ENVIRONMENTAL IMPACT ASSESSMENT STUDY ON REGIONAL WATER SUPPLY SYSTEM OF MONTENEGRIN COAST FROM WATER SOURCE BOLUE SESTRE

GOVERNMENT OF THE B REPUBLIC OF .

Public Disclosure Authorized PE REGIONALNI VODOVOD CRNOGORSKO PRIMORIE

E1545

r . Public Disclosure Authorized

ERCEG NOVi

ULCINJ Public Disclosure Authorized

ENVIRONMENTAL INIPACT ASSESSMENT STUDY

ON REGIONAL WATER SUPPLY SYSTEM OF MONTENEGRIN COAST FROM WATER SOURCE BOLJE SESTRE Public Disclosure Authorized FINAL

MARCH 2007

ITSC LTD. MONTENEGRO - OCTOBER 2006 ENVIRONMENTAL IMPACT ASSESSMENT STUDY ON REGIONAL WATER SUPPLY SYSTEM OF MONTENEGRIN COAST FROM WATER SOURCE BOLJE SESTRE

TABLE OF CONTENTS

EXECUTIVE SUMMARY ...... ViII 1. INTRODUCTION ...... 9 1.1. COMPARATIVE ANALYSIS OF WATER SOURCES BOLJE SESTRE AND KARUC AND SELECTION OF THE SOURCE FOR REGIONAL WATER SUPPLY SYSTEM OF MONTENEGRIN COAST ...... 9 1.2. WATER DEMAND AND RWSS CAPACITY ...... 9 1.3. DESCRIPTION OF THE RWSS ...... 9 1.3.1. THE CONTINENTAL PART OF THE RWSS ...... 9 1.3.2. THE COASTAL PART OF THE RWSS ...... 9 2. LEGAL AND ADMINISTRATIVE FRAMEWORK ...... 9 2.1. ENVIRONMENTAL LAW ...... 9 2.1.1. ENVIRONMENTAL PROTECTION MEASURES ...... 9 2.2. INSTRUCTIONS FOR THE CONTENTS OF THE EIA STUDY ...... 9 2.3. LAW ON NATIONAL PARKS ...... 9 2.4. REGULATIONS ON ENVIRONMENT IMPACT ASSESSMENT ...... 9 2.5. LAW ON SKADAR ...... 9 2.6. REGULATION ON THE PROTECTION OF RARE, EXCEPTIONAL, ENDANGERED AND ENDEMIC SPECIES ...... 9 2.7. LAW ON PROTECTION OF CULTURAL MONUMENTS ...... 9 2.8. REGULATION ON WATER CLASSIFICATION AND CATEGORIZATION ...... 9 2.9. LAW ON NATURE PROTECTION ...... 9 2.10. REGULATION ON HYGIENIC QUALITY OF POTABLE WATER ...... 9 2.11. EUROPEAN WATER LEGISLATION ...... 9 3. BASELINE DATA ...... 9 3.1. SKADAR LAKE BASIN ...... 9 3.1.1. SKADAR LAKE ...... 9 3.1.2. BOLJE SESTRE-AREA DESCRIPTION ...... 9 3.1.3. HYDROLOGY OF SKADAR LAKE ...... 9 3.1.4. THERMAL WATER REGIME OF SKADAR LAKE ...... 9 3.1.5. WATER QUALITY ...... 9 3.1.6. RESEARCH ACTIVITIES AT BOLJE SESTRE SOURCE ...... 9 3.1.7. CLIMATE 9 3.1.8. ECOSYSTEM AND BIODIVERSITY ...... 9 3.1.9. POPULATION ...... 9...9 3.1.10. TOURISM 9 3.1.11. NATIONAL PARK "SKADAR LAKE" ...... 9 3.1.12. CULTURAL HERITAGE ...... 9 3.2. MONTENEGRIN COAST ...... 9 4. SOCIOLOGICALPARTOFTHESTUDY ...... 9 4.1. ORGANIZATION OF SOCIOLOGICAL RESEARCH ...... 9 4.2. RESEARCH IN THE VILLAGES NEIGHBOURING THE FUTURE WATER INTAKE ...... 9 4.3. NGO OPINION ...... 9

ITSC LTD. MONTENEGRO - OCTOBER 2006 ENVIRONMENTAL IMPACT ASSESSMENT STUDY ON REGIONAL WATER SUPPLY SYSTEM OF MONTENEGRIN COAST FROM WATER SOURCE BOLJE SESTRE 4.4. CONCLUSIONS ...... 9 5. ENVIRONMENTAL IMPACTS ...... 9 5.1. PROJECT IMPACTS ON THE SKADAR LAKE BASIN ...... 9 5.1.1. IMPACTS ON WATER REGIME ...... 9 5.1.2. IMPACT ON NEIGHBOURING COUNTRIES ...... 9 5.1.3. IMPACT ON WATER QUALITY ...... 9 5.1.4. IMPACT ON AIR QUALITY...... 9 5.1.5. IMPACT ON SOIL QUALITY ...... 9 5.1.6. IMPACT ON POPULATION HEALTH ...... 9 5.1.7. IMPACT ON ECOSYSTEM...... I 9 5.1.8. POTENTIAL NEGATIVE POOR MANAGEMENT IMPACT ...... 9 5.1.9. IMPACT ON POPULATION, ITS DENSITY AND MIGRATIONS ...... 67 5.1.10. IMPACT ON TOURISM...... 9 5.1.11. IMPACT ON LAND USE AND MANAGEMENT ...... 68 5.1.12. IMPACT ON INFRASTRUCTURE ...... 9 5.1.13. IMPACT ON NATURAL AND CULTURAL HERITAGE ...... 9 5.1.14. IMPACT ON LANDSCAPE FEATURES ...... 9 5.1.15. OTHER IMPACTS...... 9 5.1.16. SUMMARY OF REVIEWED IMPACTS ...... 9

5.2. PROJECT IMPACT ON THE COASTAL REGION OF MONTENEGRO ...... 9 5.2.1. CONSTRUCTION PHASE...... 9 5.2.2. OPERATIONAL PHASE...... 74 5.2.3. IMPACT ON LOCAL SEWERAGE SYSTEM ...... 75

5.3. SUMMARY OF REVIWED IMPACTS...... 76 5.4. THE PROJECT BENEFITS...... 78 6. ENVIRONMENT MANAGEMENT PLAN ...... 9 6.1. IMPLEMENTATION OF MITIGATION AND MONITORING MEASURES ...... 9 6.2. PROPOSED MITIGATION MEASURES ...... 9 6.2.1. WATER REGIME ...... 9 6.2.2. WATER QUALITY...... 9 6.2.3. AIR QUALITY ...... 9 6.2.4. SOIL QUALITY ...... 9 6.2.5. POPULATION HEALTH ...... 9 6.2.6. ECOSYSTEM ...... 9 6.2.7. POPULATION, ITS DENSITY AND MIGRATIONS ...... 9 6.2.8. TOURISM ...... 9 6.2.9. LAND USE ...... 9 6.2.10. INFRASTRUCTURE...... 9 6.2.11. NATURAL AND CULTURAL HERITAGE ...... 9 6.2.12. LANDSCAPE CHARACTERISTICS ...... 9 6.2.13. PREVENTION OF ACCIDENTS DURING CONSTRUCTION ...... 9 6.2.14. MANAGEMENT AND TRAINING DURING OPERATION ...... 9 6.3. MITIGATION MEASURES FOR THE COASTAL REGION OF MONTENEGRO ...... 9 6.4. ENVIRONMENTAL MONITORING PLAN ...... 9 6.5. THE COSTS OF THE ENVIRONMENTAL MONITORING AND MANAGEMENT PLAN ...... 9 7. CONCLUSIONSAND RECOMMENDATIONS ...... 9 8. BIBLIOGRAPHY...... 9

ITSC LTD. MONTENEGRO - OCTOBER 2006 111 ENVIRONMENTAL IMPACT ASSESSMENT STUDY ON REGIONAL WATER SUPPLY SYSTEM OF MONTENEGRIN COAST FROM WATER SOURCE BOUE SESTRE

LIST OF TABLES

TABLE 1-1 WATER QUANTITIES NECESSARY TO SUPPLY DURING SUMMER PERIODS ...... 9

TABLE 2-1 PARAMETERS AND MPC VALUES FOR VARIOUS WATER CLASSES ...... 25

TABLE 3.1 BASELINE MORPHOMETRIC DATA ON SKADAR LAKE AT MEAN WATER LEVEL ...... 33

TABLE 3.2 SKADAR LAKE WATER TEMPERATURES (°C) IN THE PERIOD OF 1952.- 1970., ACCORDING TO THE RHMZ DATA.. 37

TABLE 3-3 -WATER TEMPERATURE (°C) OF MALO BLATO AND BOLJE SESTRE, ACCORDING TO THE RHMZ AND CETI ...... 39

TABLE 3-4 BASIC ANIMAL SPECIES INTHE SKADAR LAKE REGION ...... 49

TABLE 3-5 POPULATION BY VILLAGES ...... 51

TABLE 3-6 AVERAGE POPULATION AGE BY VILLAGES ...... 52

TABLE 3.7 POPULATION ACTIVITIES - INDIVIDUAL INDUSTRIES (CENSUS 2003.) ...... 52

TABLE 4-1 OVERVIEW OF STATISTICAL DATA FOR DODOSI VILLAGE ...... 63

TABLE 5.1 SUMMARY OF REVIEWED IMPACTS ...... 74

TABLE 5.2 POTENTIAL ENVIRONMENTAL IMPACTS, PROPOSED PROTECTION AND MONITORING MEASURES ...... 79

TABLE 6-1 ENVIRONMENTAL MONITORING PLAN ...... 91

ITSC LTD. MONTENEGRO - OCIOBER 2006 IV ENVIRONMENTAL IMPACT ASSESSMENT STUDY ON REGIONAL WATER SUPPLY SYSTEM OF MONTENEGRIN COAST FROM WATER SOURCE BOUE SESTRE

LIST OF DRAWINGS

DRAWING I General scheme of the RWSS facilities and the biodiversity areas DRAWING 1.1 Continental branch of the RWSS DRAWING 1.2 Northern branch of the RWSS DRAWING 1.3 Southern branch of the RWSS

DRAWING II RWSS infrastructure with the boundaries of the National Park Skadar Lake

ITSC LTD. MONTENEGRO - OCTOBER 2006 v ENVIRONMENTAL IMPACT ASSESSMENT STUDY ON REGIONAL WATER SUPPLY SYSTEM OF MONTENEGRIN COAST FROM WATER SOURCE BOLJE SESTRE

ABBREVIATIONS, ACRONYMS AND UNITS

RWSS Regional Water Supply System WPF Water Production Facility

WWTP Wastewater Treatment Plant

EMP Environmental Management Plan

NP National Park

MPC Maximum Permissible Concentration

COD Chemical Oxygen Demand

BOD5 Biochemical Oxygen Demand

UV Ultraviolet

THM Trhalomethanes

THMFC Trhalomethanes Forming Capacity

TOC Total Organic Carbon

SS Suspended Solids

TSS Total Suspended Solids

TDS Total Dissolved Solids

masl Meter Above Sea Level CETI Centre for Ecotoxicological Research of Montenegro (Centar za ekotoksikoloska ispitivanja)

RHMZ National Hydrometeorological Service (Republi6ki hidrometeoroloski zavod)

BPC Break Pressure Chamber

PS Pumping Station

VI ITSC LTD. MONTENEGRO - OCTOBER 2006 ENVIRONMENTAL IMPACT ASSESSMENT STUDY ON REGIONAL WATER SUPPLY SYSTEM OF MONTENEGRIN COAST FROM WATER SOURCE BOLUE SESTRE

ITSC LTD. MONTENEGRO - OCTOBER 2006 VII ENVIRONMENTAL IMPACT ASSESSMENT STUDY ON REGIONAL WATER SUPPLY SYSTEM OF MONTENEGRIN COAST FROM WATER SOURCE BOLJE SESTRE

EXECUTIVE SUMMARY

Five coastal municipalities of the Republic of Montenegro (Bar, , Kotor, and ) are supplied with water from local sources and the remaining one () receives the majority of the water from neighbouring . Hydrogeological analyses show that local water sources have almost reached the limits of their capacities, and cannot provide additional quantities of water during the summer season. On the other side, the development of coastal region and expansion of tourism capacities practically depend on the provision of additional water quantities. The project will provide the stabile water supply on the southern region of Montenegro, covering the territories of the municipalities of Herceg Novi, Kotor, Budva, Tivat, Bar and Ulcinj. According to the last Census (2003), the number of inhabitants in this area was around 170.000. This number significantly increases in the peak tourist season. Total demand, even today, is higher than the production and water deficit will reach 1.500 Itr/sec by the year 2033. In 2005, a ((Cost-benefit analysis of possible solutions for the long-term water supply of Montenegrin Coast>> been carried out. The analysis was made with the aim of bringing the final decision on water source for the regional water supply system of Montenegrin Coast. The initial assessments and investigations narrowed the selection of water sources to five locations: Karuc, Bisevina-Bolje sestre, Vucko Blato, Tusko Poije and River. The Study resulted with the conclusion that the most feasible locations are water sources from the Karuc and from Malo Blato basin. In the location Malo Blato two-microlocation have been analized: Bolje Sestre spring and Bisevina River. During the 2005 and 2006 investigation activities have been conducted at the microlocations Karuc, Bisevina River and Bolje sestre spring. Engineering requirements, wider area for sanitary protection of the water intake and lower water quality then the other two alternatives eliminated Bisevina River as the microlocation for the water intake. Additional investigations revealed significant advantages of Bolje sestre over Karuc, and finally Bolje sestre source has been selected for long-term water supply of Montenegrin Coast. Karuc as the water intake for the RWSS has been included in the Special Plan of the Republic Montenegro. Replacing the water intake microlocation from Karuc to Boije sestre is ongoing process. It is envisaged for the RWSS to have maximum capacity of 1500 I/s, where at the source itself water capturing is planned in two phases: 1000 I/s in the beginning (to meet the demands at least until 2020), * additional 500 I/s in the 2nd phase The entire system is around 140 km long, and its construction will last around 3 years. RWSS of the Montenegrin Coast consist of the two subsystems: continental part and coastal part. The continental part stretches from the water intake Bolje sestre, through the hydrotechnical tunnel Sozina, to reservoir ,,Djurmani", the main water storage tank in the system. The route partly stretches over the Skadar Lake area. The coastal part is divided into southern and northern branch. The northern branch, 73 km long, stretches from the reservoir,,Djurmani" to the municipalities of Budva, Kotor, Tivat and Herceg Novi. The southern branch, totalling 34 km in length, is envisaged for the water supply of the municipalities of Bar and Ulcinj.

ITSC LTD. MONTENEGRO - OCTOBER 2006 Vill ENVIRONMENTAL IMPACT ASSESSMENT STUDY ON REGIONAL WATER SUPPLY SYSTEM OF MONTENEGRIN COAST FROM WATER SOURCE BOUE SESTRE Considering the concept of the regional water supply system of the coastal region of Montenegro, the project may be divided into: inland part - encompassing the Skadar Lake Basin, and Montenegrin Coast. Location of the water source for the water supply system of Montenegrin coast, as well as 20 km long pipeline, is situated in the Skadar Lake basin. Skadar Lake is National Park i.e. the natural value of interest for the Republic of Montenegro. Malo blato is a separate water basin (it looks like the lake's gulf), and it is also part of the Skadar Lake and belongs to the protected area of the Skadar Lake National Park. Malo blato has typical characteristics regarding biodiversity, geomorphology, hydrogeology, thermal regime, etc. as the Skadar Lake. In this area, there are no registered rare or endangered species. In that sense the Study analyzed the Skadar Lake as the sensitive wider environment and the Bolje sestre spring as the microlocation. Skadar Lake is one of the largest fresh water in Europe and has an extremely wide floodplain in its northern part. Ramsar convention from 1996 included Skadar Lake into list of internationally important swamps, as significant water birds' habitat. Ecosystem of the lake is extremely complex, sub-Mediterranean type, with dominant wetland biotypes, which cover mainly northern side, and thus represents important habitat for bird survival. It is related to the general high production of organic mass in this area, from plankton production, to invertebrates and fish, birds and mammals. Malo blato area, thus the Bolje sestre source, is not known as an area inhabited with specific plant or animal species, and is not included in the National Park Skadar Lake special protected areas. In other words, the area of Boije sestre and Malo blato is habitat of flora and fauna that can be found in other parts of the Lake, too. The species found in area of Bolje Sestre are not rare or endangered and they are typical for this kind of the spring.

On the basis of biological analyses of phyto- and zooplankton, microbiological component, and physicochemical parameters, during the period of July 2005-September 2006, it has been assessed that the source water quality at the location of the potential water intake, BoIje sestre in Skadar Lake, is - Al Class, and therefore the source is suitable for water intake, according to the existing legislation of the Republic of Montenegro. Considering the maximum water quantity for intake, volume of the Lake will be reduced for only 0,03%. Estimated water level decrease is app. 2 mm, while the natural annual water level fluctuation is app. 5 m. However, it is well known that the Lake's water level is continually recovered due to constant water inflow and precipitation. Maximum impact of 2 mm fluctuation of the water level was calculated under the assumption that during the summer withdrawal period no water in the lake would be replenished. In reality water will be replenished, therefore the impact on the water level will be even much less that 2 mm. Thus, the capturing of the mentioned water quantities would not have any impact on water level and water quality of the Lake, and the basin in general. The water temperature of Malo blato almost fully depends on climate conditions and Boije Sestre has a stable water temperature (vary between 11C in winter and 14°C during summer). Also, the water at 20 m far from Bolje Sestre spring has temperature same as water temperature in the middle of Malo Blato, it can be concluded that the impact of the project on thermal regime of the Malo Blato i.e. Skadar Lake is minimal.

ITSC LTD. MONTENEGRO - OCTOBER 2006 ix ENVIRONMENTAL IMPACT ASSESSMENT STUDY ON REGIONAL WATER SUPPLY SYSTEM OF MONTENEGRIN COAST FROM WATER SOURCE BOLJE SESTRE Impact on the environment caused by using the water from the spring could be evident through the thermal water regime and amount of water which will be used for the project. Those parameters are the biological conditions which determinate the biodiversity. Considering the quantities of water captured for the needs of RWSS and Boije sestre flow volume, the biological minimum will be provided. An assessment of the environmental impacts that may result from the construction and operation of the proposed RWSS has been made in reference to the baseline of the existing environmental situation. The emphasis is given to the likely significant environmental impacts, both adverse and beneficial. Temporary, short-term impacts and permanent effects are considered both for the construction and operational phases. The table presents the impact on the Boije Sestre source as the microlocation, impact on the Malo Blato (as a part of the Skadar Lake), and the area of NP Skadar Lake entirely.

Construction Phase Operational Phase Reviewed Environment Boje Malo Blato Skadar Boje Malo Blato Skadar Sestre MaoBaoLake sestre MaoBaoLake

Water Regime - - - o0

Neighbour Countries 0 0 0 0 0 0

Water Quality - - -0 0

Air Quality - 0 0

Soil Quality - 0 0 0 0 0

Population Health 0 0 0 0 0 0

Meteorological Parameters and Climate 0 0 0 0 0 0

Ecosystem 0

Population 0 0 0 0 0 0

Tourism - - - ++ 0

Land Use and Management +-+ 0 0

Infrastructure - 0 ++ 0 0

Natural and Cultural Hertage 0 0 0 0 0

Landscape Features 0 - 0 0

Legend: O = no impact - = low negative impact - - = medium negative impact --- = large negative impact + = low positive impact ++ = medium positive impact ++ + = large positive impact The project component relating to the coastal region of Montenegro entails the construction of: pipeline, pumping stations and reservoirs.

ITSC LTD. MONTENEGRO - OCTOBER 2006 x ENVIRONMENTAL IMPACT ASSESSMENT STUDY ON REGIONAL WATER SUPPLY SYSTEM OF MONTENEGRIN COAST FROM WATER SOURCE BOUE SESTRE It should be noticed that its most sensitive part - the construction of hydrotechnichal tunnel Sozina (4,2 km) - is already implemented and requires small-scale reconstruction that will be undertaken together by agreement with the company "Monteput", which uses this tunnel as the emergency tunnel of the transportation tunnel Sozina. It should also be noticed that the most environmentally sensitive areas in the coastal region, such as: area surrounding Bojana River, Salt Factory in Ulcinj and Solila near Tivat, are not included in the project. The RWSS concept itself entails water distribution up to the connection points with the local water supply systems, without entering urban areas. The pipeline route to the connection point for the future tourist complex at Velika Plaza beach for the most part follows the main road to Ulcinj and has no significant environmental impact. The construction of pipeline and accompanying facilities in both Skadar Lake area, i.e. continental part of the pipeline, and in the coastal region, will not have negative environmental impact due to implementation of proper protection and implementation measures, stipulated by project documentation and this study.

The following table provides the state of the environment without RWSS and with the future RWSS, and the summary of reviewed impacts, as well as some of the protection, reconstruction and monitoring measures.

ITSC LTD. MONTENEGRO - OCTOBER 2006 xi ENVIRONMENTAL IMPACT ASSESSMENT STUDY ON REGIONAL WATER SUPPLY SYSTEM OF MONTENEGRIN COAST FROM WATER SOURCE BOUE SESTRE

s Impacts Mitigation / Monitoring I Without the Project With the Project Assessment

Water regime No impact Changed water source MontQI qfJfe Water fbw capacity

WE6rshOd N-oimlct

______StXid

Neighboring countries No impact No impact Constant pre-treatment monitoring; constant water Water quality Raw water quality Potable water quality parameters monitoring during and after the treatment

Modem machinery; periodical Air quality No impact Dust, exhaust gases, noise monitoring, only in the construction phase

Soil quality No impact No impact Proper construction planning Some local water sources have questionable water Positive impacts quality and will be Population health Health disease disconnected from the water supply network after the RWSS completion

Meteorological parameters No impact No impact and climate Preservation of species; their rehabilitation after the Vegetation veqetation Vegetation damaging construction phase, v t occasional vegetation monitoring

Animal species Birds and fish habitats Decrease in the population Preservation of species; number of animal species occasional wildlife monitoring

Population No impact Positive impacts

Tourism Endangered Tourism development m NProvision of employment Employment No Impact opportunities Land pnce decrease Next to the WTP site Land use No impact Land price increase Inthe surrounding area

WatesstemWTP suply performance Watoveert;supply tsyste monitoring; prevention of Infrastructure Noimpvement impacts on road blockages and their Inrsrctrhoimatradsedrn hcntuto devastation in the phase construction phase

Natural and cultural heritage No impact No impact

ITSC LTD. MONTENEGRO - OCTOBER 2006 xii ENVIRONMENTAL IMPACT ASSESSMENT STUDY ON REGIONAL WATER SUPPLY SYSTEM OF MONTENEGRIN COAST FROM WATER SOURCE BOUE SESTRE An expert team of the Public Enterprise Skadar Lake NP and an inspection team of the Ministry in charge of environmental protection and physical planning, within their regular activities implement environmental monitoring in the area of NP Skadar Lake. In case any negative impact would be registered, RWSS company must eliminate the impact and mitigate consequences, in accordance with the institutions of the stated teams. Environmental inspection team will implement monitoring of both construction and operational phase in the coastal region of Montenegro.

Public Enterpriseof the NP, reviewed the RWSS project documentation (designs, investigations results, draft of the EIA, etc.), made opinion that project implementation will not have negative impact on Skadar lake basin and issued the official approval for the project.

After the various presentations of the project based on its environmental and economic aspects have been hold, it can be conclude that the project enjoys significant public support in providing long-term solution for the water supply of the coastal region of Montenegro, which will not endanger environmentally sensitive area of Skadar Lake due to foreseen environmental protection measures.

The benefits of the RWSS of Montenegrin coast are long-term and of great importance for improving the stability of water supply services. Water quality improvement and new job opportunities are also major benefits.

As for the Republic, the benefits reflect in the overall economic development - the increase in production capacities and economic growth, related to the increase in the population numbers in urban areas, which become more stable in terms of potable water supply. These benefits are up-to-date, long-term and of great importance.

This project will have major positive impacts on the Montenegrin coast region, especially in terms of tourism development. Tourism is the main industry in Montenegro, due to enormous potential and capacity for tourism development primarily in its coastal region.

ITSC LTD. MONTENEGRO - OCTOBER 2006 xiii ENVIRONMENTAL IMPACT ASSESSMENT STUDY ON REGIONAL WATER SUPPLY SYSTEM OF MONTENEGRIN COAST FROM WATER SOURCE BOUE SESTRE

1. INTRODUCTION The water supply problem of Montenegrin Coast has been identified long time ago. The problem exacerbates in the summer months, causing water shortages that significantly reduce the economic capacities of the region and the overall quality of the tourist offer. Five coastal municipalities (Bar, Budva, Kotor, Tivat and Ulcinj) are supplied with water from local sources, while the municipality of Herceg Novi is supplied from hydrotechnical system Plat, by the transportation of water across Croatia. Hydrogeological analyses show that local water sources have almost reached the limits of their capacities, and cannot provide additional quantities of water during the summer season. On the other side, the development of coastal region and expansion of tourism capacities practically depend on the provision of additional water quantities. As a consequent, during the 70's of the last century, a project on the construction of the regional water supply system from the unique water source has been initiated, with the aim of avoiding the risk of potable water shortages in coastal municipalities. Montenegrin Coast Water Supply Master Plan developed by "Energoprojekt" from Belgrade in 1991 has defined water source Karuc, in the hinterland of Montenegrin Coast, in the Skadar Lake basin. It was foreseen that after the system completion each municipality would have one or more connections to the regional system through which it would supply additional water quantities. The Final Design for the entire system was completed, as well as the 3 construction of 38 km long pipeline between Budva and Herceg Novi, with 17000 m of reservoir volume. In addition, hydrotechnical tunnel Sozina, 4,2 km long, was constructed. Afterwards, the activities stopped due to the crisis our country was hit by in the 90's of the previous century. The return of the Republic of Montenegro to the world market, after the end of war in former SFRY, enabled the recovery of its tourism industry. Since the coastal region of Montenegro is its most significant area for tourism development, dealing with the basic infrastructure problems of the area became priority. This has once again made the water shortages during the peak summer season topical. In 2005, the Faculty of Economy (), in cooperation with the company <(ITSC Montenegro>>, carried out a (>. The analysis was made at the request of the Government of the Republic of Montenegro, with the aim of bringing the final decision on water source for the regional water supply system of Montenegrin Coast. The initial assessments and investigations narrowed the selection of water sources to five locations: Karuc, Bisevina-Boije sestre, Vucko Blato, Tusko Polje and Bojana River. The analysis elaborated these alternative solutions, and identified the location of Bisevina - Bolje sestre, in the area of Malo blato, as the most suitable one. The findings have been confirmed in the independent study carried out by Italian consulting companies "ERM" and "SWS" during 2005-2006, supported by the World Bank.

ITSC LTD. MONTENEGRO - OCTOBER 2006 1 ENVIRONMENTAL IMPACT ASSESSMENT STUDY ON REGIONAL WATER SUPPLY SYSTEM OF MONTENEGRIN COAST FROM WATER SOURCE BOLUE SESTRE In the period between August and December 2005, an Environmental impact assessment (EIA) study on the location of water intake for long-term water supply of the Montenegrin Coast has been prepared, with the aim of ecological evaluation of alternative water supply solutions defined in the ,,Cost-benefit analysis" - Karuc, Bisevina-Boije sestre and Tusko polje. The study concludes that, taking into consideration the three examined sources, the location of Tusko polje does not meet the necessary requirements, and therefore is not recommended for water intake. Karuc and Bisevina - Boije sestre meet those requirements and, as such, may be used for the needs of the regional water supply system. The Cost/benefit analyses concluded that there are two most feasible alternatives for the source of the Regional Water Supply System: Karuc and Malo Blato basin. In the location Malo Blato two microlocations have been identified: Boije Sestre spring and Bisevina River. During the 2005 and 2006 investigation activities conducted at the microlocations Karuc, Bisevina River and Bolje sestre spring resulted with the conclusion that engineering requirements, wider area for sanitary protection of the water intake and lower water quality then the other two alternatives eliminate Bisevina River as the microlocation for the water intake.

