Environment Management Plan - an Investmeqt Program of Water & Sewerage SPLLC-Tagovishte

REPUBLIC OF BULGARIA Public Disclosure Authorized MINISTRY OF REGIONAL DEVELOPMkNT AND PUBLIC WORKS

MUNICIPAL INFRASTRUCTURE DEVELOPMENT

PROJECT

DRAFT ENVIRONMENT MANAGEMENT

Public Disclosure Authorized PLAN /EMPI

VOL. 5 Public Disclosure Authorized

Investment Program of Water & Sewerage SPLLC - Targovishte

I October, 2007 Public Disclosure Authorized

Omonit Consult LLC, 17 G. Benkovski Street, Sofia 1000 iphone.: 021980-21-16; fax: 021980-04-68 Environment Management Plan - an Investment Program of Water & Sewerage SPLLC - Targovishte

TABLE OF CONTENTS

General ...... 3 1.1 Purpose of the Project ...... !, ...... 3 1.2 Bank's Requirements and Documents...... ; ...... 3 1.3 Role of the EMP ...... 4 2 Initial Information Review...... 5 2.1 Selection Principle for Projects included in thp lnvestment Program of Water & Sewerage SPLLC - Targovishte Projects for the Peridd 2008-2012...... 5 2.2 Brief Description of Projects Included in the 'Investment Program of Water & Sewerage SPLLC - Targovishte...... 5 I 3 Analysis of the possible environmental impacts oqthe Project ...... 6 . . 3.1 Positlve impact ...... 7 3.2 Adverse Impacts ...... 7 3.3 Adverse Impacts during Construction ...... 8 3.4 Adverse Impacts during Operation ...... I...... :. ... 1 1 4 Mitigation Measures against Potential Environmeptal Impacts due to Implementation of the Investment Program - during the construction phase and during the operational phase...... 1 I 5 Monitoring ...... 14 5.1 Monitoring and Control during the Construction ...... 14 I 5.2 Monitoring and Control during the operatio? ...... 15 6 Conclusions and Steps Recommended to Ensure Performance of the EMP...... 16 7 Consultations and Public Discussions - Discussiqn of the Positive and Adverse Impacts, Routine Consultations and NGO ...... 16

APPENDICES:

Annex 1 Contract Provisions Annex 2 Environmental Impact Mitigation Pr~gram for the Construction and Operation Phases Annex 3 Construction Phase Monitoring Program ' Appendix A - Normative Documents Applicable to the Project Appendix B - Abbreviations Used Layout of the water supply system of Ticha Dam Photos of typical sites of routes and facilities

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General

The government of R. Bulgaria requested tbe World Bank's assistance in financing of activities related to the Municipal Infrastructure Development Project which will help Bulgaria to comply to the European Union's directives on potable and waste water and the environmental protection factors in the investment schemes that will be acceptable and eligible for financing from the European Union's Structural Funds and are not covered by other EU grants. The Project, part of which is this Environment Management Plan /EMPI, encompasses the conqpletion of water-supply dams (Neykovtsi, Plovdivtsi and Luda Yana) where construction was suspended in the last decade, and rehabilitation of the wall of an operating dam (Studena Dam), as well as rehabilitation of the water supply system of six companies providing water supply and sewerage services (Dobrich, Razgrad, Sliven, Smolian, Stara Zagora and Targovishte).

1.1 Purpose of the Project

The general purpose of the Project is to ensure better water supply and responsible use of the water resources underlying the state policy for sustainalble development of the water sector. That objective is combletely in the spirit of the National Strategy of Bulgaria for Environmental Protectiod (2005 - 2014) that envisages ,,provision of good-quality water and sufficient water supply for all purposes".

The purpose of the Project will be achieved by beans of:

a) improvement of the conditions of water(supp1yfor domestic & drinking needs in selected regions; a. ensuring the required quantity and qual~ityof potable water; b) reduction of losses in the water supply qetwork; c) improvement of the reliability and efficiency of water supply systems and facilities; d) provision for environmental requiremeits and regulations with respect to the systems; e) enhancement of the management and oberating capability of operators.

I 1.2 Bank's Requirements and Documents. I

The overall environmental category of the p'FoposedProject is A in line with Bank policies with individual investments that belodg to both category A (the proposed dam completion activities and category B (the rehabilitation of water networks). Based on the proposed Project Investmeqts the following World Bank's safeguards policies and procedures are triggered: OPIBP 4.01 Environmental Assessment; OPIBP 4.12 involuntary Resettlement; OPIBP 4.37 l~afery of Dams; and OPIBP '7.50 Omonit Consult LLC, 17 G. Benkovski Street, Sofia 1000 phbne.:02/980-21-16; fax:02/980-04-68 3 Environment Management Plan - an Investment Program of Water & Sewerage SPLLC - Targovishte

Projects on International Waterways. Furthermore, adequate protection and maintenance of ecosystems downstream of the dams should be assessed during project preparation to determine the relevance of the OPIBP 4.04 Natural Habitats and OPIBP 4.36 Forestry safeguard policies. Also, given the possibility that proposed water companies might implement projects in cities with historic districts, the OPN 11.03 Cultural Property safeguard policy might be triggered. The following documents will be prepared by the Government of Bulgaria prior to project appraisal: (1) Environmental Framework of the Project (EF) for all proposed subprojects; (2) Environmental Due Diligence Report (EDR), including, in summary, assessment of the site conditions and assessbent of the possible environmental impacts related to completion and operation of thle proposed three dam sites; (3) Environment Management Plans (EMP) on investment in rehabilitation of the water distribution networks in which the contract provisions for construction works will be specified /See Annexes 1, 2 and 31 related to applicaltion of the technical standards and other requirements relevant to the construction phape. 4) project Land Acquisition Policy Framework that will outline the process to be followed in case there is land acquisition needed for the project; and (5) Social Due Diligence for the three dam sites that presents an overview of the past land acquidition process carried out by the Government.

1.3 Role of the EMP

The present Environment Management Plan was developed by the Consultants Team of Omonit Consult LLC by assignment of the Ministry of Regional Development and Public Works (MRDPW) and contains a main, explanatory part, Contract Provisions /Annex11 on environmental protection, $nvironmental Impact Mitigation Program /Annex21 including appropriate environmlental protection measures that will help to mitigate the negative impacts arising fiom the construction of new facilities and rehabilitation of the water supply system of Wateq & Sewerage SPLLC Targovishte, and the attendant costs, as well as an Environmental Monitoring Program /Annex 31, pointing out to the parties in charge of the implementation of that program that, in the detailed documents of the works, they shall ensure adherence to all provisions related to environment and to the correct implementation of all environmental protection measures. The monitoring Plan includes information on the inspections in the course of realization, internal and external monitoring and assessment, as well as a reporting system. The plan presents cost estimates of the environment management measures and the time schedule of their performance.

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2 Initial Information Review.

2.1 Selection Principle for Projects included in the Investment Program of Water & Sewerage SPLLC - Targovishte Projects forthe Period 2008-2012.

Selection of the sites proposed for financing from the loan granted by the World Bank was performed after analysis and assessment of the condition of the individual components of the water supply systems serving all inunicipalities within Targovishte District - Targovishte Municipality, Antonovo Municipality, Omurtag Municipality. Currently, an investment project is being developed for the town of Targovishte for the purpose of improving the Water and Sewerage (W&S) infrastructure in the town with EU financing. The proceeds from that grant will be used to rehabilitate and rebuild 90% of the town's network and the losses of water fed from Ticha Dam will be reduced. That enhances the currently existing non-utilized capacity of the dam and of Preslav Pump Station (PS). The conceptual design assignejd at the present phase for full utilization of the capacity of the Preslav System will also define the particular projects to be financed under the present project from the World Qank loan. Provision of sustainable water supply through rational utilization of the dam . water, quality improvement, expansion of the scope of the water supply service provided, and reduction of the high percentage of losses (reaching 70% of the quantity fed to the pump system and up to 15% of that fed to the gravity system) the number of the residents affected by water supply interruptions are the criteria by which priorities were defined in the selection of sites in the Investment Program of W&S Targovishte SPLLC. With total number of the served residents 103 229, the poor quality of the water supply service (water supply interruptions) affects the towns Targqvishte, Omurtag, and the villages Kralevo, Pevets, Dulgach, Nedarevo, Ovcharovo, Bayachevo, Probuda, Alvanalvo, Zdravets, Lilyak, Ruets, Momino, Razboyna and Strazha (about 55 thousand residents). As a whole, the region's environment is not po(l1utedmainly due to the absence of pollution sources and the priority assigned to development of agriculture instead of industry. The pollution (of water, air and soils) caused by a set of anthropogenic impacts are neutralized naturally, thanks to the stable quality of the natural environment and its fast recreation capability.

2.2 Brief Description of Projects Included in the Investment Program of Water & Sewerage SPLLC - Targovishte.

Centralized water supply in Targovishte District is provided to all 196 settlements. The water supply is mainly of the pump type sefved by a considerable number of reservoirs and pump stations, with total length of tHe pump system network 1245 km. Part of the settlements have a gravity type water supply. The total network length of that system is 190 km. The water supply network was built using mainly asbestos-cernent pipes with expired service life and high wear rate causing serious water losses (70%) The

Omonlt Consult LLC, 17 G. Benkovski Street, Sof~a1000 pnone.:02/980-21-16; fax:02/980-04-68 5 Environment Management Plan - an lnvestment Program of Water & Sewerage SPLLC - Tarpovishte discharge rates of water sources in the service territory of the W&S operator depends on the precipitations and in the cases of prolonged draughts water rationing has to be imposed. According to statistical data the relative shafe of the population with irregular water supply in the region is much lower than the average for the country (about 15%). The rationing regime in Omurtag Municipality is the most severe; about 80% of the population there is not provided with uninterrupted water supply. Raw water is drawn from a surface water source - Ticha Dam and from 321 underground water sources (drainages, captations, pits and deep drill wells) and is fed1 to the consumers only after disinfection. The potable wafer for Targovishte runs through a microfilter ozonating station. The quality of the ground and surface waters is adversely affected by the unfinished sewer networks and town waste water treatment plants (TWWTP) and by the application of bad agricultural ptactices. Deviations from the physico-chemical indica\ors are most frequently observed with respect to raw water turbidity and color, includiog that in the Ticha Dam. All over the region the waters are characterized by high hardnkss and come under the categories "hard" and "very hard" waters. The values of hardness indicators in the water sources supplying water to the villages Buhovtsi, Bistra, ~vdrdintsi,Buinovo and Miladinovtsi exceed I3mgZqll. The increased nitrate content is andther serious problem of the quality of raw water. By microbiological indicators, the raw water is within the permissible pollution limits. One exception in that regard is the raw wateq from Ticha Dam which indicates more significant deviations from the microbiolo cal indicators in the event of considerable reduction of the available capacity $: of the dam, especially in the summer/autumn season. The program envisages rehabilitation and building of pressure tanks, pump and chlorinating stations, head water mains and street hater supply networks in regions suffering of frequent accidents and poor quality of the water supply service. With its implementation, the service standard will be idproved and the requirements of Regulation No. 91 16.03.2001 on potable water quality will be met. The total length of head water mains subject tb rehabilitation and construction in the Municipality of Targovishte is 5 1 000 m wlth diimeters 160 mm - 300 mm, and the total length of the street water supply network ( SW) is 149 620 m with diameters 90 mm - 250 mrn. In Omurtag Municipality, 13 400 m ?f street water supply network with diameters 90 mm - 110 mm will be replaced. Th$ respective number of water main branch-offs and local water piping (LWP) for the bui 'dings will be provided The Program envisages funds for design, cob struction supervision and National Construction Supervision, transport vehicles and small mechanical equipment.

