Bi-Annual Environmental Monitoring Report

Final Environmental Monitoring Report

Project Number: 39176

January 2018

Republic of Azerbaijan: Road Network Development Program – Tranche 3 Masalli to Astara Motorway

(Financed by the Asian Development Bank)

Part II - Loan 2831 AZE, Covering Sections B & C

Prepared by Azeravtoyol OJSC for the Asian Development Bank (ADB).

The final environmental monitoring report is a document of the borrower. The views expressed herein do not necessarily represent those of ADB’s Board of Directors, Management, or staff, and may be preliminary in nature.

CURRENCY EQUIVALENTS (As of 1 October 2017)

Currency Unit – Azerbaijan New Manat (AZN)

AZN 1.00 = USD 0.5886 USD 1.00 = AZN 1.6988

ABBREVIATIONS

ADB – Asian Development Bank AAY – AzerAvtoYol BEMR – Biannual Environmental Monitoring Report EIA – Environmental Impact Assessment EMP – Environmental Management Plan EPM – Environmental Protection Manager GRM – Grievance Redress Mechanism PIU – Project Implementation Unit PPE – Personal Protective Equipment RoW – Right of Way SSEMP – Site-Specific Environmental Management Plan

WEIGHTS AND MEASURES

m – Metre km – Kilometre

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TABLE OF CONTENTS

I. INTRODUCTION ...... 6 A. Introduction to Project ...... 6 B. Project Details ...... 6 C. Objectives of Biannual and Final Environmental Reporting ...... 10 D. Methodology ...... 10 E. Project organization and environmental management team ...... 11

II. ENVIRONMENTAL SAFEGUARDS DURING PROJECT PREPARATION AND CONTRACTOR MOBILISATION ...... 13

III. ENVIRONMENTAL SAFEGUARDS DURING PROJECT IMPLEMENTATION ...... 14 A. Introduction ...... 14 B. Summary of Contractor Environmental Management ...... 14 C. Site-Specific Environmental Management Plan ...... 16 D. Instrumented Monitoring ...... 17 E. Key Issues and Non-Compliances ...... 18 F. Health and Safety ...... 22 G. Documentation ...... 23 H. Inspections and Audits ...... 24 I. Consultations ...... 25 J. Grievance Redress Mechanism ...... 25

IV. FINAL AUDIT & REINSTATEMENT ...... 31 A. Introduction ...... 31 B. Reinstatement ...... 31

V. CONCLUSIONS ...... 37

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LIST OF FIGURES

FIGURE 1: MAP OF SECTION B PROJECT INCLUDING MAIN FEATURES ...... 7

FIGURE 2: MAP OF SECTION C PROJECT INCLUDING MAIN FEATURES ...... 9

FIGURE 3: SECTION B CONTRACTOR ORGANISATION CHART ...... 12

FIGURE 4: SECTION C CONTRACTOR ORGANISATION CHART ...... 12

FIGURE 5: HIRKAN FOREST BOUNDARY PRIOR TO CONSTRUCTION (L) AND DURING- CONSTRUCTION (R). THE ORIGINAL BOUNDARY STREAM IS VISIBLE ON THE LEFT, WITH THE CLEARED AREA OF FOREST BETWEEN THE STREAM AND TEMPORARY NOISE BARRIERS...... 15

FIGURE 6: HIRKAN FOREST LATER IN CONSTRUCTION (MAY 2015), SHOWING NEW BOUNDARY STREAM (L) AND A YEAR LATER (APRIL 2016) SHOWING THE EXTENT OF RECOVERY; ABUNDANT OAK SAPLINGS ARE WELL ESTABLISHED (R) 15

FIGURE 7: EXAMPLE OF A COMPLETED SITE AUDIT CHECKLIST (SECTION B) ...... 17

FIGURE 8: NOISE AND AIR QUALITY MONITORING ON SECTION B ...... 17

FIGURE 9: EXAMPLES OF MINOR NON-COMPLIANCES AND SUBSEQUENT CORRECTIVE ACTION: TOP: BUND PROBLEM/SOLUTION AT SECTION B ASPHALT PLANT; AND BOTTOM: PROBLEM/SOLUTION AT SECTION B OIL STORAGE AREA ...... 19

FIGURE 10: WORKER BATHROOM (L) AND WORKER ACCOMMODATION (R) BOTH AT SECTION C CAMP ...... 19

FIGURE 11: HEALTH AND SAFETY TRAINING ATTENDANCE CERTIFICATE ...... 23

FIGURE 12: HIV AWARENESS TRAINING AT THE SECTION C CAMP ...... 23

FIGURE 13: INSPECTION OF PAPERWORK ON SECTION B ...... 24

FIGURE 14: PUBLIC CONSULTATIONS ON SECTION B (L) AND SECTION C (R)...... 25

FIGURE 15: SECTION B REINSTATEMENT. OPEN CROSSING BRIDGE, WITH VEGETATION RE-ESTABLISHING ITSELF (L) AND FINISHED SECTION WITH FENCING AND SMOOTHING COMPLETED (R) ...... 31

FIGURE 16: SECTION B REINSTATEMENT. FENCING FOR INSTALLATION STORED AT CONTRACTOR CAMP (L) AND DISMANTLING OF THE ASPHALT PLANT (R) ...... 32

