Uzbekistan Agency “Uzkommunhizmat” for the Government of Uzbekistan and the Asian Development Bank

Environmental Monitoring Report

Semestral Report Reporting Period: July-December 2015 January 2016

UZB: Water Supply and Sanitation Services Investment Program – Tranche 3

Prepared by the Uzbekistan Agency “Uzkommunhizmat” for the Government of Uzbekistan and the Asian Development Bank.

This environmental monitoring report 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.

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.

ENVIRONMENTAL MONITORING REPORT

BI-ANNUAL REPORT 2015

Under the project Tranche 3 “Rehabilitation and construction of sewerage networks in Andijan city. Improvement of water supply in settlements of Jizzak and Khorezm provinces and the Republic of Karakalpakstan”

Project Number: Loan 2825-UZB Reporting period: July - December 2015

Uzbekistan: Water Supply and Sanitation Services

Rehabilitation of sewerage system of Termez city. Sewerage treatment plant and sewerage networks.

Prepared by: PPMU Uzbek Agency “Uzkommunhizmat” (UCSA) For: Asian Development Bank

FINAL DRAFT

CONTENT ABBREVIATION ...... 2

INTRODUCTION ...... 3

1. GENERAL INFORMATION ...... 3

1.1 Objectives, Scope and Methodology ...... 3

1.2. Construction activities and project progress during the reported period ...... 6

1.3. Changes in project organization and environmental management team ...... 11

1.4. Relationships with contractors, owner, lender ...... 16

1.5. Project permitting status ...... 20

2. ENVIRONMENTAL MONITORING ...... 22

3. SITE ENVIRONMENTAL MANAGEMENT PLAN IMPLEMENTATION ...... 22

3.1 Environmental Management System ...... 22

3.2 Inspection and audit ...... 23

3.3 Consultation and complaints ...... 27

4. CONCLUSION AND NEEDED ACTIONS ...... 27

ABBREVIATION

ADB - Asian Development Bank

EA - Executive Agency

EIA - Environmental Impact Statement

EMP - Environmental Management Plan

EMR - Environmental Monitoring Report

ICB - International Contract Bidding

IEE - Initial Environmental Examination

FAM - Facility Administration Memorandum

FFA - Financing Framework Agreement

MFF - Multitranche Financing Facility

PIU - Project Implementation Unit

PPMU - Project Preparation and Management Unit

SCE - Supervision Consultant Engineer

SEC - Statements of Environmental Consequences

SEMP - Site Environmental Management Plan

SPS - Safeguards Policy Statement

WDC - Water distribution station

Water Supply and Sanitation Services Investment WSSSIP - Program

Uzbek Communal Services Agency UCSA - (“Uzkommukhizmat”)

INTRODUCTION

1. In 2009, the Government of the Republic of Uzbekistan (the Government) signed a Financing Framework Agreement (FFA) with the Asian Development Bank (ADB) for a Multitranche Financing Facility (MFF) to finance the Water Supply and Sanitation Services Investment Program (WSSSIP). On 29 September 2009, the ADB Board of Directors approved the MFF Program with the Uzbekistan Agency “Uzkommunhizmat” (UCSA) as the Executing Agency (EA). 2. Tranche 3 (Loan 2825-UZB) was approved for $58 million on 7 December 2011, became effective on 20 April 2012 with loan closing date of 31 December 2016. 3. Tranche 3 has two core components: (i) water supply and sanitation infrastructure improvement, which includes rehabilitation, improvement and expansion of water supply and sanitation/sewerage systems, and a sanitation and hygiene program; and (ii) capacity development and program management, which includes project management and implementation support, assistance on regulatory reforms in institutional and financial development/ management of water service providers. 4. 4 construction contracts were awarded for implementation of civil works in Djizzak province, Republic of Karakalpakstan, Khoresm province and Andijan city under Tranche 3: • 2825/CW/2. Rehabilitation of Water Intake Facilities “Koytash, WDC and Networks in cities and rural settlements of Zafarabad and Arnasay districts of Djizzak province” • 2825/CW/1.2. Improvement of Water Supply System in Rural Settlements of the Republic of Karakalpakstan • 2825/CW/1.1. Improvement of Water Supply System in Rural Settlements of the Khoresm region • 2825/CW/3. Rehabilitation and Construction of Sewerage Networks in Andijan city. 5. During reporting period all four contracts were on-going. As part of the Financing Framework Agreement all contracts need to be implemented in compliance with environmental requirements, described in Initial Environmental Examinations conducted for each sub-project. Each IEE includes Environmental Management Plan. 6. NBT (the Consultant) was contracted by ADB to assist to UCSA in preparing Environmental Monitoring Report (EMR) for period July – December 2015 with further conducting hands-on training on proper implementation of ADB Environmental Safeguards for UCSA staff and contractors.

1. GENERAL INFORMATION

1.1 Objectives, Scope and Methodology

7. The main objective of this report is to provide information about progress on implementation of Site Environmental Management Plans (SEMPs) including environmental monitoring, to report any environmental concerns occurred during projects implementation, to suggest correction actions and analyses of status of recommended earlier ones within previous EMRs and aide memoire of ADB missions during reporting period.

8. The report is also prepared to review compliance with environmental safeguards of the Government of Uzbekistan and ADB Safeguards Policy Statement (SPS), (2009) as well as to fulfill the Loan covenant as described in Loan Agreement UZB 2825 between ADB and Uzbekistan. 9. To achieve the objective the following activities were undertaken: (i) revision of the available program documentation related to environmental performance and institutional set up, (ii) conduction sites inspections, and (iii) EMR preparation including proposing recommendations on IEEs implementation. 10. The location of sub-projects under Tranche 3 is given in Figure 1 below.