3 Analysis of the possible environmentbl impacts of the Project

The analysis is based on the present state of components and environmental factors, and their possible development in connection with the investment intentions of W&S SPLLC, Targovishte for the reconstruction of water supply facilities in the Targovishte I Omon~tConsult LLC, 17 G. Benkovsk~Street, Sof~a1000 phone.:02/980-21-16; fax:02/980-04-68 6 Environment Manapement Plan - an Investment Program of Water & Sewerage SPLLC - Targovishte

District. The main problems, conclusions, recommendations and mitigation measures are defined in conformity with the goals defined in the Terms of Reference (TOR).

3.1 Positive impact

With the modernization and development of the water-supply infrastructure, water rationing is avoided which, on the one hmd, will lead to more efficient management of the water supply system, and is, on the other hand, of great significance to human health and improvement of the local residents' quality of life. 3.1.1. Positive environmental impact - Reasonable consumption of water resources is of primary importance not only to this but also to the future generations. With implementation of the projects actual reduction of unreported water flows will be achieved which will result in reduction of the water quantities delivered at the inlet end of the water supply system and ecologic resource economy. The smaller number of accidents guarantees also operation reliability. The replacement of asbestos cement and steel pipes by pipes made of high- density polyethylene (HDPE) permits application of modem pipe laying technologies while eliminating, in the process of operation, the heal'th risk for consumers arising from secondary pollution of the potable water. 3.1.2. Positive social impact - The proposed Program fits successfully into the regional strategy for balanced and sustainable development of Targovishte District, with actual contribution to improvement of the quality of provided water supply service to the population of the selected municipalities - Targovishte and Omurtag. It is expected that with implementation of the project, a solution for some serious and intensifying problems will be achieved to a large extent. The existence of intra-regional differences and Idistinctly problematic territories in the district define areas that should be given priority for result-oriented action for the purpose of their convergence. Improvement of the town environment and the related less urban territories creates favorable conditions for qevelopment of the local tourist business. Opening of temporary jobs at the constructidn works is a prerequisite for social and economic stabilization of the respective region.

3.2 Adverse Impacts ,

During the construction phase The territories coming under the easement of head main routes will be affected mainly during the construction phase due to the increased emissions of certain noxious substances, fine dust particles and other pollutants generated by the operation of earth-moving buildind machines and transport activities, handling of earth and bulk building material, layer compaction, etc. During the operation phase A negative impapt on the landscape, natural habitats of rare species and common heritage can be expecied mainly as a result of accidents andlor incidents.

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3.3 Adverse Impacts during Construction

The negative impacts during construction are mainly direct, temporary (within the construction phase), short-time and localized, without any cumulative effect.

3.3.1. Due to the nature of the contemplated works

Disrupted water supply in the region of activities. Potential deterioration of potable water quality upon a change in the water supply arrangements. Scattered materials and machines on the constructi~nsitcs- pipes, reinforcement iron, pieces of castings, damaged building machines, etc.; creation of unregulated disposal sites for construction debris and spoil material. Inappropriate methods of work and waste treatment in the case of asbestos-cement pipe replacement. Disruptions of the transport traffic and the attendanlt inconvenience to residents.

3.3.2. Due to the type and use of materials ;

During construction, increased levels of fine dust concentrations in the air can be expected in the cvent of failure to apply the preventive measures during transportation, storage and placing of the aggregate materials used.

3.3.3. Due to construction debris and waste generated at the construction site

Waste generated during construction at any work site, according to the national classifier is: domestic solid waste, construction debris, waste fuels and lubricants, and less probable: hazardous, pints and varnishes. Domestic solid waste generated by the constructiqn workers is handled together with that generated by the residents or urban territories. here is no provision for opening of any canteens or kitchens. The domestic solid waste from sites outside settlements will be collected in containers and disposed of in the nearest landfill. The waste generated upon dismantling of asbestos-cement pipes will be treated in conformity with the prevailing regulatory acts (items 17 and 18 of Appendix A).

3.3.4. Atmospheric Air I

It is assumed that the opcration of building macbines and transport vehicles at any construction sector creates pollution by dust and hxhaust gases. Due to the limited dimensions of the sectors such pollution is local, ho&ever in the urban territories it may exceed the permissible concentration limits (permissi$le concentration limits, PCL).

3.3.5. Noise and Vibrations

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Objects of impact by the "noise" factor will occur mainly during construction or refurbishment of the street water supply network in the settlements. The noise limits set for them are different depending on their function. ( it.23 of Appendix A). Residential areas: daytime - 55 dB(A), evening - 50 dB(A) and at night - 45 dB(A). Central urban areas and areas subjected to busy motor vehicle traffic: daytime - 60 dB(A), evening - 55 dB(A), at night - 50 dB(A). Educational activity and leisure areas: daytime - 45 dB(A), evening - 40 dB(A), at night - 35 dB(A). Medical facility areas: daytime - 45 dB(A), evening - 35 dB(A), at night - 35 dB(A). The noise sources during refurbishment of water mains and facilities, and during new construction are various transport and building machines and plants such as: dredger, front loader, asphalt cutter, compactor, asphalt laying equipment, roller, compressor, heavy-duty cars, with noise limits within the range 80 dB(A) - 92 dB(A). Noise levels considerably exceeding the above-indicated sanitary limits can be expected near the operating machines. The impact of high noise levels Will last for a limited time period - till completion of the works in the respective sector of the water supply network. An increase of the overall acoustic load in that region of construction activities occurs also in the case of idle running building and transport machines.

3.3.6. Water

Release of effluent with excessive concentration of chlorine and chlorine-based reagents in open water courses during the startup and adjustment of the refurbished or newly built water mains and facilities.

3.3.7. Soils , Erosion, floods, landslides and landfalls are factors that can cause environmental problems during both construction and operation phases.

3.3.8.Flora

According to data from the W&S operator and the Targovishte District Administration, the investment projects do not beldng to the Natura 2000 territories under the Habitats Directive and no rare or erfdangered species are destroyed. Expropriations from the forest and agricultural fund andlor temporary use indemnifications shall be effected as required. I

I 3.3.9.Fauna I

In the course of construction of head water mains the habitats situated along the route will be left by the animal species, part of which will1 return to their old habitats upon completion of the construction and recultivation work's.

3.3.10. Landscape

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The scale of contemplated rehabilitation and new construction is small and no significant impact on the landscape is expected. After completion of the construction the urban environment will be restored (pavement, curbs, side walks), and with recultivation along the head main routes (technical and biological), the landscape will be restored.

3.3. I!. Health Factor

Health risks for the population: - Risk of excessive noise due to operation of the building machines. That noise is not permanent but with temporary effect only. The effect is disturbing and irritating. - Work in the open precludes the negative health effect of combustion gases and asphalt evaporations. Health risks to the workers: - Adverse weather conditions having in mind the need to work "in the open all the year round" in an environment with considerable temperature amplitudes. High temperatures are a risk factor of incidents such as thermal andlor sun shocks. Too low temperatures increase the frequency of colds, diseases of the skeletal/muscular and peripheral nervous system. - The drivers of building machines will be subjected to excessive noise levels of the order 80-100 dB(A). Noise has an adverse effect On the hearing and central nervous system resulting in somnopathy, development of neurotic conditions and artelrial hypertension. - The drivers of building machines will be subjected to general and local vibrations. They injure the vestibular apparatus, the locomorory system and the parenchymal organs, the sensory and circulatory systems of the fingers. - With the limited scope of excavation and refurbiqhment works and work in the open air, no adverse health effect is expected by air pollution. - The labor traumatism risk is highest in the case of manual excavation and erection works. - In the case of hard physical work involving lifting and carrying of excessive loads, there is higher risk of diseases of the locomotory ahd nervous/muscular system.

During the construction the working enviroeent factors can have certain effect on workers' health. Such effect is temporary and will be minimized if measures for protection of the workers' health and safety are undertbken.

3.3.12. Common Heritage

According to information from competent authorities there are no historical, architectural and archaeological monuments along the routes of the proposed sites. In the event of an unforeseen find the Bulgarian legislation provides for the necessary action. ~~~~CTBMR(it. 8 of Appendix A).

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3.4 Adverse Impacts during Operation

More significant adverse impacts are formed inlthe operation process in the event of improper disposal by the operating staff of waste generated on the facility site, excessive noise levels above the permissible noise liinits /sanitary limit 70dB(A)/ and failure to apply the Emergency and Accident Action Plan in relevant situations.

4 Mitigation Measures against Potential Ehvironmental Impacts due to Implementation of the Investment Prdgram - during the construction phase and during the operational phase.

The present EMP contains mitigation measures against the negative environmental impacts that are referred to the above-listed potential impacts, and will be applied in the course of Project implementation and afler that.

During the construction phase:

4.1. For normal functioning of the water supply system in the regions that will be affected by the works, autonomous and/or alternative water supply should be organized for the time of construction and startup.

4.2. The repair works contemplated by W&S SPLLC, Targovishte of some facilities, pressure reservoirs, pump stations, chlorinating plants, head water mains, town water supply networks, allow, with appropriate orggnization, perfect matching of the construction/erection works (CEW) to the uninterm$ted operation of the water supply system. As required, alternative water supply is engured for cases of time extension announced by the operator.

I 4.3. In cases of modification of the wated supply pattern the operator shall provide additional quantities of chlorine and chlorini-based reagents for disinfection of the drinking water with a view to preventing adverse fiealth effects to the population.

4.4. It is recommended to use with priority non-excavation technologies that permit minimization of the environmental impacts. digging up of the streets is avoided. Besides, changes in traffic organization are reduced. ,

4.5. Construction debris is deposited in lbdfills defined by permits. Earth masses in the urban territories as well as in the counpy are stored temporarily along the routes after which they are used for backfilling. ~heis~oilmaterials /earth and rock1 are handed over to the state forestries or to interested perqons.

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4.6. The humus stripped in the bednning of construction is kept at temporary disposal sites. After completion of the construction it is used for recultivation of disturbed lands.

4.7. The nearest motor depots are used for filling with fuel and lubricants.

4.8. In the event of generating any hazardous waste including those generated by replacement of asbestos-cement pipes, a firm possessing a license for their treatment is contracted.

4.9. The transport routes crossing settlements for waste transportation to Ithe deposit sites are agreed upon with the municipalities. ~

4.10. For containment of the impact mainly oh the working environment and on the population, the following measures should be undertaken: water sprinkling, monitoring of the condition of machines and vehicles. :

4.1 1. In the final phase of the construction, the quantities of reagents needed to neutralize the residual quantities of chlorine in the effluent from flushing and sanitation of water mains and facilities shall be defined in order to meet the requirements of environmental legislation towards the quality of such effluents and to prevent pollution of the environment (soils and open water courses) by ohlorine agents.

4.12. Drinking water is delivered to the thd construction site by water-carrier cars or bottled.

4.13. In the course of rehabilitation measures and new construction in urban territories all effluents generated in the construction $recess as well as neutralized water from flushing and sanitation of water mains and fa~ilitiesshall be discharged into the public sewerage system or into the nearest water basin with quality corresponding to its category.

4.14. In the case of crossing river courses, dhPending on the design solution, the front of crossing building machines and transport vehicles shall be restricted, with a view to reducing the impacts on the river ecosystem. i~heconstruction works shall be performed during low-water periods of the river courges.

4.1 5. The technical condition of machines shall be checked every month for oil leaks.

4.16. The existing latrines or chemical toileties shall be used for the sewage.

4.17. In order to prevent soil pollution, inspections of the building machines and transport vehicles shall be regularly performed. Tran$port vehicles shall be washed in the appointed places.

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4.18. The transport vehicles shall be covered.

4.19. Management of head mains construct;ion shall preclude triggering of landslides.

4.20. Blasting works shall be performed after a special, contained-blast plan in order to preserve the adjacent vegetation.

4.2 1. In the course of rehabilitation works and construction of new facilities the destruction of ligneous and fruticose vegetation shall be minimized as much as possible, after coordination with the competent authority.

