Proposed Multitranche Financing Facility Georgia: Sustainable Urban Transport Investment Program

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Proposed Multitranche Financing Facility Georgia: Sustainable Urban Transport Investment Program Environmental Assessment Report Initial Environmental Examination Rehabilitation and Reconstruction of Secondary Road Zugdidi-Jvari-Mestia-Lasdili KM.74– KM.80, KM.89, KM.91 - 103 and KM.21-KM.125 Project Number: 42414 September 2010 Proposed Multitranche Financing Facility Georgia: Sustainable Urban Transport Investment Program CURRENCY EQUIVALENTS (as of 10 May 2010) Currency Unit – lari (GEL) GEL1.00 = $0.57 $1.00 = GEL1.75 Abbreviations ADB - Asian Development Bank CAS - Center of Archaeological Search of the Ministry of Culture and Sports MoE - Ministry of Environmental Protection and Natural Resources IEE - Initial Environmental Examination GIS - Geographical Information Systems EMP - Environmental Management Plan MAC - Maximum Admissible Concentrations RAP - Resettlement Action Plan MoA - Ministry of Agriculture MLHSP - Ministry of Labor, Health and Social Protection GOG - Government of Georgia NGO - nongovernment organization MUFSRA - Management Unit for Food Safety and Risk Analyze of the Ministry of the Agriculture FS -Feasibility Study MDF -Municipal Development Fund EIP -Environmental Impact Permit MoED -Ministry of Economic Development SPS -Safeguard Policy Statement 1 CONTENTS I. EXECUTIVE SUMMARY 4 A. Introduction 4 B. Legal and Administrative System 4 C. Project Description 8 II. POLICY, LEGAL AND ADMINISTRATIVE SYSTEMS 13 A. Georgian Legislation 13 B. Environmental and Social Requirements of the ADB 26 III. PROJECT DESCRIPTION 32 A. Introduction 32 B. Location of Project Area 32 C. Project Concept 34 IV. DESCRIPTION OF THE ENVIRONMENT (BASELINE DATA) 68 A. Physical Resources 68 B. Ecological Resources 84 C. Socio-Economic Resources 87 V. ANTICIPATED ENVIRONMENTAL IMPACTS AND MITIGATION MEASURES 96 A. Design phase 96 B. Construction Phase 97 C. Potential Environmental Impact - Construction Stage 99 D. Exploitation Phase 100 E. Physical Resources 104 F. Soil and Water Pollution and Waste Management Issues 108 G. Ecological Resources 113 H. Socio-Cultural Resources 115 I. Community Disturbance and Health and Safety Issues 116 J. Construction Camp 119 K. Impacts on Quarry Sites Cause by Construction Activities 119 L. Possible Emergency Situations during Construction Activities and Their Expected Environmental Impacts; 119 M. Construction Related Impacts at the Asphalt Plant Sites 119 N. Mitigation Measures of Exploitation Phase 120 VI. ANALYSIS OF ALTERNATIVES 121 VII. INFORMATION DISCLOSURE, CONSULTATION, AND PARTICIPATION 121 A. Legislation and regulations of Georgia 121 B. ADB Requirements 122 C. Public Consultation Scheme 124 D. Disclosure of documents 124 E. Public Discussions 124 VIII. GRIEVANCE REDRESS MECHANISM 130 IX. ENVIRONMENTAL MANAGEMENT PLAN 130 A. Institutional Framework for EMP Implementation 130 B. Reporting on EMP Implementation 131 C. Monitoring 131 D. Budget for implementation of EMP 132 E. Remedies for EMP Violation 132 F. EMP Matrixe 133 X. CONCLUSION AND RECOMMENDATION 141 I. EXECUTIVE SUMMARY A. Introduction 1. Upgrading and improvement of local transport and transport-related infrastructure plays a significant role in the development of Georgia infrastructure. To this effect a number of important activities have been implemented and financed from the budget of Georgia and from other sources. Improvement of transport and related infrastructure plays an important role in improvement of Georgia’s urban infrastructure. Recently several significant programs, financed through state budget, loans and grants, have been implemented with this regard. Notwithstanding the efforts undertaken so far several problems need to be solved regarding development of transport infrastructure. 2. Rehabilitation of Zugdidi-Jvari-Mestia-Lasdili motor road was initiated by the Department of Motor Roads of Georgia. The road is of national significance and connects upper Svaneti region with Tbilisi-Senaki-Leselidze main motor road. Currently the road needs significant rehabilitation in order to restore its operational capacity and ensure traffic safety. Certain sections and infrastructure facilities of the road need significant reconstruction. The secondary road Zugdidi-Jvari-Mestia-Lasdili links the villages located in Zeda Svaneti region, Daba Mestia and Mestia with the region Zugdidi as well as with the trunk road Tbilisi- Senaki-Leselidze, which is the main road in the region. It should be noted that the present project will significantly contribute to the socio-economic development of Zeda Svaneti region and facilitate development of tourism infrastructure. 3. Presented project is one of various projects backed by international donor organizations to be implemented by the Municipal Development fund (MDF). 