World Bank Document

Public Disclosure Authorized AZERBAIJAN AMELIORATION AND WATER FARM JOINT STOCK COMPANY

ENVIRONMENTAL AND SOCIAL ASSESSMENT FOR WATER SUPPLY AND WASTEWATER SYSTEM INVESTMENTS FOR 4 RAYONS

Public Disclosure Authorized (AGSU, ISMAYILLI, SIYAZAN AND SHABRAN) WITHIN SECOND NATIONAL WATER SUPPLY AND SANITATION PROJECT

ENVIRONMENTAL IMPACT ASSESSMENT REPORT

AGSU RAYON

Public Disclosure Authorized

EPTISA Servicios de Ingenieria, S.L Hydrometeorology Consulting Company Updated by H.P. Gauff Ingenieure Gmbh & Co. KG / Temelsu Engineering Services Inc.

Baku- December 2013 Public Disclosure Authorized

TABLE OF CONTENTS

ABREVIATIONS ...... 4

EXECUTİVE SUMMARY… …………………………………………………………………………………5 1.0 INTRODUCTION…………………………………………………………………………………....24 1.1 Context of the EIA ………………………………………………………………………….24 1.2 Purpose of the EIA …………………………………………………………………...... 26 1.3 Methodology ………………………………………………………………………………..28 2.0 POLICY, LEGAL AND ADMINISTRATIVE FRAMEWORK……………………………………32 2.1 Policy Framework ………………………………………………………………………….32 2.2 Legal Framework …………………………………………………………………………...37 2.3 Administrative Framework …………………………………………………………………39 3.0 PROJECT DESCRIPTION ………………………………………………………………………….43 3.1 Problem Statement…………………………………………………………………………..43 3.2 Project Identification ………………………………………………………………………..49 3.3 Map of project area and the location of project infrastructure to be included………...... 63 3.4 Legal and Institutional Strengthening………………………………………………………..66 4.0 BASELINE DATA ………………………………………………………………………………….67 4.1 Bio-Physical Description of Project Area ………………………………………………….67 4.2 Socio-Economic Description of the Project Area ………………………………………….73 4.3 Projected Changes In Project Area…………………………………………………………77 4.4 Data Reliability …………………………………………………………………………….78 5.0 ENVIRONMENTAL IMPACTS ………………………………………………………….79 5.1 Environmental Issues…………………………………………………………………….…79 5.2 Potential Positive Project Impacts ……………………………………………………….…80 5.3 Potential Negative Project Impacts and Mitigation Measures ……………………………..81 5.4 Data Evaluation …………………………………………………………………………….93 6.0 ANALYSIS OF ALTERNATIVES …………………………………………………………………94 6.1 No Project Scenario ………………………………………………………………………...95 6.2 Water Supply System improvement only………………………………….…………….....96 6.3 Water Supply and Waste Water Management System improvement………………………………………………………………………………100 7.0 PUBLIC CONSULTATION……………………………………………………………...... 102 8.0 ENVIRONMENTAL MANAGEMENT PLAN …………………………………………………...110 8.1 Application of Mitigation Measures ………………………………………………………119 8.2 Monitoring ……………………………………………………………………………..….126 8.3 Capacity assessment for the Environmental Management of the Project……………..…131 LIST OF REFERENCES……………………………………………………………………………………132 ANNEXES…………………………………………………………………………………………….…… 133 ANNEX I. Project Area in Agsu region ANNEX II Existing Water supply in Agsu region ANNEX III. Existing Sewer System in Agsu region ANNEX IV Proposed Water supply system options in Agsu region ANNEX V. Pressure zones ANNEX VI. Water requirements and standards

ANNEX VII. Water quality analysis results of Agsu ANNEX VIII . Characteristics of surface water intended for the abstraction of drinking water.. ANNEX IX. Summary report of consultation meetings with key stakeholders ANNEX X. Public meeting on discussion of EİA report for Agsu

ACRONYMS and ABBREVIATIONS

ADB Asian Development Bank AZERSU Azersu Joint Stock Company AZN AZN Azeri New Manats AWFC Azerbaijan Amelioration and Water Farm Joint Stock Company FS Feasibility Study HH Household IBRD International Bank for Reconstruction and Development (The World Bank) IT Information Technology IDA International Development Association IDP Institutional Development Plan masl Meters above sea level MENR Ministry of Ecology and Natural Resources mm Millimeters MoH Ministry of Health O&M Operation and Maintenance P.A. Per Annum PIU Project Implementation Unit Project Second National Water Supply and Sanitation Project - Feasibility Study for 16 Rayons in Azerbaijan SNWSSP Second National Water Supply and Sanitation Project SSC State Statistics Committee TOR Terms of References UN United Nations VAT Value Added Tax WB World Bank WHO World Health Organization WSS Water supply and sanitation WW Wastewater WWTP Wastewater Treatment Plant

EXECUTIVE SUMMARY

1. GENERAL

The Azerbaijan Second National Water Supply and Sanitation (SNWSS2) Project is financed by the Government of Azerbaijan and World Bank. The employer for the project is Azerbaijan Amelioration and Water Farm Open Joint Stock Company (OJSC) .

Eptisa (Spain) in association with Hydrometeorology Consulting Company (Azerbaijan) was contracted to prepare the Environmental Impact Assessment (EIA) of the proposed project to assess the environmental and social impacts of project and to identify the mitigation measures both during construction and post development. Final EIA study provided recommendations on mitigation measures and proposes an environmental management and monitoring plan.

This Environmental Impact Assessment report is an update of the report submitted by EPTISA Servicios de Ingenieria, S.L Hydrometeorology Consulting Company. The update of this report has been realized by H.P. Gauff Ingenieure Gmbh & Co. KG /Temelsu Engineering Services Inc on request of World Bank.

Agsu is located in the foothills of the Greater Caucasus Mountains and the Agsu region of Shirvan plain. The population of the Agsu rayon, including the urban and rural areas, has been recorded as 74,100 as by the census made in 2012. The population density is 72.6 persons per km2.

The general land form of Agsu has evolved from salty sediments, and the area is generally known as steppe. The soil structure is generally formed from sediments and the region is characterized by relatively slow infiltration capacity. The natural slope of Agsu area varies from between 1 and 5 meters per km. The land form is generally even, with shallow riverbeds.

The landscape of the upland area of the rayon consists of foothills and sloping plains and mountains that rise to a height of 700-1000 meters above sea level. Mountainous areas have been characterized with rivers, valleys and the landscape of the complex fragmented ravines. The low gray mountains form Shirvan mountain range from Goychay to Pirsaatchi.

Girdiman River, Agsu chay, Aghdarchay and Nazirchay are the main rivers and creeks laid within the area of Agsu rayon. Other surface waters laid within the Agsu rayon are Kukesh Qobu and Javanshir Lake on the west, Upper Shirvan Canal at the south. Agsu chay has originates in the Lahij Mountains. The Agsu chay spreads out widely at the south of Agsu rayon center. In Agsu rayon center 20.400 people live according to the census result of year 2012. The project service area for water supply was decided to include the Agsu town and Pirhasanli Village. During the detailed engineering phase Padar, Gursulu, Kalagayli, Yenikend, Alabad, Tecile and Muradli villages has been included into the water supply system. The water supply network shall be designed only for Agsu Town. Sewerage system and wastewater treatment plant was decided to include Agsu town and Muradli and Tecile villages (the villages will be connected to the main trunk only that is sewerage collection system will not be designed for the villages). The estimated population figures considering the service area will be 32,200for water supply and sewerage network it will be 23,100 and wastewater treatment plant it will be 24,200 on year 2030.

2. EXISTING SITUATION Water Supply System: Some years ago a well field was constructed 3 km upstream on both riverbanks of Agsu River to feed the 2 main reservoirs which are situated on the upmost level of the town to supply the western network. As the gravel of the mountainous riverbed is in motion all facilities of the well field has been demolished during the annual flooding and cannot be used anymore. Water from the Agsu West reservoirs is distributed by 4 main pipelines (3 x DN219, 1x DN159) supplying different areas from north to south between 170–135 masl. The village Karakashli (~1600 inhabitants) is also supplied by this network.

The main pipeline (DN 219, Steel: 0,5 mm) of the eastern distribution network was replaced in 2007/08 within reconstruction of the 2.85 km long Heydar Aliyev Road which is the main street of the eastern riverside. This new road is in a very good condition. Remaining distribution pipes are from 1970-82 have the same problems like in western Agsu.

Wastewater System: In 1985 the Rayon Hospital has constructed a sewer of about 1.5 km length (DN219, ductile iron) to discharge their wastewater to an open drainage ditch (See Photos) in the southern part of the town. This sewer is crossing private land and has been overbuild in some cases by new houses. 50-70 properties discharge their wastewater by illegal connections to this line. As reported by Agsu Rayon another sewer was built for sewerage of some industrial enterprises starting at the wine factory in the North and leading their wastewater to a drainage channel at the western edge of the municipal area. Most of the wastewater is discharged at the properties in simple pits or - if the standard of living is higher – in septic tanks. If they are filled up they were emptied by one of the four private operated tank trucks for sludge disposal. It can be estimated that these trucks discharge the sludge illegally in the surrounding area. If possible the inhabitants have installed direct pipes to drainage channels or Agsu River to dispose their wastewater. The city has nearly no rainwater drainage facilities even at the main roads. Due to the loamy ground significant rainwater values remain on the streets for several days.

3. PROBLEMS

The situation with water supply in the town has not changed in the last 5-6 years, even worsened The problem of water supply in the town is among the most important matters. There are frequent interruption of water supply. Untreated wastewater discharged to the small canals and wastewater seeping from the septic tanks to ground result in groundwater contamination, odor and hygienic problems in Agsu rayon center. On the other hand, ground water resources which are partly used by the consumers in Agsu Rayon center are contaminated with the wastewater leaking from the septic tanks and reaching to the aquifers. The sewerage system under construction is not designed well to make house connections efficiently. Also unhealthy situation of the existing wastewater treatment plant imposes health and safety conditions of the people living around it.

In detail, existing problems can be outlined as follows:

General · Depletion of existing WSS assets due to lack of sustainable investments and insufficient capacities for Operation and Maintenance (O&M) · Little appreciation of public infrastructure sector and its organizations due to bad quality and service – consumers implement their individual solutions without a general concept · Provisional solutions become permanent solutions – mostly in consequence of damages and due to the limited budgets · Low awareness of hygienic interrelations of water supply, wastewater disposal and livestock farming cause high rates of water borne diseases · Major WSS supply lines and other facilities often affected by landslides and earthquakes

Water Supply

· Lack of mechanism for application of legislation to water withdrawal from Water Sources ühich are used also by other users, · No sound legal protection of future investments · Limited availability and/or capacity of existing water sources especially during summer · Well fields and water drainage systems which were implemented in the mountainous river gravel beds, were often destroyed by flooding · Limited number and capacity of water supply pumps and reservoirs – no extension according to growth of population and industry · Damages caused by great age, low material quality and insufficient installation depth of pipes lead to high losses within the water distribution network 6

· Interrupted water supply and temporarily empty pipes cause bad water quality at house connections (bacteria, sediments, rust etc.) · Hygienic problems by private water storage tanks · Manual operation of the water distribution system – no automation and control · Preference of gravity flow systems and bad reputation of pumps – as high manual effort and energy cost necessary to operate the existing old pumps.

Wastewater · Damages of existing sewers results in irregular wastewater flows at the surface · Too few shafts causing very limited access to existing sewer network · No equipment for maintenance and repair – no chance for troubleshooting · Sewerage disposal in unlined pits leads to pollution of ground and surface water – as private wells are also used for water supply this constitutes a serious health risk · Sludge disposal from pits and septic tanks is done illegally outside the municipal area

Socio-Economic Situation · Low connection rate to public water supply network – many people are used to living with little water as they must carry it for a longer distance or buy it from tank trucks · Toilets mostly outdoor using open pits without flushing – future connection to a new sewer system will depend on personal interest and require private investments · Popular cohabitation with livestock within the urban settlement without sufficient disposal of excrements

Institutional Situation

· Low level of support for Local Sukanal (water agency) Departments by central organizations and institutions, and very limited provision of know how, equipment, vehicles etc. from central departments. · Institutional complexity and dependency on central organizations and institutions inhibits solutions and investments on Rayon level · National Water Supply Tariffs are not cost-effective to cover necessary investments – for better water quality and 24hour supply the majority of consumers need to agree to higher rates. The current tariff rates apply to a normative demand which is much higher than actual. · Value and qualification of Rayon Sukanal staff are affected by the need of manual handling and trouble shooting. They are not in line with future O&M requirements. Skepticism of villages concerning incorporation by the cities and/or integration by larger WSS organizations – disadvantages due to limited independence and priority of the city.

There is an immediate need to address these issues through development and implementation of an efficient and effective WSS system that is affordable to local communities and which meets the needs of the range of stakeholders that it must serve.

4. PROJECT DESCRIPTION

The Government of Azerbaijan planned the implementation of National Water Supply and Sanitation Project with the financial assistance of World Bank since 2007. The second phase of the same project has been approved on date 27 May 2008 as Second National Water Supply and Sanitation Project(SNWSSP). The implementing agency of this second phase project is Azerbaijan Amelioration and Water Management Open Stock Company AWMC. The general objective of this Project is to improve the availability, quality, reliability, and sustainability of water supply and sanitation (WSS) services in 16 of Azerbaijan's regional (rayon) centers. Better infrastructure services of the secondary towns and cities shall be implemented to improve living conditions, reduce poverty and support local economic growth.

The Project contains 3 components:

· A1: Rayon Investment component, which will finance priority investments in the WSS sector, such as the rehabilitation and extension of WSS systems, including facilities for wastewater and septic sludge treatment in rayon centers across Azerbaijan; · B1: Institutional Modernization component which will support development and implementation of an Institutional Development Plan (IDP) for Azersu and its subsidiary companies and State Amelioration and Water Management Agency (SAWMA), to improve the operational efficiency and sustainability of WSS services; · C1: Project Implementation and Management component, which will support project implementation by financing project management activities including Incremental Operating Costs due to the project, training, and annual audits of the project and entity accounts and financial statements.

In the project documentation it is indicated that the primary objective of the project is to improve the health and livelihoods of the urban communities through the provision of safe, potable water quality and adequate water supply and sanitation.

The Project aims to achieve its objectives through:

· Implementation of a new, efficient and appropriately sized water and sanitation infrastructure by rehabilitation of existing facilities and construction of new ones where this is necessary. · Determination of the operational bottlenecks of the water and sanitation system and development of project proposals to improve efficiency · Strengthening of local know how and capacity to deliver and maintain these services · Developing a sense of local ownership through community participation

The water quality analysis has been carried out in Agsu at one location of Girdimanchay Gursulu (See Annex VII). The collected sample fits into the WHO, EU and Azeri drinking water standards except biological and some physical parameters.

Water supply system of the city shall be reconstructed in order to supply water from Girdimanchay Drains. Girdimanchay has an average flow capacity of 1.44 m³/s and has a minimum flow capacity of 390 l/s. The water that will be withdrawn from this source will be 50 l/s. Another water supply line has been constructed by the Governor of Rayon Center from Guzay Spirings at an amount of 30 l/s. The total water supplied will be 80 l/s for Agsu Town and vicinity villages. The total water supply demand for 67,08 l/s considering the vicinity villages. The length of main transmission line will be approximately 17.8 km from Girdimanchay River. The amount of water to be supplied for Agsu will be partly supplied from Girdimanchay within the scope of the project.

The supplied water shall be treated with simple physical treatment and/or disinfection then will be supplied to the water distribution network. One new water reservoirs with volume of 1500 m3 have been proposed to be constructed. The total length of main pipes between the water reservoirs will be approximately 4.9 km. Another water reservoir shall be rehabilitated having a volume of 1000 m³. Besides that all of the infrastructural components existing and newly constructed or rehabilitated will be equipped for SCADA system.

All of the existing drinking water distribution network shall be reconstructed and extended with high density polyethylene pipes. The total length of distribution lines will be approximately 111 km. The sewerage system under the construction is proposed to be used as storm water collection system. A new sewerage collection system shall be reconstructed and extended corrugated high density poly ethylene pipes. The length of sewerage network construction will be approximately 114.2 km. The collected wastewater shall be treated within a wastewater treatment plant having a capacity of 31,000 PE on year 2030 and discharged to the one of the drainage collectors. The WWTP will be a single-stage aeration processes, including phosphorus removal. The WWTP will consist of the following main components: · Inlet pumping station · Grit and Grease Chamber Venturi Flume

· Bio-Phosporus Tank · Aeration Tank · Final Sedimentation Tank · Return and Excess Sludge Pumping Station · Sludge Holding Tank · Sludge Building · Blower Building · Transformer and Generator Building · Administration Building · Guard House · Final Sedimentation Tanks Distribution Building · UV Disinfection Building · Odour Removal Units (2 Sets) · Biological Treatment Distribution Chamber and FeCl3 Dosing Station

Treated wastewater will be discharged to the AG-2 Collector which runs into Girdimanchay. Dewatered sludge Dry Solid Content Ratio will be 25% . The amount of sludge will be lessen to approximately 11 m³/day. The sludge drying beds will not be required more and land use will be minimized. As known the European Council Directive (91/271/EEC) concerning urban waste water treatment (herein after named UWWTD) which is the standard applied in Azerbaijan. According to UWWTD the effluent standards has been set as:

EU Council Directive 97/271/EC (UWWTP Directive) Parameters Maximum Effluent Concentration BOD5 - Biochemical Oxygen Demand 25 mg /l COD – Chemical Oxygen Demand 125 mg / l TSS – Total Suspended Solids 35 mg /l TN- Total Nitrogen* 10 (>100,000 PE) 15 (10 000-100,000 PE) TP – Total Phosphorus* 1 (>100,000 PE) 2 (10,000-100,000 PE) *: Requirements for discharges from urban waste water treatment plants to sensitive areas which are subject to eutrophication. The Specially Protected Water Objects, are defined assensitive areas by the Resolution of the Cabinet of Ministers of the Azerbaijan Republic No.77 of May 1, 2000. This resolution added some articles to the Water Code of the Azerbaijan Republic of December 26, 1997(Article 74 ). The resolution states following:: “There shall be the following categories of specially protected water objects: - areas of internal waters of the Azerbaijan Republic and of the Azerbaijan Republic section of the Caspian Sea (lake); - wetlands; - running water courses and water collectors designated as rare natural landscapes; - zones of protection of source and mouth of water objects; - places of spawning and wintering of valuable fish types; - water objects with integral link to forests, flora and fauna and other specially protected natural resources; - basins of underground water reserves.” The areas categorized above could be designated as sensitive areas, according to the described procedure on the same resolution. As known the EC Directive 97/271 /EC is applicable to all surface water bodies and the Caspian Sea under the territory of Azerbaijan. The question remains whether the surface water resources could be eutrophic and designated as sensitive areas in future. If the effluent contains partly removed Nitrogen and Phosphorus, they can be eutrophic and the area of effluent discharge can be designated as sensitive areas which will allow for the protection of the receiving water quality based on their utilization. Therefore removal of organic substances that are main reasons for 9

eutrophication is preferred through a settled agreement between the relevant government agencies. Based on this agreement the new design criteria is set for the removal of phosphorus and nitrogen by the modification of wastewater treatment plants of rayons. This modification is expected to contribute to keeping the water quality of the discharged water bodies.

Since some villages of Agsu and Kurdamir rayons are located at the downstream of outfall location of WWTP supplies drinking water from the Girdimanchay, in order to avoid Girdimanchay to be an eutrophic water resource in future the modification in WWTP is necessary for removal of nutrients. Thus the sensitive areas effluent standards of UWWTD will be achieved.

5. INSTITUTIONAL ANALYSIS

In Azerbaijan the following organizations are engaged in questions of water resources management:

· The Ministry of Ecology and Natural Resources; · Amelioration and Water Farm JSC · Azersu JSC · Ministry of Health with the Center on Epidemiology and Hygiene

The Ministry of Ecology and Natural Resources is responsible for safety and protection from pollution of water resources. The Ministry carries out the state account of water resources and supervises their quality by carrying out of stationary hydrometric, hydro-geological and hydro-chemical supervision, make water balances and forecasts of elements of a water regime, estimates reserves of ground waters, prosecutes with the questions of rational use and reproduction of water resources. The Ministry establishes and approves norms of maximum permissible limits of run-off waters and carry out their control by means of regional offices.

Amelioration and Water Management Open Stock Company is responsible for integrated use of water resources, studies requirements for water resources, develops plans and norms of water use, maintains irrigation systems, and together with various branches of economy, establishes a payment for water use and together with other departments and addresses issues of management of water resources of trans-boundary rivers.

Azersu Joint Stock Company. Absheron Joint-stock Water Society was engaged until July 11, 2004 with questions of water supply of the cities Baku and Sumgait. In July, 2004 services for water supply and run-off waters in other regions of the country were transferred to it (earlier the State Committee on Architecture and Construction was engaged in it) and Joint-stock company Azersu was established. The basic function of Azersu is operation and rehabilitation of systems of water supply and sanitation. Joint-stock company Azersu has established different tariffs for use of water by residents, by budgetary organizations and by industry. In order to ensure affordability, water tariffs for residents are established at lower rates than for other users. Collection of water use fees amounts to approximately 80% of the billed amounts. Water-meters are few. The collected revenues do not pay expenses. Ministry of Health with the Center on Epidemiology and Hygiene is responsible for drawing up of standards and realization of monitoring of drinking water quality. In the areas there are corresponding divisions of the ministry for realization of monitoring, quality assurance of waters, etc.

technical staffs responsible for sewerage systems has been employed by Local Birleshmish Su Kanal Authority. Proposals for Strengthening of Institutional Structure: The main proposal for the organization is to separate Agsu Su Kanal Department from the central organizations like AZERSU and Birleshmish Su Kanal in order to have an efficient and operational management structure. Existing organizational structure of the Agsu Su Kanal Department is proposed to be increased. Besides some small modifications within the organization structure have been proposed to be realized in order to improve the Agsu Su Kanal Department. As a must, the constructed wastewater treatment plant will require a few skilled staff, like plant director, engineer/chemist and a technician, and ordinary workers. The technician and workers for the wastewater treatment plant could be selected and trained from the existing staff of the Agsu Su Kanal Department. Besides that a part time Information Technologies Specialist (IT Specialist) is proposed to assist to the Agsu Su Kanal Department Head. IT specialist will assist to the installation and development of information technologies within the organization. After that the total number of Agsu Su Kanal Department will be increased forty two people. It is advised that main programs below should be constituted for drinking water and wastewater systems to be operated well in parallel with forming proposed organization structure:

- Description of task, responsibilities and properties of Local Birleshmis Su Kanal Authority’s staff, - Preparation and application of personnel training programs - Development of tariff concept, - Preparation of standards for pipe repair, pipe laying and service connections, - Preparation of leak detection plan, - Preparation of pipe maintenance and repair program, - Organization of spare parts management, - Monitoring the quality of drinking water and treated wastewater, - Control of meters, constitution of calibration and renovation program

Recognizing the differences in the new technology of the project network, a training is necessary for the staff. Relevant staff will be trained in the necessary aspects for effective operation of the water and sanitation service Operationally-essential equipment will be included in the project, to enable sustainable operation of assets and delivery of an effective service to customers. The training requirements and training modules are currently being developed in discussions between the World Bank and Ameloiration JSC and AZERSU. The new institutional structure of local SuKanal will also include EM oriented actions and relevant capacity and human resources.

6. EIA PROCESS

Eptisa (Spain) in association with Hydrometeorology Consulting Company (Azerbaijan) is contracted to prepare the Environmental Impact Assessment (EIA) of the proposed project to: (i) assess the environmental and social impacts of project, (ii) identify the mitigation measures both during construction and post development and (iii) prepare an environmental management and monitoring plan.. The issues covered by the EIA study are focusing on the most important impacts and especially to raise concerns of the impacted households . The EIA also identifies which of the project activities has a potential to interact with the environment in the specific context of the natural, regulatory (i.e. legal) and socio- economic environments in which these activities will occur. Scoping was conducted early in the EIA process so that a focus on the priority issues (i.e. those that have the greatest potential to affect the natural and/or socio-economic environment) could be established for the rest of the EIA process. Scoping also helped identify gaps in the environmental, socio-economic and engineering information that need to be addressed so that an informed impact assessment can be completed.

Different categories of issues, as identified below, were considered in the EIA. The potential beneficial and adverse effects in each category were identified based on literature review, onsite data collection and surveying, intensive investigations by individual experts through field surveys and site specific investigations. The following categories of impacts were considered:

1) Natural plants and their habitat impacts were investigated using available technical reports and through field survey. 2) Natural animal, birds and their habitat were investigated using available technical reports and through field survey. 3) Surface and groundwater data were obtained from available reports and were used to map surface and groundwater existence. Later these data were used to assess the hydrogeology and surface water catchments. 4)Agricultural impacts were investigated by looking at the agricultural values, gathering crop and soil types, and through field survey. 5) Air quality impacts were based on generalized regional level data combined with growth forecasts. In addition, acoustic impacts (noise and vibration) were investigated. 6) Socio-economic impacts (living and employment conditions) were investigated using available data and the data of the of State Statistical Committee. 7) Municipal services and utilities impacts (water supply, sewerage system, solid waste collection and disposal, electricity, telecommunication, etc.) were investigated using existing information and the Region Master Plan. Site visits enhanced these investigations. 8) Health and safety measures have been investigated and identified as being in accordance with the national requirements and international Safety Guidelines 9) Further impacts and assessments were investigated through field survey and site visits.

In this section, identified components and project-related issues associated with those components are integrated to identify the extent to which the project may impact environmental components and the significance of those impacts on national, community and local scales. For assessment of what level of significance to assign to an environmental component and or the potential impact of a project on an environmental component an objective methodology is required to permit assessment of the potential significance of environmental issues.

In the evaluation process a semi-quantitative analysis has been undertaken, to summarize “Valued environmental components” (VEC’s) according to whether they are “high”, “medium” or “low”. Valued environmental components that are valued as “high” are those that are broadly important across society. VEC’s that are ranked as “medium” are those that are important at a community level, but are of limited significance at a wider level. VEC’s that are ranked as “low” are significant at a localized level. All these issues have been taken into consideration during development of mitigation measures and Environment Management Plans

7. ALTERNATIVES

Following alternatives have been considered during the EIA process: -No Project Scenario -Water Supply System improvement only Water Supply and Waste Water Management System improvement

The situation in the Feasibility Study document is clearly described according to all the above sceneries. For each component of the project some alternatives also have been looked through. For the water supply of Agsu rayon center there are three alternatives. The first to supply from Guzay Springs and Agsuchay Srpings, the second alternative is to supply from the vicinity of Kulullu villages of Agsu rayon drainage facilities and the third from the Gursulu village of Agsu. Since the first alternative has been executed by the Agsu Rayon Executing Power it hasn’t been financially considered within the scope of this project. However the capacity and structures of this alternative have been taken into consideration during the determination of water demand projections for the year 2030. The second and third alternatives have 2 main reservoirs, one pressure release chamber in addition to the water reservoirs of the first alternative. In the second alternative, a pumping stations and 100 m3 balancing reservoir need to be constructed. In FS study it was preferred to supply water as described in the second alternative. However during the detailed design phase the

contribution of water supplied as defined in the first alternative is taken into account due to completed water supply transmission line from Guzay Springs. There are no main technical alternatives for reconstruction of water distribution network except the sub- alternatives like the type of pipe material. The sewerage collected at a location near to Muradli and Tecile villages presents one technical alternatives in order to transfer the collected wastewater into the treatment plant which is applied in detailed design phase The wastewater treatment plant option has been evaluated from the point of economy and operability of process alternatives. The extended aeration process with sludge drying beds is selected. by FS Consultant. However it has been changed to the single stage aeration processes with the sludge treatment performed by centrifugal decanters according to the settled agreement between two main stakeholders.

8. ENVIRONMENTAL MANAGEMENT PLAN

Measures for mitigating negative environmental impacts are directed at minimizing possible negative environmental and social-economic impacts during the construction and utilization phases of the project. These measures will be carried out by the construction company during the construction phase of the WSS project and by the local Water Canal Ccompany during utilization phase.

The Environmental Management Plan (EMP) outlines the management mechanisms (i.e. working arrangements) for how the environmental and social elements of the project should be managed from detailed design and construction through operation.

The EMP is aimed at reduction to minimum level of any potentially negative environmental impacts during construction and operation. It requires that all aspects of the works comply with the relevant legislation and norms., and that measures to mitigate impacts identified in the EIA are implemented, and that environmental monitoring and emergency measures are carried out during the construction works on the site. Within the EMP required environmental controls and monitoring procedures are considered during construction and after the work is completed. The Contractor is responsible for the implementation of these mitigation measures and emergency measures during construction.

There are several mechanisms of ensuring delivery during construction of both general and site specific mitigation developed through in the EIAs. One mechanism involves that the Contractor will further develop the outline requirements of the in an EMP by designing individual Management Plans, for, project activities that include such as oil and fuel storage, waste management, traffic management and pollution prevention. A tabulated summary of the environmental management is presented below. There is an initial environmental assessment for the Category A typed project in the prepared project Feasibility Study Document, where the “Rapid Environmental Assessment Checklist” was filled for both sewerage and water supply systems. This checklist summarizes the existing project area in Agsu and potential environmental impacts, which the project may cause. According to the checklist some issues of impact can take place in the project implementation. These issues then in the EIA process have been compared with the “Valued Environmental Components and Potential Negative Effects” (Chapter 5.1) and then relevant mitigation measures have been identified accordingly.

