IEE-Shirak-Shirak Intersection and Jrvezh Bus Depot CNG Refueling

Initial Environmental Examination (V1)

September 2020, Yerevan

ARMENIA:Yerevan Bus Depot Project (N ?) (Arshakuniats-Shirak intersection Bus Depot and Jrvezh Depot CNG refueling facility construction)

Prepared by "Investing Projects Implementation Unit Building up of Yerevan" CNCO environmental specialist A. Bodoyan in the frame of Yerevan Municipality “Sustainable Urban Development Investment Program” (SUDIP). This is a first version covering ADB-funded project only. 30 September2020

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Ministry of Economy Yerevan City Municipality "Investing Projects Implementation Unit Building up of Yerevan" CNCO

XXX-ARM:Yerevan Bus Depot Project(Loan - XXX)

Initial Environmental Examination (IEE) For Yerevan Bus depot (Arshakuniats-Shirak Bus Depot and Jrvezh Depot CNG refueling facility construction)

Prepared by "Investing Projects Implementation Unit Building up of Yerevan" CNCO environmental specialist A. Bodoyan for the Ministry of XXX of Armenia and for the Asian Development Bank (ADB)

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Yerevan City Municipality

"Investing Projects Implementation Unit Building up of Yerevan" CNCO Address: Byuzand 1/3, 5th floor Tel. number: + 374 95 45 04 45 E-mail address: [email protected]/

Sustainable Urban Development Investment Program Yerevan Municipality – Asian Development Bank

Rev No. Rev-date Contents/amendments Prepared/revised Checked/released

0 29.04.2014 IEE Report–V1 Yerevan Bus Depot A. Bodoyan T. Oganezov 1 14.12.2020 IEE Report-V2 Yerevan Bus Depot A. Bodoyan

Page 3 of 64 Table of Contents 1. ExecutiveSummary ...... 6 1.1 Background of the Project ...... 6 1.2 Policy and Legal Framework ...... 9 1.3 Description of the Environment...... 11 1.4 Anticipated Environmental, Social Impacts and Mitigation Measures...... 16 1.5 Analysis of Alternatives ...... 20 1.6 Information Disclosure, Consultation, and Participation ...... 20 1.7 Grievance Redress Mechanism ...... 21 1.8 Environmental Management Plan ...... 22 1.9 Conclusions ...... 22 2. Administrative, Policy and Legal Framework ...... 23 2.1 Administrative Framework, Roles and Responsibilities ...... 23 2.2 Policy and Legal Framework ...... 24 2.3 International Agreements ...... 28 2.4 International Financial Organizations requirements for Environmental Assessment ...... 29 3. Description of the Project ...... 30 3.1 Introduction ...... 30 3.2 Objective of the assignment ...... 32 3.3 New Bus Depot at Arshakuniat avenue and Shirak street intersection ...... 32 3.4 CNG Refueling Facility at Jrvezh Bus Depot ...... 34 3.5 Scope and Methodology ...... 34 4. Evaluation of the impacts and previous mitigation measures for Pre-Construction and Construction phases ...... 37 5. Evaluation of the impacts and previous mitigation measures for Operation phase ...... 42 6. Contractor’s HSSE Obligations ...... 45 6.1. General HSSE targets and objectives ...... 45 6.2. HSSE organization ...... 45 6.3. Specific HSE requirements during construction (work and public safety) ...... 46 7. Grievance Redress Mechanism ...... 48 8. Environmental Management Plan ...... 53 8.1 Construction of New Bus Depot at Arshakuniats avenue and Shirak street intersection .... 53 8.2 Mitigation Measures, Responsibilities and Financing ...... 53 8.2.1. Mitigation measures ...... 54 8.2.2. Monitoring Measures...... 58 8.2.3. Summary of Costs for implementation of the EMP ...... 59 9. Conclusions and Recommendations ...... 60

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Abbreviations

ADB Asian Development Bank AP Affected Person BD Bus Depot BP Bank Policy CC Construction Contractor CNG RF Compressed Natural Gas Refueling Facility CS/E Construction Supervisor/Engineer EBRD European Bank of Reconstruction and Development EIA Environmental Impact Assessment EMP Environmental Management Plan FD Final Design GRM Grievance Redress Mechanism HSE Health, Safety and Environment HSSE Health, Safety, Social and Environment HV High Voltage IA Implementing Agency IEE Initial Environmental Evaluation LAR Land Acquisition and Resettlement NGO Non-Governmental Organization PAP Project Affected Persons PIU Project Implementation Unit RA Republic of Armenia SIG Special Interested Groups SNCO State Non-Commercial Organization SS EMP Site-Specific Environmental Plan SUDIP Sustainable Urban Development Investment Program YM Yerevan Municipality

Page 5 of 64 1. Executive Summary

1.1 Background of the Project

This IEE developed by "Investing Projects Implementation Unit Building up of Yerevan" CNCO (hereafter PIU) in 2020 and have an objective to deal with construction of Yerevan New Bus Depot (hereafter BD)to be located at Arshakuniats avenue and Shirak Street intersection adjacent area (on around 8ha land plot) and Construction of Compressed Natural Gas Refueling Facility (hereafter CNG RF)within the limits of the existing/operating Jrvezh Bus Depot area.

The construction sites located in South and East edges of Yerevan city respectively and are provided with maintained urban road network and other infrastructures (fresh water, sewerage, gas, electricity, lightening)

Economic growth has brought widespread vehicle ownership, which has grown by 40% since 2004. The number of accidents in Yerevan has risen in parallel, from 260 fatalities in 2004 to more than 400 in 2008, with the number of injured more than doubling from 1,500 in 2004 to 3,125 in 2008. Despite improvements in major arteries in the capital started from 2008 till now days, the traffic signal system is outdated and inadequate, which brings that,in 2019 the Armenian police recorded a total of 4,715 accidents from January 1 through December 26, up by around 15 percent from 2018. The number of road casualties was slightly higher in 2018: 343 vs 335 in 2019. Still, the number of people injured in accidents soared from 5,950 to 6,678, according to the official statistics1.

The Yerevan public transport system comprises microbuses, buses, trolleybuses, and metro routes. Its public transport infrastructure is aged, and vehicle fleet old and poorly maintained. Currently Yerevan has 10 trolleybus, 45 bus and 61 microbuses routes with approximately 1200 vehicles in the fleet. The average speed of the vehicles is between 14,5 kilometers per hour for trolleys and 20,5 kilometers per hour for buses and microbuses.

Today, 85% of the passengers are carried by unsubsidized private microbuses. While minibuses spared Yerevan a severe transport crisis in the 1990s, they now contribute to a chaotic situation that has seen big and medium-sized buses pushed out. Service quality is poor due to overloading and congestion. This shift has severely compromised the financial sustainability of other public transport services and caused investment backlogs for trolleybus and metro, as fares are too low to cover operating and renewal costs.

1 ttps://www.azatutyun.am/a/30352878.html#:~:text=The%20Armenian%20police%20recorded%20a,ac cording%20to%20the%20official%20statistics. 6

Page 6 of 64 The environmental protection is another priority for Yerevan urban area. Located in Ararat Valley, Yerevan has little natural ventilation, and congestion results in concentration of hazardous substances. Urban transport generated 90% of health-related air pollution in 2009. Greenhouse gas emissions in the form of carbon dioxide are expected to increase by 160% by 2020. The limited number of bridges in Yerevan over the Hrazdan River creates bottlenecks and massive congestion during peak hours. In addition, a city bypass remains uncompleted, disallowing any diversion of passing traffic. Illegal and double parking and poorly enforced traffic laws further constrain mobility. In 2009, traffic exceeded design capacity on more than 20% of the road network, and a further 35% was about to reach its limit.

Actually, the Government of Armenia is working with the European Bank for Reconstruction and Development (EBRD) to provide a new fleet of buses to replace the obsolete existing fleet. The existing bus depots are severely deteriorated due to the lack of investment over the past two decades. Conditions are detrimental both to the operation of the municipal bus fleet as well as to the well-being of the bus industry employees.

Due to seismic issues, many of the depot buildings represent a serious workplace hazard. The Government of Armenia has requested that ADB utilize loan commitments from SUDIP to construct the principal bus depot facility for Yerevan and new CNG RF to ensure maintenance and exploitation of bus fleet to be purchased/acquired.

This project will contribute to develop a more sustainable urban transport system in Yerevan through the development of the design and construction for a New Bus Depot and design and construction of new CNG Refueling Facility within the existing/operating Jrvezh Bus Depot site to support temporarily the bus fleet during the construction phase of the New Bus Depot.

Health, Safety, Social and Environmental Screening of the Project

An important E&S issue identified for the project (only for New Bas Depot construction) is the presence of illegally occupied land plots. According to the provided information/data by RA Cadaster chosen land plots for BD construction is State/Yerevan Municipality (YM) owned and there are no leased land plots also. The abovementioned land plots are mainly used for gardening (vegetables, crops, fruit trees, bushes) by neighboring residents. Around of 30-35% of the selected plot for the construction of New Bus Depot area is planted by fruit trees (approximately 65 trees) and Bushes (more than 100 bushes) which must be cut/removed during the construction. Resettlement actions (LAR) shall be developed and implemented to minimize impacts and reimburse/compensate land plots cultivators for crops and fruit trees.

Another important HSSE issue identified (only for New Bas Depot construction, also) is the presence of likely underground communications (old and new once)with non-identified alignments (HV electrical cables, Communication cables, drinking, irrigation, water, sewerage pipelines and probably old underground water drainage system) that can be damaged during the construction works and create temporary dysfunctioning of above mentioned systems (sewerage, drainage, irrigation) and supplies (water, electricity, gas, cable communication).

Page 7 of 64 The selected land plot area is covered mainly with “fertile” land/topsoil (with approximately 0.2 till 1m depth in some section) and as it mentioned above it is cultivated by neighboring residents. All this topsoil will be disturbed/removed for the construction of the BD and appropriate measures must be implemented for its further proper storage and/or reuse.

As well, during the site inspection visits it was identified underground waters discharge next to the “Renaissance” Restaurant , at the south edge of the selected land plot for construction, which means that ground water level is high in this area (historical/archive data confirming this statement) and risk of its contamination is high during the construction phase. Accordingly, additional engineering efforts (e.g. drainage system to lowering the groundwater level) and measures, at design and construction phases, must be invested to avoid the likely scenarios.

The construction of CHG RF will take place in Jrvezh Bus Depot owned land plot. No additional land must be acquired by Yerevan Municipality for construction. No LAR impacts are expected.

The existing urban road network will be used during the project both component construction works. Traffic management and control will be the one of the main HSSE requirement and shall be managed properly, based on management and monitoring plans developed in this IEE and on RA and ADB safeguards requirements, as the both components of the project will be implemented within and will use roads (avenues, roads) with high density traffic.

Other HSSE aspects, related to the construction and operational phases, like construction related waste, household waste, fuel storage, spills, pavement residuals, air emissions etc. still to be managed according to management and monitoring Plans prepared in this IEE, EIA (to be developed within design phase and to be approved by RA Ministry of Environment and ADB respectively) and site specific EMPs (to be developed by Construction Contractors (CC) and approved by PIU and ADB.

Alternatives

In order to ensure more sustainable urban transport system of Yerevan city, including New Bus Depot and Compressed Natural Gas Refueling Facility Construction within the frame of new bus fleet arrival (actually under the negotiation phase with the European Bank for Reconstruction and Development (EBRD)), the following alternatives have been envisaged: - Construction of the New Bus Depot on the land plot next to the Yerevan Bypass road Noragavit section, next to the small bridge on the right side of the road section in direction to Yerevan – Artashat highway (M2). - Construction of the New Bus Depot on the land plot (State owned) behind former “Yerevan meet Factory”. - Reconstruction and expansion of Jrvezh Bus Depot - No action

For CNG refueling facility alternatives were not discussed.

Category of the Project

Page 8 of 64 Following the “Environmental Considerations in ADB Operations” ofSeptember2006, the Project can be considered to be a Category B project, requiring an Initial Environmental Evaluation (IEE). The Project will not require acquisition of land, but only limited resettlement activities related to the State/YM owned but illegally occupied and cultivated land plots only for New Bus Depot Construction component at Arshakuniats avenue and Shirak Streets intersection adjacent areas. For this purpose, LAR actions must be implemented, like identification of cultivators of land plots, assessment and cost estimation of agricultural cultures (trees, bushes, crops) to be reimbursed/ compensated etc. Grievance Mechanism approach is developed within this IEE and must be updated (if required) and implemented by Design and Construction Contractors to mitigate likely impacts.

Other major HSSE impacts are described above in HSSE Screening sub-chapter consider Category B for this project as well.

No biodiversity surveys/measures envisaged, as it was described above, the land plot(s) chosen for the construction is already used/cultivated by local residents and or owned by operating Depot and risks are nonexistent or negligible related to the likely disturbance and/or damage to the natural environment of fauna and flora specimens.

No cultural heritage (monuments etc.) and archeological sites are identified in the project area. Archeological expert conclusion for the depot site is attached in Annex 2 Anyhow, “Chance Find” approach must be considered and applied during the construction phase of the project by the Construction Contractor, especially during the excavation, digging and/or trenching works to be done.

All construction activities for the CNG refueling facility will take place within the properties of the Jrvezh Bus Depot.

The CNG refueling facility construction will have some adverse environmental, social, health & safety impacts during the construction phase, which can be mitigated and/or avoided by Site Specific ESSH Management Plans to be developed by Design and/or Construction Contractor.

At the same time, based on the RA Law on Environmental Assessment and Expertise of 2014, and considering the project components (BD -“Category C (Գ)” and CNG RF - “Category B (Բ)”), see details in chapter 1.2 below) characteristics and likely adverse impacts dimensions of the project the EIA must be conducted and submitted by the Design Contractor (based on the conceptual and or 90% design) to the “Environmental Impact Expertise Center” SNCO of MEME of RA for expertise and environmental permit obtaining a prior to the commencement of the Construction phase.

1.2 Policy and Legal Framework

National EIA requirements

The implementation of any activity in Armenia which may cause environmental impacts needs a positive conclusion of an EIA expertise. Environmental impacts of a planned physical activity or a

Page 9 of 64 sectoral/ regional development plan/ program have to be assessed during the preparation period. The RA Law on Environmental Assessment and Expertise of 2014(in force from September 11, 2014, low changes on October 15, 2014) stipulates provisions regarding environmental impact assessment, realization and terms, thus being the most important national law for carrying out of the EIA. In Chapter 3., Article 14. “Types of mainframe documents and planned activities subject to environmental impact assessment and expertise”, point 5. “Category B (Բ)”, sub point 3) “Infrastructures” - d. petrol/gas stations with a capacity of 5 cubic meters and more and point 6.“Category C (Գ)”, sub-point 7) “Urban development” - a. Urban development structures with a construction area of more than 1500 square meters are mentioned under which this Project may require a national Environmental Impact Assessment procedure under Category B for CNG RF construction and under Category C for New Bus depot construction. The implementation of environmental assessment is authorized to the RA Ministry of Environmental Protection, which has established “Environmental Impact Expertise Center” State Non-commercial Organization (SNCO) for organizing expertise procedures. This SNCO is conducting project Environmental impact expertise and issuing the environmental permits.