Figure 1: Project area on Tranche 3

1.2. Construction activities and project progress during the reported period

11. Information about civil works performed under the Tranche 3 by the reported period is given in Table 1. As was noted above, construction works were implemented within all contracts.

Table 1: Information about construction activities performed on Tranche 3

# of Contract/ Percentage Construction Activities Performed of Works Subproject Name Performed

2825/CW/2 Rehabilitation of water intake structures “Koytash” in 81,5% capacity of 20.0m3/day: works in progress - reconstruction of Rehabilitation of 1st stage pump station, drilling of new and reconstruction of 10 Water Intake boreholes, reconstruction of 2 reservoirs with capacity of 500 Facilities “Koytash, m3 with simplified absorbent filters, chlorination, administrative WDC and Networks and laboratory building, transformer substation, technological in cities and rural communications, fences and in-site and out-site power supply. settlements of Construction of control post, cesspool in capacity of 15 m3 and Zafarabad and pit latrine. Arnasay districts of Djizzak province” Rehabilitation of WDC “Temiryazev: works in progress – reconstruction of 2 reservoirs in capacity of 500 m3 with simplified absorbent filters; reconstruction of the pump station, chlorination, transformer substations, technological communications, fences and in-site and out-site power supply. Construction of control post, diesel substation, cesspool in capacity of 15 m3 and pit latrine.

Rehabilitation of WDC “WDC-2”: works in progress – reconstruction of 2 reservoirs in capacity of 2000 m3 with simplified absorbent filters; reconstruction of re-lifting pump station, administrative and laboratory building, transformer substation, technological communications, fences and in-site and out-site power supply. Construction of chlorination, control post, cesspool in capacity of 15 m3 and pit latrine.

Rehabilitation of WDC “Zafarabad”: works in progress – reconstruction of 1 reservoir in capacity of 1000 m3 with simplified absorbent filters, construction of 1 reservoir in capacity of 1000m3 with simplified absorbent filters; reconstruction of pump station, chlorination, control post, transformer substation, technological communications, fences and in-site and out-site power supply. Construction of diesel substation, 2 cesspools in capacity of 15m3 and pit latrine.

Rehabilitation of WDC “Mustakillik”: works in progress – reconstruction of 2 reservoirs in capacity of 500 m3 with simplified absorbent filters; reconstruction of pump station with chlorination, transformer substation, technological communications, fences and in-site and out-site power supply. Construction of control post, diesel substation, cesspool in capacity of 15 m3 and pit latrine.

Rehabilitation of WDC “F.Khodjaev”: works in progress – reconstruction of 2 reservoirs in capacity of 500 m3 with simplified absorbent filters; construction of pump station with chlorination, transformer substation, control post, diesel

# of Contract/ Percentage Construction Activities Performed of Works Subproject Name Performed

substation, cesspool in capacity of 15 m3 and pit latrine, fences and in-site and out-site power supply. Reconstruction of technological communications.

Rehabilitation of WDC “B.Fayziev”: works in progress – reconstruction of 2 reservoirs in capacity of 500 m3 with simplified absorbent filters; reconstruction of pump station, chlorination plant, transformer substation, technological communications, fences and in-site and out-site power supply. Construction of control post, diesel substation, cesspool in capacity of 15 m3 and pit latrine.

Rehabilitation of WDC “Kazakhstan”: works in progress – reconstruction of 2 reservoirs in capacity of 500 m3 with simplified absorbent filters; reconstruction of pump station, chlorination plant, transformer substation, technological communications, fences and in-site and out-site power supply. Construction of control post, diesel substation, cesspool in capacity of 15 m3 and pit latrine.

Rehabilitation of WDC-3 “Goliblar”: works in progress – reconstruction of 2 reservoirs in capacity of 2000 m3 with simplified absorbent filters; reconstruction of pump station, administrative and laboratory building, chlorination, control post, transformer substation, technological communications, fences and in-site and out-site power supply. Construction of control post 1 piece, cesspool in capacity of 15 m3 and pit latrine.

Rehabilitation of WDC “Turkiston”: works in progress – reconstruction of 2 reservoirs in capacity of 500 m3 with simplified absorbent filters; reconstruction of pump station, chlorination plant, transformer substation, technological communications, fences and in-site and out-site power supply. Construction of control post, diesel substation, cesspool in capacity of 15 m3 and pit latrine.

Rehabilitation of WDC “Khorezm”: works in progress – reconstruction of 2 reservoirs in capacity of 500 m3 with simplified absorbent filters; reconstruction of pump station, chlorination plant, transformer substation, technological communications, fences and in-site and out-site power supply. Construction of control post, diesel substation, cesspool in capacity of 15 m3 and pit latrine.

Rehabilitation of WDC “Samarkand”: works in progress – reconstruction of 2 reservoirs in capacity of 500 m3 with simplified absorbent filters; reconstruction of pump station, chlorination plant, transformer substation, technological communications, fences and in-site and out-site power supply. Construction of control post, diesel substation, cesspool in capacity of 15 m3 and pit latrine.

Rehabilitation of WDC “Galaba”: works in progress – reconstruction of 2 reservoirs in capacity of 500 m3 with simplified absorbent filters; reconstruction of pump station, chlorination plant, transformer substation, technological communications, fences and in-site and out-site power supply.

# of Contract/ Percentage Construction Activities Performed of Works Subproject Name Performed

Construction of control post, diesel substation, cesspool in capacity of 15 m3 and pit latrine.

