depositions settled in water cleaning plants;

• Monitoring of cleaned sewage in the place where it joins Agstafachay River;

• Monitoring of soil where depositions generated in water cleaning plants will be used as fertilizers.

6. PUBLIC CONSULTATIONS

According to Environmental Protection Law, consultations with local communities and NGOs must be conducted and their participation should be provided in all stages of project implementation. These consultations will have great importance when project activities directly affect these communities. Natural and social environment must not be changed to their detriment, and any change directly affecting local community shall be made conditional to their prior consent. Representatives of local communities affected by the project and NGOs should be involved in consultations. Azerbaijan has joined Convention on Access to Environmental Information, Public Participation in Decision Making Process and Access to Justice in Environmental Matters (Aarhus, Denmark, 1998) in 1999.

Public consultations will be conducted and press releases will be disclosed in all stages of the project implementation in compliance with Azerbaijani laws on NGOs and Media, as well World Bank Policy on Disclosure of Information[9]. Information about the project will also be disclosed on internet sites of Azersu (azersu.az) and Caucasus Environmental NGO Network (CENN).

Public consultations were held on February 08, 2008 and February 29, 2008 (Annex VI). Meetings with Agstafa town community and representatives of the region’s executive power were held on February 14-15, 2008.

Conflict resolution and handling complains. There is possibility of conflicts with local people during the project implementation, because construction works will cause some inconveniences. If any conflicts, these will be solved through mutual discussions.

Claimants can bring issues to Agstafa Water Canal Department and Azersu in case of the conflict of interests. If they do not get satisfactory answer to their complaints, they can bring issues to local and central executive bodies as established by legislation.

ANNEX I. ENVIRONMENTAL CATEGORIES

Bank Category A (Azerbaijan Law Category 1): A Category A project is likely to have significant adverse environmental impacts that are sensitive, diverse, or unprecedented. These impacts may affect an area broader than the sites or facilities subject to physical works, can cause serious and irrevocable impact upon the environment or human health. The EIA for a Category A project examines the project’s potential negative and positive environmental impacts, compares them with those of feasible alternatives (including the "without project" scenario), and recommends any measures needed to prevent, minimize, mitigate, or compensate for adverse impacts and improve environmental performance for a Category A project. The borrower is responsible for preparing a report, normally an Environmental Impact Assessment (or a suitably comprehensive regional or sectoral EIA).

Bank Category B (Azerbaijan Law Category 2): A Category B project has potential adverse environmental impacts on human populations or environmentally important areas - including wetlands, forests, grasslands, and other natural habitats - which are less adverse than that of Category A projects. These impacts are site-specific; few if any of them are irreversible; and in most cases mitigatory measures can be designed more readily than for Category A projects. The scope of EIA (EA) for a Category B project may vary from project to project, but it is narrower than that of Category A assessment. Like Category A, a Category B environmental assessment examines the projects potential negative and positive environmental impacts and recommends any measures needed to prevent, minimize, mitigate, or compensate for adverse impacts and improve environmental performance.

Bank Category C (Azerbaijan Law Category 3-4): A Category C project is likely to have minimal or no adverse environmental impacts. Beyond screening, no further EIA action is required. Category-C includes activities, the scope, location and content of which will not bring about serious impact on the environment.

Bank Category FI: A Category FI project involves investment of Bank funds through a financial intermediary (FI), in subprojects that may result in adverse environmental impact. (also known as Category F). Sub-projects may be defined as Category A, B or C within the FI Category1. Where FI operations are expected to have Category A sub-projects, the PFI will provide to the Bank a written assessment of the institutional mechanisms for sub-project EIA. This is done prior to the Bank’s appraisal of the PFI and may include identification of measures to strengthen the EIA capacity of the PFI. If the Bank is not satisfied that adequate EA capacity exists within the PFI, all Category B sub-projects EIA reports and, where appropriate, Category B sub-project EIA reports, are subject to prior review by the Bank. It is important that the project management unit and the lending institution be able to identify activities for which funding is being requested and which may fall into either of the World Bank’s Category A or Category B (for the most recent information on environmental categories see Website ( environment)