9. APPLICATION OF MITIGATION MEASURES

The potential main impacts and mitigation measures to reduce these impacts at the construction and operation stages are summarized in the following table. The table includes It is based on recommendations of the Feasibility Study document, together with additional measures that are considered necessary as a result of the EIA process. which was added with necessary additional measures in the EIA process and presented in below table

Table ES-1. Potential Main Environmental Impacts and Mitigation Measures

ECOLOGICAL ESTIMATED COST OF Responsibili Monitoring SOCIAL OR IMPACT MITIGATION ty POTENTIAL STAGES ENVIRONMEN IMPACT MITIGATION MEASURES MEASURES IMPACTS TAL COMPONENT Dust, gases/aerosol Dust prevention by watering and other Provision of water: $10,000 associated with means; Contractor Supervisor/ construction (toxic Transportation of grainy or dusty materials in No cost for other measures Amelioratio gasses discharged the top-coated trucks; provided they are integrated n JSC by construction Watering of dust sources; into normal operating machineries, wind Transportation of dust producing materials procedures blown construction during calm days (not in the windy days); materials etc.) Avoid making open fires; Air quality Avoid setting fire on residue grease, isolation materials, and other substances; Efficient use of machinery and other technologies; Application of adequate construction methodologies and facilities; Constructi Careful implementation of works in on stage vulnerable areas. Waste pollution, Protection of the surroundings of the Provision of materials and especially wastes construction site; cover to prevent landslide Contractor Supervisor/ caused by Limited works in the vulnerable zones; risks: $10,000 Amelioratio construction and Identify adequate areas to store residue n JSC domestic activities; materials, and transportation of all Traffic management signage: Material storage, construction related effluent materials into $5,000 civil works and the predetermined site; Earth other impacts; Control of erosion process; No cost for other measures Landfill of wastes Provide earth stabilization/green cover over provided they are integrated and other materials; vertical points and slopes to minimize land into normal operating Impacts of slide risks; procedures excavation works; Prevent discharge of excavated material to Possibility of the river beds or lakes; erosion; 14

ECOLOGICAL ESTIMATED COST OF Responsibili Monitoring SOCIAL OR IMPACT MITIGATION ty POTENTIAL STAGES ENVIRONMEN IMPACT MITIGATION MEASURES MEASURES IMPACTS TAL COMPONENT Wastewater. Avoid unwanted traffic blockage, collect excavated spoil material and discharge somewhere close to the construction site; Discharge wastewater flows to the closest sewage line, installation of toilets and septic tanks. Damage to the Adequate design works and selection of Proper storage of toxic topsoil resulting proper route to minimize impact on the materials/effluents: $12,500 Contractor Supervisor/ from material topsoil; Amelioratio storage, excavation Usage of excavated soil material for the Measures against landslides n JSC works, temporary agriculture purposes; addressed above roads etc. Cut, store and restore topsoil where possible Loss of topsoil after the completion of the construction No cost for other measures during excavation; works; provided they are integrated Flushing of topsoil Discharge of materials to the predetermined into normal operating and soil erosion due areas by secondary routs; procedures. Topsoil to polluted water Measures against land slides streams; Storage of toxic materials and effluents in the safe and predetermined areas, its provision with drainage waters, and processing where necessary; Standards applied, including soil erosion prevention by good soil practice and drainage control. Good soil conservation measures and effective reins to prevent future erosion and soil loss.

ECOLOGICAL ESTIMATED COST OF Responsibili Monitoring SOCIAL OR IMPACT MITIGATION ty POTENTIAL STAGES ENVIRONMEN IMPACT MITIGATION MEASURES MEASURES IMPACTS TAL COMPONENT Pollution of surface No cost for identified and groundwater Avoid discharge of harmful chemical measures provided they are Contractor Supervisor/ sources due to substances into sewage lines or ground integrated into normal Amelioratio domestic and surface; operating procedures n JSC construction Design and operation of natural drainage and effluents, including consideration for alternative directions; harmful residues, Discharge wastewater flows to the closest leakage of fuel and sewage line, installation of toilets and septic other oil related tanks. products; Required standards applied, including safe Blockage of surface removal of wastewater during renovation and groundwater works, use of appropriate equipment by Water filtration and workers and ongoing liaison with residents resources and creation of stagnant and fencing off contaminated areas. waste waters water accumulations. Water scarcity problems in low flow periods of the year are in low flow periods of the year connected with project and increase of water supply problem for other users which use the same sources Disturbance due to Use of adequate construction materials and No cost for identified Constructi noise generated equipment; measures provided they are Contractor Supervisor/ Noise on stage from construction Adherence to predetermined work schedule integrated into normal Amelioratio to minimize disturbance and implementation operating procedures n JSC

ECOLOGICAL ESTIMATED COST OF Responsibili Monitoring SOCIAL OR IMPACT MITIGATION ty POTENTIAL STAGES ENVIRONMEN IMPACT MITIGATION MEASURES MEASURES IMPACTS TAL COMPONENT works and intensive of noise generating works during normal traffic work hours; Minimum use of noise generating equipment (example, stone cutters, compressors); Minimize traffic during dark hours, and use of silencers.

Disturbance of the Adequate storage, processing or liquidation No cost for identified natural habitat due of wastes; measures provided they are Contractor Supervisor/ to construction Application of relevant construction and integrated into normal Amelioratio related noise, dust, seasonal work methodologies; operating procedures n JSC non-seasonal works, Protection of vulnerable areas located close Natural habitat unprocessed to the construction site. residues and etc. Loss of natural settlement areas due to construction works. Earthworks, Adequate storage, processing or liquidation Storage, processing, operation of of wastes; liquidation of wastes Contractor Supervisor/ machines, noise and Protection of vulnerable areas located close addressed above Amelioratio etc.; to the construction site; n JSC Losses or Application of seasonal work methodologies No cost for other measures degradations during where necessary. provided they are integrated Flora and and after into normal operating fauna construction works, procedures. non-seasonal works, change of ecological situation etc.

ECOLOGICAL ESTIMATED COST OF Responsibili Monitoring SOCIAL OR IMPACT MITIGATION ty POTENTIAL STAGES ENVIRONMEN IMPACT MITIGATION MEASURES MEASURES IMPACTS TAL COMPONENT Impact of works on Careful design and location of works; Restoration/planting of landscape and Restoration of damaged trees, protection lines greenery: $50,000 Contractor Supervisor/ disturbance to and etc.; Amelioratio natural sights, Planting of greenery in the construction site, No cost for remaining n JSC Aesthetics and greenness and trees; careful implementation of works in the work measures provided they are landscape Noise, dust, residue sites, and management of wastes. integrated into normal and etc. during and operating procedures. after construction.

Damage to Liaise effectively with relevant organizations agricultural lands, and residents before start of construction, No cost for identified Contractor Supervisor/ Agriculture including drainage maintain dialogue, develop a grievance measures provided they are Amelioratio and irrigation procedure, strictly control machinery and integrated into normal n JSC infrastructure. vehicle access and reinstate all affected areas operating procedures. Livestock resources Liaise effectively with farmers and residents Constructi damaged by before start of construction, maintain No cost for identified Contractor Supervisor/ on stage Livestock machinery and dialogue, develop a grievance procedure, measures provided they are Amelioratio vehicles. strictly control machinery and vehicle access integrated into normal n JSC and reinstate all affected areas operating procedures. Health risks from Planning of measures dealing with security Trainings: $25,000 unprocessed wastes; and environmental protection issues; Contractor Supervisor/ Use of harmful Adherence to project standards, good No cost for identified Amelioratio substances (paints signage, ongoing consultation with residents, measures provided they are n JSC Health and with heavy metal, including schools. All workers to use integrated into normal safety of lead compositions), appropriate PPE and be trained at project operating procedures. residents and asbestos- cement induction. Safety fencing provided. workers slabs, inflammable Organization and implementation of security and toxic materials and safety related trainings; Construction of warehouse etc.). Management of materials in accordance with for temporal storage of the relevant ecological and sanitary-hygiene hazardous wastes: $50,000 norms;

Damage to areas of There are no areas of historic/cultural value No cost for identified historical and to be affected by project. But if it appears measures provided they are Contractor Supervisor/ Areas of cultural value relevant measures need to be taken integrated into normal Amelioratio historical and located in the Staff awareness; operating procedures n JSC cultural value project area Inform adequate organizations in case of archeological findings; Temporary termination of works.

Loss of property, There no need for resettlement. Costs for resettlement (if land and damage to For areas where lands used for agricultural any) to be negotiated by Contractor Supervisor/ Resettlement living areas of crop production relevant plans need to be project owner in accordance Amelioratio Land population prepared, which includes provision of with relevant legislation, n JSC acquisition replacement lands or compensation for lost contractual agreement or access to plots of arable land and lost fruit or other documents. nut trees. Quality of treated Operation supervision of treatment facilities No cost for identified water in due accordance with the operation measures provided they are Contractor Supervisor/ Operation More people will guidelines; integrated into normal Amelioratio s stage Risks to human get benefit from the Quality control of water flows entering the operating procedures n JSC (potable health and hygienic living system; water environment standards due to Avoid pollution of treated waters with the systems) extension of service wastewater flows; area Avoid over-chlorination of water flows supplied to the consumers.

ECOLOGICAL ESTIMATED COST OF Responsibili Monitoring SOCIAL OR IMPACT MITIGATION ty POTENTIAL STAGES ENVIRONMEN IMPACT MITIGATION MEASURES MEASURES IMPACTS TAL COMPONENT Breakages and There is need to develop scheduled Training cost identified emergency preventative maintenance below Contractor Supervisor/ situations Training of staff on safety and human No cost for remaining Amelioratio security issues; measures provided they are n JSC Measures to avoid leakage of chlorine gas. integrated into normal operating procedures Reduction of treated Prevent illegal connections to the system; No cost for remaining water quantities Proper operation of the system including measures provided they are Contractor Supervisor/ Social- water treatment, pipelines, connection lines integrated into normal Amelioratio economical and etc. operating procedure n JSC Ensure an affordable tariff structure and proper collection of fees. Quality of Constant monitoring of wastewater flows Monitoring of downstream wastewater and its coming out of the wastewater treatment plant; environmental quality: Contractor Supervisor/ impacts on human Discharge of wastewater into the $12,500 one time every 2 Amelioratio health and environment only after adequate treatment; years for 20 years n JSC environment Training of operation staff for their Additional nitrogen qualification raising; No cost for remaining

and phosphorous Monitoring of downstream habitats to measures provided they are

removal proses will: evaluate the extent to which they return to integrated into normal Operation contribute to their previously unpolluted state. operating procedures s stage Risks to human keeping and (sewage health and improving existing and environmental water quality. wastewate impacts Increase in r) dissolved oxygen (DO) level will contribute to the aquatic life. Eutrophication which usually

ECOLOGICAL ESTIMATED COST OF Responsibili Monitoring SOCIAL OR IMPACT MITIGATION ty POTENTIAL STAGES ENVIRONMEN IMPACT MITIGATION MEASURES MEASURES IMPACTS TAL COMPONENT manifests itself as an increase in phyto-plankton concentrations to nuisance levels will be avoided by decreased nutrients such as nitrogen and phosphorus. Provide increase the income level of tourism, fishing. The execution of new design criteria for removal of nutrients will have additional benefits for the quality of water resources. The aquatic environment will be affected in positive manner due to increase in water quality due to removal of nutrients in wastewater. Instead of chlorination the implementation of UV disinfection will have positive effects 21

ECOLOGICAL ESTIMATED COST OF Responsibili Monitoring SOCIAL OR IMPACT MITIGATION ty POTENTIAL STAGES ENVIRONMEN IMPACT MITIGATION MEASURES MEASURES IMPACTS TAL COMPONENT on natural environment. Hence There will be no effects on fishes and algal organisms.

Quality of Adequate processing of sludge; Monitoring of sludge quality: sediments in the Monitoring of nematodes, coliforms and $10,000/year Contractor Supervisor/ treatment structures heavy metals in the composition of output Transportation of sludge Amelioratio (sludge), risks due sludge; $10,000/year n JSC to agricultural Transportation of sludge in the closed consumption of containers; Training cost identified these wastes. Training of operation staff for their below Decrease in use of qualification raising. area for sludge Training In application of sludge, and drying will lessen monitoring of sludge application demand to the land use. The envisaged process type of sludge production has increased the possibility of use of sludge in agricultural areas. Smell generations in Planning and management of smell Odour masking agents: $US the wastewater mitigation; 5,000/year Contractor Supervisor/ treatment structure; Tight shutting of smell producing equipment Amelioratio and containers. No cost for remaining n JSC measures provided they are

ECOLOGICAL ESTIMATED COST OF Responsibili Monitoring SOCIAL OR IMPACT MITIGATION ty POTENTIAL STAGES ENVIRONMEN IMPACT MITIGATION MEASURES MEASURES IMPACTS TAL COMPONENT integrated into normal operating procedures Risks to human Use of authorized sites for non-hazardous Training: $25,000 in first health waste disposal; support and arrangements for year; $5,000/year in each Contractor Supervisor/ Safe storage of setting facilities for hazardous waste safe following year Amelioratio hazardous and storage n JSC non-hazardous No cost for identified wastes measures provided they are integrated into normal operating procedures Risks to health of Training of staff on safety and human residents and security issues; Contractor Supervisor/ workers and to the Training of staff on sanitary and hygiene Amelioratio environment rules to prevent infections from wastewater n JSC discharges and sludge residues; Human health Provide staff with adequate protection uniforms and facilities; Measures to prevent emergency situations such as leakage of chlorine gas. Monitoring of drinking water and wastewater quality Note: All mitigation measures identified in this Table should be specified in all contracts for construction and operation of the project, and should also be including in all manuals or operating procedures that are developed.

In total an estimated around 200000 USD needs to be allocated to implement main mitigation measures. .

10. MONITORING Conducting monitoring is the major strategic tool in environmental management and the extent of project monitoring will be dependent on the nature, scale and potential impact of the project activities. Monitoring may require the services of environmental specialists or a company with laboratory and analytical facilities (for complex environmental problems) or inspection by the local government environmental officers.

The main elements of the environmental monitoring plan are the following:

In the construction phase: · Dust monitoring; · Noise monitoring; · Solid wastes monitoring; · Waste waters monitoring; · Soil monitoring.

In the operational 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 treatment purification; · Monitoring of depositions settled in water cleaning plants; · Monitoring of cleaned treated sewage in the place where it joins to sewage collector; · Monitoring of soil where depositions generated in water cleaning plants will be used as fertilizers. · Monitoring of all activities during construction period will be under the responsibility of the Contractor, performance of which will be controlled by the Amelioration JSC or supervisor appointed by JSC. The Contractor will prepare an Environmental Management Plan (EMP) that addresses all aspects of the EMP identifies above, and will establish a team for the monitoring activities. The Contractor will be responsible for the compliance of the constructions with the national norms and standards. Monitoring of construction activities will have to ensure that mitigation measures of construction impacts are being implemented properly. Contractor’s Environmental Team will be subject to the government inspections from time to time. An individual auditing company may also inspect the Contractor on a long-term basis, such as every 3 months or 6 months.

Monitoring responsibility of operation activities will be under the operator for the WWTP and under the local authorities for the network systems. Performance of monitoring activities will be controlled by the Amelioration JSC or supervisor appointed by JSC. Necessary and planned measurements should be realized in WWTP in order to certify of fulfillment to discharge criteria. Again WWTP operator will be subject to the government inspections from time to time. Regular reports on implementation of monitoring plan will be submitted to Contractor .

A training and equipment package is included in the project. As key agency responsible for implementation for SNWSSP the Amelioration and Water Farm JSC will need to have adequate capacity for control of realization of EMP. Although the Department on Control of Protection and Use of Water Resources have been trained by ADP Flood mitigation project and other programs, there is still need for required knowledge on Environment Management issues during the construction and operation.

In order to increase capacity of Environmental specialist at PIU and also for local SuKanal relevant training is planned to be organized within the project. Staff will be trained in Environmental management during the construction and also in operation phase, in the necessary aspects for effective operation of the water and sanitation service to minimize impact to the environment. The training requirements and training modules are currently being developed in discussions between the World Bank and Ameloiration JSC and AZERSU.

Amelioration JSC PİU will also need to have relevant trained staff to supervise the construction process and monitor implementation of EMP.

1.0 INTRODUCTION

Eptisa (Spain) in association with Hydrometeorology Consulting Company (Azerbaijan) was contracted to prepare the Environmental Impact Assessment (EIA) of the proposed project to assess the environmental and social impacts of project and to identify the mitigation measures both during construction and post development. This EIA study provides recommendations on mitigation measures and proposes an environmental management and monitoring plan.

1.1 Context of the EIA This report presents an Environmental Impact Assessment (EIA) of the project in Agsu The EIA identifies potential impacts on the natural environment and the social situation iin Agsu rayon during construction and operation of the project. Where potential adverse effects are predicted, mitigation has been developed and its implementation is presented in an Environmental Management Plan (EMP) and Environmental Monitoring Plan (EMP).

This project has been identified as a Category A project in the World Bank classification for EIA (OP/BP4.01). This requires an EIA report and an Environmental Management Plan. Moreover, public consultations are required to discuss the project and the proposed environmental management plan.

A detailed description of the project is presented below in section 3

There are following definitions used in this report:

§ Definition of environmental aspects:The International Standard Organisation’s standard for Environmental Management Systems(EMS), ISO 14001 defines an environmental aspect as:“An element of a...... , product or service that can interact with the environment.” § Definition of impacts:ISO 14001 defines an environmental impact as:“Any change to the environment, whether adverse or beneficial, wholly or partially resulting from an organisation’s activities, products or services.” This definition will be used in the identification of the proposed project’s environmental impacts. An environmental or socio-economic impact may result from any of the identified project aspects; that is, activity-receptor interaction. The potential for an environmental or socio-economic impact exists where an environmental or socio-economic aspect has been identified; that is, where a project activity has been determined to have the potential to interact with the biophysical environment or with the socio-economic content of the community.. Impacts can be either negative or positive. The primary objectives of the impact assessment are to: establish the significance of identified potential impacts that may occur as a result of a project activity being undertaken, and differentiate between those impacts that are insignificant (i.e. can be sustained by natural systems) and those that are significant (i.e. cannot be sustained by natural systems). Significant potential impacts would require alternative and/or additional mitigation measures above and beyond those already incorporated in the base design for the project/activity.

Scoping was conducted early in the EIA process so that a focus on the priority issues (i.e. those that have the greatest potential to affect the natural and/or socio-economic environment) can be established for the rest of the EIA process. Scoping also helped identify gaps in the environmental, socio-economic and engineering information that need to be addressed so that an informed impact assessment can be completed.

The potential beneficial and adverse effects were identified based on literature review, onsite data collection and surveying, intensive investigations by individual experts through field surveys and site specific investigations.

The following categories of impacts were considered in the EIA:

1. Natural Plant and their habitat impacts were investigated using available technical reports and through field survey. 2. Natural Animal, birds and their habitat were investigated using available technical reports and through field survey. 3. Surface and groundwater data were obtained from available reports and were used to map surface and groundwater existence. Later these data were used to assess the hydrogeology and surface water catchments. 4. 4)Agricultural impacts were investigated by looking at the agricultural values, gathering crop and soil types, and through field survey. 5. Air quality impacts were based on generalized regional level data combined with growth forecasts. In addition, acoustic impacts (noise and vibration) were investigated. 6. Socio-economic impacts (living and employment conditions) were investigated using available data and the data of the of State Statistical Committee. 7. Municipal services and utilities impacts (water supply, sewerage system, solid waste collection and disposal, electricity, telecommunication, etc.) were investigated using existing information and the Region Master Plan. Site visits enhanced these investigations. 8. Health and safety measures have been investigated and identified as being in accordance with the national requirements and international Safety Guidelines 9. Further impacts and assessments were investigated through field survey and site visits.

1.2. Purpose of the EIA

In accordance with the Environmental Assessment requirements of the World Bank and the Environmental legislation of the Azerbaijan Republic, an EIA process is required in support of the proposed project. The objectives and rationale of the assignment are, in general, clearly stated in the Terms of Reference (ToR).

The aim of the Environmental Impact Assessment (EIA) is to ensure that any adverse environmental or socio-economic impacts arising from proposed project activities in each individual rayon are identified and where possible eliminated or minimized through early recognition of and response to the issues.

The purpose of the assignment is to help the Client to:

· Ensure that environmental considerations are integrated into the project planning and design activities · Ensure that a high standard of environmental performance is planned and achieved for the project · Ensure that environmental and socio-economic aspects and impacts are identified, quantified where appropriate, and assessed and mitigation measures proposed · Ensure that legal and policy requirements and expectations are addressed · Consult with all of the project stakeholders and address their concerns; and · Demonstrate that the project will be implemented with due regard to environmental and social considerations in mind

The purpose of this EIA study is to identify the direct and indirect impacts that the development of WSS will have on the natural resources, ecosystem, and the socioeconomic dimensions of the communities and populations. Accordingly, mitigation measures will be proposed and an environmental management and monitoring plan will be prepared to address the identified impacts and the corresponding mitigation measures. The EIA document is intended to provide the decision makers and international donors with an understanding of the impacts of developing WSS, in order for them to make an informed decision. The assessment includes suggested efforts to avoid or minimize the adverse effects and methods to enhance the positive effects. The objectives of the EIA study are as follows: 1. Investigate and record the existing social, economic, and environmental conditions that correspond to the proposed project area prior to the development. 27

2. Describe the different construction aspects of the proposed project including the water distribution system, storm water drainage, wastewater collection and treatment etc 3. Define and assess the potential beneficial and adverse impacts resulting from the project. 4. Propose mitigation measures in order to minimize the adverse effects and enhance the beneficial effects. 5. Prepare an Environmental Management and Monitoring Plan (EMMP) for the project.

In order to assess the environmental impacts of the Agsu Rayon Water Supply and Sanitation (WSS) project a scoping report has been prepared as a basis for full Environmental Impact Assessment (EIA) report to be developed afterwards. The document first describes generally the existing situation in WSS and then it continues with proposed assumptions on possible potential positive and negative environmental impacts caused by the project activities and related mitigation measures in order to decrease or eliminate the negative environmental impacts during construction and operation phases. Alternatives identified within the FS are analyzed as appropriate. Finally, this document summarizes the environmental concerns that were addressed by the different stakeholders and affected groups, and which were raised during the public consultations that have been undertaken since the beginning of the EIA in June 2010.

The Scoping Report also serves as the basis for prioritizing issues for the Environmental Impact Assessment of the proposed project.

1.3. Methodology

In the course of the assignment potential impacts of all stages of the project from pre-construction, through construction and installation to operation in each rayon are evaluated against applicable environmental standards, regulations and guidelines, the existing environmental conditions, and issues and concerns raised by all project stakeholders. Evaluation of the implementation and effectiveness, of existing and planned environmental controls and monitoring and mitigation are considered.

The EIA process constitutes a systematic approach to the evaluation of a project in the specific context of the natural, regulatory and socioeconomic environments of the project area in which development is proposed. The assessment process incorporates the following key stages:

Detailed data gathering and review

Following Scoping, assembled legislative requirements, engineering, environmental and socio- economic data will behave been assessed in greater detail to ensure that all of the proposed project activities and their consequences were considered in full. At this stage the project team will look into the following as required by the Terms of Reference:

§ Existing (baseline) environmental conditions: In order to identify any potential impact on and potential change to the natural and socioeconomic environments, it is essential to have a thorough understanding of the nature of those existing environments prior to commencement of the proposed activities. This translates as a need to characterize the existing baseline environmental and socio-economic conditions including establishing the prevailing conditions for a range of media as follows: natural environment media such as air, water, soil and groundwater, flora and fauna; and socio-economic media such as demographics and economic activities. Definition of the baseline environmental conditions will be achieved through a detailed review of all available data sources (i.e. existing documentation and literature) including surveys of flora and fauna, soil and surface and water and groundwater, a survey of the cultural heritage in the area and socio-economic baseline data.

§ Analysis of alternatives: The purpose of this is to identify, at a conceptual level, viable alternatives to the project so that a viable base-case design may be realized. Consideration of project alternatives occurs at two levels as follows: (i) to the project as a whole including the “no development” option; and (ii) engineering alternatives within the selected project’s design definition. Once project alternatives are defined, they will be generally assessed and compared on financial, technical, and environmental/socio-economic criteria. The project alternative that is determined to be likely to result in the best balance in regards these criteria is typically, the one that moves forward into the detailed design phase.

§ Detailed legislative review:The review of relevant national and international standards and requirements will ensure that the project activities has been assessed against all relevant existing environmental regulations and guidelines as well as other relevant policies and standards.

Consultations

Project stakeholder consultation is a vital component of the EIA process. The consultation process is focused on, seeking comment on key issues and concerns, sourcing accurate information, identifying potential impacts and offering the opportunity for alternatives or objections to be raised by the potentially affected parties; non-governmental organizations, members of the public and other stakeholders. Consultation helps to develop a sense of stakeholder ownership of the project and the realization that their concerns are taken seriously, that the issues they raise, if relevant, will be addressed in the EIA process. Consultation with all project stakeholders in 4 rayons started during the Scoping stage and continued throughout the EIA process. All relevant stakeholders have been identified using the most recent and accurate information available and the consultation results including: o - a list of stakeholders consulted in each rayon; and o - a summary of the issues and concerns raised.

Environmental and social aspects

From the environmental and social point of view the above definition of the environment and potential project impact is used in the identification of the proposed project’s environmental,legal and socio- economic aspects. These can be illustrated as follows:

§ Identification of environmental and socio-economic aspects:To identify project environmental aspects, all proposed activities will be considered in terms of their potential to: interact with the natural environment including its physical and biological elements; breach the relevant international, national, industry and operator and partner standards and operator/partner policy; interact with the existing socio-economic environment. In addition to the above, all concerns and issues raised by members of the community and/or project stakeholders in all 4 rayons will be considered as environmental or socio-economic aspects.

§ Determining impact significance:Following the identification of all project environmental and socio-economic aspects and potential impacts, the level of impact that may result from each of the activity-receptor interactions will be assessed. In assessing the level of impact that an activity may cause, two key elements will be considered: Consequence - the resultant effect (positive or negative) of an activity’s interaction with the legal, natural and/or socio-economic environments; and Likelihood - the likelihood that an activity will occur. The level of consequence for each identified impact will be determined by examining a number of factors relating to the activity including: level of non-compliance with legislation, policy and/or

adopted project standards; community and stakeholder perception of the activity; and the ability of the natural environment to absorb the impact based on its natural dynamics and resilience. It should be noted that it is often difficult to compare environmental impacts consistently across different natural and socio-economic environments. In evaluating the environmental and socio-economic aspects, emphasis is placed on specific cause and effect relationships. Scientific evidence as well as predictions based on observation of previous similar activities can and will be used in the impact assessment process. Where it will not be possible to fully quantify the effect that an activity may have on the environment or a component of the environment, or where there is a lack of scientific knowledge, qualitative judgment can and will used. Such judgments will be based on a full understanding of the proposed development, the impact assessment team’s extensive experience in and its knowledge of the environment in which the project’s activities will occur.

Mitigation and monitoring

§ Mitigation: Mitigation measures will be taken into consideration and defined during the impact assessment process. Impacts that are identified as having a significance ranking of “high” or “critical” will be analyzed in more detail to identify additional mitigation measures that are potentially available to eliminate or reduce the predicted level of impact. Potential mitigation measures that will be considered include: social and economic investment programmes; engineering design solutions; alternative approaches and methods to achieving an activity’s objective; operational control procedures, and management systems. The results of the mitigation analysis and the mitigation measures included in Mitigation Plan of the Environmental Management Plan

§ Monitoring: It will be necessary to monitor and audit the implementation of the project development and operation. Monitoring will provide the information necessary for feedback into the environmental management process and will assist in identifying where additional mitigation effort or where alteration to the adopted management approach may be required. The monitoring plan will be included in Monitoring Plan of the Environmental Management Plan

2.0 POLICY, LEGAL AND ADMINISTRATIVE FRAMEWORK

2.1 Policy Framework

EIA in Azerbaijan

During its years of independence, Azerbaijan has steadily improved its system of environmental protection. The policy, legal and institutional framework that it inherited from the former Soviet Union was not designed to operate within a market economy, and insufficient attention had been given to issues of efficiency and environmental protection.

Much progress has now been made, particularly in updating the environmental legal framework, although further improvements are still needed, including in environmental impact assessment. The Ministry of Ecology and Natural Resources was established in 2000 and other institutional reform is being undertaken. The ecological strategy of the country is aimed at preservation of natural resources at national, regional and international spheres; application of scientifically substantiated development principles; and sustainable use of economic and human resources of the country that would meet interests of existing and future generations through enhanced coordination of activities in the area of protection of the environment. As a manifestation of environmental policies in the Republic of Azerbaijan, it should be noted that it is oriented to the development of a relevant legislative basis in accordance with European standards, improvement of state environmental management system, and gradual realization of priority projects through broadened ties with international organizations.

In Azerbaijan, EIA is applied under the State ecological expertise (SEE) procedure. In the EIA process the main objects are projects of state importance which cover the various spheres of industry and agriculture. In 1996 the Government of Azerbaijan adopted the procedure of EIA process, which complies with systems used in most countries. The new rules are described in Regulations on carrying out of Environment Impact Assessment in Azerbaijan Republic (UNDP / State Ecology Committee, 1996). These Regulations states, that “Activities on assessment of impacts of wastes to environment should begin in the stage of planning of the project”. The process of Environmental Impacts Assessment is one of means regulating protection of environment, efficient use if nature and effectiveness of economic development.

This existing normative, legal basis of the Azerbaijan Republic broadly uses the notion of EIA The main aim of the EIA process is: Recovery of natural systems violated due to previous economic activity; prevention of degradation of environment; ecological – economical balancing of future economic development; creation of favorable living conditions for peoples; decrease of level of ecological hazard of envisaged activity. This document was made up before decisions on fulfillment of any of projects.

The EIA document is a document which determines the character of all potential forms and level of danger of impacts to the environment caused by an economic or other activity that is proposed to be carried out. The EIA is document evaluates results of fulfillment of the project from ecological, social and economic view of point. State Expertise Board of Ministry of Ecology and Natural Resources is authorized state organ for EIA process.

For concrete projects the EIA process begins from planning and feasibility study and its realization. The Applicant (the project proponent, nature user) is responsible for content and final version of EIA document submitted to Ministry of Ecology. The Applicant bear the responsibility for fulfillment of conditions shown in the given permission and also for carrying out of monitoring of the project. There are 2 steps:

First: The originator (applicant) of the activity submits application to Ministry of Ecology and informs about major project decisions and possible results of negative Impacts to Environment. Ministry of Ecology after consideration of the Application informs the Applicant about necessity of carrying out of EIA and scale of this activity. In rare cases, after consideration of application, the permission for carrying out of work may be given immediately (Article 2.5). Second: The documents (on EIA) prepared by the Applicant are considered by the Group of Experts and Summary is made. The summary also includes proposals and critics of community. On the basis of the summary, the Ministry of Ecology may give permission for work or refuse to permit to activity, explaining reasons for rejection. The Ministry of Ecology determines 3 months maximal period for consideration of EIA documents. Enforcement and compliance are the responsibility of the general inspection system. EIA process is described in below figure(See figure 2.1).