International Agreements

Armenia has ratified a number of international agreements and conventions relating to the protection of the environment and biodiversity. In addition, an important, environmentally relevant, international agreement to which Armenia is a signatory of the Aarhus Convention on access to information, public participation in decision-making and access to justice in environmental matters. With respect to handling of hazardous substances the Government of the Republic of Armenia ratified the Stockholm Convention and is a party of the Basel Convention. Full list of International Environmental Conventions and Protocols signed and ratified by RA is presented Chapter 2.3, in Table 2.

Asian Development Bank

The environmental policy of the Asian Development Bank (ADB) is grounded in ADB’s poverty reduction strategy and long-term strategic framework. The poverty reduction strategy recognizes that environmental sustainability is a prerequisite for economic growth and efforts to reduce poverty. In this context, environmental sustainability is one core issue of ADB’s environmental policy.

ADB requires environmental assessment of all project loans, program loans, sector loans, sector development program loans, financial intermediation loans, and private sector investment operations. Environmental assessment is a process rather than a one-time report and includes necessary environmental analyses and environmental management planning that take place throughout the project cycle.

This IEE was carried out in accordance with the relevant ADB guidelines as there are:

· Operations Manual Bank Policies (BP): Environmental Considerations in ADB Operations, 2006,

Page 10 of 64 · Safeguard Policy Statement, June2009, effectivesinceJanuary2010.

1.3 Description of the Environment

General location

Yerevan city is divided in 12 administrative districts (Hamaynqner). Parts of the Project are located, New Bus Depot in Shengavit (south of Yerevan) and CNG Refueling Facility in Nor Norq (East of Yerevan, See figure 2.) administrative districts.

New Bas Depot construction site is located at Arshakuniats avenue and Shirak Street intersection adjacent area (on around 8ha land plot section) owned by Yerevan municipality (see figure 1.).

Shirak Street

Entrance 2 Arshakuniats Avenue

Entrance 1

Figure 1. Selected area for the Bus Depot (8 hectares)

In order to avoid resettlement actions with private land plots and to consider the best accessibility as possible, it was decided to review initial location of the Depot and the both accesses to the new Bus Depot will be removed and located in Shirak street.

Closest residential (right side of Arshakuniats avenue, left side of the plot from entrance 1, private houses) and commercial (Renaissance Restaurant at right edge of the land plot and Refrigeration/Ice house at the lefts side of the land plot) buildings from middle point of the land plot is approximately 300 - 350m.

Meanwhile, site visits and the remote sensing of satellite images shown that there is the presence of illegally occupied land plots, as according to the provided information/data by RA Cadaster chosen land plots for BD construction is State/YM owned and there are no leased land plots also.

Page 11 of 64 Additionally, to the two proposed accesses, the depot will be served by a roundabout at the intersection of Arshakuniats avenue and Shirak street, which allows the buses turn to all directions without the need of specific controlled street crossing, reducing the need for traffic lights.

Compressed Natural Gas Refueling Facility (hereafter CNG RS) is located within the limits of the existing/operating Jrvezh Bus Depot area (see figure 2.) and doesn’t require any additional plot acquisition.

Figure 2. CNG Refueling Facility location at Jrvezh Bus Depot

Both construction sites are provided with maintained urban road network and other infrastructures (fresh water, sewerage, gas, electricity, lightening)

Seismic situation

Yerevan city has complex seismotectonic conditions. At a distance of 10 km north-east of the city is one of the largest active Garni fault in the territory of the Republic of Armenia. At a distance of 2 km south-west of the city, the Parakar fault passes, which is characterized by high seismic activity. The following seismic zones are the most seismically dangerous for the territory of Yerevan: Garni zone, the minimum distance of which is 10 km from the city, and the maximum magnitude is Mmax = 7.1 and the zone of Yerevan, the minimum distance from the city is 2 km, and the maximum magnitude is equal to Mmax = 6.5: According to the deterministic assessment of seismic hazard, the maximum horizontal accelerations expected in Yerevan city are equal to 0.38-0.39g for second-class soils (initial value of seismic hazard without taking into account ground conditions). According to the RA 12

Page 12 of 64 Construction Norms (HHSN II-2.02-94) the maximum value of accelerations for the city area is 0.4g.

Climate

Yerevan features a continental influenced steppe climate (Köppen climate classification: BSk or "cold semi-arid climate"), with long, hot, dry summers and short, but cold and snowy winters. This is attributed to Yerevan being on a plain surrounded by mountains and to its distance from the sea and its effects. The summers are usually very hot with the temperature in August reaching up to 40 °C, and winters generally carry snowfall and freezing temperatures with January often being as cold as −15 °C and lower. The amount of precipitation is small, amounting annually to about 318 millimeters (see table 1.). Yerevan experiences an average of 2,700 sunlight hours per year.

Climate data for Yerevan

Month Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Year

19.5 19.6 28.0 35.0 34.2 38.6 42.4 42.0 40.0 34.1 26.0 20.0 42.6 Record high °C (°F) (67.1) (67.3) (82.4) (95.0) (93.6) (101.5) (108.3) (107.6) (104.0) (93.4) (78.8) (68.0) (108.7)

1.2 5.5 12.6 19.4 24.1 29.9 33.7 33.4 28.7 21.0 12.4 4.6 18.9 Average high °C (°F) (34.2) (41.9) (54.7) (66.9) (75.4) (85.8) (92.7) (92.1) (83.7) (69.8) (54.3) (40.3) (66.0)

−3.6 0.1 6.3 12.9 17.4 22.6 26.4 26.1 21.1 13.8 6.2 −0.2 12.4 Daily mean °C (°F) (25.5) (32.2) (43.3) (55.2) (63.3) (72.7) (79.5) (79.0) (70.0) (56.8) (43.2) (31.6) (54.3)

−7.5 −4.4 0.7 7.0 11.2 15.4 19.4 18.8 13.4 7.5 1.1 −3.9 6.6 Average low °C (°F) (18.5) (24.1) (33.3) (44.6) (52.2) (59.7) (66.9) (65.8) (56.1) (45.5) (34.0) (25.0) (43.9)

20 21 29 51 42 22 16 9 8 32 26 20 296 Average precipitation mm (inches) (0.8) (0.8) (1.1) (2.0) (1.7) (0.9) (0.6) (0.4) (0.3) (1.3) (1.0) (0.8) (11.7)

Average rainy days 2 4 8 12 12 8 5 4 4 8 7 4 78

Average snowy days 7 7 2 0.2 0 0 0 0 0 0.1 1 5 22

Average relative humidity (%) 81 74 62 59 58 51 47 47 51 64 73 79 62

Mean monthly sunshine hours 93 108 162 177 242 297 343 332 278 212 138 92 2,474

Table 1. Yerevan City weather by month/weather averages2

Water resources

There are no surface water flows (rivers, natural streams) close to the construction site. Closest natural surface water flows are the Razdan river located about 5km North-West from BD and about 1.5 North from Jrvezh river from CNG RF construction sites respectively.

2 https://en.wikipedia.org/wiki/Yerevan#Climate 13

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However, during the site visits/field survey/ underground waters discharge next to the “Renaissance” Restaurant was identified, at the south edge of the selected land plot for construction, which suppose high level of ground waters at the selected land plot area for BD construction and characterizing by seasonal variations (high from end of the May to end of the July, due to the aquifer recharge by snowmelt and surface runoff waters). Contamination during the construction and operation phases, as well construction foundation flooding is very likely and detailed survey and engineering measures in order to avoid or mitigate likely impacts is needed. Appropriate mitigation and monitoring measures shall be developed and implemented by the Design and Construction Contractors based on Management and monitoring plans provided in this IEE, RE legislation and ADB safeguard requirements.

Soil management

The selected land plot area for the construction of BD is covered mainly with “fertile” land/topsoil (with approximately 0.2 till 1m depth in some section) and as it mentioned above is cultivated by neighboring residents.

All this fertile topsoil will be disturbed/removed for the construction of the BD and appropriate measures must be implemented for its further proper storage and/or reuse according to this IEE, RA legislation and ADB safeguard requirements. Topsoil qualitative and quantitative survey and management plan shall be developed (to be approved by PIU and ADB) and implemented by Construction Contractor.

Air quality

Air pollution during the construction and operation phase are expected. Air quality likely pollution shall be evaluated in EIA at design phase using the “calculation methodology recognized by RA Order N64-L "On approval of the list of software for the calculation of emissions of harmful substances from real sources" of the Ministry of Environment dated 18.02.20203.

For design and pre- construction phase, data on instrumental measurements of dust, Sulfur Dioxide (SO2) and Nitrogen Dioxide (NO2) shall be collected from the official data of the “Hydrometeorology and Monitoring Center” SNCO under the MOE. Parallelly to the above mentioned collected data, the design Contractor/Engineer will conduct its own air quality measurements for all identified project sensible receptors and areas. Based on collected and measured data in design and pre-construction phases the Site specific Air quality modeling (internationally recognized and acceptable for RA) shall be developed within final design stage by the Construction Supervisor/Engineer and implemented in construction phase, based on data collected on instrumental measurements of dust (PM2.5, PM10), Sulfur Dioxide (SO2) and Nitrogen Dioxide (NO2) from the official data of the “Hydrometeorology and Monitoring Center” SNCO under the MOE and Engineer own measurments. Air quality management and monitoring plans shall be developed (to be approved by PIU and ADB) and implemented by Construction Contractors, based on this IEE, Air quality modeling, RA legislation, internationally recognized

3 http://www.mnp.am/uploads/1/1582112683Hraman64.PDF

Page 14 of 64 requirements, standards and ADB safeguard policy.

Also, for operation phase it is recommended to develop and implement Air quality monitoring plan (at least for defect liability period by PIU and/or Construction Supervision/Consulting Contractor) to evaluate project impacts (mainly positive) on air quality of the Yerevan city.

Noise and vibration

Impact on workers, nearby residential and commercial facilities by noise and vibration triggered by Construction works (excavation, compaction, etc.), by heavy machinery and vehicles, expected during the construction phase. Noise and vibration baseline data shall be collected, and modeling developed at pre-construction phase by Construction Supervisor/Engineer. It is recommended to develop and implement site specific management and monitoring plans based on this IEE, Noise and Vibration model, relevant RA and international requirements and ADB safeguard policy.

During the Operation phase, as well, despite the fact that situation will be improved as free flow reduces noise, noise modeling development and implementation is recommended based on mitigation measures and technical specification described in this IEE and relevant RA and international standards.

Waste management

Construction (excavated subsoil, rocks, stones, metallic and plastic parts etc.) and household wastes (construction camps) are foreseen during the construction phase.

Appropriate measures must be implemented for its further proper accumulation and disposal according to this IEE, RA legislation and ADB safeguard. For construction waste temporary collection in regular heaps within the Construction sites and regularly removal from the construction site to the authorized dumpsite by Yerevan Municipality and approved by Consultant shall be envisaged in Site Specific Management Plans.

During the Operation phase disposal of spare parts at the end-of-life and other solid waste generated by the technical and admin facilities are envisaged. In order to properly manage above mentioned wastes, the Operator shall develop and implement the Bus Depos waste management and monitoring Plan.

Forested areas and flora/fauna

There are no forested areas and/or municipal green zones/parks close to the Construction site. Despite the areas of the construction is urbanized (Jrvezh depot) and 100% cultivated by residence (New depot), typical for Yerevan area fauna and flora species can be met. In this regard, it is recommended to conduct biodiversity survey at the pre-construction/design phase by Construction Supervisor/Engineer to avoid any impact of the project, if any endangered or red book species identified.

Page 15 of 64 Protected areas

There are no protected areas close to the Construction sites

Cultural and Historical Sites

There are no Cultural and historical (archeological) sites identified close to the Construction sites. Anyhow, “Chance Find” approach must be considered and applied during the construction phase of the project by the Construction Contractor, especially during the excavation, digging and/or trenching works to be done.

Public Health and Safety

The project will be implemented within and will use urban (Yerevan City) existing road network with high density traffic. These will include Arshakuniats avenue, insuring the traffic from and out of Yerevan city in direction south M2 highway, Shirak Street, which is the part of the Yerevan ring road discharging the traffic flows from Yerevan city center to the West, West- North directions and Tevosyan street ensuring the traffic in direction to the M15 and then M1 highways to the North of Armenia.

Traffic related impacts must be the one of the main HSSE major aspects of the project and can be managed properly by developing and implementing site specific Traffic management, control and monitoring Plans. Impact on nearby residential and commercial facilities by noise and vibration triggered by Construction works (excavation, compaction, etc.), by heavy machinery and vehicles, expected during the construction phase. It is recommended to develop and implement site specific management and monitoring plans based on this IEE, relevant RA and international requirements and ADB safeguard policy

During construction and operation low probability of leak and of accumulation of CNG is envisaged. Mitigation measures during the construction phase must be developed and implemented based on this IEE, relevant RA and International requirements.

Occupational Health and Safety

Other H&S aspects, related to the construction and operational phases, like earth works /trenching, digging/, works in height, welding, electrical works, maintenance of vehicles etc. still to be managed according to H&S management and monitoring plans prepared in this IEE, according to the site specific EMPS (to be developed by Construction Contractors (CC) and approved by PIU and ADB) and Bus Depos Operator Environmental, health & safety Management System to be developed and implemented by Yerevan Municipality.

1.4 Anticipated Environmental, Social Impacts and Mitigation Measures

Page 16 of 64 This study revealed that only some residual low negative impacts can be occurred, after having implemented the mitigation measures developed and to be detailed in this IEE , EIA and Site- specific EMPs (SS EMP) to be developed by Construction Contractor (CC) , mainly during the construction phase. During the operational phase, the positive impacts are obvious and consist in a much more improved urban transport network and less contamination and impacts on environment and human health and safety (air, soils pollution, noise, vibration, dust etc.) in Yerevan.

Pre-construction phase

As this IEE is done based on Senior Infrastructure Design Engineer & Senior Depot Designer Report (version 1, June 2020, were only preliminary design approaches are provided and are/was subject of further changes/review), Rapid Environmental Assessment (REA) checklist conducted by ADB (L-GIT) and on field survey of the PIU Environmental specialist, it is recommended to update this IEE at preconstruction phase, within the arrival of the 90% and/or Final Design (FD) document, to be more specific and to provide more reliable Management and Monitoring plans.