FIGURE 17: DISMANTLING AND CLEARANCE OF SECTION B CAMP IN EARLY 2018 ...... 32

FIGURE 18: SECTION C FINAL REINSTATEMENT: REMOVAL OF LAST MATERIAL AT STOCKPILE AT KM 53+200 ...... 34

FIGURE 19: SECTION C FINAL REINSTATEMENT: SMOOTHING, CLEARING AND FENCING ...... 34

FIGURE 20: SECTION C FINAL REINSTATEMENT: OPEN CULVERTS ...... 35

FIGURE 21: RVO BORROW PIT ...... 35

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LIST OF TABLES

TABLE 1: WRITTEN INSTRUCTIONS TO SECTION B CONTRACTOR ...... 20

TABLE 2: WRITTEN INSTRUCTIONS TO SECTION C CONTRACTOR ...... 22

TABLE 3: GRIEVANCE REGISTER – SECTION B ...... 26

TABLE 4: GRIEVANCE REGISTER – SECTION C...... 29

TABLE 5: FINAL AUDIT CHECKLIST: SECTION B ...... 33

TABLE 6: FINAL AUDIT CHECKLIST: SECTION C ...... 36

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I. INTRODUCTION

A. Introduction to Project

1. The Masalli to Astara Motorway is a new 62 km motorway section of the M-3 highway corridor that links the capital city, Baku, to the south of the country and the town of Astara, which straddles the Azeri/Iranian border. The project is split into three sections; A (0 - 22.15 km), B (22.15 - 45.00 km), and C (45.00 – 62.14 km), plus the contract for the Lenkaran Bridge.

2. This report relates to the contracts for Sections B and C only.

3. The Executing Agency for the project is the Azeravtoyol Open Joint Stock Company1 (abbreviated to AAY in the present report). The funding agency is the Asian Development Bank (ADB).

4. Following screening2, an Environmental Impact Assessment (EIA) was carried out for the project in 2007. The EIA report was approved by AAY and ADB, and has served as a basis for the development of the specification and contract documents, and for the preparation and pricing of the Contractor Environmental Management Plan (EMP).

5. The Engineer appointed by AAY is Nippon Koei UK Ltd. The construction contract for Section B was awarded to Özgün Construction Industry and Trading Co. Inc. Section C was awarded to Polat LLC in November 2013.

6. Key milestones relating to the construction contracts are summarised below: • Section B Contract Agreement: 29th March 2013. • Notice to Commence for Section B was issued on 18th June 2013. • Section C Contract Agreement: 31st October 2013. • Notice to Commence for Section C was issued on 27th January 2014. • Completion dates for both contracts: September 25, 2017

B. Project Details

Section B

7. Section B of the Masalli–Astara motorway Project has an overall length of 19.35 km, commencing from the east of Girdani village in Lenkaran Rayon and ending in the vicinity of Mamusta village. Section B includes two interchanges, located at km 29.6 and km 34.8 and 10 bridges /underpasses. The new road alignment passes through an agricultural area that is heavily marked with irrigation channels and ditches. 8. The total of the earthworks was 2,065,308 m3 and the total asphalt requirement was 395,013 m3.

1 Formerly called “The Road Transport Service Department” (The change of name took effect on 22nd February 2007), and then called Azeri Road Service from 2007 to 2015. 2 Screening was carried out according to ADB’s Environment Policy and Operations Manual (OM) 20. The project was classified as Category A, principally due to the anticipated resettlement issues triggering the ADB Policy on Involuntary Resettlement (1995).

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Figure 1: Map of Section B Project including Main Features

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Section C

9. Section C has a length of 19.90 km, commencing north of Mamusta village in Lenkaran Rayon and ends in the vicinity of Artuba village. Section C includes two interchanges, located at km 45.5 and km 58.6 and 8 bridges /underpasses. The new road alignment passes through an agricultural area that is heavily marked with irrigation channels and ditches. 10. The total of the earthworks was 2,073,947 m3 and the total asphalt requirement was 135,365 m3.

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Figure 2: Map of Section C Project including Main Features

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C. Objectives of Biannual and Final Environmental Reporting

11. The purpose of the Biannual Environmental Monitoring Reports (BEMR) was to provide a summary of the key issues relating to environmental management over the previous six months. The reports included an update on overall project progress, the status of SSEMP implementation, any progress made with environmental management, environmental monitoring results, and other relevant issues such as non-compliance and corrective actions, and monitoring of the Grievance Redress Mechanism (GRM). The BEMR were prepared by AAY and were intended to inform ADB and any other interested parties of the status of environmental management of the project. The Reports were summaries; more detailed information is included in the monthly and quarterly reports prepared by the Contractors and the Engineer.

12. The first BEMR covered the period 1st March to 31st August 2011. Subsequent BEMR covered the following periods:

st st • Second: 1 September 2011 to 31 May 20123. • Third: 1st June 2011 to 31st December 2012. • Fourth: 1st January 2013 to 30th June 2013. • Fifth: 1st July 2013 to 31st December 2013. • Sixth: 1st January 2014 to 30th June 2014. • Seventh: 1st July 2014 to 31st December 2014. • Eighth: 1st January 2015 to 30th June 2015. • Ninth: 1st July 2015 to 31st December 2015. • Tenth: 1st January 2016 to 30th June 2016. • Eleventh: 1st July 2016 to 31st December 2016. • Twelfth: 1st January 2017 to 30th June 2017. 13. From the Fifth issue onwards, the report was split according to loan source into two; Part I, covering Section A and Lenkaran Bridge (Loan 2354 AZE), and Part II, covering Sections B & C (Loan 2831 AZE).