Additional investigations revealed significant advantages of Bolje sestre over Karuc, and Boije sestre source has been selected for long-term water supply of Montenegrin Coast. The Preliminary Design has been produced for water intake at this source. Karuc as the water intake for the RWSS has been included in the Special Plan of the Republic Montenegro. Inclusion of the Bolje sestre spring in the Spatial Plan of Montenegro is ongoing process. The subject EIA study is made upon the request of the Public Enterprise "Regional Waterworks - Montenegrin Coast" (PEW), and for the needs of the Ministry of environmental protection and physical planning, the and the World Bank, and will be one of the baseline documents in the preparation of project on sustainable tourism development in Montenegro (MSTDP), which shall fund the construction of the regional water supply system. The main objective of the study is to examine the impact that the construction of regional water supply system would have on the environment, as well as to propose measures to be implemented so as to reduce or prevent negative impacts of the project. The study is based on the Preliminary Design for the continental part of the regional water supply system, which PEW submitted to the competent public institutions for approval, and which will be the baseline for the development of the Final Design, as well as for the existing Final design for the coastal part of the system, in the near future. The study includes: * Environmental analysis of Bolje sestre source - as water intake - on the area of Malo blato and the Skadar Lake basin as a whole; * Environmental analysis of the pipeline construction in the area of Skadar Lake basin; * Environmental analysis of the pipeline consturuction in the coastal region of Montenegro.

ITSC LTD. MONTENEGRO - OCTOBER 2006 2 ENVIRONMENTAL IMPACT ASSESSMENT STUDY ON REGIONAL WATER SUPPLY SYSTEM OF MONTENEGRIN COAST FROM WATER SOURCE BOLUE SESTRE 1.1. COMPARATIVE ANALYSIS OF WATER SOURCES BOLJE SESTRE AND KARUC AND SELECTION OF THE SOURCE FOR REGIONAL WATER SUPPLY SYSTEM OF MONTENEGRIN COAST At the time when the "Cost-benefit analysis" and ERM/SWS study were developed, the water source Boije Sestre had not been examined enough, which is why there were certain dilemmas over the watershed and water quality of this source. Therefore, during 2005 and 2006, with the aim of examining the location of Bolje Sestre as a potential water intake of the RWSS, PEW financed a number of investigation programs, which included: physicochemical and microbiological water analyses, geophysical, geoelectric and hydrogeological investigations, measurement of the water flow, tracing (water-dyeing experiment) Moraca River flow, as well as underwater filming. At the same time, water quality analyses at Karuc source were renewed. The most eminent institutions of the Republic of Montenegro and the Republic of carried out the investigations: Centre for Ecotoxicological Research of Montenegro (CETI) - Podgorica, National hydrometeorological Service of Montenegro (RHMZ) - Podgorica, Biological Research Institute "Sinisa Stankovic" - Belgrade, KPI ,,Aquanaut" - Bijela, and ,,Geoprojekt" - Podgorica. The analyses of the aforementioned investigations' results showed that water source Bolje sestre has significant advantages over water source Karuc, which can be perceived from the following table:

Ordinal Source KaruC Water Source Bolje Sestre | IWaterCriterion | Filtration under pressure and UV UV disinfection No. ______disinfection I ,_-,_11 Exceptionally good, therefore the Raw water quality water supply security risk is 1. according to the existing Very good, requires treatment smaller than at Karuc, even if the legislation treatment plant should cease I_ operation Water quantity in the 1,45 m3/s, at the very limit of the > 2 m3/s, the lowest measured 3 2 hydrological minimum long-term needs in the 2nd Phase capacity being 2,34 m /s Quite complicated, since in the water source's sanitary protection zones I Simple, since around the plant . and 11there is a significant number of there are no facilities that might facilities for which more complex have negative impact on the protection measures must be water quality of the source l _ foreseen. Quite complicated, since the water is Construction of the captured at around 20 m depths, and 4. cthetarain the water source area there is fish Simple catchments area hatchery, which additionally l _ complicates the construction. The costs of water treatment plant The costs of water treatment construction plant construction 5 The costs of water intake 6,780,000 e 1,850,000 f and water treatment plants Total costs of the Karuc plant Total costs of the Bolje Sestre construction plant construction l 13,232,000 f 7,985,000 E

ITSC LTD. MONTENEGRO - OCTOBER 2006 3 ENVIRONMENTAL IMPACT ASSESSMENT STUDY ON REGIONAL WATER SUPPLY SYSTEM OF MONTENEGRIN COAST FROM WATER SOURCE BOLJE SESTRE The initial 10 km of the pipeline route Pipeline route in the Skadar at the Lake bottom, which is a The possibility of laying the 6. Pipeareamute in Skadar the pipeline in the dry terrain almost Lake area problem especially in the system along the complete route. operation period

Accordingly, at the meeting on September 15, 2006, the Managing Board of PEW adopted the Decision by which it has chosen Bolje sestre source in Malo blato, in the Skadar Lake basin, as the location of water intake for RWSS of Montenegrin Coast. Besides the "Cost-Benefit Analysis" study, another important document - aimed at implementing the long-term solution for the water supply issue of the Montenegrin Coast - was adopted in the previous year - the Water Supply Master Plan for the Montenegrin Coast and municipality of . At the meeting at which the latter document was reviewed, in July 2006, the Government of Montenegro opted for the concept of the RWSS construction that entails water exploitation from the Skadar lake basin, thus giving the priority to the stable provision of the public water supply services and greater safety of system operation in all conditions.

1.2. WATER DEMAND AND RWSS CAPACITY

The "Cost-Benefit Analysis" estimated long-term water demand, taking into consideration the following criteria: 1. Projected increase in the population numbers in the coastal municipalities; 2. Specific daily consumption per inhabitant; 3. Water supply network coverage; 4. Accommodation capacities in hotels and other tourist facilities; 5. Water demand fluctuations throughout the year; 6. Other consumers; 7. Water losses in local water supply networks. The investigations focused on the southern region of Montenegro, covering the territories of the municipalities of Herceg Novi, Kotor, Budva, Tivat, Bar and Ulcinj. According to the last Census (2003), the number of inhabitants in this area was around 170.000. This number significantly increases in the peak tourist season.

This area is supplied with potable water from local water sources exclusively, with the exception of the municipality of Herceg Novi, which supplies from the hydrotechnical system Plat in the tourist season. Since these sources are in their hydrological minimum during the tourist season - when the water demand is at its highest level - water shortages occur in the entire area, and last up to 20 hours per day.

ITSC LTD. MONTENEGRO - OCTOBER 2006 4 ENVIRONMENTAL IMPACT ASSESSMENT STUDY ON REGIONAL WATER SUPPLY SYSTEM OF MONTENEGRIN COAST FROM WATER SOURCE BOLJE SESTRE The lacking water quantities to be supplied by the future RWSS in the summer periods are given in the following table:

TABLE 1-1 WATER QUANTITIES TO BE SUPPLIED IN THE SUMMER PERIODS

MUNICIPALITY Water Year Quantity 2003 2010 2020 2033

Demand 575 484 525 619 HERCEG NOVI Available quantities 360 510 510 510 Deficit 215 0 15 109

Demand 316 191 189 201

KOTOR Available quantities 30 30 30 30 Deficit 286 161 159 171

Demand 207 171 174 197

TIVAT Available quantities 0 26* 0 0 Deficit 207 145 174 197

Demand 538 476 506 592

BUDVA Available quantities 260 320 320 320 Deficit 278 156 186 272

Demand 553 507 534 607

BAR Available quantities 320 320 320 320 Deficit 233 187 214 287

Demand 424 383 379 423

ULCINJ Available quantities 230 255 255 255 Deficit 194 128 124 168

DEFICIT 1414 777 874 1206

ITSC LTD. MONTENEGRO - OCTOBER 2006 5 ENVIRONMENTAL IMPACT ASSESSMENT STUDY ON REGIONAL WATER SUPPLY SYSTEM OF MONTENEGRIN COAST FROM WATER SOURCE BOLJE SESTRE ERM/SWS study also reveals significant deficiency in water quantities, presented in the following table:

Year 2010 2015 2028 2033 Deficit (I/s) -784 -805 -1259 -1449

Although the Water Supply Master Plan estimates considerably lower long-term water demands, its optimistic scenario of the Montenegrin coast development unfolds in the deficiency in water totalling 889 I/s in 2028. The findings of the aforementioned studies lead to the conclusion that deficiency in water persists in the analyzed period and varies between 35 % in 2010 to app. 45 % u 2033. Therefore, it is envisaged for the RWSS to have maximum capacity of 1500 I/s, where at the source itself water capturing is planned in two phases: * 1000 I/s in the beginning (to meet the demands at least until 2020), * additional 500 I/s in the 2nd phase.

1.3. DESCRIPTION OF THE RWSS RWSS of the Montenegrin Coast consist of the two subsystems: 1. Continental part; 2. Coastal part;

ITSC LTD. MONTENEGRO - OCTOBER 2006 6 ENVIRONMENTAL IMPACT ASSESSMENT STUDY ON REGIONAL WATER SUPPLY SYSTEM OF MONTENEGRIN COAST FROM WATER SOURCE BOLuE SESTRE

Cetinie

i Tivat'-.

Budva .

V~isiriFnTehtlrrto -

11cinj

The overview of the RWSS The continental part stretches from the water intake Boije sestre, through the hydrotechnical tunnel Sozina, to reservoir ,,Djurmani", the main water storage tank in the system. The route partly stretches over the Skadar Lake area. The coastal part is divided into southern and northern branch. The northern branch, 73 km long, stretches from the reservoir ,Djurmani" to the municipalities of Budva, Kotor, Tivat and Herceg Novi. The southern branch, totalling 34 km of length, is envisaged for the water supply of the municipalities of Bar and Ulcinj. Administratively, the RWSS pipeline route passes across the territories of the municipalities of Podgorica, Bar, Ulcinj, Budva, Kotor, Tivat and Herceg Novi. The locations of all the system facilities and pipeline connections are presented in the general scheme of the RWSS facilities, given in the Appendix (Drawing I)

1.3.1. THE CONTINENTAL PART OF THE RWSS According to the solution, the water captured at the source is transported via gravity pipeline to the pumping station water tank located near the water capture site. From pumping station (PS), the water is transported via pressure pipelines to the break pressure chambers (BPC) 1 and 2, near the water intake, positioned in a way that enables gravity water transport to the PS <, located in the bottom of Sozina Mountain, close to the Valley (refer Appendix, Drawing 1-i)

ITSC LTD. MoNrENEGRO - OCTOBER 2006 7 ENVIRONMENTAL IMPACT ASSESSMENT STUDY ON REGIONAL WATER SUPPLY SYSTEM OF MONTENEGRIN COAST FROM WATER SOURCE BOLJE SESTRE The lower Chamber 1 provides 1.000 I/s of water flow, equalling the planned system capacity in the I Phase, while higher Chamber 2provides 1.500 I/s of water flow, i.e. for the needs of the 11Phase.

The continental part of the RWSS consists of the following facilities: 1. Water production facility (WPF) Boije sestre; 2. Gravity pipeline from the WPF Bolje sestre to the PS ,,Reljici"; 3. PS,,Reljici"; 4. Pipeline from the PS ,,Reljici" to the reservoir ,,Djurmani"; 5. Reservoir,,Djurmani". 1.3.1.1. WPF BOLJE SESTRE

The construction of the following facilities in the water source area is planned: * Water intake plant with a dam made of concrete over which excess amounts of water flow into Malo blato, * Pumping stations, * Laboratories for water quality analyses, * Personnel building, * Desinfection of water, * Pressure pipeline from pumping station to break pressure chambers 1 and 2, * Break pressure chambers 1 and 2, * Access road to WPF, * Power distribution sub-station for power supply of the WPF. According to the National Law even the waters of the highest quality have to be disinfected but the Law does not command the type of disinfection. The water quality on the source is extremely good but considering the safety that have to be reached for the next 27 km of the pipeline, (until the reservoir Djurmani) it is necessary to install disinfection system at the source. UV disinfection is recommended because there are no connections during the pipeline route of 27 km so it does not require the residual disinfection medium in water because, the secondary contamination is unlikely. The concept is to keep the quality of water on the same level (class Al) along the whole RWSS and to avoid use of chemicals. 1.3.1.2. GRAVITY PIPELINE FROM WPF BOLJE SESTRE TO PS aRELJICh) In some sections, the gravity pipeline from the BPC 1 and 2 to the PS "Reljici" is designed as a parallel pipeline of DN800 and DN700, while in other sections, single pipeline is designed as pipeline of DN1000, only where due to the lack of space the installation of two pipelines was not possible.

ITSC LTD. MONTENEGRO - OCTOBER 2006 8 ENVIRONMENTAL IMPACT ASSESSMENT STUDY ON REGIONAL WATER SUPPLY SYSTEM OF MONTENEGRIN COAST FROM WATER SOURCE BOLJE SESTRE Gravity pipeline is around 20,2 km long. The length of the pipeline section with the two parallel pipes is app. 15,3 km, while the section with the DN1000 pipes is around 4,9 km long. The pipeline mainly runs along the local roads and partly down the bottom of Malog blata, i.e. Skadar Lake. The total designed length of the pipeline at the bottom of Malo Blato is around 1,5 km. The pipelines are made of polyester (GRP), SN5000, and nominal pressure 10 bar. This pipe material is suitable in the view of both installation and good hydraulic characteristics. In addition, it also guarantees the conservation of organoleptic features of potable water In the section of the pipeline route at the bottom of Skadar Lake, i.e. Malo blato, the pipeline will be anchored with blocks made of concrete that will prevent its surfacing and fix its position. In the dry terrain, the pipeline will be installed at minimum 80 cm above the pipe's apex. In the sections at the bottom of the Lake, the grade line shall follow the natural bottom of the Lake.

1.3.1.3. PUMPING STATION (RELJICIh AND PIPELINE FROM PS TO RESERVOIR ,,DJURMANI" PS ,,Reljici" pumps the water through the hydrotechnical tunnel ,,Sozina" and then to the reservoir ,,Djurmani". It is located in the bottom of Sozina Mountain, close to the Skadar Lake National Park. The pipeline from the PS ,,Reljici" to the reservoir "Djurmani" is 6.000 m long. The initial 1000 m of the route, the pipeline is laid in the hilly terrain covered with forest and shrubs. After this section, a 4200 m long pipeline passes through already constructed hydrotechnical tunnel ,,Sozina". Through the tunnel single polyester pipeline of DN 1100 mm will be installed at fixed and sliding props in the tunnel. The pipeline contains a water chamber, aimed at maintaining the pressure in the system and protecting the pipeline in case of disconnection of the PS "Reljici". At around 800m from the tunnel exit, the pipeline ends at the entrance of the reservoir ,,Djurmani".

1.3.1.4. RESERVOIR <(DJURMANI)) Reservoir ((Djurmani)), already built, volume capacity of 10.000 m3, represents the main water storage tank for both branches of the RWSS southern part, redirecting water depending on consumer demand. In terms of altitude, the facility is defined by heights of the overflow and bottom 196/191m.a.s.l. The reservoir is located at around 800 m from the exit of the hydrotechnical tunnel Sozina, and is comprised of three facilities: two reservoir chambers for water storage with the capacity of 5.000 m3 each, with valve chambers for storing hydromechanical and electric equipment, and chlorination station with an annexe - made of reinforced concrete - for storage/neutralization of chlorine. All construction works at the reservoir Durmani have been performed. The reservoir is planned to be used with existing capacity of 10 000 m3 . Activities will be related to the reconstruction and providing of the waterproofing.

ITSC LTD. MONTENEGRO - OCTOBER 2006 9 ENVIRONMENTAL IMPACT ASSESSMENT STUDY ON REGIONAL WATER SUPPLY SYSTEM OF MONTENEGRIN COAST FROM WATER SOURCE BOLJE SESTRE 1.3.2. THE COASTAL PART OF THE RWSS

1.3.2.1. NORTHERN BRANCH

The northern branch of the RWSS coastal part (refer Appendix, Drawing 1-2) will supply water to the consumers of the municipalities of Budva, Kotor, Tivat and Herceg Novi. It consists of the following subsystems: * Gravity pipeline from reservoir ,,Djurmani" to PS ,,Budva" with BPC ,,Perazica Do" and BPC ,,", * PS,,Budva", * Pressure pipeline from PS ,,Budva" to BPC ,,Prijevor", * BPC ,,Prijevor", * Gravity pipeline from the BPC ,,Prijevor' to the the connection point of the local water supply system Herceg Novi with BPC ,,Radanovici" and BPC ,,Tivat".

The pipeline and facilities in the section between PS ,,Budva" and BPC ,,Tivat", as well as the infrastructure on the territory of the municipality of Herceg Novi, have already been built, while in the section between reservoir ,,Djurmani" to PS ,,Budva" break pressure chambers have been built.

The planned pipeline route in the section reservoir ,,Djurmani" - PS ,,Budva", app. 27 km long, passes mainly along the Adriatic highway and local roads in the area, with the exception of the sections over the saddle Kufin (at administrative border between the territories of the municiplaities of Bar and Budva) alongside and Becici beaches.

The designed pipeline has a number of connection points for local water supply systems. Each connection is separated and equipped with suitable valve chamber and measurement and regulation blocks.

1.3.2.2. THE SOUTHERN BRANCH

The southern branch of the RWSS (refer Appendix, Drawing 1-3) will supply water to consumers in the municiplaities of Bar and Ulcinj. It consists of the following subsystems and facilities:

* Gravity pipeline from reservoir ,,Djurmani" to PS ,,Belvederf with BPC ,,Cafe", * PS,,Belveder',

* Pressure pipeline from PS ,,Belvederf to BPC ,,", * BPC,,Bratica",

* Gravity pipeline from BPC ,,Bratica" to the existing reservoir ,,Bijela Gora", a part of the local water supply system of Ulcinj, that is to the connection point of the future tourist complex at Velika Plaza.

ITSC LTD. MONTENEGRO - OCTOBER 2006 10 ENVIRONMENTAL IMPACT ASSESSMENT STUDY ON REGIONAL WATER SUPPLY SYSTEM OF MONTENEGRIN COAST FROM WATER SOURCE BOLUE SESTRE In the section bewteen reservoir,,Djurmani" and BPC ,,Cafe", the pipeline route mainly passes through the populated settlements (the wider area of the city of Bar), while the rest of the route passes alongside of the highway Bar-Ulcinj, with the exception of the section passing along Utjeha beach. The facilities of the RWSS southern branch have not been built yet. The designed pipeline has a number of connection points for local water supply systems. Each connection is separated and equipped with suitable valve chamber and measurement and regulation blocks.

ITSC LTD. MONTENEGRO - OCTOBER 2006 11 ENVIRONMENTAL IMPACT ASSESSMENT STUDY ON REGIONAL WATER SUPPLY SYSTEM OF MONTENEGRIN COAST FROM WATER SOURCE BOLJE SESTRE

2. LEGAL AND ADMINISTRATIVE FRAMEWORK

This chapter provides a brief overview of laws and regulations relevant to this project. The laws listed below are the most important laws of the Republic of Montenegro related to this project.

In addition, since the study is developed for the needs of the World Bank also, it meets the Bank's requirements, detailed in OP 4.01 from January 1999.

2.1. ENVIRONMENTAL LAW

The Official Gazette of the Republic of Montenegro No.12/96 According to the law, the objectives of the environmental protection are as follows: * Preservation and protection of human health, integrity, biodiversity and the quality of ecosystem, animal and plant species genetic fund, soil fertility, natural sites and physical resources, as well as cultural heritage and anthropogenic resources; * Provision of the framework for limited, reasonable and sustainable management of living and nonliving things, preservation of ecological stability of nature, quantity and quality of natural resources, as well as prevention of environmental threats and risks. The objectives of the environmental protection are reached by the following activities: * Awareness raising on the necessity of the environmental preservation and protection, and introduction of environmental education courses into educational curricula; * Anticipation, monitoring, prevention, and elimination of environmentally harmful effects; * Protection of endangered areas, and rehabilitation of significantly environmentally damaged areas, aimed at quality improvement of these areas; * Maintenance of a balanced relationship between economic development and environmental protection; * Encourage the use of environmentally safe products and environmental technologies; * Prevention of the environmentally damaging construction and reconstruction of facilities, changes in technology, exploitation of natural resources, etc.; * Encourage environmental scientific and research activities, as well as institutional organizing in this area, at all levels and in all segments; * Public communication on the state of the environment. Basic principles of the environmental protection are as follows: * Preservation of natural values;

ITSC LTD. MONTENEGRO - OCTOBER 2006 12 ENVIRONMENTAL IMPACT ASSESSMENT STUDY ON REGIONAL WATER SUPPLY SYSTEM OF MONTENEGRIN COAST FROM WATER SOURCE BOLUE SESTRE * The protection of flora and fauna so as to ensure the survival of population of the autochthonal species of the Republic under natural conditions; * If certain projects represent unavoidable environmental risk and threat, the prevention and mitigation measures shall be implemented; * Environmental impact assessment; * If the existing technologies may be replaced with up-to-date, less environmentally harmful technologies, the latter shall be applied, even if more expensive; * The use of chemicals degrading into environmentally safe substances shall have advantage over the use of other chemicals; * Reusable, recyclable or biologically degradable substances shall be used, even if more expensive, and provided that their costs are proportional to the value of the resources to be protected; * Any pollutant, i.e. its legal representative, shall be responsible for the environmental damage or pollution it caused; * Any user of natural resources shall bear the objective costs of the usage, as well as cover the costs reclamation; * Anyone performing polluting or potentially polluting shall pay insurance against liability for potential pollution; * Data transparency; * The Republic shall furnish its citizens with timely and complete information on the state of the environment and pollutions potentially dangerous for human life and health, and flora and fauna.

2.1.1. ENVIRONMENTAL PROTECTION MEASURES The following activities shall be prohibited: * Any discharge of polluting substances into the environment in the amount exceeding the stipulated limitations, as well as performance of other activities that may cause environmental quality impairment; * Any application or use of technologies, products, intermediate products or raw materials prohibited in the export country or the country these are produced in; * Disrespect of the stipulated usage of devices or production plants, as well as the stipulated production process; * Implementation of projects in the protected areas that impair nature balance, biodiversity, hydrographical, geomorphologic, geological, cultural and landscape values; * Any processing, storage or disposal of radioactive waste, with the exception of one produced in medicine, to which special regulations are applied; * Disposal of any kind of waste out of the area specially designated for that purpose.

ITSC LTD. MONTENEGRO - OCTOBER 2006 13 ENVIRONMENTAL IMPACT ASSESSMENT STUDY ON REGIONAL WATER SUPPLY SYSTEM OF MONTENEGRIN COAST FROM WATER SOURCE BOLJE SESTRE

Restrictions shall apply to: * The import of any waste material unless it is used as secondary raw material, with the prior approval from the Ministry in charge of environmental protection; * Disposal of hazardous waste out of the area designated for that purpose, with prior approval from the Ministry in charge of environmental protection; * Killing and hunting of protected animal species, removal, damaging or devastation of protected plant species, as well as collecting or devastating their development forms, unless the Ministry previously granted the approval; * Export of protected movable natural resources, unless the Ministry previously granted the approval; * Collecting, consumption or trade in certain unprotected plant or animal species and their development forms - with the exception of hunting species - unless the Ministry previously granted the approval. The Environmental Protection Programme of the Republic is the long-term programme aimed at establishing of the ecological state of Montenegro by fostering its economic and social development in accordance with environmental protection principles and objectives.

The Government of the Republic of Montenegro is obliged to prescribe standards of environmental quality, emission of polluting substances and production processes. Each development project/activity either planned or carried out by legal or physical entities, either local or foreign, which might pose threat to the environment, shall have prepared Environmental Impact Assessment study. The study shall identify both direct and indirect impacts on environment, population, flora, fauna, soil, water and sea, air, climate, landscape, cultural and historical heritage, economic and social environment.

Special regulations shall prescribe incentives for all legal entities that collect secondary materials or of which the production is based on the secondary materials (recycling), as well as for those who, in other way, remove secondary materials or waste from the environment and contribute to its improvement.

The Republic shall provide constant monitoring of the state of environment, as well as fulfilment of the commitments taken on by international treaties and conventions. The Government shall prepare the Environmental Protection Programme. The Ministry of environmental protection shall be in charge of supervising the implementation of this law. The environmental supervision team in compliance with law shall perform the supervision activities.

ITSC LTD. MONTENEGRO - OCTOBER 2006 14 ENVIRONMENTAL IMPACT ASSESSMENT STUDY ON REGIONAL WATER SUPPLY SYSTEM OF MONTENEGRIN COAST FROM WATER SOURCE BOUE SESTRE 2.2. INSTRUCTIONS FOR THE CONTENTS OF THE EIA STUDY The Official Gazette of the Republic of Montenegro No.21/97 1. Description of the construction location of the facility: * Detailed description of the environment surrounding the future facility. Compliance with urban and physical planning documentation. Official maps presenting the overview of the location for future facility. 2. Analysis of alternative solutions, in technical and technological terms: * Description of the analysed alternative solutions, their advantages and disadvantages, relevant arguments for the selected solution. 3. Description of the facility and technological processes: * Description of basic parameters of the facility with infrastructure, the organization of activities, the organization of transportation, number and structure of the employees, etc. * Size of the location, construction technology, organization of the internal and external transportation, equipment and mechanization to be used, construction plan dynamics in phases. * Detailed description of the technological process, the process line, the resources to be used, the final products, the type of waste to be produced as well as its disposal, etc. 4. Environmental analysis of the location of the future facility: * Information and data on current state of the environment of the future facility. Special attention given to the environmental impacts of the facility. * Necessary information and data: population and its density, flora and fauna, soil (quality, geology, geomorphological features), water (sources, quality, discharged water impacts, etc), air (climate and qualitative features), landscape and topography. 5. Assessed and potential environmental impacts of the facility: * Impact on the local population and the existing facilities (changes in the population number and structure, visible impacts on the environment, waste material impacts, vibrating, noise and heat impacts, impact on population health, impact on local traffic, houses, buildings, monuments, archaeological sites) * Impact on flora and fauna (loss of/damage to geology, palaeontology, physical and geographical features) * Impact on soil (erosion, landslides, etc., waste material impact on soil and comparison with regulations and standards, impacts on land use and mineral resources, quality and size of the lost agricultural land, impact on agriculture, waste disposal) * Impact on water (waste material impact on surface/ground water and comparison with regulations and standards) * Impact on air and climate (concentration of waste materials and comparison with regulations and standards, impact on climate) * Other influences of the future facility

ITSC LTD. MONTENEGRO - OCTOBER 2006 15 ENVIRONMENTAL IMPACT ASSESSMENT STUDY ON REGIONAL WATER SUPPLY SYSTEM OF MONTENEGRIN COAST FROM WATER SOURCE BOLUE SESTRE 6. Recommended environmental protection measures in relation to the future facility. Measures to be implemented in case of accidents. 7. Comments on potential absence of environmental issues (scientific, technological, and legal) or impossibility to acquire information. 8. Recommendations for environmental monitoring 9. Overview of facts and conclusions, easily perceivable to the public 10. Total costs (investment).

2.3. LAW ON NATIONAL PARKS

The Official Gazette of the Republic of Montenegro, No. 47/91 The Law on National parks of the Republic of Montenegro defines borders of national park, protection and development measures, exploitation of resources in national park and national park management. There are four National parks in the Republic of Montenegro: * , * Durmitor, * Lovcen, and * Skadar Lake.

The Government has developed the Spatial Plan for the National Park. The Spatial Plan defines present state of the Park, development directions, borders, exploitation regime, environmental measures and requirements for the construction in the Park. The protection and development programme of the National park shall be developed so as to comply with the spatial plan. Public Enterprise "National Park" shall be in charge of preparation and implementation of this programme.

The performance of following activities is prohibited within the borders of National Park: * Cultivation of non-endemic plant species, with the exception of those aimed at prevention of erosion and landslides, * Breeding of non-endemic wild animals, * Deforestation, * The construction of nuclear facilities, * Waste disposal, * Other environmentally harmful and polluting activities. National Parks can be used for economic, social, scientific, research, sport and other activities, unless otherwise stipulated by this law. Environmental and protection of flora and fauna, as well as the protection of other Park's resources must be provided during the performance of these activities.