ANNEX II. ENVIRONMENTAL MANAGEMENT PLAN

|Phase |Source |Impacts |Mitigation measures |Measure cost |Institutional |Notes or reverse effects |

| | | | | |responsibility | |

|Construction phase A. |Excavation of trenches,|1. Generation and spread |Areas where asphalt surface of roads are removed, |Not applicable |Construction contractor|Reverse effects are not |

|Construction of water |removal of asphalt |of dust |trenches are dug and then filled again will be |(n/a) | |expected after completion |

|supply and sewer |surface in the streets,| |watered to prevent dust pollution during construction| | |of construction and |

|system network in town|burial of pipelines, | |of WSSS in towns, settlements and villages in arid | | |restoration works |

| |filling trenches, | |seasons of year | | | |

| |transportation of | | | | | |

| |generated wastes, new | | | | | |

| |paving on roads. | | | | | |

| | |2. Solid wastes (metal, |- Metal wastes will be collected and taken to metal |n/a |Construction contractor|Reverse effects are not |

| | |concrete, rock pieces, |processing companies; | | |expected after completion |

| | |asphalt, sand and etc.) |- Construction debris (sand, soil, rocks) will be | | |of construction and |

| | | |used as an additional material for filling deep | | |restoration works |

| | | |trenches when needed. If not needed, they will be | | | |

| | | |taken to city dumping-grounds; | | | |

| | | |- Removed asphalt debris will be taken to bitumen | | | |

| | | |factories for recycling; | | | |

| | | |- Speed limits will be set for trucks within the town| | | |

| | | |during transportation of wastes. | | | |

| | |3. Potential of sewage |Waters will be stored in temporary pits, then will be|n/a |Construction contractor|Reverse effects are not |

| | |spills from sewer lines |sucked up and taken out of town by septic vacuum | | |expected after completion |

| | |during sonstruction and |trucks and disposed to sewer ponds | | |of construction and |

| | |restoration works | | | |restoration works |

ANNEX II. ENVIRONMENTAL MANAGEMENT PLAN

|Phase |Source |Impacts |Mitigation measures |Measure cost |Institutional |Notes or reverse effects |

| | | | | |responsibility | |

|Construction phase A. |Excavation of trenches,|4. Noise generated by |- Equipment and heavy transport will not be used at night|n/a |Construction |Reverse effects are not |

|Construction of water |removal of asphalt |construction equipment and|time, on Saturdays and Sundays; | |contractor |expected after completion |

|supply and sewer |surface in the streets,|lorries |- Noise absorbing walls will be set up if there is any | | |of construction and |

|system network in town|burial of pipelines, | |dwellings, offices or public places in less than 50 m | | |restoration works |

| |filling trenches, | |distance from purification plants and transport routes; | | | |

| |transportation of | |- Nearby people and institutions will be warned about | | | |

| |generated wastes, new | |high noise during daytime; | | | |

| |paving on roads. | |- Special attention will be given to sensitive | | | |

| | | |institutions, especially schools, kindergartens and | | | |

| | | |hospitals; | | | |

| | |5. Impacts on movement of |Borders of construction sites will be marked, safety |n/a |Construction |Reverse effects are not |

| | |people and traffic |boards will be placed, signs regulating movement of | |contractor |expected after completion |

| | | |pedestrians and traffic will be erected | | |of construction and |

| | | | | | |restoration works |

|Construction phase B. |Preparation of drilling|1. Soil erosion potential |For minimizing erosion of soils, water conveying pipes or|n/a |Construction |Reverse effects are not |

|Drilling of wells in |sites, building | |concrete field ditches will be placed in highly sloping | |contractor |expected after completion |

|water sources, |temporary roads, | |sites of areas, hollows and dry river courses to prevent | | |of construction and |