4.22. In compliance with the Bulgarian legislation upon discovery of archaeological finds in the course of construction works the Museum of Archaeology and History shall be informed, the construction shall stop temporarily and the respective decision about their preservation shall be made. ( it.2 H it.8 of Appendix A).

4.23. Construction activities shall be limited within the daytime period - from 7,00 a.m.. Till 7,00 p.m.

4.24. The machines and plants used shall be kept in good repair.

4.25. The exhaust pipes of the transport vehicles and building machines shall be fitted with mufflers.

4.26. Idle running of the transport vehicles gnd building machines shall not be allowed.

4.27. With a view to limiting the adve~seeffect of unfavorable weather conditions, the workers shall be supplied with work cl~thessuitable for the season. ( it. 15 of Appendix A).

4.28. The workers shall be supplied with personal protection means - helmets, ear muffs, anti-vibration gloves, safety belts, etc., ddpending on the specifics of work. (T. 15 of Appendix A).

4.29. In compliance with the normative reqiirements (with a view to reducing physical strain, overfatigue and development of skelital-muscular diseases), regimen of work and rest within a working day are introduced. ( it. 15 of Appendix A).

According to the Bulgarian legislation (item 3 of Appendix A)., aggregate materials, concrete mixes and asphalt products used may be supplied only by enterprises possessing the respective license for their extraction a0d production.

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With respect to waste, the requirements of the Waste Management Act are met at all stages of the construction. The measures for mitigation and improvement of impacts related to investments in rehabilitation and new construction at water supply sites will be included in the Technical Specification to the Construction Contract. Contractual support is an indispensable prerequisite for implementation, by the Contractor, of all needed measures for protection of the environment on the site itself and outside it and to limit the damage and inconvenience to people as a result of pollution, noise and other consequences of the construction works. The Contractor shall make sure that, by implementation of the indicated measures that thc air emissions, surface run-off and treated efflyents, noise and vibration impacts, etc., resulting from the activities performed do not exceed the levels stipulated by the applicable laws. ( items 3,4,5,9,10 and 12 of Appendix A). Preservation of the natural components is achieved through establishment of integration connections with the anthropogenic landscape components which, at the same time, will result in improvement of the visually aesthetic value of the environment. Coordinated action with the local state and Municipal authorities and the competcnt environmental protection and public health bodies is an important prerequisjte for success~limplementation of the planned rehabilitation measures and new construction in the water transfer network.

During the operation phase: 4.30. The solid domestic waste generated on the facility sites shall be collected by the operating staff in containers and transported by garbage trucks to the municipal waste landfill. 4.3 1 .Ear muffs shall be provided for the workers. 4.32. The Emergency Action Plan defines the required environmental impact mitigation measures and the staff needed in such circumstances. The plan is developed by the Operator and reviewed by the local municipal administration

5 Monitoring

The contemplated model of monitoring the implementation of the environmental impact mitigation measures was adopted so as to coyer all aspects and requirements in conformity with the law and good engineering practicp.

5.1 Monitoring and Control during the Construdtion

The adopted form of monitoring includes a specific description of the monitoring and control measures and covers all aspects of the construction process related to the adverse impact mitigation measures proposed in the adverse impact mitigation plan) with thc parameters to be measured, methods to be applied, points of sampling,- - measurement intervals, concrete des. Ornon~tConsult LLC, 17 G. Benkovsk~Street, Sof~a1000 phone.:02/980-21-16; fax:02/980-04-68 14 Environment Management Plan - an Investment Program of Water & Sewerage SPLLC - Targovishte

5.2 Monitoring and Control during the Operation

During the operation phase monitoring of the contemplated project sites shall be performed by the Operator's company in conformity with the normative requirements.

Organization of EMP application and reporting:

Monitoring and reporting will be applied entirely by the Contractor's management. The Contractor shall exercise everyday monitoring of the normal environmental practices by presentation of regular reports. These reports shall be addressed to the institutions indicated in the normative requirements and once in a month - to the Employer /Engineer/. The Contractor shall appoint its specialist in charge of the environmental aspects of the Project. The Engineer auditing the process shall report on the performance of environmental impact mitigation measures included in the Technical Specification to the Contract; on the correct understanding and application of EMP by the Contractor; on assurance of the relevant steps; on keeping correct record of any discrepancies, on the conducting of briefing and training, emergency aid measures, and shall evaluate and correct the Contractor's reports.. The respective government institutions will be involved in auditing of all environmental protection and social measures and the progress on the Project by receiving regular reports in conformity with the normative requirements. The Project Management Unit (PMU) established at the MRDPW shall keep and store the documentation required by law and by contract. On the basis of the Engineer's reports and site visits as required, EMP performahce and progress reports will be presented to the World Bank every six months.

Institutional Responsibilities in Implementation of the Environment Management Plan

Making of decisions on1 Responsibilities for environment management impact mitigation and Reporting relations /start of action, expense performance (who reports to whom) authorization, completion/ monitoring and intervals Institutions or Activities persons in charge

MRDPW /Employer/ Contractor to Engineer Monitoring of Engineer MEW /monthly/ EMP Supervisor, contact RIPQPH Engineer: performance person appointed I AE to MRDPW by Employer Municipalities to RIEW /MRDPTW/ /monthly/ RIEW PMU at MRDPW to the MoEPI' Bank /every 6 months/ RIPQPH

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6 Conclusions and Steps Recommended to Ensure Performance of the EMP.

According to the developed Environmental Impact Mitigation Program (Annex 2) and Environmental Monitoring Program (Annex 3), the Contractor is not required to provide additional facilities involving significant costs. The recommended steps needed to ensure performance of the EMP are: a) Plan the funds for implementation of the environmental impacts mitigation measures and the EMP performance monitoring by including it in the Technical Specifications to thp Construction Contract. b) Obtain the Contractor's correct understanding of the steps and resources required for environment management, the required steps and measures being evaluated and offered. c) Discuss the EMP at preliminary clarificqtion sessions. d) After signing of the Contract, the Emplbyer shall officially familiarize the Contractor with the prevention and impact mitigation by means of the EMP included in the Contract and the implementation of monitoring. The main problems, conclusions, recommendations and negative impact mitigation measures are defined in conformity with the objectives set in the Terms of Reference. In the longer term, with the proposed investment projects, application of the EMP and through application of good engineering practictes for optimization of the set of activities in the process of producing and supply of drinking and washing water to the population, the objectives of responsible use of wated resources set in the government's policy for sustainable development of the water sectot are achieved without any risk to the environment and with a beneficial effect on tbe life quality of the population, which leads to the conclusion that the Project is beoeficial.

7 Consultations and Public Discussions - Discussion of the Positive and Adverse Impacts, Routine Consultations and NGO

In connection with the Municipal Infrastructute Improvement Project and more particularly, with implementation of the Investmenit Program of Water & Sewerage SPLLC - Targovishte for the period 2008-2010 funded from a World Bank loan, the Environment Management Plan was publicly announced at Water & Sewerage SPLLC - Targovishte. 1 EMP announcement ) Place of Comments made What vrl dateannouncement incorporated 1 1 2 3 4 22.10.2007 W&S LLC- No objqctions, comments Targovishte, on or recommendations the notice board were received within the 15-gay time limit. 1

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Photos of typical sites along the routes and at some facilities Investment Program of Water Supply & Sewerage Company LLC - Targovishte Municipal Infrastructure Upgrading Plan

Pressure reservoir for the village of Bayachevo - Water main route to the village of Bayachevo from a well of the existing a900 steel

Water main route /conceptual design phase/ to the village of Bayachevo - Road fork to the village of Bayachevo from the Targovishte-Preslav road

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1 Environment Management Plan - an Investment Prorrram of Water & Sewerage SPLLC - Targovishte

Water main route /conceptual design phase/ from West pump station to Yagoda Pump station Crossing of the highway Sofia-Varna

Site at the route of a water main Town of Targovishte -West pump station

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Appendix A

Regulation Acts Ap~licableto the Project

1. Water Act. Adapts the European Framework Directive on Water to the conditions in Bulgaria; 2. Structure of the Territory Act - regulates the public relations related to structure of territories, investment planning and civil works in the Republic of Bulgaria; 3. Environmental Protection Act - This act regulates the public relations in the area of: protection of the environment for the present and future generations and protection of people's health; preservation of the biological diversity in harmony with the natural biological and geographical characteristics of the country; protection and use of environmental components; control and management of the factors harmful to the environment; exercising of control on environment condition and pollution sources; pollution prevention and restriction; establishmqnt and functioning of the National Environment Monitoring System; the environmental protection strategies, programs and plans; collection and access to information on the environment; economic organization of environmental protection activities; environmental protection rights and obligations of the State, the Municipalities, legal and physical persons; 4. Health Act. This act regulates the public relations related to protection of the citizens' health; 5. Waste Management Act. This act regulates waste management with consideration of the environment as a combination of rights and obligations, decisions, acts and activities, related to their generation and treatment as well as the forms of control over these activities. This act sets the requirements with respect to products forming hazardous or widespread wastes in the process of their generation or after their final use; 6. Biological Diversity Act. This act regulates the relations between the State, the Municipalities, legal and physical persons with respect to protection and sustainable use of the biological diversity; 7. Protected Areas Act. Regulates the categories of protected areas, their purpose and regime of protection, use, restoration and management including permitted and prohibited activities in the individual categories; 8. Monuments of Culture and Museums Act - regulates finding, protection and popularization of the monuments of culture located in the territory of the Republic of Bulgaria; 9. Air Purity Act. The act regulates the methods of determining the air quality indicators and limits, emission restriction, rights and obligations bf the respective regulating authorities, management and preservation of free air qualitx. The act regulates the restriction of noxious emissions from fixed and mobile sources; 10. Environmental Noise Protection Act. This act reslates the assessment, management and control of noise in the environment caused by motor, railway, air and water tra~isportas well as industrial plants and facilities and by local qoise sources ...; 11. Water Supply and Sewerage Services Regulation Act. This act provides for price regulation, affordability and quality of water supply and sewerage services provided by water supply and sewerage (W&S) operators; 12. MH, MRDPW and MoEW Regulation No.9/16.0$2001. on the Quality of Potable and Washing Water. W&S operators carry out, or assign to accredited laboratories the continuous and periodic monitoring of the quality of water supplied to consumers by physico-chemical, microbiological and radiological indicators;