14. The purpose of the Final Environmental Monitoring Report is to provide an overview of the history of environmental management and monitoring throughout the project construction period, and to report on the status of final project-end activities such as site reinstatement.

D. Methodology

15. The BEMR were prepared by reviewing and extracting key information from a number of sources, as follows:

• Contractors’ Quarterly Environmental Management Reports; • Contractors’ Grievance Registers; • Engineer’s Quarterly and Monthly Progress Reports; • Engineer’s Environmental Specialist’s Field Reports; • Monthly instrumented monitoring results; • Ad Hoc reports from the Contractors on training and public consultation; and

3 Due to the extended period of inactivity during the winter season, and so that the present report includes the results of the ADB mid-term review

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• Correspondence between AAY, Engineer and Contractors relating to environmental and social issues.

16. The Final Environmental Monitoring Report was prepared using the above resources, in addition to a review of all previous reports, and a final site audit.

17. Project works under the reporting period included mainly post construction works such as:

• Installation of Guard-rails (type EDSP) • Installation of Guard-rails (type ESP) • Installation of Side fence • Compilation of Road painting • Installation of Road signs and Delinators: • Cleaning of culverts

E. Project organization and environmental management team

18. The two contracts were managed as follows from the perspective of environmental safeguards:

• The Owner’s (AAY) Project Implementation Unit (PIU) included one Environmental Specialist, responsible for oversight of the environmental safeguards aspects of the project, and charged with liaison with the Engineer’s and ADB’s environmental management teams. The AAY specialist was also responsible for reporting to ADB. • Each contractor had an Environmental Protection Manager (EPM) as part of their site team. The EPM was responsible for preparing the SSEMP, obtaining the required permits and approvals, managing the Grievance Redress Mechanism (GRM), implementing public consultations, managing instrumented monitoring, conducting site audits and training, and preparation of quarterly environmental management reports. • The Engineer’s team included one International Environmental Specialist, and latterly, a National Environmental Specialist. The National Environmental Specialist was responsible for day-to-day oversight of the contractors’ works, and for weekly site audits. The International Environmental Specialist was responsible for providing advice and support to the contractors and AAY (particularly with respect to SSEMP, monitoring and reporting), for advising and training the National Environmental Specialist, for carrying out periodical site audits, and for preparing the draft BEMRs. • The ADB management team included an environmental specialist responsible for ensuring that the project adhered to the safeguard requirements. The specialist made ad hoc visits to the site to review SSEMP implementation and other issues, to provide recommendations, and to review and approve BEMRs. 19. The Engineer’s and AAY’s environmental management teams worked closely and successfully throughout the project implementation. Likewise, the contractor EPMs coordinated and liaised with AAY and the Engineer throughout the work.

20. Though the internal organisation of the two contractors changed during the implementation period, indicative organisation charts are provided below.

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Figure 3: Section B Contractor Organisation Chart

21. The Engineer’s and AAY’s environmental management teams worked closely and successfully throughout the project implementation. Coordination between the contractors and AAY / the Engineer was also good.

Figure 4: Section C Contractor Organisation Chart

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II. ENVIRONMENTAL SAFEGUARDS DURING PROJECT PREPARATION AND CONTRACTOR MOBILISATION

22. Following screening4, an EIA was carried out for the project in 2007. The EIA report was approved by AAY and ADB, and served as a basis for the development of the specification and contract documents, and for the preparation and pricing of the Contractors’ EMP.

23. During the preparation of tender documents, the Engineer worked with AAY and ADB to ensure that the Contract Specification and Special Conditions of Contract included sufficient provisions to ensure an acceptable level of environmental protection and management by the contractors. These provisions included, inter alia:

• Requirement for Site-Specific Environmental Management Plan (SSEMP); • Obligation of contractors to implement mitigation measures described in the SSEMP; • Requirement for pre-construction monitoring and regular monitoring during implementation; • Requirement for pre-construction site condition photos; • Requirement to hire Environmental Protection Managers; and • Numerous site rules, for example relating to effluent discharge, waste management, dust management etc.

24. The Engineer made early contact with each contractor following award of contract to discuss environmental management obligations and to offer advice and support for preparation of the pre-construction requirements.

25. Numerous permits and licences were required prior to construction, including for:

• Water abstraction; • Waste disposal; and • Borrow pit opening and operation.

26. The above permits were all obtained by the contractors, and included in their respective SSEMPs. In addition, various contracts were set up with local suppliers, for example waste management services, liquid waste removal and land agreements at the beginning of the project. There were no need for any permits or licences during current reporting period.

27. Throughout project implementation, the Engineer provided environmental management support and auditing, via a combination of local on-site presence and short term visits from an international specialist. Biannual Environmental Monitoring Reports were prepared every six months by AAY, supported by the Engineer. The overall environmental management task was carried out with close liaison between AAY, the Engineer and ADB, and a summary of the procedures and outcomes is provided in Section III below.

4 Screening was carried out according to ADB’s Environment Policy and Operations Manual (OM) 20. The project was classified as Category A, principally due to the anticipated resettlement issues triggering the ADB Policy on Involuntary Resettlement (1995).

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III. ENVIRONMENTAL SAFEGUARDS DURING PROJECT IMPLEMENTATION

A. Introduction

28. Section II briefly describes the pre-construction project activities relating to environmental safeguards. The present Section provides a general overview of the six years of construction supervision activities relating to environmental management.