The Republic of Azerbaijan pursuing a policy of integration to the World Community and in recent years has signed and ratified scores of International and bilateral conventions, treaties and agreements, including 15 Conventions related to environment. Each law of Republic of Azerbaijan includes a special chapter or article stating that if International Agreements provide rules which differ from existing relevant rules of Azerbaijan Legislation, the rules of international documents should prevail.

The World Bank Safeguards 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). The EA that is required by the Bank is in effect the same document as the EIA that is required under Azerbaijan legislation.

EA evaluates the potential ecological risks of a project and its impact to the territories covered by the project; analyzes alternatives of the project; determines ways for development of choice, location, planning, design and execution of the project, by taking measures on mitigation, compensation and bringing to minimum of harmful ecological impacts and strengthening its positive impacts to the environment. The Bank prefers preventive measures, if any, to mitigation or compensation measures.

The EA takes into account the environment (air, water and land); humans health and safety; social aspects (obligatory resettlement, residents and cultural heritage property); and trans - boundary and global environmental aspects. At the same time it takes into account all changes taking place in the project and country; results of ecological studies held in the country, plans of local ecological measures; common political framework of the country, local legislation and institutional possibilities on ecological and social aspects; obligations of the country on international Agreements and Treaties concerning the projects activities.

The Bank doesn't fund the project activities which are contrary to such country's obligations as it would be determined during the EA. * Key considerations to be taken into account during the EA process include:

· * Generic initial screening to determine appropriate environmental assessment; · * Compliance with existing environmental regulations in Azerbaijan; · * Linkages with socio-economic assessment, or inclusion of socio-economic assessment within the scope of the EA; · * Analysis of alternatives; · * Public participation and consultation with affected people and organizations; and · * Disclosure of information.

The Bank undertakes environmental screening of each proposed project to determine the appropriate extent and type of EIA. The Bank classifies the proposed project into one of four categories, depending on the type, location, sensitivity and scale of the project and the nature and magnitude of its potential environmental impacts. The four Categories are A, B, C, and Fl.

Whilst the objectives of the project include provision of a safe, reliable, potable water supply and vastly improved treatment of wastewater, the extent and nature of the works required result in it being classified as Category A, for which an EIA and EMP are required. This category of project may 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.

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2.2 Legal Framework Environmental protection in Azerbaijan is governed by the Law on Environment Protection(1999). The Law establishes the main environmental protection principles, and the rights and obligations of the State, public associations and citizens regarding environmental protection. It establishes the requirements for the preparation of environmental impact assessments, environmental quality standards, and requirements for permitting the activities that affect the environment, prevention and reduction of environmental pollution, environmental monitoring and control, the role of the public and sanctions imposed on law violators.

Other laws governing specific issues such as sanitary-epidemiological welfare, land reform, energy, health, water, forests, cadastre and land use, industrial and domestic wastes,ecological safety, water supply and wastewater, atmospheric protection and specially protected areas have been adopted since 1992.

The questions issues related with to protection of environment and regulation of use of nature are regulated through the with following Laws of relevant legislation of Azerbaijan Republic: Water Code (1997), Land Code (1999), Forest Code (1997), On Entrails (1998), On Protection of Flora (1996), On Fauna (1999), On Obligatory Insurance (2002), On radioactive Wastes (1994), On Industrial and Household wastes (1998), On Radioactive safety of population (1997), On Sanitary - Epidemiological Safety (1992), On Melioration and Irrigation (1996), On Water Supply and Waste Water(1999), On Safety of Hydrotechnical Plants (2002), On State land cadastre, monitoring of lands and structure of earth (1998), On Pesticides and agrochemical substances (1997), On protection of the Soil fertility (1999), On specially protected nature areas and objects (2000).

In addition, a large number (some 75+) of Decisions of the Cabinet of Ministers have been issued to help interpret the body of environmental legislation and related Presidential Degrees and Orders.

Republican criminal legislation and legislation on administrative faults includes some measures directed to protection of environment and efficient use of nature. The relevant legislation in force includes some laws regulating activity of natural persons and legal entities in the various spheres of use of natural resources (underground resources, water ad land resources, forests, fishes, etc.).

The International Agreements and Conventions signed by Azerbaijan are an inseparable part of the legislation system of the country.

Principles of rational water use, its state registration, settlement of water disputes and responsibility for violation of water legislation are described in the following below legal documents:

· -Laws of Azerbaijan Republic on Water Supply and Wastewater (Decree of President of Azerbaijan Republic dated January 26, 2000);

· Water Code of Azerbaijan Republic (Decree of President of Azerbaijan Republic dated December 26, 1997);

· RESOLUTION No 206 on approval of some rules regarding water legislation of Azerbaijan Republic (Cabinet of Ministers, October 15, 1998);

· RESOLUTION No 195 on approval of Rules on implementation of state control over consumption and preservation of water objects (Cabinet of Ministers, September 25, 1998); · RESOLUTION No 197 on approval of Rules on identification of construction sites of enterprises, structures, and other objects to be constructed, agreement of its work drawings, its state expertise and commissioning. (Cabinet of Ministers, September 28, 1998);

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· Resolution No 7 on approval of state water registration rules, (Cabinet of Ministers, January 17, 2000).;

2.3 Administrative Framework

In Azerbaijan the following organizations are engaged in questions of water resources management:

· The Ministry of Ecology and Natural Resources; · Amelioration and Water Farm JSC · Ministry of Health with the Center on Epidemiology and Hygiene · Azersu JSC

The Ministry of Ecology and Natural Resources is responsible for safety and protection from pollution of water resources. The Ministry Ccarries out the state account of water resources and supervises their quality by carrying out of stationary hydrometric, hydro-geological and hydro-chemical supervision, make water balances and forecasts of elements of a water regime, estimates reserves of ground waters, prosecutes with the questions of rational use and reproduction of water resources. Establishes and approves norms of maximum permissible limits of run-off waters and carry out their control by means of regional offices.

The Expertise Department of the Ministry conducts State ecological examination of new projects on water distribution, water use, new structures, other works executed in this area and gives its opinion on realization or non realization of projects and works. Department of Environmental Policy and Environmental Protection defines the basic directions of a policy on maintenance of safety and protection of water resources from pollution.

Department of Environmental Protection coordinates activity on monitoring and implementing of nature protection statutory acts, on conditions of water resources checks a level of conformity of influence of planned activity to working statutory acts and applies sanctions.

The Ministry of Ecology and Natural Resources is the responsible authority for state of environment It determines whether a project requires no EIA at all or a full EIA or anything in between. The regional departments of the Ministry of Ecology and Natural Resources receive applications and ensure that adequate information has been provided.

Amelioration and Water Farm Joint Stock Company is responsible for complex use of water resources, studies requirements for water resources, develops plans and norms of water use, maintains irrigating systems, together between various branches of economy, establishes a payment for water use and together with other departments and the organizations are busy with the questions on management of water resources of trans-boundary rivers.

Ministry of Health with the Center on Epidemiology and Hygiene is responsible for drawing up of standards and realization of monitoring of drinking water quality. In the areas there are corresponding divisions of the ministry for realization of monitoring, quality assurance of waters, etc.

Azersu Joint Stock Company. Till July 11, 2004 with questions of water supply of the cities Baku and Sumgait wasengaged Absheron Joint-stock Water Society. In July, 2004 service on water supply and run- off waters of other regions of the country was also transferred to it (earlier the State Committee on Architecture and Construction was engaged in it) and Joint-stock company Azersu was established. The Basic function of Azersu is operation and rehabilitation of systems of water supply and sanitation.

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Joint-stock company Azersu has established different tariffs for use of water by populations, by budgetary organizations and in the industry. In connection with economic problems, for the population lower tariffs are established. The collecting of means makes 80 %. Water-measuring devices are few. The collected means do not pay expenses.

The administrative structure of water supply and sanitation system comprises four levels, with the Cabinet of Ministers at the top; AZERSU joint Stock Company; “Joint SuKanal” Limited Liability Company (LLC) responsible for water supply and sanitation (WSS) in small towns and rural settlements; and finally local SuCanals at the bottom which report directly to Joint SuCanal. AZERSU is a financially independent body which receives no subsidy from senior bodies. Its main revenues are from water fees it receives from consumers.

The Non Governmental organizations (NGOs) in Azerbaijan carry out projects on informing the public on existing problems in the water sector, explain legal aspects of questions on protection of water resources by edition of bulletins and booklets, speak to the press/media and carry out of training. Since they lack their own resources, NGO’s carry out their activities within the framework of projects and grants. Frequently these projects are directed on increasing of knowledge of the population.

CONSTRUCTION STANDARDS AND REGULATIONS

In Azerbaijan, engineering survey, design and construction standards and regulations are governed by the State Construction Committee. Rules of conducting supervision and control procedures by the State Construction Committee (in several areas regarding to safety of construction by the recently established Ministry of Emergencies) had been approved by the Cabinet of Ministers in 2003. Subject to the State Construction Committee regulations all construction operations are to be carried out with due regard to the environmental requirements. Following the existing construction rules, construction or renovation works are to be carried out on the basis of the approved project (design) documents only.

The State Architecture and Construction Committee issues special licenses to conduct engineering survey and design operations (no license is required for construction operations). The project design documents include descriptions of proposed construction and related activities together with applications for permits from relevant authorities for geological studies of soil characteristics, fire safety, public health, utilities (gas, water, electricity, telecommunication) and environmental assessment. The relevant authorities conduct inspections during construction to monitor compliance with the permits, and may issue significant fines if violations are found.

LAND AVAILABILITY

Land acquisition and resettlement that might be required under this project will be governed by a Resettlement Policy Framework (RPF)that has been developed and approved by Amelioration JSC and is acceptable to the World Bank.

A RPF was developed in 2007 to cover the first Water Supply and Sanitation Project as a whole, as part of Bank screening procedures. The RPF concludes that there should be no justification for moving PAPs dwellings or other fixed assets and that the majority of cases will involve land used for arable or livestock grazing. The procedure involves the Project Implementation Unit (PIU) determining the legal status of affected lands and then determining the compensation mechanism, taking into account that users may not actually have legal tenure or permissions to use the affected land. The final step involves agreement and payment of compensation to PAPs at the stage of detailed design and before construction commences. The compensation could take several forms, involving land swap or monetary payment.

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3. PROJECT DESCRIPTION 3.1 Problem Statement

Physical Background of the Rayon Agsu is located in the foothills of the Greater Caucasus Mountains and the Agsu region of Shirvan plain. The population of the Agsu rayon, including the urban and rural areas, has been recorded as 74,100 as by the census made in 2012. The population density is 72,6 per km2.

Groundwater is found at varying depth with low mineral content. Following rainfall and overland flow the fertility of the soil has been increased. Soils in Agsu area that have been formed from the debris cones of the Great Caucasus rivers are generally in better condition for agricultural production than the lower lying plains of this region.

The main water sources for Agsu town are the waters from Girdimancay and Agsucay. Agsucay drainage water intake was built in 1957-60 and Girdimancay drainage water intake was built in 1970. These facilities have been almost destroyed by floods.

In 2005-2006 vertical water intake facilities were built on Agsu river, but the current water recourses do not meet needs. There are no meters at the water intake and distribution points. Untreated water is being supplied to the network by gravity. In the proposed system, water will be extracted from Girdimanchay Drains. The length of main transmission line will be approximately 17.8 km.

The location of Agsu in the southern foothills of the Greater Caucasus has a great impact on its climate. Agsu belongs to semi-desert and dry steppe climate and is peculiar for warm winter and dry warm summer. The climatologic conditions of Agsu have been evaluated on the base of the observations made between the years 1950 and 2006 at the Agsu Meteorological Station.

Because the Greater Caucasus mountain range prevents cold north air from streaming to the south, Agsu has as average annual air temperature of 14.1 °C. Annual precipitation is 510 mm. Annual precipitation is not been distributed equally, however. The maximum precipitation values are recorded in spring and autumn. However the minimum precipitation falls during the July –August. Precipitation mainly consists of rains, but in cold winter months snow falls. Snow cover here mainly melts immediately. In some years snow does not fall.

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Analysis of Agsu population growth rates shows fluctuation from the year 1997 to the year 2007. A steady increase in population has been observed between the years 2001 and 2004. Contrarily a continuous decrease has been recorded between the years 2005 and 2007. The rapid increase in the urban population growth rate between the years 2008 and 2009 indicates the inclusion of a village into urban area of Agsu city.

The main economic activities are agriculture, mainly grain, cotton, fruit, vegetable and cattle growing. Employment of more than 70% of the population of the rayon is related to the cultivation of agricultural products and cattle-breeding. Cattle-breeding is intensively developing in Agsu rayon. Livestock is bred both for milk and meat. At present, there are no large public industrial enterprises in Agsu town, only 4 private industrial and 3 agricultural enterprises. Almost 90 % of the employed people work in the public sector. The average salary in public sector is 162 AZN Manats whereas it is less in private sector at 136 AZN Manats.

Current Water Supply and Distribution Normally 60 % of Agsu households (incl. Karakashli Village) are supplied by water from Agsu River, which divides the municipal area into a smaller eastern and a larger western part. As a result of spring flooding and wet weather (April/May 2010) during the site visits the water withdrawal on both riverbanks was out of order so that nearly the whole town was temporary supplied by water tank trucks. The obvious problems with the water generation requires urgently the fast exploitation of new and sustainable water sources. In conjunction with this 2nd National Water Supply and Sanitation Project a scheduled project by AZERSU was cancelled to develop a new spring field 25 km upstream near Guzay Village and construct a new transmission main to Agsu. Some years ago a well field was constructed 3 km upstream on both banks of Agsu River to feed the 2 main reservoirs (500 m3) which are situated in the uppermost level of the town to supply the western network.

As the gravel of the mountainous riverbed is in motion all facilities of the well field have been demolished during the annual flooding and cannot be used anymore. Currently the water for the main reservoirs is taken directly from the river, but due to its high solid content during snowmelt and in rainy periods withdrawal must be temporarily stopped when too much sediment has accumulated in the reservoirs (Figure 3.1).

Water from the main reservoirs is distributed by 4 main pipelines (3 x DN219, 1x DN159) supplying different areas from north to south between 170–135 masl. The village Karakashli (~1600 inhabitants) is also supplied by this network. The primary and secondary network mostly consists of 25-40 year old steel pipes (~1970-85, DN100 – DN 219). Some sections of the main pipelines date from the 1960’s and are made of cast iron (DN159). As corrosion, sediments and physical damages are the problems of the steel pipes, the cast iron pipe connections have lost their tightness causing high losses that have not been quantified. In general the network is reported to be in bad condition.

Agsu East has an independent water distribution network which is regularly fed by an open channel leading the water from the river to the network inlet shaft in the upper end of the town. Without any reservoir or filtration the river water enters the network for hydrostatic distribution. This system can be only operated as long as the content of solids in the water is low. Due to a landslide in spring 2010 the channel and inlet shaft were blocked by clay and must be cleaned. The main pipeline (DN 219, Steel:0,5 mm) of the eastern distribution network was replaced in 2007/08 within reconstruction of the 2.85 km long road improvement. This new road is in very good condition. Remaining pipes are from 1960-85 are similar to those in western Agsu and have the same problems.

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Figure 3.1 Agsu water reservoir is full with Sediments

By the information given in FS document approximately 400 private consumers and 32 industrial enterprises are equipped with water meters. Due to the described deficiencies it can be estimated that max. 15 km (<67%) of the network (22.5 km) is operational and only 50% of the provided water reaches consumers. There is no supply by the public network during 2–4 month per year. Private operated tank trucks with high prices (~1.00 AZM/m3) supply 40% of the population (incl. Navahi Village) and are often the only possibility to get water.

Pirhansali Village (~1650 inhabitants) at Agsu’s western edge has seen the construction of new houses and farmyards in recent years and growth will continue in future. This village has its own water supply network fed by a big water supply channel passing through its area. The water is distributed directly and by gravity.

Clearly, a future water supply concept must consider the demand of the not supplied areas and will require complete replacement of the existing network. Even the new pipeline (2008) should be replaced as regular steel and wall thickness are in acceptable for a long term solution. This should be done at the same time as the construction of a new sewer and rainwater drainage line for the main road.

Wastewater Collection and Treatment Currently there are no public sewerage networks in Agsu. In 1985 the Rayon Hospital constructed a sewer of about 1.5 km length (DN219, ductile iron) to discharge their wastewater to an open drainage ditch in the southern part of the town. This sewer crosses private land and has been built over in some cases by new houses; 50-70 properties discharge their wastewater by

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illegal connections to this line. As reported by Agsu Rayon another sewer was built for sewerage of some industrial enterprises starting at the wine factory in the North and leading their wastewater to a drainage channel at the western edge of the municipal area.

Most of the wastewater is discharged at the properties in simple pits or - if the standard of living is higher – in septic tanks. When they are filled up they are emptied by one of the four privately operated tank trucks for sludge disposal. It can be estimated that these trucks discharge the sludge illegally in the surrounding area. If possible the inhabitants have installed direct pipes to drainage channels or Agsu River to dispose their wastewater.

The city has almost no rainwater drainage facilities, even for the main roads. Due to the loamy ground significant quantities off rainwater remains on the streets for several days. The sanitary conditions in most areas of the town are insufficient. Water-borne diseases exceed the permissible level. Due to poverty and the rural character in these quarters the situation is worsened by significant numbers of livestock held on very small properties in the city area. Cattle and sheep spend their day normally outside the town but return for the night. Disposal of their dung and urine must be considered in future concepts.

As there is no wastewater treatment most sewerage enters the agricultural drainage system directly or by ground water. In the 1990’s the Rayon Executive selected an area of 5 ha owned by the government and licensed it for use as a future wastewater treatment plant (WWTP) site. It is situated 6 km south-west of the town at 75 m asl elevation, which provides sufficient slope for a free flow of the wastewater from the town (>135 masl) to the site. The main sewer would pass Muratli Village (~1550 inhabitants) that could be also connected to the sewer system. The suitability of the ground in the marshland may be limited and must be proved by a geotechnical report. Treated wastewater can be discharged to one of the main drainage channels in the vicinity of the WWTP area.

The design of a wastewater management system in Agsu will need to take account of industrial discharge of water, and in particular the production of fruit juice and wine. There are 3 firms producing fruit juice. The biggest of them “AZ Granata MMC” has recently been built. The main product is pomegranate juice. The start of operation is expected in September 2010. Besides fruit juice (10,000 ton/a) this firm will also produce wine (5,000 ton/a). The envisaged maximum number of employees is 240. The water consumption is estimated as 134 m³/d.

General · Depletion of existing WSS assets due to lack of sustainable investments and insufficient capacities for Operation and Maintenance (O&M) · Little appreciation of public infrastructure sector and its organizations due to bad quality and service – consumers implement their individual solutions without a general concept · Provisional solutions become permanent solutions – mostly in consequence of damages and due to the limited budgets · Low awareness of hygienic interrelations of water supply, wastewater disposal. · Major WSS supply lines and other facilities often affected by landslides, floods and other natural occurrences.

Water Supply

· Lack of mechanism for application of legislation to water withdrawal from Water Transmission Pipelines, · No sound legal protection of future investments · Limited availability and/or capacity of existing water sources especially during summer

· Well fields and water drainage systems which were implemented in the mountainous river gravel beds, were often destroyed by flooding

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· Low water quality of the wells in Agsu; inefficient well pumps cause high energy costs and therefore operated only in the morning and evening

· Limited number and capacity of water supply pumps and reservoirs – no extension according to growth of population and industry · Damages caused by great age, low material quality and insufficient installation depth of pipes lead to high losses within the water distribution network · Interrupted water supply and temporarily empty pipes cause bad water quality at house connections (bacteria, sediments, rust etc.) · Hygienic problems by private water storage tanks · Manual operation of the water distribution system – no automation and control · Preference of gravity flow systems and bad reputation of pumps – as high manual effort and energy cost necessary to operate the existing old pumps.

Wastewater

· Wastewater collection, treatment and discharge is considered to be of minor importance compared to water supply facilities – low priority and nearly no investments since 1985. · Damages of existing sewers results in wastewater flows at the surface. · Too few shafts causing very limited access to existing sewer network · No equipment for maintenance and repair – no chance for troubleshooting · Sewerage disposal in unlined pits leads to pollution of ground and surface water – as private wells are also used for water supply this constitutes a serious health risk · Sludge disposal from pits and septic tanks is done illegally outside the municipal area

Socio-Economic Situation

· Low connection rate (approx. 60%) to public water supply network – many people are used to living with little water as they must carry it for a longer distance or buy it from tank trucks. · Low connection (approx. 25%) rate to sewer system. · Bathrooms not common in the Rayon towns – improvement requires modification or extension of the houses and will depend on economic possibilities of the owners · Toilets mostly outdoor using open pits without flushing – future connection to a new sewer system will depend on personal interest and require private investments · Popular cohabitation with livestock within the urban settlement without sufficient disposal of excrements

Legal and Institutional Situation

· Low level of support for Local Sukanal (water agency) Departments by central organizations and institutions, and very limited provision of know how, equipment, vehicles etc. from central departments. · Institutional complexity and dependency on central organizations and institutions inhibits solutions and investments on Rayon level · National Water Supply Tariffs are not cost-effective to cover necessary investments – for better water quality and 24 hour supply the majority of consumers need to agree to higher rates. The current tariff rates apply to a normative demand which is much higher than actual. · Value and qualification of Rayon Sukanal staff are affected by the need of manual handling and trouble shooting. They are not in line with future O&M requirements. · Skepticism of villages concerning incorporation by the cities and/or integration by larger WSS organizations – disadvantages due to limited independency and priority of the city. · The management structure and skills of Sukanals are poorly aligned for operating as a service industry. · Weak legal framework for wastewater discharge means that industries do not need to comply with wastewater discharge requirements

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3.2. Project description

The Government of Azerbaijan planned the implementation of National Water Supply and Sanitation Project with the financial assistance of World Bank since 2007. The second phase of the same project has been approved on date 27 May 2008 as Second National Water Supply and Sanitation Project (SNWSSP). The implementing agency of this second phase project is Azerbaijan Amelioration and Water Farm JSC. The general objective of this Project is to improve the availability, quality, reliability, and sustainability of water supply and sanitation (WSS) services in 16 of Azerbaijan's regional (rayon) centers. Better infrastructure services of the secondary towns and cities shall be implemented to improve living conditions, reduce poverty and support local economic growth.

The Feasibility Study was conducted by the Agsu water project in 2010. In the project documentation it is indicated that the primary objective of the project is to improve the health and livelihoods of the urban communities through the provision of safe, potable quality and adequate water supply and sanitation.

The Project contains 3 components:

The November 2003 Presidential Decree No: 3 requires the Cabinet of Ministers to undertake measures for elimination of socio economic problems and to apply the norms of the European Social Charter. The proposed WSS project falls squarely within the scope of the Decree. The national WSS norms state that water supply to the population shall be 24 hour coverage of potable quality and delivered to the consumer at the appropriate pressure. These norms accord with the European Social Charter.

The Government’s sector policies, strategy and development are based on a National WSS Strategy (2000), which recommended the setting up of ‘Autonomous Commercially-Run Utilities, under the Regulatory Control of Local Government. In secondary towns, these utilities, known as SuKanals (Secondary towns water supply agency, prefixed by town name to designate the local branch – Agsu SuKanal refers to the agency in the town of Agsu), were to be transformed into financially self-sufficient institutions eventually be able to attract the private sector to participate in their operation and management. This was followed by a Presidential Decree No. 893 of March 2002, which further set out the sector development approach. This Decree promotes private section participation, an improved tariff system, metering of water supply and revision of the accounting systems.

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The following indicators will be followed:

· Secure supply with potable water meeting World Health Organization (WHO) and/or national quality standards · Continuous water supply for 24 hours per day · Supply of each user with sufficient water for domestic needs · Water distribution system workable under operational pressures with low leakage rates · Safe collection and treatment of domestic and industrial wastewater and reduction of aquifer pollution · Compliance of water supply facilities, sewer system and wastewater treatment plant with international and/or Azeri standards. · Affordable water supply and sanitation prices for consumers and within determined service tariffs · Minimum use of natural resources to keep the impact of WSS measures on the environment at minimum level during implementation and maintenance.

The secondary objective is to implement an Action Plan that will upgrade and improve the sustainability in the Rayon centers.

The Project aims to achieve its objectives through:

· Implementation of a new, efficient and appropriately sized water and sanitation infrastructure by rehabilitation of existing facilities and construction of new ones where this is necessary. · Determine the operational bottlenecks of the water and sanitation system and develop project proposals to improve efficiency · Strengthening of local know how and capacity to deliver and maintain these services · Developing a sense of local ownership through community participation

For the water supply of Agsu rayon center there are three alternatives. The first to supply from Guzay Springs and Agsuchay Springs, the second alternative is to supply from the vicinity of Kulullu villages of Agsu rayon drainage facilities and the third from the Gursulu village of Agsu. Since the first alternative has been executed by the Agsu Rayon Executing Power it hasn’t been financially considered within the scope of this project. However the capacity and structures of this alternative have been taken into consideration during the determination of water demand projections for the year 2030. The second alternative has been selected at project FS document as a main source of water for the project purposes. Project will go in parallel with first variant and use mentioned source, will supply 50 l/s water needed for sustainable water provision in the region by 2030. During the detailed design phase the contribution of water supply as defined in the first alternative is taken into account due to completed water supply transmission line from Guzay Springs.

The designed water demand for Agsu has been determined by the Feasibility Study as 52.2l/s, which includes 48.1 l/s for domestic purposes of 23100 person(180 l./c/.d), 1.87 l/s for agricultural purposes and 2.23 l/s for industrial / commercial purposes.

During water supply by alternative 3 the average and minimum water flow of Agsuchay and Girdimanchay rivers should be taken into account for each month to avoid environmental and water supply problems for other users connected with water shortage in sources because of increased intake by projected facilities. For example for Girdimanchay river observed minimal monthly water discharge makes up 1440 l/sec(Table 3.1).

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Table 3.1. Monthly average , minimum and maximum flow characteristics of Girdimanchay river at Garanour station

Months I II III IV V VI VII VIII IX X XI XII An- Max Date Min Date nual Average 2,30 2,74 5,17 12,1 13.2 10,5 6,70 4,56 5,60 5,86 4,02 2,80 6.83 Maximum 3,62 4.25 10,3 25,2 27,8 29,4 24,1 10,2 25,0 17,0 10,7 4,56 9,67 201 15.07. 3,25 14.15. 88 01.69 Minimum 1,44 1.67 2,77 4,00 3,40 3,58 1,89 1,65 1,36 1,91 1,82 1,68 3,55 19,4 14.04. 0,90 11- 89 30.12. 71

Even during the low flow periods of summer and winter , when main source of water in the river is ground water the minimal daily flow of river will be (390 l/s) which is several times higher than the proposed water intake amount. This option has also lesser negative environmental impact. As in the other option use of ground waters will lead to reduction the ground water level. The other problem is connected with the quality of mentioned ground waters which need to be in accordance with the international standards.

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As indicated in FS document the water quality analysis carried out in Agsu at location of source shows collected sample fits into the WHO, EU and Azeri drinking water standards.

Figure 3.2. Water source in Agsu

Figure 3.3 Proposed place of location of new WSS facility

Figure 3. 4. Place of location of new WSS facility

Water supply system of the city shall be reconstructed in order to supply water from Girdimanchay Drains. The length of main transmission line will be approximately 17.8 km.

All of the existing drinking water distribution network shall be reconstructed and extended with high density polyethylene pipes. The total length of distribution lines will be approximately 111 km.

The sewerage system under the construction is proposed to be used as storm water collection system. A new sewerage collection system shall be reconstructed and extended corrugated high density poly ethylene pipes. The length of sewerage network construction will be approximately 114.2 km.

The collected wastewater shall be treated within a wastewater treatment plant having a capacity of 31,000 PE on year 2030 and discharged to the one of the drainage collectors.

Institutional strengthening for an efficient operation and maintenance shall be implemented.

Within the scope of the Project, polyethylene corrugated pipes will be laid to create a wastewater network and a new Wastewater Treatment Plant (WWTP) will be constructed . The land belongs to the Municipality. General characteristics of the WTTP are as below:

· Population Equivalent: 33,333 person (2035)

· Daily Flow: 6,000 m3/d

· Peak Wet Weather Flow Biological Treatment: 375 m3/h (acc. Azersu 50% of Peak Flow at final Stage 2, additional value shall be bypassed after Mechanical Pre-Treatment)

· Peak Flow Mechanical Pre-Treatment (Stage 2): 750 m3/h (Pre-Treatment Design for Peak Flow at final Stage 2)

The single stage aeration process with simultaneous nitrification / denitrification and sludge dewatering by centrifuges have been selected according to Azersu’s Revised Design Criteria that have been instructed by the Employer to be taken into consideration by the Contractor while preparing the revised Functional Design.

The WWTP will consist of the following main components: · Inlet pumping station · Faecal sludge acceptance station · Fine and coarse screens · Aerated grit and grease removal · Activated sludge tank · Final sedimentation tank · Return and excess sludge pumping station · Pre-thickener · Sludge drying bed · Centrifuges for sludge dewatering · Effluent Disinfection

In the following the elements of the WWTP are described in detail:

- Inlet Pumping Station After passing the Coarse Screens the wastewater is collected in the Inlet Pumping Station. From here the wastewater is pumped to the Fine Screens, at a level that allows gravitational flow through the WWTP. Three submersible pumps are installed (2 duty/1 stand-by), which are frequency controlled. Submersible pumps can be lifted with adequate turn able hoisting equipment manufactured by the supplier of the pumps.

- Faecal Sludge Acceptance Station An automatic Faecal Sludge Acceptance Station will be installed along the Fine Screening Channels. Connecting point for tankers discharging faecals and wastewater will be accessible. The connecting point will be equipped with a washwater facility for cleaning purposes. Washwater will drain back to the Inlet Pumping Station. The Faecal Sludge Acceptance Station is equipped with sensors measuring pH and conductivity value and gives alarm when pre-set values are exceeded. Screenings taken form the wastewater by means of a drum screen will be conveyed directly into a container, which is placed on a wagon that can be moved manually. The container can be loaded by truck with hydraulic hoisting equipment.