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13. MoE W Regulation No 5/08.11.2000 on the Procedure and Method of Establishing the Networks and Activity of the National Water Monitoring System. This Regulation establishes Procedure and manner of establishing water monitoring networks and regulates the activity of the National Water Monitoring Agency in the territory of the Republic of Bulgaria; 14. Regulation No.7 on air quality assessment and management. This Regulation establishes the terms, procedure and manner of assessment and management of free air quality by provisions for: conduct of the state policy of free air quality assessment and management, including improvement of free air quality in the regions where the established limits have been exceeded, and its maintenance in the other regions; credible, representative, timely and precise assessment of free air quality in the country's territory performed by the observation and monitoring systems ... ; 15. Regulation No. 2 /22.03.2004 on the Minimum Lqbor Health and Safety Requirements for Construction and Erection Works This Regulation defines the minimum of requirements applicable to provision of healthy and safe labor conditions at temporary and mobile construction sites; 16. Regulation No. 15 / 27.06.2006 on the sanitary requirements with respect to persons working at child-care facilities, specialized institutions for children and old people, water supply facilities, food production or trade enterprises, barber's shops, hair- dresser's and beauty parlors. This Regulation defines the sanitary requirements with respect to persons working at: . .., water supply facilities and stations - pump and water treatment stations, reservoirs, chlorinating plants, water supply networks (that applies to the persons who are in direct contact with the potable water during repairs and emergency action) and sanitary protection zones of the water sources; 17. Regulation No.5 / 15.04.2003 on prevention and reduction pollution of the environment with asbestos. This Regulation defines requirements applicable to the prevention and reduction of pollution of the environment with asbestos for the purpose of environmental and human health protection; 18. Regulation No.9/04.08.2006 on protection of the workers against risks related to asbestos exposure during work. This Regulation defines requirements applicable to protection of workers' health, including prevention of existing or potential risks of asbestos exposure in the process of work; 19. Regulation No.16 / 23.07.2001 on temporary traffic management in cases of construction and repair works on roads and streets. This Regulation defines the terms, procedure and means of signalization in cases of temporary traffic management in the process of construction and repair works on roads and streets; 20. Regulation on the Terms and Procedure of Performance of Environmental Impact Assessments. This Regulation defines the terms and procedure of investment proposal environmental impact assessment; 2 1. Regulation No.26 / 22.10.1996) on Recultivatio~of Disturbed Lands, Amelioration of Low-Productive Lands and Utilization of the Humus Layer. Defines the hurr~uslayer treatment during construction works on agricultural land; 22. Regulation No. 3 on the permissible limits for noxious substance concentration in soils. This Regulation sets the permissible concentration limits for noxious substances in soils; 23. Regulation No.6 /26.06.2006 on Environmental Noise Indicators determining the discomfort degree during different parts of the day, limit values of the Environmental Noise Indicators, methods of assessment of thd noise indicator levels and harmful effects of noise on the population's health; 24. Council of Ministers Decree I31/2000 Regulation on the requirements towards treatment and transportation of waste oils and oil produces. The Decree defines the requirements towards collection, temporary storage, transportation, utilization and sequestration of waste oils. Ornon~tConsult LLC, 17 G. Benkovsk~Street, Sof~a1000 phone.:02/980-21-16; fax:02/980-04-68 2 Environment Management Plan - an Investment Program of Water & Sewerage SPLLC - Targovishte

APPENDIX B

ABBREVIATIONS USED

1. AIM - Archaeological Institute with Museum 2. W&S - Water Supply and Sewerage 3. TTM - Temporary traffic management 4. SWSN - Street water supply network 5. TWWTP - Town waste water treatment plant 6. EU - European Union 7. STA - Structure of the Territory Act 8. HSLC - Healthy and safe labor conditions 9. IAE - Implementation Agency for Environment 10. TP - Traffic Police 11. MRDPW - Minisby of Regional ~evelo~m/xtand Public Works 12. MoEW - Ministry of Environment and Water 13. MIA - Ministry of Interior Affairs 14. MV - Motor vehicles 15. NlCH - National Institute of Cultural Heritdge 16. NGO - Non-government Organizations ~ 17. PS - Pump station I 18. HDPE - High-density polyethylene 19. PCL - perm~ssibleconcentration limits 20. SHP - Safety and Health Plan 2 1. FAS - fire and accident safety 22. EMP - Environment Management Plan 23. RIEW - Regional Inspectorate of Enviroqent and Water 24. RIPQPH- Regional Inspectorate for Protect;ion and Quality of Public Health 25. CEW - Construction and erection works 26. PBB - Piping branch-offs to buildings

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Annex 1 Contract Provisions

This Annex describes the environmental mitigation requirements to be followed by the Contractor and measures to be carried out by the Contractor(s) related to environmental protection. Contractor(s) shall follow all Bulgarian laws and regulations related to environmental protection.

General The Contractor's activity shall be in conformity with the requirements of all Bulgarian laws and bylaws related to environmental protection. The Contractor shall adopt all measures to protect the environment on the construction site as well as off the site, and to limit the damage and inconvenience to people and property due to pollution, noise, and other consequences of its acts. Contractor shall make sure that the air emissions, surface run-off, treated waste water, etc., resulting from its activity do not exceed the levels indicated in the Contract specifications and will not exceed the levels required by the applicable law. 'The Contractor shall provide the means, information, consumables, certified teams, tools and manpower needed for efficient test runs (sampling) wherever required. The Contractor shall submit an Environmental Impact Mitigation Program and a program of monitoring the performance of the respective measures based on the provisions in this Environment Management Plan /Annex2 and Annex 3 to it/, prepared at the Conceptual Design Phase and included in thc Technical Specifications of the Contract. The Environmental Monitoring and Management Plan shall constitute part of the method statement of the Contractor's proposed arrangements and methods of execution of the works required by section of these Te,chnical Specifications. The Contractor shall nominate one of his senior staff members to be responsible for follow-up of the implementation of the provisions of the environmental plan as well as for the guidance of the rest of the staff and reporting tb the Engineer. The Engineer shall be in charge of monitoring and verification of the overall construction compliance to the Environmental Impact Mitigation Plan and of the absence of any deviations from it or from the Contract. The Engineer shall have the right to interrupt the Contractor's work if the conditions of the approved environmental plan are not met.

Permits The Contractor shall be in charge of drawing up and approval of the documentation and site-specific information:

1. Technologies and methodologies uti(ized by the Contractor; 2. Specification of basic materials fof potable water supply and of the natural resources to be used (quantity and quality): i.e. all raw material, including gravel, fill, and bituminous materials as well as fuel and energy; 3. Specification of final work output; 4. List and characteristics of harmful substances utilized;

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5. Particular measures ensuing from the climate conditions in the region of works, from the meteorological characteristics and coefficients of emission into the atmosphere; 6. Specification of water supply sources and treatment of waste water; 7. Investigation and obtaining of directions for disposal of humus andor spoil material andlor construction debris from the construction site; 8. List of harmful substances generated in the production process by the Contractor 9. Emissions from construction equipment and transport vehicles.

Solid waste from construction and construction camps The Contractor has the following minimum of obligations with respect to the natural material excavated during construction: - The humus layer (wherever there is any along the line routes) is reclaimed, deposited in the sites indicated in the permits and utilized on the terms and procedure of the existing Regulation on Humus Utilization. - Clean soil material (Spoil Material) that is not reusable shall be removed from the site and deposited in accordance with the existing regulations in the sites indicated in the permits. The Contractor has the following minimum of obligations with respect to the waste generated in the process of construction or auxiliary activities: - Construction debris and related waste shall be removed from the site in an orderly manner and disposed of in accordance with the existing regulations in the sites indicated in the permits. - The Contractor shall make arrangements for regular collection and removal of the solid waste from the construction site and construction camps to the respective disposal sites. When construction takes place in urbanized areas the solid waste is managed through the local waste collection and disposal systems of the respective municipalities. - In the event of generation of hazardous waste (including materials containing asbestos) the Contractor shall contract a firm possessing a license for its treatment.

Protection of Ligneous Vegetation The Contractor shall undertake the necessary reasonable action to protect the green system. Perennial ligneous vegetation may be destroyed only if such act is in conformity with the Regulation on Green System Development and Protection on the territory of the respective Municipality subject to permit for clearing issued by the special verdurization authority. Grassed and park areas of the urban territory distyrbed during construction shall be restored as part of the Contractor's obligations for restoration of the vicinity.

Noise control In the course of performance of construction works the Contractor shall follow all the existing laws and regulations pertaining to noise control. The Contractor shall elaborate and adopt effective measures both in management and technology to minimize noise, including, but not limited to: The machines and plants used shall be maintained in good repair; The exhaust pipes of vehicles and building machines shall be fitted with muffles; Idle running of vehicles and building machinqs shall not be allowed;

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High-level noise generating work shall be performed within the working hours (9:OOh. - 17:00h.), and in the vicinity of medical facilities and kindergartens the noise-generating activities shall be interrupted between 14:OOh and 16:OOh.; - All noise not relating to the construction shall be avoided as far as possible.

Dust control The Contractor shall follow all the applicable laws and regulations on mitigation of the dust impact on the environment in the course of its operations and shall submit and follow measures to control that parameter. The Contractor shall submit, coordinate and follow a plan indicating the proposed routes for aggregate material transport. The Contractor shall limit dust generation from operation of the equipment, to cover the transport vehicles during transport of aggregate materials, sprinkle the work site at and during earth works.

Deviation and Traffic Measures The applicable Bulgarian regulation requires from persons performing construction or repair works to undertake steps to design and apply a Temporary Traffic Management Plan (TTM). In many cases the TTM Plan is be prepared in advance as part of the Investment Project and delivered to the Contractor together with the detailed engineering design of the Water Supply section. The TTM Plan shall be reviewed for approval minimum 15 days prior to the commencement of construction by the following institutions: - depending on the class of road sector where construction is going on, shall be reviewed by the National Road Infrastructure Fund (NRIF) or the district road administration, or the municipal administration; - the control authorities of the Ministry of Internal Affairs. Where the Plan is drawn up by the Contractor, the Engineer's approval shall be obtained within 28 days prior to the commencement of the con~truction. The Temporary Traffic Management Plan shall indicate the proposed plan of safe iroad traffic, including all details, temporary lighting and signing, etc., matching the work performance milestones. The Draft Plan shall cover the entire construction site and the access to it and shall include: - an Explanatory Note; - Layout of the road (street) sector; - Scope of the work site; detailed TTM diagram indicating: type and location of the lighting and signing with road marking, road signs, traffic lights, and other means of signalization in the work sector with the required elevations and dimensions; by-road diagram and its traffic signing and lighting, including access roads to individual properties; specification of the devices and materials needed for lighting and signing and TTM implementation. - The manner in which pedestrian traffic will be controlled. During construction works, the Contractor shall have the following obligations with respect to implementation of the TTM Plan: Inspect the condition and maintain in good repair the planned lighting and signing (signs, traffic control devices, marking, etc. ), including night lighting, both during work and in the parts of the day when no work is going on; Co-ordinate maintenance of traffic operations with the Engineer and the Traffic Police; Review work areas, equipment operation and storage, and material handing and storage related to traffic safety;

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- Prepare and submit to the Engineer for approval a program for adoption of precautions for work during the winter period; - Adopt all precautions required for safe work in winter - limit the excavation work, inspect and maintain the pedestrian bridges, etc. Where a Temporary Traffic Management Plan is prepared in advance as part of the Investment Project, all activities related to its implementation will be known in advance before the date of submission of the construction performance proposals and their detailed inclusion in the Bill of Quantities will be possible. In the event that the Contractor will be in charge of preparation and implementation of the TTM Plan, it can be included in the Bill of Quantities only as general items.

Soil Erosion The Contractor, under the Engineer's supervision, shall adopt all reasonable measures for erosion control and prevention during construction.

Materials The Contractor shall meet the following minimum of requirements towards materials used in site performance: - Towards all materials used: the materials shall be certified as complying to the substantial requirements with respect to construction activities and meet the Technical Specifications pursuant to the Requirements to Products Act. The materials shall be of an origin indicated in advance, established and meeting the normative requirements and shall be accompanied with relevant documents (statements of compliance, certificates of compliance, test reports, etc.), evidencing their conformity with the normative regulations. - Aggregate materials for backfilling (sand, gravel, rubble): the materials shall be supplied from licensed borrow pits, and the documents evidencing that shall be presented in advance. - Materials used for construction of the water mains: the materials shall correspond to the requirements towards the quality of potable water for domestic purposes. At the construction site, materials shall be kept in the designated locations to avoid possible pollution of soil, water courses, etc.

Protection of Water Resources and Soils The Contractor shall carry the full administrative and legal responsibility for any pollution of surface waters and soils caused by its acts or acts of its employees. The Contractor shall ensure that no oil products, fuel, lubricants, detergents, paint or other harmful substances are introduced into the soil, streams and irrigation or drainage facilities. The discharge of oil and fuel onto open soils is prohibited. Filling of any machinery shall be restricted to the nearest filling station. If filling has to be carried out on the construction site, that should be done solely uding suitable devices. The Contractor shall submit in writing to the Engin~erthe locations of the installations related to the provision of water, fuel, construction mixes, drainage, etc., and the distances to the nearest water supply, irrigation or draining facilities, particular green or protected areas. The above-said applies to both the construction site and the construction camp for the Contractor's staff. The nearest existing toilets or chemical toilets shall be used in the construction sites or at the workers7 camps. The direct discharge of sewage from worker's camps into any water basin is prohibited.

