Initial Environmental Examination
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Initial Environmental Examination August 2015 AZE: Power Distribution Enhancement Investment Program- Tranche 1 Prepared by “Azerishiq” Joint Stock Company for the Asian Development Bank. This initial environmental examination is a document of the borrower. The views expressed herein do not necessarily represent those of ADB's Board of Directors, Management, or staff, and may be preliminary in nature. Your attention is directed to the “terms of use” section on ADB’s website. In preparing any country program or strategy, financing any project, or by making any designation of or reference to a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area. CURRENCY EQUIVALENTS (as of 01 June 2015) Currency unit – Azeri Manat (AZN) AZN1.00 = US $0.96 US$1.00 = AZN $1.04 LIST OF ABBREVIATIONS ACGIH — American Conference on Government and Industrial Hygienist ADB — Asian Development Bank CFC — Chlorofluorocarbons CTS — Complete Transformer Substation EA — Executing Agency EARF — Environmental Assessment and Review Framework ECR — Environmental Complaints Register ED — Environmental Department EIA — Environmental Impact Assessment EMF — Electromagnetic Field EMP — Environmental Management Plan EPC — Engineering, procurement, and construction EPD — Environmental Protection Division GoA — Government of Azerbaijan GFP — Grievance Focal Points GHG — Green House Gases GRC — Grievance Redress Committee GRM — Grievance Redress Mechanism ICNIRP — International Commission on Non-ionising Radiation Protection IEE — Initial Environmental Examination IEEE — Institute of Electrical and Electronics Engineers IRPA — International Radiation Protection Association MENR — Ministry of Ecology and Natural Resources MFF — Multi-tranche Financial Facility NBSAP — National Biodiversity Strategy and Action Plan NP — National Park OJSC — Open Joint Stock Company O&M — Operation and Maintenance PCBs — Polychlorinated biphenyl PIU — Project Implementation Unit PMC — Project Supervision and Management Consultant POPs — Persistent Organic Pollutants REA — Rapid Environmental Appraisal RESSD — Regional Energy Supply and Sales Department SEE — State Policy on Ecological Expertise SIW — Self-supporting Insulated Wire SNR — State National Reserve SNS — State National Sanctuary SPPRED — The State Program on Poverty Reduction SPS — DDevelopmentSafeguard PolicyDevelopment Statement (SPPRED) SSEMP — Site Specific Environmental Management Plan TA — Technical Assistance UNEP — United Nations Environment Program WHO — World Health Organisation NOTES (i) The fiscal year (FY) of the Government of Azerbaijan ends on 31 December. FY before a calendar year denotes the year in which the fiscal year ends, e.g., FY2015 ends on 31 December 2015. (ii) In this report, "$" refers to US dollars. CONTENTS I. EXECUTIVE SUMMARY .................................................................................................... 1 II. POLICY, LEGAL AND ADMINISTRATIVE FRAMEWORK .................................................. 5 A. Government of Azerbaijan Environmental Policies, Laws & Regulations ............................. 5 B. Environmental Assessment Process in Azerbaijan .............................................................. 9 C. ADB Environmental Safeguard Requirements and Policies ............................................10 D. International Agreements and Conventions ....................................................................11 E. Institutions ..........................................................................................................................12 F. Extent of IEE Study ............................................................................................................13 III. DESCRIPTION OF THE PROJECT ...............................................................................14 A. Project Background and Need ...........................................................................................14 B. Project Description .............................................................................................................15 C. Implementation Schedule ...............................................................................................21 D. Project Benefits ..............................................................................................................21 IV. DESCRIPTION OF THE ENVIRONMENT ......................................................................22 A. Physical Resources ...........................................................................................................22 B. Ecological Resources ........................................................................................................27 C. Socio-economic Resources ............................................................................................29 V. ANTICIPATED ENVIRONMENTAL IMPACTS AND MITIGATION MEASURES ................35 A. Due Diligence Review of Potential Environmental Impacts Associated with Tranche 1 Components .............................................................................................................................35 B. Impacts and Mitigation Measures Due to Project Location .................................................36 1. GROUP 1: 110KV SUBSTATIONS ....................................................................................36 2. GROUP 2: 35KV SUBSTATIONS ......................................................................................36 3. GROUP 3: 110KV DISTRIBUTION LINES .........................................................................38 4. GROUP 4: 35 KV DISTRIBUTION LINES ..........................................................................38 5. GROUPS 5 AND 6: 10KV DISTRIBUTION LINES AND 0.4KV SELF - SUPPORTING INSULATED WIRES (SIW) .......................................................................................................39 6. GROUP 7: COMPLETE TRANSFORMER SUBSTATIONS (CTS) .....................................40 C. Impacts and Mitigation Measures Due to Project Design ................................................40 1. GROUPS 1 AND 2: 110KV AND 35KV SUBSTATIONS ....................................................40 2. GROUPS 3, 4, 5 AND 6: 110 KV, 35KV, 10 KV AND 0.4KV DISTRIBUTION LINES .........42 3. GROUP 7: 10KV COMPLETE TRANSFORMER SUBSTATIONS......................................42 D. Impacts and Mitigation Measures Due to Construction Activities ....................................42 1. GROUPS 1, 2 AND 7: 110KV SUBSTATIONS, 35KV SUBSTATIONS AND COMPLETE TRANSFORMER SUBSTATIONS ............................................................................................42 2. GROUPS 3, 4, 5 AND 6: 110 KV, 35KV, 10 KV AND 0.4KV DISTRIBUTION LINES .........45 E. Impacts and Mitigation Measures from Operation ..............................................................48 1. OPERATION & MAINTENANCE (O&M) STAFF/SKILLS LESS THAN ACCEPTABLE RESULTING IN A VARIETY OF ADVERSE EFFECTS: ............................................................48 2. EXPOSURE TO ELECTRO MAGNETIC FIELDS (EMF): ...................................................48 3. POLY CHLORINATED BIPHENYLS (PCBS) .....................................................................49 4. COMMUNITY IMPACTS ....................................................................................................49 VI. PUBLIC CONSULTATION AND INFORMATION DISCLOSURE....................................50 A. Public Consultation ............................................................................................................50 B. Information Disclosure .......................................................................................................52 VII. GRIEVANCE REDRESS MECHANISM..........................................................................53 A. Grievance Focal Points, Complaints Reporting, Recording and Monitoring ........................53 VIII. ENVIRONMENTAL MANAGEMENT PLAN ....................................................................55 A. Environmental Impact Mitigation and Monitoring ................................................................55 1. CRITICAL ENVIRONMENTAL REVIEW CRITERIA ...........................................................55 2. MONITORING AND REPORTING .....................................................................................57 B. Implementation Arrangement .............................................................................................59 3. CONTRACTORS’ RESPONSIBILITIES .............................................................................59 4. AZERISHIG RESPONSIBILITIES ......................................................................................59 5. ADB RESPONSIBILITIES ..................................................................................................60 C. Review of Azerishig’s Environmental Management Capability ........................................61 D. Environmental Management Budget and Resources ......................................................61 IX. CONCLUSION AND RECOMMENDATION ....................................................................62 APPENDIX 1: GENERIC DESIGN IMAGES OF PROPOSED 110 KV AND 35 KV SUBSTATION LAYOUTS .........................................................................................................64 APPENDIX 2: GOOGLE IMAGES OF SUBSTATIONS AND DISTRIBUTION LINES AT 7 RESSD