29. Supervision of the environmental safeguards aspects of construction began in early 2011, shortly after the award of the Section A contract. Initially the work was carried out via quarterly visits to site by the Engineer’s international environmental specialist, in addition to ad hoc visits by AAY’s environmental specialist. From mid-2015 until late 2017, the work was carried out via a combination of a local environmental specialist working for the Engineer, supported by semi- annual visits by the Engineer’s international environmental specialist.

30. The Engineer’s supervision of the contractors’ environmental management included the following tasks and responsibilities:

• Advice and assistance with preparation of SSEMPs, GRM and other documents/management systems; • Review and approval of SSEMPs, instrumented monitoring results, and quarterly reports; • Regular auditing of all work sites, camps and facilities to check for compliance with SSEMP (covering presence and function of physical mitigation measures, the correct application of mitigation actions, and the absence of prohibited actions); • Regular auditing of contractor documentation, licences & permits, public consultations and GRM implementation; • Provision of advice to contractors for remedial actions and improvements following non-compliance; • Provision of general advice and troubleshooting to AAY and the Engineer’s site team;

B. Summary of Contractor Environmental Management

Section B

31. The Section B Contractor commenced work in June 2013. The Section B EPM was recruited from the Section A Contractor, and, enabled by an employer who showed more willingness to adhere to the environmental mitigation and management elements of his contract, environmental management on that Section started well. The initial documentation was quickly submitted in improved quality, reflecting the lessons learned by both the EPM and Engineer during the initial part of the Section A contract. Environmental protection and management was therefore initially very good on Section B.

32. In the mid-stage of the Section B construction, the Contractor encountered human resource issues, which resulted in a lack of strong project management, and a corresponding drop in the standards of environmental management. Despite this reality, the general level of management provided was mostly acceptable. Rather the main problems were recurrences of easily avoidable minor non-compliances.

33. An important environmental issue on Section B was that of the Hirkan National Park. The alignment of the new road passed through a very narrow corridor between Dasdaligjar village and the only surviving fragment of the original dominant ecosystem of the Caspian plain, the

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Hyrcanian lowland forest (HLF), which is a Critical Habitat in terms of the ADB’s 2009 Safeguard Policy by virtue of its unique assemblage of species.

34. The narrow corridor was not quite wide enough to fit the road reserve, and a small section of the forest was lost to the project. Before that occurred, considerable effort was put into studying the forest and developing additional mitigation, management and offset provisions.

35. A biodiversity specialist was hired to carry out the work, which resulted in a detailed report including recommended actions. A special stand-alone SSEMP for the forest section was also developed and implemented. The SSEMP included additional mitigation measures, and a more comprehensive monitoring regime than the remainder of Section B.

36. During construction, environmental management and monitoring of the Hirkan Forest area therefore received heightened attention, so as to prevent any undue negative impacts. Additional mitigation measures in place ensured that the work was carried out very sensitively, and monitoring showed that the forest recovered quickly from the works. Contractor will continue monitoring during the defect liability period under the supervision of EA and local office of Ministry of Ecology and Natural Recourses.

Figure 5: Hirkan Forest Boundary Prior to Construction (l) and During-Construction (R). The original boundary stream is visible on the left, with the cleared area of forest between the stream and temporary noise barriers.

Figure 6: Hirkan Forest later in Construction (May 2015), showing new boundary stream (l) and a year later (April 2016) showing the extent of recovery; abundant oak saplings are well established (r)

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37. At the time of writing, the reinstatement of the Section B site is ongoing. A September and December 2017 site visits showed that the reinstatement works are progressing well, and it is expected that they will be satisfactorily completed by 15th of February. Further information is provided in Part IV below.

Section C

38. Environmental management on Section C during construction was considerably better than all other contracts. This is in part due to the general attitude of the Contractor, and in part due to the collective experience of the teams due to their previous involvement on other sections. This prior experience advantage included making improvements in the contract documents to ensure more robust measures for environmental protection.

39. Throughout the construction of Section C, the Contractor maintained a high standard of environmental management and protection, and delivered higher quality reports than contractors on other sections. No major non-compliances occurred during the construction, and whilst various minor non-compliances occurred, they were generally dealt with very quickly by the Contractor. There were no non-compliances recorded within current reporting period.

40. The Contractor maintained excellent communications and relationships, and was very open to discussion and recommendations.

41. At the time of writing, the reinstatement of the Section C site is ongoing. A September and December 2017 site visits showed that the reinstatement works are progressing well, and it is expected that they will be satisfactorily completed by 15th of February. Further information is provided in Part IV below.

C. Site-Specific Environmental Management Plan

42. Due to the collective experience gained on previous contracts, both contractors prepared high quality SSEMPs providing site specific details about what mitigation measures they would carry out; where, when and by whom. The SSEMPs were approved by both AAY and ADB.

43. The project operated a policy of continual improvement; therefore SSEMPs were periodically updated and improved upon. Training was also given by EMPs to their workers, to ensure a good understanding of the required mitigation measures and site rules.

44. Weekly site audits were carried out by the EPMs to verify that all mitigation measures were constructed and/or operational. These audits employed checklists, which were annexed to their quarterly environmental reports.

45. Overall, adherence to the SSEMPs was good, in particular in the case of Section C. Non- compliances in previous periods were minor, and usually quickly remedied. No non-compliances observed within current reporting period.

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Figure 7: Example of a completed site audit checklist (Section B)

D. Instrumented Monitoring

46. Instrumented monitoring of air quality, water quality and noise was carried out on a monthly basis by both contractors, with no gaps. The sampling was carried out by a specialist company, who then sent the samples for analysis at the Central Laboratory of the Ministry of Ecology and National Resources of Azerbaijan.