Meanwhile, the objective of this sections of IEE has to emphasize the main design and engineering efforts to be done during the 90% and/or FD phase as for following HSSE aspects: - The likely presence of underground communications (old and new once) with non- identified alignments (HV electrical cables, Communication cables, drinking, irrigation, water, sewerage pipelines and old underground water drainage system) that can be damaged during the construction works and create temporary dysfunctioning of above mentioned systems. - The presence of huge amount of “fertile” land/topsoil (with approximately 0.2 till 1m depth in some section) - underground waters discharge next to the “Renaissance” Restaurant , at the south edge of the selected land plot for construction, which means that ground water level are high in this area (historical/archive data confirming this statement) and risk of its contamination is high during the construction phase. Accordingly, additional design and engineering efforts (e.g. drainage system to lowering the groundwater level, geophysical survey to identify underground communication etc.) and measures shall be considered at design/pre-construction phase to avoid the unlikely scenarios.

Construction phase

The construction activities of the New Bus Depot will be limited in the State/Yerevan Municipality owned land plots. The Project will not require acquisition of land, meanwhile resettlement activities related to the State/Yerevan Municipality owned but illegally occupied and cultivated land plots for New Bus Depot Construction component at Arshakuniats avenue and Shirak Streets intersection adjacent areas shall be implemented. Identification of cultivators of land plots (at least 20 small size illegally cultivated land plots are identified during the field survey), assessment and cost estimation of agricultural cultures (trees, bushes, crops) to be reimbursed/ compensated etc. Resettlement Action Plan shall be developed and implemented by PIU and/or CS/E. Grievance Mechanism approach is developed within this IEE must be updated

Page 17 of 64 (if required) and implemented by PIU, CS/E and Construction Contractors to mitigate likely impacts a prior to the commencement of the construction.

Tree/bushes cutting, damage to the cultivated crops/vegetables by residents for the construction of New Bus Depot construction area shall subject to permission and supervision of the Yerevan Municipality and shall be properly managed by LAR activities in order to compensate damages caused to illegal cultivators. The greening/tree planting/landscaping plan/project (at least 1cut -3 planted trees, 1cut -6 planted bushes) shall be developed and implemented by PIU and/or CS/E(to be approved by YM and ADB) in order to compensate the damage to the environment. Selected area of the greening/tree planting/landscaping plan/project shall be chosen and approved by Yerevan Municipality.

The selected land plot area for the construction of BD is covered mainly with “fertile” land/topsoil (with approximately 0.2 till 1m depth in some section) and as it was mentioned above is cultivated by neighboring residents. All this fertile topsoil will be disturbed/removed for the construction of the BD and appropriate measures must be implemented for its further proper storage and/or reuse according to this IEE, RA legislation and ADB safeguard requirements.

Data on instrumental measurements of dust, Sulfur Dioxide (SO2) and Nitrogen Dioxide (NO2) shall be collected from the official data of the “Hydrometeorology and Monitoring Center” SNCO under the MOE. Parallelly to the above mentioned collected data, the design Contractor/Engineer will conduct its own air quality measurements for all identified project sensible receptors and areas. Based on collected and measured data in design and pre- construction phases the Site-specific Air quality modeling shall be done by Construction Supervisor/Engineer and management and monitoring plans shall be developed (to be approved by PIU and ADB) and implemented by Construction Contractors (CC).

Only some residual low negative impacts like contamination of soil by leak from heavy machinery, limited noise and vibration impact on the workers, nearby residential houses etc. can be occurred, after having implemented the mitigation measures developed in this IEE.

All construction activities for CHG refueling facility shall take place within the fenced area of Jrvezh Bus Depot, where enough space for construction camp and for the additional equipment surveyed.

Both component of the project will be implemented within and will use urban (Yerevan City) existing road network with high density traffic. Traffic related impacts must be the one of the main HSSE major aspects of the project and can be managed properly by developing and implementing site specific Traffic management, control and monitoring Plans, to be developed in EIA, Site Specific EMPs and implemented according to this IEE Environmental management plan and the RA and ADB safeguards requirements.

Main wastes, including potentially hazardous will come up due to the construction excavation, digging, trenching, new buildings and structures assembling etc. works and mainly will be represented by:

Page 18 of 64 · excavated subsoil, · rocks, stones, · residual metallic and plastic parts of construction materials · Containers, bags of chemicals (paints, insulators, cement etc.) · Used oil, filters etc. of vehicles/mechanisms/heavy machinery · Etc. All construction related waste (excavated subsoil, rocks, stones, metallic and plastic parts, dismantled parts, etc.) will be accumulated in regular heaps within the Construction sites and regularly (latest by the end of the week) removed from the construction site to the authorized dumpsite designated by Relevant Municipality and approved by Consultant. In case of selling wastes for recycling/reuse purposes it has to be ensured that only licensed companies take over the material. It shall not to be sold to individual private people.

Specific consideration shall be given to the: - presence of likely underground communications (old and new once) with non-identified alignments (HW electrical cables, Communication cables, drinking, irrigation, water, sewerage pipelines and old underground water drainage system) that can be damaged during the construction works and create temporary dysfunctioning of above mentioned systems. - identified underground waters discharge next to the “Renaissance” Restaurant , at the south edge of the selected land plot for construction, which suppose likely risk of groundwaters contamination during the construction.

For all type of works (trenching, digging, assembling, welding etc.) specific health and safety training shall be developed and conducted a prior to the commencement of the works. The CC shall develop a Site-Specific Health, Safety and Environment Plans (SS EMP) and implement a corresponding HSE Management System based on EMP of this IEE. The Contractor to be appointed shall apply, RA legislation, International and ADB safeguard policy requirements.

All mitigation measures during construction period appointed by this IEE shall be an activity of this Project and shall be financed under the loan.

Operational phase

During the operation phase it is recommended to develop and implement Air quality monitoring plan (at least for defect liability period by PIU and/or Construction Supervision/Consulting Contractor) to evaluate project impacts (mainly positive) on air quality of the Yerevan city.

Despite the fact, that situation will be improved as free flow reduces noise, noise modeling development and implementation is recommended.

Disposal of spare parts at the end-of-life and other solid waste possible generation by the technical and admin facilities shall be properly managed. The Operator shall develop and implement the Bus Depos Environmental, Health & Safety Policy, Management System and Plans for operation phase.

Page 19 of 64 The Project will result in a much more improved urban transport network and less contamination and impacts on environment and human health and safety (air, soils pollution, noise, vibration, dust etc.) in Yerevan.

1.5 Analysis of Alternatives

All envisaged alternatives were rejected due to the following reasons: - Proposed land plot for construction of the New BD on the land plot next to the Yerevan Bypass road Noragavit section next to the small bridge was considered deficient for operations and as well have illegally occupied land plots (cultivated by neighboring residents) - Proposed land plot for Construction of the New BD on the land plot behind of former “Yerevan meet Factory” rejected for two reasons: (i) land plot was forested (more than 150 trees) and (ii) requires additional capital reconstruction works for access road(s) to the site. - Reconstruction and expenditure of Jrvezh Bus Depot was rejected for two reasons too: (i) there will be no place for existing/operating buses maintenance and parking during the construction works and (ii) decommissioning of huge amount of old buildings (deteriorated constructions, with high risks of collapse) was needed to ensure partially only the demand of the surface for parking and maintenance of new bus fleet and old/existing buses. - No action – will bring to the possible failure of Yerevan Municipality efforts and already taken engagements/responsibilities to ensure more sustainable urban transport system for Yerevan city/population/ and maintenance and exploitation of new bus fleet.

For CNG refueling facility alternatives were not discussed.

1.6 Information Disclosure, Consultation, and Participation

The ADB policies require that public consultations are held during development of an EIA/IEE. Unfortunately, due to the COVID 19 pandemic restrictions in Armenia, as well absence of the reliable preliminary design (provided location of the New Bus Depot was removed from the initial location) the public consultations were not conducted. Only few private

Page 20 of 64 meetings/interviews with residents (3 interviews) and commercial entities (Renaissance Restaurant representative) were conducted by PIU environmental specialists. As It was recommended above, this IEE shall be updated with arrival of the 90% and/or Final Design, and based on these public consultations, information disclosure can be done within this IEE update period.

Meanwhile, major concerns for BD construction raised by neighborhood residents and Renaissance restaurant representative were the: - Damage to the cultivated trees, bushes, crops and vegetables and possible compensation, - Likely damage to the underground infrastructures like water supply, sewage, gas pipelines, - Likely impact of dust, noise and vibration during the construction and operation phases For CHG refueling facility construction as major concern raised by the Jrvezh Depot head was the Bus Depot parking and maintenance areas reduction due to the Construction works, which can create somehow dysfunctioning of the Bus Depot operations.

Based on the ADB policies requirements, public consultations will be conducted also by the Construction Contractor with likely participation of ADB national environmental consultant and PIU Environmental and Social specialists and Special Interested Groups (SIGs, Shengavit, Nor Norq administrative districts, Jrvezh bus depot, neighborhood residential houses and Comers representatives etc.) a prior to the commencement of the BD and CNG RF construction phase. Consultations must comprise disclosure of the BD and CNG RF construction design, likely HSE impacts, Previous Mitigation Measures, Monitoring plan and Grievance Redress Mechanism information according to the Site Specific EMP (SS EMP) developed by Construction Contractor and approved by ADB and PIU. Concerns/issues raised during the public consultations (if any) and measures undertook or to be undertaken shall be reported by CC to PIU and shall be included in bi-annual Environmental Monitoring Report by PIU to be submitted to ADB.

Based on the RA Law on Environmental Assessment and Expertise of 2014, PIU shall submit IEE/EIA for the New BD and CNG RF construction to the “Environmental Impact Expertise Center” SNCO for expertise and environmental permit and received “None-Objection” for Project implementation. Two public consultation, based on preliminary design shall be conducted by design Contractor in collaboration with PIU and two public hearings shall be conducted by Ministry of Environment a prior to the IEE/EIA approval.

1.7 Grievance Redress Mechanism

During implementation of the Project, unexpected impacts might occur, or mitigation measures might not be carried out improperly. In these cases, and in order to provide timely and effective solution of issues, it is necessary that an efficient channel for the local people to address to have been established. Addresses on environmental concerns should be made of free basis and all the costs should be provided from the Project budget, out of budget line “Contingency”. Mechanism of submitting a grievance and its redressing is provided below in chapter 7. 21

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1.8 Environmental Management Plan

Within this IEE Environmental Management and Monitoring Plans (EMPs) have been developed for the New Bus Depot and for CNG Refueling Facility pre-construction, construction and operation phases. Main focus was given to the mitigation measures for topsoil, underground water, existing utilities/infrastructures management, hazardous and household wastes accumulation and disposal, traffic management and control. All mitigation measures during construction phase have to be implemented by the contractor and monitored by the Project Implementation Unit (PIU) and Construction Supervisor/Engineer (CS/E).

PIU as responsible Implementing agency for the two parts of the project will recruit a International Construction Supervisor/Engineer. International Construction Supervisor/Engineer (CS/E) team will assist Yerevan Municipality (Client) as project supervision consultant on this Project. The PIU and CS/E should also provide capacity building training to Construction Contractors staff for project management at Construction phase.

The CS/E and/or PIU will be responsible for conception and implementation of all monitoring activities during the Construction phase and Defect Liability Period (DLP) and provide training to relevant staff of the CC in order to ensure that all monitoring activities for both the Construction phase and Defect Liability Period can be executed in an appropriate manner.

The CS/E assignment should also include the update of this IEE and environmental management and monitoring plan (EMP) and detail environmental mitigation measures, when 90% and/or final design is provided.

Yerevan Municipality/PIU as Project owners/IA’s shall prepare semi-annual performance and monitoring reports including the progress of the implementation of the Environmental Management Plans (EMP), based on the monthly monitoring reports provided by CCs/(CS/E) and inspection/monitoring visits conducted by PIU Environmental and Social specialists. These reports shall be submitted to ADB for review and disclosure at Yerevan Municipality and ADB websites. The reports shall contain all discrepancies from the EMP and list all HSE relevant incidents and accidents, registered grievances, and grievance redress report (if any) that occur during the implementation of the resettlement measures.

The costs for implementing this IEE requirement, including survey/studies needs add up to about 60,000 USD (indicative 1.5% of the project total investment fund). The environmental costs for upgrading of the IEE and conducting EIA for project will add up to about 10,000 USD.

1.9 Conclusions

Only some low negative impacts (after implementation of mitigation measures provided in this IEE and to be detailed in Site Specific Environmental Management Plans) occur mainly during the construction phase. During the operation phase, the positive impacts are obvious and consist 22

Page 22 of 64 in a much more improved transport network in Yerevan with less contamination and impacts on environment and human health and safety (air, soils pollution, noise, vibration, dust etc.). Emissions of air pollutants is expected to be minimal, given the new buses will be fueled with CNG.

In this IEE for both sub-projects BD and CNG RF construction Environmental Management and Monitoring Plans have been developed. These EMPs shall be integral part of the tender documents. The mitigation and monitoring measures shall be contractually enforceable clauses and related to the bill of quantities and technical specifications.

Summarizing, if all mitigation measures are implemented, the overall Project can be constructed and operated without creating significant adverse HSSE impact.

2. Administrative, Policy and Legal Framework

2.1 Administrative Framework, Roles and Responsibilities

Client Yerevan Municipality is the Client of this Project (Responsibilities shall be defined/identified)

Project Implementing Agency (IA)

Roles and responsibilities of the PIA (must be) defined according to the Yerevan Municipality and ADB Loan agreement.

Yerevan Municipality as Client for the BD and CNG RF construction project (shall nominate) nominated the SUDIP PIU as Agency which shall be responsible for the implementation of the Project and as well for the Environmental Management and Monitoring Plans (EMP) of this IEE and for reporting on HSSE performance on semi- annual basis to ADB.

Construction Supervisor/Engineer (CS/E) (International)

To be hired/Selected

CS/E shall be represented by the Resident Engineer (RE) and shall be responsible for the IEE/EIA implementation supervision. The Environmental, Social, Health and Safety Specialist(s)of CS/E shall be the main contact point(s) between the Contractor(s) and the PIU for HSSE management plans implementation. The HSE specialists shall report to the RE. All written communications with the Contractor(s) concerning the SS EMP will be via the RE.

Construction Contractor (CC) (International and or Local) 23

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To be hired/selected.

Contractor Contractor(s) is(are) an entity(ies) responsible for the development and implementation of the Site Specific HSE Management and Monitoring plans to be developed based on this IEE, RA legislative and ADB safeguards requirements.

CC(s) shall appoint Environmental, Social, Health and Safety Specialist(s) (ESHS(s)) who(s) is(are) will be responsible for developing, implementing and monitoring the SS EMPs, as well report to the Construction Supervisor/Engineer and PIU on HSSE performance/compliance on monthly bases.