ITSC LTD. MONTENEGRO - OCTOBER 2006 16 ENVIRONMENTAL IMPACT ASSESSMENT STUDY ON REGIONAL WATER SUPPLY SYSTEM OF MONTENEGRIN COAST FROM WATER SOURCE BOUE SESTRE The owners of the forests within the Park's borders must implement forest protection measures in accordance with the development and protection programme of the Park. The land within the borders of the Park may be used for the construction of tourist and health facilities, and infrastructure, with the prior approval of PE National Park. Privately owned land within the borders of the Park may be expropriated from the owner if the Government decides that expropriation is in the public interest.

2.4. REGULATIONS ON ENVIRONMENT IMPACT ASSESSMENT The Official Gazette of the Republic Of Montenegro No.14/97 Regulation on environmental impact assessment (No. 14/97) defines the study subjects, the procedure preceding the assessment, assessment reports' criteria, public participation, and procedures for evaluation and of the EIA. The EIA study bases on the Environmental Law, and defines the EIA methodology, types of facilities for the construction of which the EIA study is obligatory, the contents of the study, criteria for organizations/institutions preparing the study, and public consultation. The study should be part of technical documentation. The study must comprise the following: * Description of the construction location of the future facility, * Analysis of alternative solutions, in technical and technological terms, * Description of the facility and technological processes, * Environmental analysis of the location of the future facility, * Assessed and potential environmental impacts of the facility, * Recommended environmental protection measures in relation to the future facility. Measures to be implemented in case of accidents, * Comments on potential absence of environmental issues (scientific, technological and legal) or impossibility to acquire information. * Recommendations for environmental monitoring, * Overview of facts and conclusions, easily perceivable to the public, * Total costs (investment).

The EIA procedure should be repeated in case changes in the technical documentation take place during the implementation of the project. Only authorized companies are entitled to prepare the documentation for EIA study. The Ministry of environmental protection can initiate public consultation process on facilities of which the construction could have environmental impact.

2.5. LAW ON SKADAR LAKE The Official Gazette of the Republic of Montenegro, No. 33/83, 31/88

ITSC LTD. MONTENEGRO - OCTOBER 2006 17 ENVIRONMENTAL IMPACT ASSESSMENT STUDY ON REGIONAL WATER SUPPLY SYSTEM OF MONTENEGRIN COAST FROM WATER SOURCE BoLJE SESTRE This law regulates Skadar Lake management, and exploitation, protection and development of its natural resources. Skadar Lake is the most important National Park in Montenegro due to its natural resources, beauty and social values. Self-governing interest association, based in Podgorica, shall be in charge of the Skadar Lake National Park management. The Association shall have the status of legal entity. The National Park resources shall be under special protection, and considered a unique area: * If the land or other public property within the National Park area cannot be exploited or its exploitation is restricted, its beneficiary is entitled to compensation. The property may be expropriated, if the expropriation is considered to be in the public interest. * Protection and development of the National Park entails rationality, flora and fauna conservation, as well as conservation and revitalization monuments. * Economic, sport, cultural and other activities may be performed in the National Park area, only if not harmful to the National Park resources. * Exploitation of the National Park resources shall provide for the water and coast, forests, land, animals, air and other resources. * For construction and reconstructions in National Park area investors must obtain consent from the Association that the activities will not lead to the pollution of the National Park resources. Association is defining terms and conditions for exploiting National Park resources. Association and investor must make an agreement on the exploitation of National Park resources. * The beneficiary of National Park resources shall not delegate its rights to others. * The Association shall define the amount of compensation for exploitation. * The owner of the facilities in the National Park area shall be entitled to compensation, for providing services to the third person using the facility.

2.6. REGULATION ON THE PROTECTION OF RARE, EXCEPTIONAL, ENDANGERED AND ENDEMIC SPECIES

The Official Gazette of the Republic of Montenegro No.36/82 This law provides the lists of rare, exceptional, endangered and endemic species. The main provisions of this law are as follows: * Removal, damaging and disturbance of rare, exceptional, endangered and endemic species, in any way, is prohibited, as well as trade in them and their export to another countries. * Hounding, hunting and killing of any rare, exceptional, endangered or endemic species or their development forms are prohibited. * In particular cases, public institutions in charge of environmental protection may issue a permission to perform scientific and reasearch activities on the species, or hunting.

ITSC LTD. MONTENEGRO - OCTOBER 2006 18 ENVIRONMENTAL IMPACT ASSESSMENT STUDY ON REGIONAL WATER SUPPLY SYSTEM OF MONTENEGRIN COAST FROM WATER SOURCE BOUE SESTRE 2.7. LAW ON PROTECTION OF CULTURAL MONUMENTS The Official Gazette of the Republic of Montenegro, No. 27/94 This law regulates the protection and use of the cultural monuments, as well as the rights and responsabilities of legal and physical entities in relation to the protection. The basic provisions of this law are as follows:

* The Republic Institute for the protection of cultural monuments shall be in charge of activities and policies related to the protection of cultural monuments. * Devastation of cultural monuments shall be prohibited, as well as changing their appearance or use without prior approval from the Institute * Implementation of technical protection measures and other works on the monuments or in their protected surroundings shall be possible only under conditions and procedures stipulated by this law. * Any person who finds or revealsobjects considered to be a cultural monument shall inform the Republic Institute on its findings and cease the work.

2.8. REGULATION ON WATER CLASSIFICATION AND CATEGORIZATION Official Gazette of the Republic of Montenegro No.15/97 This regulation provides classification and categorization of surface and ground waters on land, and coastal seawaters in the Republic of Montenegro. Potable waters are classified as follows: * Al Class - water that can be used for consumption in natural state or after disinfection * A2 Class - water that can be used for consumption after the following treatments: pre-chlorination, coagulation, flocculation, filtration and disinfection (final chlorination) * A3 Class - water that can be used for consumption after the intensive treatment including: physical, chemical and biological treatment with prolonged disinfection and chlorination, i.e. coagulation, flocculation, filtration, absorption on active coal and ozone or chlorine disinfection. Waters that can be used in fish and shellfish farming are divided into following classes, according to the quality: "S", "S" and "C". Water for bathing is divided into I Class and 11Class. Water classification is made according to the parameters and limitation values, presented in the Table 2-1, along with the other parameters of the existing national and European legislation.

ITSC LTD. MONTENEGRO - OCTOBER 2006 19 ENVIRONMENTAL IMPACT ASSESSMENT STUDY ON REGIONAL WATER SUPPLY SYSTEM OF MONTENEGRIN COAST FROM WATER SOURCE BOLJE SESTRE Immediate Skadar Lake tributaries, with the exception of Moraca River, as well as all the sources, except Crnojevica River and Glava Zete, belong to Al, S, I Class. Skadar Lake belongs to the A2, C,11 Class.

2.9. LAW ON NATURE PROTECTION

The Official Gazette of the Republic of Montenegro No. 27/94 This law standardize nature as a whole, in particular the areas of exceptional natural values, natural heritages and rarities unique for the life and work of working population, citizens and wider community, in terms of their health, cultural, educational, scientific, historical, aesthetic and tourist values. The main principles of this law are as follows: * Exploitation of natural resources due to economic or other activities that can change geomorphologic, biological and other features of the natural resources and facilities must comply with this law. * Organizations developing environmental exploitation plans and programmes, as well as technical documentation for facility construction, which might be environmentally harmful, shall prepare environmental protection documentation. Organizations are entitled to give their opinion and suggestions that shall be considered during the preparation of construction plans and programmes. Investors shall implement appropriate environmental protection measures. * Protected facilities are areas of exceptional natural value, natural attractions and natural rarities. Use and protection of these facilities are stipulated by the local self-government. * The law for protection, restoration and conservation or for collective interest needs can limit exploitation and proprietary right of protected object. Exploitation right can be, by the law, delegated to the third person and proprietary right can be expropriated if it is in general interest. * Protected objects, by this law, are natural parks and landscapes, reservations, natural monuments, memorial natural monuments and some vegetation and animal species. * Protected object-owner is obligated to protect, maintain, and take all regulative technical-protective measures for its maintenance and to inform authorized institutes due to all changes that could violate its characteristics. If protected object-owner doesn't take all technical-protective measures authorized institute will remind him and give him deadline for doing that with warning that in case that he doesn't take that measures it will be carried out on his expense. If protected object owner is negligent so there is possibility for its damaging and destroying, and after warning he still don't provide its proper maintenance authorized municipal institute can make a decree of giving object managing to trustee determined for that case.

2.10. REGULATION ON HYGIENIC QUALITY OF POTABLE WATER The Official Gazette of the Federal Republic of Yugoslavia, No. 42/98

ITSC LTD. MONTENEGRO - OCTOBER 2006 20 ENVIRONMENTAL IMPACr ASSESSMENT STUDY ON REGIONAL WATER SUPPLY SYSTEM OF MONTENEGRIN COAST FROM WATER SOURCE BOUE SESTRE This regulation stipulates hygienic quality of potable water used for public water supply or food production. The water complying with the standards stipulated by this regulation in terms of microbiological, physicochemical and radiological composition is hygienically suitable potable water quality. Standards, or maximum permissible concentration (MPC) of parameters are given in the table along with the standards set forth in the EU Directive 98/83/EC and standards of World Health Organization, defined in Geneva in 1993. (Table 2-1).

2.11. EUROPEAN WATER LEGISLATION The existing national water legislation comprising of: Regulation on water classification and categorization (Official Gazette of the Republic of Montenegro No.15/97), Regulation on wastewater quality and discharge into public sewage network (Official Gazette of the Republic of Montenegro No.10/97), and Regulation on hygienic quality of potable water (The Official Gazette of the Federal Republic of Yugoslavia, No. 42/98) mainly complies with relevant MPC defined by the related EU Directives. The Directive relating to the quality of surface water to be used for potable water production is 75/440/EEC. The aim of the Directive is to provide the appropriate quality of these waters so as to use them as sources of potable water. The EU Directive 98/83/EC, defining quality of water for human consumption, is adopted in 1998, and complies with the existing national Regulation on hygienic validity of potable water in Montenegro. The table below provides the MPC values according to the existing national and European legislation. Table 2-1 the Parameters and MPC for various water classes Parameters Unit O.G.ROM, No. 14/96 EU Directive O.G. EU WHO 75/440/EEC FRY, Directive Al A2 A3 Al A2 A3 No. 98/83/EC ______4 2/9 8 Turbidity NTU 1 Conductivity IS/cm 400 600 1000 1000 1000 1000 1000 2500 Suspended Solids mg/l 10 20 50 25 pH 6.8-8.5 6.5-9,0 5.5-9 6,5-8,5 5,5-9 5,5-9 6.8-8.5 6.5-9.5 Fluoride mg/l 1 1.5 1.7 0,7-1,5 0,7-1,7 0,7-1,7 1.2 1.5 1.5 Nitrate mg/l 20 25 50 25 50 50 50 50 50 Nitrite mg/I 0.03 0.1 0.2 0.03 0.5 3 Fe mg/l 0.1 0.3 1 0,1-0,3 1 1 0.3 0.2 0.3 Manganese mg/l 0.05 0.1 1 0,05 0,1 1 0.05 0.05 0.5 Copper mg/l 0.02 0.05 1 0,02 0,05 1 2 2 2 Zinc mg/I 0.3 1 5 0,5 1 1 3 3 Boron mg/l 1 1 1 1 1 1 0.03 0.001 0.3 Nickel mg/l 0.02 0.05 0.1 0.02 0.02 0.02 Arsenic mg/l 0.01 0.05 0.05 0,01 0,05 0,05 0.01 0.01 0.01 Cadmium mg/l 0.001 0.005 0.005 0.001 0.005 0.005 0.003 0.005 0.003

ITSC LTD. MONTENEGRO - OCTOBER 2006 21 ENVIRONMENTAL IMPACT ASSESSMENT STUDY ON REGIONAL WATER SUPPLY SYSTEM OF MONTENEGRIN COAST FROM WATER SOURCE BOLUE SESTRE Chromium mg/l 0.05 0.05 0.05 0,05 0,05 0,05 0.05 0.05 0.05 Aluminium mg/I - 0.2 0.2 0.2 Lead mg/i 0.02 0.05 0.05 0,05 0,05 0,05 0.01 0.01 0.01 Selenium mg/l 0.01 0.01 0.01 0,01 0,01 0,01 0.01 0.01 0.01 Mercury mgi/ 0.0005 0.0005 0.001 0.0005 0.0005 0,0005 0.001 0.001 0.001 Barum mg/l 0.1 0.7 1 0,1 1 1 0.7 0.3 Cyanides mg/l 0.005 0.005 0.005 0.05 0.05 0.07 Sulphate mg/l 50 150 250 150/ 150/ 150/ 250 250 250 _____250 250 250 Chlorde mg/1 20 40 200 200 200 200 200 250 250 Detergents mg/l 0.1 0.2 0.5 0.1 Phenols mg/l 0.001 0.005 0.01 0,001 0,005 0,1 0.001 PAH mg/l 0.0002 0.0002 0.001 0.0002 0.0002 0.001 0.0002 0.0001 0.0007 Pesticide mg/l 0.0005 0.001 0.0025 0.01-05 0.0001-5 HPK mg/l 8 10 30 02

Dissolved Oxygen mg/l 50 5 Saturation 02 % >80 >70 >50 >70 >50 >30 BPK5 02 <3 <5 <7 <3 <5 <7 Ammonium mg/l 0.05 0.5 1 0,05 0,66 2 0.1 0.5 1.5 Polychlornated mg/l 0.0005 0.001 0.0025 0.0005 biphenyls (PCB) PCB congeners 0.001 0.0001 0.0001 0.0005 Benzo(a)pyrene __/l 0.01 0.01 0.7 Total oils and 0.1 minerals -__ Mineral oils mg/I 0 <0.3 0.01 Calcium mg/I 200 Potassium mg/l 12 Magnesium mg/I 50 Sodium mg/I _ 150 200 200 Total coli forms u 100 50 5000 50000 50 m l 5000 50000 100 ______Faecal coli forms u 100 20 2000 20000 20 2000 20000 0 0 mlO Faecal streptococci u 100 20 1000 10000 20 1000 10000 0 ITSCml LTD. I -I OCTOBE 2006 2

ITSC LTD. MONTENEGRO - OCTOBER 2006 22 ENVIRONMENTAL IMPACT ASSESSMENT STUDY ON REGIONAL WATER SUPPLY SYSTEM OF MONTENEGRIN COAST FROM WATER SOURCE BOLJE SESTRE

3. BASELINE DATA Considering the concept of the regional water supply system of the coastal region of Montenegro, the project may be divided into: inland part - encompassing the Skadar Lake Basin, and Montenegrin Coast.

3.1. SKADAR LAKE BASIN

3.1.1. SKADAR Lake is located in karsts terrain of the southern part of . It is the largest lake in the . It is situated in the -Skadar Valley, in the far southeast part of Montenegro. It is a border lake and its smaller part is located in the territory of . It is encircled with the in the west, and with the slopes of Lovcen, Sutorman, and Tarabos Mountains in the southwest. In the east and northeast, in Albania, it adjoins Skadar Lowland.

Surface area of the Lake fluctuates from 254 2, at water level of 4.71 meters above the sea level (herein after: m.a.s.l.), to 506 kM2, at water level of 9.8 m.a.s.l. At maximum water level, maximum depth of the Lake is 12 m, while at its minimum water level it is 8 m deep. These facts show significant changes in the water volume of the lake and its water level that varies from 5 to 10 m.a.s.l. Skadar Lake Basin is a part of the Watershed in the territory of Montenegro. The basin covers the area of around 5490 kM2, out of which app. 4460 km2 (81,2%) belongs to the territory of Montenegro, while around 1030 km2 (18%) belongs to the territory of Albania. The Montenegrin part of the Skadar Lake Basin belongs to the southeast and southern parts of the central region of Montenegro. In the south and southwest it borders Montenegrin Coast watershed, in the west the River Tribisnjica Basin, in the northwest and north the River Basin and in the northeast it borders River Tara and River Basins. The mountains in the watershed area - Njegos, Lovcen, Rumija, etc - represent the most distinctive karsts phenomenon in the world and are composed of typical limestone and dolomites. Carbonates make 80% of the basin. Basin area is rich in karst fields, inlets, sinkholes, caves and various microforms of caves. Skadar Lake Basin itself is the remainder of a sea bay that existed at the end of Miocene and in the beginning of Pliocene. As a result of geotectonic movements, fresh water activities and Quaternary rocks sedimentation, the connection with the sea was disrupted, and afterwards the fresh water lake was created. Its lowest parts are below the sea level. At the water level of 5 m.a.s.l., the maximum lake depth is 8 m. The relief of the lake trough is disturbed by deep morphological depressions, funnel shaped cavities, deep up to 60 m. The cavities are numerous and linked to almost every ground source.

ITSC LTD. MONTENEGRO - OCTOBER 2006 23 ENVIRONMENTAL IMPACT ASSESSMENT STUDY ON REGIONAL WATER SUPPLY SYSTEM OF MONTENEGRIN COAST FROM WATER SOURCE BOUE SESTRE The shoreline length of the lake is 207 km, out of which 149,5 km belongs to the territory of Montenegro. The shore is rather jagged. Karst hummocks in the lake trough are known as islands Starcevo, Beska, Moracnik, Gradac, Tophala, Gorica, Gljat, etc. The most notable bays are located near the springs of Stitar, Bugovista, Gljac, Muric, Radusko. The largest bay is Hotski bay in the northern part of the lake, which is equally divided in two by the Albanian border. Malo blato is a separate water basin out of which water continually flows into Skadar Lake, and at high water level it looks like the lake's gulf. Malo blato drains into Bisevina River, which after meeting Segrtnica River creates Karatuna River. Karatuna receives the flows of Bazagurska Matica under peninsula and then flows into River Crnojevica. The most important Skadar Lake tributaries are Moraca, Karatuna, Bazagurska matica, Crnojevica, Orahovstica and Crmnicka Rivers. The lake receives significant amounts of flow from smaller rivers that drain into Zeta Plain. Numerous underwater sources, so called "vrulje", also flow into Skadar Lake. In the Hotski Bay area the most significant underwater sources are Ploca, Vitoja and Funija. There is a large number of underwater sources and springs in Malo blato area, too, and the most important are Bolje sestre, Biotsko oko, Brodic, Crno oko, Donja krakala, Bobovik, etc. Malo blato as a part of the Skadar Lake has typical characteristics regarding biodiversity, geomorphology, hydrogeology, thermal regime, etc as the Skadar Lake as a whole. In this area, there are no registered rare or endangered species. In that sense this Study analyzed the Skadar Lake as the sensitive wider environment and the Bolje sestre spring as the microlocation.

Malo blato is a separate water basin, but also part of the Skadar Lake and belong to the protected area of the Skadar Lake National Park. It is located in the karst depression, in the northern part of Skadar Lake Basin, with which it is hydrologically connected by Bisevina River, its outflow. Sinjacka River, karst sources that drain through numerous springs along eastern, northern and western shores, as well as precipitation provide inflow to Malo blato. At high water levels, most of the shore sources are submerged under the lake water. The only outflow of Malo blato is Bisevina River, located in its southwest shore.

In the Karuc area the most significant ground sources are Volac, Karuc, Djurovo oko, Kaludjerovo oko. Along the southwest shore surrounding mountains drain into copious ground sources, such as: Modra oka, Radusko oko, Krnjicko oko, etc. The abundance of precipitation also contributes to the water richness of this area. Average annual precipitation is over 2330 mm. River Moraca exerts the greatest influence on water volume of Skadar Lake. It provides 62% of total inflow. Skadar Lake outflows by Bojana River with a mean annual flow of 322 m3/s.

ITSC LTD. MONTENEGRO - OCTOBER 2006 24 ENVIRONMENTAL IMPACT ASSESSMENT STUDY ON REGIONAL WATER SUPPLY SYSTEM OF MONTENEGRIN COAST FROM WATER SOURCE BOLUE SESTRE

3.1.2. BOLJE SESTRE - AREA DESCRIPTION The three-dimensional (3D) overview of the position of water source Bolje sestre at the digital relief model of its wider surroundings is presented at the picture below.

Water source Bolje sestre drains out of the stratified dolomite limestone from Cretaceous in the northeast shore of Malo,~ blato, below the western sides of Kolozub-w, Mountain (220 m above sea level) inclining northeast under angle 280. In the dry

period of the year, the. waters- of the= Bolje- Sestres flow~ out in a wide stretch at the level, and in a more significant part below the water table level of Malo Blato - under pressure out of 7-8 m depth. Bolje Sestre is a ,,broken" water source, since the water flows out in the 25 m long stretch, with the two most abundant sources on which the water will be caught for the needs of the project. For most part of the year the water source is submerged under the lake water.

I'R - ______J.

I

ITSC LTD. MONTENEGRO -OcToBER 2006 25 ENVIRONMENTAL IMPACT ASSESSMENT STUDY ON REGIONAL WATER SUPPLY SYSTEM OF MONTENEGRIN COAST FROM WATER SOURCE BOLUE SESTRE

Source Bolje Sestre panoramic view

Considering the outflow mechanism, the capacity of this source is difficult to determine precisely. The measurement has been performed by a hydrometer wings. However, it is estimated that in the hydrological minimum the capacity is 2-3 m3Is.

According to the recent measurements, performed by National Hydrometeorological Service of Montenegro - Hydrology Department, with current meter, the following flows have been determined as a precise data:

* On August 23, 2005, the water flow was 2,69 m3Is. Since the natural conditions at the location prevented measurement of all the flows of the water source, it was estimated that, beside the measured profile, there were around 300 I/s of the flow, so the total water flow was estimated at around 3 m3/s.

* On August 2, 2006, the water flow was 2,36 m3/s. The measurement took place in specific conditions due to certain deceleration of the groundwater flow in its contact with the waters of Malo Blato. These conditions reduced flow velocity at the measured profile, thus it has been estimated that the results on the water flow are around 10 to 15 % lower than the real ones.

* On September 13, 2006, the water flow was 2,34 m3/s.

Considering the hydrological time of year when the measurements were carried out, and which included hydrological minimum and the distinctive exploit period of the regional water supply system, the capacity of 2,34 m3/s has been accepted as a representative for water source Bolje Sestre. The same conclusion was drawn in few earlier studies (Radulovic, M.: Karst Hydrogeology of Montenegro, Podgorica, 1981.)

Due to complicated outflow mechanism of the source, the measurement may result with an error of +-1 0%. Nevertheless, it can be concluded that the minimal capacity of the source (in september-october) is higher than 2 m3/sec and that during its maximum exploration vary between 2,5-3 m3/sec.

ITSC LTD. MONTENEGRO - OCTOBER 2006 26 ENVIRONMENTAL IMPACr ASSESSMENT STUDY ON REGIONAL WATER SUPPLY SYSTEM OF MONTENEGRIN COAST FROM WATER SOURCE BOLJE SESTRE The wider surrounding of the lake is composed of typical forms of karst, limestone and dolomite rocks, and descending in slopes towards Skadar Lake Basin. From the east and west side, the lake is confined with two karst bars. Hilly terrain surrounding the lake from three sides is covered with scarce and short vegetation. The southern brim of the lake is open and occasionally transforms into floodplain, towards Zabljak Village.

HYDROGEOLOGICAL MAP OF MALO BLATO WIDER SURROUNDING AREA

PREGLEDNA HID ROGEOLOSKA KARTA SIREG PODRUCJA MALOG BLATA

1:100.000

Pw.ma OHC;K fiHt Pnlnri,-1

- LIEGENDA o PRIKAZ TIPOVA ZDAN4I Kvartwrnl "~dimend -* -[LF] fI NSJ wKon1piksdobroptopu*nh I a pIEe,gnnLlrnFptrniwnstl

-~r- ~ ~JIK Kr.enjaci I dlmtt - 'krotnaci Do2bro propusnc i- 4stijene pukolinsko-kavercrne por*zoosti

Ta Slabu propusn. stijmee puktilnakei reda kaverozna A poroznest PRKZ HSDROGEOLOSKIH POJAVA I OBJEKATA

T8 /j 31>* 0Hldrikagranbca

'- Rasjsd uIvrii. pPtitlJ@l

* 0 Kaptirani bunwr d 6-20m

b Kaprsni binwrdo 6m

. .. .. - Oinmara'tkih biakat

- 0 u.iiii bunar . 9k Podvodnlizvorwrulja G*.iralni smj*r kr.t4a p*dz*niih

Pcrlodlbno plavilen tewen

/ : - Tratspula p+

ITSC LTD. MONTENEGRO - OCTOBER 2006 27 ENVIRONMENTAL IMPACT ASSESSMENT STUDY ON REGIONAL WATER SUPPLY SYSTEM OF MONTENEGRIN COAST FROM WATER SOURCE BOLJE SESTRE Rich marsh vegetation grows in muddy deposits of River Sinjacka, around its delta. The vegetation is present along the shallow southern shore, too. During the investigation period that included all four distinctive periods of the year, no typical lake submersed or floating vegetation had been noticed.

Wider surrounding area of the lake is scarcely populated. There are neither permanent settlements nor infrastructure on its shores. There is only a small village Filipov krs, with 5-6 households and a few vacation houses on its southwest shore. On the northern side of the lake, facing fanlike towards Ljesanska nahija, there are Sinjac and Villages with a small number of inhabitants practicing traditional activities of the hither population, such as agriculture and fishery. Further north there is settlement Barutana, beside which passes high traffic density highway Podgorica- Cetinje.

Other villages are located on the opposite side of the highway, at the fanlike side of the valley. Their sparse population breeds small farm animals, cultivates garden vegetables and grapes. All the villages have developed transport infrastructure. Narrow flat stretch on the right shore of Moraca River (Vukovci, , Lekici, Villages), in between of the eastern hilly boundary of Malo blato and Moraca River, is far more populated, and its inhabitants work in agriculture. All year long, particularly during the season, local population is engaged in fishery, using small wooden boats with vanbrodski engine. There is no industrial activity in the area surrounding Malo blato and Bolje sestre, which is very important for protection of the source. Malo blato is navigable only for small boats and powerboats, due to shallowness of its only outflow - Bisevina River - at low water levels.

3.1.3. HYDROLOGY OF SKADAR LAKE

Average annual precipitation in the Skadar Lake basin varies from 1750 mm to 3250 mm, depending on the location. Due to abundance of precipitation (over 2000 mm annually) in Skadar Lake, watershed has remarkable inflow. River Moraca is the most important tributary (mean flow 175 m3/s) and it provides over 50% of the total inflow. On the other side, Skadar Lake oufflows by Bojana River with average flow of 322 m3/s. The lake and river together create one unique system.

ITSC LTD. MONTENEGRO - OCTOBER 2006 28 ENVIRONMENTAL IMPACT ASSESSMENT STUDY ON REGIONAL WATER SUPPLY SYSTEM OF MONTENEGRIN COAST FROM WATER SOURCE BOLJE SESTRE

DISTRIBUTION OF X~ '. PFRECIPTrAriON / / JLAKE SKAOAR BASIN

. . t -,#,\

K] '-'Vt t,

-QV'" '~ >s /

Significant features of Skadar Lake's morphometric surface and subsurface are presented in the following table.

TABLE 3-1 BASELINE MORHOMETRIC DATA ON SKADAR LAKE AT MEAN WATER LEVEL

|Lake features |Dimension |Value 1 Mean altitude above sea level m 5

ITSC LTD. MONTENEGRO - OCTOBER 2006 29 ENVIRONMENTAL IMPACT ASSESSMENT STUDY ON REGIONAL WATER SUPPLY SYSTEM OF MONTENEGRIN COAST FROM WATER SOURCE BOLJE SESTRE

2 Lake surface area (A) km2 372,3 3 Lake surface area in the territory of Montenegro km2 229,8 4 Lake surface area in the territory of Albania km2 142.5 5 Total drainage area (land and water) km2 5490 6 Drainage area in Montenegro (land and water) km2 4.460 7 Drainage area inAlbania (land and water) km2 1030 8 Drainage area/Lake surface area ratio 11.09 9 Lake surface area as percentage of drainage area % 9.01 10 Maximum length, I km 44.0 11 Maximum width, bx km 14.0 12 Mean width, b Km 8.68 13 Maximum depth, zm m 8.3 14 Mean depth, z m 5.01 15 Z/Zm ratio 0.63

16 Volume m3 1931,62 x 106 17 Volume index development (3z/Zm) 1,878 18 Total length of shoreline (including islands), L km 207. 19 Shoreline development index Di 3.03 20 Average annual precipitation mm 2328 21 Approximate length of lake outflow (Bojana River) km 40 Nowadays, this subtropical lake lays 5m above sea level and has drainage basin area covering 5490 kM2, of which 4460 km2 belongs to the territory of Montenegro. The total watershed area of the Skadar Lake is 5490 km2 with average precipitation of 2328 mm. Average cumulative amount of precipitation on the watershed area is 12.776 x 106 m3. Annual oufflow is 322 m3/s, which equals 10.154 x 106 m3/per year. The difference between these two values is in the evaporation, which is around 20% of the total water quantity.