Rehabilitation of WDC “Dadajanov”: works in progress – reconstruction of 2 reservoirs in capacity of 500 m3 with simplified absorbent filters; reconstruction of pump station, chlorination plant, transformer substation, technological communications, fences and in-site and out-site power supply. Construction of control post, diesel substation, cesspool in capacity of 15 m3 and pit latrine.

Rehabilitation of WDC “Uzbekiston Mustaqilligi”: works in progress – reconstruction of 2 reservoirs in capacity of 500 m3 with simplified absorbent filters; reconstruction of pump station, chlorination plant, transformer substation, technological communications, fences and in-site and out-site power supply. Construction of control post, diesel substation, cesspool in capacity of 15 m3 and pit latrine.

Rehabilitation of trunk mains: works in progress – reconstruction of trunk mains from WDC-2 to PK-21, from PK 0 to PK 97+80, from PK 0 to PK 4+1, form polyethylene pipes D- 630 mm 5 km, 560 mm 7,22 km. Trunk main in the direction of WDC F.Khodjaev and settlement Qutlug yul in D-225 mm 10 km, D-180 mm 2.61 km. Trunk main from WDC Dadajanov to WDC Turkiston D-225 mm 10.7 km. Trunk main from WDC Dadajanov to WDC Samarkand and WDC Khorezm D-225 mm 9.65 km, D-160 mm 3.83 km in total length of 49.5 km with installation of ultrasonic water meters.

Rehabilitation of distribution water networks in Zafarabad district: works in progress – construction and reconstruction of water networks in district center and in settlement Uzun from polyethylene pipes D-225 mm, D-160 mm and D-110 mm in total length of 25 km and with installation of fire hydrants.

Rehabilitation of distribution water networks in Arnasay district: works in progress – construction and reconstruction of water networks in district center from polyethylene pipes D-315 mm, L-160 mm and D-110 mm in total length of 10.7 km and with installation of fire hydrants

2825/CW/1.2 1. Amudarya District 72,9%

Improvement of 1.1. Distribution unit RU-1: reconstruction of pump station Water Supply building with replacement of 8 sets of pumping equipment, System in Rural chlorination with installation of the process equipment in Settlements of the capacity of 0.5 kg/hour, equipment of the existing laboratory Republic of with modern equipment, 2 water reservoirs each 500 m3 are in Karakalpakstan satisfactory condition, must be replaced manholes and installed simplified absorbent filters.

1.2. WDC "Yarimchi": new construction of pump stations combined with chlorination equipped with 2 groups of pumps: Group 1 pumps - for water supply in the network of settlements: Yarimchi, Korajon, Chordora, Annauraz, Buzyap, Bajmankala, Alangovul, capacity Q=26m3/h and pressure P=30m, Group 2 pumps - for supply water to WDC "Hitoy",

# of Contract/ Percentage Construction Activities Performed of Works Subproject Name Performed

"Ishanovul" and "Seydovul" capacity Q=75m3/h and pressure H=40m; 2 water reservoirs in capacity of 150 m3; control post; fencing. Also construction of new water distribution networks in 7 above settlements in total length of 20.7 km, and house connections 11.69 km, with installation of water meters for 424 households.

2. Beruniy District

2.1. WDC - 1: new construction of pump station combined with chlorination equipped with two groups of pumps: Group 1 - 57 m3/h, H 45m, Group 2 - 68 m3/h, H=45m for water supply in the network of settlements: Kurbog, Bolish, Hirkala, Jumaniyazov, Dustlik; 2 water reservoirs in capacity of 500 m3, control post and fencing. Also construction of new water distribution networks in the above-mentioned 5 settlements, with a total length of 30.3 km and 20.29 km house connections, with installation of water meters for 919 households.

3. Kegeyli District

3.1. WDC - 1: new construction of pump station combined with chlorination equipped with a group of pumps 12 m3/h, H=30m for water supply in the network of settlements Yaby, Aiteke, Kaishili, Jetitole; 2 water reservoirs in capacity of 50 m3, control post and fencing. In addition, construction of new water distribution networks in four above mentioned settlements in total length of 7.5 km and house connections 0.79 km, with installation of water meters for 33 households.

3.2. WDC - 2: new construction of pump station combined with chlorination equipped with a group of pumps: 6 m3/h, H=30m for water supply in network of settlements Tamgany, Ushtam; 2 water reservoirs in capacity of 50 m3, control post and fencing. Also construction of new water distribution networks in two above-mentioned settlements with a total length of 7.7 km and house connections 1.37 km, with installation of water meters for 55 households.

4. Khojeyli District

4.1. WDC - 1: new construction of pump station combined with chlorination equipped with two groups of pumps: Group 1 - 12m3/h, H=45m, Group 2 - 68m3/h, H=45m for water supply in networks of settlements Kumbuzaul, Tozabaz, Shodlik, Karakol, Kolan, Shirin, Sabikaul and Shahankol; 2 water reservoirs in capacity of 300 m3, control post and fencing. also construction of new water distribution networks in the above 8 settlements, with a total length of 43.7 km and house connections 28.2 km, with installation of water meters for 1337 households

5. Shumanay District

5.1. Pump station “Qanlikol”: reconstruction of pump station building with replacement of 5 sets of pumping equipment; chlorination with installation of process equipment in capacity of 0.5 kg/hour; equipment of existing laboratoriy

# of Contract/ Percentage Construction Activities Performed of Works Subproject Name Performed

with modern equipment.