- Coarse Screen The incoming wastewater is led to Coarse Screens (1 duty / 1 stand-by) with a bar spacing of 30 mm. Coarse materials (e.g. textiles, paper, boughs, etc.) are retained from the wastewater, removed and conveyed from the Coarse Screens for discharge into a container. Cleaning of the bar screens from screenings and conveyance will be realized by a travelling rake mechanism whereby no drive parts, chains or bearings are located under the water line. The rake discharges screenings directly into a container, which is located behind the screens. The container is placed on a wagon which can be moved manually by means of mechanical actuator. The container can be loaded by truck with hydraulic hoisting equipment.

- Bypass Chamber In flow sequence the first unit of the bypass chamber is an overflow weir. It is separated from the chamber where the coarse screens are located by a wall and a penstock. In case the pumps are out of order and the penstock is closed, bypassing via the weir without flooding the screen chamber is possible. The weir crown level guarantees gravity flow of the discharged water to the outlet structure at the receiving water body. The ER require a manually raked coarse screen of the bypassed water. But in a technical meeting Azersu required to omit this coarse screen because manual raking is a bad solution in operation praxis and they are of the opinion that screening is not necessary. However there is sufficient geodetic height to integrate such a screen later on. The discharged water is collected in a bypass chamber where the open channel flow bypass pipe has its zero point.

- Fine Screen Coming from the Inlet Pumping Station the wastewater is led to the Fine Screens (1 duty / 1 stand-by). These screens are of perforated-plate-belt-type. Due to the fact that the openings are round and not of slot shape, fibres are retained much better than by typical bar screens. The screenings will fall from the screens into the inlet chute of an integrated device for washing, compacting and conveying the screenings. This device discharges the screenings into a container. This container is installed on a wagon which can be moved manually. The container can be loaded by truck with hydraulic hoisting equipment. For maintenance purposes and cleaning of the screens channel, the Fine Screen can be lifted out of the channel by hoisting equipment.

- Grit and Grease Chamber

In the next step the wastewater is treated in a two lane combined Aerated Grit and Grease Chamber for removal of sand and grit as well as grease.

In the Grit Chamber sand and grit is removed by means of sedimentation. Sand and grit settles in the Grit Channel and is pushed by the Grit Scraper to a hopper. From here it is pumped by airlift pumps to the Grit Classifier. In the Grit Classifier the sand and grit is separated from liquids and finally discharged into a container. This container is installed on a wagon which can be moved manually.

A set of diffusers is mounted over the length of the Grit Chamber for creation of coarse bubbles. These bubbles induce a swirl flow which pushes the grease into the Grease Chamber where is accumulates on the water surface. Along the surface of the Grease Chamber the grease is moved by a Grease Board mounted at the scraper bridge towards the inlet of the tank. When the board reaches its final position a penstock gets opened and a grease water mixture flushes out of the tank and is collected in a chamber. From here it is pumped to a channel where a drum screen is installed which separates the grease out of the suspension. The water flows back by gravity to the Inlet Pumping Station. The grease will be discharged into a container for disposal.

Whilst the maximum hydraulic load for the mechanical pre-treatment is 750 m³/h the maximum load for the biological treatment is 375 m³/h. Therefore flows above 375 m³/h will be discharged out of the conduit directly downstream of the grit and grease unit via a motor driven penstock and let into the aforementioned bypass pipe. The opening of the penstock will be controlled by the Venturi flow measurement mentioned below.

- Flow Measurement Following the Grit and Grease Chamber a Venturi Channel is foreseen for flow measurement of the incoming flow. At this channel an automatic sampler for water quality analysis will be installed.

- Distribution Chamber Bio-Treatment Lines For enabling a future extension by a second biological treatment line a distribution chamber is designed which can handle a load of 750 m³/h and distribute it equally to two biological treatment lines.

- Bio-P Tanks Two circular tanks for biological phosphorous treatment integrated into one structure are planned. A chamber for mixing return sludge and the mechanical treated sewage is also integrated. By means of motorized penstocks and gate valves it can be determined if the return sludge is added to the sewage at the inlet of the Bio-P-Tanks or the inlet of the Activated Sludge Tanks. Furthermore the process conduct for the biological phosphorous treatment can be manipulated (A²O or Johannesburg). Sedimentation of sludge is prevented by the installation of one mixer in each tank. Mixers are accessible via platforms. Special hoisting equipment for lifting the mixers manufactured by the supplier will be provided. There is also the possibility to bypass the complete tank. The Bio-P-Tank-Structure is equipped with pump sumps and piping for emptying in case of maintenance or repair. A mobile drainage pump can be connected to the drainage pipe from where the wastewater can be pumped from one Bio-P-Tank to the other or to the integrated bypass.

In case biological phosphorous removal is inhibited an emergency chemical phosphorous removal is provided.

- Activated Sludge Tanks The two activated sludge tanks are designed to realize a simultaneous nitrification and denitrification for biological nitrogen removal and parallel carbon compounds removal. In the aerobic sections for nitrification an aeration system is installed. In the anoxic zones for denitrification banana type mixers prevent settling of activated sludge. Mixers are accessible via concrete platforms. Special hoisting equipment for lifting the mixers manufactured by the supplier will be provided.

Also the Activated Sludge Treatment structure integrates two tanks and a chamber for mixing mechanically treated wastewater and return sludge. At the outlet of the tank structure a distribution chamber for feeding the two final sedimentation tanks is integrated. The Activated Sludge Tank is equipped with a pump sump and piping for emptying in case of maintenance and/or repair of the aeration system. A mobile drainage pump can be connected to the drainage pipe from where the wastewater can be pumped from one to the other Activated Sludge Tank.

- Blower Station Three duty blowers with a suction volume (under operational conditions) of approx. 1,500 m³/h each and one standby blower with same capacity have been chosen. All blowers will be connected to one air pipe which branches in the further course to the activated sludge tanks. Two of the blowers will be equipped with frequency converters with a range of 36-100%. This allows for a stepless range of the aeration of 1:8.3. The minimum range acc. DWA-A-131 is 1:7. Total suction air capacity (under operational conditions) amounts to approx. 4,500 m³/h which is approx. 3,760 Nm³/h. All aggregates will be installed in the blower station adjacent to the activated sludge tanks. The peak oxygen demand of wastewater is approx. 225 kgO2/h.

- Final Sedimentation Tank (FST) The two Final Sedimentation Tanks separate the biologically purified wastewater from the activated sludge. The effluent of the tanks flows to the outlet of the WWTP, while the activated sludge is led to the Return Sludge Pumping Stations for recirculation and further sludge treatment.

Each Final Sedimentation Tank is fed through a central inlet structure and water is distributed evenly over the tank. Sludge is settling down to the sloped bottom of the tank and is pushed by a rotating half-bridge scraper to the central sludge hopper, where it is discharged to the Return Sludge Pumping Station. Floating scum is taken from the water surface by means of a scraper bridge mounted skimmer from where it will be pumped to the Sludge Storage Tank.

Purified water is discharged over a V-notch-shaped overflow weir to the circular effluent channel and finally to the outlet of the WWTP. The scraper bridge is equipped with a brush, which cleans the overflow weir and the effluent channel automatically. Scraper blades can be lifted out of the water for maintenance and repair purposes.

- Return Sludge Pump Station The activated sludge coming from the Final Sedimentation Tank can be pumped back to inlet of the Bio-P- Tanks or the Activated Sludge Tanks (see above).

The Return Sludge Pumping Station is equipped with three submersible pumps (2 duty / 1 stand-by) which are frequency controlled. Each pump has its own pump sump. The sumps are separated by motorized penstocks. The recirculation rate is determined by the required sludge concentration in the Activated Sludge Tanks.

The submersible pumps can be lifted with an adequate turnable hoisting equipment manufactured by the supplier of the pumps.

The Excess Sludge will be withdrawn out of the return sludge pipe by a motorized valve and a connected excess sludge pipeline and conducted to the Sludge Storage Tank.

- Sludge Storage Tank The Sludge Storage Tank serves as intermediate buffer tank during non-operative periods. It has a volume of approximately 100 m³ and is equipped with jet aerator which avoids settling of sludge and fouling.

The pump sump for the feeding of the dewatering equipment is integrated into the tank. Submersible centrifugal type dewatering feed pumps are foreseen (1 duty / 1 stand-by).

The submersible pump of the jet aerator and the dewatering feed pumps can be lifted by adequate turn able hoisting equipment manufactured by the supplier of the pumps. They are accessible via platforms.

- Sludge Processing Building The Sludge Processing Building houses equipment for dewatering the sludge mechanically by means of centrifuges (1 duty / 1 stand-by) to a dry solid content of expected 25%. Dewatering will be supported by dosing of poly electric polymer as flocculation agent.

The dewatered sludge will be conveyed from the discharge of the centrifuges to containers by means of screw conveyors.

The building is equipped with ventilation, heating and a travelling crane.

- Administration Building incl. Laboratory and Workshop An administration and maintenance building will be built in the site of the WWTP. This building will include all facilities required for properly operating the plant. For this reason it is located in an appropriate and central place, with view and easy access to all treatment units. On the other hand there is enough distance to possible odour sources like sludge treatment The building will include offices, laboratory, control room, workshop, stores, showers and sanitary facilities, dressing rooms, kitchen, and meeting room. The building will be alimented with electricity and potable water. - Power Supply and Emergency Power Supply The required electrical power has been calculated as 187 kW. The detailed calculation is presented in the annex. For case of power failure a diesel generator set will be installed which will cover the emergency power supply of 104 kW. The generator set will be accommodated in a separate small building with dimensions like a garage.

FS Consultant proposes to use the numbers for non-sensitive areas which means that the WWTPs will be designed also for elimination of carbonaceous matter .Elimination of phosphorus by chemical precipitation with ferric or aluminium salts isn’t envisioned . The reasons are as follows:

• The limited budget, investments on the water sector are deemed to have a greater benefit for the population than establishing a very sophisticated wastewater treatment • The elimination of P requires higher skills from the personnel operating the plant • The possibility to use the effluent in the future for irrigation purposes

This process will allow to provide needed quality of treated waters with possibility of further their use for irrigation and also use of sludge in agriculture.

The effluent limits applied for the FS Document has been changed for nitrogen and phosphorus parameters based on the agreement made with AZERSU JSK on September 7, 2012. This agreed with the effluent limit values as presented in the table below(Table 3.2):

Table 3.2. Effluent Standards proposed for Design · Parameter (Unit) Non-Sensitive Area · BOD5 · Mg/l · 25 · COD · Mg/l · 125 · TSS · Mg/l · 35 · N,tot · Mg/l · 15.0 · P,tot · Mg/l · 2.0 *: Requirements for discharges from urban waste water treatment plants to sensitive areas which are subject to eutrophication.

The Specially Protected Water Objects are defined as sensitive areas by the Resolution of the Cabinet of Ministers of the Azerbaijan Republic No.77 of May 1, 2000. This resolution added some articles to the Water Code of the Azerbaijan Republic of December 26, 1997(Article 74 ). The resolution states the following:

“There shall be the following categories of specially protected water objects: - areas of internal waters of the Azerbaijan Republic and of the Azerbaijan Republic section of the Caspian Sea (lake); - wetlands; - running water courses and water collectors designated as rare natural landscapes; - zones of protection of source and mouth of water objects; - places of spawning and wintering of valuable fish types; - water objects with integral link to forests, flora and fauna and other specially protected natural resources;

- basins of underground water reserves…” Thus, the areas categorized above could be designated as sensitive areas, according to the described procedure on the same resolution. As known, EC Directive 97/271 /EC is applicable to all surface water bodies and the Caspian Sea under the territory of Azerbaijan. The question remains whether the surface water resources could be eutrophic and designated as sensitive areas in future.

If the effluent contains partly removed Nitrogen and Phosphorus, they can be eutrophic and the area of the effluent discharge can be considered as sensitive areas. This will allow for the protection of the quality of receiving waters based on their utilization. Therefore removal of organic substances causing eutrophication is preferred through a settled agreement between the relevant government agencies. Based on this agreement the new design criteria is set for the removal of phosphorus and nitrogen by the modification of wastewater treatment plants of rayons. This modification is expected to contribute in keeping the water quality of the discharged water bodies.

Since the villages of Agsu and Kurdamir rayons at the downstream of outfall location of WWTP supplies drinking water from the Girdimanchay, in order to avoid Girdimanchay to be an eutrophic water resource in future the modification in WWTP is necessary for removal of nutrients. Thus the effluent standards of UWWTD will be achieved for sensitive areas.

The requirements for sludge treatment proposed by the Consultant are stabilization of sludge and dry solids content of approx. 20% - 25%. which can be achieved by sludge drying beds.

By year 2035 main indicator will be 33,333 PE. Mainly planned in the project the extended aeration system is feasible from economic and exploitation point of view and is characterised with low probability of accidents as in this variant heated septic reservoir and utilization of qas isn’t required.

The proposed plant site is approximately 6 km south west part of the town, near Muradlı village and Kurdemir Road. The land has an area of 5 ha and belongs to the Government.

Approximately 69,44 l/s treated wastewater will be discharged to the AG2 collector near the plant which runs into Girdimanchay. Dewatered Sludge Dry Content Ratio will be 25%. According to Item 3.7, 3rd Article, Azerbaijan Republic Cabinet of Ministers Decision about Sanitary Rules, Hygiene and Environmental Specifications Based Cities and Other Cities and Other Populated Areas Treatment, Temporary Domestic Waste Storage, Regular Removal and Neutralization Guidelines dated 21 April 2005 No. 74, the disposal of WTTP sludge in landfills is prohibited because it has reuse value. Since the sludge will be dewatered and lessened due to the proposed process will be approximately 11 m³/day. Therefore WTTP sludge will be stored within the Plant and will be used in agricultural activities during the season. The use of the sludge in this way requires that the sludge must meet sludge content environmental control standards presently effective in Azerbaijan.

According to health statistics of Agsu Rayon between 2000 and 2009, most seen water source disease is viral hepatitis. Its occurrence is app. 2.7 in a year. Salmonellas, dysentery and acute intestinal infections follow viral hepatitis with 1.7, 1.4 and 1.2 occurrences in a year respectively. Water source diseases are thought to be decreased in time with the upgrade of infrastructure facilities in the rayon.

Expected project benefits in the project area: · Prevention of the ground and surface water pollution · Protection of the public health · Prevention of wasting of water resources and energy · Prevention of the soil pollution and supply of free fertilizers (i.e. sludge of proper quality from the WWTP) to farmers

3.3 Map of project area and the location of project infrastructure to be included. Agsu is located in the foothills of the Greater Caucasus Mountains and the Agsu region of Shirvan plain.It is bordered with Shemakha(North- East) , Kurdamir(South- West), Hajigabul(South-East) and Ismayilli(west) of Azerbaijan. (See Figure 3.5).

Figure 3.5. Map of location of Agsu region

Below is given division of the rayon territory to different areas depending on land use and type of economical activity(Figure 3.6).

Figure 3.6. Land use, and economic areas in Agsu region

Map of location of existing and proposed in the FS document infrastructure are given in the ANNEXES I-IV

3.4. Legal and Institutional Strengthening

Existing Organization in Agsu: Services related to sewerage system and storm water are under the responsibility of Local Birleshmish Su Kanal Authority. Three management and administration staff including one manager, 4 accounting staff, 8 technical staff responsible for water supply systems and 5 technical staffs responsible for sewerage systems has been employed by Local Birleshmish Su Kanal Authority. Proposals for Strengthening of Institutional Structure: The main proposal for the organization is to separate Agsu Su Kanal Department from the central organizations like AZERSU and Birleshmish Su Kanal in order to have an efficient and operational management structure(Figure 8.1 ). Existing organizational structure of the Agsu Su Kanal Department is proposed to be increased. Besides some small modifications within the organization structure have been proposed to be realized in order to improve the Agsu Su Kanal Department. As a must, the constructed wastewater treatment plant will require a few skilled staff, like plant director, engineer/chemist and a technician, and ordinary workers. The technician and workers for the wastewater treatment plant could be selected and trained from the existing staff of the Agsu Su Kanal Department. Besides that a part time Information Technologies Specialist (IT Specialist) is proposed to assist to the Agsu Su Kanal Department Head. IT specialist will assist to the installation and development of information technologies within the organization(See Figure 3.7 for the extended units of the Organizational Structure of the Agsu Su Kanal Department)

FIGURE 3.7. PROPOSED ORGANIZATION DIAGRAM OF AGSU SU KANAL DEPARMENT(FS)

Aghsu Su KanalDept. Information Head Technologies Specialist

Deputy Head

Operation Customer Economist Safety & Accounting Personnel Relations Inspector Maintenance Department Department Department Department

Drinking Sewerage Pumping Wastewater Water Units kept Network Stations Treatment Plant Network O & M O & M O & M O & M Units Proposed to be Services Services Services Extended Services

4. BASIC INFORMATION

4.1. Bio-physical description of project area

. Relief and geological structure

Agsu region is situated on the south slope of Big Caucasus mountains of the same natural region. The area of the region have complex relief condition. Mountainous relief forms are superior. There are also flat and foothills here. Absolute altitude changes between 150-2000 m. Flat part of the area is on Shirvan flat on the south of the region. The north part (mountainous) of the region is on Big Caucasus tectonic ascend zone, south part is on Kur inter mountain deviation zone. Agsu region is situated on magnitude 8 seismic zone. Geological structure of the area is complex. There are two geological Age of Mammals and Age of Reptiles rocks from three that are mentioned in Azerbaijan. On mountanious zone Age of Reptiles rocks are spreaded more widely. The highest part of the region is covered with Chalk aged rocks, but middle mountainous part is covered with Palaeogene and Neogene rocks. Forth age rocks of Age of Mammals spreaded in Shirvan flat. The whole area of Agsu region is covered with sedimentary rocks. The region is not wealthy with minerals. There are clay and sand resources. Forest resources are of local importance.

Climate

According to the climate condition the area of Agsu region can be divided into three parts. Semi-desert and dry climate type is superior on the flat side of the region, soft warm climate type is superior on dry field, foothills and low mountainous relief forms and cold warm climate type is superior on the north side where mountain relief forms are widely spreaded (as per Keppens’ classification). Semi-desert and dry field climate type is typical for the flat area. Annual rainfall quantity is 300-350 mm. The most part of them fall in the cold period (October-March). The summer is warm and winter is moderate. The average annual temperature of the weather is 14ºC. In the region area there are two subtypes of moderate warm climate type: 1.Moderate warm climate in which the summer is dry; 2.Moderate warm climate in which the rainfalls distribute equally in all seasons. The first subtype is more widely spreaded and typical to the foothills and low mountainous zone of the rgion. Here the winter is moderate, summer is moderate-warm, dry and autumn is much rainy. The second subtype is observed on the middle mountainous part (on 1000-1500 m). This climate type differs with its soft winter and moderate warm summer. Humidity coefficient is equal to 1. Rainfalls of cold climate type are observed on the areas where they fall equally in all seasons and sub-type is higher than 1500 m. This climate sub-type is extremely humid. Humidity coefficient is 1.2-1.5. Its winter is cold, snowy, long and summer is short and cool. Temperatures above 10 ºC varied only between 400-1500 ºC. Table 4.1 describes average monthly and annual amounts of the main climate elements of Agsu region and on Pic. 4.1 wind flower is given. The climate information is given according to the Agsu meteorological station. As it seems from Pic. 4.1 the north-west winds are superior in the region.

Table 4.1. Average monthly and annual amounts of the main climate elements of the Agsu meteorological station

№ Name of element I II III IV V VI VII VIII IX X XI XII Annual Weather temperature, C0 1.9 3.4 6.3 12.0 18.6 23.2 26.4 26.6 21.6 15.8 9.2 4.7 14.1 a) average 1 b) absolute maximum 19 23 30 34 35 40 42 43 38 31 26 21 43 v)absolute minimum -17 -11 -6 -3 4 6 11 13 5 -1 -8 -12 -17 2 Rainfalls, mm 38 46 57 55 50 45 20 19 40 59 45 36 510 3 Wind speed, m/s 1.9 2.2 2.5 2.6 2.7 2.8 2.6 2.4 2.2 2.1 1.6 1.6 2.3 4 Absolute humidity of weather, mb 6.1 6.4 7.5 10.5 14.1 15.7 17.6 17.2 15.8 13.1 9.5 7.1 11.7 5 Relative humidity of weather, % 81 80 80 72 67 55 52 50 62 74 81 81 70

6 Humidity deficit, mb 1.7 1.8 2.1 4.6 8.2 14.8 19.2 19.5 11.4 5.1 2.5 1.6 7.7

7 Evaporation over water, mm 25 29 35 69 113 188 228 240 148 78 40 30 1223

Picture 4.1. Wind flower (Gabala)

Soil types

In Agsu region grey, light and dark brown, mountain grey-brown, brown mountain forest, alluvial meadow-forest, brown mountain forest widely spreaded. The height zoning is clearly seem in the distribution of these soil types over area. Information on the main soil types distributed in the region area is given in the Table 4.2.

Table 4.2. Distributed soil types in Agsu region № Soil types Bonitet marks Area, ha 1 Brown mountain-forest 87 5670 2 Mountain-forest 87 2970 3 Meadow brown 85 3240 4 Grey 71 34020 5 Light chestnut 53 9270 6 Chestnut (simple) 80 13770 7 Chestnut (irrigated) 77 5940 8 Alluvial-meadow 69 45180 9 Gravels of river beds 10 900 Total 69 120960

One part of soils changed into agro-irrigation landscapes. Mainly dry-farming is developed. Ecosystems

Natural landscape types

In Agsu region three main landscape types are (ecosystem type) distributed: 1.Semi-desert ecosystem; 2.Mountain field ecosystem; 3.Mountain forest ecosystem. These landscape types situated according to vertical zonal rule.

Flora

The main part of semi-desert ecosystem plants are consisted of different types of wormwood, ethyl alocohol ephemmeroids etc. Depending on the soil-ecological condition of the area in vegetation period wormwood and ethyl alcohol ephemmeroids together cover the soil surface from 25-30% up to 70%. Field plants are on the low mountainous zone of the region. There are oats, thyme and shrubs. One part of these fields arose as the result of destruction of forests. Lone trees are alive witnesses of past forests. Natural grass cover of main fields cover over 70-80% of sand surface. Most of fields replaced with dry sown area and garden. Forest plants are on middle mountainous zone. The upper part of forests arose in cold climate and lower part in moderate hot climate condition. That is why on upper borders of forests beech, hornbeam and on lower border dry firm oak and other trees grow. Forests on 1000-1600 m height create whole zone.

Fauna

Semi-desert and dry field animals –in semi-desert and dry fields from preyers wolf, fox, jackal occur especially, close to sheep-pen and villages, also on open semi-deserts. Grey, chestnut and red coloured small fox (Vulpes Alpheraklyi) feeding with insect and rodents occur in all places of these landscape types nevertheless they much suffer from hunters. On semi-desert and dry fields from rodents badger, spotted or polecat (Vormela Sarmatica) and weasel are rarely occur.9 types of preyers widely spreaded in this zone. Field mouse (Microtus Socialis), Red tail mouse (Meriones crythrourusi), Bogdanov field mouse, Williams arab rabbit, small Arab rabbit, grey mountain mouse (Cricetulus Migratorius), house and forest mouses, sand mouse, rabbit are typical rodents of zone. In semi-deserts and sand fields from insecta feedings lop-eared hedgehog, long-tailed white-toothed, stink badger(Pachyure etrusca) considering as the smallest mammallia are also spreaded. Here from birds stone bird(Ocnanthe isabelino, nest in sand mouse hollows),crested lark (Alanda ciristata), grey lark, field lark, black eagle, red duck, simple dove, etc. can be shown. Typical animals of dry fields are wolf, fox, jackal, rabbit, etc. Because of fox and jackal being mainly rodent feeder, they usually inhabit far away from settlements. Grey, chestnut and red coloured small fox (Vulpes Alpheraklyi) feeding with insect and rodents are widely spreaded. Field mouse (Microtus Socialis), Red tail mouse (Meriones crythrourusi), Bogdanov field mouse, Williams arab rabbit,small arab rabbit, grey mountain mouse (Cricetulus Migratorius), house and forest mouses, sand mouse, rabbit are typical rodents of semi-desert and dry fields. In dry fields from birds stone bird (Ocnanthe isabelino, nest in sand mouse hollows), crested lark (Alanda ciristata), grey lark, field lark, red duck, simple dove, etc. can be shown. According to structure and way of life of the animal world the mountain forest zone is seriously differs from other landscape-ecological systems.One of the rare animal of this place is forest cat. Here badger and yelow squirrel are rarely mentioned. Here, some types of mouses (forest mousesrı, bush mouse, Caucasus mouse), shrew and other rodents are widely spreaded. Mountain forests are dwelling place for black woodpecker, three types of many-coloured woodpecker,snow bird, colourful nightingale, siskin, red throat. There are also water sparrow, long-tailed tomtit (in winter months), grey eagleowl in this belt.

From reptiles snake, rock lizard, grass-snake are mentioned in this belt. Mountain forests are also rich with insects (dark blue proserus insect, blue alpine insect), forest bee and snails.

Anthropogenic transformation of natural landscape

In Agsu region all of widely spreaded three main landscape types subjected to anthropogenic impact. All of the forests arose on as the result of destruction of old oak tree forests. And now the anthropogenic degree of these fields is 80%. In fields mainly dry plant is developed and grape, potatoe, grain are cultivated. One part of dry zones is under orchards (pomegranate). In XX century 50% of Agsu forests destructed. At present forests are under recovery. But the development of cattle-breeding in forest zone delay this process. As the result of occupation of Garabakh zone main parts of summer pastures of Azerbaijan lost. That is why summer pastures of Big Caucasus and Agsu region subject to strong anthropogenic impact. Sharp increase of cattle number decrease the thickness of natural grass cover of alpine and sub-alpine meadows and accelerate erosion process.

Underground and surface waters Surface waters

Main rivers of Agsu region are Girdimanchay, Agsuchay and Nazirchay. Main morphometric and flow characteristics of these rivers have been given on Table 4.3 and food sources on Table 4.4.

Table 4.3. Average long-term and extremal water use of rivers Annual Maximum Minimum Water flow water water Average height N River post catchment norm, discharge, discharge, of basin,m area,km2 m3/s m3/s m3/s I Agsu 1. Agsu-Agsu 1.48 162 0.048 367 1030 II Girdimanchay Girdimanchay- 2. Gandab 4.21 42.4 0.39 326 1870 Girdimanchay- 3. Nohur 6.50 201 0.90 352 1820

Table 4.4. Food sources of the rivers

N River station Snow waters, % Rain waters, % Ground waters, %

I Agsu 1. Agsu-Agsu 28 32 40 II Girdimanchay Girdimanchay- 2. Gandab 25 35 40 Girdimanchay- 3. Garanohur 23 38 39

Agsuchay begins from Sari-Bulag mountain (2268 m) on 2100 m height. Its length is 89 km, basin area is 572 km2, average height is 666 m. In the basin forest occupies 130 km2 area. Average river inclination is 24.7‰, density of river network is 0.46km/km2. It is tumultuous in spring and high water flood river in autumn. Agsu is connected with Girdimanchay with artificial river-bed and by this way they flow into Kura. In the chemical content of Agsuchay water sulphate anion and calcium cation are superior. Mineralization degree changes between 700-950 mg/l. Water resources of Agsuchay are used in irrigation of Shirvan flat and river area and in water supply of Agsu town. In 1960 in the Agsuchay basin aside of river-bed Javanshir water reservoir constructed. Its full size is 4.5 mln m3, beneficial size is 4.1 mln m3, water glass size is 0.7 km2. Girdimanchay begins from south slope of Babadag on 2900 m height. It is tumultuous in spring and high water flood river in autumn. Very often stream is observed in the river. In water structure of the river the sulphate and hydrocarbonate anions quantity is approximately equal (140- 450 mg/l). Its cause the flow of mineral spring into the river. River water is used in irrigation. From Agsu region Upper Shirvan channel passes.

Underground waters

Therea are little underground waters in Agsu. Only on mountainous side of the region there is suitable condition for formation of underground waters. Based on formation condition of underground waters the are of the region can be divided into three zone: · North zone; · Central zone; · South zone. Fold mountain zone occupy small place of the region (north). Spring flow here is 5-10 l/s, but sometimes 20-30 l/s. These waters are little mineralized, fresh and according to chemical content hydrocarbonated-calcium. Underground waters are very little in the middle zone. These waters are local and form on river valleys. South zone mainly occupy Shirvan flat. In these zone where Kura-Aras lowland is, gorund waters are close to the surface (up to 10 m) and characterized with high mineralization degree.

4.2. Social-economic character of Project area

Economical-geographical position

Agsu region is one of the four administrative regions (Agsu, Shamakhi, Ismayilli, Gobustan) of Mountainous Shirvan economical-geographical region. The area of Agsu region is 1015 km2 and population is 70 000. Economical-geographical position of the Agsu region is very suitable. The passing of transport and communication lines from the territories of this region going from Baku to Georgia and west and north-west of Azerbaijan, also, as Absheron economical region the closeness of Azerbaijan to the highly developed industrial centre play an important role in developing of economy and territorial forming of Mountanious Shirvan ecnomic region and Agsu region. The transport network of the region is mainly represented by automobile transport.

Population

Agsu town is the second big town of Mountanoius Shirvan economic region. Increase dynamics of population number in the region is given on Table 4.5. Table 4.5. Increase dynamics of population number in Agsu region (thousand persons) 1st of January situation Area 1990 1995 2000 2005 2012 Republic of Azerbaijan 7131.9 7643.5 8032.8 8447.3 9356.5 City population 3847.3 4005.6 4116.4 4477.6 4966.2 Village population 3284.6 3637.9 3916.4 3969.7 4390.3 Mountanoius Shirvan 212.6 240.0 252.10 266.7 295.9 economic region –total City population 58.0 66.6 70.1 80.3 101.3 Village population 154.6 173.4 182.0 186.4 194.6 Agsu region 54.6 60.2 63.1 66.8 74.1 City population 14.5 16.0 16.5 17.9 20.4 Village population 40.1 44.2 46.6 48.9 53.7 As it seems from Table 4.5 most of people live in villages and urbanization level is 27.5%. Average population density is 72.6 person per km2.