It is important to highlight that Skadar Lake volume varies between 2 to 4 billion of cubic meters. Considering the annual water inflow and outflow, it has been calculated that water retention time is merely 2 to 4 months. This fact could be the best explanation for the non-existence of eutrophication in the Skadar Lake.

ITSC LTD. MONTENEGRO - OCTOBER 2006 30 ENVIRONMENTAL IMPACT ASSESSMENT STUDY ON REGIONAL WATER SUPPLY SYSTEM OF MONTENEGRIN COAST FROM WATER SOURCE BOUE SESTRE The following figures present data on Skadar Lake surface area and volume.

DATA ON SKADAR LAKE SURFACE AREA

D>.pth Area Percent lAcngths tul Pr¶9duct ksn2 n (.onrotvus Arca -, L)epth

0 372.30 1(0 184 372.30 2 318.15 85.46 1. 63,313) 3 281.63 75.6I 1-8 844.89 4 248.7; 8 6 6.) 114 994,%4 5 '206.09 5536 0-, 13,0.45 6, 153.2(, -1.1 "(49.563 9 116.83 18 58 8178TS 8 67.00 18.(0 41 536.00 9 0 0 03

Arca at given depth kni:'

t. ' ,1 , , 't-t -T-rT --r Trr 1 f-rr-----r TT-T rWr 3 1 -r- ri -r7

.I /

I . .11-OCTOBERm6 .1 de200S-c70 0 0Ir 31

o, ic3 29 3Q 4?) B ; 7 0 3 ?IQ

ITSC LTD. MONTENEGRO - OCTOBER 2006 31. ENVIRONMENTAL IMPACT ASSESSMENT STUDY ON REGIONAL WATER SUPPLY SYSTEM OF MONTENEGRIN COAST FROM WATER SOURCE BOL3E SESTRE DATA ON SKADAR LAKE VOLUME

Vo

e9 I9 67.,18974 1h Th l 299.70 989).44 15.82 52.35

3-4 265.00 1254.44 14.(2 ()..3 7 4-5 2217.07 1481.51 12.02 78. 38 181 .)05 16(3.10 9.62 88.00 137.02 1800.18 7.2o 95,20 7-8 90.77 1890.95 4.s( 10W.0))

Volunie btlow given pdepth >X 0';

,. 2^3 400 00 80n, lOn 1243,01400]?C0 fi0'' 77 I89I.f5;

s K

X;.-an eteii 5.01m

7 I

Maximum depth (Cz)- 8.3m

9 _ _ _ _ _ 1 I< 0 lf3 20 30 40 50 5.C) 70 80 90 100

% of total volume

Bojana River is Skadar Lake's outflow. Bojana flows about 18 km through Albanian territory and in its upstream flow it represents border river between Montenegro and Albania, in the length of approximately 25 km. In the downstream flow of the lake, at approximately 1 - 2 km, River Drim flows into River Bojana with the river basin area of 13000 km2. At high water levels, Drim decelerates the outflow from the lake and sometimes water from Drim River partially flows into the lake.

ITSC LTD. MONTENEGRO - OCTOBER 2006 32 ENVIRONMENTAL IMPACT ASSESSMENT STUDY ON REGIONAL WATER SUPPLY SYSTEM OF MONTENEGRIN COAST FROM WATER SOURCE BOLJE SESTRE 3.1.4. THERMAL WATER REGIME OF SKADAR LAKE Thermal conditions in Skadar Lake result from the climate of the existing geographic setting. All the available data suggest that Moraca River is major factor of the northern part of Skadar Lake's physical limnology. Its inflow is rather important for thermal conditions. Seasonal changes in the thermal cycle of Skadar Lake are followed by changes in the air temperature. Comparison of air and water temperatures shows that during the autumn, the mean air temperature is app. 10C lower than the minimum water temperature. During the winter, the mean air temperature and the minimum water temperature are the same. In the spring, the air heats more rapidly than the lake and average air temperature is close to the maximum water temperature. In the summer, the mean air temperature is 2-3°C lower than the maximum water temperature, due to rapid heating of shallow water on very hot days. During the investigation period from 1972 to 1977, water temperature was not below 5°C, and in the summer time, it did not exceed 300C. According to the examinations conducted in the last five years (2000 - 2005) by RHMZ and CETI, maximum water temperature in the summer time was between 300C and 400C, while air temperature was around 400C. The highest temperatures were recorded near the lakeshores, especially in large macrophytes beds.

TABLE 3-2 - WATERTEMPERATURE (°C) OF SKADAR LAKE FOR PERIOD 1952-1970, ACCORDING TO THE RHMZ DATA

Month I -I IlI IV V VI Vil Vil IX X Xi XiI Minimum 1.0 0.0 4.0 8.4 11.2 16.0 19.9 17.2 12.3 9.8 4.0 4.4 Mean 6.4 7.2 10.4 13.8 17.8 22.2 24.4 23.6 18.6 14.1 11.6 8.5 Maximum 12.6 12.8 15.0 18.0 24.6 27.5 28.0 28.8 24.6 19.2 17.4 13.6 Temperatures of Moraca River's inflow waters were much lower than the lake water temperatures and its influence is marked as positive, especially in the summer time when it causes cooling down of the lake body. This influence is evident at inflow armlet in the north, south of Vranjine village. Thermal regime of Skadar Lake is under the influence of Sun and morphology, while influence of tributaries, except Moraca River, is minor. About 80% of the lake is 3m deep. The mean depth is 5m and maximum is around 8m. In these conditions, epilimnion does not exist; water body is almost evenly heated and the deepest water layers are within the isotherm frame of 250C. Moraca River, at its inflow point, and as a fresh and cool river, has the greatest thermal influence. The main effect Moraca River exerts is the water change in the lake basin. The system of water Malo blato has similar thermal regime to the thermal regime of Skadar Lake.

ITSC LTD. MONTENEGRO - OCTOBER 2006 33 ENVIRONMENTAL IMPACT ASSESSMENT STUDY ON REGIONAL WATER SUPPLY SYSTEM OF MONTENEGRIN COAST FROM WATER SOURCE BOLJE SESTRE Temperatures of the source of Boije sestre vary between 11C in winter and 14°C during summer. This implies that air temperature has no influence on water temperature of the source, and that water temperature of the source's inflows and temperature of geological surroundings of the source have dominant influence on the water temperature of the source.

The fact that water temperature of Boije sestre is stable also leads to the conclusion that there is no hydrological connection between Moraca River and the source, which has been confirmed during the investigations that included comparative analysis of physicochemical parameters of Moraca River and Bolje sestre flows (conducted between November 2005 and February 2006 by National Hydrometeorological Service of Montenegro). During the measurements, the difference in temperatures of Moraca River and Bolje sestre flows was up to 4°C, which considering small geographic distance and same climate corresponds to the abovementioned conclusion.

Thermal regime of Malo blato matches the thermal regime of Skadar Lake. This implies that water temperature of Malo blato almost fully depends on climate conditions, while the influence of numerous sources and underwater sources - with considerably lower summer water temperatures - is negligible, except in the closest surrounding of the source. The surface area of Malo blato, which totals app. 8 km2 in its hydrological minimum, its average depth of 3m, as well as the long water retention period in this part of the lake and its slow flowing into Bisevina River causes the water to heat evenly, and the deepest layers to be in the same isothermal frame and depend on solar radiation.

In the following table are presented water temperature of the Malo Blato and Bolje Sestre spring are presented. It can be concluded that the water temperature of Malo blato almost fully depends on climate conditions and that Bolje Sestre has a stable water temperature.

TABLE 3-3 - WATER TEMPERATURE (°C) OF MALO BLATO AND BOLJE SESTRE, ACCORDING TO THE RHMZ AND CETI DATA Date Air Temperature Malo Blato Bolje Sestre 27.08.2005. 34.0 28.6 14.0 29.11.2005. 14.0 10.4 14.6 20.01.2006. 9.0 5.6 11.5 -27.02.2006. 11.3 10.0 13.1

Regarding the mentioned data and the fact that the water of Malo Blato even 20 m away from Bolje Sestre spring, has the same temperature as the water temperature in the middle of Malo Blato, it can be concluded that the impact of the project on thermal regime of the Malo Blato i.e. Skadar Lake is minimal.

ITSC LTD. MONTENEGRO - OCTOBER 2006 34 ENVIRONMENTAL IMPACT ASSESSMENT STUDY ON REGIONAL WATER SUPPLY SYSTEM OF MONTENEGRIN COAST FROM WATER SOURCE BOL1E SESTRE 3.1.5. WATER QUALITY Water quality analyses are performed at nine profiles from May to November. According to the Law on water classification and categorization, Skadar Lake is A2, C 11Class. Considering the relatively dense traffic and pollution, the total water quality is satisfactory and within the legally stipulated values. There are no visible waste materials, except for the common residues of the lake flora. In accordance with the legally stipulated values, lake water is more often higher quality than the stipulated for Al and A2 Classes. The exception is area, where ammonium concentration often exceeds the stipulated values for the aforementioned class, and in which the values of microbiological parameters match A3 Class. Water quality analyses at the source of Bolje sestre includes period from November 2005 to August 2006, and are performed by RHMZ (Podgorica), CETI (Podgorica) and Biological Research Institute "Sinisa Stankovic"(Belgrade).

3.1.5.1. PHYSICOCHEMICAL AND MICROBIOLOGICAL PARAMETERS Two independent laboratories (RHMZ and CETI) carried out physicochemical and microbiological water analyses, and sampling covered each of the four different hydrological periods of the year. The performance of these analyses was in compliance with the scope stipulated by Regulation on hygienic quality of potable water (The Official Gazette of the Republic of Montenegro, No. 42/98), for study and research activities at new water intakes. The following elaboration deals with the water quality at the water source Boije sestre, and is based on the parameters that deviate from maximum permitted concentration values during the abovementioned period, while other parameters are constantly within the permitted limits, and below stipulated MPC values or even below the sensitivity level of the devices. * Arsenic: MPC value for Arsenic is 0,01 mg/I, maximum measured value of Arsenic <0.01 mg/I, which shows that the value is below the sensitivity level of the devices. * Cadmium: MPC values for Cadmium is 0,001 mg/I, maximum measured value of Cadmium is <0,001 mg/I, which shows that the value is below the sensitivity level of the devices. (Cadmium values according to EU Directive is 0.005mg/I) * Selenium: MPC values for Selenium is 0,01 mg/I, maximum measured value of Selenium is <0,01 mg/I, which shows that the value is below the sensitivity level of the devices. * Mercury: Maximum measured value of Mercury is <0.001 mg/I, meaning below the sensitivity level of devices, but with deviation from MPC value which is 0,0005 mg/l. (Mercury value according to EU Directive is 0.001 mg/I) * Cyanide: Maximum measured value of Cyanide is <0.01 mg/I, meaning below the sensitivity level of devices, but with deviation from MPC value which is 0,005 mg/l. (Cyanide value according to EU Directive is 0.05mg/I)

ITSC LTD. MONTENEGRO - OCTOBER 2006 35 ENVIRONMENTAL IMPACT ASSESSMENT STUDY ON REGIONAL WATER SUPPLY SYSTEM OF MONTENEGRIN COAST FROM WATER SOURCE BOLJE SESTRE * Phosphates: MPC value of Phosphates is 0,08 mg/I, maximum measured value is <0,120 mg/I, which is also below the sensitivity level of devices. * Phenols: MPC for Phenols is 0.001 mg/I, maximum measured value of phenols is >0,001 mg/l, which shows that the value is below the sensitivity level of devices.

* Polycyclic aromatic hydrocarbons: MPC value of PAH is 0, 0002 mg/I, maximum measured value of PAH is <0,0002 mg/I, which shows that the value is below the sensitivity level of devices.

* Mineral Oils: MPC of mineral oils is not stipulated by the Directive from 1996, but the Regulation on hygienic validity of potable water (The Official Gazette of the Federal Socialist Republic of Yugoslavia, No. 33/87 stipulates the MPC of mineral oils 0,01 mg/l. Maximum measured value of mineral oils is <0,01 mg/I, which shows that the value is below the sensitivity level of devices. * Other parameters: All the other parameters do not exceed the MPC values, and their registered values in the aforementioned period of time are constantly within the normal limits and in compliance with the Regulation. According to the Directive on water classification and categorization, and from this elaboration it may be concluded that, in terms of physicochemical parameters, water at Bolje sestre matches Al, S, meaning 1st Class water quality. The analyses of microbiological parameters have found the following:

* Faecal coli form bacteria: MPC for Faecal coli form bacteria is 20 per 100 ml of water. These bacteria are registered twice, and the measured values did not exceed the MPC values. Maximum measured value was - 7. * Total coli form bacteria: MPC for total coli form bacteria is 50 per 100 ml of water. At Boije sestre these bacteria are registered twice, and the measured values exceeded the MPC values. Maximum measured value was - 231. * Faecal streptococci: MPC for faecal streptococci is 20 in 100mI of water, and the measured values did not exceed MPC values. Maximum measured value was - 6, in other cases it was either 0 or has not been registered at all. * Proteus types: MPC for Proteus types is none in 1000 or 5000 ml of water. These types were not registered. * Pseudomonas aeruginosa: MPC for Pseudomonas aeruginosa is not stipulated by the Directive, but according to the Regulation hygienic validity of potable water it is 0 in 100mI of water. Pseudomonas aeruginosa was not registered. * Aerobic heterotrophic bacteria: Maximum measured value of aerobic heterotrophic bacteria at the source of Bolje sestre was 276 in 1 ml of water in August and 230 in January 2006. * Salmonella types: Salmonella types have not been registered not once during the water quality analyses performed in 2006.

ITSC LTD. MONTENEGRO - OCTOBER 2006 36 ENVIRONMENTAL IMPACT ASSESSMENT STUDY ON REGIONAL WATER SUPPLY SYSTEM OF MONTENEGRIN COAST FROM WATER SOURCE BOLJE SESTRE In terms of microbiological parameters water quality at source Bolje sestre matches Al, S, meaning 1st Class water quality, according to the Directive on water classification and categorization. Water quality at Bolje sestre source is constantly good and is subject to the strict standards for potable water and water supply system. 3.1.5.2. RADIOLOGICAL PARAMETERS Water analyses at Bolje sestre source involved radiological analyses as well. Radiological analyses were performed by Centre for Ecotoxicological Research of Montenegro, at July 4, 2006. The analyses covered natural radionuclide 40K, 226Ra, 232Th, 235U and 238U. Values for artificial radionuclides Cs137 and Sr90 were also given. Due to very low concentration of some radionuclides, the latter could not be detected, even though the samples were concentrated. These values were given as minimum detectible activity, and are individually specified in the following table.

9 40K (mBq/l) 1 3 7Cs 226Ra 232Th 235U 238u Sr (mBq/1) (mBq/l) (mBq/l) (mBq/l) (mBq/l) (mBq/l)

15.20±1.92 <1.93 <3.74 <1.98 <12.67 <0.22 <0.1

The performed analysis has shown that the activity of all the analysed radionuclides in the given sample was below permitted values, and in compliance with the provisions stipulated by Regulation on limitations of radioactive contamination of the environment and guidelines for decontamination process (The Official Gazette of the Federal Republic of Yugoslavia No. 9/99). In terms of radiological validity the sample is satisfactory. 3.1.5.3. HYDROBIOLOGICAL AND MICROBIOLOGICAL ASPECT The report "Water quality at the potential water intake Boije sestre, Malo blato, Skadar Lake - Hydrobiological and microbiological aspect", produced by Biological Research Institute "Sinisa Stankovic", Belgrade, in July 2006, represents summary of investigations conducted by eminent experts, in order to assess water quality at the potential water intake area of Bolje sestre in the Skadar Lake basin on the basis of biological analysis of phyto- and zooplanktons and analysis of microbiological components. Plankton investigations serve for:

ITSC LTD. MONTENEGRO - OCTOBER 2006 37 ENVIRONMENTAL IMPACT ASSESSMENT STUDY ON REGIONAL WATER SUPPLY SYSTEM OF MONTENEGRIN COAST FROM WATER SOURCE BOUE SESTRE * Evaluation of the developed water trophy level of the potential water intake: Qualitative composition of the phytoplankton community; Quantitative composition of the phytoplankton community as a number of individuals per volume unit (number of individual/cubic centimetre); Selection of the most abundant forms with dimensions in order to estimate the size of the microscreen openings in water treatment plants (WTP); Determination of concentration of the chlorophyll a (conc. Chla), as a measure of produced biomass of plankton plant component; Qualitative composition of the zooplankton community; Quantitative composition of the zooplankton community as a number of individuals per volume unit (number of individuals/cubic decimetre); Selection of the most abundant forms with dimensions in order to estimate the size of the microscreen openings in WTP; * Water quality assessment at the location of potential water intake, based on plankton component of the aquatic ecosystem: Selection of bioindicator species of phyto- and zooplankton, using saprobity system according to Sladecek,V.; Determination of the saprobity degrees according to Liebmann; Determination of the saprobity degrees by calculating saprobity index (S) according to Pantle&Buck.

Microbiological investigations involved: * Investigation of physiological groups - heterotrophic, oligotrophic, proteolytic, saccharolytic, lipolytic and amylolytic; * Water quality assessment at the potential water intake area Bolje sestre in Skadar Lake basin in terms of microbiological parameters (Water solvency Class according to KOHL, Determining the water self treatment capacity and defining the dominant microflora and IFA Measurement in situ and samples were taken at the main source. The water level was low. Depth of the source in the colder period of year varies between 1,5 to 2 m, and in the summer it decreases at around 0,5m. Currently, the depth is less than 0,5m. Air temperature during the sampling was 33,20C, and water temperature was 13,1 0C. Main source bed was covered over with moss. Water turbidity is low. In the water of Bolje sestre source, in the qualitative uncondensed sample from July 2006, only the silicate algae - Bacillariophyceae was registered. These algae are qualitatively predominant, while the presence of other species, such as Chrysophyceae and Chlorophyceae, is low. Predominantly organisms from moss - which covers the source bed - were found in the source water, whereas the presence of lake water flora was rather low. The species found are not rare or endangered and they are typical for this kind of the spring. Qualitative composition of phytoplankton community The typical plankton forms registered were colonies from genus of Dinobryon, class Chrysophyceace.

ITSC LTD. MONTENEGRO - OCTOBER 2006 38 ENVIRONMENTAL IMPACT ASSESSMENT STUDY ON REGIONAL WATER SUPPLY SYSTEM OF MONTENEGRIN COAST FROM WATER SOURCE BOLJE SESTRE During sampling, typical plankton forms of the dominant Bacillariophyceae class were not found, while the presence of benthic, phytophylic and epiphytic forms was registered. These included various genera forms, such as: Melosira, Amphora, Achnanthes, Diatoma, Cocconeis, Gyrosigma, Synedra, Cymbella, Gomphonema, Navicula and Nitzchia. In the source area, at future water intake location, the bed is covered with moss and algae from class Chrysophyceae. Periphyton forms, species from genera Spirogyra and Ulothrix were also present, as well as Closterium ehrenbergi species belonging to Desmidiales class - the class of desmid green algae. In the free source water, in plankton, as free-floating forms, algae species originating from Periphyton are found, from the moss, as well as the species from the source bed from rocks and pieces of wood found in water. Chrysophyceae Dinobryon divergens IMH Bacillariophyceae Achanthes spp. Amphora ovalis KOTZING Cocconeis placentula EHR. Diatoma hiemale (LYNBG.) HEIB. v. hiemale Diatoma vulgare BORY Gomphonema spp. Gyrosigma attentum W.SMITH Melosira varians AG. Nitzschia actinasstroides (LEMM.) Synedra capitata EHR. Synedra ulna v. ulna (KOTZ.) GRUN. Chlorophyceae Ulotrix zonata (WEB. et MOHR) KOTZ. Closterium ehrenbergii MENEGH. Quantitative composition of phytoplankton community represented as number of individualsper volume unit (number of individuals/cm3 ) Quantitative analysis of uncondensed water sample of 250cm3 reveals extremely poor presence of phytoplankton. Only one specimen of silicate algae was registered, Cocconeus placentula 1 ind./cm3. Selection of the most abundant forms, with dimensions, in order to estimate the filter openinq size of microscreensin WTP Selection of the most abundant forms with dimensions in order to estimate the filter opening size of microscreens in WTP was not possible since in the quantitative sampling there were almost no organisms (1 ind./cm3).

ITSC LTD. MONTENEGRO - OCTOBER 2006 39 ENVIRONMENTAL IMPACT ASSESSMENT STUDY ON REGIONAL WATER SUPPLY SYSTEM OF MONTENEGRIN COAST FROM WATER SOURCE BOUE SESTRE Determininq chlorophyll-a concentration (conc. Chi a - uin/dm3), as a measure for produced biomass of plankton plant component Chlorophyll a concentration (conc. Chi a - pg/dM3), as a measure for produced biomass of plankton plant component, determined on from the 3-litre sample, was below the sensitivity level of method - 1 pg/dm3 (ISO 10260, 1992; hot ethanol extraction).

The quantity of detritus from the adjacent terrestrial vegetation is minimal. Qualitative composition of zooplankton communit,

During the water sampling at Bolje sestre source, in concentrated qualitative sample, the presence of only two species were registered - from Rotatoria group - Keratella cohlearis and Colurella adriatica. Such findings were expected considering the type of aquatic system - spring water.

Quantitative composition of zooplankton community represented as number of individualsper volume unit (number of individuals/dm3) No zooplankton organisms, nor their residuals, were found in the 5 litre sample - 0 ind./5 dm3. The amount of detritus is minimal.

Selection of the most abundant forms, with dimensions, in order to estimate the filter opening size of microscreens in WTP

Selection of the most abundant forms of zooplankton, with dimensions, in order to estimate the filter opening size of microscreens in WTP was not possible since in the quantitative sampling no organisms were found (0 ind./5 dm3). During determining the saprobity degree according to Liebmann, it was found that organisms, algae and zooplankton, present in qualitative sampling, are indicators of xenosaprobity, oligosaprobity, beta-oligosaprobity, beta-mesosaprobity, which classifies water at Bolje sestre source as clean water. Determining the saprobity degree by calculating saprobity index S according to Pantle-Buck was not possible due to extremely low number of organisms.

Hydrobiological investigations show that:

On the basis of Chlorophyll-a analysis as a measure of algae produced biomass, according to OECD (1982) and Felfoldy (1980), the trophy is the zone of ultraoligotrophy (<1 pg/dim3), which implies very low productive aquatic ecosystem. Saprobiological analysis revealed saprobity status in oligosaprobity zone, which implies that water at Bolje sestre source is clean 1st Class. The selection of the most abundant forms of phyto- and zooplankton, with the dimensions, in order to estimate the filter opening size of microscreens in WTP was not possible since in the quantitative sampling no organisms were found.

ITSC LTD. MONTENEGRO - OCTOBER 2006 40 ENVIRONMENTAL IMPACT ASSESSMENT STUDY ON REGIONAL WATER SUPPLY SYSTEM OF MONTENEGRIN COAST FROM WATER SOURCE BOUE SESTRE Microbiological investigations show that: Water at Boije sestre source belongs to 1st Class according to Kohl, or 1st B and very clean waters according to the Phosphate activity index (solvency according to lFA 0,07). Lipolytic bacteria, indicators of organic substances of lipid origin, are registered in a negligible number. There are no bacteria signifying the presence of protein and carbohydrate pollutants (mono- and polysaccharides). The relation between the number of facultative oligotrophs and heterotrophs implies acceptable self-treatment capacity of water at Bolje sestre source - self-treatment level 4,8. A great number of bacteria from genus Leptothrix- concentrations of Fe and Mn in the bacterioflora are found in the examined water sample. All species found at the source are typical for the sources with similar quality of water as the water of Bolje sestre spring and they can be found at the other sources along the Skadar lake coast. None of the mentioned species is protected or endangered. On the basis of biological analyses of phyto- and zooplankton and microbiological component, it has been assessed that the source water quality at the location of the potential water intake, Bolje sestre in Skadar Lake, in July 2006, was - Al Class, and therefore the source is suitable for water intake, according to the existing legislation of the Republic of Montenegro. Source capture would eliminate all algae species coming from the moss covers or free lake water and/or watershed, which cannot survive without light, even though at this moment, considering only one sample set, we cannot foresee their number or the pressure their residuals would have on screens in WTP.

3.1.6. RESEARCH ACTIVITIES AT BOLJE SESTRE SOURCE Beside physicochemical and microbiological water quality analysis, the following investigations have also been performed at Bolje Sestre source: 1. Water flow measurement at the water source, 2. Tracing - Water-dyeing experiment at Moraca River, 3. Underwater filming of Boije Sestre water source and Moraca River Abyss, 4. Geophysical investigation of the location, 5. Geoelectric investigation of the Moraca River alluvium, 6. Hydrogeological investigations. The investigations were aimed at determining watershed of the source, defining possible pollution factors of the source and stipulating protection measures.

ITSC LTD. MONTENEGRO - OCTOBER 2006 41 ENVIRONMENTAL IMPACT ASSESSMENT STUDY ON REGIONAL WATER SUPPLY SYSTEM OF MONTENEGRIN COAST FROM WATER SOURCE BOLJE SESTRE Geophysical and hydrogeological investigations at the area between Malo blato and Moraca River have been performed in three phases:

* I Phase included karst terrains east of Malo blato (above Boije sestre source, a part of terrain in the Grbavci village area)

* II Phase included lowland terrains between Grbavci and River Moraca watercourse (geoelectric tomography)

* III Phase involved testing of geophysical investigation results by borehole drilling investigation at the lowland part of Grbavci village. On the basis of geophysical and hydrogeological investigations and experiments performed between Malo blato and Moraca, the following conclusions may be drawn: * Water source Bolje Sestre receives part of the flow from the narrow groundwater course Grbavci formed in glaciofluvial sediments, which in the direction of the groundwater course determined by geoelectric scanning and investigative borehole drilling have good filtration characteristics. It is a part of the narrow groundwater course with free water level, which infiltrates into carbonate rocks of the eastern side of Kolozub and drains in the level and below the level of Malo Blato waters. The results of chemical analysis carried out at the same time on samples from the wells in Grbavci and this water source, as well as the hydrological inclination of the narrow groundwater course from borehole BG1 to borehole BG2, have proven that water source Bolje Sestre receives part of the flow from the narrow groundwater course Grbavci.

* Underwater source Bolje Sestre receives part of the flow from the narrow groundwater course from the direction of Grbavci-Kolozub, discovered by the electromagnetic and geoelectric tomographic investigations (below quaternary glaciofluvial deposits and transitory clay layer, there are cretaceous limestone within which the karst spring is under pressure. For these reasons, the water at Boije Sestre drains mainly below the level of Malo Blato waters, which is easy to determine by the bubbles that water creates flowing out under pressure from the bottom of this phenomenon, which is app. 8 m deep.) * Water source Bolje sestre is not fed with Moraca River's surface watercourse. This is proven by the investigation results of "Energoprojekt" from Podgorica in July 2006, and water quality of the source (chemical analyses, location and source water drainage mechanism). Earlier hypothesis on possible direct connection with Moraca River watercourse, based on balance method, are not confirmed in the investigation results.

* Groundwater courses feeding Bolje sestre water source come partly from the narrow groundwater course Grbavci, and partly from the karst spring paleorelief.

* Water at Bolje sestre source is extremely high quality in terms of chemical composition. This is the case with the water of groundwater course Grbavci, which is used for drinking through drilled and dug wells.

ITSC LTD. MONTENEGRO - OCTOBER 2006 42 ENVIRONMENTAL IMPACT ASSESSMENT STUDY ON REGIONAL WATER SUPPLY SYSTEM OF MONTENEGRIN COAST FROM WATER SOURCE BOUE SESTRE * On the basis of water quality analysis at Boije sestre and Karuc, it may be concluded that waters of these sources belong to the same watershed.