Figure 8: Noise and Air Quality Monitoring on Section B

47. Sampling stations and determinands were set out in the SSEMPs.

48. The vast majority of all sampling results at all stations and at all monitoring times, were under the legal limits.

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49. Air quality monitoring results never exceeded the legal standards for particulates (PM10), nitrogen dioxide and carbon monoxide, though particulates results were on occasion approaching the limits, particularly during the summer season.

50. Noise and vibration results occasionally approached the legal limits but were generally fairly low. Noise levels were generally high close to the Section C construction camp, but this was a result of the extraction and crushing operations taking place in close proximity to the camp by third parties.

51. Only very occasionally did water quality results fall close to or above the legal limits, and of those results, careful review of the data generally revealed that the project works were not the cause of the outcome (for example, where a water quality determinand such as turbidity or faecal coliforms was high, the upstream readings were higher than or the same as the downstream readings).

52. Overall, the instrumented monitoring was successful in that it was well implemented, and permitted the environmental management team to verify that the mitigation measures in place were having the desired effects in protecting the environment around the work sites.

53. There were no requirement for instrumental monitoring due to the intensity and nature of the works within the current reporting period.

E. Key Issues and Non-Compliances

54. In general, environmental management on Sections B and C was good. The Section C Contractor took environmental and social management particularly seriously, and this was evident on site both in terms of reduced levels of non-compliance, but also in terms of the pro- active areas, for example provision of leisure facilities for workers (e.g. table tennis, internet, basketball, computer games).

55. The non-compliances observed on both Sections B and C in previous reporting periods were restricted to minor issues such as poor materials storage, substandard wastes storage arrangements, lax fire safety arrangements, and at times, poor dust management and traffic management. As the above non-compliances were generally minor, short term, and addressed following warnings, the negative environmental and social impacts of the problems were minimal. The suite of BEMRs provide ample photographic records of the various non-compliances encountered, with the corresponding corrected situations.

56. There were no non-compliances recorded within current reporting period at both Sections.

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Figure 9: Examples of minor non-compliances and subsequent corrective action in previous reporting periods: Top: Bund problem/solution at Section B asphalt plant; and Bottom: problem/solution at Section B oil storage area

57. Borrow pits presented an issue for environmental management as the majority of pits used by the contractors were at “shared” sites, where multiple contractors and local authorities were extracting aggregates. This meant that applying correct site rules, and in particular, ensuring reinstatement, was difficult. Further details are provided in Section IV

58. Worker accommodation was generally of a high standard; and both sanitary facilities and catering were of a good standard on both contractor camps.

Figure 10: Worker bathroom (L) and worker accommodation (R) both at Section C camp

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59. Reporting of non-compliances occurred as follows: For minor non-compliances, a verbal instruction was issued in the first instance. If the verbal instruction did not result in resolution of the problem, a formal letter to the Contractor was sent, with subsequent follow up. Letters were also sent after repeated occurrence of minor non-compliances, and for general reminders to the contractors. Serious non-compliances were to be dealt with on a case by case basis, as described above. A record of all letters sent to the two contractors is provided below.

Table 1: Written Instructions during overall project duration to Section B Contractor

No Date Description of Instruction 1 04/09/2013 Letter No 029 Requirement for additional underpasses and service roads 2 04/11/2013 Letter No 065 Setting out of alignment for Moscow forest 3 06/12/2013 Letter No 099 Notice of non-compliance for numerous environmental issues 4 27/01/2014 Letter No NK133 Notice of Non-Compliance: Failure to Ensure the Safety of Travelling Public 5 05/05/2014 Letter No NK222 Environmental Management Issues 6 09/05/2014 Letter No NK223 Training for Consultants/Contractors Staff 7 21/07/2014 Letter No NK327 Letter from the Ministry of Ecology and Natural Resources 8 15/08/2014 Letter No NK357 Letter from the Ministry of Ecology and Natural Resources 9 14/09/2014 Letter No NK395 Gross Negligence regarding Dust Control 10 19/09/2014 Letter No NK401 Environmental Audit Checklists 11 21/09/2014 Letter No NK408 New Environmental Management Issues 12 22/09/2014 Letter No NK409 Recurring Environmental Management Issues 13 19/11/2014 Letter No NK461 Environmental Audit Checklists 14 19/11/2014 Letter No NK462 Environmental Management İssues 15 28/11/2014 Letter No NK474 Environmental Management and Working in “Moscow Forest” 16 04/03/2015 Letter No BNK551 Air Pollution Caused by the Proximity of Processing of Plants to the Engineer’s and Contractor’s Offices. 17 13/03/2015 Letter No BNK567 Environmental Management and Working in Moscow Forest 18 29/04/2015 Letter No BNK611 Environmental issues 19 06/05/2015 Letter No BNK622 Environmental issue at Br.No.9

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No Date Description of Instruction 20 15/05/2015 Letter No BNK624 Environmental Management Issues at construction camp 21 15/05/2015 Letter No BNK625 Environmental Management Issues on the Road Alignment 22 15/05/2015 Letter No BNK626 Presence of our Local Environmentalist at environmental monitoring 23 01/07/2015 Letter No BNK684 Fire extinguishers 24 31/08/2015 Letter No BNK745 Safety measures 25 15/09/2015 Letter No BNK755 Noise Barriers at Moscow Forest Area 26 09/12/2015 Letter No BNK803 Safety measures and Traffic Management 27 09/12/2015 Letter No BNK804 Public Consultations 28 01/02/2016 Letter No BNK825 Health and Safety 29 26/04/2016 Letter No BNK884 Health and Safety 30 03/05/2016 Letter No BNK890 Environmental Management Issues 31 03/05/2016 Letter No BNK891 PIU letter about environmental issues 32 02/12/2016 Letter No BNK1028 Environmental Management Issues 33 19/05/2017 Letter No BNK1093 Environmental Management Issues