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The Contractor shall submit to the Engineer an emergency action plan for hazardous spills and leakage, subject for approval before commencement of the works.

Health, Safety and Accidents

The Contractor shall undertake, at any moment, all precautions required to ensure the health and safety of all persons who have the right to be on the construction site and those in its immediate vicinity, to adhere to all applicable safety procedures, including fire and accident prevention, electrical work safety, safe operation of the higher-risk facilities, etc. The applicable Bulgarian legislation (Regulation No. 2 / 22.03.2004 on meeting the minimum requirements for healthy and safe labor conditions during construction and erection works) requires preparation of a Health and Safety Plan (HSF) for construcCion involving risks defined in the Regulation at the investment project phase, providing for all necessary construction management and performance measures guaranteeing its safe performance, containing: Organization and Layout Plan an Integrated project schedule of the sequence of Construction and Erection Works (CEW); Fire and accident prevention and fighting plans and plans for evacuation of the workers and persons present at the construction site; Safety and health measures and requirements applied to performance of CEW, inclusive of specific-risk sites; A list of plants, machines and facilities subject to control; A list of the persons in charge (with names, positions, employer) of supervision and review of specific-risk sites; layout of the points of erection of lifting equipment and scaffolding; layout of the points on of storage of building supplies and equipment, temporary site w~rkshopsand waste containers; . layout of the locations of staff rooms; utilities layout; plan and operation schedule of the temporary artificial lighting on the construction site and at work sites; diagram and type of disaster, accident, fire or emergency alarm devices, with a site designed for first-aid provision, etc. According to the applicable regulation SHF shall be assigned by the Employer as part of the Investment Project, and the Contractor is responsible for its application and updating during the construction process.

Presentation of the HSF, review of its update or absence of any, does not relieve the Contractor of any obligations to ensure the health, safety and welfare at work of his employees including those of his sub-contractors and of all other persons on the Site, or of its obligations under the applicable Regulation, peqaining to: w Risk assessment during the construction; Development and updating of safety & health instructions depending on the specific conditions on the construction site by CEW types and in the cases required by the applicable legislation; The provision of protective clothing and equipment in accordance with the regulatory framework; Provision of initial and regular instruction oq healthy and safe labor conditions (HSLC) to the employees; w Defining, in written job descriptions, the sehior staffs (engineering managers, foremen, etc.) responsibilities as well as the responsibilities of persons in charge of risk elimination in the process of work, endowed with the powers and resources needed for that purpose; The provision of a qualified officer as HSLC Officer/Coordinator who has specific knowledge of safety regulations, and experience of safety precautions

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and who shall advise on all matters affecting the safety of workers, subcontractors and supervising officers. The provision of safety maintenance of the facilities and equipment (electrical and lifting equipment, building machines, transport vehicles, etc.) and their continuous monitoring with a view to eliminatipn of defects that might affect the employees' safety and health or the environment; The adherence to Bulgarian legislation on fire protection and preparation of a :€ire prevention and fighting plan subject to the Engineer's approval; The provision of latrines in conformity with the sanitary and hygiene requirements and fire and accident safety (FAS) requirements; The provision of instruction on handling of various materials, storage and disposal of used hazardous materials; The provision of collection, storage and transportation of waste and debris; The provision and maintenance of access to all points on the site in a safe condition free of injury risk; The provision of joint work of construction workers and free-lance employees, if any; The provision of collaboration with the industries in the region of or near the construction site; The provision of first-aid facilities for persons injured in an industrial accident, fire, disaster or incident; Adoption of additional measures for the employees working in the open in adverse weather conditions; Good order and cleanliness on the construction site; Provision of integration of the construction site into the environment, including appropriate sewerage, waste collection and disposal, etc., as required by law and in a manner satisfactory to the Engineer. This requirement applies also to auxiliary work sites, the construction camp, etc. The safety officer/coordinator appointed by the Contractor shall have the power to receive instructions from the Engineer on matters relating to the health and safety of personnel on Site and the safe conduct of site operatio~s. The Contractor shall send to the Engineer detailed r0port on every accident as soon as possible after its occurrence. The Contractor shall kekp a log book and prepare reports on the employees' health, safety and support, as well as on damages inflicted on property as the Engineer may reasonably request. Considering the nature of the sites and the fact that when water supply mains are connected to existing water mains and/or facilities, the persons (the Contractor's employees) may come into direct contact with drinking water, a requirement can be set that such work may be performed solely by persons possessing personal health record book.

Common Heritage: Historical, Architectural and Archaeological Under the Bulgarian law, in the event of chance fiqds during construction that show some signs of cultural heritage objects, the work shall temporarily cease. The Contractor shall immediately inform the Engineer, the municipal administration and the nearest museum of history. The Contractor shall adopt the fequired precautions to prevent its staff or any other persons to move or damage any of the finds. The measures for preservation of the find shall be adopted under the Engineer's and competent persons' guidance.

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Social Issues

The Contractor shall adhere to all labor laws applicable to the Contractors' staff, including the laws pertaining to its employment, health, security, welfare, immigration or emigration and will provide for all its legitimate rights. The Contractor shall demand from its employees adherence to all applicable laws including those pertaining to labor safety. The Contractor shall adopt, at any moment, all precautions to prevent unlawful or unruly behavior and violations of the order by or among the Contractor's staff as well as for preservation of peace and protection of persons and property near the Site against such behavior. Beside the mitigation measures against the adverse impacts on the environment and population due to performance of the Project listed in other subsections, the Contractor should take the following requirements into consideration: The operations conducted shall be adapted to the uninterrupted operating mode of the water supply system. Scheduled interruptions of water supply shall be conducted after notification of the residents concerned. Alternative water supply shall be provided upon water supply interruptions lasting longer than the one instructed by the Operator of the W&S system.

Supervision and Monitoring

Without relieving the Contractor of its obligation for permanent compliance control, the , Engineer will be in charge of the monitoring and verification of compliance of the overall construction work with the Environmental Impact Mitigation Plan and of making sure that there are no deviations from it or from the Contract.

Payment

All costs associated with environmental protection will be considered as being covered by the overall payments specified in the Construction Contract. All costs entaile~din sampling and testing for environmental purposes shall be deemed to be included in the prices and rates entered by the Contractor in the Bill of Quantities.

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Annex 2. Environmental Impact Mitigation Program

2.1. In the Construction Phase

Place and time Implementation Control functions Impact due to: Impact Mitigation Measure of Person in Charge Funds performed by: performance 1 2 3 4 5 6 Site Clearing In the course of reconstruction and construction of head At the As per bilIs of The Contractor MRDPW (The Engineer*), mains, pressure reservoirs and pump stations the humus construction quantities, construction supervision and stripped in the beginning of construction is stored at site, initial phase actually proven representative of the temporary storage sites. After completion of the construction and after quantities at municipal administration it is used for recultivation of the affected lands. construction prices accepted and RIEW In urbanized areas, the removed construction debris (asphalt, completion by contract. pavement, sidewalk paving stone, etc.) are transported to and disposed of at the indicated sites in conformity with the local regulations and permits. After completion of construction the paving is restored to its initial condition. Destruction of ligneous and fruticose vegetation shall be minimized and done after agreement with the competent

- ~ ~ -authority. - - ~ - - ~~ ~ a) Noise disturbance including The machines and plants used shall be maintained in good At the Included in the The Contractor The Engineer, RIPQPH vibrations repair and meet the noise limits set in Bulgaria. The exhaust construction cost of mandatory pipes of the transport and building equipment shall be fitted site, maintenance. The with mufflers Construction work time shall be restricted permanently. minimum for from 7.00 a.m. till 7.00 p.m. near homes. Repairs performed extra measures. in the regions of medical facilities, sanatoria, kindergartens (where the daytime noise limit is 45 dB(A), shall cease all noise generating works between 2,00 and 4,00 p.m. when the residents are resting. Idle running of transport and construction equipment shall not be allowed. The workers

PP b) Dust poNution/Air quality Earth works, temporary and by-roads shall be sprinkled with At the The minimum The Contractor The Engineer water to prevent dust pollution; the trucks carrying fine construction materials such as sand and fine aggregate shall be covered to site, reduce their scattering on the way. permanently

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7 c) Trafl?c disturbance during Prepare and apply a Temporary Traffic Management Plan At the The minimum The Contractor The Engineer, District Road construction works through appropriate measures and a clearly visible and easy construction Administration / Municipal to follow sign and light system for traffic redirection, site, administration, Traffic coordinated with the respective institutions in conformity permanently Police with the prevailing normative system. No-excavation technology shall be applied wherever possible. Excavation-free technology shall be applied wherever possible. d) Transport andpedestrian Prepare and apply a plan for temporary traffic organization At the The minimum The Contractor The Engineer safefy during construction and with appropriate fencing, lights and clear safety signs. construction in its absence Preparation and application of a safety and health plan. site, permanently e) Soil erosion Control of soil erosion by means of battering, draining, and At the The minimum The Contractor The Engineer other means. construction site, permanently fi Aggregate material borrow Use only licensed borrow pits; undertake preventive At the No extra funds The Contractor The Engineer pits measures against in-transport material spilling; all vehicles construction required. shall be covered to avoid spilling on the way from the site, borrow pits. permanently g) Water andsoil pollution due Define places for material storage; isolate the concrete work At the The minimum, The Contractor The Engineer to improper storage, sites from water basins; the areas for washing building and construction included in the management anduse of other equipment shall be isolated from water basins and sites site, funds for

