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Uzbekistan: Cotton Farming Project Volume II - Impact Assessment

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Uzbekistan: Cotton Farming Project Volume II - Impact Assessment Uzbekistan: Cotton Farming Project Volume II - Impact Assessment 16 December 2020 Mott MacDonald 71 Sadovnicheskaya Embankment Moscow 115035 Russia T +7 (495) 981 5665 mottmac.com European Bank for Reconstruction and Development Uzbekistan: Cotton Farming Project Volume II - Impact Assessment 16 December 2020 Mott MacDonald R LLC registered in Russia number 1077758264165, INN 7706664782. A member of the Mott MacDonald Group. Mott MacDonald | Uzbekistan: Cotton Farming Project Volume II - Impact Assessment Issue and Revision Record Revision Date Originator Checker Approver Description A 09.10.19 S. Goncharov A Strokina M Melinte First Draft ESIA Report E. Mokrinskaya A. Niesslein O. Vakhidova- Mordovina L. Belialova L. Horroks B 25.01.20 A Strokina H. Mills M Melinte Second Draft ESIA Report S. Goncharov T Streather E. Mokrinskaya A. Niesslein O. Vakhidova- Mordovina L. Belialova L. Horroks C 21.02.20 A Strokina T Streather M Melinte Third Draft ESIA Report S. Goncharov L Morton E. Mokrinskaya M Rowan D 28.02.20 A Strokina T Streather M Melinte Forth Draft ESIA Report S. Goncharov L Morton E. Mokrinskaya C Millis M Rowan H Mills E 03.04.20 A Strokina T Streather M Melinte Fifth Draft ESIA Report S. Goncharov L Morton E. Mokrinskaya C Millis G 28.09.20 A Strokina T Streather M Melinte Final ESIA Report. Second revision H 16.12.20 A Strokina T Streather M Melinte Final ESIA Report for disclosure Document reference: 42484 | 04 | H Information class: Standard This document is issued for the party which commissioned it and for specific purposes connected with the above- captioned project only. It should not be relied upon by any other party or used for any other purpose. We accept no responsibility for the consequences of this document being relied upon by any other party, or being used for any other purpose, or containing any error or omission which is due to an error or omission in data supplied to us by other parties. This document contains confidential information and proprietary intellectual property. It should not be shown to other parties without consent from us and from the party which commissioned it. This report has been pr epared sol ely for use by the party which c ommissi oned it (the ‘Client’) in c onnecti on with the captioned project. It should not be used for any other purpose. No person other than the Client or any pa rty who has expressl y agreed term s of r eliance with us (the ‘Reci pient(s)’) may rely on the content, informati on or any vi ews expre ssed in the repor t. We acc ept no duty of care, res ponsi bility or liability to any other reci pient of this document. This repo rt is confidential and c ontains propri etar y intell ectual property. 42484 | 04 | H | | 16 December 2020 Mott MacDonald | Uzbekistan: Cotton Farming Project Volume II - Impact Assessment List of Abbreviations Abbreviation Description ACs − Affected communities AIS − Alien Invasive Species ECHA − The European Chemicals Agency APC − Approximate permissible concentrations AoI − Area of Influence BAT − Best available techniques BCI − Better Cotton Initiative CEMP − Construction Environmental Management Plan CO − Carbon monoxide Company − FE “Indorama Agro” LLC Consultant − Mott MacDonald Limited and Ecostandart Expert CSOs − Civil society organisations CSR − Corporate Social Responsibility CTMP − Construction Traffic Management Plan DEMP − Decommissioning Environmental Management Plan GDP − Gross Domestic Product GHG − Greenhouse gas GII − Gender Inequality Index Goskomekologiya − State Committee of the Republic of Uzbekistan on Ecology and Environmental Protection GoU − Government of Uzbekistan E&S − Environment and social EBRD − European Bank for Reconstruction and Development EHS − Environmental, health and safety EIA − Environmental impact assessment EPRP − Emergency Preparedness and Response Plan ESIA − Environmental and social impact assessment ESMP − Environmental and Social Management Plan ESP − EBRD’s Environmental and Social Policy EU − European Union FGDs − Focus Group Discussions Ha − Hectare HMZ − Hydro Module Zones IARC − World Health Organization's International Agency for Research on Cancer IBAs − Important Bird Areas IFC − International Financial Corporation IFIs − International Financial Organisations ILO − International Labour Organization International Lenders − European Bank for Reconstruction and Development and International Financial Corporation IP − Indigenous Peoples IPPC − Integrated pollution prevention and control ISBA − Irrigation System Basin Authorities i-SEP − Interim Stakeholder Engagement Plan Law on Environmental Expertise − Law of the Republic of Uzbekistan No.73-II3 of 14.09.2017 "On Environmental