|construction of |excavation and filling | |land slides in slopes | | |restoration works |

|pipelines and water |of trenches for | | | | | |

|mains, construction of|pipelines, construction| | | | | |

|water storage, |works | | | | | |

|purification plant, | | | | | | |

|and water canal | | | | | | |

| | |2. Impacts on plant life |Impacts on vegetation will be little and insignificant |n/a |Construction |Reverse effects are not |

| | | |during construction of water mains and canals. If linear | |contractor |expected after completion |

| | | |objects will come across trees, their trajectory will be | | |of construction and |

| | | |changed. But this possibility is very low, because there | | |restoration works |

| | | |is no forest in the project areas | | | |

ANNEX II. ENVIRONMENTAL MANAGEMENT PLAN

|Phase |Source |Impacts |Mitigation measures |Measure cost |Institutional |Notes or reverse effects |

| | | | | |responsibility | |

|Utilization phase |Sewage conveyed to |1. Deterioration of water |Sewage will be processed in water purification |Included in total |Agstafa Water Canal |Reverse effects can only |

|(2008-2027) |Agstafachay River |quality in Agstafachay |stations and cleaned to irrigation water level |costs of the project|Department |occur during emergency cases |

| | |river course and bed | | | | |

| | |2. Impacts of sewage on |Sewage will be conveyed by a canal and |Included in total |Agstafa Water Canal |Reverse effects can only |

| | |sorrounding lands |pollution of sorrounding lands will be |costs of the project|Department |occur during emergency cases |

| | | |prevented | | | |

| | |3. Impacts on ground |Pollution of ground waters will totally be |No cost is required |Agstafa Water Canal |Reverse effects can only |

| | |waters |stopped | |Department |occur during emergency cases |

| | | | | | |and spills |

| | |4. Impacts on sensitive |There will not be impacts on water-swamp |No cost is required | |No reverse effect is expected|

| | |ecosystems |ecosystems of Agstafachay River compared to | | | |

| | | |current situation | | | |

| | | |No negative impact on Qarayazy state reserve is| | | |

| | | |expected as there is no direct contact | | | |

| | |5. Impacts on health |Positive impacts are expected. Risks of people |No cost is required | |No reverse effect is expected|

| | | |being exposed to infections decrease | | | |

ANNEX III. ENVIRONMENTAL MONITORING PLAN

|Phase |Which parameters will |Where will the monitoring be |How will the |When will monitoring be |Why monitoring is conducted on |Cost of measures |Institutional |

| |be monitored? |conducted? |monitoring be |conducted on this parameter? |this parameter? | |responsibility |

| | | |conducted and with | | | | |

| | | |what equipment? | | | | |

|Construction phase A. |Dust |Construction sites and load |Observation and |Everyday, until construction |Protecting human health |n/a |Contractor |

|Construction of water | |transportation routes |inspection |works finish | | | |

|supply and sewer | | | | | | | |

|system network in town| | | | | | | |

| |Noise monitoring |Construction sites |Observation and |Everyday, until construction |Protecting human health |n/a |Contractor |

| | | |inspection |works finish | | | |

| |Solid waste monitoring |Construction sites and load |Observation and |Everyday, until construction |Protecting environmental pollution|n/a |Contractor |

| | |transportation routes |inspection |works finish | | | |

| |Waste water monitoring |Construction sites |Observation and |Everyday, until construction |Protecting environmental |n/a |Contractor and Agstafa |

| | | |inspection |works finish |pollution, decreasing risks of | |Water Canal Department |

| | | | | |infectious diseases | | |

| |Soil monitoring |Sites where pipelines and |Observation and |Regularly |Preventing degradation of soil and|n/a |Contractor and Agstafa |

| | |temporary dirt roads will be |inspection | |vegetation | |Water Canal Department |

| | |built | | | | | |

ANNEX III. ENVIRONMENTAL MONITORING PLAN

|Phase |Which parameters will |Where will the monitoring be |How will the monitoring be|When will monitoring be |Why monitoring is conducted |Cost of measures |Institutional |