In the region in 90th of last century if the natality per 1000 person was 20.5 person, now this indicator is 9.6 person. At the recent years decrease on rate of growth of region population is connected with existed demographic situation in the Republic. In 2008 sharp increase of town population is connected with reference of neighbor villages to the Agsu town.

One part of the region immigrated to the CIS countries. Displaced persons from Nagorno- Karabakh are also inhabited in the region. Displaced persons having limited economic means and facing with unemployment are on the most protection required population level.

Economic-social situation

The economy of Agsu region is mainly connected with agriculture. Main economy areas are cattle-breeding, grain-growing, fruit-growing (pomegranate) and tobacco-growing. Here also wheat, grape, potatoe, sunflower and maize are cultivated. Approximately 70% of the population work in agriculture.

In Agsu region approximately 90% (2802 persons) of employed persons work in governmental sector. At present not any big governmental isntitution work. There are only 4 private industrial and 3 agricultural institutions. Average monthly salary of persons work in private and state sector is AZN 162 and AZN 136. The social-economic indicators of the region are given in Table 4.6.

Table 4.6. The social-economic indicators of Agsu region. Number of doctors, person 70 Number of infant schools 8 Number of doctors per 10.0 Number of children there, 380 10000 persons person Number of average medical 332 Number of children against 89 workers, person 100 places in infant schools Number of average medical 47.6 Internal general education 70 workers per 10000 persons schools Number of hospitals 6 Number of pupils there, person 10259 Number of hospital beds 310

In territorial division of labour of Azerbaijan in Agsu region together with agriculture, based on local raw material resources historically food industrial spheres, hardware production, etc. spheres have been specialized.

At recent times wheat planting is considerable increased (Table 4.7). Throughout Agsu region production of plant-growing crops and productivity on agriclutural spheres are given in Table 4.8 and 4.9.

Table 4.7. Sowing areas over Agsu region, ha

№ Sowing areas 2000 2003 2004 2005 2006 2007 2008 1 Sowing areas of 686 786 832 861 1288 1970 2593 orchards 2 Sowing areas of 21996 21932 25515 25666 25669 27541 30901 grain and grain beans 3 Wheat sowing area 16820 16265 18145 17835 17420 18900 20650 4 Barley sowing area 5167 5662 7362 7815 8231 8620 10174 5 Maize sowing area 1 1 14 for grain 6 Sowing area of 1520 501 1200 1837 1213 721 539 cotton 7 Sowing area of 71 76 66 59 85 125 sunflower for grain 8 Potato sowing area 15 34 54 61 61 66 99 9 Vegetable sowing 384 258 275 283 291 318 528 area 10 Sowing area of foodstuff melon 955 380 393 400 403 481 947 plantation 11 Orchard sowing area 686 786 832 861 1288 1970 2593 12 Vineyard sowing 402 158 183 547 436 645 645 area

Table 4.8. Production of plant-growing crops throughout Agsu region, ton № Production field 2000 2003 2004 2005 2006 2007 2008 1 Production of grain 45744 61630 72959 73847 74414 80045 89816 and grain beans 2 Wheat production 34900 46078 52663 51985 50867 55116 60260 3 Barley production 10834 15545 20287 21841 23523 24902 29429 4 Maize production 3 1 40 for grain 5 Cotton production 804 1443 2176 2186 1580 1032 641 6 Beet-sugar 1100 7895 110 production 7 Sunflower 43 46 39 35 50 70 production for grain 8 Potato production 69 145 255 281 285 311 478 9 Vegetable 2322 1420 1567 1610 1661 1819 3175 production 10 Production of foodstuff melon 5888 3100 3208 3266 3291 3932 5939 plantation 11 Fruit production 4275 4641 4805 4928 4984 5053 5079 12 Grape production 1612 1039 1039 1106 1139 1146 1190 Table 4.9.Productivity on agricultural fields in Agsu region, cent/ha № Productivity 2000 2003 2004 2005 2006 2007 2008 1 Grain 20.8 28.1 28.6 28.8 29.0 29.1 29.1 productivity 2 Wheat 20.7 28.3 29.0 29.1 29.2 29.2 29.2 productivity 3 Barley 21 27.5 27.6 27.9 28.6 28.9 28.9 productivity 4 Maize productivity for 30.0 14.0 28.2 grain 5 Cotton 5.3 28.8 18.1 11.9 13 14.3 12.1 productivity 6 Beet-sugar 314 166 65 productivity 7 Sunflower productivity for 6.1 6.1 5.8 5.9 5.9 5.6 grain 8 Potato 46 43 47 46 47 47 49 productivity 9 Vegetable 61 55 57 57 57 57 60 productivity 10 Productivity of foodstuff melon 62 82 82 82 82 82 63 plantation 11 Fruit productivity 65 65.4 65 64.2 48 60.2 60.3 12 Grape 16.5 8.4 5.2 5.2 2.4 5.3 3.3 productivity

One of the specialized fields of the region is cattle-breeding farm. In flat areas milk-beef cattle breeding, in footland and mountainous areas sheep-breeding is developed (Table 4.10).

Table 4.10. Number of cattle in Agsu region (thousan head)

Cattle- 2000 2003 2004 2005 2006 2007 2008 breeding fields Cow and 16817 17448 17627 17731 17877 17967 18368 bufallo Sheep and goat 123337 132007 137746 140720 144227 146787 149535

Information about cattle products producing in the region is given in the Table 4.11.

Table 4.11 Animal produce production throughout Agsu region

№ Production fields 2000 2003 2004 2005 2006 2007 2008 1 Meat production, 1338 2079 1853 2172 2181 2192 2208 ton(undercut) 2 Milk production, 15115 19467 21948 22724 23261 23302 23347 ton 3 Egg production, 3601 3488 4387 6065 6231 6308 6391 thousand 4 Wool production, 237 225 198 267 270 274 276 ton

There is tourism-recreation potentiality in Agsu region. Here mountain tourism and ecotourism can be developed.

4.3. Significant changes in Project area

In Agsu region reestablishment of Water Supply and Sewerage systems take into account the following construction works:

1. For Water Supply system;

· Construction of reservoirs; · Lay on water supply lines. 2 For Sewerage System

· Construction of sewage cleaning structures · Installation of lines (main waterway) removing sewage

Main construction work related to water and sewage system is described above. In recent times hydrogeological water investigation works it was confirmed sufficient amount of required water resources in Girdimanchay and Agsuchay river basins This will lead improved water and sanitation in the region. There will also be negative impact because of reestablishment of Water Supply and Sewerage systems, the works connected with their installation will impact on people.

Therefore relevant mitigations are to be preparede and implemented during the constraction process and afterwords.

4.4. Information reliability

There are three main sources of used information in preparing of report:

1. Existing web-sites, questionnaire, scientific literature; 2. Visual field investigation; 3. Experts’ investigation objects and knowledges on environment and generalization skills.

Information on physical-geographical condition, geological structure, soil cover, ecosystems, vegetative and animal worlds of the region have been taken from appropriate monographs and “Atlas of Azerbaijan”. Main sources of nformation on climate, surface and ground waters of the territory have been taken from different questionnaires of National Hydrometeorology and Department of Monitoring of Environment of the Ministry of Ecology and Natural Resources and they are the results of monitorings conducted on last years. General information on social-economic situation of the region have been taken from relative monographs and web-site of State Statistics Committee. Information on Water Supply and Sewerage System structures (reservoirs, pump stations, water cleaning structure, water supply lines, etc.) that will be constructed and renewed in the territory have been taken from TES reports implemented by Tamalsu organization, also as the result of Eptisa and Hydrometeorological Consulting organizations experts’ visual field review. Field reviews of potential construction places realized in June, 2010. Experts of the organizations preparing the reports before implemented scientific-investigation works and realized projects in diferent regions of Azerbaijan, also in Agsu region.In preparation of reports, gathering, processing, analyzing and generalization of information they used their knowledge and skills. The quality and exactness of information used in preparation of report can be considered as satisfactory. As it is noted, information have been taken mainly from web-sites of State authorities (National Hidrometeorology Department, State Statistic Committee, etc.) and questionnaires. Regarding lack of information it can be noted that there is not enough information only on animal world of the territory where Water Cleaning Structure will be constructed.

5. ENVIRONMENTAL IMPACTS

5.1 Environmental Issues The boundaries of the EIA study are defined in two ways: · The boundaries of the project service area are defined by the boundaries of Agsu city and nearby villages in Agsu Rayon. · The boundaries of the specific facilities to be established through the project are defined by the facilities themselves and the area of potential impact adjacent to them. The area of potential impact differs for different potential impacts (e.g. the area of potential impact associated with visual impacts is greater than the area of potential impact associated with land use disturbance), and these will be defined in the EIA study in association with the nature of the potential impacts themselves.

The EIA study reflects project boundaries according to each of these considerations. As described above the Project documentation has identified the following environment-related problems associated with existing WSS systems in Agsu region: · The untreated waste waters are liable to pollute groundwater and, in wet periods, surface water. · Land and atmosphere air pollution by the effect of untreated waters discharged to open areas, posing a health threat on the local population. · Leakages from old WS facilities (including water losses as a result of accidental breakage of old pipelines) and also inefficiency of water use lead to drinking water shortage by volume and time scales. · Discharge of untreated industrial wastes (including medical) represents an immediate public health risk. · Little effort is made to reduce, reuse or recycle waste waters discharged to the sewage collector.. · Absence of water meters lead to inefficient use of drinking water, including its use for irrigation and other purposes

The proposed project is intended to address these problems. Therefore, the primary environmental improvements associated with the proposed project will be the creation of an environmentally sound WSS system that eliminates these problems to the extent feasible. The major environmental risks associated with project implementation are as follows: · Proposed facilities are not in fact designed or constructed properly, either because sites are not sufficiently investigated to ensure that appropriate designs are undertaken, or because of inadequate design and/or construction supervision. · Proposed facilities are not operated properly, either because management or operational staff are inadequately trained or because inadequate financial resources are available to maintain the water management system following the investment.

The environmental consequence of these risks is the same: the proposed WSS facilities do not prevent negative environmental impacts associated with inadequate WSS to the extent that is intended.

5.2. Potential Positive Project Impacts

The primary objective of the project is to improve the health and livelihoods of the urban communities through the provision of safe, potable quality and adequate water supply and sanitation.

Based on the feasibility study document the following indicators will be followed: · Secure supply with potable water meeting World Health Organization (WHO) and/or national quality standardsContinuous water supply for 24 hours per day · Supply of each user with sufficient water for domestic needs · Water distribution system workable under operation pressures with low leakage rates · Safe collection and treatment of domestic and industrial wastewater and reduction of aquifer pollution · Compliance of water supply facilities, sewer system and wastewater treatment plant based on international and/or Azeri standards(Annex 6). · Affordable Water Supply and Sanitation Prices for consumers and within determined service tariffs.

· Minimum use of natural resources to keep the impact of WSS measures on the environment at minimum level during implementation and maintenance Implementation of an Action Plan that will upgrade and improve the sustainability in the Rayon centers through application of a new, efficient and appropriately sized water and sanitation infrastructure , strengthening of local know how and capacity to deliver and maintain water supply and sanitation services , developing a sense of local ownership through community participation

In general expected project benefits in the project area are :

· Prevention of the Ground and Surface Water Pollution · Protection of the Public Health · Prevention of Wasting of Water Resources and Energy · Prevention of the Soil Pollution and Supply of Free Fertilizers to Farmers

Water supply system of the city shall be reconstructed in order to supply water from Girdimanchay Drains. The length of main transmission line will be approximately 17.8 km.

All of the existing drinking water distribution network shall be reconstructed and extended with high density polyethylene pipes. The total length of distribution lines will be approximately 111 km.

A new sewerage collection system shall be reconstructed and extended corrugated high density poly ethylene pipes. The length of sewerage network construction will be approximately 114.2 km.

The collected wastewater shall be treated within a wastewater treatment plant having a capacity of 31,000 PE on year 2030 and discharged to the one of the drainage collectors.

Institutional strengthening for an efficient operation and maintenance shall be implemented. Within the scope of the Project, polyethylene corrugated pipes will be laid to create a wastewater network and a new Wastewater Treatment Plant (WWTP) will be constructed below the town center. The extended aeration process with sludge drying beds is selected as project proposal for the treatment of wastewater of Agsu. Treated wastewater will be discharged to the Girdimanchay. Daily, 11 m³ sludge will be produced in the WWTP and dried by mechanically. Water source diseases are thought to be decreased in time with the upgrade of infrastructure facilities in the rayon.

Based on the project modifications following environmental benefits will be observed: · More people will get benefit from the hygienic living standards by extension of service area · Additional nitrogen and phosphorous removal proses will contribute in keeping and improving existing water quality, · Increase in dissolved oxygen (DO) level which will contribute in to the aquatic life. · Eutrophication which usually manifests itself as an increase in phyto-plankton concentrations to nuisance levels will be avoided by decreased nutrients such as nitrogen and phosphorus. · Provide increase in the income level of tourism, fishing. · The execution of new design criteria for removal of nutrients will have additional benefits for the quality of water resources. · The aquatic environment will be affected in positive manner due to increase in water quality by means of removal of nutrients in wastewater. · Instead of chlorination implementation UV disinfection will have positive effects on natural environment. Hence There will be no effects on fishes and algal organisms. · Decrease in use of area for sludge drying will lessen demand to the land use. · The envisaged process type of sludge production has increased the possibility of use of sludge in agricultural areas.

5.3 Potential Negative Project Impacts and Mitigation Measures

In this section, negative environmental impacts are identified, and the significance of hose impacts is assessed. An objective methodology is therefore required to permit assessment of the potential significance of environmental issues.

As part of the Feasibility Study, a Rapid Environmental Assessment has been carried out. For this, the REA Checklist was filled for both sewerage and water supply systems. This checklist summarizes existing project area in Agsu and potential environmental impacts, which projects may cause. The checklist can be seen in the following table(Table 5.1).

Table 5.1. Rapid Environmental Assessment Checklist QUESTIONS Yes No Notes A. Project site

Project area... Densely populated? X Involved in development projects? X Close to temporary reserves or X including? Cultural heritage X Protection zone X Swamp area X Estuary X Buffer zone of protected area X Special zone to protect biodiversities X Bay X B. Potential Environmental Impacts

Will this project cause impacts...? Damage to historical/cultural There are no cultural facilities and monuments /areas? archeological monuments in the direct project zone. If any historical-cultural areas are to be recorded in the project zone in the future, proper measures are to be taken in accordance with X Environmental Management Plan (EMP). These measures should ensure protection of historical archeological excavations and cultural heritage of national and international value. Constraint to other enterprises and It is expected that project related access to buildings; noise, bad smell impacts during the construction works related disturbance to neighboring will be temporary, short-term and areas and flow of rodents, insects etc.? insignificant. The contractor should consider and take adequate measures to X build temporary alternative roads, passages and relevant infrastructure to ensure access of people, reduce distribution of noise, bad odor and reach of wastewater to other sites. resettlement or necessary relocation of The project doesn’t include relocation of X local people local people. It is also unlikely to result

in loss of real estate, income sources and settlement areas. In case of temporary or permanent withdrawal of land owned by people during construction of water pipes or sewage lines, the losses will be compensated in accordance with relevant legislation of Azerbaijan republic. damage to quality of downstream water Currently there is no adequate source for in case of discharge of improperly discharge of treated wastewater. treated or untreated wastewater? Wastewater flows are usually discharged into open areas without any treatment which cause pollution of surface and ground water sources. It is believed that in the future the treated wastewater will be discharged into dry river bed or reused for irrigation purposes. If reused for irrigation, then in the periods out of irrigation season treated wastewater might cause damage to environment and health of people. Therefore, level of treatment shall be adjusted depending on the conditions of reuse and discharge. The wastewater flows will be treated to comply with the Surface Water Protection requirements of BOD 5- X 20 3mg/l. So, 24 hour aeration process is envisaged with the application of full biological treatment. Wastewater flows treated up to BOD20= 20mg/l will undergo full retreatment in the natural pools. Additional nitrogen and phosphorous removal proses will contribute in keeping and improving existing water quality. Increase in dissolved oxygen (DO) level which will contribute in to the aquatic life. Instead of chlorination implementation UV disinfection will have positive effects on natural environment. Hence There will be no effects on fishes and algal organisms.

Flooding of private properties with Project includes construction of untreated wastewater wastewater treatment works somewhere outside the urban area. The structures will comply with the modern X technological standards and the process of construction will be supervised by the technical expertise. The operation and maintenance of the structure will be carried out by the qualified operator

adhering to relevant technological schemes, design parameters and normative acts. The situations causing flooding the neighboring settlements and private property, other than natural disasters and technical breakages are unlikely. Environmental pollution due to Sludge produced by wastewater improper sludge operation or discharge treatment will be processed properly. of industrial wastewater into public Sludge processing shall ensure full sewage system? liquidation of its pollutant and harmful compositions. If sludge will be used for agricultural purposes, the proper processing will be included in the wastewater treatment process and respond to relevant sanitary- hygiene norms. If sludge will not be used in agriculture, it will be processed accordingly, stored in sludge fields and buried in the areas agreed with Rayon Executive Power X and sanitary center. The body responsible for the maintenance of the treatment plant and sanitary-hygiene department will control discharge of inadmissible harmful substances, wastes and materials into the sewage collector. It has been expected that decrease in use of area for sludge drying will lessen demand to the land use. The envisaged process type of sludge production has increased the possibility of use of sludge in agricultural areas.

Noise and vibration due to explosions Construction works will be carried out and other construction works? in accordance with bidding process. It will be implemented with due compliance with specifications, ecological and sanitary norms and X regulations. The quality and scope of works will be supervised by PIU and selected consultants. The constructor will take necessary measures in due time, with a view not to exceed allowable level of noise and vibration. Discharge of toxic substance into Inadequacy of contractor’s project sewage system which may damage the related activities may cause damage to system and harm workers health? environment, staff health, and health security of local people, including X discharge of toxic chemical substances to sewage collectors which may lead to bad consequences. The organization of works in accordance with the best practices and implementation of

trainings for the local staff are the key components to eliminate or mitigate adverse environmental impacts and risk to human health. Buffer zone to mitigate noise or other Presently there are no protection potential damages to surrounding lines/buffer zones around existing locations and supply structures with sewage structures and pumping stations. protection zones? The planned new structures or rehabilitation of existing ones will require allocation of sanitary protection X zone as indicated in the sanitary- hygiene norms. The planting of trees to provide a fence around these zones and implementation of other adequate arrangements will contribute mitigation of noise, vibration and other potential impacts. Conflicts between construction staff Social studies implemented in the from other areas and local workers? project zone show the sufficiency of local labor force with different disciplines. One of the project outcomes is the creation of new temporary and X permanent employments. Thus, local expertise must be favored in the process of employment. Any conflicts resulted on any grounds will be resolved under procedures of Management of Social Impacts. Traffic closures and temporary It is expected that construction of water flooding of roads due to earth supply and sanitation system implies excavation works and during rainfall enormous earth excavation works. The seasons? contractor will plan the work phases, X provide temporary roads for local population, protect surrounding areas from flooding due to excavation works and take proper actions to handle excavated material. Noise and dust caused by construction Noise and dust caused by construction works? works will be mitigated by the application of best ecological practices. These measures may include implementation of works during ordinary working hours and application of noise silencers. Noise production rate cannot exceed 65 dB in the daytime and X 45 dB in the dark hours in accordance with Azerbaijani standards and norms. The dust distribution must be eliminated by minimum application of machines and mechanisms producing disturbing noise, watering of the construction site, provision of coatings over dusty materials and temporary fences and other methods.

Traffic constraints due to Construction works must be organized in transportation of construction materials such a way that they don’t cause and wastes? constraints to normal traffic and extra noise. In order to avoid pollution of central X urban areas excavated materials will be transported through alternative secondary roads rather than main highways. (to be agreed with rayon SRP). Excavation of temporary silt? One of the environmental impacts is the silt and other earth materials generated due to construction works. Such materials will be handled in X accordance with the EMP, surrounded to ensure flow to other areas, covered (if necessary) and discharge to areas as agreed with the Rayon Executive Power. Health risks due to flooding and Treatment structures will be operated in groundwater pollution due to sewage compliance with the relevant guidelines line deterioration? and standard documents. These structures will be provided with emergency outlets in cases of breakages and other damages. Emergency outlets X will be used with the prior awareness of the adequate local bodies. The emergency plan of the operator of the treatment structure will include early warning of unexpected emergency situations. Damage to water quality due to bad The plant should include internal sludge treatment or discharge of laboratory to ensure operation of wastewater without treatment? treatment structures in compliance with the relevant ecological and sanitary norms and adherence to permissible X pollution level of the treated water content. The operation of these structures will also be followed by the local sanitary agencies and MENR regional departments. Pollution of surface and groundwater Negligence of control of sludge sources due to sludge accumulations? accumulation in ecologically vulnerable areas can increase risk of pollution of X surface and groundwater sources. The contractor will apply best practices to mitigate such risks. Risks to health of operation staff Wastewater operation staff should resulting from toxic gases, harmful follow adequate technological substances, including pathogens in the instructions and sanitary norms in daily wastewater and sludge residues? X working hours and be provided with relevant safety uniforms and facilities. The security experts of wastewater treatment plant are responsible for safe

working conditions and training of operation staff on security issues. Conflicts of raw water supply with the The supply of water will surely affect consumers of other surface and the capacity of the supply source but groundwater sources? X have no conflicting factor with other water consumers.

Supply of unreliable raw water Water sources meeting potable water (including extra pathogens and mineral norms and having required flow rates compositions)? approved by the government, including necessary technical, economical, X financial, and ecological requirements are seen as reliable alternative sources. The project excludes investigation of sources irrelevant to the above indicators. Delivery of irrelevant water flows into The development of operation the distribution system? department must ensure adherence to the wastewater treatment operation X procedures and exclude any delivery of irrelevant and inadequate to water standards water flows into the distribution system. Irrelevant protection of intake A sanitary-protection zone is envisaged structures or wells resulting in for water supply source to be selected pollution of water supply? through comparison of different alternatives meeting technical, ecological, financial and ecological X conditions and adequate structures to be built on this source. This zone will ensure any discharge of wastes or substances and illegal access to the selected water supply facilities. Oversupply of groundwater flows The project studies will prioritize water resulting in soil salinization and ground sources with sufficient flow capacity setting? and adequate quality (rivers, main water X pipelines etc.), including artesian wells. The risk of soil salinization or ground settling will be determined by adequate geological investigations. Overgrowth of water-plants in the Growth of water plants on the walls and water reservoir? bed of water reservoirs is unlikely. Eutrophication which usually manifests itself as an increase in phyto-plankton concentrations to nuisance levels will be avoided by decreased nutrients such as nitrogen and phosphorus. X The execution of new design criteria for removal of nutrients will have additional benefits for the quality of water resources. The aquatic environment will be affected in positive manner due to increase in water quality by means of removal of nutrients in wastewater.

Production of wastewater flows which Improvement of water supply will surpass design capacity of domestic certainly increase production of sewage system? domestic wastewater flows in the project towns. However, project X activities include construction of adequate sanitation system and wastewater treatment structures which will prevent environmental pollution with additional wastewater flows. Risks resulting from inadequate design The chlorine to be applied in the primary of structures envisaged for purchase, production structures and water storage and application of chlorine and reservoirs and transportation, storage other toxic chemicals? and application of reagents to be used for water cleaning purposes and laboratory analyses will be carried out in accordance with the ‘National Strategy X on the Management of Hazardous Substances and Wastes of the Republic of Azerbaijan’, including inventory of these substances. The given provision excludes any adverse impact of these substances on adequate staff and local population. Health risks due to application of Chlorine and other reagents to be used chlorine and other substances to for disinfection of potable water is disinfect water? unlikely to cause any health risks because the staff working with such substances will have necessary knowledge of behavior with such X substances and follow adequate guidelines and instructions. By modification of chlorine disinfection to UV disinfection in WWTP the risk of vulnerability of staff has been decreased. Risks of inadequate water supply and The project envisages full replacement disproportionate chlorination in the of pipes, structures and other facilities distribution system due to bad of water supply and sanitation system of operation and maintenance (siltation of the project area and their maintenance filters)? in accordance with the best practices and laboratory analyses of potable water supplied to urban population. The X application of new operation model to the water supply facilities will cause operational and service improvement of this sector. In line with above notes it is not likely that the level of chlorine in the water flows supplied to local population will increase permissible levels. Delivery of water to corroded Modern and more reliable construction distribution network due to negligence materials (polymer pipes etc.) will be X of proper proportionate application of used in the reconstruction of the water chemical substances? supply and sanitation system which will

ensure proper operation of distribution system and its corrosion resistance. Unexpected leakage of gas chlorine? Transportation, storage and application of any chemical substances to be used for disinfection of potable water will be carried out in accordance with the adequate guidelines. The adherence to X such guidelines will prevent any leakages. By modification of chlorine disinfection to UV disinfection in WWTP the risks have been reduced. Oversupply of water to the downstream According to the current studies existing consumers? water sources used for water supply are irrelevant, with negligence for physical- chemical treatment which causes health X risks. The improvement of water supply and sanitation system will cause no risk for downstream consumers.

In addition to the findings in above table for comparison also a semi-quantitative analysis has been undertaken to further evaluate potential environmental impacts. Accordingly, “Valued environmental components” (VEC’s) are determined and ranked according to whether they are “high”, “medium” or “low” ( Table 5.2). Each of the environmental components identified in the Table has been identified during the consultations or as a result of technical analysis. Valued environmental components that are valued as “high” are those that are broadly important across society. VEC’s that are ranked as “medium” are those that are important at a community level, but are of limited significance at a wider level. VEC’s that are ranked as “low” are significant at a localized level1

The table evaluates the significance of potential impacts with respect to each VEC. The “significance of potential environmental effects” is ranked based on the intrinsic potential of the identified potential effects to impact the VEC’s. As identified in the Table, the potential significance of possible project effects is ranked as “high” for most of the VEC’s that are highly valued. However, the significance of project impacts on land use is considered to be “medium” since the amount of land in question is limited, some future land uses would be enhanced (and development costs lowered) by facility development and specific alternate land uses have not been proposed.

The significance of potential project effects on VEC’s ranked as “medium” varies. In some cases, potential project effects are ranked as “high” and in other cases as “medium”. This recognizes that the project may have effects ranked as “high” or “medium” even though these effects may be on VEC’s that are not themselves ranked as “high”; these effects will be important to address to ensure that the project does not disadvantage the communities in which facilities are located. The project has only “low” potential with respect to the location of reservoirs and treatment plant facilities to impact property values, however, since Agsu community is located in a distance from the proposed site.

VEC’s ranked as “low” are those that are relevant at the scale of individual property owners and users of the land on which proposed facilities are proposed to be located. Notwithstanding that they are considered as “low” from the perspective of society as a whole, they may be of the highest importance to the individuals and their families who

1 The identification and priority assigned to a VEC has been informed by the public consultations that took place in June 2010.

Table 5.2 :Valued Environmental Components and Potential Negative Effects

VALUED ENVIRONMENTAL COMPONENTS SIGNIFICANCE OF POTENTIAL NEGATIVE EFFECTS AVAILABILITY OF Priority Environmental Component Potential Negative Project Effects Potential Significance of Effect* MITIGATION MEASURES Construction Phase High Ground and surface water Pollution of ground and surface water High Measures available Land Use Long term reduction of choices for land development at the Medium Measures available area Natural habitat Disturbance of the natural habitat due to construction Medium Measures available related noise, dust, non-seasonal works, unprocessed residues and etc. Low Measures not available Loss of natural areas due to construction works. Flora and fauna Earthworks, operation of machines, noise and etc.; Medium Measures available Losses or degradations during and after construction works, non-seasonal works, change of ecological situation etc. Drinking water quality Pollution of drinking water sources High Measures available

Cultural heritage Loss of cultural heritage Medium Measures available

Public health Injury from use of harmful substances in construction High Measures available (paints with heavy metal, lead compositions), asbestos- cement slabs, inflammable and toxic materials etc.) Air quality Dust, gases/aerosol associated with construction (toxic Medium Measures available gasses discharged by construction machineries, windblown construction materials etc.) Soil Contamination of soil from land disposal of construction Low Landfill for disposal of wastes wastes is not available Traffic/construction vehicle Increased level of truck/construction vehicle traffic in Medium Measures available impacts communities Odour, dust and noise impacts Odour, dust and noise impact at staff and off-site receptors Medium Measures available from construction activities Medium Environmental pollution form Environmental pollution due to improper sludge operation Low Measures available WWTP or discharge of industrial wastewater into public sewage system

WSS SHABRAN JULY 2010 EIA SCOPING STUDY 79

VALUED ENVIRONMENTAL COMPONENTS SIGNIFICANCE OF POTENTIAL NEGATIVE EFFECTS AVAILABILITY OF Priority Environmental Component Potential Negative Project Effects Potential Significance of Effect* MITIGATION MEASURES Socio-economic stability Inability of local communities to pay for services High Measures available

Public health Health risks from unprocessed wastes; High Measures available Use of harmful substances by users of the WSS system (paints with heavy metal, lead compositions, toxic materials etc.) Soil Contamination of soil from land disposal of sludge; High Measures available Possibility of erosion related to wastewater discharge; Flooding of sewage system Production of wastewater flows which surpass design High Measures available, capacity of domestic sewage system as a result of increase except that landfill for of water supply disposal of wastes is not available Odour impacts from wastewater Odour impacts on nearby properties High Measures available treatment plant site activities Reduction of land in productive Reduced land availability for grazing and crops Medium Measures available agricultural use Limitations on future Reduction of development options (reservoirs, WWTP High Measures available development area) Limitations on future development Reduction of development options (reservoirs, WWTP High Measures available area) Environmental pollution from Soil, air and/or water pollution from improper storage of Medium Measures avaiilable WWTP construction construction materials Operational Phase High Socio-economic stability Inability of community to pay for facilities High Measures available Reduction in property values Low Measures available Public health Health risks from sludge disposed as waste High Landfill to protect public health from health risks related to waste not avaiilable Soil Contamination of soil from land disposal of sludge High Landfill to protect soil quality from contamination related to waste not avaiilable

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VALUED ENVIRONMENTAL COMPONENTS SIGNIFICANCE OF POTENTIAL NEGATIVE EFFECTS AVAILABILITY OF Priority Environmental Component Potential Negative Project Effects Potential Significance of Effect* MITIGATION MEASURES Possibility of soil erosion related to wastewater Medium Measures available discharge; Flooding of sewage system Production of wastewater flows which surpass design High Measures capacity of domestic sewage system as a result of increase availableMeasures of water supply available, except that landfill for disposal of wastes is not available Odour impacts from wastewater Odour impacts on nearby properties High Measures available treatment plant site activities Reduction of land in productive Reduced land availability for grazing and crops Medium Measures available agricultural use Reduction in local property Loss of investment value by residents Low Measures available values. Medium Limitations on future development Reduction of development options (reservoirs, WWTP High Measures available area) Visual impact Unsightliness of treatment facilities Low/medium Measures available Employment/livelihood Loss of traditional employment/livelihood High Measures available Low Amenity value Loss of amenity value adjacent to treatment facilities Low Measures available

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depend on the proposed site locations for their livelihood. Potential project impacts on VEC’s at this level are “high”, since the project has potential to seriously disrupt both the livelihoods of those who use the land as well as the amenity values they associate with the land.