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Table 2: Written Instructions to Section C Contractor

No Date Description of Instruction 1 13/03/2014 Letter No NK014 Construction of Camp Facilities. Instruction to submit SSEMP 2 09/05/2014 Letter No NK052 Trainings for Consultants/Contractors Staff 3 03/09/2014 Letter No. NK148 Site Specific Environmental Management Plan 4 16/09/2014 Letter No NK179 Replacement of Environmentalist for Section C 5 18/09/2014 Letter No NK183 Environmental Audit checklists 6 22/09/2014 Letter No NK196 Failure to Carry out Pre-construction Audit 7 20/11/2014 Letter No NK259 Environmental management issues 8 20/11/2014 Letter No NK260 Failure to Carry out Pre-construction Audit 9 17/03/2015 Letter No CNK375 Training on Environment at site from 24 to 26 of March 2015 10 29/04/2015 Letter No CNK406 Environmental issues 11 15/05/2015 Letter No CNK418 Environmental Management Issues at construction camp 12 15/05/2015 Letter No CNK431 Presence of our local environmentalist at environmental tests 13 24/02/2016 Letter No CNK584 Safety at site 14 19/04/2016 Letter No CNK616 Health and Safety 15 03/05/2016 Letter No CNK623 Environmental management issues 16 02/12/2016 Letter No CNK721 Environmental management issues 17 16/05/2017 Letter No CNK749 Environmental management issues

F. Health and Safety

60. Contractors prepared and implemented Health and Safety Plans, and also undertook health screening of workers, and ongoing medical support to workers. On-site training was also provided, as was awareness-raising on HIV and Sexually Transmitted Disease. No training were required within current reporting period. 61. Both Section B and Section C contractors maintained an on-site clinic, and hired a doctor to screen workers and provide ongoing treatment.

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Figure 11: Health and Safety Training Attendance Certificate

Figure 12: HIV awareness training at the Section C camp (from previous periods)

G. Documentation

62. Due to the collective experience gained on previous contracts, both contractors prepared high quality SSEMPs providing site specific details about what mitigation measures they would carry out; where, when and by whom. The SSEMPs were approved by both AAY and ADB.

63. Weekly site audits were carried out by the EPMs to verify that all mitigation measures were constructed and/or operational. These audits employed checklists, which were annexed to their quarterly environmental reports.

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64. Likewise, Quarterly Environmental Reports were submitted regularly by both contractors throughout their contracts, and the standard of these reports was good.

Figure 13: Inspection of Paperwork on Section B

65. Record keeping in terms of site audits, accidents and licences/permits was generally good, and was checked during each of the Engineer’s audits.

H. Inspections and Audits

66. As described in the above introduction, initially inspections and audits were carried out via quarterly visits to site by the Engineer’s international environmental specialist, in addition to ad hoc visits by AAY’s environmental specialist. From mid-2015 until late 2017, the work was carried out via a combination of a local environmental specialist working for the Engineer, supported by semi-annual visits by the Engineer’s international environmental specialist. ADB Safeguards specialists also visited the site on occasion to verify implementation of the SSEMP, and providing recommendations for follow-up.

67. Two audits were conducted under current reporting period (September and December). Findings are presented under Section IV.

68. Each of the audits carried out by the Engineer’s international environmental specialist included the following tasks:

• Kick-off meeting with AAY; • Kick-off meeting with site teams (contractors, EPMs, Engineer); • Site audit of alignment and any other working areas such as borrow pits; • Site audit of construction camps, workshops, fabrication yards and other facilities (during both of the above, all previous non-compliances were checked for resolution, plus inspections for new non-compliances were carried out); • Review of documents, records, GRM, etc.; • Discussion with each EPM regarding project status, recent actions, non-compliances, and follow-up; • Wrap up meetings with site staff, AAY, and on occasion, ADB.

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I. Consultations

69. Public consultations were held on a monthly basis in villages surrounding the project works. The consultations met the basic requirements of communicating to the public the planned works schedule and locations and the Grievance Redress Mechanism, and they also permitted the attendees to ask questions and lodge complaints. Minutes of the consultation meetings were appended to the relevant BA-EMRs. There were no community meetings and consultations within current reporting period.

Figure 14: Public Consultations on Section B (l) and Section C (r)

J. Grievance Redress Mechanism

70. A robust GRM was prepared by the contractors, in consultation with the Engineer. The GRM was approved by ADB, and communicated to the communities around the project via leaflets and during the public consultation meetings. 71. A grievance register was maintained, in which all complaints and comments were logged, alongside details of the complainant, and how and when the issue was resolved. Most grievances were dealt with swiftly and satisfactorily. A total of 17 grievances were made relating to the Section B contract, and 8 were made relating to the Section C contract. No unresolved grievances remain open. There were no grievances within current reporting period. Lists of all grievances lodged during overall project implementation are provided in Tables 3 and 4 below.