Contractor’s Staff Responsibilities for SS EMP Management

The persons within the Contractor´s team who will be directly responsible for supervising the SEMP activities will be:

a) Environmental, Social, Health and Safety Specialist(s) b) Contractor’s Site Engineer c) Contractor’s Site Foreman

2.2 Policy and Legal Framework

National Requirements for Environmental, Social, Health and Safety

List of the Project relevant laws, Decrees and Regulations governing the HSE management and Assessment is presented below:

· Law of the Republic of Armenia on Environmental Impact Assessment and Expertise, 2014, · RA Gov. Decree N1325-N on the Procedures on Public Notification and Consultations (Nov 19, 2014) · Applicable legislation for Archaeological “Chance Find” · Law of the Republic of Armenia on Flora (1999) · Law of the Republic of Armenia on Fauna (2000) · Law on Compensation Payments for Damages to Flora and Fauna due to Environmental Offences (2005) · Law of the Republic of Armenia on Rates of Environmental Charge (a law with the same title was first adopted in 2000), (2006) · Law of the Republic of Armenia on Atmosphere air protection (1994), · Code of the Republic of Armenia on Underground Resources (2011), · Land Code of Republic of Armenia (2001), · Water Code of Republic of Armenia (2002), · GOST 17.2.4.05-83 «Atmosphere. Aspiration method of dust determination». · Law of the Republic of Armenia on Atmosphere air protection (1994), · Government Decree N160-N on «Standards of threshold limit values (TLV) for atmospheric air pollutants in residential areas»

Page 24 of 64 · GOST 12.1.050-86 “Methods of measurement of noise in the workplaces”; · Sanitary Norms №2-III-11.3 on “Noise in the workplaces, in residential and public buildings and housing in construction areas” approved by the order of the RA Minister of Health №13806.03.2002. · Methodical Guidelines N4.3-001-07 on “Guidelines for the instrumental measurements of noise in the workplaces, in residential and public buildings and housing in construction areas”. · As criteria for determination of the conformity level of the actual noise in buildings, the normative values of the equivalent (average) and maximum sound levels are used, according to the Sanitary Norm №2-III-11.3 “Noise in the workplaces, in residential and public buildings and housing in construction areas”, approved by the order of the RA Minister of Health №13806.03.2002. · Decree of Minister of Health of RA on approval of HNN2.2.4-009-06 vibration hygienic norms at working areas, in residential and public buildings (17of May 2006 # 533-N). · Law of the Republic of Armenia on Wastes (2004). · Decree of the Minister of Nature Protection of the Republic of Armenia on confirmation of consumable waste list and production originating in the territory of RA (2006). · Government Decision No.121-H.30.01.2003 on the Rules and Procedures of Licensing of Re-Use, Rendering Harmless, Storage, Transport and Disposal of Hazardous Wastes in the Republic of Armenia. · Law of the Republic of Armenia on Waste Management and Sanitary cleaning (2011). · Government Decision on confirmation of approval order of waste emerging norms and project of its location limitations (# 2291-N2005) ·Government Decision on confirmation of technical regulation of “security rules in gas industry” (December 22, 2005 N 2399-N) ·Decree of ministry of health on confirmation of N 2.1.7. 004-10 sanitary rules and norms for “Hygiene requirements for car petrol, compressed natural gas and liquid compressed natural gas refueling stations (October 01, 2010 N 21-N) ·Government Decision on confirmation of the technical regulation for the minimum requirements for construction and operation of gas refueling stations (August 28, 2008 N 1101-N) · Code of the Republic of Armenia on Underground Resources (2011), · The law of the Republic of Armenia on Nature protection and nature utilization payments (1998) · Law of the Republic of Armenia on Automobile Roads (2006), · Law of the Republic of Armenia on Transport (1998), · The Law of the RA on Road Safety. · The Law of the RA on Streamlining of Technical Safety of October 24, 2005, · The Law of the RA on Protection of the Population in Emergency Situations of December 2, 1998, ·The Law of the RA on Energy of March 2001 · The Law of the RA on Approving the Technical Regulations on Individual Protection Means, December 14, 2004,

Page 25 of 64 · Decree of the RA Government on Approving the Procedure of Presenting Claims to the Technical Safety of Machines and Mechanisms, December 15,2005, Law of the RA, No. 2390N, · Decree of the RA Government on the Procedure of Mandatory Preliminary Medical Examination, on the Sphere of activities in which Workers are subject to Mandatory Medical Examination, on the List of the Extent and Frequency of Medical Examinations and Approving the Forms of Personal Sanitary (Medical) Card and List of Names of Persons Subject to Medical Examination of July 15, 2004, No. 1089-N, · Decree of the RA Government on Registration and Technical Investigation of Lethal or Serious Occupational Accidents and Man-made Accidents of April 13, 2006, No. 488- N, · Executive Order of the Ministry of Trade and Economic Development of the RA No. 169-N of July 31, 2006 On Approving the Forms of Prescriptions Banning the Operation of Hazardous Production Facilities and Individual Technical Means and Technical Equipment Installed at Hazardous Production Facilities in the event of violation of technical safety rules and standards, · Decree of the RA Government on Establishing Requirements to the Certification of Technical Safety of a Hazardous Production Facility of May 16, 2006 No 88-N · Government Decree 1631-N form 11.11. 2004 on approving the technical regulations of means of personal protection, · Decree N 291 from 06.03.2008 on blasting works. ·The decision of the RA Commandant of May 3, 2020 N 63 submitted by the WHO in the context of “COVID-19 in the frame of public health care at work observations and social measures”.

Genera lEIA requirements in the Republic of Armenia

Any stipulated activity or concept/program/ in the Republic of Armenia, which have certain impact on the environment in the result of their implementation and introduction, can be implemented in case of a positive conclusion of environmental expertise.

The impact of the stipulated activity or concept on the environment is assessed in the drafting and preparation phase and is submitted to the environmental expertise by the client.

The RA Law on Environmental Assessment and Expertise” of 2014 stipulates provisions related to the environmental impact assessment, its implementation and deadlines. Summary of the new low is provided below.

Summary of RA Law on Environmental Assessment and Expertise

The Law on Environmental Assessment and Expertise is the key law and contains the standard steps of the EA process for various projects and activities in Armenia, which was adopted in 2014. The law states that “Implementation of any activity in Armenia that may have an impact on the environment requires an EIA expert’s positive conclusion. The environmental impacts of the proposed physical (economic) activity or sectoral / regional development plan / project should be assessed at the preparatory stage”.

Page 26 of 64 The RA Law “On Environmental Impact Assessment and Expertise” (2014) defines provisions on environmental impact assessment, process implementation and conditions.

Follow-up steps for the EIA’s endorsement, as defined by national law, are set forth below.

7) The preliminary examination stages. At this stage preliminary information is given to the head (s) of the affected community (s) on the project (s) and public hearings are organized by the project initiator in conjunction with the head (s) of the community (s). The general information and notification of the project should be published on the web site or other public media by the project initiator and the affected community (s) seven days before the public hearing. According to the Draft Decision of the Government of the Republic of Armenia on public hearings, the notice must be published on the web sites not less than 7 days, and the program information should be available to the public no later than 3 days before.

2) Application should be submitted to the Ministry of Environment of the Republic of Armenia (not the “Environmental Impact Assessment Center” SNCO). This application includes a general description of the project, mitigation / reimbursement measures and the results of the first public hearing organized jointly by the community and the program managers.

3) within 30 days, the Ministry of Environment of the Republic of Armenia shall: 1) decide on the necessity of carrying out the state of environmental Impact expertise necessity; 2) according to the environmental impact degree of the program category (CNG RF = B category, New Bus Depot = Category G); 3) Provides a list of activities and the scope and depth of work required to prepare an Environmental Impact Assessment Report (the so-called EIA technical assignment). During this time, it is necessary that the second public hearing be held by the joint project developer, the affected community (s) and the Ministry of Environment of Armenia. The procedure for disseminating the results of the second public hearing is the same as during the first public hearing. 4) The Project Facilitator prepares the EIA report and submits it to the Ministry of Environment of the Republic of Armenia.

5) The next phase of the process is the environmental expertise. At this stage, which lasts for 40 days, Category B, the Ministry of Environment presents the EIA report to all involved and specialized parties (e.g. its departments / agencies, relevant institutions of the Academy of Science, Ministry of Health, Ministry of Energy etc.) as an internal procedure of the Ministry. The program owner is not involved in this procedure. At this stage the Project Initiator, together with the community (s) ‘s manager (s) and the Ministry, organizes the 3rd public hearing during which the full EIA report is presented to the public. The Ministry presents all comments and suggestions made by all stakeholders involved in the EIA report draft review, as well as key comments and suggestions raised during the 3rd public hearings. The project initiator makes changes to the draft or justifies the change in the draft.

6) Finally, the Ministry organizes the final public hearing during which it presents all comments and suggestions, the outcome of those comments and recommendations (whether the proposed amendments have been adopted) and gives a conclusion on the EIA report (approval or rejection).

Page 27 of 64 7) On the basis of the latter, the Ministry provides the final approval or rejection of the project / project, signed by the Minister. Steps 5-7 are included in the overall duration of the process (40 days in category B).

Based on the RA Law on Environmental Assessment and Expertise of 2014 requirement, Yerevan Municipality/PIU shall submit Application (including general description of the project, mitigation / reimbursement measures and the results of the first public hearing organized jointly by the community and the program managers) of Project EIA to the “Environmental Impact Expertise Center” SNCO of ME of RA for expertise and environmental permit (2nd stage) to obtain “None-Objection” for Project implementation.

2.3 International Agreements

With respect to handling of hazardous substances the Government of the Republic of Armenia ratified the Stockholm Convention and is a party of the Basel Convention. Full list of International Environmental Conventions and Protocols signed and ratified by RA is presented in Table 2. Below:

No Convention or Protocol, Name and Place In Force Signed Ratified Comment Convention on Wetlands of International Significance Ratified by 1 1975 1993 especially as Waterfowl Habitat (Ramsar, 1971) USSR Convention on Biological Diversity Re-registered in 2 1993 1992 1993 (Rio-De-Janeiro, 1992) UN 1993 3 Cartagena Protocol on Biological Safety (Cartagena, 2000) 2000 2004 UN Framework Convention on Climate Change (New York, Re-registered in 4 1994 1992 1993 1992) UN 1993 Re-registered in 5 Kyoto Protocol (Kyoto, 1997) 2002 UN 2003 Convention on Long-range Transboundary Air Pollution Re-registered in 6 1983 1996 (Geneva, 1979) UN 1997 Convention on Environmental Impact Assessment in a Re-registered in 1997 1996 Transboundary Context (Espoo, 1991) UN 1997 7 Protocol on Strategic Environmental Assessment 2003 (Kiev, 2003) Convention on the Transboundary Effects of Industrial Re-registered in 8 2000 1996 Accidents (Helsinki, 1992) UN 1997

Page 28 of 64 No Convention or Protocol, Name and Place In Force Signed Ratified Comment Protocol on Civil Liability and Compensation for Damage caused by the Transboundary Effects of Industrial Accidents 9 2003 on Transboundary Waters (Kiev, 2003) Re-registered in 10 UN Convention to Combat Desertification (Paris, 1994) 1996 1994 1997 UN 1997 Convention on the Control of Transboundary Movements Re-registered in 11 1992 1999 of Hazardous Wastes and their Disposal (Basel, 1989) UN 1999 Convention for the protection of Ozone Layer (Vienna, Re-registered in 12 1988 1999 1985) UN 1999 Montreal Protocol on Substances that Deplete the Ozone Re-registered in 13 1989 1999 Layer (Montreal, 1987) UN 1999 Convention on Access to Information, Public Participation 14 in Decision-Making and Access to Justice in Environmental 2001 1998 2001 Matters (Aarhus, 1998) Convention on the Prior Informed Consent Procedure for 15 Certain Hazardous Chemicals and Pesticides in 1998 2003 International Trade (Rotterdam, 1998) Convention on Protection and Use of Transboundary 16 1996 1999 Watercourses and International Lakes (Helsinki, 1992) 17 Protocol on Water and Health (London, 1999) 1999 Stockholm Convention on Persistent Organic Pollutants 18 2001 2003 (Stockholm, 2001) Convention on the Prohibition of Military or any Other Re-registered in 19 Hostile Use of Environmental Modification Techniques 1978 2001 UN 2002 (Geneva, 1976) 20 European Convention on Landscape (Florence, 2000) 2004 Convention on Protection of the World Cultural and 21 1993 Natural Heritage (Paris 1972) 22 Energy Charter Treaty (Lisbon, 1994) 1997 Energy Charter Protocol on Energy efficiency and Related 23 1997 Environmental Aspects (Lisbon, 1994) European Convention on Protection of Wild Nature and 34 1982 2006 Habitat (Bern, 1979) Table 2. List of International Environmental Conventions and Protocols signed and ratified by RA

2.4 International Financial Organizations requirements for Environmental Assessment

Asian Development Bank

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This IEE was carried out in accordance with the relevant ADB guidelines as there are: · Operations Manual Bank Policies(BP): Environmental Considerations in ADB Operations,2006. · Safeguard Policy Statement, June2009, effective since January 2010.

3. Description of the Project

3.1 Introduction

This document represents the primary version of Initial Environmental Examination (IEE) Report developed by “Investing Projects Implementation Unit Building up of Yerevan” CNCO (hereafter PIU) in 2020 and have an objective to deal with construction of Yerevan New Bas Depot (hereafter BD) to be located at Arshakuniats avenue and Shirak Street intersection adjacent area (on around 8ha land plot section) and Construction of Compressed Natural Gas Refueling Facility (hereafter CNG RF) within the limits of the existing/operating Jrvezh Bus Depot area.

The changes occurring to the Armenian economy in the early 1990s has affected the demand and quality of the public transport services in Yerevan. These changes have increased motorization, but also led to poor air quality, noise, traffic congestion, loss of green areas, and degraded historical buildings. To reverse the impacts of private motorization, the Government of Armenia developed the Sustainable Urban Development Investment Program (MFF) with ADB. Economic growth has brought widespread vehicle ownership, which has grown by 40% since 2004. The number of accidents in Yerevan has risen in parallel, from 260 fatalities in 2004 to more than 400 in 2008, with the number of injured more than doubling from 1,500 in 2004to 3,125 in 2008. Despite improvements in major arteries in the capital, the traffic signal system is still outdated and inadequate, which brings that in 2019 the Armenian police recorded a total of 4,715 accidents from January 1 through December 26, up by around 15 percent from 2018. The number of road casualties was slightly higher in 2018: 343 vs 335 in 2019. Still, the number of people injured in accidents soared from 5,950 to 6,678, according to the official statistics4.