Table 5.2 also identifies the availability of mitigation measures. As indicated in the table, mitigation measures are available to address all potential negative effects identified during the period of the preparation of this document.

Mitigation measures may be at the level of facility siting, design, construction and operation, and may include physical, financial, institutional or other measures. An environmental monitoring plan will ensure that all measures are appropriately undertaken and that required environmental standards are maintained. This will document the nature and frequency of the monitoring required. For the WWTP site, environmental monitoring will include a schedule for regular monitoring for key indicators of contamination.

Check points, terms of selection of samples of waste water and main indicators of its content are defined in each specific case at designing and they are specified at operation of irrigation systems in agreement with local control bodies.

Analysis of content of sludge of waste water which is an amount of 11 m³/day is conditioned before usage in agricultural practices. Background content of heavy metals in soil isn’t high and sludge meets demands for irrigation use on fields.

After the treatment process environmental quality standards should be followed. Treated waste waters can be used for irrigation or discharged to local drainage canal which runs into Girdimanchay. Girdimanchay has been used as a water resource by the villages located at Agsu and Kurdamir rayons. The quantity of Girdimanchay’s flow is given at Table 3.1. As stated above it has an average flow capacity of 1.44 m³/s and has a minimum flow capacity of 390 l/s. This amount will be also decreased by water taken from this river in order to supply drinking water to Agsu at an amount of 50 l/s. When these conditions are considered the treated water will have an amount of 69.44 l/s which is approximately 21 % of the minimum flow amount. The quality of Girdimanchay is provided at the Annex VII. According to these quality information the river is considered to be as clean as that the drinking water could be obtained from it. Although both nitrogen and phosphorus contribute to eutrophication, classification of trophic status usually focuses on that nutrient which is limiting. In the majority of cases, phosphorus is the limiting nutrient. While the effects of eutrophication such as algal blooms are readily visible, the process of eutrophication is complex and difficult to measure. The variables like total phosphorus, ortho phosphates, total nitrogen, mineral nitrogen (NO3+NH3), Kjeldahl nitrogen are considered to be casual ones for the eutrophication. Change in design criteria leads to the decrease of the phosphorus amount which is usually considered to be 10 mg/l in moderate raw sewerage to a concentration of 2 mg/l. This would contribute to improving the water quality in the river.

5.4 Data Evaluation The information basis for the EIA was differs according to the specific assessments that have been required. In first turn archive materials have been used to get basic information about physical- geographic conditions of Agsu region, environmental situation, water resources , their use and protections and etc. The project feasibility document provided the main information about existing situation and proposed project activities. Documentary information has been supported by a series of field trips. have been organized. During the trips, based on the existing information provided by the relevant organizations, visual monitoring and opinions of stakeholders additional information about the existing water and sanitation situations, project needs and its positive and negative impacts was gathered about the existing water and sanitation situations, project needs and its positive and negative impacts. This is based on the existing information provided by the relevant organizations, visual monitoring and opinions of stakeholders.

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Results of discussions with the stakeholders are described on the Annex IX During the development of EIA report FS report materials on project activities, its impacts and proposed environment management procedures have been checked with the national and international standards. Main data gaps were connected with the lack of long term water resources and waste water quality and quantity information, water use by different sectors, waste discharges by different economic sectors, and pollution of water resources , ground waters and soil by waste waters etc. In spite of this information used can be considered sufficient for the EIA development.

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6. ANALYSIS OF ALTERNATIVES TO THE PROPOSED PROJECT

Project sites are required for the water reservoirs, pipelines , pumping stations and waste water treatment facilities. Project sites for reservoirs are primarily determined as a function of least cost associated with construction, provision of necessary portion of area with required amount of water by gravity. Analysis has been undertaken to identify the least cost location for each element of construction work. In addition, the locations proposed for reservoirs and WWTP are municipally-owned lands. Discussions have been held with local communities to determine specific locations within the community where pipelines for WS and sewage system can most appropriately be located from the community perspective. The location of the facilities has been pre-determined based on an extensive analysis of some alternative locations.

Using this information a number of options were identified and the concepts reviewed and discussed with the PIU and the Team. The options were agreed on and will be submitted to detailed technical and financial analysis as the basis for determining the least cost option.

At meetings with Rayon staff, gravity systems for water supply were consistently promoted as the preferred method of supply. The reason given was the simplicity of operation and the additional operating costs from pumped sources. Alternatives such as groundwater, bore fields were not seen to be viable and made data collection for non gravity options more difficult.

Within the scope of the project polyethylene based corrugated pipes will be laid in wastewater network and a new Wastewater Treatment Plant (WWTP) will be constructed approximately 2 5 km away from the town center In formation on reservoirs and other infrastructure is described below at water supply and waste water system improvement sections and their locations can be seen from the relevant annexes to this report(Annexes I-V) The following alternatives have been considered during the EIA process: (i) No Project Scenario (ii) Water Supply System improvement only (iii) Water Supply and Waste Water Management System improvement

6.1. No project Scenario

No project scenario would see continuation of an inefficient and unreliable, water supply system, which has limited coverage, delivers low pressure supply and has water shortages. With regard to the wastewater system, the situation will be worsened by the discharge of raw wastewater into the soil, groundwater and eventually the river network, due to the lack of a WWTP. The socially and environmentally damaging situation in the rayon will be further exacerbated, the risks of flooding of the streets and houses will be raised. Pollution of soils, air quality (bad odor), damage to the flora and fauna will occur, surface and groundwater will be seriously impacted

6.2. Water Supply System Improvement Scenario

According to the Feasibility Study, the average daily water consumption is estimated as 52.2 l/s for the design purpose of water supply network. This estimate includes water use by households, entities, stock feeding, industry etc. The current water losses in the system will be eliminated in the improved water supply system. The following water supply options have been analyzed: Alternative 1: Water supply from Guzay Springs and Agsuchay River Springs: Guzay springs have been considered water supply source for Agsu Rayon center. These springs have been originated at the right river bank of Agsuchay which is located at the intersection of sandstone rocky area with the river at the North of Agsu city center. The distance of this water supply sources are approximately 22 km to the town center.

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The status, efficiency, quality and intake abilities of this water supply source have been investigated in the FS Document. It was discovered that at the location of Guzay springs three different water intake spots have a distance in between 150-200 m to each other and with a safe capacity of 40-50 l/s at dry seasons. Since the water demand of the Agsu town center will be approximately 75 l/s in year 2030, the other water supply alternatives have been elaborated within the vicinity of Agsu town. Consequently in addition to Guzay springs three more springs located at the left river bank of Agsuchay have been decided to be used as water supply source. However a project supported by the Azerbaijan Government executed by Agsu Rayon Executive Governor intents to supply totally 30 l/s water to the Agsu town. The supplied water will be given to three water reservoirs which will be constructed within the scope of project. In order to supply water requirement of Agsu Town in year 2030 with adequate amount of water it has been intended to supply an additional amount 50 l/s water within the scope SNWSSP. Therefore the Girdimanchay and Kulullu water resource have been elaborated as a water resource. Besides that the water reservoirs that will be proposed within the scope of SNWSSP is considered to be additional water supply reservoirs to the project executed by Agsu Rayon Executive Governor. The water supply transmission line is completed and water is delivered to Aghsu town. The design flow rate of the project is 30 l/s.

Alternative 2 (Preferred Alternative): Water supply from Kulullu Drainage: Kulullu drainage area is near to the Kulullu village which is located at the water basin of Girdimanchay at an elevation of 176 m. Presently Kurdemir town’s water has been supplied from that water source. As result of the site investigations the FS document shows that 50 l/s of water could be safely supplied from this water source. The water in that area could be conveyed with a pressurized pipe line to the Agsu town. The supplied water will be diverted to a 100 m3 water reservoir of a pumping station. The pump located in that station having capacity of 90 kW will elevate the water to another 100 m3 water reservoir which has a max water elevation of 289 m. The length of this pressurized pipe will be 8.700 with a diameter of 315 mm. After that, water will be transferred by gravity to the Water Reservoir 2 with a pipe having Ø355 mm diameter and 8.600 m length. Water Reservoir 2 will be constructed within the scope of SNWSSP. The Water Reservoir 2 will feed the Water Reservoir 1 and 3 as well as pressure zone 1 of the water distribution network. A separate pipeline outgoing from Water Reservoir 2 will feed the Pirhasanli Village. At the location of Water Reservoir 1 there will be two equal sized water reservoirs with size of 1000 m3. The construction of water reservoir 3 is also out of the scope of SNWSSP

Alternative 3: Girdimanchay Water Supply System at Gursulu Village: This water supply area is located at the upstream part of the Girdimanchay according to the Kulullu water source. The height of this site is almost 310 m. The site investigations undertaken in the FS document have shown that 50 l/s of water could be safely supplied from this water source. The water should be accumulated by an intake structure. The collected water can be diverted to Water Reservoir 2. The pipe having diameter of Ø355 mm will transfer the water by gravity at a distance of 11775 m. There will be a pressure release chamber with a volume of 50 m3 at an elevation of 255 m. The same distribution and feeding system exists for this alternative as in the second alternative.

Since third alternative is economically the most appropriate on the water supply source, water quality analysis has been carried out for that source in the FS Document. According to the results the water quality parameters generally complies with Azeri standards and EU and WHO quality criteria. (See Annex VII). According to the results this water falls into Category A according to the EU Council Directive 75/440/EEC. However, physical and microbiological parameters are a bit higher than expected. Even in that condition this water source could be used as a drinking water with simple physical treatment and disinfection, e.g. rapid filtration and disinfection.

Alternative 3 is described in the FS document as being preferred from technical, financial and economical points of view. This selection is predicated on the assumption that:

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- By construction of structurally sound main water supply trunk the water can be supplied in a sustainable manner with good operating condition and a regular annual maintenance program. - Water quality from the Girdimanchay Water Supply System at Gursulu Village meets EU, Azeri and WHO water quality standards. - The operating and construction costs of the Kulullu source is not an economical solution for Agsu town compared to water obtained from Girdimanchay Water Supply System at Gursulu Village.

During the FS it was considered that water supply by alternative 1 and Alternative 3 the average and minimum water flow of Agsuchay and Girdimanchay rivers should be taken into account for each month to avoid environmental and water supply problems for other users connected with water shortage in sources because of increased intake by projected facilities. For example for Agsuchay river observed average monthly water discharge makes up 560 l/sec and for Girdimanchay 1440 l/sec.

In detailed design phase since the water supplied as defined in Alternative 1 at an amount of 30 l/s, the water supplied from Girdimanchay with an amount of 50 l/s will be adequate for 67,08 l/s by 2030 for Agsu and vicinity villages of Padar, Gürsulu, Kalagayli, Pirhasanli, Elabad, Tecile and Muradli.

For the selected option there also some other requirements.

Main environmental impact of the construction and operation work envisioned in the project are described in Chapter 5 and list of potential negative impact is given in the Table 5.1 The widening of the access road through the uplands is relatively straightforward for most of its length, as it is flanked by disturbed ground with sparse vegetation. The work in the wooded habitat and vegetation will create some environmental problems including damage to topsoil and to tree roots; and erosion may result. Full adherence to good site practice should be ensured, as well as storage and handling of fuels and oils to avoid contamination. There will be temporary disturbance during construction of the reservoir and intake infrastructure, as well for the areas along the pipeline routes to the reservoirs but this is not expected to be significant .

Within the water supply system improvement also is considered some options for alternative water distribution infrastructure

Agsu town is divided into three pressure zones. But, different from other towns, pressure zones do not only depend on elevation and topography. Since a 500 m3 reservoir will be constructed to the north side of the town near the left bank of Agsu creek to 202 m elevation, south side of the left bank is established as a pressure zone. Right bank of the Agsu creek is established as a pressure zone up to 185 m elevation. Upper elevations of the town are selected as another pressure zone. 1- Pressure Zone-1 (145 m - 185 m) 2- Pressure Zone-2 (175 m – 215 m) 3- Pressure Zone-3 (145 m – 185 m) These zones are not ordered according to their elevations as discussed above. Also as can be seen above, upper and lower elevations of these zones splice on each other because they are adjusted also in such a way that they supply water to their zones consistently to their volumes. As a result of these facts described above, no other variants are developed for water distribution. Because of this reason, economical analyses for variants are not carried out. Since the existing distribution is in a very bad situation, partial rehabilitation of the network cannot be considered as an alternative to this project. The proposed water distribution system of Agsu is supplied from the reservoirs by only gravity which means that the required pressure in the network will be obtained by difference of elevations without water extraction directly from force mains. Network is divided into pressure zones in order to satisfy pressure constraints. The first pressure zone supply water to elevations between 145 and 185 m; its projected

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population is 9.542 ca (2030), and area of the zone is 387,44 ha. Second pressure zone supplies water to elevations between 175 and 215 m, has a projected population of 9.832 ca (2030) and area of 371,94 ha. Third zone is in between 145 and 185 m. Area of this zone is 141,66 ha and its population is 3.727 ca. In the distribution system four reservoirs are planned for supplying water to three pressure zones. Two of these reservoirs belongs to the first zone. One of these reservoirs is in use and supplies water to city. Volume of this reservoir is 1000 m3 and maximum water elevation is 212,5 m. This existing reservoir will be rehabilitated by AZERSU. Near this existing reservoir, a new one is planned to be constructed. This reservoir will also have 1000 m3 volume and 212,5 m maximum water elevation. Outlet pipes of both reservoirs are at 208,67 m. Reservoir of the second zone has 1500 m3 volume with 235 m maximum water elevation and 230.67 m outlet pipe elevation. Third reservoir is planned to be constructed by AZERSU left bank of the Agsu creek as discussed before. Volume of this reservoir is 500 m3 with maximum water elevation of 204,50 and 200,72 m outlet pipe elevation. Volumes of these reservoirs are calculated according to the design criteria considering the fire demands. It should be noted that during the construction of reservoirs relevant environmental requirements need to be followed. Though there is no sencitive natural zones at the places to be used for their construction, but process of construction n should be carried according to environmental management plant with due attention on impact to soil, water resources and other spheres. Solid waste like asphalt cover, rocks, concrete, gravel, metals etc.may be generated during drilling and putting or replacement of pipes. During this process it will be necessary to remove of asphalt surface and importation of suitable materials (sand and others) as well as backfilling using suitable excavated material. During repair of paved roads and walkways and asphalt surfaces relevant rules should be followed..

No sewage system improvement option

As in the no project scenario, the situation will continue to worsen from social – economic and environmental point of view if there will be no waste water management system improvement. In addition to the no project scenario as by the information of FS document water demand per person will increase significantly due to limited supply of water by existing system in the near future (2015) and stay constant until 2030. After the supply of reliable and persistent drinking water to the towns within the scope of the SNWSSP, both the water consumption and wastewater generation are estimated to increase substantially. The domestic wastewater flow rates were determined in FS document by estimating the wastewater generation rate as 90 % of the supplied water excluding losses and the specific wastewater generation per capita as 176l/ca*day. Without a collection system and a wastewater treatment plant, the wastewater is mostly disposed either in ditches along the roads or in pits within the properties which causes public health problems, pollution of the aquifers by drainage from these pits and discharge of untreated wastewater to creeks. Consequently, the construction of a sewer system and a wastewater treatment plant for Agsu is one of the most important and urgent issues for the Republic of Azerbaijan.

6. 3. Water Supply and Waste Water system improvement

Different options for the improvement of the water supply system have been considered above. Project related environmental impact for the construction and operation phases are described in Chapter 5, and list of potential negative impact is given in the Table 5.1

In Agsu, the population of Muradlı and Tecile Villages are also taken into account for the design of the last 600 meters of the main sewer pipeline and the wastewater treatment plant only as a fixed flow entering the system.

Primarily, the situation of the existing sewerage system was evaluated in the FS Document for future use in order to decide weather complete/partial renewal or rehabilitation is necessary. Then, the system is formed either including the existing system or with a completely new system. The design of the wastewater

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collection system is accomplished according to the design criteria given in FS document. According to the topographical conditions, the primary aim is to establish a gravity system without pumping stations. However, if the depth of the wastewater collection system exceeds the practical and economical maximum level, which is also given in the design criteria, pumping stations has to be used.

Option 1: Rehabilitation and use of the existing waste water pipelines and wastewater treatment lagoon.

In Agsu Town there is no sewerage system. The only sewer line is the line of the hospital which was constructed in 1984. This line does not have the properties to convey the whole wastewater of the upper basin. The AZ Granata MMC is also constructing a Ø 400 pipeline passing from the west of the town, outside the residential area. Therefore, these two pipelines cannot be used in the planned sewerage system.

Option 2 (preferred alternative): Construction of new sewage system and waste water treatment plant.

Therefore it is explained in FS document that redesigning the entire wastewater collection system is the only option for Agsu. Because of this reason, the economical comparison of the wastewater collection system variants is not carried out. The wastewater collection system was first established as a model by the analysis of topographical maps with the support of satellite views. The main sewer pipelines and lines that can bury the main sewer pipeline deeper were solved in the first phase. Due to the topographic conditions sewerage collection by gravity is possible for Agsu.

Thus, no pumps will be needed which will minimize potential water spills. The selection of the location of the waste water treatment plant is determined by such factors as distance from the city, relevance for construction of the waste water treatment plant and is governed by the consideration that impacts on environment and human health should be minimal.

Taking into account the above difficulties for rehabilitation of existing waste water system and advantage of construction of new one, which is feasible from technical, economic and environmental point of view “Option 2: Construction of new sewage system and waste water treatment plant” is preferred. The size of the WWTP at the target year 2030 is 33,333 PE. The new WWTP will be provided with modern equipment which will ensure treatment of the waste waters in accordance with international standards (EU Directive 91/271/EEC requirements are given in Annex VI, VIII). The extended aeration system does not envisage use of heated septic reservoir and gas and, as such, will contribute to improved safety of operation. But according to the requirements of the AZERSU OJSC for all Water Supply, Waste Water Networks and Waste Water Treatment plants in Azerbaijan, will be single stage aeration with the sludge drying process equipped by Centrifugal Decanters.

Treated waste waters can be used for irrigation or discharged to Main Shirvan Collector by local drainage canal. It will be discharged on to a collector which runs into Girdimanchay. In order to decrease the pollution risk and protect the Girdimanchay as drinking water resource this new UWWTD’s sensitive areas design criteria for wastewater treatment will be applied. More people will get benefit from the hygienic living standards due to extension of service area. Additional nitrogen and phosphorous removal proses will contribute in keeping and improving existing water quality; increase in dissolved oxygen (DO) level which will contribute in to the aquatic life. Eutrophication which usually manifests itself as an increase in phyto-plankton concentrations to nuisance levels will be avoided by decreased nutrients such as nitrogen and phosphorus. Provide increase the income level of tourism, fishing.

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The execution of new design criteria for removal of nutrients will have additional benefits for the quality of water resources. The aquatic environment will be affected in positive manner due to increase in water quality due to removal of nutrients in wastewater. Instead of chlorination the implementation of UV disinfection will have positive effects on natural environment. Hence There will be no effects on fishes and algal organisms. The amount of sludge produced will be 11 m³/s and it will be used in agriculture.The sludge generated in the WWTW will be disposed of in accordance with the EU Directive, see Annex VI, VIII for the monitoring standards and requirements.

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7. PUBLIC CONSULTATIONS

This activity is aimed at informing of identified stakeholders and other interested parties of proposed project components, presents stakeholders with the opportunity to voice both their positive opinions and their concerns and to enable these issues to be addressed in the EIA and incorporated into the project design. This includes stakeholder consultation and technical analyses.

Stakeholder Consultations Stakeholder issues relevant to the EIA have been identified through a consultative process.. Stakeholder consultations have therefore been integral to the design of the EIA, and the issues identified through these consultations have been an important input into the identification of issues to be addressed by the EIA. All stakeholder consultations have been undertaken in Azeri. Where non-Azeri consultants have participated in consultations, their comments have been translated into Azeri in order to allow all discussions to be undertaken in Azeri.

Not all stakeholders have been involved in the consultations associated with project preparation. Accordingly, additional stakeholder consultations have been undertaken during this scoping phase for the specific purpose of identifying and clarifying issues, and particularly issues concerning those: · Who live near sites that are proposed for new WSS facilities · Who have specialist technical or scientific knowledge relevant to the proposed WSS system · Whose work is relevant to the proposed WSS system.

Section 4 presents details of the consultation process.

Technical Analysis While the issues identified by stakeholders are key to the overall presentation of issues in this document, they are limited to the extent that the knowledge of stakeholders concerning the new WSS system is limited. Thus, during the consultation process it has been clear that the ability of stakeholders to identify issues has, to a degree, been limited by their knowledge of modern WSS systems. Technical analysis has therefore been undertaken to determine whether there might be issues additional to those identified by stakeholders that should be addressed by the EIA, even though they might not have been identified by stakeholders, or may not have been prioritized by stakeholders. Technical analysis complements the stakeholder consultations. Table 1 identifies the stakeholders with whom consultations have been undertaken. As indicated in the Table, stakeholders fall into two categories: · Public stakeholders. These stakeholders are members of the public in general on whom the project may be anticipated to have an impact. At the broadest level, these stakeholders include all members of the public that will be served by the project, and who will benefit from it. However, some public stakeholders may be more greatly impacted by the project because they live in proximity to proposed project facilities. These stakeholders may be expected to identify a range of issues that is different to those that would be identified to other public stakeholders. · Special interest stakeholders. These stakeholders have interests in the project because they have either specialist knowledge relevant to the project or because their work in some way is relevant to, or is impacted by, the project. These stakeholders may identify issues relevant to the EIA as a result of either their work or their knowledge.

In this project, stakeholders are those affected by the proposed WSS facilities, and those who have the ability to influence, positively or negatively, the course and outcome of the project. The range of stakeholders relevant to this document is reflected in Table 1. The list of all stakeholders that have been consulted is provided in Annex A.

Table 1 identifies the consultation mechanisms selected to identify issues associated with the various stakeholders, and also identifies the status of the consultations.

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Technical meetings and interviews with staff from different local government units have been undertaken on an on-going basis. During the meetings, discussions were held on technical and managerial levels and an accurate picture about the current WSS system was developed, together with common understandings of options and issues associated with potential future actions. A clear picture was made about the rating of water management skills and the rate of satisfaction of the public about WSS services. The wishes and concerns of the residents were also raised during the meetings. In most cases and after the meeting a field visit was made to water intake facilities, pipelines locations, pumping stations, reservoirs and sewage facilities and information was obtained about the problems of each site.

Consultation and planning workshops were undertaken during the preparation of this document. As identified in Table 7.1, these included consultation with municipal and village councils, and with government agencies.

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Table 7.1 Stakeholders and Consultation Mechanism

STAKEHOLDERS CONSULTATION MECHANISM STATUS OF CONSULTATION Public Stakeholders Affected People Interviews with affected Interviews have been conducted as people part of EIA study in communities where new water intake facilities, pipelines, pumping stations, reservoirs and treatment facilities will be located Wider Community Information to be supplied to Meetings have been conducted with the media and the general the representatives of local radio public to be invited to submit and newspapers during which they comments. received needed information, which was later spread by them in their news canals, including newspapers and radios Community Leaders Interviews of directly affected Workshops held; interview communities; meetings with conducted in communities where community leaders new reservoirs and treatment facilities will be located; meetings held with community leaders Special Interest Stakeholders Non-Governmental organizations Round Table meeting Round Table meeting and Scoping Scoping Workshop Workshop held Municipalities and Village Councils Technical meetings, Consultation and planning Consultation and Planning workshops held Workshops Media Media relations strategy Representatives of media have been required involved into EIA process. They participated in discussions, public meeting and spread obtained materials through their publication in local newspaper and also via local radio Academics and Researchers Round Table meeting, Scoping Meeting and Scoping Workshop Workshop held Government Ministries/Agencies Consultation and Planning Consultation and Planning Workshops Workshops held; Round Table Round Table Meeting Meeting held Private sector Meetings with representatives Meetings with representatives of of relevant sectors/companies relevant sectors/companies held

International Organizations/Donors Consultation and Consultation and Round Table Round Table meeting Meeting held

A Scoping Workshop was conducted on 12 June, 2010 and attended by 30 participants representing different institutions. During that session the findings of previous consultations (by Gaugg-Temelsu) were presented and additional comments and suggestions were received.

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The following areas of Agsu city and nearby communities (Qaraqacli, , Pirhasanli, Navahi, Ulguclu, Dashdamirbayli villages) adjacent to the proposed facilities have been identified to be affected by project. The communities to be directly affected by the project activities are listed in Table 7.2.

Table7. 2 Communities Adjacent to the Proposed Project Facilities: Agsu Rayon

Community Location Population Qaraqacli village Adjacent to the proposed reservoirs 1000 and Water supply pipes Agsu city Adjacent to a proposed water supply 21400 and sanitation system Pirhasanli village Adjacent to a proposed water supply 1640 pipes Navahi village Adjacent to a proposed water supply 100 pipes Ulgucli Adjacent to a proposed water supply 600 pipes Dashdamirbayli Adjacent to a proposed water supply pipes

All interviews were conducted in 14 June 2005 in Agsu city and the nearby communities adjacent to the proposed facilities.

During the selection of the population sample for interview purposes, consideration was given to the economic situation of the family, and to the distance to the facilities to be constructed. The objectives of the surveys were to: · Share information about the project and the proposed construction work. · Identify important interests and concerns at the local level. · Identify potentially affected individuals, groups and publics. · Identify community concerns about the construction work. · Understand the values about the environment held by individuals/groups that might be affected by the project.

Meetings with municipality members in these communities were also carried out, as possible, to understand concerns and issues that they may have.

a. PRINCIPAL ISSUES

The principal concerns raised during the consultation process were: · Potential for odor, insects, dust and noise impacts from site activities; · Compensation measures to be taken by the Authorities for temporary loss of land in productive use; · Reduction in local property values; · Impacts on ground and surface water; · Limitations for expansion of villages in the future; and · Aesthetic distortion (e.g. visual impacts).

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These issues were highlighted by most of the people interviewed. Other issues that were highlighted during the consultations include: · Training and public awareness; · Financial sustainability; · Detection and control of hazardous waste waters; · Waste water collection, treatment, utilization or discharge to the sea; · Health and safety; · Social and economic impacts; and · Compensation of directly affected communities through the project itself by incentives.

As indicated above, the project team has considered the issues that have been raised during the consultations and has assessed the identified issues in the context of the overall scope of the proposed project. The purpose of this assessment has been to determine whether there are additional issues that should be considered by the EIA even though they may not have been specifically identified by stakeholders during the consultations. As a result of this assessment, it has been concluded that in addition to the potential impacts identified through the consultations, the EIA study should also address review of the potential positive and negative impacts associated with the proposed project on: · Land use; · Cultural heritage; · Traffic · Public health; · Local employment; and · General issues associated with sitting of treatment plant

The stakeholders support the proposed WSS project. The issues raised by the stakeholders are reasonable concerns that should be addressed by the EIA study, and the recommendations of the EIA study should be integrated into the design of project implementation. However, as identified above, stakeholder knowledge of potential positive and negative impacts associated with the project is incomplete and issues additional to those identified by the stakeholders should be considered by the EIA.

Stakeholder Meeting in Agsu Rayon

The meeting in Agsu took place on June 11 2010 and was chaired by Mr. Igbal Mikayilov, Deputy on socio-economic problems of the head of district execute authority, Head of Rayon Commission on WSS project implementation. The agenda of the meeting included brief welcoming speech by the Head of the Commission (Mr. Igbal Mikayilov) and Representative of PCU (Mr. Panah Abdullayev). They informed attendants about the aim and importance of the realization of the project. In his opening speech, Mr. Mikayilov informed attendants that this project shouldn’t have significant negative environmental impacts, but that it is directed at improvement of the environment in the rayon.

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Figure 6.1. Presenting of WSS project during public consultation meeting in Agsu

Then Rafig Verdiyev, representative of Eptisa, and Prof. Farda Imanov, Representative of Hydrometeorology Consulting Company, informed participants about the aim of the Environmental and Social Impact Assessment process and issues to be discussed in this regard during the project implementation. Participants then requested to participate actively in discussions and identify their suggestions to be included into list of issues of environmental and social concern and taken into consideration and included, as appropriate, in the Environment Management Plans to minimize negative project impacts.

Participants expressed their full support for this project.

The first question was when the project will start and end. It was noted that project will be implemented during 18 months and the tender is expected to start by the end of 2010.

Mr. Alihuseyn Mayilov informed that drinking and irrigiaton water in Agsu is provided by waters taken from Agsu and Girdimanchay rivers. He expressed that if the proposed spring waters (which now flow into Agsu river) will be taken for drinking water supply then in summer months when Agsu river is almost dry there will be a water scarcity problem and in low flow periods this will create a problem for water supply in other villages. He recommended the construction of small reservoir to regulate the flow near the Mugan bridge over Agsu river at some distance from river and which would be designed to have enough capacity to supply water for mentioned villages as well. He was informed that this issue will be taken into consideration in the project design

Mr. Khanlar Huseynov informed that in 1990’s money was allocated for construction of Agsu sewage system. It was agreed and some 4ha land was allocated for a treatment plant near Muradli village below Shirvan canal. He asked if that idea will be used now. He also proposed to discharge treated waste waters to collector not to Agsu river, because the river is used for drinking purposes.