5.2. Vodovod “Qanlikol-Dehkanabad” and water networks of settlement Dehkanabad: new construction of trunk main and water networks in settlement Dehkanabad in total length of 17.5 km.

5.3 Construction and replacement of water networks in Shumanay district center: new construction of water networks and replacement of existing water networks in Shumanay district center in total length of 34.9 km.

5.4. WDC “Birleshik”: new construction of pump station combined with chlorination, equipped with a group of pumps in capacity of 32 m3/h, H=30m for water supply to the network of settlements: Birleshik, Mamiy, Baskaldak, Bagovul, Galleaskan, Abatjap, Dedekovul, Sarykovul, Karajan. also construction of new water network in above 9 settlements in total length of 28.6 km

5.5. WDC “Begjap”: new construction of pump station combined with chlorination equipped with a group of pumps in capacity of 22 m3/h, H=30m for water supply in the network of settlement Berdybai and Shumanay station. Also construction of new water distribution networks in two above-mentioned settlements, with a total length of 4.6 km

5.6. WDC “Mamiy”: reconstruction of pump station combined with chlorination equipped with a group of pumps in capacity of 22 m3/h, H=30m for water supply in the network of settlement Mamiyaul. Also construction of new trunk main to WDC Mamiy in total length of 0.4km.

2825/CW/1.1 Currently, on 10 sites works are in progress. 61,6%

Improvement of In WDCs “Akdarband”, “Hosiyan” and “Hayrabod” the Water Supply earthworks, excavations, horizontal surfacing, concrete works System in Rural are in progress, fences are being constructed. Settlements of the Khoresm region Laid 80.05 km of PE pipes of different diameters. Including in Yangiarik district 7.5 km, in Khiva district 16.0 km and in Kushkupir district 57.0 km.

At present in Yangiarik district the project is ready to deliver to the working committee on the commissioning of water supply network of 7.5 km.

2825/CW/3 Construction of sewerage networks in Fergana street in 86% length of 1094.61 m Ø400mm Rehabilitation and Construction of Reconstruction of sewerage networks in Hakimov street in Sewerage Networks length of 891.65 m Ø400mm. in Andijan city Reconstruction of Western collector of Andijan city in length 5228 m in Ø1000 mm and in length 3104 m in 800 mm

1.3. Changes in project organization and environmental management team

12. “Uzkommunhizmat” Agency (USCA) is the project Executive Agency which is based in Tashkent. According to Facility Administration Memorandum (FAM) (2009), PPMU is responsible for managing, executing and monitoring project implementation and should be staffed with safeguards unit. Safeguards unit has to consist of environmental and social specialists. PPMU needed to be staffed within the environmental and social specialists within 3 months of the Effective Data. The PPMU needs be supported by Consultant under Project Management Facility. 13. As per FAM, in term of environmental aspects, PPMU is responsible for: a) monitoring and evaluating the implementation progress and impact, b) checking and guiding safeguards compliance, c) coordinating among government agencies, and d) consolidating and preparing required reports. 14. Covenants # 16, Schedule 5 of Loan Agreement, between ADB and Republic Uzbekistan (2012) states, that progress reports on implementation of mitigation and monitoring measures for subprojects shall be submitted to ADB on a semi-annual basis. 15. During reported period (July – December 2015) two Environmental Specialists had been worked in PPMU: first during July-September 2015 and second one during November- December 2015. In February 2016 PPMU appointed new Environmental Specialist from own staff and now she combines Social Specialist’s duties as well.

16. A program implementation unit (PIU) was set up in each participating province and it is responsible for day-to-day implementation of the Investment Program and the subprojects within that province. Three PIUs in Nukus, Urgench and Djizak cities were established for implementation of the Tranche III. In term of environmental performance, the major responsibilities of the PIUs involve: a) coordinating the activities of consultants and contractors in the province; b) overseeing construction activities; c) monitoring social, gender, and environmental impacts of the subproject activities; d) supervising local institutional reform and capacity development activities; and e) preparing and consolidating subproject accounting, auditing, and monitoring reports for submission to the PPMU. Support will be provided from the program management facility to assist PIUs in fulfilling their responsibilities. 17. At the time of Environmental audit conducted in November 2013, auditors noted that such practices of the combining of the specialist – Environmental Specialist with the other specialties is not efficient. In these cases, the specialist does not have the adequate professional qualification in environmental field, combining of two specialties leads to the time deficiency and, respectively, to the quality degradation of the professional duties. 18. Within Program Management Facility, the PPMU hired a Consultant – consortium – EPTISA Servicios de Ingenieria S.L. (EPTISA) (Spain) and UBI Consulting, LLC

(Uzbekistan) to support Investment Program in: (i) implementation and management of approved subprojects under the Investment Program; and (ii) preparation and appraisal of the proposed subprojects to be financed under the Investment Program. The contract between PPMU and EPTISA was signed only in March 12, 2013.. 19. According to the Terms of Reference, the Consultant has to provide technical support to PPMU in the bidding documentation preparation, project management and development reports for submission to ADB. 20. The Consultant’s team is supposed to comprise Environmental Specialist responsible for above mentioned tasks, particularly, as described in TOR, for: a) preparation an overall environmental monitoring work plan;

b) updating, as necessary, requirements under the water supply and wastewater effluent standards;

c) monitoring and assessment compliance with the environmental safeguards of the project;

d) training PPMU, PIU, and various project consultants on environmental issues;

e) supporting the PIUs in establishing an environmental monitoring program; and

f) provision inputs on environment safeguards for preparation of the quarterly project progress report.