Figure 3 – Traffic Data 2004 x 2008 (source: ADB)

4 ttps://www.azatutyun.am/a/30352878.html#:~:text=The%20Armenian%20police%20recorded%20a,according%20to%20the%2 0official%20statistics. 30

Page 30 of 64 Environmental protection is now another priority. Located in Ararat Valley, Yerevan has little natural ventilation, and congestion results in concentration of hazardous substances. In 2017 the share of road transport in the total emissions of the "Energy" sector was 24.8%5, Greenhouse gas emissions in the form of carbon dioxide are expected to increase by 160% for next 5 years. The limited number of bridges in Yerevan over the Hrazdan River creates bottlenecks and massive congestion during peak hours. In addition, a city bypass remains uncompleted, disallowing any diversion of passing traffic. Illegal and double parking and poorly enforced traffic laws further constrain mobility. In 2009, traffic exceeded design capacity on more than 20% of the road network, and a further 35% was about to reach its limit.

Figure 4 – Typical Wednesday P.M. Traffic at Central area of Yerevan (source: Google Maps) The Yerevan public transport system comprises microbuses, buses, trolleybuses, and metro routes. Its public transport infrastructure is aged, and vehicle fleet old and poorly maintained. Currently Yerevan has 10 trolleybus, 45 bus and 61 microbuses routes with approximately 1200 vehicles in the fleet. The average speed of the vehicles is between 14,5 kilometers per hour for trolleys and 20,5 kilometers per hour for buses and microbuses.

5 Report of the National Greenhouse Gas Cadastre of the Republic of Armenia, 1990-2017, w60T ww.env.am,60T 60Twww.nature- ic.am 31

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Figure 5 – Minimum x MaMaxximum operatperational sspeedpeed pperer tytype of vehicle (sousourcerce: 32erevan.am) Today, 85% of the passengers are ccaarrrriedied by unsubsidized prriivavate mmicicrorobubuses. While minminiibusesbuses spspaaredred YYeerevan a severe trtrananspportort ccrrisisisis in tthehe 11990990s, they nownow concontrribibuteute to a chaoaottic ssiituattuatiionon that has seen big and medium-ssiizedzed bbuusseses pupushed ooutut. SSeerrvrvivice qqualuality is pooroor due to ovveerrlloadingoadiingng and congestion. This shshiift hhasas seveverelyrely compromimissed the ffinaiinanancialcial susustainabstainabinabillityity of othherer ppububllic traranssppoort seserrvvicesces aandnd cauaused ininvevessttmentment backlcklogsogs for trorollleybuseybus andand mmetroetro, as fares are ttoooo lowlow to cover operating and renewal costs.

Figure 6 – IIdeadea of rrepeplacing Micricrobuses to Buses (source transport.yerevan.am) 3.2 Objeeccttive of the assassignignmentment

The Goovernvernmmentent of Armrmeenniaia is workingking wiwith the Euroropepean Baanknk fforor RReeccoonnstrucucttiion and Devevelopmelooppment ((EBEBRDD)) to prrorovideovideide a nnewew fflelleeet of busesbuses to rereepplplaceace thethe obobssooletelleteete exisxistinging flefleet. TheThe existiingng busbus dedepotsots areare sevevererelyely detedeterriiororatteded due to the lack of iinnvevesstmetmentnt ovverer the ppaast ttwowo ddeeccaaddeses. Connddiittiionsons areare detriimentimmental bothoth to the oopeopperratiionon of tthehe municiippal bus flleeet as wellell as to the well-being of the bus induindustrystry emmpplloyeesoyees.

3.3 New Bus Depot at Arshakuniatuniat aavenvenue aandnd ShirShirakak ssttrreet innttererseecctiionon 32

Page 32 of 64

As mentioned before, Arshakuniats depot capacity should be between 350-400 12-m buses, CNG fueled. To guarantee the best operation as possible and allow the depot to be auto-sufficient, the layout should consider, at least: - maintenance areas, - refueling areas, - washing/vacuuming area, - workshop, - deposits/storage areas - employees rest and leisure areas - administrative building Besides that, it is necessary to consider the best accessibility as possible, and, as an alternative to increase the future depot accessibility, the selected 8 hectares area is located at the south part of the available land plot, with access to both to Shirak street and Arshakuniats avenue (Figure 7) and second solution with both access to Shirak street (Figure 8).

Figure 7 – Selected area for the Bus Depot (8 hectares, 1stsolution)

Shirak Street

Entrance 2 Arshakuniats Avenue

Entrance 1

Page 33 of 64

Figure 1 – Selected area for the Bus Depot (8 hectares, 1st version)

Additionally, to the two proposed accesses, the depot will be served by a roundabout at the intersection of these two avenues, which allows the buses turn to all directions without the need of specific controlled street crossing at both accesses, reducing the need for traffic lights.

Only first solution was considered yet in this layouts/preliminary sketches attached to this report as Annex 1.

3.4 CNG Refueling Facility at Jrvezh Bus Depot

The proposed layout changes at Jrvezh depot considered that 100 CNG buses would arrive to Yerevan before the completion of Arshakuniats depot building works. With that, it was considered that it would be necessary to park 100 12-m CNG buses at this depot and also all filling system necessary to guarantee these buses operation. All changes also considered the existing diesel buses operation (that was not changed) and also aimed the start of an updating at the depot to allow a lower cost operation (better bus flow and disposition). To calculate the number of fuel dispensers it is important to define the fuel type, the number of buses, the bus fuel consumption, their daily mileage and the expected flow of the dispensers. The expected initial CNG bus capacity for the depot is around 100 buses. The fuel consumption and the daily mileage are not yet defined, so it will be necessary to consider average values for those items.

Detailed layouts of Jrvezh Bus Depot reconstruction and CNG Refueling construction are provided in Annex 1 of this IEE.

3.5 Scope and Methodology

The scope of this Project is to prepare the documents for ADB to obtain financing and to start the implementation of New Bus Depot construction at Arshakuniats avenue and Shirak street intersection on 8 ha land plot owned by Yerevan Municipality and Construction of CNG refueling station at Jrvezh Bus Depot to guarantee the fueling of 100 12m CNG buses.

The PIU environmental specialist was charged to develop this IEE based on Senior Infrastructure Design Engineer & Senior Depot Designer Report (version 1, June 2020, were only preliminary design approaches/layouts are provided and are/was subject of further changes/review), Rapid Environmental Assessment (REA) checklist conducted by ADB (L-GIT?) and on field survey of the PIU Environmental specialist.

Due to the COVID 19 pandemic restrictions in Armenia, as well absence of the reliable preliminary design (provided location of the New Bus Depot was removed from the initial

Page 34 of 64 location) the public consultations were not conducted. Only few private meetings/interviews with residents (3 interviews) and commercial entities (Renaissance Restaurant representative) were conducted by PIU environmental specialists. As It was recommended above, this IEE shall be updated with arrival of the 90% and/or final design, and based on this public consultation, information disclosure can be done within this IEE update period.

For CHG refueling facility construction as major concern raised by the Jrvezh Depot head was the Bus Depot parking and maintenance areas reduction due to the Construction works, which can create somehow dysfunctioning of the Bus Depot operations.

Based on the ADB policies requirements, public consultations will be conducted also by the Construction Contractor with likely participation of ADB national environmental consultant and PIU Environmental and Social specialists and Special Interested Groups (SIGs, Shengavit, Nor Norq administrative districts, Jrvezh bus depot, neighborhood residential houses and Comers representatives etc.) a prior to the commencement of the BD and CNG RF construction phase. Consultations must comprise disclosure of the BD and CNG RF construction design, likely HSE impacts, Previous Mitigation Measures, Monitoring plan and Grievance Redress Mechanism information according to the Site Specific EMP (SEMP) developed by Construction Contractor and approved by ADB and PIU. Concerns/issues raised during the public consultations (if any) and measures undertook or to be undertaken shall be reported by CC to PIU and shall be included in bi-annual Environmental Monitoring Report by PIU to be submitted to ADB.

Due to the fact, that there is no official international consensus on an agreed approach for assessing the significance of impacts on the environment, FICHTNER evaluation procedures were used. This transparent evaluation procedure is based upon FICHTNER’s extensive experience over the last fifteen years in performing environmental impact assessments and has proven to be a reliable method for assessing a project’s impacts on the environment. It includes identification, prediction (e.g. duration, intensity, severity, status, reversibility of the impact) and evaluation of the significance of impacts based on legal requirements. The focus of the used evaluation procedures to decide whether the Project is likely to cause significant adverse environmental effects resulting from the construction and operation after implementation of mitigation measures.

For the purpose of a transparent presentation and evaluation, a tabulated evaluation matrix applied. On the basis of a point scale, the severity of the particular environmental impact

Page 35 of 64 together with its general trend–that is negative or positive–is described. The evaluation scale applied is as follows:

Extent of impact:

 = high

 = medium  = low  = no impact  = Locally positive  = Regionally positive

For the judgment international standards like standards from the World Bank and the World Health Organization (WHO) are supported by national Armenian standards (seeChapters2). According to these standards the evaluation of impacts is done as follows (3):

Extent of impact Reason

High International and national standards are exceeded Medium Between international and national standards, international and national standards are barely met

Low International and national standards are met Table3: Evaluation of impacts using International and National Standards

With the presented method it can be clarified which environmental impacts are most important and for which impacts mitigation measures must be applied in order to reduce negative effects on the environment.

Category of the project is described/discussed in chapter 1.1 and 1.2.

Project location, General situation and description of environment are described In Chapter 1.3

Anticipated environmental Impacts and mitigation measures are described in chapter 1.4.

Alternatives are discussed in chapter 1.5.

Information Disclosure, Consultation, and participation is described in chapter 1.6.

This IEE was carried out in accordance with the relevant RA legal International requirements/standards and ADB guidelines as discussed in chapter 2.

Page 36 of 64 4. Evaluation of the impacts and previous mitigation measures for Pre- Construction and Construction phases

In the following table 4. The extent of impact is given under the pre-condition the mitigation measures as recommended are implemented. These mitigation measures are given in a separate column in this table. These measures are then repeated in the Environmental Management Plan and Mitigation Measures (Chapters 8) where among others the costs and responsibilities for implementation of these measures are given.

Page 37 of 64 Table4: Impact Assessment during the pre-construction and construction phase under consideration of possible mitigation measures

Extent of impact:  = high negative  = mediu mnegative  = low negative  = nil  = locally positive  = regionally positive Extent of Impact of/on impact Description Comments and mitigation measures

No additionall and has to be acquired for implementing the construction of New Bus depot at Arashakuniats-Shirak streets  intersection and CNG FR at Jrvezh Bus Depot. LAR impacts are expected during the Construction activities will be done over illegally cultivated agricultural areas (at least 20 small size land plots), around 65 fruit Construction of the New Bas depot. Illegally trees and 100 bushes will be cut.. Crops and vegetables damage during the works are not expected. If in any case crops and cultivated land plots (at least 20 small size vegetables are damaged out of ROW by access of workers/mechanisms to the construction site compensation payment shall Land Acquisition  land plots) will be impacted (e.g. Fruit trees, be done on-site during stringing procedure. Compensation payment for any damage shall be/is included in the CC and Use Bushes cutting, damaging of crops and contract as CC responsibility. Evaluation of values of fruit trees and bushes to be cut shall be done by licensed Company vegetables cultivated by neighborhood in order to compensate cultivators a prior to the cut and commencement of the construction works. Compensation residents). payment for any trees/bushes shall be responsibility of Yerevan Municipality. After tree/bushes cut/removal the construction works shall be done in fenced land plot area under CC responsibility.

All Construction measures will take place In case of trees and bushes cut, The greening/tree planting/landscaping plan/project (at least 1cut -6 planted trees, 1cut -6  inside the Yerevan city owned land plots and planted bushes) recommended/shall be developed and implemented by Construction Contractor (to be approved by PIU and Landscape in Jrvezh Bus Depot fenced limits. ADB) in order to compensate the damage to the environment. Selected area of the greening/tree planting/landscaping plan/project shall be chosen and approved by Yerevan Municipality. The selected land plot area is covered mainly Special measures, topsoil qualitative and quantitative survey to evaluate volume and quality of concerned topsoil of the with fertile land/topsoil (with approximately selected land plot shall be conducted at pre-construction phase.  Topsoil 0.2 till 1m depth in some section) and as it All this fertile topsoil will be disturbed/removed for the construction of the BD. Appropriate measures must be implemented mentioned above is cultivated by neighboring for its further proper storage and/or reuse according to this IEE, RA legislation and ADB safeguard requirements. residents. All this fertile topsoil will be Construction contractor shall develop and implement topsoil management and action plans based on data acquired during the disturbed/removed for the construction of the qualitative and quantitative survey done by licensed Company. The following main/major aspects shell be included in the site- BD. specific management plan for BD construction site: (i) removal of the topsoil with no quality damage at instant possible;(ii) temporary site definition of the topsoil accumulation and storage with easy accessibility for further transportation and reuse, with public access limitation; (iii) with precaution measures to avoid topsoil qualitative degradation, erosion; (iv) action plan for further reuse of topsoil to be approved by Yerevan Municipality/PIU and ADB, etc. 38

Page 38 of 64 Flora, Fauna, There is not any Protected Areas close to the Flora and fauna survey is recommended to be conducted during the design and pre-construction phase by CS/E National Parks,  Construction sites, all construction measures Wildlife will take place in municipal land plots of Sanctuaries, other “Industrial” or namely “Other” categories. Protected Areas The selected construction site for new Bus depot is entirely cultivated or used by neighborhood residents. Jrvezh bus depot is practically covered by pavement (asphalt and concrete), both construction areas are urbanized. All Construction measures will take place No cultural heritage (monuments etc.) and archeological sites are identified in the project area. Anyhow, “Chance Find” Cultural and  inside the Yerevan city owned land plots and approach must be considered and applied during the construction phase of the project by the Construction Contractor, Historical Sites in Jrvezh Bus Depot fenced limits. especially during the excavation, digging and/or trenching works to be done. No archaeological sites are affected. Extent of Impact of/on impact Description Comments and mitigation measures The construction activities will not have Checklist for Preliminary Climate Risk Screening completed (see annex 3) no major effect regarding climate change identified Climate Change any major effect regarding climate change 

Water Resources During the construction activities chemical There are no surface water streams flows close in both construction sites. Surface Water leak, oil from old equipment could pollute Underground waters discharge next to the “Renaissance” Restaurant , at the south edge of the selected land plot for and Groundwater the soil and introduced into the groundwater construction, which means that ground water level are high in this area (historical/archive data confirming this statement)  which level is evaluated high in the and risk of its contamination is high during the construction phase. Additional engineering efforts (e.g. drainage system to construction site, especially from end of the lowering the groundwater level) and measures, at design and construction phases, must be invested to avoid the water May till end of the July during the recharge contamination scenarios. Appropriate Site-Specific Management and Monitoring plan shall be developed and implemented of aquifer by snowmelt and surface runoff. based on this IEE management plans, RA and ADB safeguards requirements. This measure will result by only a small risk of groundwater pollution by e.g. chemical leaks, oil/fuel spills of mechanisms, heavy machines which can be avoided by proper maintenance. The cleaning of used oil shall be done at sealed areas. Specific protection measures shall be undertaken (e.g. use of plastic All construction related waste shall be accumulated in regular heaps within the Construction sites and regularly (latest by the end of the week) removed from the construction site only to the authorized dumpsite designated by Relevant Construction wastes (excavated subsoil, rocks, Municipality and approved by Consultant. New waste disposal areas shall not be created during the construction activities,

stones etc.) existing illegal landfill sites shall not be used. In case of selling wastes for recycling/reuse purposes it has to be ensured that only licensed companies take over the material. It shall not to be sold to individual private people. A prior the start of construction a proper waste management plan shall be prepared and implemented by the construction contractor.