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Figure 6.2. Discussions during public consultation meeting in Agsu

The response was yes, sewage water will be treated there and from there discharged to small salty water collector and then into Shirvan collector. It will not be discharged into Agsu river. Jamil Huseynov informed that residential areas of left side of the river also will be connected to central sewage system located at right side.

Another issue of discussion was about rehabilitation of treatment of waste waters of the city Hospital. Mr. Javadov Javan informed that the hospital does not have the required amount of money to rehabilitate its sewage system. Sewage waters enter into a city gutter passing through residential area and some families water their garden with that water. It was noted that there is no need for rehabilitation of the hospital sewage system as the hospital and other enterprises, including the winery, will be connected to the new sewage system.

Mr. Sardar Bayramov informed participants that streets are narrow for construction of sewage system .This work should be carried out carefully. He also said that first treatment facility should be constructed to allow entering sewage waters to be treated before their discharging.

Javan Javadov also told that project should consider expenses for connecting of water and sewage system to individual households as people themselves can’t afford it.

Jamaladdin Zeynalov said that if we don’t replace all pipelines then a high pressure will destroy them. Response was that all distribution pipelines will be replaced with new one.

Javan Javadov also informed that in Vidiadi and Nizami streets Qaraqacli village’s water pipelines are under constructed buildings. He asked how they will be replaced. The response was that they won’t be replaced; instead new pipelines will be constructed and placed under the streets.

Mr. Sardar Bayramov asked if other residential areas will also be connected to the WSS system. The response was that in addition to Agsu city Qaraqacli (around 1000 residents), Pirhasanli (around 1200

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residents), Navahi (around 100 residents), Ulguclu (around 600 residents), and Dashdamirbayli villages will also be connected to WSS system. As result areas of Agsu city and near located communities adjacent to the proposed facilities have been identified to be affected by project. Representatives of the population of these communities have been interviewed.

As result areas of Agsu city and near located communities adjacent to the proposed facilities have been identified to be affected by project. Representatives of the population of these communities have been interviewed.

The list of participants of public consultation meeting on Agsu rayon WSS project, hold on June 11 2010 is given in ANNEX IX.

Information on public discussion of the draft EIA report for Agsu WSS project s was held on October 22 2010, See Annex X)

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8. ENVIRONMENTAL MANAGEMENT PLAN From the above description of environmental impacts the list of key aspects associated with the Project activities is identified and described in Table 8-1 below.

Table 8-1 Environmental Aspects

Project Component Environmental Aspects Construction Temporary removal of habitat for sewer pipeline construction Renovation and construction of existing steel water delivery mains Potential polluted run-off and spillage of untreated wastewater during sewer renovation Pedestrian, vehicle and community safety Procurement and delivery of construction materials Use, maintenance and repair of equipment and machinery Air and noise pollution from preparation of construction Materials such as bitumen, asphalt and concrete. Extraction/purchase of sands and gravels for earthworks Construction yard for equipment and machinery Waste and hazardous materials management Construction of new reservoirs for water supply Service disruption (electricity, telecoms, water) Disruption to irrigation and drainage infrastructure Soil management issues during pipe laying Construction of new WWTP works on a new site Operation Operation of the water and wastewater networks Sludge disposal Community safety Induced development Air and noise quality Use of maintenance machinery and equipment Storm water management Wastewater discharge Accidental (Non- Spills and leaks Routine) Events Inappropriate waste or sludge disposal Sewer flushing due to blockage

These aspects and proposed mitigation measures are discussed below.

GEOLOGY AND SOILS Construction phase

Hazardous material Spills of fuel, oil and other liquids have the potential to cause contamination of soil and groundwater. The Contractor shall implement measures to contain such spills and avoid contamination as much as possible. However, it is possible that some contamination may occur and the Contractor will be required to implement remediation measures in accordance with project and national requirements.

Soil erosion The area is susceptible to surface erosion, especially after heavy rain, therefore efforts will be made to reduce the potential for soil erosion during construction activities. Temporary berms will be constructed where necessary to control any run-off to prevents rills or gulleys forming or soil wash out to surface water

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features. Correct ground works and compaction will be specified in the contract documentation to prevent soil erosion.

Waste management Inert, solid waste (metals, asphalt chunks, rocks, concrete, gravel, sand and etc.) will be generated during drilling well and pipeline installation operations. The replacement and installation of water distribution pipes in the town will include removal of asphalt surface and importation of suitable padding and backfill (e.g. sand) as well as backfilling using suitable excavated material. Repair of paved roads and walkways and asphalt surfaces will also be required.

Solid wastes generated in construction sites and during the construction of pipelines and sewer drains will be transported by the construction contractor. Transportation and disposal of such waste will be agreed with the local executive authority and regional department of MENR, as necessary.

The construction works will generate hazardous waste, such as used oils, solvents and other construction waste, which will be required to be disposed of. However, there is no licensed hazardous waste disposal facility in the region (and in fact this is a problem nationally) and therefore it will be necessary to arrange an appropriate containment or disposal place in agreement with MENR and the regional officials. The EMP allows for the cost of this item and it can be managed by the municipality, as per the agreement with Amelioration JSC.

Parts of the existing water supply and sanitation network may have been constructed using asbestos containing material (ACM), which will require careful handling during its removal. Measures compliant to good health and safety practice will need to be employed, including appropriate PPE for workers, dampening down of any material that may be abraded or otherwise generate potentially inhalable dust particles and appropriate containment prior to its storage at an approved/agreed secure facility.

A construction yard needs to be created, for laydown of plant and material, maintenance of machinery and prefabrication of infrastructure components. All construction sites will be managed as follows:

• Boundaries of construction sites will be marked beforehand and signs will be erected warning people not to enter or dump garbage; • Metal wastes will be collected and taken to metal processing companies; • Construction debris (sand, soil, rocks) will be re-used as an additional material for filling deep trenches when needed and where suitable. If not needed, they will be taken to city dumping-grounds, as agreed with local environmental/planning authorities; • Removed asphalt debris will be taken to bitumen factories for recycling, egg at the asphalt plant • Speed limits will be set for all trucks operating within the town; this will be important for those transporting waste.

Operational phase No adverse effects are anticipated as a result of normal operations, as the wastewater will be treated to EU standards prior to its discharge, which is a distinct improvement from the current situation, which sees no functioning wastewater treatment. Discussions are ongoing regarding the treatment of the final effluent, as under the Soviet system, chlorination of effluent (for disinfection) was the norm. However, disinfection is not the norm in Europe and in fact the addition of chlorine is a biological hazard to the aquatic ecosystems to which the effluent will be discharged. It would be preferable to use ultraviolet (UV) radiation or rely on natural exposure to UV to reduce bacteria loadings in the final effluent. The recommendation to use UV has been made strongly in this EIA and also in discussions with Amelioration JSC, who are very supportive of this approach and the intention is to implement this.

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AIR QUALITY Construction phase It will be the responsibility of the construction management to schedule construction activities and to apply best practices for dust control, to minimize occurrences of excessive dust concentrations in sensitive neighboring areas and at the worksite. It will be the responsibility of the construction management to apply best practices for reducing fuel consumption and exhaust emissions, wherever feasible. Aspects such as a reduction of idle driving, selection of new equipment where possible and maintenance of all machinery and engines should be encouraged. Operational phase Adverse air quality effects are not predicted during operation, due to the nature of the project. All machinery will either be new and/or will be maintained according to the manufacturer’s service programme. Furthermore, significant noxious odours are only typically generated from a WWTP in the vicinity of pumping operations, where an aerosol effect is produced or when sewage has gone septic due to operational problems. All the main potential locations where noxious odor could be generated will be housed and ventilated. In addition, there are no sensitive receptors nearby to the operating facility, which is located at the edge of town well away from residential areas.

NOISE Construction phase The nature and extent of the works, particularly those involving replacement of the water distribution system will result in noise and disturbance to local residents. Amelioraion JSC will ensure that the contractor minimizes disruption and noise, by inter alia, liaising with residents. It must also be noted that the residents are supportive of the project, as it will result in provision of a reliable, constant water supply and will therefore generally be tolerant of disruption to some extent. According to the Azerbaijan standards allowable noise level should be 65 dBA in daytime; and 45 dBA at night-time, which is close to the international standards. Mitigation There are three ways to reduce noise emissions: mitigation at the source, mitigation along the path and mitigation at the receptor. The following examples of construction noise mitigation methods could be considered during planning of the works and are expected to be a source of guidance to the contractors. In many cases, the magnitude of the dB reduction can first be ascertained when construction work has begun and measurements can be made. Source controls In general, source controls are the most effective method of mitigating noise. The impact of a noise source is reduced before it emits offensive noise levels. Operational phase Negligible operational noise is anticipated, as the pumping stations will be housed within buildings and the new WWTP is situated far away from residential housing in a fenced compound and is designed to emit limited noise.

ECOLOGY AND PROTECTED AREAS Construction phase The main potential effects on ecology are associated with water intake; the associated access road upgrade; construction of the new pipeline route water supply to the town; construction of the new reservoirs themselves; and construction of the interceptor and new WWTP

The offtake and reservoir construction work will have to be carefully designed during the detailed design phase to avoid damage to the riparian habitat.

The widening of the access road may affect habitats associated, however nothing particularly rare or unusual is anticipated due to the disturbed nature of the general location, which was until recent years well populated and farmed by some crops. The work will need to be undertaken carefully, with good planning (in the detailed design stage) to conserve topsoil; reduce encroachment and damage to features such as tree roots; avoid water pollution; avoid

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erosion and soil or material run-off; and ensure good reinstatement. Full adherence to good site practice should be ensured, as well as storage and handling of fuels and oils to avoid contamination. Protected areas

There are no protected areas potentially affected by the project, although to the north- east of Agsu rayon Piqulu State reserve exists (see Figure 8.1).

Figure 8.1. Protected area map Operational phase The receiving watercourses and groundwaters currently adversely affected by polluting untreated wastewaters will be expected to improve considerably and can be expected to see improvements as nutrient and bacteria levels significantly reduce.

SURFACE AND GROUND WATER Construction phase Many of the risks to surface and groundwater are similar to those already covered under the soils section above and are therefore not repeated here. Due to the nature of the works there is the potential for spillage of wastewater to ground or watercourse, which is generally poorly treated or untreated and could also lead to the spread of disease to workers or local residents. In addition, the wastewater from existing pipelines and sumps will require to be purged. Likely options are to either empty the wastewater into temporary excavated pits and then remove the material by suction into septic tanks on sewer trucks or continue to use soakaways until connections to the sewer area made.

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Mitigation Fuel and oil storage Fuel and oil storage tanks will not be located within 50m of any watercourse, well or dry river bed. Certain plant and equipment may be required to be maintained in a position closer than 50m from the water course (and are not able to be relocated just for refuelling) and therefore special measures will be implemented to avoid spillage of fuels and oils, such as deployment of spill-retaining materials, mobile drip trays and the like ad specific training given to operators in this regard. Areas for road tanker parking and delivery shall be hard surfaced (concrete) and drained to an interceptor. Discharge of rainwater and waste from these areas will be via a treatment system designed to meet the water discharge standards. At each site where diesel is delivered and stored, spillage equipment shall be installed to contain any spillage during loading. Specific drainage requirements, which include oil interceptors, will be put in place at facilities where diesel is stored and used.

All fuel storage areas will be securely fenced and locked to prevent unauthorised access. Only Refuelling Operators will be allowed to dispense fuel as set out below. All fuel storage areas will be equipped with an adequate supply of spill containment materials. Exceptions to the above are to be made for smaller fuel equipment. Generators will be self-bunded and will have an integral fuel tank. Refuelling will be undertaken as per the procedures below. Refuelling will be carried out by the nominated Refuelling Operators who will be specifically trained in the relevant procedures. Upon arriving at the refuelling areas, the Refuelling Operators will dispense the required fuel. Drip Trays The use of integral drip trays for generators, tanks and other fixed plant will be will be encouraged throughout the project. Individual drip trays will be necessary for temporary secondary containment of materials. Storage and Use of Chemicals All chemicals will be stored in designated, locked storage areas, taking care to ensure segregation of potentially reactive substance (e.g. flammables should not be stored with toxic substances). These areas will have an enclosed drainage system/bund to avoid contamination. Material Safety Data Sheets (MSDS) will be provided for all substances and used in project health and safety assessments. Efforts will be made to avoid and minimise the use of hazardous chemicals during construction where possible. Operational phase The average flow rate in Baku 1 and Baku 2 canals is 4000l/s. With water intake to be 64.6 l/s, no adverse impact is envisaged on the operation of the canals, other users and the original water source (Shollar springs).

An improved situation in the receiving watercourses and adjacent wetlands currently adversely affected by polluting untreated wastewaters is expected.

Groundwater impacts The water resources in the project area include groundwater, which can be expected to benefit from the reduction in discharge of untreated wastewater.

SOCIAL – CULTURAL ENVIRONMENT Construction phase The main effects on the local community during construction are associated with the considerable disruption that the works will have within the town through excavation of defunct infrastructure and installation of new water mains and sewer pipes in the roads and connection of water supply pipes and water meters to individual properties. The proximity of the works to residents also raises the issue of health and safety, as well as traffic disruption and interference with access to houses, work places and public buildings such as hospitals and schools.

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There may be land acquisition issues associated with construction of the service reservoirs and the connecting pipelines, as the infrastructure may cross parcels of privately owned land. Potential land issues may arise due to permanent restrictions on land use above any buried pipeline or due to temporary occupation of land during construction. These aspects will all be considered during the detailed design and the contractor will be made fully aware of the RPF and RAP policies. The RAP will be developed by Amelioration JSC once the details of the resettlement aspects are known.

Mitigation Safety at the work site, both for workers and residents has been discussed at length with Amelioration JSC, who will ensure that contractors develop and implement safe working practices. The construction contractor will train its personnel on safety, environment and quality control, as well as implementation of all the safety rules. Works will be guided by existing laws, sanitary rules and Amelioration JSC work manuals.

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

• Health and safety training will be conducted as part of project induction for all workers; • All personnel will be supplied with special coveralls and the minimum PPE; • 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.

As referenced earlier, impacts on people and their economic activity, public transport and agricultural activities during construction phase are possible. Construction sites will be divided into sections, works will be planned according to a schedule prepared beforehand and 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.

Furthermore, discussions have been held with Amelioration JSC regarding the need to keep residents informed of planned activities, but also to be receptive to their requirements. Thus contractors will be required to develop a traffic management plan in consultation with Amelioration JSC and the municipality and to discuss this at a public meeting prior to start of the works. This should ensure that disruption of residents is minimized and works are co-ordinated to limit impeded access.

Work with asbestos The International Labor Organization (ILO) established an Asbestos Convention (C162) in 1986 to promote national laws and regulations for the “prevention and control of, and protection of workers against, health hazards due to occupational exposure to asbestos. The convention outlines aspects of best practice: Scope and Definitions, General Principles, Protective and Preventive Measures, Surveillance of the Working Environment, and Workers’ Health. Some of the ILO asbestos convention requirements:

· Work clothing to be provided by employers; · Double changing rooms and wash facilities to prevent dust from going home on street clothes; · Training of workers about the health hazards to themselves and their families; · Periodic medical examinations of workers, · Periodic air monitoring of the work environment, with records retained for 30 years; · Development of a work plan prior to demolition work, to protect workers and provide for proper waste disposal; and · Protection from “retaliatory and disciplinary measures” of workers who remove themselves from work that they are justified in believing presents a serious danger to health.

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8.1 Implementation of Mitigation Measures This section of the report further elaborates on the mitigation measures to address the potential negative environmental impacts. The impacts, proposed measures and institutional responsibilities are summarized and tabulated in the environmental management plan (EMP) in Table8.2. It outlines the management mechanisms (i.e. working arrangements) for how the environmental and social elements of the project will be managed from detailed design and construction through operation.

The EMP contains environmental requirements which are required for the successful implementation of mitigation measures, environmental monitoring, emergency measures and environmental auditing to be carried out during the construction works on the site. The implementation of mitigation measures and emergency measures shall be the responsibility of the Contractor. The Contractor will ensure compliance with all environmental legislation, regulations and conventions. The responsibility for environmental monitoring lies with the Amelioration JSC and the World Bank.

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Table 8.4 Potential Main Environmental Impacts and Mitigation Measures

Environme Estimated Cost Of Responsibilit Monitoring nt Or Impact Mitigation y Stage Potential Impacts Impact Mitigation Measures Social Measures Component Dust, gases/aerosol Dust prevention by watering and other Provision of water: associated with means; $10,000 Contractor Supervisor/ construction (toxic gasses Transportation of grainy or dusty materials Amelioration JSC discharged by in the top-coated trucks; No cost for other measures construction machineries, Watering of dust sources; provided they are windblown construction Transportation of dust producing materials integrated into normal materials etc.) during calm days (not in the windy days); operating procedures Avoid making open fires; Air quality Avoid setting fire on residue grease, isolation materials, and other substances; Efficient use of machinery and other technologies; Application of adequate construction Constructi methodologies and facilities; on Careful implementation of works in vulnerable areas. Waste pollution, Protection of the surroundings of the Provision of materials and especially wastes caused construction site; cover to prevent landslide Contractor Supervisor/ by construction and Limited works in the vulnerable zones; risks: $10,000 Amelioration JSC domestic activities; Identify adequate areas to store residue Material storage, civil materials, and transportation of all Traffic management Earth works and other impacts; construction related effluent materials into signage: $5,000 Landfill of wastes and the predetermined site; other materials; Control of erosion process; No cost for other measures Impacts of excavation Provide earth stabilization/green cover over provided they are works; vertical points and slopes to minimize land integrated into normal Possibility of erosion; slide risks; operating procedures

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Environme Estimated Cost Of Responsibilit Monitoring nt Or Impact Mitigation y Stage Potential Impacts Impact Mitigation Measures Social Measures Component Wastewater. Prevent discharge of excavated material to the river beds or lakes; Avoid unwanted traffic blockage, collect excavated spoil material and discharge somewhere close to the construction site; Discharge wastewater flows to the closest sewage line, installation of toilets and septic tanks. Damage to the topsoil Adequate design works and selection of Proper storage of toxic resulting from material proper route to minimize impact on the materials/effluents: Contractor Supervisor/ storage, excavation topsoil; $12,500 Amelioration JSC works, temporary roads Usage of excavated soil material for the etc. agriculture purposes; Measures against Loss of topsoil during Cut, store and restore topsoil where landslides addressed above excavation; possible after the completion of the Flushing of topsoil and construction works; No cost for other measures soil erosion due to Discharge of materials to the provided they are polluted water streams; predetermined areas by secondary routs; integrated into normal Topsoil Measures against land slides operating procedures. Storage of toxic materials and effluents in the safe and predetermined areas, its provision with drainage waters, and processing where necessary; Standards applied, including soil erosion prevention by good soil practice and drainage control. Good soil conservation measures and effective reins to prevent future erosion and soil loss.

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Environme Estimated Cost Of Responsibilit Monitoring nt Or Impact Mitigation y Stage Potential Impacts Impact Mitigation Measures Social Measures Component Pollution of surface and No cost for identified groundwater sources due Avoid discharge of harmful chemical measures provided they are Contractor Supervisor/ to domestic and substances into sewage lines or ground integrated into normal Amelioration JSC construction effluents, surface; operating procedures including harmful Design and operation of natural drainage residues, leakage of fuel and consideration for alternative directions; and other oil related Discharge wastewater flows to the closest products; sewage line, installation of toilets and Water Blockage of surface and septic tanks. resources groundwater filtration Required standards applied, including safe and waste and creation of stagnant removal of wastewater during renovation waters water accumulations. works, use of appropriate equipment by Water scarcity problems workers and ongoing liaison with residents in low flow periods of the and fencing off contaminated areas. year in low flow periods of the year connected with project and increase of water supply problem for other users which use the same sources Disturbance due to noise Use of adequate construction materials and No cost for identified generated from equipment; measures provided they are Contractor Supervisor/ construction works and Adherence to predetermined work schedule integrated into normal Amelioration JSC intensive traffic to minimize disturbance and operating procedures implementation of noise generating works Constructi during normal work hours; Noise on Minimum use of noise generating equipment (example, stone cutters, compressors); Minimize traffic during dark hours, and use of silencers.

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Environme Estimated Cost Of Responsibilit Monitoring nt Or Impact Mitigation y Stage Potential Impacts Impact Mitigation Measures Social Measures Component Disturbance of the natural Adequate storage, processing or liquidation No cost for identified habitat due to of wastes; measures provided they are Contractor Supervisor/ construction related Application of relevant construction and integrated into normal Amelioration JSC noise, dust, non-seasonal seasonal work methodologies; operating procedures Natural works, unprocessed Protection of vulnerable areas located close habitat residues and etc. to the construction site. Loss of natural settlement areas due to construction works. Earthworks, operation of Adequate storage, processing or liquidation Storage, processing, machines, noise and etc.; of wastes; liquidation of wastes Contractor Supervisor/ Losses or degradations Protection of vulnerable areas located close addressed above Amelioration JSC during and after to the construction site; Flora and construction works, non- Application of seasonal work No cost for other measures fauna seasonal works, change methodologies where necessary. provided they are of ecological situation integrated into normal etc. operating procedures.

Impact of works on Careful design and location of works; Restoration/planting of landscape and Restoration of damaged trees, protection greenery: $50,000 Contractor Supervisor/ disturbance to natural lines and etc.; Amelioration JSC Aesthetics sights, greenness and Planting of greenery in the construction No cost for remaining and trees; site, careful implementation of works in the measures provided they are landscape Noise, dust, residue and work sites, and management of wastes. integrated into normal Constructi etc. during and after operating procedures. on construction.

Damage to agricultural Liaise effectively with relevant lands, including drainage organizations and residents before start of No cost for identified Contractor Supervisor/ Agriculture and irrigation construction, maintain dialogue, develop a measures provided they are Amelioration JSC infrastructure. grievance procedure, strictly control integrated into normal operating procedures.

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Environme Estimated Cost Of Responsibilit Monitoring nt Or Impact Mitigation y Stage Potential Impacts Impact Mitigation Measures Social Measures Component machinery and vehicle access and reinstate all affected areas Livestock resources Liaise effectively with farmers and damaged by machinery residents before start of construction, No cost for identified Contractor Supervisor/ and vehicles. maintain dialogue, develop a grievance measures provided they are Amelioration JSC Livestock procedure, strictly control machinery and integrated into normal vehicle access and reinstate all affected operating procedures. areas Health risks from Planning of measures dealing with security Trainings: $25,000 unprocessed wastes; and environmental protection issues; Contractor Supervisor/ Use of harmful Adherence to project standards, good No cost for identified Amelioration JSC substances (paints with signage, ongoing consultation with measures provided they are heavy metal, lead residents, including schools. All workers to integrated into normal Health and compositions), asbestos- use appropriate PPE and be trained at operating procedures. safety of cement slabs, project induction. Safety fencing provided. residents inflammable and toxic Organization and implementation of and workers materials etc.). security and safety related trainings; Construction of warehouse Management of materials in accordance for temporal storage of with the relevant ecological and sanitary- hazardous wastes: $50,000 hygiene norms; Identification of dangerous sites, proper storage/liquidation of waste materials. Damage to areas of There are no areas of historic/cultural value No cost for identified Areas of historical and cultural to be affected by project. But if it appears measures provided they are Contractor Supervisor/ historical value located in the relevant measures need to be taken integrated into normal Amelioration JSC and project area Staff awareness; operating procedures cultural Inform adequate organizations in case of value archeological findings; Temporary termination of works.

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Environme Estimated Cost Of Responsibilit Monitoring nt Or Impact Mitigation y Stage Potential Impacts Impact Mitigation Measures Social Measures Component Loss of property, land There no need for resettlement. Costs for resettlement (if and damage to living For areas where lands used for agricultural any) to be negotiated by Contractor Supervisor/ Resettleme areas of population crop production relevant plans need to be project owner in Amelioration JSC nt prepared, which includes provision of accordance with relevant Land replacement lands or compensation for lost legislation, contractual acquisition access to plots of arable land and lost fruit agreement or other or nut trees. documents. Quality of treated water Operation supervision of treatment No cost for identified More people will get facilities in due accordance with the measures provided they are Contractor Supervisor/ benefit from the hygienic operation guidelines; integrated into normal Amelioration JSC living standards due to Quality control of water flows entering the operating procedures extension of service area system; Risks to Avoid pollution of treated waters with the human wastewater flows; health and Avoid over-chlorination of water flows Operatio environme supplied to the consumers. ns nt Breakages and There is need to develop scheduled Training cost identified (potable emergency situations preventative maintenance below Contractor Supervisor/ water Training of staff on safety and human No cost for remaining Amelioration JSC systems) security issues; measures provided they are Measures to avoid leakage of chlorine gas. integrated into normal operating procedures Reduction of treated Prevent illegal connections to the system; No cost for remaining water quantities Proper operation of the system including measures provided they are Contractor Supervisor/ Social- water treatment, pipelines, connection lines integrated into normal Amelioration JSC economical and etc. operating procedure Ensure an affordable tariff structure and proper collection of fees. Quality of wastewater Constant monitoring of wastewater flows Monitoring of downstream and its impacts on human coming out of the wastewater treatment environmental quality: Contractor Supervisor/ Operatio Risks to health and environment plant; $12,500 one time every 2 Amelioration JSC ns human years for 20 years

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Environme Estimated Cost Of Responsibilit Monitoring nt Or Impact Mitigation y Stage Potential Impacts Impact Mitigation Measures Social Measures Component (sewage health and Additional nitrogen and Discharge of wastewater into the and environme phosphorous removal environment only after adequate treatment; No cost for remaining wastewat ntal proses will: Training of operation staff for their measures provided they are er) impacts Contribute in keeping and qualification raising; integrated into normal improving existing water Monitoring of downstream habitats to operating procedures quality, evaluate the extent to which they return to Increase in dissolved their previously unpolluted state. oxygen (DO) level which will contribute in to the aquatic life. Eutrophication which usually manifests itself as an increase in phyto- plankton concentrations to nuisance levels will be avoided by decreased nutrients such as nitrogen and phosphorus. Provide the income level of tourism, fishing. The execution of new design criteria for removal of nutrients will have additional benefits for the quality of water resources. The aquatic environment will be affected in positive manner due to increase in water quality by means of removal of nutrients in wastewater.

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Environme Estimated Cost Of Responsibilit Monitoring nt Or Impact Mitigation y Stage Potential Impacts Impact Mitigation Measures Social Measures Component Instead of chlorination implementation UV disinfection will have positive effects on natural environment. Hence There will be no effects on fishes and algal organisms.

Quality of sediments in Adequate processing of sludge; Monitoring of sludge the treatment structures Monitoring of nematodes, coliforms and quality: $10,000/year Contractor Supervisor/ (sludge), risks due to heavy metals in the composition of output Transportation of sludge Amelioration JSC agricultural consumption sludge; $10,000/year of these wastes. Transportation of sludge in the closed Decrease in use of area containers; Training cost identified for sludge drying will Training of operation staff for their below lessen demand to the land qualification raising. use. Training In application of sludge, and The envisaged process monitoring of sludge application type of sludge production has increased the possibility of use of sludge in agricultural areas. Smell generations in the Planning and management of smell Odour masking agents: wastewater treatment mitigation; $US 5,000/year Contractor Supervisor/ structure; Tight shutting of smell producing Amelioration JSC equipment and containers. No cost for remaining measures provided they are integrated into normal operating procedures

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Environme Estimated Cost Of Responsibilit Monitoring nt Or Impact Mitigation y Stage Potential Impacts Impact Mitigation Measures Social Measures Component Risks to human health Use of authorized sites for non-hazardous Training: $25,000 in first Safe storage waste disposal; support and arrangements year; $5,000/year in each Contractor Supervisor/ of for setting facilities for hazardous waste following year Amelioration JSC hazardous safe storage and non- No cost for identified hazardous measures provided they are Operation wastes integrated into normal s operating procedures (potable Risks to health of Training of staff on safety and human water, residents and workers and security issues; Contractor Supervisor/ sewage to the environment Training of staff on sanitary and hygiene Amelioration JSC and rules to prevent infections from wastewater wastewate discharges and sludge residues; r) Human Provide staff with adequate protection health uniforms and facilities; Measures to prevent emergency situations such as leakage of chlorine gas. Monitoring of drinking water and wastewater quality Note: All mitigation measures identified in this Table should be specified in all bidding documents (Bill of Quantities) and contracts for construction and operation of the project, and should also be including in all manuals or operating procedures that are developed.

In total around 200000 USD need to be allocated to implement main mitigation measures.

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The Contractor will be contractually required to conform to the requirements specified in the EIA and EMP and will be accountable to Amelioration JSC, as the client, through its Project Implementation Unit (PIU). It is recommended (as agreed with Amelioration JSC) that the PIU is supported in achieving project environmental and social safeguard objectives by support from an environmental consultant included into the staff of construction Supervisory Body. The precise details have not yet been determined, but the consultant will advise and support the PIU in implementation of the EIA standards during construction and into operation. Furthermore, local Bank staff will work with the consultant and the PIU during development of the environmental plans.

There are several mechanisms of ensuring delivery during construction of both general and site specific mitigation developed in EIAs. One mechanism favored for the project involves requiring the Contractor to further develop the outline requirements in an EMP by designing individual Management Plans, such as oil and fuel storage, waste management, traffic management and pollution prevention.

This approach for each individual scheme will benefit from oversight by the PIU to form a set of environmental requirements applicable to the project as a whole, which will ensure compliance of the work to both national and Bank standards. Such measures will be mandated in the bidding and contract documents, so that an overall good standard of work is achieved. This approach also has benefits of institutional capacity training, as the knowledge and capability of Amelioration JSC will be extended to effective environmental management and as each scheme comes on stream the PIU will benefit from knowledge gained on previous schemes. Main elements of the Specific Management Plans are given in able 8.3

Table 8.3 List of Specific Management Plans

Specific Outline of Content Management Plan Waste Measures to reduce, handle, separate, store and dispose waste from Management operations and work sites. Requirements for monitoring, recording, inspection and reporting. Instructions for the storage and handling of various types of hazardous materials. Waste Water Measures to control, collect, treat or reuse wastewater from various Management sources to avoid pollution. Air Quality Measures to reduce and control air emission from various sources. Control Requirements for monitoring, recording, inspection and reporting.