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Table 3: Grievance Register – Section B

Date How grievance Description of the Contact Notes, undertaken No Tranche Location Complainant Status Received was received issues/complaints details actions

Contractor appointed the water truck on that roads During the delivery of and the local roads had Haftoni From local Rovshen materials construction 1 Section B 15.08.2013 050-546-86-20 been watered by sprinkler Solved Village Municipality Zeynalov vehicles caused dust on truck on July, August and local roads during dry weather periods every hour Contractor had been Request was accepted and requested for recruited Haftoni From local Rovshen a 15 workers recruited from 2 Section B 26.08.2013 workers from close 050-546-86-20 Solved Village Municipality Zeynalov close communities communities

From local Contractor was requested Request was accepted and 3 Section B Laj Village 04.07.2014 Executive Cefer Bayramov to excavate the village 070-203-94-69 the Laj village channel Solved Representative channel for rain water excavated for rain water

From local Village access road near Village access road near 4 Section B Laj Village 09.10.2014 Executive Cefer Bayramov the Bridge No 3 is 070-203-94-69 Solved the Bridge No 3 is repaired Representative destroyed

Kargalan village access 5 Section B Laj Village 24.11.2014 In person Name unknown road near the Bridge No 4 TBC Road has been repaired Solved is destroyed

Village access road near Kargalan 6 Section B 30.11.2014 In meeting Vaqif Aliyev the Bridge No 4 is TBC Road has been repaired Solved Village destroyed

Sapnakaran village access Kargalan 7 Section B 10.04.2015 GRM Samed Dadashov road near the B ridge No 1 TBC Road has been repaired Solved Village Interchange is destroyed

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Date How grievance Description of the Contact Notes, undertaken No Tranche Location Complainant Status Received was received issues/complaints details actions

Kargalan Kargelan village access 8 Section B 12.06.2015 GRM Aslan Xelilov TBC Road has been repaired Solved Village road is destroyed

Haftoni settlement Haftoni access road near 9 Section B 16.10.2015 In meeting Kenan Bagirzade TBC Road has been repaired Solved Village the Bridge No 4 is destroyed It was promised that Existing culverts near the Qrunba another big size of culverts 10 Section B 01.12.2015 GRM Elekberov Firdovsi Bridge No 5 are not enough TBC Solved Village will be placed near the for rain water flow Bridge No 5 The Haftoni settlement road Haftoni settlement road is Haftoni is destroyed repaired 11 Section B 20.05.2016 In meeting Zeynal Haydarov TBC Solved Village

Yuxari During the material Contractor increased Nuvedi transportation the watering by sprinkler trucks Village contractor heavy trucks during dry weather periods 12 Section B 20.05.2016 In meeting Cesaret Suvarov TBC Solved making dust near the to every 2 hours houses at Yuxari Nuvedi village Yuxari Domestic waste was Domestic waste was Nuvedi littered near the Bridge No cleaned up and the area 13 Section B 20.05.2016 In meeting Cesaret Suvarov TBC Solved Village 5 temporary camp at Yuxari was reinstated Nuvedi village. The Haftoni road near Haftoni settlement road Solved Bridge No 4 is destroyed. near the Bridge No 4 is Haftoni 14 Section B 20.09.2016 In meeting Orxan Azimov When will the Contractor TBC repaired Village repair the village access road? Xudaverdiev Farid During the material Short section at camp Solved transportation the entrance was asphalted Haftoni contractor heavy trucks and water trucks was 15 Section B 20.09.2016 In meeting TBC Village making dust near the increased at this area houses at camp entrance. When will the contractor

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Date How grievance Description of the Contact Notes, undertaken No Tranche Location Complainant Status Received was received issues/complaints details actions

repair this short section with asphalt and increase the number of water trucks at this area? The Haftoni Laj road is The Laj village road near Solved Haftoni destroyed. When will the the Bridge No 3 was 16 Section B 20.11.2016 GRM NA TBC Village Contractor repair the village repaired. access road? When the will contractor The Dasdaligjar village Solved Dasdaligjar Nazim repair the Dasdaligjar road near the Bridge No 17 Section B 02.03.2017 In meeting 050-343-00-45 village Emenullayev village road near the Bridge was repaired. No 8?

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Table 4: Grievance Register – Section C

Date How grievance Description of the Contact Notes, undertaken No Tranche Location Complainant Status Received was received issues/complaints details actions

During the site clearance Between the contractor was km interrupted by a land owner Contractor has informed Directly from between Ch. 60+950 ~ Engineer by its official letter 1 Section C 21.07.2014 Names unknown Unknown Solved 60+950 & landowners 61+400. They claimed that MASAC-107/14 dated 22 61+400 they had not been July 2014 reimbursed for all of his land Yuxari During the installation of Contractor has been From local Crushing plant there was a reminded about night time 2 Section C Nuvadi 10.09.2014 Names unknown Unknown Solved village Municipality noise at night time at Plant working restrictions Yard

Shiyakaran Village access road is 3 Section C 18.04.2015 in a meeting Ayaz Rzayev Unknown Road has been repaired Solved village destroyed at bridge No 2

Yuxari During the regular material transportation Yuxari 4 Section C Nuvadi 14.05.2015 unknown Izam Efendiyev Unknown Road has been asphalted Solved village Nuvedi village access road is destroyed During the material Contractor increased transportation the watering by sprinkler trucks contractor trucks are during dry weather periods making dust near the to every 2 hours 5 Section C 20.05.2016 in a meeting Cesaret Suvarov Unknown Solved contractor Plant Yard. Please water this area intensively during the summer periods. During the material Contractor increased transportation the watering by sprinkler trucks 6 Section C 20.05.2016 in a meeting Rustem Gurbanov contractor trucks are Unknown during dry weather periods Solved making dust near to every 2 hours Shiyakaran village.