4. MDF aims at strengthening institutional and financial capacity of municipalities through investing financial resources in local infrastructure and services, and on improving on sustainable basis the primary economic and social services, 5. The Municipal Development Fund of Georgia (MDF) is a legal entity under Public Law. Its objectives are to facilitate institutional and financial capacity building of the local municipalities, invest in the development of local infrastructure and services and improve economic and social services to the local communities B. Legal and Administrative System 1. Legal System in Georgia and ADB Regulations 6. The basic legal document in the country is “The Constitution of Georgia”, which was adopted in 1995. While the Constitution does not directly address environmental matters, it does lay down the legal framework that guarantees environmental protection and public access to information with regard to environmental conditions. 7. Legislative execution of constitutional requirements in the sphere of environmental protection is implemented through the framework “Law on Environmental Protection” (1996, as amended) and the set of specific laws developed on its basis. In particular, the law addresses a broad spectrum of issues, like environmental management, environmental education and awareness building, licenses and permits, fines and enforcement, environmental impact assessment, which should be further regulated by specific laws. 8. At present, the environmental permitting procedure in Georgia is set out in three laws: (i) The Law on Licenses and Permits (2005); (ii) The Law on Environmental Impact Permits (EIP), and (iii) The Law on Ecological Examination (EE) 2008. Details the EIA process and required content of the EIA document is described in the Regulation on EIA issued by the MOEPNR (16.03.2009). 9. The Law of Georgia on Environmental Impact Permits determines the complete list of activities and projects subject to ecological examination (clause 4 p.1) and the legal basis for public participation in the process of environmental assessment, ecological examination and decision making on issuance of an environmental impact permit. 10. According to Georgian Regulations, the project of reconstruction of the Zugdidi-Jvari- Mestia-Lasdili requires preparation of the EIA and obtaining of Environmental Impact Permit. The EIA has been developed, public consultations conducted and Environmental Impact Permit has been issued by MoEPNR in 2010, based on conclusion of the Ecological Expertise. a. Other Environmental Laws pertinent to the project: (i) The Law on the Environmental Protection Service (Agency), 2008; (ii) The Law of Georgia “on Ambient Air Protection”, 2000 (iii) Forestry Code of Georgia (1999, (iv) Law of Georgia ‘On the system of the protected areas’ (1996) (v) Law of Georgia ‘On the Red List and Red Book’ (2003) (vi) The ‘Law of Georgia on Cultural Heritage’ was approved in May of 2007 (vii) Georgian Law on Regulation and Engineering Protection of Coasts of Sea, Water Reservoirs and Rivers of Georgia (27.12.2006, No. 4131) (viii) The Law of Georgia on Construction Permit 25.06.2004 (ix) Decree No 140 of the Government of Georgia on the Rules and Conditions for Issuing Construction Permit (11.08.2005) b. ADB Environmental Guidelines 11. All projects funded by ADB must comply with ADB Safeguard Policy Statement (2009). The purpose of the Policy is to ensure that the projects undertaken as part of programs funded under ADB loans are environmentally sound, are designed to operate in compliance with applicable regulatory requirements, and are not likely to cause significant environmental, health, or safety hazards. 12. Safeguard policies are generally understood to be operational policies that seek to avoid, minimize, or mitigate adverse environmental and social impacts, including protecting the rights of those likely to be affected or marginalized by the development process. ADB’s safeguard policy statement (SPS) sets out the policy objectives, scope and triggers, and principles for three key safeguard areas: (i) The Involuntary Resettlement Policy (1995); (ii) The Policy on Indigenous Peoples (1998), and (iii) The Environment Policy (2002). (iv) EIA and Environmental Screening under ADB Guidelines (v) ADB carries out project screening and categorization at the earliest stage of project preparation when sufficient information is available for this purpose. Screening and categorization is undertaken to (i) reflect the significance of potential resources required for the safeguard measures; and (iii) determine disclosure requirements. (vi) ADB uses a classification system to reflect the significance of a project’s potential environmental impacts. A project’s category is determined by the category of its most environmentally sensitive component, including direct, indirect,
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