Expertise" 42484 | 04 | H | | 16 December 2020 Mott MacDonald | Uzbekistan: Cotton Farming Project Volume II - Impact Assessment Abbreviation Description LLA − Land Lease Agreement LRP − Livelihood Restoration Plan MML − Mott MacDonald Limited (UK) MPC − Maximum permissible concentrations MSDS − Material Safety Data Sheet NGOs − Non-governmental organisations NTS − Non-Technical Summary PER − Public environmental review PPE − Personal Protective Equipment Project − Cotton Farming Project in Uzbekistan PSs − IFC Performance Standards PTL − Power transmission line PU − Producer Unit RAP − Resettlement Action Plan RoU − Republic of Uzbekistan RPF − Resettlement Policy Framework SCR − Summary Consultation Report SCSS − Sustainable Cotton Standard System SEC − Statement on Environmental Consequences SEE − State Environmental Expertise SEE Degree − Decree of the Cabinet of Ministers of the Republic of Uzbekistan of 22.11.2018 No.949 "On Approval of the "Regulation on State Environmental Expertise in the Republic of Uzbekistan" SEP − Stakeholder Engagement Plan SIA − Social impact assessment Sponsor − Indorama Corporation Pte. Ltd. SUE − State Unitary Enterprise SWMP − Site Waste Management Plan UNDP − United Nations Development Programme UZS − Uzbek Soums Uzhydromet − Centre of Hydrometeorological Service at Ministry of Emergency Situations of the Republic of Uzbekistan WUA − Water Users Association ZoI − Zone of Influence 42484 | 04 | H | | 16 December 2020 Mott MacDonald | Uzbekistan: Cotton Farming Project Volume II - Impact Assessment Contents Executive summary 1 1 Project Description 14 1.1 Project Location and Footprint 14 1.1.1 Land Acquisition for Direct Farming 15 1.1.2 Supply Chain Land for Contract Farming 17 1.1.3 Land Already Acquired for the Project (Phase I) 18 1.1.4 Land to be Acquired for the Project (Phase II) 19 1.1.5 Description of the Approach for the Completed Land Acquisition Process (Phase I) 20 1.1.6 Summary of Farms Affected by Project Land Acquisition 22 1.1.7 Summary of Cash Compensation Paid by the Company to Farmers for Improvement Works 23 1.1.8 Summary of Assets Subject to Compensation 23 1.2 Project Components and Technologies 23 1.2.1 Project Farming Model 23 1.2.2 Key Project Components 24 1.2.3 Project Processes and Technologies 27 1.3 Existing Operations and Infrastructure 36 1.3.1 Irrigation Infrastructure 36 1.3.2 Drainage Infrastructure 36 1.4 Associated Facilities 36 1.5 Need for the Project 37 1.6 Alternatives Analysis 38 1.7 “No Project” Alternative 39 1.8 Project Category 41 2 Legal Requirements and International Standards 42 2.1 National Legal and Institutional Framework 42 2.1.1 National Environmental and Social Policy 42 2.1.2 National Environmental Legal Framework 42 2.1.3 International Environmental Conventions and Agreements 43 2.1.4 National Environmental Impact Assessment Process 44 2.1.5 Land Acquisition Laws 46 2.1.6 Labour and Working Conditions Laws 50 2.1.7 Gender Context and Equal Opportunities 52 2.1.8 Community Health, Safety and Security Laws 52 2.1.9 Cultural Heritage Laws 52 2.2 Applicable International Requirements 52 2.2.1 European Bank for Reconstruction and Development 53 2.2.2 International Financial Corporation 53 42484 | 04 | H | | 16 December 2020 Mott MacDonald | Uzbekistan: Cotton Farming Project Volume II - Impact Assessment 2.2.3 International Labour Organization 54 2.2.4 EU Directives and Standards 54 2.2.5 Best Available Techniques 55 3 Assessment Scope and Methodology 56 3.1 Approach 56 3.2 Scoping Assessment 57 3.3 Potential Impacts 57 3.4 Impact Assessment Methodology 59 3.4.1 Baseline 59 3.4.2 Spatial Scope 59 3.4.3 Temporal Scope 60 3.4.4 Area of Influence 60 3.4.5 Assessment of Impacts 60 4.6.1 Overview 60 3.4.6 Magnitude 60 3.4.7 Sensitivity of Receptors 61 3.4.8 Impact Evaluation and Determination of Significance 61 3.4.9 Assessment of Cumulative Impacts 62 3.4.10 Proposals for Monitoring 62 4 Information Disclosure, Consultation and Participation 63 4.1 Overview 63 4.2 Principles of Consultation 63 4.3 Consultation Requirements 64 4.3.1 Overview 64 4.3.2 National Consultation Requirements 64 4.3.3 International Consultation Requirements 64 4.4 Stakeholder Identification 66 4.5 Project Consultation Activities and Outcomes 70 4.5.1 Overview 70 4.5.2 Local Community Representatives 70 4.5.3 Women’s Affair Committees 70 4.5.4 Community Liaison Officers 70 4.5.5 Interaction with NGOs 71 4.5.6 ESIA Consultation and Disclosure 71 4.5.7 Consultation Planned throughout the Lifetime of the Project 78 4.6 Community Engagement and Community Asset Programmes 78 4.7 Project Grievance Redress Mechanism 79 4.8 Confidentiality and Anonymity 79 4.9 Grievance Reporting and Resolution 80 5 Social Impact Assessment, Management and Monitoring 83 5.1 Methodology and Assessment Criteria 83 42484 | 04 | H | | 16 December 2020 Mott MacDonald | Uzbekistan:
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