Page 39 of 64 Household waste (HW) generated in construction camps shall be collected at the construction camps in appropriate bins Household waste will be generated during (segregation (plastic, paper, glass, metal etc.) of household wastes is recommended). Contract shall sign agreement with construction workers mainly in construction Yerevan municipality waste removal providing Services to remove HW to an official dumping site (In this case Waste  camps. Nubarashen waste disposal landfill) Chemical residuals, used oil and filters from machinery, heavy tracks, mechanisms shall be stored in appropriate containers (at Construction camps and/or Contractor main facilities) and in specially designated areas for (sealed floor, Chemicals residuals, Used oil and filters with drainage system of likely spills and or spill accumulation container) to avoid soil and ground water contamination. Then stored materials/substances can be re-used (e.g. used oil if cleaned) and/or delivered to the licensed Companies for further storage or elimination. Old/damaged spear parts, meta scrap shall be stored on specially designed (e.g. with concrete sealed floor) areas in Old/damaged spear parts, Metal Scrap, construction camps or in contractor main facilities until its delivery to the authorized recycling company. used batteries Used Batteries shall be stored in specially designed close storage areas with acid resistant sealing and with appropriate ventilation system at contractor main facilities before handling it’s to the licensed company for re-use/recycling of elimination. An Air Quality modeling (internationally recognized and acceptable for RA) shall be developed within final design stage by the design Contractor/Construction supervisor/Engineer and implemented in construction phase, based on Short-term air pollutant emissions (dust, data collected on instrumental measurements of dust (PM2.5, PM10), Sulfur Dioxide (SO2) and Nitrogen Dioxide Air Quality  SO2, NO2 etc.) by heavy machinery, (NO2) done by CS/E or DC and from the official data of the “Hydrometeorology and Monitoring Center” SNCO under mechanisms, trucks, vehicle scan occur the MOE. during the construction works. Site specific Air quality management and monitoring plans shall be developed based on Air quality modeling (to be approved by PIU and ADB) and implemented by Construction Contractors which shall include at least regular check of emissions of machines and vehicles, installation of air filters (if emissions are exciding RA and/or internationally recognized PMLs/PMCs), work plan and hours optimization to minimize emissions by minimizing working machineries and vehicles number at the same time in same site, dust suppression means application etc. Extent of Impact of/on impact Description Comments and mitigation measures

Possible damage of existing No overhead infrastructure at both construction sites.  infrastructures (el. and communication Identification of existing surface and underground infrastructures/communications, e.g. Utilities cables, surface and underground infrastructures/communications alignment archiving data desk survey, geophysical survey etc.) (and substitution plan Irrigation, fresh water, sewage, drainage, (if required) shall be done at pre-construction phase. Implementation of substitution plan will be conducted by gas) Contractor at Construction phase. Shortage of public water, el. etc. supply for short period is likely.

Page 40 of 64 “zero accident/incident ”target during the The construction contractor shall submit for approval by PIU and ADB at pre-construction phase and implement a Health construction (trenching, digging, excavation, and Safety Management System (HSMS) during construction. For that, a site specific Health and Safety Management Plan working in height, hoisting crane, lifting, (including training materials, Inductions, instructions, procedures, inspection checklists etc.) for the construction shall be Occupational  Health and Safety scaffolding, welding etc.) works. developed/upgraded prior start of the construction covering project specific activities (e.g. trenching, digging, excavation, working in height, hoisting crane, lifting, scaffolding, welding etc.). Likely traffic/heavy machinery caused It is recommended that the Contractor to be appointed shall be certified at ISO 9001 and 14001 and shall hold a valid incidents/accidents at construction camps, OHSAS 18001 certification or equivalents. sites and connecting road networks. Harm can be caused to workers health by noise and vibration triggered by general earthworks (excavation, compaction, etc.), drilling, traffic of vehicles, excavators, mobile cranes and other machinery, etc. expected during the construction Some construction works can cause high dust, phase. These MPs shall include list of mitigation measures, for e.g. provide workers with ear protection devices to be noise, vibration levels. used where 85 dB(A) are exceeded, work time shortage due to the high vibration at working site etc. according to the World Bank/ IFC General EHS Guideline, 2007, RA and other recognized international standards), machines and vehicles will be checked regularly to minimize the noise level. It is required to develop and implement site specific Noise and Vibration management and monitoring plans based relevant RA and international recognized requirements and ADB safeguard policy. Traffic management and control plan shall be developed and implemented for Construction sites and camps, as well traffic control plan for urban road network to be used by Construction machinery, heavy trucks and vehicles to avoid H&S incident and accidents. Dust suppression action plan shall be developed and implemented by Contractor to avoid excess pollution of air and workers health harms. All possible impacts caused by the construction works (heavy machinery activities, excavation, drilling etc.) shall be consulted and agreed with the neighborhood residents and commercial representatives a prior to the start of activities.

Site specific mitigation measures shall be implemented e.g. dust suppression, shortage of work hours of nose and Disturbances of neighborhood residential vibration triggered machineries out of working hours (20:00 to 7:00) etc. It is required to develop and implement site

Public Health houses and commercial buildings are likely specific Noise and Vibration management and monitoring plans based on relevant RA and international recognized  &Safety by dust, noise, vibration triggered by requirements and ADB safeguard policy. construction works Traffic management and control plan shall be developed and implemented for urban road network to be used by Traffic disturbance by heavy machinery, Construction machinery, heavy trucks and vehicles to avoid H&S accidents/incidents. Traffic management and control mechanisms and vehicles using the urban plan shall be developed and implemented as e.g. elaborate proper ways and time schedule through residential areas and road network is likely. urban road network and provide to drivers; implement reasonable speed limits for the vehicles; implement warning signs to inform about the possibility of risks by moving machineries; heavy machinery shall be equipped with flashing beacons to increase their visibility and audible warnings when reversing; drivers shall carry phone numbers of police stations along the transportation routes and of nearest hospital in case of an accident etc..

Page 41 of 64

5. Evaluation of the impacts and previous mitigation measures for Operation phase

Table5. Impact Assessment during the operation phase under consideration of possible mitigation measures

Extent ofimpact:  = highnegative  = mediumnegative  = lownegative  = nil  = locallypositive  = regionallypositive

Impact on/of Extent of impact Description and comments Mitigation measures

8 ha land plot with likely “fertile” All the BD area is/will designed with recreation zone (green zones), as well it is recommended/required to develop and topsoil will be affected, where about implement greening/tree planting/landscaping project (at least 1cut -3 planted trees, 1cut -6 planted bushes) at surrounding Landscape,  35% is cultivated by fruit trees, bushes, areas of the BD (Yerevan Municipality and/or Construction Contractor) in order to compensate the damage to the soil crops and vegetables. All these impacts environment. Selected area of the greening/tree planting/landscaping plan/project shall be chosen and approved by Yerevan resources can be compensated, as well ameliorated Municipality/PIU. As well removed topsoil from BD construction area will be used for recreation, landscaping of other if recommendations of this IEE will be degradation sites in Yerevan city. implemented. Flora, There is not any Protected Areas close to the Flora and fauna survey is recommended to be conducted during the design and pre-construction phase by CS/E Fauna, Construction sites, all construction measures National will take place in municipal land plots of Parks,  “Industrial” or namely “Other” categories. Wildlife, The selected construction site for new Bus Protected depot is entirely cultivated or used by Areas neighborhood residents. Jrvezh bus depot is practically covered by pavement (asphalt and concrete), both construction areas are urbanized.

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The Operations will not have any major effect regarding climate change. Meanwhile, improved urban transport system with CNG Climate fueling buses will contribute to the less Change  emission of greenhouse gases to the atmosphere and will have its small positive contribution to the amelioration of the air quality Impact on/of Extent of impact Description and comments Mitigation measures

The situation will be improved by Water Resources installation of new surface water drainage  and sewage treatment systems in BD and CNG RF areas. Used/damaged spare parts at the end-of-life, The Operator and/or Yerevan Municipality shall develop and implement the Bus Depos Environmental, Health & Safety Waste  used oils and other solid wastepossible Policy, Management System and Plans for waste and hazardous materials. generation by the technical and admin facilities of BD is likely. Improved urban transport system with CNG It is recommended to develop and implement air quality monitoring plan (at least for defect liability period by PIU and/or Air Quality  fueling buses will contribute to the less Construction Supervision/Consulting Contractor) to evaluate project impacts (mainly positive) on air quality of the Yerevan emission of greenhouse gases to the city atmosphere. The situation will be improved by new depot Occupational and CNG facilities, as well by Implementing Health &  EHS systems for urban transport services of Safety Yerevan city. Based on the project preliminary design it can The Project will result in a much more improved urban transport network and less contamination and impacts on be stated that the relevant RA and environment and human health and safety (air, soils pollution, noise, vibration, dust etc.) in Yerevan. Public Health & internationally accepted limit values triggered It is recommended to develop and implement air quality monitoring plan (at least for defect liability period by PIU and/or Safety (noise,  BD operations for neighborhood residents and Construction Supervision/Consulting Contractor) to evaluate project impacts (mainly positive) on air quality of the Yerevan vibration, air commercials will not be exceeded and city. quality) probably some of them (e.g. air quality) will be ameliorated.

Page 43 of 64 The Project will result in a more Socio- It is not expected that more employment will be created during operation.  reliable/improved urban transport network economic in Yerevan, as well, improved air quality  Aspects (CNG fueling buses), traffic and public safety.

Page 44 of 64 6. Contractor’s HSSE Obligations

6.1. General HSSE targets and objectives

The Health, Safety, Social and Environmental (HSSE) targets of the Project are: · “Zero accidents/incidents” · “Zero hazardous situations” to the environment · “Promotion of safety, welfare and health” of workers and public · “HSSE sound/friendly” working environment.

Considering the defined HSSE targets, the HSSE objectives for the Project are: · Conduct topsoil qualitative and quantitative survey, develop and implement topsoil management and monitoring plans, develop and implement topsoil reuse action plan and programs. · Develop and implement GRM)., · Develop and implement greening/tree planting/landscaping program to compensate the tree and bush cuts at BD area. · Conduct surface and underground infrastructures survey at pre-construction phase and implement action plan for those facilities’ safe deviation/reinstallations. · Conduct underground water survey and put in place measure to avoid its likely contamination by construction activities. · Develop and implement Noise, Vibration, Air quality modeling, management and monitoring plans, carry out the air quality modeling for construction and operational phases. · Develop/upgrade and implement HSSE management systems for Construction and Operation phases of the project. · Comply with the applicable RA laws, internationally recognized requirements/standards and ADB Safeguard Policy.

6.2. HSSE organization

In order to reach the general objectives given above, the Contractor shall develop, implement and operate an HSE Management System (HSEMS). This HSEMS is based on the generally existing HSSE policy and goals of the Contractor and on a Site Specific HSSE Management Plan that has to be specifically developed to this Project by the Contractor. This plan shall give all measures how to meet the outlined HSSE targets and goals.

The Contractor shall determine persons being responsible for all HSSE issues on all construction site(s). These HSSE specialists in charge shall prepare monthly records of all HSSE relevant grievances, incidences (e.g. worker’s LTIs, MTIs, public Grievances due to the dust, noise, vibration etc.), and keep an employment record giving name, age etc. of employed workers and residents. The HSSE officers will be responsible for keeping a high health and safety standard at the construction sites, commonly used sites (roads). They will also be responsible for regularly training of workers in HSE requirements and measures, for grievances follow-up and solutions.

Page 45 of 64 These HSSE officers will also take care that all sub-contractors follow this good HSE practice at the construction site(s). A monthly report shall be prepared and submitted to the Project owners (Yerevan Municipality/PIU) and to the Construction Supervisor/Engineer (CS/E).

Following key tasks shall be considered by the contractor in order to meet the targets and objectives as defined above:

· build up an HSSE team with all project team members (including at least 1 Social/LAR specialist, 1 HSE specialist (or 1 H&S specialist and 1 environmental specialist) · implement LAR activities according to the RA and ADB requirements, · perform HSSE training presenting all relevant governing documents and applicable legislative requirements related to HSSE, · implement measures to meet all risk acceptance criteria and HSSE objectives defined for Construction and CNG facilities projects, · implement HSSE requirements in all requisitions, including subcontractors, · implement HSSE requirements in all supply contracts, · set-up and maintain HSSE evaluation and decision-making system, · define and implement all HSSE permit requirements, · implement an office safety and clean desk policy, · Implement prevention measures due to the COVID 19 pandemic, · prepare an emergency preparedness and response plan.

The main focus of HSSE during construction is the preparation and consideration of a site- specific HSE plan and GRM to be prepared by the Construction Supervisor/Engineer and to be submitted to the Employer (PIU)and ADB for approval prior to mobilization. This SS HSE plan shall:

· consider the HSE targets and objectives defined above · provide all procedures required for performing HSE tasks that are inherently harmful and/or hazardous, e.g. topsoil removal and storage, performing excavations and trenching, work at heights, lifting/ hoisting operations, working with hazardous, dangerous or flammable material or goods, welding, scaffolding, solid and hazardous waste disposal etc.

Any deviation to the HSE requirements must be reported in writing to the Client (Yerevan Municipality/PIU) and ADB for approval. The Contractor shall be responsible for promoting HSSE awareness among his employees as well as those of his subcontractors, suppliers, visitors, and persons delivering materials and equipment.