~ materials in places~. that do~ ~- not drain into water basins directly or permanently construction site

~~~~ ~ -~~ -~ ~ - indirectly.~ - organization. - ~ h) Water andsoilpollution due The wastes shall be deposited in designated places protected At the As per bills of The Contractor The Engineer to improper waste disposal from washing away, indicated by the authorized bodies. construction quantities, After flushing and disinfection of newly built water mains site, actually proven and facilities, neutralize the solution and release it in the permanently quantities at designated places - public sewerage, or another basin. prices accepted Existing or chemical toilets shall be used for sewer effluent. by contract. In the event of generation of hazardous wastes, including materials containing asbestos, contract a firm possessing a license for their treatment. i) Potential waferand soil Use the nearest motor depot for fuels and lubricants. At the No extra funds The Contractor The Engineer pollution due to improper use of No waste oil from the machines /dredgers,etc./ shall be construction required. the building equipment released in the public sewerage, in gutters, rivers or any site, other places not indicated in the permits permanently

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j) Airpollutioti due to improper The machines and plants used shall be maintained in good At the No extra funds The Contractor The Engineer maintenance of the equipment technical condition. construction required. Idle running of transport and construction equipment shall site, not be allowed.. permanently

k) Labor safet,~ Follow the safety and health plan; provide briefings daily At the The minimum The Contractor The Engineer and at regular intervals as required by the regulations; use construction personal protection means; safe organization of by-pass site, traffic. permanently I) Common heritage All archaeological finds discovered during the works shall On the The Contractor The Engineer, the National be treated in conformity with Bulgarian laws. Upon finding construction Institute of Cultural of archaeological objects the Contractor shall promptly site - upon Heritage and the inform the Engineer, the municipal administration and the discovery of Archaeological Institute nearest museum having taken measures for preservation of archaeological with Museum the find and following the competent bodies' instructions. finds m) Possible air, wafer andsoil Domestic solid waste shall be collected in containers and At the The minimum The Contractor The Engineer and pollufron at the workers' taken to the nearest landfill. Existing or chemical toilets shall construction RlEW construction camp be used for sewage effluent.Ensure proper handling of camp site lubricants and solvents through safe storage.

2.1, During the Operation Phase

Place and time Implementation Control functions Impact due to: Impact Mitigation Measure Person in Charge of performance Funds performed by: 1 2 3 4 5 6 a) Water andsoil pollution due I The domestic waste generated on the facility sites shall be On work sites, Included in the Operator MoEW and RIEW to rmpr-oper waste disposal collected in containers and taken to the nearest disposal site. permanently operating costs 2. Construction debris generated during maintenance shall be collected at a site designated by the plant management and regularly hauled to the town disposal site by special-purpose freight vehicles. 3. Hazardous waste: 3.1. Waste oils or grease shali be collecied in a special pit from which they will be transferred to temporary storage vessels. After that they will be delivered to a

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specialized firm for processing or recycling, or deposited in the special hazardous waste sector of the waste disposal I facility. They will be transported by special vehicles meeting the requirements. 1 3.2. Fluorescent lamps shall collected in a place 1 I 1 specially designated for that and delivered to a specialized recycling company or deposited in the special hazardous waste sector of the waste disposal facility. They will be transported by special vehicles meeting the requirements. b Noise disturbance including The machines and plants used shall be maintained in good On work sites, B~ the Operator; Operator RIPQPH vibrations repair and meet the noise limits set in Bulgaria. permanently Included in the Employees working in rooms near the equipment that does operating costs not meet the permissible sanitary standards shall be supplied ___(On work sites, By the Operator Operator Municipality c)Force Majeure events and contingencies occurrenceupon of II I I an event I I The investment program of W&S LLC - Targovishte does not include construction of a PWPP

Everywhere in this text Engineer means Consultant Engineer or any other expert who is appointed by the Employer and performs site supervision.

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Annex 3: Monitoring Program for the Construction Phase

How shall the When shall the Where shall the parameter be parameter be Required What parameter shall be Organization in Impact due to: parameter be monitored?/type of monitored? (at Funds monitored ? charge of Monitoring monitored? monitoring what intervals or /Cost/ equipment continuously) 1 2 3 4 5 6 7 a) Noise and vibration Noise levels, dB(A) At and near the work Inspection and Once during the The Contractor, the places measurement by an construction works Engineer*, RIPQPH, accredited laboratory in a selected IAE, RIEW and the with the respective representative municipalities apparatus pursuant to sector and upon prevailing regulations report b) Dust pollution/Air Air pollution At and near the work Inspection and First check The Contractor, the quality places measurement by an - at the start of Engineer, RIPQPH, accredited laboratory construction; IAE, RIEW and the with the respective - sudden; municipalities apparatus pursuant to - at reg.intervals, prevailing regulations pursuant to regulations c) Tra@c disturbance Availability and At and near the work site Inspection, Before works start; during construction application of a within the scope of the observation - permanently The Contractor; the works Temporary Traffic Temporary Traffic - at intervals Engineer,RTC and the Organization (TTO) Organization (TTO) Plan municipalities Plan; traffic schemes d) Transport and Visibility and appropriate At and near the work site Observation - continuously The Contractor; the pedestrian safeer?, methods - at reg.intervals Engineer,RTC and the with/without ongoing municipalities construction works e) Soil erosion Turbidity On the work site Observation Continuously The Contractor, the Engineer f) Aggregate borrow pits Possession of valid Sand, rubble and rock Inspection and Before works start; The Contractor; the license for operation and borrow pits document control during Engineer origin of the aggregate performance, upon used placing of materials

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g ) Walcr arid soil Water and soil quality for Effluent from site, Observation; -Continuously -The Contractor; poiiulion duc~ro presence of suspended material storage sites; Inspection; -At reg.intervals - Engineer, IAE and impropc~storngc, substances, oils, pH value equipment washing Check - sample -Upon RIEW mariagemeril and use of collection precipitation (rain, - At prices -The Contractor malerials snow etc.) and of the incident accredited laboratory h) Water and soil Water and soil quality for The construction site and Observation; -Continuously -No extra -The Contractor; pollution due to presence of suspended service roads funds improper waste disposal substances, oils, pH value Inspection -At regintervals required -The Engineer, RIEW At least monthly and municipalities and upon report i) Potential water and Water and soil quality for The construction site and Observation; -Continuously -No extra -The Contractor, soiipollution due to presence of suspended service roads funds improper use of building substances, oils, pH value Inspection -At reg.intervals required - The Engineer and the equipment sudden check At least monthly municipalities and upon report j) Air pollution due to Exhaust gases, dust The construction site Observation; -No extra -The Contractor, improper maintenance During work funds of he equipment required Inspection The Engineer, RIPQPH, IAE, RIEW 1 and the municipalities

- - - - k) Labar~safe~ Availabilityf perpl The construction- ~ site Inspection sudden checks The Contractor, the protection means; -~ - during-work Engineer, RIPQPH, instruction books; Health and Labor Inspectorate and safety checks I) Common heritage Architectural, The construction site Observation Upon discovery The Contractor, the archaeological and Engineer, NICH and historical common Inst. of Archaeology heritage with Museum m) Overall conditions at Cleanliness, collection At the construction camp Sudden check As per prevailing The Contractor, the the workers' and removal of domestic regulations and Engineer, RIPQPH, construction camp solid waste, cfflucnt procedures W&S treatment

* Evety~heiein this text Engineer means Consultant Engineer or any other expert who is appointed by the Employer and performs site supervision.

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W&S LLC - Targovishte

Chart of the water supply system from Ticha Dam

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Photos of typical sites along the routes amd at some facilities Investment Program of Water Supply & Sewerage Company LLC - Targovishte Municipal Infrastructure Upgrading Plan

Pressure reservoir for the village of Bayachevo - Water main route to the village of Bayachevo from a well of the existing @900 steel

Water main route /conceptual design phase/ to the village of Bayachevo - Road fork to the village of Bayachevo from the Targovishte-Preslav road

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1 Environment Management Plan - an Investment Program of Water & Sewerage SPLLC - Targovishte

Water main route /conceptual design phase/ from West pump station to Yagoda Pump station Crossing of the highway Sofia-Varna

Site at the route of a water main Town of Targovishte -West pump station

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2

Environment Management Plan - an Investment Program of Water & Sewerage SPLLC - Targovishte

REPUBLIC OF BULGARIA

MINISTRY OF REGIONAL DEVELOPMENT AND PUBLIC WORKS

Municipal Infrastructure Development Project

Environment Management Plan /EMPI

Investment Program of Water & Sewerage SPLLC - Targovishte

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TABLE OF CONTENTS

General ...... 3 1.1 Purpose of the Project ...... 3 1.2 Bank's Requirements and Documents...... 3 1.3 Role of the EMP ...... 4 2 Initial Information Review...... 5 2.1 Selection Principle for Projects included in the Investment Program of Water & Sewerage SPLLC - Targovishte Projects for the Period 2008-2012...... 5 2.2 Brief Description of Projects Included in the Investment Program of Water & Sewerage SPLLC - Targovishte...... 5 3 Analysis of the possible environmental impacts of the Project ...... 6 3.1 Positive impact ...... 7 3.2 Adverse Impacts ...... 7 3.3 Adverse Impacts during Construction ...... 8 3.4 Adverse Impacts during Operation ...... 11 4 Mitigation Measures against Potential Environmeetal Impacts due to Implementation of the Investment Program - during the construction phase and during the operational phase...... 1 I 5 Monitoring ...... 14 5.1 Monitoring and Control during the Construction ...... 14 5.2 Monitoring and Control during the Operation ...... 15 6 Conclusions and Steps Recommended to Ensure Performance of the EMP...... 16 7 Consultations and Public Discussions - Discussion of the Positive and Adverse Impacts, Routine Consultations and NGO ...... 16

APPENDICES:

Annex 1 Contract Provisions Annex 2 Environmental Impact Mitigation Program for the Construction and Operation Phases Annex 3 Construction Phase Monitoring Program Appendix A -Normative Documents Applicable to the Project

Appendix B - Abbreviations Used Layout of the water supply system of Ticha Dam Photos of typical sites of routes and facilities

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General

The government of R. Bulgaria requested the World Bank's assistance in financing of activities related to the Municipal Infrastructure Development Project which will help Bulgaria to comply to the European Union's directives on potable and waste water and the environmental protection factors in the investment schemes that will be acceptable and eligible for financing from the European Union's Structural Funds and are not covered by other EU grants. The Project, part of which is this Environment Management Plan IEMPI, encompasses the completion of water-supply dams (Neykovtsi, Plovdivtsi and Luda Yana) where construction was suspended in the last decade, and rehabilitation of the wall of an operating dam (Studena Dam), as well as rehabilitation of the water supply system of six companies providing water supply and sewerage services (Dobrich, Razgrad, Sliven, Smolian, Stara Zagora and Targovishte).

1.1 Purpose of the Project

The general purpose of the Project is to ensure better water supply and responsible use of the water resources underlying the state policy for sustainable development of the water sector. That objective is completely in the spirit of the National Strategy of Bulgaria for Environmental Protection (2005 - 2014) that envisages ,,provision of good-quality water and sufficient water supply for all purposes".

The purpose of the Project will be achieved by means of:

a) improvement of the conditions of water supply for domestic & drinking needs in selected regions; a. ensuring the required quantity and quality of potable water; b) reduction of losses in the water supply network; c) improvement of the reliability and efficiency of water supply systems and facilities; d) provision for environmental requirements and regulations with respect to the systems; e) enhancement of the management and operating capability of operators.

1.2 Bank's Requirements and Documents.

The overall environmental category of the proposed Project is A in line with Bank policies with individual investments that belong to both category A (the proposed dam completion activities and category B (the rehabilitation of water networks). Based on the proposed Project 1nvestmer)ts the following World Bank's safeguards policies and procedures are triggered: OPIQP 4.01 Environmental Assessment; OPIBP 4.12 Involuntary Resettlement; OPIBP 4.37 Safefy of Dams; and OPIBP 7.50 Ornonit Consult LLC, 17 G. Benkovski Street, Sofia 1000 phone.:02/980-21-16; fax:02/980-04-60 3 Environment Management Plan - an Investment Program of Water & Sewerage SPLLC - Targovishte

Projects on International Waterways. Furthermore, adequate protection and maintenance of ecosystems downstream of the dams should be assessed during project preparation to determine the relevance of the OPIBP 4.04 Natural Habitats and OPIBP 4.36 Forestry safeguard policies. Also, given the possibility that proposed water companies might implement projects in cities with historic districts, the OPN 11.03 Cultural Property safeguard policy might be triggered. The following documents will be prepared by the Government of Bulgaria prior to project appraisal: (1) Environmental Framework of the Project (EF) for all proposed subprojects; (2) Environmental Due Diligence Report (EDR), including, in summary, assessment of the site conditions and assessment of the possible environmental impacts related to completion and operation of the proposed three dam sites; (3) Environment Management Plans (EMP) on investment in rehabilitation of the waster distribution networks in which the contract provisions for construction works will be specified /See Annexes 1, 2 and 31 related to application of the teohnical standards and other requirements relevant to the construction phase. 4) project Land Acquisition Policy Framework that will outline the process to be followed in case there is land acquisition needed for the project; and (5) Social Due Diligence for the three dam sites that presents an overview of the past land acquisition process carried out by the Government.