21. Consultant’s Environmental Specialist had been worked until June 2014. Since that time the Consultant performs without Environmental Specialist and as consequences, no more support was provided from Consultant side in part of environmental aspects. 22. The ADB Missions (June and October 2015) raised its concern on hiring Consultant environmental specialist, some actions on specialist selections was undertaken, but in general, the position still remains vacant. 23. One PIU was established in each project area. Each PIU had the specialists in its composition with the obligations to monitor all safeguards implementation (environmental, social, gender) during construction, specified in the project documents as well as preparation of reports on the safeguards for the PPMU.(Figure 2). 24. Concerning the Contractor’s composition, almost in all subprojects Contractor’s Engineers, who are responsible for H&S and environmental safeguards implementation at construction sites, implement Ecologists’ role. They conduct environmental audits on project sites and trainings for workers. Designated Contractors’ Environmental Specialist are in charge for preparation environmental monitoring reports as well. 25. Noticeable changes in institutional set up took place after optimization process which was implemented within Decree of Cabinet of Ministers of Republic of Uzbekistan # 334 dated November 23, 2015 on “Arrangements on improvement of investment projects implementation mechanism with participation of International Financial Institutions” 26. Main changes were made in PIUs organization. Currently, no PIUs function in provinces, only PPMU regional Coordinators work in each province where the WSSSIP is being implementing. So there are no Environmental Specialists in PIUs from January 1,

2016. PPMU itself was renamed as “Project Coordination Unit” (PCU) and as it was mentioned above new Environmental Specialist was hired. 27. As of date of preparation of this report (February 2016), the institutional organizational structure mentioned above, underwent quite marked changes what can be seen in Figure 3.

Ministry of Finance of Uzbekistan Communal Asian Development Uzbekistan Services Agency Bank (Uzkommunhizmat)

PPMU Environmental Specialist

Supervision Consultant

Environmental Specialist

PIU PIU PIU PIU Karakalpakstan Khoresm Andijan Djizzak

Environmental and Environmental and Environmental and Social Environmental and Social Specialist Social Specialist Specialist Social Specialist

Contractors: Contractors: Contractors: Contractors: Supper Fortuna, LLC GS Neotek and Shindong JV 2-MKK, LLC Koshkopir Parranda Service, LLC Energcom Inc. 10-Qishloqqurilish-korhonasi, LLC JV Mega-Mebiko LLC

Figure 2: Institutional Chart of the Environmental Safeguards Performance on Tranche 3 before January 1, 2016

Ministry of Finance of Uzbekistan Communal Asian Development Uzbekistan Services Agency Bank (Uzkommunkhizmat)

PCU ADB Social and Environmental Specialist

Supervision Consultant

Environmental Specialist (not hired yet)

Regional Coordinator on Regional Coordinator on Regional Coordinator on Regional Coordinator on Implementation of ADB-funded Implementation of ADB-funded Implementation of ADB-funded Implementation of ADB-funded projects in Fergana and Andijan projects in projects in Republic of projects in Khorezm province provinces Djizzak province Karakalpakstan

Contractors in Andijan: Contractors: Contractors: Contractors: Supper Fortuna, LLC GS Neotek and Shindong JV 2-MKK, LLC Koshkopir Parranda Service, LLC Energcom Inc. 10-Qishloqqurilish-korhonasi, LLC JV Mega-Mebiko LLC

Figure 3: Institutional Chart of the Environmental Safeguards Performance on the Tranche 4 after January 1, 2016

1.4. Relationships with contractors, owner, lender

28. Sub-projects’ organization for awarded contracts under Tranche 3 is given in the Table 2. 29. The environment protection requirements were included in contracts (section В – Special Terms, paragraph 63). The documents describe requirements to the Contractor on observance of the environment-related national laws and statutory instruments. The Contractor’s responsibilities include requirements on: (а) approval of the functional system on environmental impact management, (b) implementation of the monitoring and mitigation measures specified in EMP, enclosed as the Annex 1, and required funds distribution. They also include the requirements on submission of semiannual reports on these measures implementation. 30. Despite requirements on SEMP development were not included in contract documents, Contractors on Tranche 3 prepared monthly Environmental Monitoring Reports on implementation EMP and submitted them to PIUs. 31. Four PIUs are involved in implementation of Tranche III – Andijan, Jizzakh, Khorezm and Karakalpakstan. Each PIU had a designated person responsible for environmental aspects. Based on monthly environmental monitoring reports prepared by Contractors and own observations this PIUs’ officers prepared quarterly EMR and submitted them to PPMU. Information about PIUs’ EMRs are presented in Table 3. 32. As shown in the table, almost all PIUs have submitted EMRs for 4th quarter and one (Jizzkhah) submitted for 3rd quarter as well. Andijan PIU’s EMRs were not submitted to PPMU. However, two EMRs were prepared by Contractor in Andijan city – “Supper Fortuna”. It should be noted, that Contractor’s EMRs also prepared in ADB format and provide information similar to other PIUs’ EMRs. Other Contractor’s EMRs were available at the relevant PIUs offices. 33. As per EMRs, PIUs’ specialists worked closely with Contractors and conducted joint environmental monitoring at the construction sites. During 4th quarter 2015, PIUs’ staff and representatives of Consultant – EPTISA conducted meetings with each Contractors staff and discussed environmental issues during project implementation. All PIUs’ EMRs for 4th quarter include copies of meetings minutes. 34. In addition, environmental monitoring groups were established in all PIUs. Each group consists of PIU’s environmental specialist and Technical Supervision staff, representing Consultant. The groups suppose to conduct environmental monitoring of each construction site based on schedule developed PIU’s environmental specialist and approved by PIU’s manager (Attachment 1). 35. Andijan PIU worked closely with local administration and community. Number of meetings were conducted with local communities in Andijan city where PIU’s representative introduced participants with planning civil works and mitigation measures to be undertaken during project’s work implementation. 36. Nukus PIU also collaborates with local administration and educational entities – schools, colleges and media for hygiene campaign as part of soft component of this project.