3.1.7. CLIMATE The Lake region has Mediterranean climate (warm summers, moderately cold winters) with very high evaporation. Skadar Lake lies in an area with extremely high evaporation rate. The large amount of precipitation coupled with high summer temperatures contribute to the chemical impact of weather and the development of karst landscape. Annual precipitation varies from 1800 mm to 3250 mm, while average monthly temperatures are in the interval from 4 to 280C. Due to changeable precipitation, the lake depth (5-10 m) and surface are fluctuate considerably (35,000 - 60,000 ha). There are many sunny days during the year, approximately 2600 hours per year, while monthly average ranges from 88 hours in winter to 369 hours in summer. Annual average number of cloudy days is 84.3 days. Mean annual relative humidity is 66%. Northern and eastern winds blowing in the Skadar Lake watershed are strong, dry and cold, and blow during autumn, winter and spring. Very similar are winds blowing from the northwest. Southern winds increase air temperature and relative humidity and bring rain. These winds more often blow in October, November and . Winds blowing from west, though rare in this region, may be extremely strong, and bring thunder, hailstorm, heavy rains, and frequently cause damage. These data show that Skadar Lake has Mediterranean to continental climate, while Lake Shores at higher height above sea level have climate characteristic for mountains.

3.1.8. ECOSYSTEM AND BIODIVERSITY Skadar Lake is one of the largest fresh water lakes in Europe and has an extremely wide floodplain in its northern part. Ramsar convention from 1996 included Skadar Lake into list of internationally important swamps, as significant water birds' habitat. Skadar Lake is situated at the meeting point of large zoogeographic areas: spatial Palaearctic area of Mediterranean and Northern Africa, which is very important for migratory part of fauna. The connection of these areas over Skadar Lake is best illustrated through bird fauna, i.e. the presence of winter species from various parts of the world. Due to preserved ecosystem and inaccessibility of some parts, Skadar Lake is habitat for 279 bird species, among which 73 are migratory nesting species, 18 species are regular visitors in autumn and spring, 45 are regular winter visitors, 12 species regularly spend summer but do not form nests, and 90 species are occasional visitors to Skadar Lake. Thus, total number of 238, i.e. 90% of Skadar Lake bird species belongs to migratory part of bird fauna, which connects Lake with the neighbouring and distant countries and continents. The species feeding in this area include: Pygmy Cormorant (Phalacrocorax pygmaeus), Dalmatian Pelican, various species of ducks, woodpeckers, skylarks, etc. The trademark of this lake is surly pelican.

ITSC LTD. MONTENEGRO - OcTOBER 2006 43 ENVIRONMENTAL IMPACT ASSESSMENT STUDY ON REGIONAL WATER SUPPLY SYSTEM OF MONTENEGRIN COAST FROM WATER SOURCE BOUE SESTRE Among total number of species that have been registered in the Skadar Lake basin, 239 species have status of protected bird species in the National Park. Many of these are rare and endangered. The number of birds spending winter on the lake has sharply decreased in recent years, from around 250,000 in 1999 to around 80.000 in 2004. The number of Dalmatian pelican dropped as well from 25 to some 6 pairs only, while ducks feeding in the area are almost gone.

Around 40 fish species live in the lake and the most interesting among them are indigenous species of carps and bleaks. What fascinates is that even some saltwater fish may be found here, such as: eel, salmon and many other species. In the National Park, nature protection is provided by categories. In accordance with provisions of the Law on nature protection, ornithological reserves Panceva oka and Manastirska tapija are selected and protected within the category of special nature reserves, while the proclamation of another two ornithological reserves - Crni zar and islet Grmozur - is pending.

Area of Lake Waters and its northern wetland coast, together covering the area of 20.000 ha, are under international protection. The area encompasses the most important bird habitats, such as winter habitations, feeding and nesting sites, including the migratory route for many migratory birds (Podhumski Bay). Ramsar convention from 1996 included Skadar Lake into list of wetlands of international importance, as significant water birds' habitat. The mere act of registration made the natural values of this National Park become internationally recognized and new protection mechanisms to be introduced, along with the existing WISE USE mechanism, in line with sustainable development.

The most important ratified conventions for Skadar Lake are: Convention on swamp areas of international importance (1995.), Convention on biodiversity (2002.), and Convention on international trade in endangered species - CITES (2002.).

n ~~i" iiC' d *tt

Ecosystem of the lake is extremely complex, sub-Mediterranean type, with dominant wetland biotypes, which cover mainly northern side, and thus represents important habitat for bird survival. It is related to the general high production of organic mass in this area, from plankton production, to invertebrates and fish, birds and mammals. Enormous ecological diversity and complexity of mutual relations, especially of food chain, is mostly evident in the zone of macrophyte vegetation.

ITSC LTD. MONTENEGRO - OCTOBER 2006 44 ENVIRONMENTAL IMPACT ASSESSMENT STUDY ON REGIONAL WATER SUPPLY SYSTEM OF MONTENEGRIN COAST FROM WATER SOURCE BOLJE SESTRE Life processes are most intensive there. Birds, as significant secondary biomass consumers, play extremely important role in the circling of substances within the ecosystem, or within the entire ecosystem metabolism. Role of birds is also emphasized by the fact that these are very movable organisms, which transfer easily and quickly, not just within the area, but also inside the whole region. Birds also represent the most important biological connection with other ecosystems that are frequently very distant. Swamp birds belong to the mostly endangered group of birds in Europe, which is evident in general decrease in the number of these birds. A decrease in the number of the species spending winter at the Skadar Lake has been registered. The fact has been proven during the ten-year-long (IWC) monitoring, continually conducted since 1990. The reasons of decrease in the population number most probably lies in the general conditions of the ecosystem and in the combination of many causes. One of the ecological factors - disturbance - is among the causes often neglected in public and in action planning. Practice has proven its great importance and serious consequences it can leave on bird population (apparent examples are the colonies which have suffered greater changes: Manastirka tapija, Crni Zar and Panceva oka). Although the hunting pressure, which has been the basic form of disturbance to date, has reduced, other forms of disturbance are still present and increasing. Disturbance is a consequence of all activities on the Lake, from wood exploitation, to random construction of various facilities, movement of people, tourism activities, exploitation of mineral resources, construction of new roads, etc. The accompanying list of Cyclostomatous and Pisces of Skadar Lake shows that ichthyofauna consists of 17 families, 38 genera and 45 species. The fauna, similar to the one near Adriatic Sea, is a territory with significant number of endemic species. Among these species are: Pachychilon pictum and Salmothymus obtusirostris zetensis. Bojana River is the Skadar Lake's oufflow and provides a direct connection with Adriatic Sea. The presence of cold tributaries, primarily Moraca River, accounts for the temporary and permanent presence of salmon species in Skadar Lake, such as: Salmo trutta fario, Salmo gairdneri, Salmo dentex, and Salmo marmoratus. Skadar Lake is an ideal cyprinid lake, due to its low altitude above sea level, shallowness and warmth. In qualitative sense, it is rather poor, since there are only 16 genera and only the genus Leuciscus has more then one species - two. Contrary to a low qualitative representation of cyprinids, there is a large quantitative representation of bleak specimen - Alburnus alborella, and carp specimen - Cyprinus carpio, both of which have high market value, as well as Rutilus rubilio, and Scardinius erythrophthalmus scardafa. On the territory of NP Skadar Lake there are no protected flora's species. Malo blato has typical characteristics regarding biodiversity, geomorphology, hydrogeology, thermal regime, etc. as the Skadar Lake. In this area, there are no registered rare or endangered species. Therefore, itself, Malo blato has been analyzed as a part of Skadar Lake.

ITSC LTD. MONTENEGRO - OCTOBER 2006 45 ENVIRONMENTAL IMPACT ASSESSMENT STUDY ON REGIONAL WATER SUPPLY SYSTEM OF MONTENEGRIN COAST FROM WATER SOURCE BOL1E SESTRE TABLE 3-4 BASIC ANIMAL SPECIES INSKADAR LAKE REGION Latin name of species Local name of species (MN) English name of species Fish (some of 56 species are listed) Alburuns albumus arborella De Filippi Ukljeva Bleak Angulla anguilla Linne Jegulja Eel Aristichtys nobilis (Richardson) Sivi tolstolobik Silver carp Carassius auratus gibelio Bloch Karas German Fish Chondrostoma scodrensis Skobalj Skadars Beaked Carp Ctenopharyngodon idella Valencienness Bijeli amur Grass carp Cyprinus carpio carpio Linnaeus Krap Carp Leuciscus cephalus albus Bonaparte Klijen White Chub Perca fluviatilis fluviatilis Linnaeus Grgec Perch Thymallus thymalus Linnaeus Lipljan Grayling Acipenser stellatus Jesetra Sturgeon Salmo trutta lacustris Jezerska pastrmka Lake Trout Acipenser nacarii Bonaparte Jadranska jesetra Amphibians, (among 15 species) Salamandra salamandra Sareni dazdevnjak Salamander Trirurus alpestris Planinski mrmoijak Alpine Nawt Bombina variegate Zutotrbi mukac Yellow beillied Bufo bufo Velika krastava zaba Common toad Rana shqiperica Skadarska zelena zaba Reptiles (some of 30 species are listed) Testudo hermanni Sumska komjaca Hermann's Tortoise Emys orbicularis Barska kornjaca European pond Hemidactylus turcicus Kucni gekon Turkish Gecko Podarcis melisellensis Kraski guster Dalmatian wall Pseudopus apodus Blavor European glass Malpolon monspessulanus Mrki smuk Montpellier Snake Vipera ammodites Poskok Nose horned Viper Birds, (some of 271 species are listed) Gavia stellata Krivokljuni morski gnjurac Red throated Diver Podicaps grisegena Ridjogrli gnjurac Red nenced Grebe Phalacrocorax carbo Veliki kormoran cormorant Pelecanus onocrotalus Mali pelican White Pelican Botaurus stellaris Nocni bukavac Bittem Ardeola ralloides Zuta caplja Squacco heron Ardea cinerea Siva caplja Grey Heron Anser anser Divlja guska Greylag Goose MelaniKa tisca Barsunasti turpan Vavlet scoter Pernis apivorus Jastreb osicar Honey Buzzard Milvus milvus Crvenkasta lunja Red kife Accipiter nisus Kobac Sparrowhawk Aquila heliaca Orao krstas Imperial Eagle Falco naumanni Belonokta vetruska Lasser Kestrel Falco cherrug Stepski soko Saker Otis tarda Velika dropla Great bustard Larus minutes Mali galeb Little Gull

ITSC LTD. MONTENEGRO - OCTOBER 2006 46 ENVIRONMENTAL IMPACT ASSESSMENT STUDY ON REGIONAL WATER SUPPLY SYSTEM OF MONTENEGRIN COAST FROM WATER SOURCE BOLJE SESTRE Clumba livia Divlji golub Feral Pigeon Alpus melba Bela ciopa Alpine Swift Anthus spinoletta Planinska trepteljka Water Pipit Turdus merula Kos Blackbird Sylvia curruca Grmusa cevdjinka Lesser Whitethroat Mammals, (some of 57 species are listed) Canis lupus Vuk Wolf Apodemus sylvaticus obicni sumski mis Black rat Crocidura leucodon poljska rovka (field) shrew Dryomys nitedula sumski puh dormouse Felis silvestris Divlja macka wildcat Lutra lutra Vidra ottet Mustela nivalis Lasica weasel Myotis myotis Veliki sismis bat

Water source Boije sestre, located in Malo blato in the Skadar Lake basin, is inhabited by colonies of Chelidonias hybrida. The monitoring conducted in winter months showed that a number of flocks spending winter there is decreasing (Anas crecca - Teal, Anas acuta - Pintail, Anas Plathyhynchos - Mallard, Anas Penelope L. - Wigeon, Aythya ferina - Pochard, Podiceps nigricolis - Eared Grebe, Phalacrocorax carbo - Comorant, Phalacrocorax pygmeus - Pygmy Comorant, Fulica atra - Coot, etc.). On the basis of ornithological investigations performed to date, the water source itself and its closest surroundings do not represent bird nesting sites and are in no other way distinctive location. Malo blato area, thus the Boije sestre source, is not known as an area inhabited with specific plant or animal species, and is not included in the National Park Skadar Lake special protected areas. In other words, the area of Boije sestre and Malo blato is habitat of flora and fauna that can be found in other parts of the Lake, too. The species found in area of Bolje Sestre are not rare or endangered and they are typical for this kind of the spring. Malo blato area, stretching from Zabljak Crnojevica, over Segrtnica and Bisevina Rivers to the water source Bolje sestre, is still covered with microphyte vegetation of white and yellow water lilies and reed (Nuphar luteum L., Nymphaea alba L. and Phragmithes communis L.), and shore vegetation of white willow and white poplar (Salix alba L., Populus alba L.). Malo blato itself is an open water area without vegetation.

ITSC LTD. MONTENEGRO - OCTOBER 2006 47 ENVIRONMENTAL IMPACT ASSESSMENT STUDY ON REGIONAL WATER SUPPLY SYSTEM OF MONTENEGRIN COAST FROM WATER SOURCE BOUE SESTRE 3.1.9. POPULATION 3.1.9.1. STATUS ASSESSMENT

Demographic movements at the Republic level, in the longer time period (analyses of Population Census from 1971, 1981, 1991), show generally negative trends. Citizens of Montenegro move out, total population growth rate decreases; birth rate decrease is constant, and population ages. Migration from Northern to Central, and especially Southern region, still lasts, and is accompanied with constant process of urbanization (58% of the population lives in urban areas).

Skadar Lake NP area encompasses Central and Costal regions of the Republic, i.e. the territory that administratively belongs to the municipalities of Bar, Cetinje and Podgorica. Analysis of the demographic movements at the settlement level, encompassing only settlements belonging to or neighbouring the Park area, indicates absolute decrease in population number, within a longer time period. During the last decade, the decrease has somewhat slowed down, due to the demographic "exhaustion" of the area, rather than undertaken activities on consolidation and improvement of the Lake area and surroundings.

Certain socio-economic and ethnic-tribal complexes neighbouring the Park, formed during history, include: Krajina and Crmnica, in municipality of Bar; Rijecka nahija, in municipality of Cetinje; and Ljesanska nahija, Zeta and Malesija, in municipality of Podgorica. 3.1.9.2. POPULATION ACTIVITIES

Agriculture has been central foundation of rural areas for centuries, thus of Rijecka nahija area, too. Skadar Lake shore region has poor agricultural potentials, consisting of land in small valleys, formed at thin layer of soil. Deagrarianization took place, and turned former agricultural area into an area with non-agricultural features. Household production function is ceasing, which means that the role of households and agriculture in the existence of villages becomes minor. Due to natural conditions, the main economic activities are cattle breeding and fishery. The location of potential water intake for regional water supply system of Montenegrin coast is situated in the area of Rijecka nahija. Villages closest to the potential water intake are: Dodosi, Zabljak, Prevlaka, Rijeka Crnojevica, Rvasi, Drusici. The area lying in between of eastern hilly boundary of Malo blato and Moraca River is far more densely populated, and comprised of Vukovci, Grbavci, Lekici and Farmaci Villages. As in the entire National Park, negative demographic processes are also detected in the villages of Rijecka nahija. These trends will continue for two basic reasons. First, population base is weak, with small and much "aged" villages, and thus not a good foundation for positive population policy. All the villages in this area are neighbouring the Lake, which is continually less abundant, which causes their limited number of working age population to leave the area.

ITSC LTD. MONTENEGRO - OCTOBER 2006 48 ENVIRONMENTAL IMPACT ASSESSMENT STUDY ON REGIONAL WATER SUPPLY SYSTEM OF MONTENEGRIN COAST FROM WATER SOURCE BOU E SESTRE TABLE 3.5 POPULATION BY VILLAGES Village | 1971 1981 1991 2003 Dodosi 241 112 69 53 Zabljak 96 56 49 40

As for the second reason, population age structure has significantly changed in the last 20 years. Young population, which is emigrating, has decreased to one third. Nowadays, one in three inhabitants of Rijecka nahija is over 60 years old, and age threshold indicates that ageing process of the population has started well off. The process attributes to the entire Republic.

TABLE 3-6 AVERAGE AGE BY VILLAGES Village Average age Dodosi 65,8 Zabljak 44,2

As a consequence of these trends, number of households also decreases, and furthermore, there is a decrease in average household size, which are already near the limits of mere reproduction. In Dodosi, Karuc, Zabljak and Prevlaka villages these limits have been crossed. This Park area is endangered, the population decreases constantly, and its base continually weakens. Village population sizes are small and very dispersed, which gives no hope of keeping not even the existing situation. The wider surrounding area of the Bolje sestre source is not inhabited and two closest notable villages are Dodosi and Zabljak Crnojevica. Though significant population drain takes place in these villages, their existence is still not endangered. Fishery is main source of existence in this area, especially in Prevlaka, Dodosi, Zabljak and Karuc. In time, this has changed, and with the decrease in fish resources, general sustainability of these villages would decrease. Nowadays, fishery remained important economic activity, but it is no longer existentially important due to resource scarcity and employment transfers to another industry.

TABLE 3-7 POPULATION ACTMTIES BY INDUSTRY (CENSUS 2003.) Agriculture, Process Hotels and Village hunting, forestry Fishery industry restaurants Dodosi I Zabljak 4 5

ITSC LTD. MONTENEGRO - OcToBER 2006 49 ENVIRONMENTAL IMPACT ASSESSMENT STUDY ON REGIONAL WATER SUPPLY SYSTEM OF MONTENEGRIN COAST FROM WATER SOURCE BOLJE SESTRE 3.1.10. TOURISM

3.1.10.1. STATUS DESCRIPTION

Commitment to ground long-term development of Montenegro on the economic valorisation of its own comparative advantages, in line with principles of sustainable development, gives the tourism industry priority in the future socioeconomic development.

Due to complementarities of the Skadar Lake region with the attractions of Montenegrin coast, Cetinje - the historical capital, Podgorica - the administrative capital, and Bar - the leading port in the Adriatic Sea, this area undoubtedly has great tourism potentials. The natural values, cultural heritage, gastronomy, old fishing villages and sea vicinity are advantages of the Lake that are far from fully used, since they have not been integrated into an easily recognizable tourist product. In addition, potential opening of the Lake through the navigation system of Bojana River, and shipping line Virpazar - Skadar, as well as , create setting for the considerable change in the Lake offer.

Presently, the most frequent type of tourism in the NP Skadar Lake is the excursion one (Lake cruising), which primarily appeals to the tourists visiting Montenegrin coast. Local entrepreneurs organize excursions, and in 2004, 7.000 people visited the Lake that way, according to the National Park statistics. Beside this type of tourism, other tourist attractions become increasingly important. Horse riding in the open areas, sailing, bird watching, and hiking are just some of the tourist activities supported by the local entrepreneurs in the last five years. NP Skadar Lake Spatial plan foresees various locations for tourism development, i.e. spreading of accommodation facilities and tourist activities across the entire NP area. Two old fishing villages are situated in or gravitate to the potential water intake area: Dodosi and Zabljak Crnojevica. To date, the plans envisaged this area for the development of rural, lakeside and fishing tourism. These locations can be organized as extremely attractive ethnographic villages, and due to great advantages in development of excursion and weekend tourism, development plans had foreseen organization of special elements with the same objective, such as: restaurants, shops and private accommodation. The construction of basic accommodation facilities is not recommended in this area, according to the spatial plan. However, even though these villages have doubtless potential for quality tourism development, no significant progress has been made in that direction in the previous period. Excursion tourism, i.e. Lake cruising, as the most frequent way of visiting the National Park, does not gravitate towards this area. The majority of excursion visits are focussed on , Murici and Rijeka Crnojevica. There are almost no restaurants and catering offer, nor other tourism attractions in these villages, with the exception of Dodosi. So-called weekend tourists make up the majority of visitors to this area. Namely, the population has begun to re-inhabit the area in recent years, and nowadays many abandoned houses are being reconstructed as weekend accommodation facilities. The most common activity of weekend tourists is sport fishing, which together with the lakeside bathing attracts the most of other visitors to the area. The area is irregularly visited during the hunting and fishing season.

ITSC LTD. MONTENEGRO - OCTOBER 2006 50 ENVIRONMENTAL IMPACT ASSESSMENT STUDY ON REGIONAL WATER SUPPLY SYSTEM OF MONTENEGRIN COAST FROM WATER SOURCE BOLUE SESTRE A large decrease in population number and its increasing age average in this area are without doubt the reasons for the lack of interest of local citizens to organize business activities that could enhance tourist product of this area.

3.1.11. NATIONAL PARK "SKADAR LAKE" Location of the water source for the water supply system of Montenegrin coast, as well as 20 km long pipeline, is situated in the Skadar Lake basin. Since Skadar Lake is National Park i.e. the natural value of interest for the Republic of Montenegro, the environmental impact of the project will be reviewed by its status, categories of nature protection and legislation.

3.1.11.1. STATUS Skadar Lake was declared National Park in 1983., by the adoption of Law on Skadar Lake (The Official Gazette of the Republic of Montenegro, No. 33/83). Independent interest association Skadar Lake, as legal entity, began its work in 1985., when the Protection and Expert Services were established. The Parliament of the Republic of Montenegro adopted the Law on National Parks in 1991. (The Official Gazette of the Republic of Montenegro, No. 41/91), and in January 1993., in accordance with this Law, established Public enterprise "National Parks of Montenegro", which consists of four existing national parks with joint Protection Service. Covering the areas of the municipalities of Podgorica, Cetinje and Bar, totalling 40.000 Ha, Skadar Lake is the largest National Park in Montenegro, which in addition to water surfaces encompasses narrow shoreline strip. The boundaries of the National Park are shown in Drawing II of the appendix, The area with the status of internationally protected object includes 20.00 Ha of Lake water surface and its northern wetland coast. In line with the provisions of Ramsar Convention, in 1995., Skadar Lake has entered the List of wetlands of international importance, as a significant waterfowl birds' habitat. The very act of the registration of the NP natural resources caused their international recognition and introduction of new protection mechanisms, besides WISE USE, in accordance with sustainable development.

3.1.11.2. NATURE PROTECTION In the NP, nature protection is provided by categories of objects, in accordance with the existing legislation.

3.1.1 1.2.1. CATEGORY OF SPECIAL RESERVES OF NATURE According to the provisions of Law on nature protection, the following objects fall under the category of Special natural reserves: * Panceva oka, as the ornithological reserve and nesting site of pelicans; * Manastirska tapija, as ornithological reserve.

ITSC LTD. MONTENEGRO - OCTOBER 2006 51 ENVIRONMENTAL IMPACT ASSESSMENT STUDY ON REGIONAL WATER SUPPLY SYSTEM OF MONTENEGRIN COAST FROM WATER SOURCE BOUE SESTRE The Spatial plan of the NP foresees physical extension of both reserves, as well as the revision of the existing status - in such way that it would remain under protection but within the category of general reserves of nature.

3.1.11.2.2. CATEGORY OF GENERAL RESERVES OF NATURE According to the regulations of Public enterprise "National Parks of Montenegro", Grmozur Island falls under the Category of general reserves of nature, as the nesting site of many bird species, and the habitation of numerous population of _ (Podaris moralis) and some endemic plants as well (Cymbalaria microcalidy, etc.). 3.1. 11.2.3. CATEGORY OF RESERVES OF NATURE The Spatial Plan of the NP Skadar Lake foresees the protection of following objects in the category of reserves of nature:

* Crni zar, as the ornithological reserve and the nesting site of pelicans; * Omerova gorica, as the nesting site of many bird species, especially of the Grey Heron; * Karuc, as ichthyologic reserve;

* Djuravacki skolj (Kaurica Island), as the bird habitat; For the abovementioned objects, a procedure established by the Law on nature protection must be followed in order to gain legal status of the protected objects of nature i.e. natural values of the Park, as general or special reserves of nature, which will depend on the additional investigation results.

3.1.11.2.4. CATEGORY OF MONUMENTS OF NATURE Murici beach is protected under the category of monuments of nature. The Spatial plan of the NP Skadar Lake foresees the following objects to be protected under this category: * Obodsko vrelo (crater area);

* Canyon riverbed of Cijevna River, through Cemovsko field (connected to the Park area).

3.1.11.2.5. NATURE PROTECTION ON OTHER BASIS

The special Decision of the Republic Institute for nature protection, on the territory of Montenegro, thus the NP Skadar Lake also, certain plant and animal species are put under protection, as well as their components and communities, endangered due to natural causes or human activity. 57 plant and 314 animal species are put under this protection.

ITSC LTD. MONTENEGRO - OCTOBER 2006 52 ENVIRONMENTAL IMPACT ASSESSMENT STUDY ON REGIONAL WATER SUPPLY SYSTEM OF MONTENEGRIN COAST FROM WATER SOURCE BOLUE SESTRE 3.1.11.3. INTERNATIONAL LEGISLATION Skadar Lake, together with Bojana River, represent typical example of dual (bilateral) "border" waters between Serbia, Montenegro and Albania. As the subject of legislation, these waters are equally subject to the international and national laws, with national law being subordinate to the international law, since none of the mentioned states has exclusive and full sovereignty over the border waters. The Council of Ministers of the State Union of is responsible for the implementation of international treaties and conventions ratified by the former Federal Republic of Yugoslavia, and for the ratification of new ones. International regulations relating to the legal regime of the Skadar Lake and Bojana River are the following: The Agreement on water management issues between the Governments of the Republic of Montenegro and the Republic of Albania dated October 10, 2001. (Article 1, Item 3), refers to Skadar Lake, its outflows and tributaries, Bojana River and its tributaries from the transboundary area. The Agreement on water management issues between the Governments of Montenegro and Albania (hereinafter: Agreement) from 2001, represents a basic international enactment, used as a baseline of the physical and hydrological unity of the Skadar Lake watershed, Bojana and Drim Rivers, on the basis of which the legal status of these waters was defined so that they can be exploited, conserved and protected. A joint commission have been formed (Article 4), as well as a sub- commission in charge of the Skadar Lake and Bojana and Drim Rivers, on October 31, 2001. Besides the Agreement, the Statute of the joint Montenegrin and Albanian Commission, adopted on the same date, may also be considered relevant to this issue. Both stated documents are constituents of the Montenegrin legal system, and, as such, can be directly applied. The possibility of water capturing at the stated areas is set forth in the Article 1, Item 2, Line "g" of the Agreement. Therefore, there is a clear and unambiguous international legal basis for exploitation of these water sources for the purpose of water supply system of the coastal region. Article 2, Section 3 of the Agreement states that construction of new and potential adaptation of existing facilities, which might affect waterways in a way to either come together or intersect in the transboundary area, will be subject of agreement.

ITSC LTD. MONTENEGRO - OCTOBER 2006 53 ENVIRONMENTAL IMPACT ASSESSMENT STUDY ON REGIONAL WATER SUPPLY SYSTEM OF MONTENEGRIN COAST FROM WATER SOURCE BoUE SESTRE * Considering the maximum water quantity for intake (volume of 6.894 million m3 calculated per two mounts - July and August) and in the period when the water level of Skadar Lake is the lowest, volume of the Lake will be reduced for only 0,03% in that period. Estimated water level decrease is app. 5 cm, while the natural annual water level fluctuation is app. 5 m. However, it is well known that the Lake's water level is continually recovered due to constant water inflow and precipitation. Thus, the capturing of the mentioned water quantities would not have any impact on water level and water quality of the Lake, and the basin in general.

* Around 65% of the aquifer belongs to Montenegro, while 35 % belongs to Albania. The Lake discharges through Bojana River. The Lake's most important tributaries are Moraca and Crnojevica Rivers, as well as numerous sources and underground sources in the territory of Montenegro. The foreseen withdrawal areas, in the Montenegrin inland, will not have negative impacts on hydrological, chemical, physical and biological features of the Skadar Lake basin or on the ecosystem of the basin. The most important fact is that the exploiting water in this way and for these purposes will not impair basin's capacities for similar or other purposes.

* As for the issue of exploitation of international waters for the purposes of irrigation, countries comply with the principle that the quantity of water captured from the transboundary watercourses equals the water quanty belonging to that country.

* Finally, exploitation of surface waters - including the transboundary ones - with the aim of potable water provision has priority over any alternative water exploitation, as confirmed by the latest activities on the codifying of this part of international legislation within the International Law Association (ILA) and Parisian Institute for International Law (IDI).