6.3. Specific HSE requirements during construction (work and public safety)

The following requirements are the minimum requirements with respect to HSE at the construction site. The Client and ADB shall have the right to extend these HSE requirements in case of the needed actions to fulfill the HSE targets and objectives:

· Special health and safety awareness program shall be implemented for construction workers on the COVID-19 risks, relevant governmental regulations and guidelines on

Page 46 of 64 their prevention6 and control aligned with international good practice guidelines7 as an integral special part of Contractor’s SS HSE Plan developed in consultation with relevant public health authorities, medical officers and specialists. The Plan developed by the relevant assistance of YM PIU and Construction supervision consultant shall include and implement also the necessary mitigation measures, as well as the budgetary and human resources to fully implement and monitor the Contractor’s SS HSE Plan, as well as requirements on timely notification of CS/E, PIU and ADB. · Special health and safety awareness program for sexually transmitted diseases and HIV/AIDS. · The Contractor’s approved Site Specific HSE plan will be the only applicable and valid HSE plan at site outlining and specifying details regarding HSE. Separate subcontractor or supplier’s HSE company policies, HSE management systems or HSE plans are not acceptable at site. · No personnel or employees are allowed to perform works, tasks or operations which they are not specifically trained and certified to perform. All works will be subject to work permits. No works are allowed to perform without an applicable and valid permit to work. · At arrival of any personnel on site the Contractor shall secure that they have or will get there quired training/ certification before any works, tasks or operations are assigned. · The Contractor shall ensure that his own, his subcontractors’ and suppliers’ personnel at all times follow all site specific HSE rules and requirements whenever they are present on site. · The Contractor shall ensure that first aid kits including “eye washers” are available at all work locations and that first aid kits are always complete. The Contractor shall ensure that at least one defibrillator will be available on each construction site. · If applicable, the Contractor shall inform himself about the potential presence of poisonous animals and take all required precautions to avoid accidents. · The Contractor shall ensure that his personnel have passed an elementary first aid training including cardiac arrest treatment. · The Contractor shall ensure that PPEs are handed out and are always worn by all employees or personnel at working places. Hardhat, safety footwear, working gloves and protective outer clothing suitable for the local climate conditions shall be worn at all working locations. Hearing protection shall be worn in all areas with noise levels at or above 85db (A). · All electrical hand tools, extension cables, transportable generators, other non-permanent electrical equipment etc. shall undergo short circuit checks by a certified and registered electrician minimum per every three (3) months, prevailing national or international rules. · Use of drugs and alcohol is strictly prohibited when working or being present on site. Personnel reporting for work that are under the influence of alcohol and/or drugs shall be denied access to site. In such cases, the Employer expects the Contractor to intervene with

6RA Commandant Decree N27 from March 31, 2020. On the restrictions conditioned by legal regime of emergency applied on the whole territory of Republic of Armenia. Appendix 3 The Rules on prevention of the new type coronavirus disease (COVID-19) for the organizations Available here; https://www.gov.am/am/safety-rules/. Commandant Decree N51 from April 22, 2020 On the supplementations for the RA Commandant Decree N27 from March 31, 2020. Available here: https://www.arlis.am/DocumentView.aspx?docid=141594 7 World Health Organization .2020. Considerations for public health and social measures in the workplace in the context of COVID-19. Geneva: https://www.who.int/publications-detail/considerations-for-public-health-and-social-measures-in-the-workplace-in-the-context-of-covid-19; HM Government. 2020. Working safety during COVID-19 in construction and other outdoor work. Guidance for employers, employees and the self- employed: https://assets.publishing.service.gov.uk/media/5eb961bfe90e070834b6675f/working-safety-during-covid-19-construction-outdoors-110520.pdf. The Canadian Construction Association-COVID19 standard Protocols; https://www.cca-acc.com/wp-content/uploads/2020/04/CCA-COVID-19-Standardized-Protokols-for-All-Canadian- Construction-Sites-04-16-20.pdf 47

Page 47 of 64 appropriate measures according to Contractors’ terms of employment in order to prevent recurrence. However, the Employer reserves the right to deny continued access to site to such person(s) without further notice if the site safety and security in any way otherwise is felt threatened.

The implementation of the HSEMS System and the follow up of measures as derived from the IEE to the Project shall be regularly monitored by the Construction Supervisor/Engineer in cooperation with the Project’s owner Yerevan Municipality/PIU. It is recommended that this monitoring is supported by an internationally experienced specialist and/or company who will supervise the construction site on monthly bases and report to PIU and ADB.

7. Grievance Redress Mechanism

In the course of the construction process, people affected by the Project may suffer from accidental negative impacts or feel otherwise treated unjustly.

This might happen for various reasons: the contractor does not adhere to sound construction principles, health hazards were incidentally produced, working conditions are found unacceptable, unexpected downstream impacts / environmental pollution were incidentally produced, damages to the goods (fencing, cultivated plants, trees, bushes, crops, vegetables etc.), individual property are not paid for or misunderstandings have arisen and so forth.

Two scenarios can be distinguished:

a) accidental environmental pollution (i.e. oil spills), b) individual grievances related to damage of health, goods, property, or other complaints (i.e. un-compensated disturbances (damages, noise, odor etc.).

a) In case of accidental environmental pollution, the local / national environmental authority will have to be directly informed and legal procedures started.

Page 48 of 64 Environment Protection Authorities file an administrative case on condemnation to physical or legal entity through the Contractor ’s or Beneficiary’s activities

Visiting the damaged site by environmental authority representatives with chemical laboratory assistant to take samples (especially in the case of chemical pollution) and drawing up are port on the specific case

Analysis at the Chemical Laboratory

Calculation of the environmental damage according to officially existing and approved methods

Address National Court on the basis of the environmental authorities report regarding any damage Analysis from the Chemical Laboratory considers the case on two types of damage: 1. Environmental damage; 2. Economic damage. The Court decides on the amount of penalties to be paid by the party at fault and an order to remove consequences of pollution/damage and making reclamation works on own account.

b) In the case of individual grievances or disagreement with procedures of consultation, notification or valuation, people are encouraged to lodge their complaints with the responsible grievance redress mechanism. The rationale behind is that people can get their problems solved and grievances redressed in a timely and effective manner without directly addressing the court. APs should be able to use a variety of channels to access the GRM.

Current Practice In current practice PIU buys terrain or establishes servitude agreements (no purchase of legal land title), i.e. for access roads a servitude an agreement is made. Land is only bought for permanent use in case facilities construction if it is private land.

According to the national legal framework, official valuation and compensation is made according to market value plus 15% and mutual agreement is reached. As the agreement is mutual, there is no precedence of taking an issue to court, but the possibility to go to court exists.

Should there be complaints, they need to be addressed to PIU, who delegates a person in charge to solve the issue. There are few grievances, according to PIU which are solved or are under court.

For this project no land acquisition required, only Goods (fruit trees, bushes, crops, vegetables, damaged fences, communications if any) compensation are envisaged, based on LAR activities like evaluation of trees, buses, crops and vegetables number/volume and values to be damaged by licensed Company/organization according to the RA legislation and ADB operational policies and procedures, following by compensation by client (Yerevan Municipality/PIU).

Page 49 of 64

Recommendations According to ADB Accountability Mechanism an effective mechanism to address the grievances of people adversely affected by ADB-financed projects and ensure compliance with ADB operational policies and procedures is fundamental to equitable and sustainable development (ADBAM, 2012). However, especially vulnerable people do often not have sufficient trust in institutions and experiences with official complaints to voice them, which makes additional efforts in grievance redress necessary.

In order to ensure compliance with ADB guidelines the existing grievance mechanism of PIU needs to be formalized and made more accessible to AP. Outreach activities should be conducted aimed at making the GRM better known and understood by APs.

A grievance committee will have to be established. Members of the grievance committee will be the construction contractor, Yerevan Municipality/PIU and district administration. The environmental authority in charge and civil society, including a lawyer/ legal assistant for APs (e.g. NGOs, CSOs) will be charged with regular monitoring of grievances redress. An external survey (through an NGO) among APs is recommended. A budget for monitoring will need to be included in the CC budget.

The main objectives of mediating conflicts and having a grievance redress mechanism are to:

a) reach mutually agreed solutions satisfactory to both the Project and the PAP b) cut down on lengthy litigation processes; and c) prevent delay in project implementation. Set-up of Grievance Committee:

The contractor is obliged to carry out the work in accordance with the contractual requirements that include: · a provisional sum for grievance redress · a person of staff responsible for grievance procedure (including first contact, periodical site visiting of mitigation measure to be implemented by contractor, record keeping of filed complaints and follow up, periodic reporting) · a telephone line, e-mail address and contact name on project information boards.

During consultation procedure the AP shall be notified orally or in written form about their rights and the procedure of complaints introduction. The grievance mechanism has to be locally implemented at the level of community institutions and local self-government. Distribution of leaflets as well as putting up information boards are an effective way of distributing information including contact addresses and telephone numbers to be contacted. A professional attitude to accept complaints in a friendly manner and offering all possible help is a crucial qualification for the staff charged with grievance collection. A grievance survey in potentially affected communities will be most beneficial to raise project acceptance within the local population. Lodging complaints and grievance resolution must be cost free for APs.

Ina first step, complaints resolution will be attempted at the community level in a negotiation procedure with an informal mediator and community authorities. If the grievance persists, a grievance form can be submitted at the responsible committee under the responsibility of the 50

Page 50 of 64 authorized body /YM PIU. The committee then decides whether to settle or go to court. The decision has to be taken within 15 days. In case of failure of the grievance redress system, the APs can submit their case to the appropriate court of law.

The contractor will be responsible to include a social specialist to:

· coordinate the grievance redress procedure · arbitrate grievances with contractor, AP and local administration /community leader · liaison with relevant Ministries · liaison with the court · documentation of all grievances and resolution procedure.

District leaders will act as informal mediators in case of complaints. However, APs have the option to choose a different representative or directly liaison with the YM PIU staff, designated for grievance redress. All grievances and their resolution process shall be documented.

NGOs will monitor grievance redress negotiations, assist with grievance arbitration, raise public awareness. APs need to be informed that in case of problems with the local administration they can address NGO staff or the construction supervision consultant/engineer to follow up their complaint.

The aggrieved person is encouraged to proceed in the following way:

a) Contact CC’s designated grievance staff /grievance committee representative during periodical site visits in person or via designated telephone number or via the district leader or NGO staff. b) Lodge complaint and provide information on the case. c) Agree with the CC on specific mitigation measure. d) Agree with the contractor on time limit for grievance settlement. Grievances have to be settled within two weeks, or as otherwise specified in scheduled agreement. e) Sign if the mitigation measure has been implemented as agreed. f) Seek redress from YM PIU if not satisfied with the abovementioned procedure g) Involve appropriate NGOs or construction supervision consultant/engineer to liaison with YM PIU and constructor h) Seek redress from court if all else fails.

All efforts will be made to settle the issues at the PIU level through community consultation. If not, possible attempts will be made to resolve the issues at the PGCC level to avoid the judicial process and minimize litigation as much as possible. All complaints and resolutions will be properly documented by the PIU and be available for review and monitoring and evaluation purposes.

Page 51 of 64 Grievance Redress Chart:

Impacted person

Grievance

The grievance

has been GriGrieevavancncee ccoommmmiittee (CC(CC,, HYMVE PIN/U,EP DSiOstr, ict redressed, AMdarmzin iAstrdmationinist)r ation) compensation has been r e d ss i ng provided a nd

Grievance is not redressed The grievance has been redressed, SoSluotionlutio wni twh ithpa rpaticripatticipionation of tohfe t hePIC C S/C

c on s i d e r ing compensation has been provided The grievance is not

g r ie van ce redressed The grievance

on has been

Address to YM PIU redressed, Address to HVEN/EPSO compensation has been provided The grievance is not redressed

C o mmit t e /Boa rd Through NGO

Appliance to a Applying in the framework of national court ADB mechanism on responsibility (accountability)

The grievance mechanism is designed to avoid lengthy court procedures but does not limit the citizen’s right to submit the case straight to the court of law just in the first stage of grievance process.

The Asian Development Bank (ADB) is not directly apart of the grievance procedure but shall receive reports, which complaints were received and how they have been followed up / mitigated.

The constructor shall include the provisions for the grievance mechanism and monitoring of the GRM in his budget.

Page 52 of 64

8. Environmental Management Plan

8.1 Construction of New Bus Depot at Arshakuniats avenue and Shirak street intersection

The major HSSE threat arising from the Project and recommendations to mitigate/avoid likely HSE impacts are as follows: - presence of illegally occupied land plots, which are mainly used for gardening (vegetables, crops, fruit trees, bushes) by neighboring residents. Around of 30-35% of the selected plot for the construction of New Bus Depot area is planted by fruit trees (approximately 65 trees) and Bushes (more than 100 bushes) which must be cut/removed during the construction. - presence of likely underground communications (old and new once) with non-identified alignments (HV electrical cables, Communication cables, drinking, irrigation, water, sewerage pipelines and old underground water drainage system (according to the neighboring residents, non-functioning/operating now for last 30 years) that can be damaged during the construction works and create temporary dysfunctioning of above mentioned systems (sewerage, drainage, irrigation) and supplies (water, electricity, gas, cable communication). - The selected land plot area is covered mainly with fertile land/topsoil (with approximately 0.2 till 1m depth in some section) and as it mentioned above is cultivated by neighboring residents. All this fertile topsoil will be disturbed/removed for the construction of the BD. - underground waters discharge next to the “Renaissance” Restaurant , at the south edge of the selected land plot for construction, which means that ground water level are high in this area (historical/archive data confirming this statement) and risk of its contamination is high during the construction phase.