37. PPMU communicated with National and provincial level State Nature protection Committee in term of receiving all necessary Clearances and permission in accordance with national environmental legislation.

Table 2: List of awarded contracts under the Tranche 3

Project Location Contractors Contract Contract Subproject/ Supervision Signature Final Site Name Consultant No of the date Date Province District City Name of Contractor Contract

Djizzak Zafarabad Rehabilitation Eptisa 2825/CW/2 GS Neotek and 29.09.14 12.05.16 of Water Intake Servicious Shindong Energocom Facilities de Ingenieria Inc. Arnasay “Koytash, S.L. in WDC and association Networks in with UBI cities and rural Consulting, settlements of LLC Zafarabad and Arnasay districts of Djizzak province” Karakalpakstan Amudarya Improvement Eptisa 2825/CW/1.2 JV 2-MKK, LLC 11.02.15 04.08.16 of Water Servicious (Uzbekistan) Beruniy Supply System de Ingenieria

in Rural S.L. in 10-Qishloqqurilish- Kegeyli Settlements of association korhonasi, LLC the Republic of with UBI (Uzbekistan) Khodjeyli Karakalpaksta Consulting, n LLC Shumanay

Khorezm Yangiarik Improvement Eptisa 2825/CW/1.1 JV Koshkopir 11.08.15 01.09.16 of Water Servicious Parranda Service, Khiva Supply System de Ingenieria LLC in Rural S.L. in (Uzbekistan) Kushkupir Settlements of association Mega-Mebiko LLC

Project Location Contractors Contract Contract Subproject/ Supervision Signature Final Site Name Consultant No of the Province District City Name of Contractor date Date Contract

the Khoresm with UBI (Uzbekistan) region Consulting, LLC Andijan Andijan Rehabilitation Eptisa 2825/CW/3 Supper Fortuna, LLC 05.12.13 09.11.15 and Servicious Construction of de Ingenieria (Uzbekistan) (2nd Sewerage S.L. in Quarter Networks in association of 2016) Andijan city with UBI Consulting, LLC

Table 3: Information on the reports provided by PIUs to PPMU

# PIU, Designated Environmental Specialist Reported period Data of Submission

1 Andijan PIU N/a N/a N/a N/a

2 Jizzakh PIU, July-September 2015 October 2015 Ibragimov R. October – December December 2015 2015 3 Khorezm PIU, October – December December 2015 Jumaev R. 2015 4 Karakalpakstan PIU, October – December January 2016 Eshmuratov U. 2015

1.5. Project permitting status

38. National environmental expertise of each sub-projects under Tranche 3 was conducted at the Republican and province levels of Environmental Expertise Department. Summarizing information on received Environmental Clearance are presented in Table 4: Table 4: Summarizing information on received Environmental Clearance # Certificate Contract # Environmental Category Requirements included in # and data Expertise Env. Appraisal of issue Objective 1 # 18/785 2825/CW/3 Rehabilitation and 2 No further permissions / Construction of clearances are required September Sewerage Networks 13, in Andijan city 2016 2 # 542 2825/CW/2 Rehabilitation of 3 1. Development Environmental Water Intake Consequences Statement. September Facilities “Koytash, 9, 2. Ensure plug back 6 unused WDC and Networks wells 2011 in cities and rural settlements of Zafarabad and Arnasay districts of Djizzak province” 3 # 993 2825/CW/1.1 Improvement of 3 1. Development Environmental Water Supply Consequences Statement. September System in Rural 12, 2011 2. Ensure participation of Settlements of the Environmental Specialist during Khoresm region the project Hand over process. 4 #3-185/01 2825/CW/1.2 Improvement of 3 No further permissions are Water Supply required September System in Rural 9, Settlements of the 2011 Republic of Karakalpakstan

39. Issued Environmental Clearance for two projects in Djizzak and Khoresm provinces require development of next stage document - Environmental Consequences Statement. This document should be developed by relevant Vodokanals (Djizzakh and Khoresm) prior rehabilitated/constructed facilities will start operation. 40. For other two sub-projects in Karakalpakstan and Andijan provinces no further clearances are needed. Example of State Environmental Clearances is included in Attachment 2. 41. For all sub-projects permissions were received from State Nature Protection committee for disposal inert wastes generated during civil works. All Contractors concluded agreements with local municipal services on disposal communal wastes. 42. In accordance with ADB’s Safeguard Policy Statement, all sub-projects are classified as category B, because potential adverse environmental impacts are less adverse than those of category A projects. An initial environmental examination was required. 43. Initial Environmental Examinations (IEEs) for each sub-project were prepared by the Borrower to identify potential negative impacts to the environment and mitigation measures related to works on Tranche 3. IEEs for each subproject were published at ADB website in September 2011.