* At the present time, neither Skadar Lake nor Bojana/ Buna River is considered navigable watercourses, since not used for the purposes of international navigation. Until the beginning of the Second World War, or more precisely by the Italian occupation of Albania, both the Lake and the River were used as commercial navigable areas by the bordering countries Montenegro and Albania (established by the Berlin Covenant from 1878). At that time, the transboundary water was treated as navigable area, but only on bilateral basis. After the Second World War, the international navigation at the Lake and rivers was abolished by the Agreement on transboundary conflict prevention in 1953, between the Federal People's Republic of Yugoslavia and People's Republic of Albania. Crossing border between FPRY and Albania was explicitly forbidden for both civil and military ships. If the navigation regime at the Lake should recover, which is undoubtedly in the interest of both countries, water capturing at the selected sources in the Skadar Lake basin will not impair the potential Lake navigation. Other important (ratified) conventions for the Skadar Lake include: * Convention on wetland areas of international importance (ratified in 1977);

ITSC LTD. MONTENEGRO - OCTOBER 2006 54 ENVIRONMENTAL IMPACr ASSESSMENT STUDY ON REGIONAL WATER SUPPLY SYSTEM OF MONTENEGRIN COAST FROM WATER SOURCE BOLUE SESTRE * Convention on biological diversity (ratified in 2002); * Convention on international trade in endangered species - CITES (ratified 2002).

3.1.11.4. NATIONAL LEGISLATION The protection measures for natural and cultural resources of the National Park "Skadar Lake" are stipulated by: * The Law on National Parks (The Official Gazette of the Republic of Montenegro, No. 41/91) * The Spatial Plan of the special purpose area for the National Park Skadar Lake (The Official Gazette of the Republic of Montenegro, No. 46/01) * The Protection and development programme of the National Park "Skadar Lake" 2005-2010, and * The documents of the Public enterprise "National Parks of Montenegro". On the basis of the cited status, and the state of nature protection categories, in accordance with legislation, the following may be concluded: * By declaring Skadar Lake a National Park, the protection, improvement and exploitation of its natural resources became activities of special public interest. * On the location of the future source for the RWSS of Montenegrin coast, Bolje sestre, there are no natural resources under special protection. * The Law on National Parks stipulates, inter alia, that in the areas under special protection: Due to erosion, torrent and flood protection it is prohibited to perform facility construction or other civil works at the waterways and land, which could affect the quality, quantity, spatial and time schedule of waters, for the purpose of water and power energy supply for the needs of the NP, and in the entire NP area. * As an exception to the above, the Law permits the construction of the facilities considered to be in the interest of the Republic, with the prior consent of the Government (Article 19).

3.1.12. CULTURAL HERITAGE Cultural and historical heritages represent an important segment of the NP Skadar Lake's resources. A great number of archaeological sites, fortresses, monasteries, and examples of authentic local architecture are located on Lake's shores and islands, and date from various periods in history. A rich archeological fund of the Skadar Lake basin comprises of many sites, insufficiently or completely unexplored, unprotected and without a scientific appraisal. The Skadar Lake region has not been systematically explored yet.

ITSC LTD. MONTENEGRO - OCTOBER 2006 55 ENVIRONMENTAL IMPACT ASSESSMENT STUDY ON REGIONAL WATER SUPPLY SYSTEM OF MONTENEGRIN COAST FROM WATER SOURCE BOLIE SESTRE Monastery complexes from the Middle Ages represent the most important religious buildings in the area. These are: Bogorodica krajinska, Starcevo, Beska and Moracnik in the Krajina archipelago, and St. Nikola and Kom Crnojevica on Ondrijska Mountain. During the reconstruction at the end of the last century, the values of these important monuments have been diminished due to the disrespect of conservation principles. The most exemplary fortresses in the NP are: Zabljak Crnojevica, Lesendro, Besac, Grmozur and Tophala, built in the central spots and of extraordinary strategic importance as a defence area during the wars between 14 th and 1gth century. Nowadays, these strongholds are completely neglected and overgrown with vegetation. The research activities at the fortresses, to date rare, if any, should be priority, due to the importance and the current condition of these monuments, as well as their professional and scientific appraisal.

The authentic local architecture, such as: old rural settlements, abandoned fishing villages, mills, and bridges, represent another Lake's special resource. These important ethnographic units lose their traditional appearance and beauty on daily basis due to inappropriate reconstruction and construction of new facilities. So far, little attention was given to the exploration of the specific architecture of these old villages; thus, there are no comprehensive studies that would provide basis for protection and conservation procedures. In the area of Bolje sestre, and its wider surroundings in Malo blato, there are no protected resources.

3.2. MONTENEGRIN COAST

The region of Montenegrin Coast covers the narrow strip between the shore and mountain chain of Orjen, Lovcen, Sutorman and Rumija Mountains. The mountaintops are at heights between 1200 and 1900m. The basic natural features of the coast include: relatively long seacoast, narrow shoreline, extremely steep mountain barriers in its immediate hinterland and Mediterranean climate. In geomorphologic terms, Montenegrin coast can be divided into three regions: The bay of Boka Kotorska - at its far northwest, Budvanska Riviera - as its central part, and Bar and Ulcinj at its far south east. These regions slightly differ in cultural and historical heritage, natural resources, biodiversity and town and industrial development.

The coastal area is the terminal tectonic unit of the outer Dinaric Alps. The system stretches in folds from southeast (Albania) and continues northwest. It is composed of stratified massive limestone, limestone dolomites and partly of clean dolomites. The area between Bay of Boka Kotorska and Budva is composed of cretaceous limestone; while between Budva and Ulcinj it is made of Triassic limestone. Palaeogene flysch zones, present mostly in Boka Kotorska, between Kotor and Budva, contribute to the complex geological composition and structure. Numerous sandy and pebble beaches (app.1 17), totalling 73 km, represent the main feature of the of the 293 km long coast. The coast is rather indented and has many inlets and bays, Boka Kotorska being the largest one.

ITSC LTD. MONTENEGRO - OCTOBER 2006 56 ENVIRONMENTAL IMPACT ASSESSMENT STUDY ON REGIONAL WATER SUPPLY SYSTEM OF MONTENEGRIN COAST FROM WATER SOURCE BOLJE SESTRE There are six coastal municipalities in this region: Herceg Novi, Tivat, Kotor, Budva, Bar and Ulcinj. Each of these municipalities' territories covers a part of the coastline as well as area naturally gravitating to the coastline, i.e. contact zone and functional hinterland. According to the last Census, from 2003, the area is populated with around 170.000 permanent residents. This number significantly increases in summertime, i.e. during the main tourist season. According to the data of the Ministry of Tourism, accommodation capacities total around 270 000. Due to numerous attractive tourist sites and main roads cutting across the area, the population density increases, and complex urban networks are being formed. Specific and limited construction possibilities and particular appeal of some areas caused small residential areas merge with nearby towns, centres, thus forming agglomeration of urban areas connected to the existing centres. As a result, all towns have more or less extended their territories, representing conurbations with significantly greater number of inhabitants (i.e. Herceg Novi - stretching from to , Kotora - from Muo to Ljuta, and Tivat - from Lepetane to Mrcevac). There are many separated lowland areas, aka. Fields, in the costal region (, Grbaljsko and Mrcevo Fields, Budvansko, Buljaricko and Barsko Fields and at the far southeast Ulcinjsko and Vladimirsko Fields). The most distinctive areas in the coastal region are wetlands with specific (halophyte and semihalophyte) vegetation. These wetlands are mainly found in the area of Velika Plaza beach in Ulcinj and , nearby Bojana Rive, and partly in Buljarica, Solila and Soliotsko Field. Saltpans or "Solila" are shallow coastal basins covered with salt and other minerals, representing specific bird habitats. These are located in the Bay of Tivat, near the Island of Flowers, and are candidate for the status of . Velika Plaza, another environmentally sensitive area, is a 12 km long sandy beach with a distinctive ecosystem. Montenegrin coast is a region with the Mediterranean climate, i.e. long, hot and dry summers, and moderately mild and rainy winters. During the winter, air depression develops over the entire Adriatic Sea basin. A number of cyclones moving from west to southeast and east and encompass southern European regions. These cyclones cause heavy precipitation at coast in winter. The areas with Mediterranean precipitation regime have autumn and winter precipitation, which culminate in the period from October to December. The summers in these areas are dry. In this Montenegrin region, around 10% of total annual precipitation falls during the summer, the rainiest month is November and the driest one July. Average annual precipitation is 1300-2500 mm. The precipitation decreases from the northwest to the southeast, and increases with the altitude above the sea level, totalling in some areas over 3000 mm per year. Average annual air temperatures are around 15-16 °C. July is the hottest (average 23-25 0C), and January the coldest month (7-90C). Due to water-permeable carbon rocks, the network of aboveground watercourses is rather poor, with the exception of Bojana River at the far southeast. Some parts of the coast (Donji , Krtole, and Lustica) have no aboveground watercourses whatsoever.

ITSC LTD. MONTENEGRO - OCTOBER 2006 57 ENVIRONMENTAL IMPACT ASSESSMENT STUDY ON REGIONAL WATER SUPPLY SYSTEM OF MONTENEGRIN COAST FROM WATER SOURCE BOLJE SESTRE The examinations of flora in the coastal region imply significant interdependence and mutual permeation of the endemic vegetation with numerous exotic plant species. Grassy surfaces include areas with specific Mediterranean meadows and pastures, mainly nearby Bojana River. Poor soil vegetation includes: macchia, various secondary and degraded shrub forests, and deciduous shrubbery. The forests encompass areas with the distinctive pinewoods. Special groups of forests are those growing in sand, on Ada Island and in the hinterland of Velika Plaza. The coastal region itself used to be the habitat of endemic Holm Oak forests, which have to date been significantly reduced in number, degraded to macchia, or completely cut down. Pubescent Oak and hornbeam prevail in the areas above 700 masl, and in higher areas Beech and Pinewood. In the lowlands, near Bojana River there are traces of hydrophilic Oak woods (Common and Pubescent).

Olive yards represent special and very significant form of land use, mainly in the terraced terrain. Besides occasional olive trees, olive yards are found along the entire coast. One of the greatest is the old olive yard in inlet. The protection of the plant species already under official protection is critical. The protected species include: Galium baldacci (Hal.) Ehrend, Colchicum hungaricum Janka, Daphne laureola L., Edraianthus wettsteini Hal. & Bald, Ephedra maior Host., Euphorbia dendroides L. Hermodactylus tuberosus (L.) Miller, llex aquifolium L., Ophrys fusca Lk., 0. aranifera Huds., 0. bertolonii Mor., 0. fuciflora (Cr.) Rehb., 0. bombyliflora Link, 0. apifera Huds., Orchis simia Lam., Pancratium maritimum L., Phagnalon rupestre (L.) DC, Quercus robur L. subsp. scutariensis C ernj., Ramondia serbica Pan c., Salvia brachyodon Vandas i Tulipa grisebachiana Pantoczek. The fauna of the narrow coastal strip, distinguished as the area covered with macchia and rocks, includes endemic Mediterranean species, especially the ones of insects (Mediterranean Papilio machaon), reptiles (Lacerta Oxycephala, Lacerta Melisellensis, glass snake, etc.) and a number of thermophilic pecies of song birds. As for mammals, jackals are characteristic for the area. The main industry in the Montenegrin coast is tourism. Moreover, tourism is also the strategic development objective of Montenegro. However, presently, the overall infrastructure cannot meet the needs of this region. Water shortages, especially in the summer tourist season, are major setback for the development of sustainable tourism. On the other hand, the share of agriculture is constantly reducing, with the exceptions of the municipalities of Ulcinj and Bar.

Considering the long historical tradition, the coastal region of Montenegro has rich cultural heritage, mainly concentrated within the strongholds of old towns (Kotor, , Budva, , Ulcinj). The area is also distinguished by a great number of cultural and historical monuments, found across the entire coast, and primarily including monasteries and sacred buildings. The detailed review of the maps of protected areas and species, of which the development had been supported by IRD, CHF and USAID (Appendix), showed that the pipeline route does not meet the protected areas, except in the areas of Becici, Buljarica, and Utjeha beaches. Environmental impacts on those areas have been analyzed in section 5.2.

ITSC LTD. MONTENEGRO - OCTOBER 2006 58 ENVIRONMENTAL IMPACT ASSESSMENT STUDY ON REGIONAL WATER SUPPLY SYSTEM OF MONTENEGRIN COAST FROM WATER SOURCE BOLUE SESTRE It should also be noticed that the most environmentally sensitive areas in the coastal region, such as: area surrounding Bojana River, Salt Factory in Ulcinj and Solila near Tivat, will not be impacted by the construction of RWSS because the pipeline route does not go through those areas. The RWSS concept itself entails water distribution up to the connection points with the local water supply systems, without entering in the urban areas. The pipeline route to the connection point for the future tourist complex at Velika Plaza beach for the most part follows the main road to Ulcinj and has no significant environmental impact.

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4. SOCIOLOGICAL PART OF THE STUDY This Study gave due attention to its sociological component, i.e. positive and potential negative project impacts on population. Accordingly, we have established contacts with the non-governmental organizations (NGO) in Montenegro, and at the same time held public meetings in Dodosi village. The meeting minutes were kept, and residents received questionnaires that included all the most important issues related to the RWSS construction. Dodosi village had been chosen due to its geographic position, near the future water intake.

4.1. ORGANIZATION OF SOCIOLOGICAL RESEARCH Sociological part of the Study was carried out in five stages: I Stage: Formation of expert team, led by Mrs. Mirjana Popovic, Sociology Professor, the Faculty of Philosophy in Niksic. II Stage: Defining Programme of activities, preparing questionnaires for residents that might be affected by the project, as well as for NGO in Montenegro. III Stage: Meeting with NGO in Podgorica on October 14th, 2005. NGO received questionnaires, as well as the EIA study summary. The complete study was available in the offices of the Public Enterprise for water supply, wastewater treatment and drainage and solid waste disposal "Montenegrin Coast" in Budva. NGO had 10 days to submit their opinions about the study. IV Stage: On October 14th, 2005, meeting with local residents was held in Dodosi. The EIA study was presented, and in the discussion that followed both the benefits of the project and its potential impacts were reviewed. All issues were explained and all questions answered. At the end of the meeting, questionnaires were delivered to local residents, who had two weeks to fill it out and submit it. V Stage: After data collecting from the meetings' minutes and questionnaires, the elaboration on sociological aspect of the EIA study was prepared.

4.2. RESEARCH IN THE VILLAGES NEIGHBOURING THE FUTURE WATER INTAKE The data for the sociological analysis were collected in Dodosi village, using questionnaires concerning the issue of RWSS (water intake) construction in the Skadar Lake area. The implementation of project would provide long-term solution to the water supply problem the coastal region of Montenegro struggles with for decades. In Dodosi village, encompassing Zabljak village - the nearest to the Boije sestre water source, the average age structure of interviewees is 35 to 41.

ITSC LTD. MONTENEGRO - OCTOBER 2006 60 ENVIRONMENTAL IMPACT ASSESSMENT STUDY ON REGIONAL WATER SUPPLY SYSTEM OF MONTENEGRIN COAST FROM WATER SOURCE BOLUE SESTRE The gender structure is homogenous. 50% of interviewees live in an extended family, i.e. households with 5, or more members (25%). Main source of income for 25% of interviewees is fishing, thus for 67% of them Lake is the most important natural resource. The same percentage (67%) of the interviewees holds that those resources are untapped. The positive opinion of the population on the project is deductible from the following answers: 84% of interviewees hold that project implementation will improve sanitary and epidemiological situation in the area, while 50% of them believe that they will be protected from the potential negative impacts. 67% of interviewees believe that theirs and the position of their local community will be in some segments improved. 67% of interviewees feel that implementation of the project will contribute tourism development in the area. 58% of interviewees believe that their daily routine of the population will not change due to project implementation. The residents of this village have undoubtedly recognized the project on the construction of RWSS as an opportunity to gain some benefits (roads, electricity, local water supply system, new employment opportunities).

TABLE 4-1 OVERVIEW OF THE STATISTICAL DATA FOR DODOSI VILLAGE

Issue Dodosi Number of inhabitants 53 Permanent residents 40(75%)

Age (year) 40-60 61 and more Age Structure Age (%) 65 35

Sex Men Women Gender Structure % 100 0

Number 5 6 and more Number of household members % 50 50 Resources Lake Main natural resources % 67 Source Fishery Pen. Ind. Agri. Income sources 2 %25 17 25 17 Answer No Yes Have you been informed on the project 50 50

ITSC LTD. MONTENEGRO - OCTOBER 2006 61 ENVIRONMENTAL IMPACT ASSESSMENT STUDY ON REGIONAL WATER SUPPLY SYSTEM OF MONTENEGRIN COAST FROM WATER SOURCE BOLJE SESTRE Answer Insufficient Yes Exploitation of the natural resources 87 33

Answer No Yes Do you comply with environmental standards 67 33

Is the Government's policy on natural resources Answer No Yes exploitation precisely defined % 50 50

Will local population be protected from noise, dust Answer No Yes and similar inconveniences %50 50

Answer Yes Will your family benefit from the project % 67

Answer Yes Will your community benefit from the project % 67 Answer No Yes Is Lake navigation jeopardized % 83 17 Answer No Yes Will there be any impacts on tourism % 33 67

Did you witness any project in the past that had Answer No Yes negative impact Percentage (%) 75 25

Will sanitary-epidemiological circumstances Answer No Yes improve 16 84

4.3. NGO OPINION

Questionnaires and Summary of the project on the construction of RWSS were sent to all NGOs dealing with environmental protection issues, so they could provide their opinions and remarks on the project. Interested NGOs had 10 days to so. The initiator of the project received reply from one NGO - The Society of Young Ecologist of Niksic, dealing with the protection and improvement of environment. The activists from this NGO recommended paying special attention to dust control during the construction, as well as means of transportation of the waste (covering transport vehicles tarpaulin; cleaning access roads frequently, etc.). The Society of Young Ecologist of Niksic stated that this project does not have significant environmental impact on the National Park Skadar Lake.

ITSC LTD. MONTENEGRO - OCTOBER 2006 62 ENVIRONMENTAL IMPACT ASSESSMENT STUDY ON REGIONAL WATER SUPPLY SYSTEM OF MONTENEGRIN COAST FROM WATER SOURCE BOLJE SESTRE 4.4. CONCLUSIONS From sociological point of view, Boije sestre water source is a good solution for the construction of the water intake for RWSS. The residents of villages neighbouring the source (Dodosi) have recognized numerous benefits they would gain from the implementation of this project. It is recommended for the initiator of the project to establish regular contact with them. NGOs have expressed positive opinion on the project implementation, so their cooperation in it is expected. The project on the construction of RWSS for Montenegrin coast has been recovered in 2005 and 2006, and PEW, engaged as implementation unit, intensified the campaign as well as cooperation with relevant institutions and local waterworks, with the aim of providing "no objection" and support for the project. A round table was hold on the Water Fair (May 8 - 11, 2006) in Budva where the RWSS Project was presented in detail (Design, Cost/benefit analysis, draft EIA Study, etc). In the same time presentation at Montenegrin academy of Science, was organized on the request of the Ministry for Environmental Protection and Urban Planning. The meeting with Skadar Lake NP expert advisory board was organized on November

7th, 2006 with the main subject presentation of the envitomental impacts of the RWSS project on the area of Skadar Lake. Public Enterprise National Parks, reviwed the RWSS project documentation (designs, investigations results, draft of the EIA, etc.), made opinion that project implementation will not have negative impact on Skadar lake basin and issued the official approval for the project. National television of Montenegro prepared and broadcasted TV special on RWS Project, on November 30, 2006. The Law procedure of incorporating Boije sestre spring as the water intake for the RWSS into the Special Plan requires the public consultation. This process has already commenced started from September 2006, and it is carried out by the Ministry and consultant engaged for this assignment. After the various presentations of the project based on its environmental and economic aspects have been hold, it can be conclude that the project enjoys significant public support in providing long-term solution for the water supply of the coastal region of Montenegro, which will not endanger environmentally sensitive area of Skadar Lake due to foreseen environmental protection measures.

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5. ENVIRONMENTAL IMPACTS

5.1. PROJECT IMPACTS ON THE SKADAR LAKE BASIN This section will analyze the impacts of the RWSS project on the basin of Skadar Lake. The segments where the impact is quite significant for the area of Malo Blato as a part of Skadar Lake, or for the Boije Sestre spring as a water intake, are appointed.

5.1.1. IMPACTS ON WATER REGIME Miirldhf 6tfliA*64166 b tllroigi ESiinWvd. isbdiei oW56f

XWater quantities to be exploited for the water supply system with the water intake at the source overflow will not exceed more than 50% of the total capacity of the Boije sestre water source. These capacities are insignificant when compared to the overall regime of Malo blato and Skadar Lake as a whole. Considering the water regime of Malo blato, recharged with water from a great number of sources and underwater springs, it may be concluded that there are no negative impacts on the Lake. Water demand is the highest in the summer periods, in July and August, around 13001/s. The estimated total consumption for that time period is 6894 x 106 m3 . The impact of water intake for the water supply system (1500 I/s) on the Skadar Lake water balance can be observed through: * The lowest volume of Skadar Lake * The mean volume of Skadar Lake * The maximum volume of Skadar Lake * The total discharge of Skadar Lake The lowest registered water level of Skadar Lake was 4.53 m.a.s.l., measured on September 18, 1952. In general, low water level regime last very shortly, mostly during September. The average lowest water level is 5.21 m.a.s.l., while the volume of Skadar Lake in these conditions totals 1.92 x 109 m3 . Water demand totalling 6894 x 106 m3 in August and September represents 0,03 % of the total Lake volume. Considering the Lake's depth, the exploitation will reduce its water level up to maximum 2 mm calculated based on m.a.s.l. During the year, the water level of the Skadar Lake varies from 5 to 10 m.a.s.l. which means that the reduction of the water level for the maximum 2 mm due to construction of the RWSS will not affect the environment. The mean Skadar Lake water level is 6.76 m.a.s.l. , with the total volume of 2.56 x 109 m3 . The consumption of 1300 I/s in mentioned summer periods represent 0,026% of the total lake volume.

ITSC LTD. MONTENEGRO - OCTOBER 2006 64 ENVIRONMENTAL IMPACT ASSESSMENT STUDY ON REGIONAL WATER SUPPLY SYSTEM OF MONTENEGRIN COAST FROM WATER SOURCE BOUE SESTRE In relation to the mean long-term high water level, the volume of water exploited during the two months represents 0,019% of the Lake volume, while the three months exploitation at maximum capacity represents 0,02% of the total Lake volume. In relation to the total amount of water discharged from the Lake through Bojana River, at the mean flow of 323 m3/s, the total volume of discharged water per hydrological year is 10.186 x 109 m3. In relation to this volume, the volume of exploited water during the two months represents 0,006%, and 0,001%. The presented analysis shows that water exploitation has insignificantly low participation in the total balance of Skadar Lake. As for the water source itself and Malo blato area, the percentages of captured water do not whatsoever affect the water balance of these locations. Namely, the source has minimum measured capacity of 2,34 m3/s, and in the period of maximum exploitation (July - August) it is around 2,5 to 3 m3/s. That practically means that in the final phase (system capacity of 15001/s) in the summer periods, app. 50% of available water quantities will be captured at the source, while the rest will discharge into Malo blato. In the rest of the year, this percentage is significantly lower, and in the winter periods it is estimated to be below 10% of the source capacity. As for Malo blato, the minimum measured flow of its outflow Bisevina River is around 5,65 m3/s, and during the maximum source exploitation period it totals 6 to 8 m3/s. In the winter periods this flow is much higher. Thus, during maximum source exploitation, in July and August, 20 to 25 % of the water recharging Malo blato is captured, while in the winter this percentage is less than 1%. All above mentioned calculation regarding the water quantities have been made for the hydrological minimum of the year, which is on September and October. However, taking in consideration the fact that the maximal exploitation period of the RWSS will be in July and August the level of environmental impact decreases significantly. As for the thermal regime, the impact of water exploitation at the source Bolje sestre on temperature increase of Malo blato may be considered insignificant. The temperature of the water source (11-14°C) reaches the Lake temperature in its immediate surrounding due to the inflow of Lake water. After the water intake construction, where the water will be captured at the overflow solely, only the closest source area will be affected by the project.

5.1.2. IMPACT ON NEIGHBOURING COUNTRIES Considering the insignificant impact on the Skadar Lake regime, but due to the fact that Skadar Lake is an international lake, shared by Montenegro and Albania, all issues will be settled in the direct communication of the two countries.

ITSC LTD. MONTENEGRO - OCTOBER 2006 65 ENVIRONMENTAL IMPACT ASSESSMENT STUDY ON REGIONAL WATER SUPPLY SYSTEM OF MONTENEGRIN COAST FROM WATER SOURCE BOUE SESTRE 5.1.3. IMPACT ON WATER QUALITY Water will be used in the construction phase for the purpose of construction, site cleaning, concrete production, and for the personal needs of the construction workers. The water used during the construction is polluted with organic substances, suspended and sediment solids. During the operation phase, the significant amount of wastewater will be produced, i.e. sanitary water and wastewater produced due to regular cleaning and maintenance of the pressure pipeline and reservoir. Due to the distinctive pipeline route, the facilities foreseen at the pipeline are - air valves and emergency outlets. In cases of accidents, emergency outlets discharge water into the Lake. However, the potential accidents at the water intake plant will not impair the water quality of the Lake, since the system transports higher quality water than the Lake's water. Though the supply of additional potable water to the towns at the Montenegrin coast will have positive impact on the entire region, since the water shortages are significant.

5.1.4. IMPACT ON AIR QUALITY

One of the main problems in the construction phase is the production of dust due to heavy traffic, excavation works and concrete production. Exhaust gases from the machines (trucks, diesel machines, compressors, elevators etc) will have impact on the air quality. These gases contain C02, CO, NOx and sulphur oxides and other organic fuel combustion pollutants. Noise produced by construction machines cannot be prevented, but since there are no settlements in the close surrounding area of Bisevina-Bolje Sestre water source, this type of impact can be considered insignificant.

5.1.5. IMPACT ON SOIL QUALITY

The plant construction might have impact on the soil stability due to landslides and erosion. Soil quality, however, will not be changed due to proper mitigation measures. Waste production is significant in the operation phase, but the soil will not be polluted since the waste will be disposed at the city landfill. The treated water is good quality and contains no toxic substances, thus the potential waste sludge at the water intake will not contain any toxic substances either. On the water intake will be installed UV disinfection, which do not produse any waste materials during the operation. In chemical terms, the sludge will be stable. Estimated sludge quantity is small and will be disposed at Podgorica city landfill.

5.1.6. IMPACT ON POPULATION HEALTH Since there are no settlements in the area surrounding WPF Bolje Sestre, there will be no negative impacts on population health.

ITSC LTD. MONTENEGRO - OCTOBER 2006 66 ENVIRONMENTAL IMPACT ASSESSMENT STUDY ON REGIONAL WATER SUPPLY SYSTEM OF MONTENEGRIN COAST FROM WATER SOURCE BOLJE SESTRE Previously described impacts on water, air and soil during the construction and operation phases will be properly mitigated so as to avoid any public inconvenience. The present water shortage makes life difficult to the population, while its health is at risk due to the consumption of unsafe water. Positive impact of WPF, due to excellent quality of water that will be supplied with the future water supply system, is that it will create preconditions for population health improvement, especially in some municipalities at the Montenegrin coast having considerable difficulties with the water quality at present (Kotor, Tivat, Ulcinj). One of the significant positive impacts is new job opportunity in this area.