1.3 Role of the EMP

The present Environment Management Plan was developed by the Consultants Team of Omonit Consult LLC by assignment of the Ministry of Regional Development and Public Works (MRDPW) and contains a main, explanatory part, Contract Provisions /Annex11 on environmental protection, Environmental lmpact Mitigation Program /Annex21 including appropriate environmental protection measures that will help to mitigate the negative impacts arising from the construction of new facilities and rehabilitation of the water supply system of Water & Sewerage SPLLC Targovishte, and the attendant costs, as well as an Environmental Monitoring Program /Annex 31, pointing out to the parties in charge of the implementation of that program that, in the detailed documents of the works, they shall ensure adherence to all provisions related to environment and to the correct implementation of all environmental protection measures. The monitoring Plan includes information on the inspections in the course of realization, internal and external monitoring and assessment, as well as a reporting system. The plan presents cost estimates of the environment management measures and the time schedule of their performance.

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2 Initial Information Review.

2.1 Selection Principle for Projects included in the Investment Program of Water & Sewerage SPLLC - Targovishte Projects for the Period 2008-2012.

Selection of the sites proposed for financing from the loan granted by the World Bank was performed after analysis and assessment of the condition of the individual components of the water supply systems serving all municipalities within Targovishte District - Targovishte Municipality, Antonovo Municipality, Omurtag Municipality. Currently, an investment project is being developed for the town of Targovishte for the purpose of improving the Water and Sewerage (W&S) infrastructure in the town with EU financing. The proceeds from that grant will be used to rehabilitate and rebuild 90% of the town's network and the losses of water fed from Ticha Dam will be reduced. That enhances the currently existing non-utilized capacity of the dam and of Preslav Pump Station (PS). The conceptual design assigned at the present phase for full utilization of the capacity of the Preslav System will also define the particular projects to be financed under the present project from the World Bank loan. Provision of sustainable water supply through rational utilization of the dam water, quality improvement, expansion of the scope of the water supply service provided, and reduction of the high percentage of losses (reaching 70% of the quantity fed to the pump system and up to 15% of that fed to the gravity system) the number of the residents affected by water supply interruptions are the criteria by which priorities were defined in the selection of sites in the Investment Program of WAS Targovishte SPLLC. With total number of the served residents 103 229, the poor qthality of the water supply service (water supply interruptions) affects the towns Targovishte, Omurtag, and the villages Kralevo, Pevets, Dulgach, Nedarevo, Ovcharovo, Bayachevo, Probuda, Alvanovo, Zdravets, Lilyak, Ruets, Momino, Razboyna and Strazha (about 55 thousand residents). As a whole, the region's environment is not polluted mainly due to the absence of pollution sources and the priority assigned to development of agriculture instead of industry. The pollution (of water, air and soils) caused by a set of anthropogenic impacts are neutralized naturally, thanks to the stable quality of the natural environment and its fast recreation capability.

2.2 Brief Description of Projects Included in the Investment Program of Water & Sewerage SPLLC - Targovishte.

Centralized water supply in Targovishte District is provided to all 196 settlements. The water supply is mainly of the pump type served by a considerable number of reservoirs and pump stations, with total length of thi: pump system network 1245 km. Part of the settlements have a gravity type water supply. The total network length of that system is 190 krn. The water supply network was built using mainly asbestos-cement pipes with expired service life and high wear rate causing serious water losses (70%) The

Omonit Consult LLC, 17 G. Benkovski Street, Sofia 1000 phone.:02/980-21-16; fax:02/980-04-68 5 Environment Management Plan - an Investment Program of Water & Sewerage SPLLC - Targovishte discharge rates of water sources in the service territory of the W&S operator depends on the precipitations and in the cases of prolonged draughts water rationing has to be imposed. According to statistical data the relative share of the population with irregular water supply in the region is much lower than the average for the country (about 15%). The rationing regime in Omurtag Municipality is the most severe; about 80% of the population there is not provided with uninterrupted water supply. Raw water is drawn from a surface water source - Ticha Dam and from 321 underground water sources (drainages, captations, pits and deep drill wells) and is fed to the consumers only after disinfection. The potable water for Targovishte runs through a microfilter ozonating station. The quality of the ground and surface waters is adversely affected by the unfinished sewer networks and town waste water treatment plants (TWWTP) and by the application of bad agricultural practices. Deviations from the physico-chemical indicators are most frequently observed with respect to raw water turbidity and color, including that in the Ticha Dam. All over the region the waters are characterized by high hardness and come under the categories "hard" and "very hard" waters. The values of hardness indicators in the water sources supplying water to the villages Buhovtsi, Bistra, Tvurdintsi, Buinovo and Miladinovtsi exceed 13mgCqll. The increased nitrate content is another serious problem of the quality of raw water. By microbiological indicators, the raw water is within the permissible pollution limits. One exception in that regard is the raw water from Ticha Dam which indicates more significant deviations from the microbiological indicators in the event of considerable reduction of the available capacity of the dam, especially in the summerlautumn season. The program envisages rehabilitation and building of pressure tanks, pump and chlorinating stations, head water mains and street water supply networks in regions suffering of frequent accidents and poor quality of the water supply service. With its implementation, the service standard will be improved and the requirements of Regulation No. 91 16.03.2001 on potable water quality will be met. The total length of head water mains subject ta rehabilitation and construction in the Municipality of Targovishte is 51 000 m with diameters 160 mm - 300 mm, and the total length of the street water supply network ( SWM ) is 149 620 m with diameters 90 mm - 250 rnm. In Omurtag Municipality, 13 400 m of street water supply network with diameters 90 mm - 110 mm will be replaced. The respective number of water main branch-offs and local water piping (LWP) for the buildings will be provided The Program envisages funds for design, construction supervision and National Construction Supervision, transport vehicles and small: mechanical equipment.

3 Analysis of the possible environmental impacts of the Project

The analysis is based on the present state of components and environmental factors, and their possible development in connection with the investment intentions of W&S SPLLC, Targovishte for the reconstruction of water supply facilities in the Targovishte Omonlt Consult LLC, 17 G. Benkovski Street, Sof~a1000 phone.:02/980-21-16; fax:02/980-04-68 6 Environment Management Plan - an Investment Program of Water & Sewerage SPLLC - Targovishte

District. The main problems, conclusions, recommendations and mitigation measures are defined in conformity with the goals defined in the Terms of Reference (TOR).

3.1 Positive impact

With the modernization and development of the water-supply infrastructure, water rationing is avoided which, on the one hand, will lead to more efficient management of the water supply system, and is, on the other hand, of great significance to human health and improvement of the local residents' quality of life. 3.1 .I. Positive environmental impact - Reasonable consumption of water resources is of primary importance not only to this but also to the future generations. With implementation of the projects actual reduction of unreported water flows will be achieved which will result in reduction of the water quantities delivered at the inlet end of the water supply system and ecologic resource economy. The smaller number of accidents guarantees also operation reliability. The replacement of asbestos cement and steel pipes by pipes made of high- density polyethylene (HDPE) permits application of modem pipe laying technologies while eliminating, in the process of operation, the health risk for consumers arising from secondary pollution of the potable water. 3.1.2. Positive social impact - The proposed Program fits successfully into the regional strategy for balanced and sustainable development of Targovishte District, with actual contribution to improvement of the quality of provided water supply service to the population of the selected municipalities - Targovishte and Omurtag. It is expected that with implementation of the project, a solution for some serious and intensifying problems will be achieved to a large extent. The existence of intra-regional differences and distinctly problematic territories in the district define areas that should be given priority for result-oriented action for the purpose of their convergence. Improvement of the town environment and the related less urban territories creates favorable conditions for development of the local tourist business. Opening of temporary jobs at the construction works is a prerequisite for social and economic stabilization of the respective region.

3.2 Adverse Impacts

During the construction phase The territories coming under the easement of head main routes will be affected mainly during the construction phase due to the increased emissions of certain noxious substances, fine dust particles and other pollutants generated by the operation of earth-moving building machines and transport activities, handling of earth and bulk building material, layer compaction, etc. During the operation phase A negative impact on the landscape, natural habitats of rare species and common heritage can be expected mainly as a result of accidents andlor incidents.

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3.3 Adverse Impacts during Construction

The negative impacts during construction are mainly direct, temporary (within the construction phase), short-time and localized, without any cumulative effect.

3.3.1. Due to the nature of the contemplated works

Disrupted water supply in the region of activities. Potential deterioration of potable water quality upon a change in the water supply arrangements. Scattered materials and machines on the construction sites- pipes, reinforcement iron, pieces of castings, damaged building machines, etc.; creation of unregulated disposal sites for construction debris and spoil material. Inappropriate methods of work and waste treatment in the case of asbestos-cement pipe replacement. Disruptions of the transport traffic and the attendant inconvenience to residents.

3.3.2. Due to the type and use of materials

During construction, increased levels of fine dust concentrations in the air can be expected in the event of failure to apply the preventive measures during transportation, storage and placing of the aggregate materials used.

3.3.3. Due to construction debris and waste generated at the construction site

Waste generated during construction at any work site, according to the national classifier is: domestic solid waste, construction debris, waste fuels and lubricants, and less probable: hazardous, pints and varnishes. Domestic solid waste generated by the construction workers is handled together with that generated by the residents or urban territories. There is no provision for opening of any canteens or kitchens. The domestic solid waste from sites outside settlements will be collected in containers and disposed of in the nearest landfill. The waste generated upon dismantling of asbestos-cement pipes will be treated in conformity with the prevailing regulatory acts (items 17 and 18 of Appendix A).

3.3.4. Atmospheric Air

It is assumed that the operation of building machines and transport vehicles at any construction sector creates pollution by dust and exhaust gases. Due to the limited dimensions of the sectors such pollution is local, however in the urban territories it may exceed the permissible concentration limits (permissible concentration limits, PCL).

3.3.5. Noise and Vibrations

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Objects of impact by the "noise" factor will occur mainly during construction or refurbishment of the street water supply network in the settlements. The noise limits set for them are different depending on their function. ( it.23 of Appendix A). Residential areas: daytime - 55 dB(A), evening - 50 dB(A) and at night - 45 dB(A). Central urban areas and areas subjected to busy motor vehicle traffic: daytime - 60 dB(A), evening - 55 dB(A), at night - 50 dB(A). Educational activity and leisure areas: daytime - 45 dB(A), evening - 40 dB(A), at night - 35 dB(A). Medical facility areas: daytime - 45 dB(A), evening - 35 dB(A), at night - 35 dB(A). The noise sources during refurbishment of water mains and facilities, and during new construction are various transport and building machines and plants such as: dredger, front loader, asphalt cutter, compactor, asphalt laying equipment, roller, compressor, heavy-duty cars, with noise limits within the range 80 dB(A) - 92 dB(A). Noise levels considerably exceeding the above-indicated sanitary limits can be expected near the operating machines. The impact of high noise levels will last for a limited time period - till completion of the works in the respective sector of the water supply network. An increase of the overall acoustic load in that region of construction activities occurs also in the case of idle running building and transport machines.

3.3.6. Water

Release of effluent with excessive concentration of chlorine and chlorine-based reagents in open water courses during the startup and adjustment of the refurbished or newly built water mains and facilities.

3.3.7. Soils Erosion, floods, landslides and landfalls are factors that can cause environmental problems during both construction and operation phases.

3.3.8. Flora

According to data from the W&S operator and the Targovishte District Administration, the investment projects do not belong to the Natura 2000 territories under the Habitats Directive and no rare or endangered species are destroyed. Expropriations from the forest and agricultural fund and/or temporary use indemnifications shall be effected as required.

3.3.9. Fauna

In the course of construction of head water mains the habitats situated along the route will be left by the animal species, part of which will return to their old habitats upon completion of the construction and recultivation works.

3.3.10. Landscape

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The scale of contemplated rehabilitation and new construction is small and no significant impact on the landscape is expected. After completion of the construction the urban environment will be restored (pavement, curbs, side walks), and with recultivation along the head main routes (technical and biological), the landscape will be restored.

3.3.11. Health Factor