2. ENVIRONMENTAL MONITORING

44. EMPs for these sub-projects include two types of environmental monitoring: visual and instrumental. Visual monitoring is required for observation of the following parameters: dust, noise, transport, waste disposal, land clearing, water quality and traffic impacts (Attachment 3). In case of receiving any complaint on pollution air and deterioration water quality from communities, instrumental monitoring needs to be done. No complaints were received from communities for the reported period, therefore instrumental monitoring was not applied. 45. The Contractors used formats for monitoring generated and disposed wastes at municipal landfills (Attachment 4). In addition to this form, Contractor from Andijan (“Supper Fortuna”) used checklist for monitoring noise level, air quality and oils spills (Attachment 5). These forms are included in quarterly PIUs’ EMRs. 46. Forms consist of questions for each monitoring parameter with “yes” or “no” answers. However, in some cases answers need clarifications which could be included in graphs “Note”. 47. Emissions in air from vehicles calculated in accordance with national standards are provided in EMRs of Nukus, Djizzakh and Khoresm PIUs. The calculation based on number of techniques used during each quarter. According to calculation, emissions during the reported period did not exceed norms defined in Environmental Assessment report endorsed by State Nature Protection Committee. 48. EMR from Djizzakh PIU has a statement that noise measurements were done and the results met national sanitarian norms. However, attachment does not include results of these measurements. 49. Information on monitoring of water quality and soil pollution also included in environmental monitoring was available. 50. Not all EMRs contain information on consultations and GRM. Andijan and Nukus PIUs’ reports have such information. However, Fergana and Djizzakh PIUs’ EMRs miss such information.

3. SITE ENVIRONMENTAL MANAGEMENT PLAN IMPLEMENTATION

3.1 Environmental Management System

51. 4 SEMPs were developed based on EMPs included into IEE for each sub-project. They were not approved by PIUs. In most of the cases SEMPs are just a copy of EMP included in IEE. Current versions of SEMPs cover mitigation measures requiring for pre- construction and operation stages. Type of works for each sites have to be taken into consideration as well. For examples for construction new water supply infrastructure no needs to include measures on asbestos pipe disposal. These parts are not related to Contractors’ activity and could be deleted. 52. After approval SEMPs by PPMU, Contractors need to ensure availability of updated SEMP on each construction site and conduct training on its implementation. Currently there are no SEMPs on construction sites.

3.2 Inspection and audit 53. During the reporting period site inspections and audit were conducted at the two levels by: (i) Contractors’ Environmental Specialist, (ii) PIUs’ Environmental Specialists and SC. In addition, RETA Consultant visited project sites once for preparation this EMR. 54. As per PIU’s EMRs, Contractors’ designated person conducted daily monitoring of implementation of mitigation measures indicated in EMPs. Minutes of meetings included in PIU’s EMRs provide information about observed non-compliance and decision made by meetings’ participants to address non-compliance within 5 working days. 55. Contractor’s Environmental Specialists conducted weekly inspection of construction sites and checked realization of environmental mitigation measures. Andijan Contractor’s EMRs for 3rd and 4th quarters contain information about non-compliances observed during reported period. Such the report for 3rd quarter includes information on improper construction wastes management and not using Personal Protection Equipment (PPE) by workers. EMRs for 4th quarter noted about inadequate construction wastes disposal, particularly – refuses of plastic pipes. 56. As noted above, PIUs’ environmental specialists together with SC conducted audits of Contractors’ environmental performance based on schedule approved by PIUs’ managers (Attachment 1). The schedule indicates when and which site established monitoring group will visit. In accordance with these schedule frequencies of visiting sites varies from 2 weeks to 1 month among different PIUs. However, there are no track recording system on conducted monitoring and observations during such inspections in PIUs. 57. RETA Consultant has visited project sites under Tranche 3 in a period January 25-29, 2016 in Karakalpakstan, Andijan city, Khoresm and Djizzak provinces. 58. According to representatives of PIUs and Contractors, workers are local and living in the neighboring area, and there was no construction camp available in sites. On some sites workers have temporary trailers for storage their personal things and drying their clothes (Attachment 7, Figures 1-2). 59. There is no canteen on the territories of WDCs since the workers are local citizens and have lunch at home. 60. The construction materials required both for the WDS and municipal water supply networks rehabilitation were stored on the territory of WDS itself. Some sites had special places and containers for storage of construction wastes (Attachment. 7, Figure 3-4). 61. However, several WDSs inspection revealed presence of small and big piles of construction wastes, residues of construction materials on the territory, which, according to Contractors, would be removed after completion of all construction works. Some fuel and lubricants spreading was also revealed on WDSs territory, and it was recommended to Contractor to remove it in the nearest time (Attachment. 7, Figure 5-6).

62. Old metal pipes are collected and disposed by enterprise of water supply and waste water treatment (Vodokanal). It was noted that in some sites old equipment is still there and was recommended to hasten the removal (Attachment. 7, Figure 7-8).

63. The Contractors have official agreements with the local communal services on removal of construction and domestic wastes to the municipal landfill. Depending to the stage of

23 construction/reconstruction and remoteness of construction site from closest community, removal could be done once per week or 10 days.

64. All construction sites have first-aid kit available for workers and there are regular trainings on H&S conducted by Engineers (Attachment 7, Figure 9-10). Workers mostly have a special clothes and helmets and use them during working on sites (Attachment 7, Figure 11).

65. Summary of all observed non-compliance are presented in Table 5. The SEMPs were not available at the construction sites, but both SEMP and EMRs were in Contractors offices.