5.1.7. IMPACT ON ECOSYSTEM The construction sites intersecting rivers, lakes and surrounding wetland areas might affect natural waterways and thus the aquatic habitats, especially during the construction phase. Changes in the catchments area might also be detrimental for the natural waterways. Inconveniences related to the new plant or its construction in the environmentally sensitive areas, i.e. wetlands or river channels, may temporarily or permanently influence the fauna and flora. During the construction, the existing vegetation will be cut, and after the pipeline installation this temporary occupied area will be replenished with land and grass inseminated. Air pollution and production of dust deposits might seriously impair plant communities and their habitats, while noise might cause breeding birds to relocate. However, these impacts are temporary. Though Skadar Lake is a place famous for nesting of numerous bird species (more than 270 species), and that some of them are endangered or rare, Boije sestre location is not marked as a protected bird habitat or nesting site. Therefore, the construction of the plant itself does not pose a threat to the wellbeing of the bird population in the nesting season, when these populations are most sensitive to noise. The greatest part of bird species is located in Hotski Gulf, under legal protection, in the northern part of the Lake, will not be affected by the project, since the pipeline passing through the Lake basin will not intersect this area. The most significant impact on the ecosystem is caused by the landscape changing. Lining the pipeline on the lake bottom will decrease this impact in the area of NP. Lining the pipeline on the lake's bottom will cause the impact on ichthyofauna, but this impact is only temporary. The ichthyofauna of the Skadar Lake is qualitatively very poor, but from the quantitative aspect very rich, and exploitations of fish is very intensive economic activity. However, the Skadar Lake is very productive environment and if so intensive fishing doesn't have significant impact on the fish population, it can be concluded that the lining of the pipeline on the lake's bottom will not cause any significant impact also. Another indirect impact is hunting of wild animals or disturbance of the construction workers during the construction. This might affect some species and cause decrease in the diversity of this area. Animals living the site will permanently leave this area.

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foreWbeeitactfi ? lt During the operation phase, there will be no important impacts on animal and plant life. Summary of potential water source impacts: * Construction of infrastructure facilities would considerably affect the bird population, if followed with loud noise during the construction works, while later on during the exploitation process, the noise would be limited to the closest facility surrounding. It should be noticed that the construction of submersible pumps - almost completely silent when operating- is foreseen within the borders of the water intake. * Water exploitation undoubtedly causes certain decrease in water level, but considering the location of the source this impact will exert only in the hydrologic minimum, since during the rest of the year the source is submerged with Lake water. As the immediate water source surrounding is cretaceous with shrub vegetation, the decrease in water level will affect only the water ecosystem, while the closest source surroundings will be permanently lost. However, the water source is not known for significant fish resources or vegetation that could be affected by the RWSS construction. * Installation of pipelines through the submerged areas covered with canes, willow woods, coastal meadows and macrophyte vegetation, being nesting and breeding sites of numerous species, will significantly affect the ecosystem. However, this impact is temporary and exists only in the construction phase. The project foresees the pipeline construction mostly along the existing roads and rail lines, and partly at the bottom of the Lake and lakeshore wetland area, in the area stertching from the source, east of Malo blato to the closest connection with the road infrastructure. Since the pipeline wuill be partly submerged and buried in the wetland area, the quick recovery of the ecosystem is expected.

5.1.8. POTENTIAL NEGATIVE POOR MANAGEMENT IMPACT After starting up the water treatment plant operation, there is a possibility of personnel's unprofessional work, i.e. poor management. Due to the good raw water quality (low concentration of suspended solids and low turbidity), wastewater quantities can be considered negligible. The project foresees septic tank, maintained by the local personnel. Wastewater drainage from the water intake will be conducted over the access road to the plant, which does not pass through the populated areas, and further along a short section of the local road to the highway, and then to the wastewater treatment plant in Podgorica.

ITSC LTD. MONTENEGRO - OCTOBER 2006 68 ENVIRONMENTAL IMPACT ASSESSMENT STUDY ON REGIONAL WATER SUPPLY SYSTEM OF MONTENEGRIN COAST FROM WATER SOURCE BOL]E SESTRE Special vehicles must transport the wastewater, in order to reduce the impact on the population as much as possible. 5.1.9. IMPACT ON POPULATION, ITS DENSITY AND MIGRATIONS Starting up the WPF will have a great deal of positive effects on the coastal region of Montenegro. WPF will provide good water quality and improve living condition for the coastal areas and the villages surrounding the WPF. During the plant operation, there will be certain impacts on the surrounding area, but the strongest of all is the social impact that will result in the full employment of the local population. Possible inconveniences to the local population are: * Obstruction of local traffic * Damages to the local properties Since the area surrounding the source is uninhabited and the construction of an access road is necessary, the obstruction of the local traffic will take place only in the section of the local road that will be used for connecting the access road to the highway. Area surrounding the local road - leading to Grbavci village - is scarcely inhabited. The local road is currently used for transportation of the sand exploited from the Moraca River shores. Thus, these negative impacts will be temporary and negligible, considering the present use of the stated road section.

5.1.10. IMPACT ON TOURISM The future water intake impact on the overall tourism development of Skadar Lake is negligible. The fact that Skadar Lake does not possess a central tourist attraction on which the tourism development quality of the entire National Park Skadar Lake would depend on, will significantly alleviate the impact of the foreseen water intake. In other words, within the National Park area there are sites that could inspire tourist visits and provide the basis for the tourist product development. The area of Bolje sestre water source - as well as many other sources of Malo blato - is accessible only by small boats and does not represent an important part of the tourist offer of the NP Skadar Lake. Other sites have developed more value added tourist programmes. The area of Boije sestre is nowadays rarely visited, with the exception of the local population who visits the source due to its water quality and former belief that the water of the source has curative powers. The WPF construction will have significant positive impacts on the tourism development in the area due to the provision of new infrastructure - primarily the access road and electrification. The construction of the access road will make the area rich in water sources easily reached particularly from Podgorica - the most densely populated region of Montenegro and the area of the utmost development growth - thus creating tourism growth prospects.

ITSC LTD. MONTENEGRO - OCTOBER 2006 69 ENVIRONMENTAL IMPACT ASSESSMENT STUDY ON REGIONAL WATER SUPPLY SYSTEM OF MONTENEGRIN COAST FROM WATER SOURCE BOUE SESTRE As for the construction phase, the installation of pipeline will exert significant impact, especially since it will be installed along the transportation infrastructure for the most part. For that reason, a special attention will be given to the pipeline construction dynamics. In order to alleviate the impact on transportation as much as possible, it is necessary to avoid the tourist season. On the other side, the installation of pipeline along the shoreline and at the bottom of the Lake in the area of Malo blato must be performed in the dry period overlapping with the tourist season.

5.1.11. IMPACT ON LAND USE AND MANAGEMENT Using land for the purpose of RWSS construction will affect local fishing and hunting, as well as recreational activities of the population and visitors. This impact will be maximized during the pipeline installation in the area of NP. However, this impact is temporary. The water intake construction on these activities is negligible. Some construction works regarding the regional water supply system will have to be carried out on the private land. It has been estimated that the total size of the private land to be acquired will be 1, 5 ha, divided as follows: * -Water intake "Bolje sestre" at Skadar Lake/Podgorica Municipality - 1 ha, * -Access road to the water intake and reservoir "Bratica" in Ulcinj - 0, 5 ha, All other compensations are related to the so-called temporary expropriations (former licenses that were granted have been expired), or the right to install pipeline that will cover app. 2 ha on the pipeline route from the water intake "Boije Sestre" to the reservoir "Djurmani" and from the reservoir "Bratica" to Ada Bojana Island in Ulcinj, where certain temporary expropriations through olivewoods is expected. The exact extent of the works on the private land will be known upon completion of the final designs. At this stage, no demolitions are foreseen.

5.1.12. IMPACT ON INFRASTRUCTURE

In the construction phase, impacts on communal infrastructure may be considered a nuisance to the local population: the obstruction of local traffic (possible road blockages due to the great deal of vehicles needed for construction) and damages of local properties (possible pollution of the existing roads or their destruction). Operational phase includes the construction of new water supply system. All towns in the coastal region of Montenegro have separate sewage systems. Since the local systems are being reconstructed, additional quantities of potable and wastewater will not have particular negative impacts on water distribution to the main consumers. The issue of wastewater discharge into the sea without prior physicochemical and biological treatment remains present..

ITSC LTD. MONTENEGRO - OCTOBER 2006 70 ENVIRONMENTAL IMPACT ASSESSMENT STUDY ON REGIONAL WATER SUPPLY SYSTEM OF MONTENEGRIN COAST FROM WATER SOURCE BOLUE SESTRE The construction of transmission main and other facilities of the future water supply system also include the following: in dry, only partly flooded terrain, the pipeline route is buried in the soil, without any environmental impact; the pipeline section in the constantly flooded terrain is buried in the existing ground at or below the level of the ground; the pipeline sections along main roads dug in "shoulders" or special concrete boxes in the road structure, thus without any impact on the traffic regime after the pipeline construction. The impact in the construction phase related to the traffic obstruction is unavoidable, but reasonable and acceptable, too, considering the extent of the project scope and benefits, and the implementation of the mitigation measures given in the section 6.2.8. of this study. All the facilities and pipeline of the future RWSS will be located outside the protected areas, with the exception of those constructed in the Natural Park Skadar Lake area.

5.1.13. IMPACT ON NATURAL AND CULTURAL HERITAGE There is a number of evidence about natural, archaeological and historical monuments in this region. The project foreseen pipeline route as well as the water intake site itself will have no impact whatsoever on the protected facilities. In addition the pipeline route in the NP area mainly runs along rail lines and highway. In case of any archaeological monument discovery, the construction works will be suspended and the Republic Institute for the protection of the cultural monuments informed on the discovery, as stipulated by law. The construction works will be continued according to the instructions of the Institute.

5.1.14. IMPACT ON LANDSCAPE FEATURES Landscape features of the local area will certainly be altered due to water intake facility construction. The main features of the area are its limestone origin and short vegetation, and architecture design of the water intake and other facilities should fit in with it.

5.1.15. OTHER IMPACTS The source electrification and its environmental impact is another project segment worth mentioning. The electric energy will be supplied from the electromagnetic system a few kilometres away from the water intake, located in the hinterland of NP, meaning from the area of village in the Zeta Valley. This activity entails construction of the power- transmission line from the power distribution station of "Elektroprivreda Crne Gore" to WPF. The route of the overhead power-transmission line will follow the road infrastructure and winding up the access road to the WPF, where power sub-station will be located. Thus, only the power sub-station will be located in the environmentally sensitive area of NP, more precisely within the WPF itself.

ITSC LTD. MONTENEGRO - OCTOBER 2006 71 ENVIRONMENTAL IMPACT ASSESSMENT STUDY ON REGIONAL WATER SUPPLY SYSTEM OF MONTENEGRIN COAST FROM WATER SOURCE BoLUE SESTRE The construction of the power-transmission line will comply with the construction standards determined by Power Supply Company of Montenegro. Harmful substances, for example, asbestos, and the use of PBC in the new power transformer must be eliminated.

The construction of the access road to the WPF at Bolje sestre water source, the biggest facility aside from WPF itself, has negligible impact on the NP area. Moreover, the access road does not stretch across the NP area, except in the entry section to the WPF area where it joins the internal road. Its construction is planned along an old unsprayed road that is no longer in use. So, even though the terrain is rocky, there is no need for the use of explosives. The road foundation is good quality and requires only tarmac base.

The project foresees septic tank at the WPF, which will be maintained by the local personnel. Wastewater drainage from the water intake will be conducted over the access road to the plant, which does not pass through the populated areas, and further along a short section of the local road to the highway, and then to the wastewater treatment plant in Podgorica. Special vehicles must transport the wastewater, in order to reduce the impact on the population as much as possible. The road route cuts across the unpopulated area, and the limestone ground has almost no vegetation in the entire length of the road totalling app. 2 km. Besides WPF at the source and the pipeline route, the third and the last segment of the RWSS continental part is PS Reljici. The PS is located outside the central NP area, at its edge, and its environmental impact may be considered insignificant. The following features confirm this fact: * The facility location itself does not require any resettlement or demolitions; * The foundations of the facility are laid in the zaravni, thus no greater excavations are required;

* The facility is accessible by the existing rural road, thus there is no need for the construction of special road;

* Considering that there are no significant facilities in its vicinity, the construction of the PS Reljici will have no negative impacts on the outlook of the area.

5.1.16. SUMMARY OF REVIEWED IMPACTS

An assessment of the environmental impacts that may result from the construction and operation of the proposed RWSS has been made in reference to the baseline of the existing environmental situation. The emphasis is given to the likely significant environmental impacts, both adverse and beneficial. Temporary, short-term impacts and permanent effects are considered both for the construction and operational phases.

The summary presents the impact on the Boije Sestre source as the microlocation, impact on the Malo Blato (as a part of the Skadar Lake), and the area of NP Skadar Lake entirely.

ITSC LTD. MONTENEGRO - OCTOBER 2006 72 ENVIRONMENTAL IMPACT ASSESSMENT STUDY ON REGIONAL WATER SUPPLY SYSTEM OF MONTENEGRIN COAST FROM WATER SOURCE BoUE SESTRE The following table gives quick overview of all impacts connected with RWSS construction and operating.

TABLE 5-1 SUMMARY OF REVIEWED IMPACTS

Construction Phase Operational Phase Reviewed Environment Bolje Malo Skadar Boije Malo Skadar Sestre Blato Lake sestre Blato Lake

Water Regime 0 - - 0 Neighbour Countries 0 0 0 0 0 0

Water Quality - - - 0 0 0

Air Quality - 0 0 Soi0Qua - 0 O O °0 Po ulation Heaoth O O O O 0 0 Meteorological Parameters and Climate0 0 0 0 0 0

Ecosystem - - - 0 Population 0 0 0 0 0 0

Tourism - - - ++ ++ 0

Land Use and Management - - 0 0

Infrastructure - 0 - ++ 0 0

Natural and Cultural Heritage 0 0 - 0 0 0

Landscape Features 0 - - 0 0 Legend: O = no impact - = low negative impact - - = medium negative impact = large negative impact + = low positive impact ++ = medium positive impact ++ + = large positive impact Low and medium negative impacts are acceptable, but large negative impacts are not so, because they cannot be mitigated in any way and are undoubtedly environmentally disturbing.

ITSC LTD. MONTENEGRO - OCTOBER 2006 73 ENVIRONMENTAL IMPACT ASSESSMENT STUDY ON REGIONAL WATER SUPPLY SYSTEM OF MONTENEGRIN COAST FROM WATER SOURCE BoUE SESTRE 5.2. PROJECT IMPACT ON THE COASTAL REGION OF MONTENEGRO The project component relating to the coastal region of Montenegro entails the construction of: pipeline, pumping stations and reservoirs. It should be noticed that its most sensitive part - the construction of hydrotechnichal tunnel Sozina (4,2 km) - is already implemented and requires small-scale reconstruction that will be undertaken together by agreement with the company "Monteput", which uses this tunnel as the emergency tunnel of the transportation tunnel Sozina. Considering the state of the emergency tunnel, which is regularly inspected by Monteput, the reconstruction will be undertaken without using dangerous means, such as explosives, etc.

The constructed 38 km long pipeline between Budva and Herceg Novi, also the part of the system, with all the complementary facilities is now being used as a part of local water supply system by the public waterworks of the municipalities of Bar, Tivat and Herceg Novi. The activities that will be performed on the stated facilities include maintenance and reconstruction and will have no significant environmental impact. It should also be noticed that the most environmentally sensitive areas in the coastal region, such as: area surrounding Bojana River, Salt Factory in Ulcinj and Solila near Tivat, are not included in the project. The RWSS concept itself entails water distribution up to the connection points with the local water supply systems, without entering urban areas. The pipeline route to the connection point for the future tourist complex at Velika Plaza beach for the most part follows the main road to Ulcinj and has no significant environmental impact.

The construction of the stated pumping stations and reservoirs, with the central reservoir "Djurmani" - with the greatest capacity - already being constructed, will have no environmental impacts, except during the construction phase. The project places these plants outside urban areas at higher altitudes above the sea level in order to provide financially and technically reasonable water distribution to the local waterworks. Occasional inspection and operation of these facilities will not cause increase in the noise level nor the dust production.

5.2.1. CONSTRUCTION PHASE In this section it is necessary to indicate the volume of the foreseen works. Activities on building of new and widening of the existing roads will cause significant terrain changes and disturbance. This impact particularly reflects in the creation of preconditions for the erosion process development by "opening" the terrain. In order to protect both, environment from erosion and pipeline from lying bare, it is necessary to provide the planting of the appropriate vegetation, with the professional assistance. The provision of vegetation cover at the foreseen land surfaces should give good results in eliminating the destructive effects of precipitation and their rapid drainage, and thus preventing the soil erosion.

ITSC LTD. MONTENEGRO - OCTOBER 2006 74 ENVIRONMENTAL IMPACT ASSESSMENT STUDY ON REGIONAL WATER SUPPLY SYSTEM OF MONTENEGRIN COAST FROM WATER SOURCE BOUE SESTRE Though installation of pipeline requires their burying, a certain amount of excess material will remain, and it must be removed and disposed at the appropriate landfill. It will not be allowed to accumulate solid waste on site too long. Solid waste, such as: wood, paper, glass, plastic and rubbish, will be properly collected, separated, stored, and disposed at the sanitary landfill. Residual soil (the remainings after works have been completed and the pipeline properly buried) will be disposed at the landfill for soil material. A part of the pipeline that will be built mostly follows the main road. However, in the section of the route, foreseen to avoid urban areas because of the activities such as: channel excavation, pipe lying, burying, access roads constructions, etc., the ecosystem will suffer significant changes. Reptiles and small mammals will temporary lose their habitats. As the construction concept itself requires the burying of the water pipelines, after the construction phase it is necessary to recover the previous landscape in a greatest possible degree, which might entail planting of the appropriate vegetation. The construction of the system will have significant impact on transportation infrastructure. The construction machinery will cause the increase in dust production and noise level. Therefore, it is important to perform all the construction work in the low tourist season, in order to increase the construction site safety, which is difficult to maintain in the peak summer season when the population number largely increases. Noise and dust will exert impact on the local population living near the pipeline route area. Maximum construction dynamics is extremely important so as to reduce the time of the negative impacts exertion. The detailed review of the maps of protected areas and species, of which the development had been supported by IRD, CHF and USAID (Appendix), showed that the pipeline route does not meet the protected areas, except in the areas of Becici, Buljarica, and Utjeha beaches. In all the other sections, the pipeline route follows the main road. This is particularly important for the pipeline for the water supply of Velika Plaza beach area in the municipality of Ulcinj. In this way, the sensitive area will not be jeopardized, and construction activities will have to be implemented in accordance with standard environmental procedures, defined by this Study. In the Becici beach area, the installation of pipeline will depend on the conditions of sandy beaches. The route foreseen for the pipeline installation follows the stone- paved walk. Before pipe laying the stones will be removed, and after the burying of the pipeline returned to the previous place. This area is marked as a habitat of the protected species Euphorbia dendroides L. - Tree Spurge. This is a deciduous shrub, large-crowned with short brushwood-like branches, 3 to 5 m tall. The tree bark and branches are brown to red-brown, and contain milky sap. In the local geographical and climate conditions, this species presents an extremely interesting phenomenon. Namely, the plant grows leaves in the beginning of the autumn, and flowers in the winter, while in the spring and summer it is leafless.

ITSC LTD. MONTENEGRO - OCTOBER 2006 75 ENVIRONMENTAL IMPACT ASSESSMENT STUDY ON REGIONAL WATER SUPPLY SYSTEM OF MONTENEGRIN COAST FROM WATER SOURCE BOUE SESTRE Before the commencement of construction works, it is necessary to consult experts on whether the works will have impact on the plant's habitat. If the specimen is found, it is necessary to properly and temporary relocate it until the works are completed. This should be done with professional assistance of the Republic Institute for nature protection.

The Buljarica beach as an undeveloped area represents the potential for the future tourism development of Montenegrin Coast, therefore the pipeline installation must comply with the future physical planning requirements. Public enterprise "Morsko dobro" is in charge of the areas of Buljarica, Becici and Utjeha beaches, so all the planned works must be in accordance with the terms and conditions of the enterprise. 5.2.2. OPERATIONAL PHASE

The operational phase of the RWSS relates to both, the coastal and the continental part of the system. Since the subject refers to the water supply pipeline, the environmentally sensitive segment of its operation is the cleaning phase. The pipeline design foresees mechanical cleaning. Pipeline cleaner is a device covered with sponge and soft rubber, and is carried through the pipeline by water, thus removing the potential sludge at the inner side of the pipe wall, formed due to sedimentation of suspended and other solids. The cleaning procedure contributes to the water quality in the system as well as to the operational capacity of the system, the latter having advantage over the former.

During the pipeline cleaning process, the water pumped into the system must not be chlorinated so that when discharged it would not be too chlorinated. The sludge quantities bore by this wastewater depend on the cleaning frequency. The locations of the sludge outlets are designed so as to follow the configuration of the terrain with the aim of their draining and cleaning. The system of sludge outlets enables pipeline drainage due to accidents as well as regular maintenance of the system. The sludge outlets are foreseen in each pipeline section, close to the recipient.

Features of these wastewaters, since no chemicals will be used in the potable water production or during the system cleaning, meet the standards for waters that can be discharged into both natural recipient and sewage network. However, due to quantities of this wastewater that will be produced, sludge outlets must be connected to sewage network. As the pipeline project is over 15 years old and requires review in certain segments on the Montenegrin coast, it is necessary to accommodate sludge outlets' connections to the existing sewage network. Poor management and inconsistent operation of the system could cause the overflow of the water at the reservoir Djurmani. In that sense the design foresees the unique control and management system, which will assure full protection. Extraction of water from the other part of the system will not produce environmental implication because of the very high quality of water and because the amount of water that could be extracted is not risky.

ITSC LTD. MONTENEGRO - OCTOBER 2006 76 ENVIRONMENTAL IMPACT ASSESSMENT STUDY ON REGIONAL WATER SUPPLY SYSTEM OF MONTENEGRIN COAST FROM WATER SOURCE BOLJE SESTRE Other impacts of the system in its operational phase include occasional impacts of system maintenance, which will be negligible if conducted in accordance with the construction recommendations given in this Study. 5.2.3. IMPACT ON LOCAL SEWAGE SYSTEMS For the supply of additional water quantities from the RWSS, certain interventions must be made on the local sewage systems. These systems would require significant investment nonetheless. The priority measures are given in the Master Plan for the sewage system solutions in the coastal region of Montenegro, prepared by consulting company "DHV", Holland, 2003. Some funds for the implementation of a part of the measures have already been provided, and the preparation of the implementation is underway. The following text provides the priority measure to be implemented by the RWSS completion, aimed at alleviation of the additional water quantities supply impact on the Montenegrin coast. * Ulcinj - the construction of water supply system and collector at Velika Plaza beach, as well as sewage system extension up to Velika Plaza; the construction of the WWP, first phase for the city of Ulcinj; * Bar - the construction of submarine outlet in , in the length of L=1500m, DN 300mm in diameter; the sewage system expansion in order to include settlements Toplica, Stari Bar, Susanj, Sutomore and Canj; * Budva - the reconstruction of the existing submarine outlets in Zavala, Sveti Stefan, Petrovac, and division of sewage between storm and faecal; * Kotor - this city has developed sewage system with submarine outlet in the open sea; the construction of WWP is foreseen in the near future; * Tivat - the connecting of the sewage system to the unique one of Kotor by the RWSS completion; * Herceg Novi - the reconstruction and upgrading of the sewage system in some parts of the municipality, where the system is worn out or missing, is foreseen in the first phase.

5.3. SUMMARY OF REVIEWED IMPACTS This section provides the elaboration of the solution with and without the water supply system. The future RWSS will certainly have impact on the surrounding area, but most of the impacts are related to the construction period, meaning they are only temporary. Table 5-2 provides the state of the environment without RWSS and with the future RWSS, and the summary of reviewed impacts, as well as some of the protection, reconstruction and monitoring measures.

ITSC LTD. MONTENEGRO - OCrOBER 2006 77 ENVIRONMENTAL IMPACT ASSESSMENT STUDY ON REGIONAL WATER SUPPLY SYSTEM OF MONTENEGRIN COAST FROM WATER SOURCE BOLUE SESTRE TABLE 5-2 POTENTIAL ENVIRONMENTAL IMPACTS, PROPOSED MITIGATION AND MONITORING MEASURES

Impacts Mitigation / Monitoring / Without the Project With the Project Assessment Changed water source NWRBHe Water regime No impact capacity leels

Irn adc4ancetal ,d Wat6ished mm t c6"RIUAJ o 6e

Neighboring countries No impact No impact

Constant pre-treatment monitoring; constant water Water quality Raw water quality Potable water quality parameters monitoring during and after the treatment

D ,exhaustgases, Modern machinery; Air quality No impact Dust,e periodical monitoring, only in the construction phase

Soil quality No impact No impact planning

Some local water sources have questionable water Population health Health disease Positive impacts quality and will be disconnected from the water supply network after the RWSS completion Meteorological parameters No impact No impact and climate

Preservation of species; their rehabilitation after the Vegetation Adequate water for Vegetation damaging construction phase, occasional vegetation monitoring

Decrease inthe population Preservation of species; Animal species Birds and fish habitats number of animal species occasional wildlife monitoring Population No impact Positive impacts Tourism Endangered Tourism development m NProvision of employment Employment No impact oporuiteopportunLt0es

ITSC LTD. MONTENEGRO - OCTOBER 2006 78 ENVIRONMENTAL IMPACT ASSESSMENT STUDY ON REGIONAL WATER SUPPLY SYSTEM OF MONTENEGRIN COAST FROM WATER SOURCE BOL1E SESTRE Land price decrease Next to the WTP site Land use No impact Land price increase Inthe surrounding area Watesuply sstem WTP performance

Infrastructure No impact improvement; impacts on road blockages and their construction phase devastation inthe construction phase Natural and cultural No impact No impact heritage

5.4. THE PROJECT BENEFITS Due to relative proximity of the project components, the benefits shall reflect in employment opportunities for and procurement of goods by local suppliers. The local economy will boost due to the procurement of necessary construction material, parts, etc. by the local suppliers. Concrete production material, such as gravel, will be supplied by the local suppliers (from the Moraca River valley). The rock fro the covering of the facilities (pumping stations, pipeline) will be exploited from certain site in the location area. New WPF will provide job opportunities in the construction phase. Around 20 different professionals will be temporary engaged. Around 12 experts will be permanently employed in the new WPF. To small communities, such as Zabljak and Crnojevica River with 40 to 70 inhabitants, new employment opportunities will be of significant importance, even though in relation to the average population age it is difficult to estimate the number of working age inhabitants. The assumption that 1/3 of the population is interested in new job opportunities would mean new employment for around 20% of the population. New employment opportunities will slow down the migration trends in this region (directed towards Podgorica and other big cities). The benefits of the RWSS of Montenegrin coast are long-term and of great importance for improving the stability of water supply services. Water quality improvement and new job opportunities are also major benefits. As for the Republic, the benefits reflect in the overall economic development - the increase in production capacities and economic growth, related to the increase in the population numbers in urban areas, which become more stable in terms of potable water supply. These benefits are up-to-date, long-term and of great importance. This project will have major positive impacts on the Montenegrin coast region, especially in terms of tourism development. Tourism is the main industry in Montenegro, due to enormous potential and capacity for tourism development primarily in its coastal region. Infrastructure development is the prerequisite for future tourism development of this region. Water supply improvement is very important, and together with road infrastructure, represents the priority in this respect.

ITSC LTD. MONTENEGRO - OCTOBER 2006 79 ENVIRONMENTAL IMPACT ASSESSMENT STUDY ON REGIONAL WATER SUPPLY SYSTEM OF MONTENEGRIN COAST FROM WATER SOURCE BOL]E SESTRE

Water shortages occur in many areas on the Montenegrin coast in summertime, when great many tourists are visiting the region. Moreover, the water is often poor quality, and does not meet stipulated potable water standards. In addition, many areas are not connected to the water supply system, and a significant number of them are still undeveloped in terms of basic water infrastructure. All the stated benefits make this project critical for further development of the coastal region of Montenegro. The RWSS construction will provide long-term solution to the problem as well as allow the development of the region in accordance with the Master Plan for Tourism from 2000. Apart from meeting water demands of the existing tourist facilities, it will provide preconditions for development of new ones. This particularly refers to the numerous undeveloped areas in the coastal region (Velika Plaza in Ulcinj, Buljarica beach in Budva, Donji Grbalj in Kotor, etc.), which have enormous tourism development capacities, impossible to develop without the water supply system development. The project will also have impact on wastewater issue. The additional 1000 and 1500 I/s of water will call for new investments in this sector as well. This particularly refers to the locations (mainly in the municipalities of Budva and Ulcinj) where the construction of significant tourist facilities is foreseen. Although the existing sewage system has capacity to receive certain water quantities during winter, the need will arise to expand these sewage networks and build wastewater treatment plants in the entire coastal region.