8.2 Mitigation Measures, Responsibilities and Financing

Beside others, all these mitigation measures as discussed in the Chapters 1.9 and 8.1 and are listed in the following tables 6 (including needed monitoring measures in tables 7) giving responsibilities for implementation and a cost estimate. These measures will be an activity of this Construction Project and shall be financed under the loan (summarizing costs of all environmental management measures are given in Chapter 8.3

Page 53 of 64 8.2.1. Mitigation measures

Table 6. Mitigation measures and their management

Potential Proposed Mitigation Measure Institutional Project Stage Project Activity Environmental Cost Estimates Responsibility Impact on/by Survey and evaluation of fruit trees, bushes number Trees, bushes LAR activities and values by licensed Company/Organization/ DC and/or CS/E 5,000 USD cutting Expert

To be Trees, bushes LAR activities Compensation of cut trees/bushes YM/PIU evaluated by cutting survey Ari pollution, Included in impact on Air quality (Dust - PM2.5, PM10), Sulfur Dioxide the Baseline monitoring survey (air neighborhood (SO2) and Nitrogen Dioxide (NO2), noise and Supervision Pre - quality, noise and vibration), Air DC and/or CS/E residential and vibration modeling cost Construction quality modeling commercial areas ) and residents

Damaged 15,000 USD infrastructures, Surface and underground likely pollution of Archiving data desk and field (geophysical etc.) infrastructures/communications soils, water and DC and/or CS/E surveys by licensed Company/Organization/expert alignment identification air, harms to the workers and public health & Safety

Page 54 of 64 Assessment of 8ha topsoil Damage to “fertile” Qualitative and quantitative tope soil survey by qualitative and quantitative DC and/or CS/E topsoil licensed Company/Organization/expert characteristics 10,000 USD Likely YM PIU and/or contamination of Archiving data desk and field (hydrogeological, DC (CS/E) Underground water balance and underground engineering geological e.g. drilling, pumping tests level assessment waters, etc., aquifer formations characteristics definition construction etc.) surveys by licensed Company/Organization foundations flood 20,000 USD Potential Proposed Mitigation Measure Institutional Project Stage Project Activity Environmental Cost Estimates Responsibility Impact on/by Topsoil removal Damage, Topsoil proper removal and storage management, Included in contamination, monitoring and action plans development and CC construction erosion implementation cost Vegetation Clearing Damage to the Included in vegetation CC construction during the cost topsoil removal Develop a Site-Specific Health, Safety and CC Environmental Management Plan (HSE Plan) to Included in General Worker’s the construction activities and implement the construction Health and Safety resulting Health, Safety and Environmental cost

Management System (HSEMS). General construction activities Included in Employment CC shall comply with national labor laws and CC construction Labor conditions international core labor standards cost

Page 55 of 64 Construction CC shall provide appropriate construction work Included in phase camps to workers complying with H&S and construction Construction Work environmental local and international cost CC Camps requirements. Construction work camps management plan shall be developed and implemented to insure CWC EH&S standards CC shall develop and implement quarry, borrow Included in Quarry and borrow pits and material dumping site management construction CC pits, dumping site plans according to the local and international cost requirements

Concrete CC shall develop and implement Concrete Included in batching and batching and asphalt plants CC construction asphalt plants EH&S management plans according to the local cost and international requirements

Noise emission Included in All workers shall be fitted with ear plugs and ear directed to CC construction protection devices. workers cost Noise emission Good management will avoid needless truck Included in directed to the movements; no truck movements in inhabited CC construction population areas between 20:00 and 7:00. cost Traffic Traffic management and control plans shall be Included in developed and maintained at construction sites, construction CC as well for urban road network sections to be cost used by Construction heavy machinery, vehicles Included in Spilling Good maintenance of machines/trucks, proper CC construction oil/fuel/chemicals handling of chemicals cost

Page 56 of 64 Air pollution by Included in Good maintenance of the machines and truck will heavy machines CC construction reduce exhausts and trucks cost Water pollution Included in Good maintenance of machines/trucks, proper by CC construction handling of chemicals oil/fuel/chemicals cost Construction and Hazardous and household wastes management plan Included in household waste shall be developed and implemented: All construction construction and household wastes properly CC cost accumulated in Construction sites shall be removed periodically to the authorized landfills

Aire quality monitoring (at least for defect liability

Air quality period) shall be done to evaluate project impacts 10,000 USD CS/E (mainly positive) on air quality of the Yerevan city.

Waste management plan shall be developed and implemented by Operator. All used/old spear parts,

used oils, batteries, etc. wastes generated by Included in

Wastes handling operations shall be properly stored at Depot sites in Operator operational

specially assigned close and open areas and handled costs

General Operations to the authorized/licensed Companies for further

re-use and or elimination.

Health, Safety and Environmental Management Included in Operation Occupational System shall be developed and implemented by Operator operational phase Health & Safety Operator costs Special traffic control system (speed Included in Public Health limitation, signs, barriers etc.) for Depots and operational &Safety CNG RF operations site entrances/exits shall Operator costs be developed and implemented.

Page 57 of 64

8.2.2. Monitoring Measures

Table7. Monitoring Measures for Construction and Operational Phases

Project Stage Monitoring Parameters to be Location Measurement Frequency Responsibilities Cost Estimates measure monitored

In general, Through audits by: Regularly during ensure that All mitigation Site visits construction by CS/E (4 Included in mitigation actions as given in All construction • CS/E and time/month) and PIU CS/E and PIU activities are the Chapters sites • visual YM PIU (2 time/month) costs implemented 4 and 9 1.5 inspections

and executed interviews record of findings

Construction At the points According to the site- Air quality Dust (PM2.5, defined by site Included in CC specific monitoring CC and CS/E monitoring PM10), specific By licensed and CS/E costs plan monitoring plan company

RA and At the points According to the site- Noise, vibration Internationally defined by site By licensed Included in CC specific monitoring CC and CS/E monitoring recognized specific company and CS/E costs plan standards monitoring plan

Dust (PM2.5, At the points According to the Air PM10), Sulfur Air quality defined by site By licensed quality modeling Included in Operation Dioxide (SO2) CS/E monitoring specific company points during the CS/E costs and Nitrogen monitoring plan defect liability period Dioxide (NO2)

Page 58 of 64

8.2.3. Summary of Costs for implementation of the EMP

Most of the costs for mitigation of the impacts during the construction period are included in the regular construction costs. Extra costs with respect to environmental mitigation are related to additional measures to ensure safe management of the topsoil, existing utilities, underground water pollution and air quality control. Table8. Summary of costs for EMP implementation

Activities Phase Issue Costs (USD) Survey and evaluation of fruit Pre Trees, bushes 5,000 trees, bushes number and construction cutting values by licensed Company/Organization/ Expert Archiving data desk and field Pre Damaged 15,000 (geophysical etc.) surveys by construction infrastructures, licensed likely pollution Company/Organization/expert of soils, water and air, harms to the workers and public health & Safety Assessment of 8ha topsoil Damage to Pre qualitative and quantitative “fertile” topsoil 10,000 construction characteristics Likely contamination of underground Underground water balance waters, 20,000 and level assessment construction foundations flood 90% or Final Pre design probably IEE/EIA upgrade 10,000 construction will bring design changes Noise, Vibration and Air Construction, Air pollution 10,000 Quality baseline survey shell be Operation during the conducted, Air quality construction and modeling (at least for defect operation liability period) shall be done to evaluate project impacts (mainly positive) on air quality of the Yerevan city. Total 70,000

Page 59 of 64 9. Conclusions and Recommendations

Only some low negative impacts (after implementation of mitigation measures provided in this IEE and to be detailed in Site Specific/Construction Management plans) occur mainly during the construction phase. During the operation phase, the positive impacts are obvious and consist in a much more improved transport network in Yerevan with less contamination and impacts on environment and human health and safety (air, soils pollution, noise, vibration, dust etc.). Emissions of air pollutants is expected to be minimal, given the new buses will be fueled with CNG.

Most critical HSSE impacts identified for DB and CHG RF construction project (that can be avoided or mitigated by MPs during the construction phase) are:

- presence of illegally occupied land plots, which are mainly used for gardening (vegetables, crops, fruit trees, bushes) by neighboring residents. Around of 30-35% of the selected plot for the construction of New Bus Depot area is planted by fruit trees (approximately 65 trees) and Bushes (more than 100 bushes) which must be cut/removed during the construction. Recommendation: Resettlement actions (LAR) shall be developed and implemented to minimize impacts and reimburse/compensate land plots cultivators for crops and fruit trees, bushes. The greening/tree planting/landscaping plan/project (at least 1cut -6 planted trees, 1cut -6 planted bushes) shall be developed and implemented by Construction Contractor (to be approved by PIU and ADB) in order to compensate the damage to the environment. Selected area of the greening/tree planting/landscaping plan/project shall be chosen and approved by Yerevan Municipality.

- presence of likely underground communications (old and new once) with non-identified alignments (HV electrical cables, Communication cables, drinking, irrigation, water, sewerage pipelines and old underground water drainage system) that can be damaged during the construction works and create temporary dysfunctioning of above mentioned systems. Recommendation: Additional engineering efforts (like infrastructures/communications alignment archiving data desk survey, geophysical survey etc.) shall be implemented by Design/CS/S and/or Construction Contractors during the design/pre-construction and construction phases to identify all underground communications and its safe removal and/or replacement.

- The selected land plot area is covered mainly with “fertile” land/topsoil (with approximately 0.2 till 1m depth in some section) and as it mentioned above is cultivated by neighboring residents. All this fertile topsoil will be disturbed/removed for the construction of the BD. Recommendation: Special measures shall (topsoil qualitative and quantitative survey) be undertaken to evaluate volume and quality of concerned topsoil of the selected land plot. Site Specific Management and monitoring plans shall be developed and

Page 60 of 64 implemented for proper removal, conservation and reuse based on this IEE, RA and ADB safeguard requirements.

- underground waters discharge next to the “Renaissance” Restaurant , at the south edge of the selected land plot for construction, which means that ground water level are high in this area (historical/archive data confirming this statement) and risk of its contamination is high during the construction phase. Recommendation: Additional engineering efforts (e.g. Hydrogeological survey/study, drainage system to lowering the groundwater level) and measures, at design/pre- construction and construction phases, must be invested to avoid the water contamination scenarios. Appropriate Site-Specific Management and Monitoring plan shall be developed and implemented based on this IEE management plans, RA and ADB safeguards requirements.

- Use of existing urban road network with high density traffic will be impacted during the project both component construction works. Recommendation: Site specific Traffic management and control plans shall be developed and implemented, based on this IEE and on RA and ADB safeguards requirements.

In this IEE for both sub-projects BD and CNG RF constructions Environmental Management and Monitoring Plans have been developed. These EMPs shall be integral part of the tender documents to the sub-project concerned and if required shall be updated with arrival of 90% and/or Final Design document. The mitigation and monitoring measures shall be contractually enforceable clauses and relate to the bill of quantities and technical specifications.

Summarizing, if all mitigation measures are implemented, the overall Project can be constructed and operated without creating significant adverse environmental impact. The positive impacts are obvious and consist in a much more improved urban transport network and less contamination and impacts on environment and human health and safety (air, soils pollution, noise, vibration, dust etc.) in Yerevan.

Page 61 of 64

Annex 1. Report- NEW BUS DEPOT Arshakunyats SUDIP1 .docx

Annex 2.

Շենգավիթ համայնքում դեպոյի համար նախատեսված տարածքի հնագիտական-մշակութային իրավիճակը Արշակունյաց և Շիրակ պողոտաների հատման կետից հյուսիս` Շիրակի պողոտայի աջակողմյան հատվածում գտնվող` դեպոյի ամար նախատեսված տարածքի քարտեզագրության ուսումնասիրության արդյունքում պարզել ենք, որ համաձայն Երևան քաղաքի Շենգավիթ համայնքի պատմամշակութային հուշարձանների պահպանական գոտիների նախագծի հետ համադրության, ինչպես նաև ՀՀ Երևան քաղաքի պատմության և մշակույթի անշարժ հուշարձանների ցուցակում (հաստատված ՀՀ կառավարության 7 հոկտեմբերի 2004 թվականի N 1616-Ն որոշմամբ) արտացոլված միավորների` այստեղ պահպանության ենթակա տարածք կամ միավոր չկա: Սահմանազատված տարածքում պատմամշակութային բնույթի խոչնդոտներ չկան: Միևնույն ժամանակ, նախկին ծրագրերի իրականացման ընթացքում (Preparing the Yerevan Sustainable Urban Transport Investment Program. Archaeological impact of Project 2 – Shirak Street – Argavand Highway (Preliminary report), 2010) մեր անձնակազմի կողմից խնդրո առարկա տեղանքը ենթարկվել է նախնական ուսումնասիրության, որտեղից հավաքվել են հնագիտական հետաքրքրություն ներկայացնող խեցանոթների բեկորներ, սակայն շինությունների, կառույցների հետքեր, հնագիտական շերտերի առկայություն չի փաստագրվել: Ասվածից ելնելով, խնդրում ենք շինարարական աշխատանքների ընթացքում (հողահեռացում, հիմքերի փորում, միջամտություն նստվածքներին) աջակցություն, որպեսզի իրականացվի տարածքի հնագիտական դիտարկում` մշակութային արժեք ներկայացնող որևէ միավորի հնարավոր խաթարումից խուսափելու համար:

09.12.2020

Բորիս Գասպարյան 62

Page 62 of 64 ՀՀ ԳԱԱ հնագիտության և ազգագրության ինստիտուտի գիտաշախատող

Annex 3 Checklist for Preliminary Climate Risk Screening

Country/Project Title: Armenia / Yerevan Sustainable Urban Development Investment Project Yerevan New Bus Depot and Jrvezh Bus Depot CNG RF Construction

Sector : Urban Development Subsector: Division/Department:

Screening Questions Score Remarks8

Location and Is siting and/or routing of the project (or its 0 Storm water drainage system of the depot and Design of project components) likely to be affected by climate CHG will be designed to a specific return period conditions including extreme weather-related as per standards. events such as floods, droughts, storms, landslides? No any water stream (rivers) close to the construction sites that can be affected by project activities.

Extreme weather-related events such as floods, droughts, storms, landslides are not likely in project area

Would the project design need to consider any 1 Project design will not consider any hydro- hydro-meteorological parameters (e.g., sea- meteorological parameters. Both construction level, peak river flow, reliable water level, peak areas are far from water bodies and have no any wind speed etc)? impact on its. High level of groundwater is identified at New bus depot construction site, in this matter special survey envisaged at design phase to propose solutions for lowering the groundwater level.

Materials and Would weather, current and likely future 0 Construction material for the Bus depot and CHG Maintenance climate conditions (e.g. prevailing humidity RF will be required in accordance with the level, temperature contrast between hot standards that integrate the weather-related summer days and cold winter days, exposure to parameters. wind and humidity hydro-meteorological parameters likely affect the selection of project inputs over the life of project outputs (e.g. construction material)? Would weather, current and likely future 0 Regular maintenance measures that are taking climate conditions, and related extreme events into account the current and likely future

8 If possible, provide details on the sensitivity of project components to climate conditions, such as how climate parameters are considered in design standards for infrastructure components, how changes in key climate parameters and sea level might affect the siting/routing of project, the selection of construction material and/or scheduling, performances and/or the maintenance cost/scheduling of project outputs. 63

Page 63 of 64 likely affect the maintenance (scheduling and weather and climate conditions will be proposed. cost) of project output(s)? Extreme events are not likely.

Performance of Would weather/climate conditions, and related 0 N/A, weather/climate conditions are considered project outputs extreme events likely affect the performance in the design for the life- time of the Bus Depot (e.g. annual power production) of project and CNG RF, output(s) (e.g. hydro-power generation facilities) throughout their design life time? Extreme events are not likely Options for answers and corresponding score are provided below: Response Score Not Likely 0 Likely 1 Very Likely 2 Responses when added that provide a score of 0 will be considered low risk project. If adding all responses will result to a score of 1-4 and that no score of 2 was given to any single response, the project will be assigned a medium risk category. A total score of 5 or more (which include providing a score of 1 in all responses) or a 2 in any single response, will be categorized as high-risk project.

Result of Initial Screening (Low, Medium, High):____ Low______

Other Comments:____No______

Prepared by: ____A. Bodoyan______

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