Health risks for the population: - Risk of excessive noise due to operation of the building machines. That noise is not permanent but with temporary effect only. The effect is disturbing and irritating. - Work in the open precludes the negative health effect of combustion gases and asphalt evaporations. Health risks to the workers: - Adverse weather conditions having in mind the need to work "in the open all the year round" in an environment with considerable temperature amplitudes. High temperatures are a risk factor of incidents such as thermal andlor sun shocks. Too low temperatures increase the frequency of colds, diseases of the skeletal/muscular and peripheral nervous system. - The drivers of building machines will be subjected to excessive noise levels of the order 80-100 dB(A). Noise has an adverse effect on the hearing and central nervous system resulting in somnopathy, development of neurotic conditions and arterial hypertension. - The drivers of building machines will be subjected to general and local vibrations. They injure the vestibular apparatus, the locomotory system and the parenchymal organs, the sensory and circulatory systems of the fingers. - With the limited scope of excavation and refurbishment works and work in the open air, no adverse health effect is expected by air pollution. - The labor traumatism risk is highest in the case of manual excavation and erection works. - In the case of hard physical work involving lifting and carrying of excessive loads, there is higher risk of diseases of the locomotory and nervous/muscular system.

During the construction the working envirosent factors can have certain effect on workers' health. Such effect is temporary and will be minimized if measures for protection of the workers' health and safety are undertaken.

3.3.12. Common Heritage

According to information from competent authorities there are no historical, architectural and archaeological monuments along the routes of the proposed sites. In the event of an unforeseen find the Bulgarian legislation provides for the necessary action. ~~~I~TBMR(it, 8 of Appendix A).

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3.4 Adverse Impacts during Operation

More significant adverse impacts are formed in the operation process in the event of improper disposal by the operating staff of waste generated on the facility site, excessive noise levels above the permissible noise limits /sanitary limit 70dB(A)/ and failure to apply the Emergency and Accident Action Plan in relevant situations.

4 Mitigation Measures against Potential Environmental Impacts due to Implementation of the Investment Program - during the construction phase and during the operational phase.

The present EMP contains mitigation measures against the negative environmental impacts that are referred to the above-listed potential impacts, and will be applied in the course of Project implementation and afrer that.

During the construction phase:

4.1. For normal functioning of the water sunply system in the regions that will be affected by the works, autonomous and/or alternative water supply should be organized for the time of construction and startup.

4.2. The repair works contemplated by W&S SPLLC, Targovishte of some facilities, pressure reservoirs, pump stations, chlorinating plants, head water mains, town water supply networks, allow, with appropriate organization, perfect matching of the construction/erection works (CEW) to the uninterrupted operation of the water supply system. As required, alternative water supply is ensured for cases of time extension announced by the operator.

4.3. In cases of modification of the water: supply pattern the operator shall provide additional quantities of chlorine and chlorine-based reagents for disinfection of the drinking water with a view to preventing adverse health effects to the population.

4.4. It is recommended to use with priority non-excavation technologies that permit minimization of the environmental impacts. Digging up of the streets is avoided. Besides, changes in traffic organization are reduced.

4.5. Construction debris is deposited in landfills defined by permits. Earth masses in the urban temtories as well as in the country are stored temporarily along the routes after which they are used for backfilling. The spoil materials /earth and rock/ are handed over to the state forestries or to interested persons.

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4.6. The humus stripped in the beginning of construction is kept at temporary disposal sites. After completion of the construction it is used for recultivation of disturbed lands.

4.7. The nearest motor depots are used for filling with fuel and lubricants.

4.8. In the event of generating any hazardous waste including those generated by replacement of asbestos-cement pipes, a firm possessing a license for their treatment is contracted.

4.9. The transport routes crossing settlements for waste transportation to the deposit sites are agreed upon with the municipalities.

4.10. For containment of the impact mainly on the working environment and on the population, the following measures should be undertaken: water sprinkling, monitoring of the condition of machines and vehicles.

4.11. In the final phase of the construction, the quantities of reagents needed to neutralize the residual quantities of chlorine in the effluent from flushing and sanitation of water mains and facilities shall be defined in order to meet the requirements of environmental legislation towards the quality of such effluents and to prevent pollution of the environment (soils and open water courses) by cblorine agents.

4.12. Drinking water is delivered to the the construction site by water-carrier cars or bottled.

4.13. In the course of rehabilitation measures and new construction in urban territories all effluents generated in the construction process as well as neutralized water from flushing and sanitation of water mains and facilities shall be discharged into the public sewerage system or into the nearest water basin with quality corresponding to its category.

4.14. In the case of crossing river courses, depending on the design solution, the front of crossing building machines and transport vehicles shall be restricted, with a view to reducing the impacts on the river ecosystem. The construction works shall be performed during low-water periods of the river courses.

4.15. The technical condition of machines shall be checked every month for oil leaks.

4.16. The existing latrines or chemical toilettts shall be used for the sewage.

4.17. In order to prevent soil pollution, inspections of the building machines and transport vehicles shall be regularly performed. Transport vehicles shall be washed in the appointed places.

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4.1 8. The transport vehicles shall be covered.

4.19. Management of head mains construction shall preclude triggering of landslides.

4.20. Blasting works shall be performed after a special, contained-blast plan in order to preserve the adjacent vegetation.

4.2 1. In the course of rehabilitation works and construction of new facilities the destruction of ligneous and fruticose vegetation shall be minimized as much as possible, after coordination with the competent authority.

4.22. in compliance with the Bulgarian legislation upon discovery of archaeological finds in the course of construction works the Museum of Archaeology and History shall be informed, the construction shall stop temporarily and the respective decision about their preservation shall be made. ( it.2 u it.8 of Appendix A).

4.23. Construction activities shall be limited within the daytime period - from 7,00 a.m.. Till 7,00 p.m.

4.24. The machines and plants used shall be kept in good repair.

4.25. The exhaust pipes of the transport vehicles and building machines shall be fitted with mufflers.

4.26. Idle running of the transport vehicles and building machines shall not be allowed.

4.27. With a view to limiting the adverse effect of unfavorable weather conditions, the workers shall be supplied with work clothes suitable for the season. ( it.15 of Appendix A).

4.28. The workers shall be supplied with personal protection means - helmets, ear muffs, anti-vibration gloves, safety belts, etc., depending on the specifics of work. (T. 15 of Appendix A).

4.29. In compliance with the normative requirements (with a view to reducing physical strain, overfatigue and development of skeletal-muscular diseases), regimen of work and rest within a worhng day are introduced. ( it. 15 of Appendix A).

According to the Bulgarian legislation (item 3 of Appendix A)., aggregate materials, concrete mixes and asphalt products used may be supplied only by enterprises possessing the respective license for their extraction and production.

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With respect to waste, the requirements of the Waste Management Act are met at all stages of the construction. The measures for mitigation and improvement of impacts related to investmeilts in rehabilitation and new construction at water supply sites will be included in the Technical Specification to the Construction Contract. Contractual support is an indispensable prerequisite for implementation, by the Contractor, of all needed measures for protection of the environment on the site itself and outside it and to limit the damage and inconvenience to people as a result of pollution, noise and other consequences of the construction works. The Contractor shall make sure that, by implementation of the indicated measures that the air emissions, surface run-off and treated effluents, noise and vibration impacts, etc., resulting from the activities performed do not exceed the levels stipulated by the applicable laws. ( items 3,4,5,9,10 and 12 of Appendix A). Preservation of the natural components is achieved through establishment of integration connections with the anthropogenic landscape components which, at the same time, will result in improvement of the visually aesthetic value of the environment. Coordinated action with the local state and Municipal authorities and the competent environmental protection and public health bodies is an important prerequisite for successful implementation of the planned rehabilitation measures and new construction in the water transfer network.

During the operation phase: 4.30. The solid domestic waste generated on the facility sites shall be collected by the operating staff in containers and transported by garbage trucks to the municipal waste landfill. 4.3 1.Ear muffs shall be provided for the workers. 4.32. The Emergency Action Plan defines the required environmental impact mitigation measures and the staff needed in such circumstances. The plan is developed by the Operator and reviewed by the local municipal administration

5 Monitoring

The contemplated model of monitoring the imp'lementation of the environmental impact mitigation measures was adopted so as to cover all aspects and requirements in conformity with the law and good engineering practice.

5.1 Monitoring and Control during the Construction

The adopted form of monitoring includes a specific description of the monitoring and control measures and covers all aspects of the construction process related to the adverse impact mitigation measures proposed in the adverse impact mitigation plan) with the parameters to be measured, methods to be applied, points of sampling, measurement - - intervals, concrete description of the organizational structures and reporting procedures; Omonit Consult LLC, 17 G. Benkovski Street, Sofia 1000 phone.:02/980-21-16; fax:02/980-04-68 14 Environment Management Plan - an Investment Program of Water & Sewerage SPLLC - Targovishte

5.2 Monitoring and Control during the Operation

During the operation phase monitoring of the contemplated project sites shall be performed by the Operator's company in conformity with the normative requirements.

Organization of EMP application and reporting;

Monitoring and reporting will be applied entirely by the Contractor's management. The Contractor shall exercise everyday monitoring of the normal environmental practices by presentation of regular reports. These reports shall be addressed to the institutions indicated in the normative requirements and once in a month - to the Employer /Engineer/. The Contractor shall appoint its specialidt in charge of the environmental aspects of the Project. The Engineer auditing the process shall report on the performance of environrner~tal impact mitigation measures included in the Technical Specification to the Contract; on the correct understanding and application of EMP by the Contractor; on assurance of the relevant steps; on keeping correct record of any discrepancies, on the conducting of briefing and training, emergency aid measures, and shall evaluate and correct the Contractor's reports.. The respective government institutions will be involved in auditing of all environmental protection and social measures and the progress on the Project by receiving regular reports in conformity with the normative requirements. The Project Management Unit (PMU) established at the MRDPW shall keep and store the documentation required by law and by contract. On the basis of the Engineer's reports and site visits as required, EMP performance and progress reports will be presented to the World Bank every six months.

Institutional Responsibilities in Implementation of the Environment Management Plan

Making of decisions on Responsibilities for environment management impact mitigation and Reporting relations /start of action, expense performance (who reports to whom) , authorization, monitoring and intervals I II Activities persons in charge MRDPW /Employer/ Contractor to Engineer Monitoring of Engineer RIE W /monthly/ EMP Supervisor, contact RIPQPH Engineer: performance person appointed IAE to MRDPW by Employer Municipalities to RIEW IMRDPWI /monthly/ HEW PMU at MRDPW to the RlPQPHMoEW

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6 Conclusions and Steps Recommended to Ensure Performance of the EMP.

According to the developed Environmental Impact Mitigation Program (Annex 2) and Environmental Monitoring Program (Annex 3), the Contractor is not required to provide additional facilities involving significant costs. The recommended steps needed to ensure performance of the EMP are: a) Plan the funds for implementation of the environmental impacts mitigation measures and the EMP performance monitoring by including it in the Technical Specifications to the Construction Contract. b) Obtain the Contractor's correct understanding of the steps and resources required for environment management, the required steps and measures being evaluated and offered. c) Discuss the EMP at preliminary clarification sessions. d) After signing of the Contract, the Employer shall officially familiarize the Contractor with the prevention and irripact mitigation by means of the EMP included in the Contract and the implementation of monitoring. The main problems, conclusions, recommendations and negative impact mitigation measures are defined in conformity with the objectives set in the Terms of Reference. In the longer term, with the proposed investment projects, application of the EMP and through application of good engineering practices for optimization of the set of activities in the process of producing and supply of drinking and washing water to the population, the objectives of responsible use of water resources set in the government's policy for sustainable development of the water sector are achieved without any risk to the environment and with a beneficial effect on the life quality of the population, which leads to the conclusion that the Project is beneficial.

7 Consultations and Public Discussions - Discussion of the Positive and Adverse Impacts, Routine Consultations and NGO

In connection with the Municipal Infrastructure Improvement Project and more particularly, with implementation of the Investment Program of Water & Sewerage SPLLC - Targovishte for the period 2008-2010 funded from a World Bank loan, the Environment Management Plan was publicly announoed at Water & Sewerage SPLLC - Targovishte. ( EMP announcement I Place of Comments made What was I date announcement 1 incorporated I 1 2 3 4 W&S LLC- No objections, comments Targovishte, on or recommendations the notice board were received within the 15-day time limit.

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-- -- ~~ Omonit Consult LLC, 17 G. Benkovski Street, Sofia 1000 phone.:O2/980-21-16; fax:02/980-04-68 17