ITSC LTD. MONTENEGRO - OCTOBER 2006 80 ENVIRONMENTAL IMPACT ASSESSMENT STUDY ON REGIONAL WATER SUPPLY SYSTEM OF MONTENEGRIN COAST FROM WATER SOURCE BOUE SESTRE

6. ENVIRONMENT MANAGEMENT PLAN

6.1. IMPLEMENTATION OF MITIGATION AND MONITORING MEASURES In order to complete the construction of facilities successfully and conduct their efficient operation, the Environmental Management Plan (EMP) should have the following objectives: * Construction and operation monitoring; * Mitigation of negative environmental impacts; * Meeting all the environmental requirements, stipulated by the Environmental Law of the Republic of Montenegro and international organizations. Potable water quality will be analyzed in relation to the international and local standards, using up-to-date laboratory equipment that will be funded by the project. The following text provides elaboration on measurements of the quality of water that will be sampled before the water intake, in the WPF and at the very exit. Besides the training programmes within the project scope, the personnel will undergo trainings for work with the laboratory, water treatment monitoring, chlorination and other equipment, as well as trainings for other types of work, organized either by equipment suppliers or equipment maintenance contractors. In addition, the personnel will receive training in health and safety regulations, and for work with emergency equipment. The costs of mitigation measures will be included in the contract price and submitted by the contractor, who will implement necessary mitigation measures, in accordance with the contract. Malo blato is part of the NP Skadar Lake, but hinterland of the Boije sestre spring isn't. In that manner the management unit of the NP is obliged to conduct the serial ecological monitoring and in accident situation at the facility on the territory of NP. Monitoring is in the frame of their regular activities defined by the NP regulations. Public Enterprise of the NP, reviewed the RWSS project documentation (designs, investigations results, draft of the EIA, etc.), made opinion that project implementation will not have negative impact on Skadar lake basin and issued the official approval for the project.

ITSC LTD. MONTENEGRO - OCTOBER 2006 81 ENVIRONMENTAL IMPACT ASSESSMENT STUDY ON REGIONAL WATER SUPPLY SYSTEM OF MONTENEGRIN COAST FROM WATER SOURCE BoLJE SESTRE

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6.2. PROPOSED MITIGATION MEASURES

6.2.1. WATER REGIME Impact on the environment caused by using the water from the spring could be evident through the thermal water regime and amount of water which will be used for the project. Those parameters are the biological conditions which determinate the biological minimum. Considering the quantities of water captured for the needs of RWSS and Boije sestre flow volume, the biological minimum will be provided. The water intake itself, as defined by the Preliminary Design, will be constructed in such a way that the source will be fenced at its very mouth so to prevent the inflow of the Lake water, and the water will be captured at the source water overflow. This way the environmental impact of the project is limited to the very narrow area surrounding the source.

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6.2.2. WATER QUALITY The wastewater produced on site, such as communal water, will be collected and treated in the movable toilets with septic tanks. As for the wastewater generated from the concrete production (usually containing suspended solids) during the construction phase, an appropriate sedimentation tank or lagoon will be used for its collection and treatment before the drainage. Wherever possible, the treated wastewater will be reused for dust suppression. The construction workers will undergo basic training on pollution control in order to reduce on site pollution as much as possible. In the operational phase, wastewater will be generated during regular system cleaning. Since the raw water quality is excellent and does not require treatment, this water may be discharged into the natural recipient. However, taking into consideration the quantities of this wastewater, it is necessary to connect these outlets to the local sewage network. This would be preventing potential soil erosion.

ITSC LTD. MONTENEGRO - OCTOBER 2006 82 ENVIRONMENTAL IMPACT ASSESSMENT STUDY ON REGIONAL WATER SUPPLY SYSTEM OF MONTENEGRIN COAST FROM WATER SOURCE BOLUE SESTRE

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(iii) regimesaf the managem.ent and. monitoring iothe protqteq:?rea: T.reegjMiit, 16" 46V th$Sd I theJtrf l vth i eppected 4 arawhxd 4 0~ t6j4oaityi1at t a 1 r1e' ~Oe

6.2.2.1. MEASUREMENTS IN THE PLANT The continuous control of the water treatment process performance measurement is foreseen. The following measurements are foreseen in the plant: * Continuous monitoring process, and * Water quality monitoring. The continuous laboratory measurements of both raw and treated water are foreseen. The following parameters will be measured using on-site equipment: various water levels and flows, pressure, turbidity, pH, temperature, conductivity, chemical dosage, etc., while the results of these measurements will be automatically sent to the main computer as well as to the Plant Manager. Laboratory measurements will be carried out on daily, monthly and annual bases, with different number of measured parameters, in accordance with regulations. The treatment plant will have laboratories, both chemical and bacteriological, which will enable personnel to carry out routine water quality and treatment process controls. Plant laboratories will have equipment for performance of the following measurements: * Physical and chemical analysis: turbidity, pH, conductivity, hardness as CaC03, KMnO4 consumption, ammonia, sulphate as S04, chloride as Cl, nitrate as N03, nitrite as N02,calcium as Ca, iron as Fe, magnesium as Mg, manganese as Mn , oxygen as 02, total dissolved solids, suspended solids; * Microbiological analysis: coliforms, aerobic mesophile bacteria, algae Monthly and annual analyses will be performed in the Institutes for Public Health, and will include both physicochemical and microbiological analyses. In the summertime, analyses will be carried out every day at different measuring points (before and after the treatment), with the aim of confirming the appropriate parameters.

ITSC LTD. MONTENEGRO - OCTOBER 2006 83 ENVIRONMENTAL IMPACT ASSESSMENT STUDY ON REGIONAL WATER SUPPLY SYSTEM OF MONTENEGRIN COAST FROM WATER SOURCE BOL]E SESTRE 6.2.3. AIR QUALITY The construction site will be very covered in dust, and thus it is very important to regularly spray the roads with water so as to remove the dust. The machinery used in the construction must be up-to-date and well maintained, in order to prevent oil leakage, emission of gases and noise increment. In addition, environmentally sound fuels will be used. Access roads to the construction site will be adequately maintained. Dust production is inevitable during the implementation of entire construction, and thus must be reduced as much as possible. In general, the mitigation measures costs are low, if well coordinated with transportation and other activities related to the dust removal. * Scheduling of dust generating activities should avoid the periods of strong winds, * If excavated soil storage in sensitive areas is necessary, the storages should be covered or protected in other way so as to reduce spreading of the dust; * The selection of access roads can also reduce dust impact on population. The access road routes should avoid passing through the inhabited areas wherever possible. Negative construction impacts will affect the construction workers, since theit health and safety will be provided through safety measures and equipment. Prior to the plant construction, the personnel will be well-trained in environmental and their own protection. Moreover, vehicles used for transport of materials will be covered and regularly sprayed with water, to facilitate dust prevention and cleaning. Maintenance of the vehicles will be regularly organized so as to prevent air pollution. The noise impact cannot be mitigated during the construction. However, it is only a short-term impact. Though there are no settlements in the plant area, the modern treatment plant will provide good noise protection (i.e. compressors in containers with sound isolation).

6.2.4. SOIL QUALITY Besides the good planning and drainage, there are no valid mitigation measures for the impact on soil quality during the construction. Proper supporting walls will be installed to keep the soil and sand within a confined area. Proper drainage will be performed so as to divert the storm water away from the excavation areas and thus reduce the erosion risk and avoid storm water drainage. Unavoidable soil impacts will be repaired as soon as the construction is completed. All solid wastes generated on the on site will be collected and disposed at the city landfill. It will not be allowed to accumulate solid waste on site too long. Solid waste (with the exception of excavated soil and debris), such as: wood, paper, glass, plastic and rubbish, will be properly collected, separated, stored, and disposed at the sanitary landfill in Podgorica.

ITSC LTD. MONTENEGRO - OCTOBER 2006 84 ENVIRONMENTAL IMPACT ASSESSMENT STUDY ON REGIONAL WATER SUPPLY SYSTEM OF MONTENEGRIN COAST FROM WATER SOURCE BOLUE SESTRE Though pipeline installation entails burying, too, excess excavated soil is inevitable. This soil quantity does not pose pollution threat if properly disposed in the same area and covered with adequate vegetation. In case these measures cannot be implemented, the excess excavation material is transported and disposed in the adequate local landfill (sanitary or the construction material landfill). Storages will be constructed so as to fit in the surrounding topography. All the aboveground storage tanks and drums will be laid on low permeability ground, and will be able to contain 110% of the storage volume. Spillage or drainage of fuels and oils on the ground or into the drains will be forbidden. In case of accidents, the contaminated land will be collected along with other waste and disposed at the local landfill. During the treatment and disposal of residuals, the environmental requirements and regulations will be met.

6.2.5. POPULATION HEALTH Population health depends on water, air and soil quality. Previously elaborated mitigation measures protect population health from any negative impact. The future water supply system will create preconditions for population health improvement, especially in some municipalities at the Montenegrin coast having considerable difficulties with the water quality at the present moment. Sources in the municipalities of Kotor and Tivat, in a part of the year, have high levels of water salinity, while source Lisna Bori in the municipality of Ulcinj has high concentrations of NH3, Fe and Mn. After the completion of RWSS, these sources will be disconnected from the water supply network.

6.2.6. ECOSYSTEM Mitigation measures for impact on flora and fauna will primarily be aimed at avoiding all the areas of ecological interest through careful planning of temporary and long- term activities. Although the water intake is situated in the environmentally sensitive Skadar Lake area, in the selection of water source due attention has been given to the sensitivity of the ecosystem in which the water source is located. Accordingly, Bolje sestre source has been selected with the presumption that it will the least environmental impact. The construction process itself must introduce following environmental protection measures, in order to diminish the project's environmental impact: * Conveyors must be positioned as close as possible. The construction should be organized in the dry period of the year. * Where conveyors cross-waterways, the ditch must be properly supported in order to prevent erosion. Alternatively, tunnels may be dug as to avoid waterways disruption. * The number of access roads encircling or passing through environmentally sensitive areas must be decreased to the least possible.

ITSC LTD. MONTENEGRO - OCTOBER 2006 85 ENVIRONMENTAL IMPACT ASSESSMENT STUDY ON REGIONAL WATER SUPPLY SYSTEM OF MONTENEGRIN COAST FROM WATER SOURCE BOLUE SESTRE * Vegetation removal is allowed, provided that after the construction it is replaced with new one specific for the area, so as to stabilize the soil and avoid wildlife habitats destruction. * Hunting and disturbance of the wildlife must be avoided. * In the construction phase due attention must be given to avoiding breeding seasons of fish, birds and animals. The monitoring of ecosystem will be organised by National Park "Skadar Lake", in charge of the area. The monitoring team should start its activities before the construction and continue them up to 5 years after the plant's activation. Investigation and monitoring should cover biological productivity of the local area, mammals, birds, reptiles, fish, seasonal habitat requirements, predator-prey ratio, breeding sites. The monitoring activities are regular duty of the NP Skadar Lake. In case of the project's negative impacts, mitigation measures are defined and impleneted in cooperation with this institution, while the manager of RWSS must provide financial and expert assistance. The guiding principle is to replace destroyed vegetation with the new and adequate one.

6.2.7. POPULATION, ITS DENSITY AND MIGRATIONS The future water supply system will have no negative impacts on population or cause its migrations. The construction phase will be organized in the period when there are less local inhabitants, weekend and summer tourists.

6.2.8. TOURISM The construction of the RWSS southern part pipeline is recommended in the low tourist season because significant segment of the pipeline route runs along the main road. As for the continental part, its construction is recommended in the period of low water levels, since: (1) such conditions significantly facilitate the construction of this part, and (2) the northern part of the route in the Skadar Lake are has insignificant impact on main tourist roads.

6.2.9. LAND USE During both the construction and operational phase the land price in the surrounding area will undoubtedly depreciate due to limited land usage within the protection zones that will be defined. This impact cannot be mitigated, but in the view of positive effects the WPF will have for the coastal region of Montenegro, such land use is justified. Construction of the access road to the water intake at Bolje sestre source will provide access to the area completely neglected - due to its current inaccessibility - though with significant potential for the development of eco-tourism. This process should be monitored to prevent the expansion of unplanned and irregular development of this area. Secretary for urban planning of the Municipality of Podgorica is obliged to conduct mentioned monitoring as well as Skadar Lake NP management unit.

ITSC LTD. MONTENEGRO - OCTOBER 2006 86 ENVIRONMENTAL IMPACT ASSESSMENT STUDY ON REGIONAL WATER SUPPLY SYSTEM OF MONTENEGRIN COAST FROM WATER SOURCE BOLUE SESTRE The land on which the construction of the future water intake is planned is state- owned, as well as the most of the pipeline route stretching along the main road and rail lines. However, land acquisition is an option primarily for the reason of pipeline protection.

6.2.10. INFRASTRUCTURE Efficient organization and management will prevent road blockages, while safety measures implementation will prevent leakages from the transport vehicles, and thus road damaging will be avoided. Before and after the start up of the plant, the employees and managers will undergo training, so as to prevent any inconveniences. Traffic-related mitigation measures are similar to those of dust production, with careful road selection and scheduling as the most appropriate negative environmental impact mitigation measures. * Transportation through urban areas during rush hours should be avoided or directed to the roads with lighter traffic. * In road selection, those passing through inhabited areas, particularly near schools and hospitals, should be avoided. * When construction activities must disrupt traffic, i.e. conveyor road crossings, proper signs must be put up, as well as alternative route signs. * The construction activities that significantly affect traffic should be scheduled for light traffic periods, i.e. during the night for the silent ones. * During the pipeline construction period, the ceratin impact will be exerted on the area the pipeline is being placed. Wherever possible, pipes will be dug in (at the bottom of the lake or in land). The exploited land will be returned to previous condition by covering it with vegetation. Pipes above the ground will be coloured green. Thus, this short-term impacts will be mitigated. * Access roads will be constructed along the pipeline, so they remain accessible in case of malfunctioning or for the purpose of reconstruction.

6.2.11. NATURAL AND CULTURAL HERITAGE Previously described measures for the protection of natural heritage - NP Skadar Lake, will be applied in accordance with the international and national legislation. The project design does not include any of the known and protected natural, cultural and historical heritages, which has been confirmed by the approval of the National Park management that after having examined all the project documentation gave no objection to the implementation of the project. If new archaeological sites are unexpectedly discovered during the project implementation, it will be timely registered and the institution in charge will be informed of it, in accordance with Law on protection of cultural monuments (The Official Gazette of Montenegro, No. 27/94).

ITSC LTD. MONTENEGRO - OCTOBER 2006 87 ENVIRONMENTAL IMPACT ASSESSMENT STUDY ON REGIONAL WATER SUPPLY SYSTEM OF MONTENEGRIN COAST FROM WATER SOURCE BOUE SESTRE 6.2.12. LANDSCAPE CHARACTERISTICS After the construction period, the devastated vegetation will be rehabilitated as soon as possible, in order to restore some of its previous appearance. The vegetation replanting depends from the age of plant, and in the case of too old plants when the replanting is not possible it is necessary to plant nurslings. Willow and oak trees' planting will take place in the area of the WPF. Buffer area is planned to encircle the gate. Next to the site borders, a green belt will be planted (trees, decoration bushes and grass). Facilities, such as: reservoirs and pumping stations, must meet architectonic requirements of the area distinguished by using rock as construction and facade material.

6.2.13. PREVENTION OF ACCIDENTS DURING CONSTRUCTION Contractor will take all the necessary protection measures for each type of the civil works involved, especially in the inhabited areas and areas with heavy traffic of persons and vehicles. All construction and rehabilitation works should be carried out in accordance with health and safety regulations. Safety measures will be adopted so as to protect the personnel involved in the construction Public access to the construction sites will be restricted. Internationally accepted practice and existing regulations will be obeyed due to health and safety.

6.2.14. MANAGEMENT AND TRAINING DURING OPERATION The most common causes of system failure are: lack of spare parts, deficiency in trained personnel, skilled technicians and craftsmen, as well as unreliable suppliers. Most of these problems can be traced in inappropriate technical and management training, inadequate operating budgets and unattractive salaries (both of which are related to the low water tariffs that cannot produce revenues to cover the costs of RWSS construction). Since the water transported by the system is higher quality than the Lake water, the impact in case of accident will be negligible. Management staff will receive appropriate training before and after the start up of the RWSS.

6.3. MITIGATION MEASURES FOR THE COASTAL REGION OF MONTENEGRO Mitigation measures necessary to introduce during the project implementation in the coastal region of Montenegro should be: * Pipeline protection from the destructive effects of torrent courses at points the latter intersect with the pipeline route, in such way to prevent potential damages of the pipeline and provide for natural torrent courses, reflecting in the configuration and karst features of this area. * Planting appropriate vegetation and constructing supporting walls so as to eliminate the impacts of pipeline construction that might result in erosion along the pipeline route. * Excess excavation material disposal at appropriate landfills or in the very excavation area with adequate rehabilitation.

ITSC LTD. MONTENEGRO - OCTOBER 2006 88 ENVIRONMENTAL IMPACT ASSESSMENT STUDY ON REGIONAL WATER SUPPLY SYSTEM OF MONTENEGRIN COAST FROM WATER SOURCE BOL]E SESTRE * Environmental improvement through introduction of tree species into the existing phytocenological community. Species selected for planting have to be some of native vegetation in orders to non-disturbe the natural plant communities. * Eliminating negative visual effects of the construction by restoring the entire area into the original state, and by ensuring that areas in the pipeline zone perform the same functions they had before the pipeline construction. * Since in the area of northern branch of RWSS all the accompanying facilities (i.e. pumping stations and reservoirs) have been built, mitigation measures will be implemented in relation to the rehabilitation og existing facilities. * In the souther branch area, the construction of facilities, such as: pumping stations and reservoirs, is foreseen outside the main roads at somewhat higher and unpopulated (reservoir Cafe and Bratica and PS Belveder). The most significant environmental impact the construction of these facilities shall make is the construction of the access road due to machinery usage, thus the mitigation measures relate to noise and dust The design of these facilities must try to diminish the impact on landscape as much as possible.

6.4. ENVIRONMENTAL MONITORING PLAN The purpose of environmental monitoring is to understand the status of pollutants and impacts during the construction and operation phase, and to provide implementation of mitigation measures. Environmental Monitoring Plan for future WPF includes feasible and cost effective measures in order to minimize or mitigate negative impacts. This Program is aimed at integrating environmental concerns into the design and implementation of proposed the Project. The monitoring plan supports: * Site-specific environmental monitoring, * Training of staff / contractors involved in project implementation, * Monitoring and evaluating of mitigation measures identified during site-specific inspections * Public participation in environmental monitoring during and after the construction, by furnishing competent authorities with information. Prepared monitoring program describes how monitoring activities will be carried out. Basic requirements for the monitoring plan include: * Monitoring of environmental variables * Submitting reports to the relevant authorities and local community * Issues/concerns that must be subject of the environmental.monitoring program * Environmental standards and guidelines that need to be adopted or required * Analyses of the effect and possible mitigation measures for the surrounding areas and landowners, as well as the site itself * Economic evaluation of the mitigation measures wherever possible.

ITSC LTD. MONTENEGRO - OCTOBER 2006 89 ENVIRONMENTAL IMPACT ASSESSMENT STUDY ON REGIONAL WATER SUPPLY SYSTEM OF MONTENEGRIN COAST FROM WATER SOURCE BOUE SESTRE Table 7-1 presents Environmental Monitoring Plan, which covers monitoring during construction, operation phase and after the project is completed, as well as institutions that will perform monitoring.

ITSC LTD. MONTENEGRO - OCTOBER 2006 90 ENVIRONMENTAL IMPACT ASSESSMENT STUDY ON REGIONAL WATER SUPPLY SYSTEM OF MONTENEGRIN COAST FROM WATER SOURCE BOLUE SESTRE TABLE 6-1 ENVIRONMENTAL MONITORING PLAN

. . . Monitoring Monitoring frequency and point responsibility water level and flow, pressure, turbidity, Continuous temperature, conductivity, pH, chemical dosage rate, etc RWSS company. turbidity, pH, conductivity, hardness as CaCO3, KMnO4 consumption, ammonia, sulphate as S04, chloride as Cl, nitrate Laboratory (daily control) - physical and as NO3, nitrite as N02calcium as Ca, Beforetreatment chemical analysis iron as Fe, magnesium as Mg, RWSS company. Water quality manganese as Mn , oxygen as 02, total During treatment dissolve solids, suspended solids, etc After treatment Laboratory (daily control) coliforms, aerobe mesophyle bacteria, microbiological analysis alga RWSS company.

analyses according to health Public Health Institute (daily, monthly regulations and annual)

DustConstruction Occasionally Air quality phase Public Health Institute and NP Exhaust gasses concentration managing unit

Construction Occasionally phase (machinery, Contractor controlled by Public Health vehicles) Institute and NP managing unit Noise Leg (dB) Operating phase Occasionally (mechanical RWSS company, controlled by Public equipment) Health Institute and NP managing unit

Biological productivity at local area, mammals, birds, reptiles, fish, seasonal Construction National Park Skadar Lake, monthly Ecosystem habitat requirements, predator-prey operation sampling, for 5 years, which is in relationship, spawning grounds pe accordance with NP's regulations. locations

Continual WPF Facility parameters Operating phase RWSS company, controlled by Public Health Institute

ITSC LTD. MONTENEGRO - OCTOBER 2006 91 ENVIRONMENTAL IMPACT ASSESSMENT STUDY ON REGIONAL WATER SUPPLY SYSTEM OF MONTENEGRIN COAST FROM WATER SOURCE BOLUE SESTRE

6.5. THE COSTS OF THE ENVIRONMENTAL MONITORING AND MANAGEMENT PLAN The positive environmental impacts of the project are of major significance and importance. Financial costs concerning the implementation of the environmental monitoring and mitigation measures refer to: * The funds for ecological protection has been calculated on 256, 410.00 C for the whole system. The Boije Sestre spring requires the investments costs for environmental protection in the amount of 24,000 E in the first year of construction, and 36,000 E in the second year. * During the operation phase most of the investments are based on the operation cost of the laboratory at the WPF, and occasionally performing the comparative sample of the water in the independent laboratory which cost cca. 700.00 E. * Laboratory at the WPF Bolje sestre. The costs of laboratory equipment total cca. 60 000 E. The laboratory will be situated in the personnel building, and will serve for analyses of samples taken from certain parts of RWSS. Regular control water analyses, conducted in accordance with national health legislation, will be carried out by authorized laboratories engaged and funded by the competent Ministry. These analyses are carried out separately from the regular ones, conducted by the RWSS company, and with the aim of proper RWSS operation control. * Implementation of the monitoring during the construction phase will be funded by project investor, and carried out by an authorized laboratory. * Mitigation measures during the construction phase have to be included in the contract for the construction and will be paid by the Investor. Implementation of the mitigation measures during the operation phase will be responsibility of the RWSS company and the funds for those measures will be included in the operational costs. * An expert team of the Public Enterprise Skadar Lake NP and an inspection team of the Ministry in charge of environmental protection and physical planning, within their regular activities implement environmental monitoring in the area of NP Skadar Lake. In case any negative impact would be registered, RWSS manager must eliminate the impact and mitigate consequences, in accordance with the institutions of the stated teams. Environmental inspection team will implement monitoring of both construction and operational phase in the coastal region of Montenegro. * Public enterprise "Morsko dobro" is in charge of the areas of Buljarica, Becici and Utjeha beaches, so all the foreseen activities must be comply with the terms and conditions of that enterprise.

ITSC LTD. MONTENEGRO - OCTOBER 2006 92 ENVIRONMENTAL IMPACT ASSESSMENT STUDY ON REGIONAL WATER SUPPLY SYSTEM OF MONTENEGRIN COAST FROM WATER SOURCE BOLJE SESTRE

7. CONCLUSIONS AND RECOMMENDATIONS The construction of the RWSS of the Montenegrin Coast will provide lacking water quantities for all the coastal municipalities, especially in the summer periods, i.e. in the peak tourist season. The supplied water must meet national and European quality standards. The entire system is around 140 km long, and its construction will last around 3 years. In environmental terms, water source Bolje sestre possesses all the necessary prerequisites to be the source for long-term water supply system, high water quality and avaliable water quantities which will not cause any negative environmental impacts. Since the Skadar Lake basin is transboundary watershed, avoidance of the negative impacts is particulary important. The construction of pipeline and accompanying facilities in both Skadar Lake area, i.e. continental part of the pipeline, and in the coastal region, will not have negative environmental impact due to implementation of proper protection and implementation measures, stipulated by project documentation and this study. During the operational phase of the system, mitigation and monitoring measures programme will be implemented for each part of the RWSS, particularly for the one in the National Park area. Environmental impacts must be controlled via monitoring programme implementation in both construction and operational phase of the system.

ITSC LTD. MONTENEGRO - OCTOBER 2006 93 ENVIRONMENTAL IMPACT ASSESSMENT STUDY ON REGIONAL WATER SUPPLY SYSTEM OF MONTENEGRIN COAST FROM WATER SOURCE BOUE SESTRE

8. BIBLIOGRAPHY M.Buric, Environmental Conditions for Usage of Water Source Karuc - Sinjac for Regional Water Supply of Montenegrin Cost, Podgorica, 1991 G.Karaman, etc, The Biota and Limnology of Lake Skadar, - Biological Institute and Smithsonian Institute, Washington, D.C., U.S.A., Podgorica, 1981 M.Zikic, M.Buric, etc, Cost-Benefit Analyses of Potential Water Sources for Long Term Solution of the Coastal Region of Republic of Montenegro, ITSC, Budva, 2005 M.Buric, Water Supply of Tourist Settlements of Montenegrin Cost, Doctor Dissertation, PMF Belgrade, 1981 State Commission and Institute Technical Research: State of Environment Quality of Zeta Plain, Podgorica, 1995/1996 Institute for Nature Protection: Master Plan for National Park Skadar Lake, Podgorica, 2004 M.Buric, Water Supply of Budva - analysis of four water sources in Skadar Lake Basin, Author Work for Public Enterprise Water Supply and Sewage form Budva, Podgorica,1990 Energoprojekt, Belgrade, Technology Process Project for WTP Karuc, 1994 Energoprojekt, Belgrade, Report on Karuc water source, Third phase of water quality researches, 1995 M.Zikic, etc, Final Design of Water Intake Karuc for Regional Water Supply of Montenegrin Cost, Energoprojekt, Belgrade, 1997 Saur International: Preliminary Design for Water Intake Vucko Blato - Modra Oka for Regional Water Supply of Montenegrin Cost, Budva, 2003 Institute of Water Supply BIH: Final Design of Water Intake Radus for Regional Water Supply of Montenegrin Cost, Sarajevo, 1981 R.Maretic, M.Radulovic: Preliminary Design of Water Intake Tusko Poije for Regional Water Supply of Montenegrin Cost, Direction of Public Works, Podgorica, 1998 Mr Slavko Hrvacevic, Resource of Surface Water in Montenegro, Electricity of Montenegro, Podgorica, 2004 Dr Vasilije L.Radulovic, Hydrology of Skadar Lake Watershed, the Institute for Geological Exploration of Republic of Montenegro, Podgorica, 1989 ITSC Ltd. Montenegro, Water quality report for the Boije sestre spring, 2006

ITSC LTD. MONTENEGRO - OCTOBER 2006 94 ENVIRONMENTAL IMPACT ASSESSMENT STUDY ON REGIONAL WATER SUPPLY SYSTEM OF MONTENEGRIN COAST FROM WATER SOURCE BoLUE SESTRE ITSC Ltd. Montenegro, Environmental impact on water quality of the Boije sestre spring, 2006 ITSC Ltd. Montenegro, Comparative analyze of the Karuc and Bolje sestre , 2006 ITSC Ltd. Montenegro, Preliminary design for the water treatment technology - Boije sestre, 2006 ITSC Ltd. Montenegro, Preliminary design for water intake at the location Boije sestre and pipeline route from Bolje sestre to Tanki Rt, 2006 Geoprojekt, Report of hydro-geological investigation at the area between Grbavci and Bolje sestre spring, 2006 Institute "Sinisa Stankovic", Report of hydro-biological and microbiological investigation of the Boije sestre source, 2006

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