Table 5: Summary on observed non-compliance on construction sites

Site Description of non-compliance Photos

Khorezm, 1. No SEMPs on the construction site WDC 2. No complaints log book on construction “Akdarband” site 3. Fuel and lubricants spreading on site

Khorezm, 1. No SEMPs on the construction site WDC 2. No complaints log book on construction “Khosiyan” site

Khorezm, 1. No SEMPs on the construction site WDC 2. No complaints log book on construction “Khayrabad” site 3. Old unused equipment on site

Karakalpakstan, 1. No SEMPs on the construction site WDC-1 2. No complaints log book construction site

Karakalpakstan, 1. No SEMPs on the construction site RU-1 2. No complaints log book construction site

Karakalpakstan, 1. No SEMPs on the construction site WDC-1 2. No complaints log book construction site 3. Existence of black pitch from broken package on soil on site 4. Fuel and lubricants spreading on site 5. Existence of used barrels from oil and fuel on site

6. Old unused equipment on site

Karakalpakstan, 1. No SEMPs on the construction site WDC "Mamiy" 2. No complaints log book construction site 3. Old unused equipment on site

Djizzak, 1. No SEMPs on the construction site WDC-2 2. No complaints log book construction site 3. Bins for wastes is situated outside of WDC, but it is without bottom, on soil

Djizzak, 1. No SEMPs on the construction site WDC 2. No complaints log book construction site "Timiryazev"

Andijan, 1. Non-fenced territory and absence of using special warning signals, light reflecting signs Waste water and safety tapes. Collector #2 was not system on closed, solid wastes were inside Khokimov str.

Andijan, 1. Ineffectively fenced territory with safety tapes and absence of using special warning Western signals, light reflecting signs Collector

Andijan, 1. Ineffectively fenced territory with safety tapes and absence of using special warning Waste water signals, light reflecting signs system on Ferghana str.

3.3 Consultation and complaints 66. Information about activities under sub-projects of Tranche 3 is available in each subproject site. Informative Banner with brief description and objectives of project, implementers, schedule of construction works, deadlines and contact information were placed in the area close to construction site. 67. Contractors and PIUs work closely with local communities in order to inform project activities. In Andijan city meetings with representatives of local administration, communities were conducted on monthly base where project works, schedule of their implementation were discussed. 68. In Nukus city PIU collaborates with educational and health entities as part of soft component of WSSP and prepare brochures with brief information about the project, sanitarian aspects of drinking water quality, gender aspects. The brochures are prepared in local Karakalpak language. 69. In project districts created a Social Commission Unit under the local khokimiyats and Information Centers under Vodokanals. Members of this Unit participated at the PIUs’ meetings with local communities where safeguards and gender aspects were discussed. Information about such meetings are included in Andijan Contractor’s EMR. Other EMRs do not have such information. 70. According to the Contractors and PIUs, there were no any complaints from the local citizens regarding the noise from construction site. But it should be noted that there were no book of complaints and suggestions available either on the territory of construction sites, Contractors and PIUs offices.

4. CONCLUSION AND NEEDED ACTIONS

71. Based on results of conducted audit the following conclusions were made: 72. In general, there are noticeable improvements in PIUs’ environmental performance and quality of developed EMRs. PIUs’ designated staff conducts site inspection on SEMP implementation, they work with communities on informing about project works. 73. For all sub-projects national environmental clearances were received and IEEs were published at the ADB web-site. Necessary permissions were received for wastes disposal on municipal landfills and designated places. Contractors prepare quarterly EMRs with using formats and submit them to PIUs. 74. Along with this, in order to bring environmental performance at the level satisfactory with ADB and national standards, enhancement in staffing of PIUs, improvement in track recording system and documentation of environmental performance, implementation of SEMPs have to be done. To achieve this, actions provided in the Table 5 need to be done:

Table 5: Recommended actions

# Actions Responsible Date of completion 1 Supervision Consultant has to complete Supervision April 11, 2016 process of hiring Environmental Specialist Consultant and and this specialist has to start assisting to PPMU PPMU and PIUs in monitoring SEMP implementation and capacity building activity 2 Current PIUs’ staff consisted of one UCSA Per PPMU’s decision project coordinator for each site maybe not enough for effective environmental performance. Therefore, hiring one additional safeguards specialist for each PIU will be necessary 3 Track recording system and PIU, PPMU May 1, 2016 documentation of environmental performance in PIUs and PPMU need to be improved. Particularly, information about site inspections with indication when, where and with whom sites were visited has to be kept in the system. Existing formats of schedule for conduction environmental monitoring of sites (Attachment 8) could be used for non-compliances monitoring, but the formats need to be properly filled with indication observed non-compliance and needed actions. 4 It is expected that Andijan sewage SC Environmental Within one month of system project (2825/CW/3) will be Specialist or PIU completion civil works completed in 2nd quarter of 2016 (Table 2). Andijan PIU has to conduct post- construction audit to make sure that all civil works are completed in compliance with environmental requirements. 5 It is recommended to Contractors use Contractor From April 2016 formats (checklists) for monitoring of SEMP implementation. Formats for monitoring SEMP could include the following information: list of all mitigation measures, status of each measures implementation (yes or no) and one more column with notes which will be filled as required. Such formats should include

information about non-compliances with SEMPs and actions undertaken to fix them 6 Contractors have to use formats for Contractor From April 2016 environmental monitoring. Formats for monitoring of noise, dust, oil spills and wastes currently used by some of Contractors (in Andijan and Djizzakh), could be implemented by other contractors as well. 7 Contractors need to ensure existence of Contractors 15 April 2016 complaints logbook on each construction sites 8 Non-compliances observed during RETA Contractor June 2016 Consultant site visits and described in chapter 3.2. need to be addressed and information about it undertaken actions need to be included in next EMR (January-July 2016) 9 Information about implementation PPMU Within one month requirements indicated in Environmental after approval of each Appraisal for each project and submission EMR previous EMR to be disclosed to public through UCSA website