Dust Control Measures to reduce and control dust emissions from roads, work sites and construction activities. Requirements for monitoring, recording, inspection and reporting. Noise and Measures to reduce and control noise and vibrations generated by Vibration Control plant at all work sites and from transport activities. Requirements for monitoring, recording, inspection and reporting. Traffic Procedures for minimizing disruption to traffic and access, Management especially for public buildings such as hospitals and schools. Emergency Procedures for response to a range of incidents and emergencies. Response Requirements for monitoring, recording, inspection and reporting.

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Specific Outline of Content Management Plan Archaeology and Measures to reduce adverse impacts on cultural heritage during Cultural Heritage construction. If any late finds are made measures must be taken to ensure ‘conservation’ in accordance with legislation. Oil and fuel Specification for storage of all oils and fuels (secondary storage and containment etc.) and procedures for refuelling vehicles, plant and refuelling equipment so as to ensure environmental protection. Site Inspection Procedures for site inspection and reporting including notification of non-compliance Handling of Procedures for handling of complaints including response to Complaints and complainer and reporting. Grievances Environmental - Project Induction Training - Toolbox talks Training requirements and procedures including target groups, contents of training sessions and verification. Storage and use of Registration, logging of material safety data sheets and risk hazardous assessment of materials and chemicals being used in the project. products & Documentation requirements. substances Reinstatement Plan for topsoil management and removal of all equipment and Plan materials from temporary work sites and reinstatement of areas to a standard at least as good as the pre-construction condition.

8.2. Monitoring Conducting monitoring is the major strategic tool in environmental management and the extent of project monitoring will be dependent on the nature, scale and potential impact of the project activities. Monitoring may require the services of environmental specialists or a company with laboratory and analytical facilities (for complex environmental problems) or inspection by the local government environmental officers.

Main elements of the environmental monitoring plan are the following: In construction phase: · Dust monitoring; · Noise monitoring; · Solid wastes monitoring; · Waste waters monitoring; · Soil monitoring.

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 to sewage collector; · Monitoring of soil where depositions generated in water cleaning plants will be used as fertilizers.

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Monitoring of all activities during the construction period will be under the responsibility of the Contractor, whose environmental performance will be controlled by the Amelioration JSC (PIU and Environmental Specialist) and supervision consultant appointed by PIU. The Contractor will prepare Specific Management Plans (see Table 8.3 above)_ addressing all aspects of the EMP, and will establish a team for the monitoring activities(Table 8.3).

The Contractor will be responsible for the compliance of the constructions with the national norms and standards. Monitoring of construction activities will have to ensure that mitigation measures of construction impacts are being implemented properly. The Contractor’s Environmental Team will be subject to the government inspections(MENR, MoH) from time to time. An individual auditing company may also inspect the Contractor on a long-term basis, such as every 3 months or 6 months. Regular reports on implementation of monitoring plan will be submitted to Contractor .

The Environmental Monitoring Plan (see Table 8.4 below) has been prepared based on an initial monitoring plan developed as part of the Feasibility Study.

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Table 8.4. Environmental Monitoring Plan

Frequency of Cost Item Element Location Type of monitoring Purpose of monitoring monitoring During periodic site 2500 USD visits to be carried on To ensure adherence to daily basis by In the Visual monitoring environmental protection contractor and by Dust construction requirements monitor appointed in sites the contract Relevance to standards 2500 USD Project site and surrounding area Each month and rules Visual monitoring 2500 USD Wastewater flows In the To ensure adherence to During monthly site generated in the construction environmental protection visits construction sites sites requirements

2500 USD In the To ensure adherence to Collection of solid During periodic site Construction construction Visual monitoring environmental protection wastes visits repair works sites requirements

To ensure adherence to 2500 USD Utilization of Abandoned During periodic site Visual monitoring environmental protection solid wastes areas visits requirements Use of dangerous 2500 USD materials h (paints with heavy metals, lead In the To ensure adherence to compositions, construction Visual monitoring and study of Each month environmental protection asbestos-cement sites with right documentation requirements slabs, pipes, documentation inflammable and toxic substances etc.)

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In the 2500 USD Protective To ensure adherence to construction measures in the Visual monitoring Each month environmental protection sites with right construction site and safety requirements documentation In the To ensure adherence to 2500 USD Protection of construction Visual monitoring Each month environmental protection nature sites requirements Earth restoration In the To ensure adherence to 2500 USD At completion of after excavation construction Visual monitoring environmental protection construction works works sites requirements 2500 USD Noise & Project To ensure adherence to vibrations During periodic site area/close to Portative noise metering device environmental protection resulting from visits,on daily basis settlements requirements equipment work

Traffic operation 2500 USD /movement In the visual monitoring of machinery and To ensure adherence to During periodic site construction b) trucks carrying construction environmental protection visits sites materials requirements

In the 1000 USD During periodic site To ensure adherence to Reduced access construction visual monitoring visits on daily basis requirements sites Vehicle and 2500 USD pedestrian safety In the On daily basis during To ensure adherence to when there is no construction visual monitoring by supervisor nonworking hours requirements construction sites activity To ensure adherence to 1000 USD Utilization of Abandoned Visual Periodic visits environmental protection solid wastes areas requirements Operation Inlet to 6000 USD Each Quality of treated Measuring (pH, turbidity, In accordance with the Relevance to standards treatment year potable water suspended solids, bacteria) schedule and norms structure

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Measuring (physical-chemical and 6000 USD Adequacy of Outlet to bacteriological, including heavy In accordance with the Relevance to potable treated potable treatment metals and pesticides on permanent schedule water standards water to standards structure basis) Outlet to 6000 USD each Quality of treated Measuring (physical-chemical and In accordance with the Relevance to standards treatment year wastewater bacteriological analyses) schedule and norms structure Water quality 6000 USD (visual, water At up and downstream points of To ensure adherence to smell, water discharge and water Each month environmental protection bacteriological, discharge areas (basins) requirements chemical) Monitoring of nemotodes, Relevance to FAO Quality of sludge coliforms and Physical, chemical and After sludge requirements for 6000 USD (sediments) heavy metals of bacteriological analyses processing neutralization or reuse for sludge agricultural purposes composition

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8.3. Capacity Assessment for the Environmental Management of the Project

There is a Department on Control of Protection and Use of Water Resources in the Amelioration JSC, consisting of 5 staff trained under several international initiatives and programs (e.g. ADB Flood Mitigation Project). The main functions of this department include also control of compliance with water quality and quantity requirements during the abstraction and use of water resources for different purposes.. The PIU for this project has a full-time Environmental Specialist who has obtained significant experience under the Irrigation and Drainage Project financed by the World Bank. In order to further strengthen the capacity of the PIU and the Amelioration JSC (including its local departments), the project will provide resources for specifically targeted training sessions to cover aspects of environmental management for both construction and operational phases of water projects. Also, the project will involve international consultancy services to supervise the construction works, which will include environmental supervision expertise.

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LIST OF REFERENCES 1. Verdiyev R. H. Water resources of the East Caucasus rivers, under the climate changes. Baku 2002, Elm, p. 224. 2. Potable water. Hygienic requirements to quality of water of the centralized systems of potable water supply. Sanitary- drinking norms. M. 1996- p.111. 3. Rustamov S.G., Kashkay R.M. Water resources of the rivers Azerbaijan SSR, Baku, Elm 1989, p. 180. 4. Project of UNDP/SİDA: Reducing trans-boundary degradation of the Kura-Aras river basin. Institutional aspects of water sector of South Caucasus countries, Tbilisi 2005. 5. Project of UNDP/SİDA: Reducing trans-boundary degradation of the Kura-Aras River Basin. An estimation of Legislative needs for reducing of degradation of the Kura-Aras River Basin, Tbilisi 2005. 6. Farda İmanov, Rafig Verdiyev. Protection of the small rivers of flowing into the Caspian Sea with participation of public, Baku 2006, 108 p , Adilogli editorial office. 7. www.eco.gov.az 8. www.worldbank.org 9. www.azersu.az 10. www.ec.europa.eu

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ANNEXES: ANNEX I. Project Area in Agsu Rayon

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ANNEX II Existing Water supply In Agsu Rayon

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ANNEX III. Existing Sewer System in Agsu region

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ANNEX IV Proposed Water supply system options in Agsu region

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ANNEX V Proposed Sewerage system options in Agsu region

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ANNEX VI. Pressure zones

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ANNEX VII. WATER REQUIREMENTS AND STANDARDS

A. Drinking Water Drinking water treatment requirements should determined according to the quality of raw water from the different sources. EU Council Directive 75/440/EEC describes the quality required for surface water which is intended for the abstraction of drinking water in the EU Member States:

The surface water is divided into 3 categories (A1, A2, A3) according to limiting values: Category A1: Simple physical treatment and disinfection, e. g. rapid filtration and disinfection Category A2:Normal physical treatment, chemical treatment and disinfection, e. g. pre-chlorination, coagulation, flocculation, decantation, filtration, disinfection (final chlorination) Category A3: Intensive physical and chemical treatment, extended treatment and disinfection, e. g. chlorination to break-point, coagulation, flocculation, decantation, filtration, adsorption (activated carbon), disinfection (ozone, final chlorination)

In the summary project FS document proposes to consider the values according to EU Directive 75/440/EEC as criterion for this Project. It has to be emphasized that treated water quality must meet the limiting values set in “EU Council Directive 98/83/EC of 3 November 1998 on the Quality of Water Intended for Human Consumption”. Parametric values are divided in A) Microbiological Parameters B) Chemical Parameters C) Indicator Parameters The parameters and the limiting values are listed in Annex I to Council Directive 98/83/EC.

Relevant water quality standards in Azerbaijan are given in below Table.

Table A. Water quality standards in Azerbaijan

INDICATOR Standards

pH 6,0-9,0 Turbidity 1.5 mg/l Microorganism (Colonies are formed in 1 ml test water) <100

Coliform bacteria (coliform index), intestinal bacteria formed in 1 litre of test water <3

Nitrates (N03) 45 mg/l

Nitrites (N02) 3 mg/l

Chlorides 350 mg/l

Phosphates 1.0 mg/l

Sulfates (S04) 500 mg/l

Total hardness 7 mmol/1

Remained chlorine 0.3-0.5

Al 0.5 mg/l

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As 0.05 mg/l

Fe 0. 3 mg/l

Ni 0.1 mg/l

Cr (Cr6+) 0.05 mg/l

Cu (Cr2+) 1 mg/l

Zn 5 mg/l

Cd 0.001 mg/l

Pb 0.03 mg/l

Hg 0.0005 mg/l

B. Treated Waste Water and sludge

In the proposed FS document it is shown that WWTP should meet the requirements of internationla standards. As it states the amounts of 50 g BOD5/cap/d, 100 gCOD/cap/d , 10.5 gN/cap/d and 70 g/cap/dtotal suspended substances seems to be consistent with acting standards and those used in other European countries like Germany, Turkey etc.

As there is no legislation in Azerbaijan defining the limit effluent values of WWTPsto use international standards for this purposes. The standard for wastewater treatment in the European Union is presented in the Urban Wastewater Directive 91/271/EEC issued on May 21 1991. The EU-Standard differentiates between sensitive and non-sensitive receiving water bodies.

Table B . Effluent Standards acc. EU-Directive 91/271/EEC

Parameter (Unit) Sensitive Area Non-Sensitive Area · BOD5 · mg/l · 25 · 25 · COD · mg/l · 125 · 125 · TSS · mg/l · 35 · 35 · N,tot · mg/l · 15 · -- · P,tot · mg/l · 2 · --

The requirements for N and P refer to annual mean values and a minimum wastewater temperature of 12° C.

According to the Azerbaijan rules, discharge of wastewaters into water bodies is allowed only after obtaining a permit for "special water-use". The degree to which discharged wastewaters have to be treated (purified) is determined by the Maximum Allowable Discharge (MAD) norms for polluting substances. These norms are normally imposed in order to gradually improve surface water quality and meet the sanitary-hygienic requirements in proximity to water-intake structures.

Application of certain methods of use of waste water on irrigated fields depend on preliminary preparation, with consideration of natural conditions and type of cultivated crops.

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Assessment of waste water quality and its sludge, applied for irrigation and fertilization is conducted in complex way according to agrochemical and sanitary-hygienic and veterinary-sanitary indications. Regulation of indicators of quality of watering water and its sludge is made with consideration of soil-climatic, hydro- geological conditions of territory of specific object, biological specific features of cultivated crops and technology of irrigation. Chemical composition of waste water, used for irrigation is assessed on the basis of activity of hydrogen ion (pH), composition of amount of dissolved salts, availability of main biogenic elements (nitrogen, phosphorus, potassium), micro-elements and organic substances. Requirements for quality of wastewater and its sludge Quality of waste water and its sludge, used for irrigation is regulated by chemical, bacteriological and parasitological indications. Admissible concentration of heavy metals in waste water is established depending on irrigation norm, and it is defined in each specific case in accordance with acting requirements to waste water quality and its sludge, used for irrgigation and fertilization. Waste water, containing microelements, including heavy metals in quantities not exceeding MAC for economy- potable water use, may be used for irrigation without restrictions. Possibility of use of treated industrial and mixed waste water in at irrigated fields is settled in each specific case by bodies and institutions of state sanitary-epidemiology and veterinary services on base of results of special researches, directed for learning of degree and character of impact of waste water on soil, cultivated crops, livestock and cattle breeding production. Requirements concerning sludge from wastewater, applied for fertilization Use of sludge of waste water for fertilization may be admitted after its sterilization by one of methods in accordance with acting Sanitary rules of installation and operation of agricultural fields of irrigation. Before use of sludge at lots for fertilization, agrochemical examination of soil on following parameters is to be conducted: pH, composition of active forms of phosphorus, potassium, heavy metals-lead, cadmium, chromium, copper, nickel, mercury, zinc. Examination is made on base of methods, accepted at agrochemical service. As a rule, content of heavy metals in sludge of waste water from enterprises, reprocessing agricultural production is lower, however, nutritive substances are higher, than in sludge from city treatment facilities. With the aim to exclude hazard of pollution of soil, production and environment by heavy metals sludge of waste water purposed for fertilization are to be obligatorily analyzed for checking of heavy metals: lead, cadmium, chrome, copper, nickel, mercury, and zinc. Application of sludge of industrial –domestic waste water, containing heavy metals and composts from them is prohibited, if introduction of these fertilizers will increase level of pollution of soils up to values 0,7-0,8 MACs Quality control of waste water and its sludge, which are applied for irrigation and fertilization Production laboratory control on envisaging of sanitation rules and standards at operation of at irrigated fields includes: • control of effectiveness of operation of plants on preliminary preparation of waste water and its sludge before introduction at agricultural fields; • quality control of underground and surface water, which are in the area of impact at agricultural fields quality control of soil and agricultural production

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ANNEX VIII. WATER QUALITY ANALYSIS RESULTS OFAGSU

TEST RESULTS

ORGANOLEPTIC PARAMETERS

Odour Taste Suspended Turbidity qualitative qualitative Sediment Dilution Lab N Sample ID TON NTU mg/l number 11679 Agsu, Girdimanchay 1 1 148 98 MDL ND ND 1 1 RSD(%) ND ND 5 5 no no no EU98 (Council Directive 98/83/EC) abnormal abnormal abnormal ND change change change WHO's drinking water standards 1993 ND ND ND ND US EPA 3 3 4 ND ГОСТ 2874-82 2 2 ND 1.5 TON- threshold odor number MDL- Method Detection Limit RSD(%)- Relative Standard Deviation in % of measured value EU98- Drinking water quality standards- Council Directive 98/83/EC on the quality of water intended for human consumption. Adopted on 3 November 1998 WHO- World Health Organization USEPA- United States Environmental Pollution Agency GOST- Former Soviet Union Standardization Agency ND- not determined

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SENSORIC & PHYSICAL-CHEMICAL PARAMETERS

Redox- pH Dissolved Water Conductivity, Total Color Potential, value, Oxygen, Hardness Bromine temperature* 25°C Alkalinity 25°C 25°C O2 Lab N Project ID °C mg/l Pt/Co uS/cm mV mg/l mgCaCO3/l mgCaCO3/l mg/l 11679 Agsu, Girdimanchay 20 <5 657 198 7.72 9.26 260 130 <0.02 MDL ND 5 10 10 ND ND 10 10 0.05 RSD(%) ND ND 5.0 5.0 ND ND 5.0 5.0 5.0 no EU98 (Council Directive 98/83/EC) ND abnormal 2500 ND 6.5÷9.5 ND ND ND ND change WHO's drinking water standards 1993 ND ND 2500 ND 6.5÷8.5 ND ND ND ND US EPA ND 15 ND ND 6.5÷8.5 ND ND ND ND ГОСТ 2874-82 ND 20 ND ND 6.0÷9.0 ND 7 mol/m3 ND ND *Measured during sampling; ND- not determined

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ANIONS

Chloride, Sulphate, Bicarbonate Nitrite, Nitrate, Fluoride, Cyanides,

Cl SO4 HCO3 NO2 NO3 F CN- Lab N Project ID mg/l mg/l mg/l mg/l mg/l mg/l mg/l 11679 Agsu, Girdimanchay 23 180 159 0.0012 2.8 0.3 0.004 MDL 0.5 0.5 10 0.002 0.1 0.02 0.002 RSD (%) 5.0 5.0 5.0 2.0 2.0 5.0 5.0 EU98 (Council Directive 98/83/EC) 250 250 ND 0.5 50 1.5 0.05 WHO's drinking water standards 1993 250 500 ND ND 50 1.5 0.07 US EPA 250 250 ND 1 10 4.0 0.2 ГОСТ 2874-82 350 500 ND ND 45 0.7 ND

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CATIONS

Sodium, Potassium, Calcium, Magnesium. Ammonium, Boron,

Na K Ca Mg NH4 B Lab N Project ID mg/l mg/l mg/l mg/l mg/l mg/l 11679 Agsu, Girdimanchay 39.4 3.61 61 24 0.03 0.26 MDL 0.001 0.01 0.01 0.001 0.02 0.2 RSD(%) 0.8 0.8 0.9 0.7 5.0 5.0 EU98 (Council Directive 98/83/EC) 200 ND ND ND 0.5 1.0 WHO's drinking water standards 1993 200 ND ND ND ND ND US EPA 200 ND ND ND ND ND GOST ND ND ND ND ND ND

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RADIONUCLIDES

Total Radium Radium Lead 210 Tritium indicative 226 228 dose Lab N Project ID Bq/l Bq/l Bq/l Bq/l mSv/year 11679 Agsu, Girdimanchay <0.41 <0.29 <2.7 <1 0.1 EU98 (Council Directive 98/83/EC) ND ND ND 100 0.1 WHO's drinking water standards 1993 ND ND ND ND ND US EPA 180 ND ND ND ГОСТ 2874-82 ND ND ND ND ND

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HEAVY METALS

Iron, Aluminium, Arsenic, Chromium Nickel, Selenium, Mercury, Antimony, Manganese, Copper, Cadmium, Lead, Fe Al As Cr Ni Se Hg Sb Mn (total) Cu Cd Pb (total) Lab N Project ID ug/l ug/l ug/l ug/l ug/l ug/l ug/l ug/l ug/l ug/l ug/l ug/l Agsu, 11679 29.5 0.23 0.077 0.73 1.50 <0.2 0.19 3850 174 0.42 <0.01 <0.01 Girdimanchay MDL 0.3 0.01 0.01 0.04 0.5 0.2 0.01 0.3 0.3 0.03 0.01 0.01 RSD(%) 6.0 2.0 5.0 5.0 5.0 <5.0 5.0 1.2 2.5 4.0 <5.0 5.0 EU98 (Council 200 10 50 20 10 1 5 200 50 2000 5 10 Directive 98/83/EC) WHO's drinking water 200 10 50 20 10 1 5 300 500 2000 3 10 standards 1993 US EPA 50 10 100 100 50 2 6 300 50 1300 5 15 ГОСТ 2874-82 500 50 500 100 10 1 ND 300 100 1000 1 30

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TOTAL ORGANICS CHARACTERIZATION

Total organic Permanganate

carbon (TOC) index, O2 Lab N Project ID mg/l mg/l 11679 Agsu, Girdimanchay 11 0.9 MDL 0.3 0.4 RSD(%) 5.0 5 EU98 (Council Directive 98/83/EC) ND 5 WHO's drinking water standards 1993 ND ND US EPA ND ND ГОСТ 2874-82 ND ND

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MICROBIOLOGY CHARACTERIZATION

Colony Colony Escheria Coliform Pseudomonas Clostridium Enterococci count @ count @ coli pathogens aeruginosa perfringens 22° 36°C Lab N Project ID c/100 ml c/100 ml c/100 ml c/100 ml c/100 ml c/1 ml c/1 ml 11679 Agsu, Girdimanchay 14 40 6 0 0 1500 1000 MDL 1 1 1 1 1 2 2 RSD NA NA NA NA NA NA NA EU98 (Council Directive 98/83/EC) 0/250 ml 0/100 ml 0/250 ml 0/250 ml 0/100 100/ml 20/ml WHO's drinking water standards 1993 ND ND ND ND ND ND ND ГОСТ 2874-82 0 3 ND ND ND 100 ND Not found-Non detected bacterias during test; NA- Not Applicable

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CONCLUSIONS As results of fulfilled study program, following conclusions about water quality could be derived for studied samples:

Organoleptic parameters: Whenever concentration of turbidity and suspended solids have been considered the sample doesn’t comply with USSR ГОСТ 2874-82 drinking water quality standards and EPA criteria. Sensoric & Physical-chemical Sample complies with both USSR ГОСТ 2874-82 drinking parameters: water quality standards as well as EU, WHO and EPA criteria. Anions and Cations content: Sample comply of both USSR ГОСТ 2874-82 drinking water quality standards as well as EU, WHO criteria. But only nitrate content in all 3 samples were above US EPA criteria. Radionuclides: Sample comply of both USSR ГОСТ 2874-82 drinking water quality standards as well as EU, WHO and EPA criteria. Heavy metals: Whenever iron and manganese concentrations considered the sample doesn’t comply with both USSR ГОСТ 2874-82 drinking water quality standards as well as EU, WHO and EPA criteria. Total organics: Sample comply of both USSR ГОСТ 2874-82 drinking water quality standards as well as EU, WHO and EPA criteria. Microbiology communities: Whenever high concentrations of microbiological parameters considered the sample doesn’t comply with both USSR ГОСТ 2874-82 drinking water quality standards as well as EU, WHO and EPA criteria. Hazardous organics: These tests were not applied for this sample, because absence of oil hydrocarbons or pesticide pollution and plastic pipes are not using in current system.

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ANNEX IX . Characteristics of Surface Water Intended for the Abstraction of Drinking Water

Parameters Unit A1 A2 A3 pH 6.5 – 8.5 5.5 – 9.0 5.5 – 9.0 Coloration (after simple filtration) mg/l Pt scale 20 100 200 Total suspended solids (SS) mg/l 25 (G) Temperature °C 25 25 25 Conductivity at 20 °C μs/cm-1 1000 (G) 1000 (G) 1000 (G) Dilution factor 3 (G) 20 (G) 20 (G) Odour at 25 °C Nitrates (NO3) mg/l 50 50 50 Fluorides (F) mg/l 1.5 Dissiolved Iron (Fe) mg/l 0.3 2 Manganese (Mn) mg/l 0.05 (G) 0.1 (G) 1 (G) Copper (Cu) mg/l 0.05 0.05 (G) Zinc (Zn) mg/l 3 5 5 Boron (B) mg/l 1 (G) 1 (G) 1 (G) Arsenic (As) mg/l 0.05 0.05 0.1 Cadmium (Cd) mg/l 0.005 0.005 0.005 Total Chromium (Cr) mg/l 0.05 0.05 0.05 Lead (Pb) mg/l 0.05 0.05 0.05 Selenium (Se) mg/l 0.01 0.01 0.01 Mercury (Hg) mg/l 0.001 0.001 0.001 Barium (Ba) mg/l 0.1 0.1 0.1 Cyanide mg/l 0.05 0.05 0.05 Sulphates (SO4) mg/l 250 250 250 Chlorides (Cl) mg/l 200 (G) 200 (G) 200 (G) Surfactants (reacting with methyl blue) mg/l 0.2 (G) 0.2 (G) 0.4(G) (laurylsulphate) Phosphates (P2O5) mg/l 0.4 (G) 0.7 (G) 0.7(G) Phenoles (C6 H5OH) mg/l 0.001 0.005 0.1 Dissolved or Emulsified Hydrocarbons mg/l 0.05 0.2 1 Polycyclic Aromatic Hydrocarbons mg/l 0.0002 0.0002 0.001 Pesticides mg/l 0.001 0.0025 0.005 > 50 (G) > 30 (G)

Dissolced Oxiygen Satuaration Rate % O2 > 70 (G) Biochemical Oxygen Demand (BOD5) mg/l O2 < 3 (G) < 5 (G) < 7 (G) Nitroogen (N) by Kjeldahl Method 1 (G) 2 (G) 3 (G) (Except NO3) mg/l Ammonia (NH4) mg/l 0.05 (G) 1.5 4 Substances Extrahable with Chloroform mg/l SEC 0.1 (G) 0.2 (G) 0.5 (G) Total Coliforms at 37 °C /100 ml 50 (G) 5000 (G) 50000(G) Faecal Coliforms /100 ml 20 (G) 2000 (G) 20000(G) Faecal Streptococci /100 ml 20 (G) 1000 (G) 10000(G) Not present Not present Salmonella in 1000 ml in 1000 ml Note: values marked with “G” shall be respected as guidelines. Depending on the category the following standard methods of treatment for transforming surface water into drinking water are defined:

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ANNEX X. .The List Of Participants Of Public Consultation Meeting On Agsu Rayon WSS Project

Name Work place Connection

1 Igbal Mikayilov Deputy on socio-economic problems of the head of district 5-35-92 execute authority, Head of Rayon Commission on WSS 050 328-04-49 project implementation 2 Xanlar Huseynov Head of the department of architecture and 5-54-23 construction of the head of district execute authority 050 641-65-66 3 Cavan Cavadov Representative on Agsu region of the head 5-22-54 of district authority 050 778-79-44 4 Agil Niftaliyev Chairman of the Agsu municipality 5-50-04 050 518-01-01 5 Alihuseyn Mayilov Head of the office of systems of watering region 5-53-67 050 413-14-15 6 Munis Mammadov Region head of the land department 5-50-68 050 399-82-07 7 Camil Huseynov Region water head of the canal office 5-28-40 050 319-31-41 8 Vahid Hasanov Agsu head of net region 5-51-19 050 250-68-77 9 Ingilab Mirzaliyev Region gas head of the exploitation office 5-50-42 050 404-77-73 10 Agamurad Muradxanov The 12th way head of the exploitation office 5-25-60 050 214-47-46 11 Aydin Calilov Region head of the telecommunication joint 5-50-99 050 223-79-21 12 Sardar Bayramov Head of the housing-operational district 5-23-27 050 325-10-14 13 Mirali Nagiyev Region head of the statistics office 5-51-76 050 235-04-94 14 Rovsan Mutallimov Pirhasanli village fulfilment administrative agent 5-62-88 on territory circle 050 421-91-09 15 Shahlar Xasayev Vice-president of the Pirhasanli municipality 050 344-11-67

16 Seyidaga Gulumov Society of red half-moon Agsu chairman of the District 050 393-49-49 Department 17 Yalcin Panahov Editor of the Agsu newspaper 070 324-15-05

18 Camaladdin Zeynalov Labour veteran 051 833-11-22

19 Murvat Qarayev DIIXIHC Agsu chairman of the District 5-25-64 Committee 050 556-32-57 20 Shahrabanu Malikov Agsu head physician of the District Central 5-51-25 Hospital 050 335-09-70 21 Tahir Xasi Head of the District Education Department 5-50-20

22 Radim Muslumov Region head of the finance office 5-50-22

23 Adil Karimov Head deputy of the District Education Department 5-50-20

24 Arif Karimov City director of the 2th school 5-24-64

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Name Work place Connection

25 Cabrayil Badalov Region director of the system of library centralized 5-39-74

26 Fatulla Seyidaliyev Head of the Agsu branch of the Kapital Bank 5-50-50

27 Akif Qadirov Region head of the department on distribution of electricity5-51-20

28 Mahir Karimov Head of the office of fire safety 5-30-31

29 Ahsan Abishov KHVTIC Agsu chairman of the District 5-51-46 Committee 30 Ali Huseynov YAP Agsu chairman of the organization of region 5-50-08

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Annex XI. Public meeting on discussion of EIA report

22 October 2010

Workshop was organized in the meeting venue provided by the Agsu Rayon Executive Powers The representative of EPTİSA Rafig Verdiyev provided the general information about the Project to participants and answered asked questions. Main discussions where about proposals of Project Alternatives, Proposal Water sources , Environment Impact Assessment, Scheduled Activities for Environment Management Plan, Proposed Mitigation Measures. The Presentation followed up with interesting discussions. Discussions were mainly about water supply, location of waste water treatment plant, sewer canals, project schedule and employment of local people in project construction work. Some people asked about length of construction works and potential its impacts/ The environmental consultant of the EIA informed that provided proposals will be considered in the EIA. The essential questions and proposals during the presentation:

Comment Response 1 Alihuseyn Mayılov In order to provide good Project is aimed at Drinking water supply, but not water management for different irrigation. There will be constructed reservoirs to purposes, and mainly to keep some provide sustainable drinking water to the water in Agsu river during summer population. The proposed by the project source of I suggest to construct reservoir water will be Girdımanchay river and there won’t be near Agsu river close to the Mugan any impact to Agsuchay river water regime bridge

2 Gamaladdin Zeynalov: Project will construct new water distribution system. Will the project replace all the Problems of high and low pressure will be solved by water supply pipelines? pressure zones If not, then high pressure may destroy them.

3 Xanlar Huseynov: Treated waste waters will be discharged to collector It would be better to discharge or used for irrigation. It will meet required standards treated waste waters into collector , not into Agsu river because river is used as drinking water source

4 Sardar Bayramov When putting or replacing of water and waste water pipes and arrangement of infrastructure, all Will during the construction environment related considerations will be followed process the roads recovered back according to EMP, including covering of roads after and how soon it will take place? installations of pipes. 5 Javan Javadov:Water pipes are They won’t be used in project and new pipelines will under the newly constructed be constructed in streets instead buildings in Nizami street of Qaraqajlı village.

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