______Bi-annual Environmental Monitoring Report

Project Number: 42145 January-June 2011

Armenia: North-South Road Corridor Investment Program, Tranches 1 and 2 (Financed by the ADB)

Prepared by the “Organization for Implementation of North-South Road Corridor Investment Program” State Non-Commercial organization

This report does not necessarily reflect the views of ADB or the Government concerned, and ADB and the Government cannot be held liable for its contents.

Part I Introduction

Project Progress during previous 6 months

The North-South Road Corridor (NSRC) runs 556km from the border with Georgia at Bavra via Gyumri, Ashtarak, Yerevan, Goris, and Kapan, to the border with Iran at Meghri. It is 2-lane throughout, with the exception of an 18km length on the M-1 (Yerevan–Ashtarak) and the M-2 (Yerevan–Ararat section), which are dual 2-lane. The objective of the proposed MFF is to provide a high-quality North–South Road Corridor (NSRC) from the Georgian border to the Iranian border. The Bavra–Gyumri–Yerevan– Goris–Kapan–Agarak route will, after the improvement of adjoining sections in Georgia in 2010, provide the principal connection to the Black Sea ports of Poti and Batumi, and route for transit traffic to Turkey. Internationally, the NSRC provides a transit corridor from Georgia to Iran. However, currently there is little transit traffic and potential is limited due to alternative routes through Azerbaijan and Turkey. The NSRC’s strategic importance derives from Armenia’s closed eastern and western borders as well as Georgia–Russia border. In the south, the M-2 provides the only land connection with Iran (the rail link through Nakhichevan is closed). Most international freight transport is by rail and pipeline. Cross-border road freight traffic is relatively light and predominantly inbound. There is little long distance domestic road freight. Short haul freight is primarily of construction materials. Most international passenger traffic is by air. There are a few international bus services to Turkey, Iran and Georgia, and a rail link to Tbilisi. Trade with neighbors Turkey, Iran and Georgia is a small proportion of the total, accounting for 10% of exports by value in 2008 and for 14% of imports. Trade with Turkey is restricted by the border closure, which severed the rail link, necessitating a long and expensive detour through Georgia, but imports doubled in value 2007–2008. The direct road and rail routes to Iran were also cut by the border closures, obligating the use of the M-2, which crosses high passes in the south.

No construction activities have been implemented since the start of the Program. The Environmental Assessment Review Framework has been developed for Program Tranche 1 and approved by the RA Government on 25/11/2009. The Environmental Impact Assessment Report with Environmental Management Plan has been developed for Tranches 2 and 3, and then has been revised and finalized by Egis International for the Tranche 2.

Changes in project organization and Environmental management team

The Executing Agency (EA) is the Ministry of Transport and Communication (MOTC). The MOTC set up a North-South Road Corridor Investment Project Implementation Unit SNCO (in total 23 specialists) to manage day-to-day coordination, implementation, monitoring and administration activities of the project. No changes to the project organization structure occurred during reporting period. Project Implementation Unit

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includes Department on Safeguards, Resettlement and Environment consisting of 3 persons. The unit consists from the Head of the Safeguards, Resettlement and Environment Unit, Resettlement specialist and Specialist on meetings with beneficiaries and PR. There were some changes in the staff; in particular, two new specialists (Resettlement specialist and Specialist on meetings with beneficiaries and PR) have joined the team.

 Relationships with Contractors, owner, lender, etc.

During the reporting period the “Organization for implementation of North-South Road Corridor Investment Program” SNCO closely collaborated with Egis International to review and finalize the Environmental Impact Assessment Report with Environmental Management Plan for the Tranche 2 (Ashtarak-Talin road section) of the Program.

Part II Environmental Monitoring

Given that no construction works have been implemented since the commencement of the Program, it should be noted that no on-site monitoring activities were needed to be conducted. After starting construction works, separate reports will be prepared for Tranches 1 and 2. In the meantime, the Head of Unit on Safeguards, Environment and Resettlement of the “Organization for implementation of North-South Road Corridor Investment Program” SNCO closely worked with the local Environmental Specialist of the Egis International to finalize the EIA and EMP, including joint site visits, update of available information, review of draft EIA and EMP

Part III Environmental Management

 EMS, SSEMP and work plans. During the reporting period the Monthly progress reports submitted by Egis have been reviewed, as well as the revised EIA and EMP report for Tranche 2 was thoroughly reviewed to make sure all the project details are updated and presented in accordance with requirements of RA legislation and ADB’s policies.

 Site Inspections and audits. During the reporting period several joint site visits have been carried out by the Head of Unit on Safeguards, Environment and Resettlement of the “Organization for implementation of North-South Road Corridor Investment Program” SNCO closely worked with the local Environmental Specialist of the Egis International to verify the location of ecoducts.

 Non-compliance notices N/A for the reporting period 3

 Corrective action plans.

N/A for the reporting period

 Consultation and complaints. The final EIA and EMP report have been shared with the “Organization for implementation of North-South Road Corridor Investment Program” SNCO and ADB for review and then have been submitted to the Environmental Expertise SNCO of the Ministry of Nature Protection of the Republic of Armenia in June 2011. As a part of the EIA review process by the Environmental Expertise SNCO of the Ministry of Nature Protection, public consultations will be scheduled and carried out in the month of July 2011.

Annex

Photographs from the joint site visits carried out by the Head of Unit on Safeguards, Environment and Resettlement of the “Organization for implementation of North-South Road Corridor Investment Program” SNCO closely worked with the local Environmental Specialist of the Egis International:

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