| |be monitored? |conducted? |conducted and with what |conducted on this parameter? |on this parameter? | |responsibility |

| | | |equipment? | | | | |

|Utilization phase |Monitoring of water |Water sources nearby Eynally |Measuring fluid level and |Fluid level every 10 days, |Efficient use of water |Included in total |Agstafa Water Canal |

|(2008-2027) |volume in water sources|village and Hassansuchay |flow rate in water wells |and flow rate continuously |resources in water sources |costs of the |Department |

| |and water storages |river-bed |with fluid shot device and| | |project | |

| | | |flow meter | | | | |

| |Monitoring of |Quality indicators of water |Water samples will be |Once a month; every 3, 5, or |To keep water quality and |Included in total |Agstafa Water Canal |

| |microbiological and |sources nearby Eynally village |taken in standard bottles |10 days in emergency |quality water supply to |costs of the |Department |

| |chemical composition of|and Hassansuchay river-bed: |and analysed in laboratory|situations |people under control |project | |

| |water distributed to |- physical characteristics of | | | | | |

| |people, comparison to |water | | | | | |

| |water standards |- turbidity | | | | | |

| | |- amount of anions and cations | | | | | |

| | |- microbiological indicators | | | | | |

| | |- heavy metals | | | | | |

| |Monitoring of pollution|Quality indicators of sewage |Water samples will be |Once a month; every 3, 5, or |To control sewage |Included in total |Agstafa Water Canal |

| |level of sewage |generated in town: |taken in standard bottles |10 days in emergency |purification |costs of the |Department |

| | |- physical characteristics of |and analysed in laboratory|situations | |project | |

| | |water | | | | | |

| | |- turbidity | | | | | |

| | |- amount of anions and cations | | | | | |

| | |- microbiological indicators | | | | | |

| | |- heavy metals | | | | | |

ANNEX III. ENVIRONMENTAL MONITORING PLAN

|Phase |Which parameters will |Where will the monitoring be |How will the monitoring be|When will monitoring be |Why monitoring is |Cost of measures |Institutional |

| |be monitored? |conducted? |conducted and with what |conducted on this |conducted on this | |responsibility |

| | | |equipment? |parameter? |parameter? | | |

|Utilization phase |Monitoring of sewage |Quality indicators of water in the |Water samples will be |Once a month; every 3, 5, |To control sewage |Included in total |Agstafa Water Canal |

|(2008-2027) |after purification |outlet of water purification plant: |taken in standard bottles |or 10 days in emergency |purification |costs of the |Department |

| | |- physical characteristics of water |and analysed in laboratory|situations | |project | |

| | |- turbidity | | | | | |

| | |- amount of anions and cations | | | | | |

| | |- microbiological indicators | | | | | |

| | |- heavy metals | | | | | |

| |Monitoring of |Determining mechanical composition of|Water samples will be |Once a month, and whenever|To control sewage |Included in total |Agstafa Water Canal |

| |depositions in water |depositions, noxious substances and |taken in standard bottles |depositions are removed |purification and to keep |costs of the |Department |

| |purification plants |microbiological parameters required |and analysed in laboratory|from purification plant |recycling of depositions |project | |

| | |by standards | | |under control | | |

| |Monitoring of cleaned |Where sewage canal joins the river |Water samples will be |Once a month |To control sewage |Included in total |Agstafa Water Canal |

| |sewage in the place | |taken in standard bottles | |purification |costs of the |Department |

| |where it joins | |and analysed in laboratory| | |project | |

| |Agstafachay River | | | | | | |

ANNEX IV. DRINKING WATER MONITORING STANDARDS IN AZERBAIJAN

|INDICATOR |Standards |

|pH |6,0-9,0 |

|Turbidity |1.5 mg/l |

|Microorganism (Colonies are formed in 1 ml test water) | ................
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