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Date How grievance Description of the Contact Notes, undertaken No Tranche Location Complainant Status Received was received issues/complaints details actions

By local people People needs access road Contractor was informed Ercivan 10 June From all village 7 Section C letter No 758 to reach their ploughed field Unknown Engineer verbally about this Solved village 2017 people parallel with road alignment problem Siyekeran , Kolatan, Local people People needs access road Contractor was informed Sahagaci 10 June By local villages 8 Section C (name was to reach their ploughed field Unknown Engineer verbally about this Solved and 2017 people unkown) parallel with road alignment problem Kakalos villages

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IV. FINAL AUDIT & REINSTATEMENT (SEPTEMBER & DECEMBER 2017)

A. Introduction

72. The infrastructure of the Section A motorway and the Lenkaran Bridge is now almost completed. After a number of years of construction, local people will very soon begin to experience the advantages of the new road, including the reduction in environmental impacts such as noise, air pollution and accidents.

73. The final environmental site audits took place in September and December 2017. The audit’s main objective was to verify that the completion of the works took place within the bounds of the SSEMP and contract specifications, and that site reinstatement was carried out correctly.

74. Sections B and C entirely completed during the final audit. All works including embankments, bridges, asphalting, line painting, installation of signage, fencing and clearing of the RoW were finished.

B. Reinstatement

Section B

75. The Section B road is almost complete, with all sections asphalted and central reservations completed. Bridges and approach roads are also completed, but road furniture, line painting, fencing and noise barrier installation were not yet finished at the time of the first audit. During December audit all the works for completed.

76. All stockpiles, for example those near to Bridge 8 and Yuxari Nuvadi, have been used or removed. All along the alignment, the Right of Way has been smoothed, and compacted where necessary. The site was found to be clean and tidy, with no evidence of waste, equipment, or materials from the construction works.

Figure 15: Section B Reinstatement. Open crossing bridge, with vegetation re-establishing itself (l) and finished section with fencing and smoothing completed (r)

77. Culverts inspected were all clear and running, and vegetation is starting to re-establish itself on worked ground.

78. Whilst the main road section itself was not yet open to traffic during the audit, the local road crossings and flyovers were open, and were well trafficked.

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79. The Section B Contractor operated the Qrunba borrow pit, located in the foothills of the Talish mountains. This borrow pit was not shared with other contractors and therefore environmental management was more distinct and manageable during operation of the site.

80. However, following the termination of materials extraction from the site, reinstatement did not occur. Pressure has been put on the Contractor to properly reinstate the site, and it is expected that this will occur during the defects liability period, assuming that the Local Executive Powers allow reinstatement and are not intending to take over the management of the site.

81. The Section B Contractor’s camp was still semi-operational during the September audit. This is due to the need for materials storage, machinery and workers during the final works that were ongoing. Despite the camp still being present, decommissioning had begun; the crushing plant was removed, and the removal of the asphalt plant had begun.

Figure 16: Section B Reinstatement. Fencing for installation stored at Contractor Camp (l) and dismantling of the Asphalt Plant (r)

82. These items will remain on the “snag list” for verification and follow up during the Defects Liability Period.”

83. Progress with the decommissioning and dismantling of the Contractor camp has advanced significantly during December audit (see Figure 17), and it is planned that all the waste materials generated by the dismantling process will be removed in the near future, with final site clearing and cleaning to be completed by the 15th February 2018.

Figure 17: Dismantling and Clearance of Section B Camp in early 2018

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Table 5: Final Audit Checklist: Section B

Chec No. Activity Impacts Final Mitigation Measures Measures Implemented k

1 Project site rehabilitation Change of land cover, erosion resulting Adequate forming and andscaping with drainage ✓ All RoW correctly formed and shaped. Drainage clear and from the construction activities operational

Vegetation re-establishment ✓ Underway

2 Top soil management Erosion of soil Storing and managing removed topsoil for re-use for ✓ Topsoil was stockpiled and used in final reinstatement. landscaping activities All stockpiles have been removed and areas restored

3 Waste management Waste accumulation, air and soil pollution Collect and disposal all wastes including construction debris x Most areas are clean and free of solid and liquid wastes. at designated location; Small amounts of waste will require removal at the final reinstatement locations

4 Noise and vibration, air management Excessive noise and vibration due to new Noise to be monitored on a periodic basis and in response to x Road not yet operational, but monitoring will form part road any complaints. of the operational EMP.

5 Air management Air quality deterioration due to new road Air quality to be monitored on a periodic basis and in x Road not yet operational, but monitoring will form part response to any complaints. of the operational EMP.

6 Traffic management Hazards and safety issues related to traffic Public access and access to the housing, shops, business and ✓ Local roads and crossings are all open. Almost all public activities diversions and temporary access roads are removed/reinstated.

Appropriate signage is installed ✓ Installation of signage completed.

7 Road reinstatement Road damages causing pollution, traffic Streets with installed network reinstated to pre-construction ✓ All local roads have been suitably repaired and are in disturbance and accidents or better conditions, good navigable condition, but final checks should be made once reinstatement is fully complete.

8 Borrow sites and quarries Land slide, soil erosion, change in riverbed Borrow sites and quarries restored x See report - final reinstatement not yet completed. and landscape, accidents

9 Existing Infrastructure facilities Damage or disturbance to existing Reinstatement to pre-construction conditions or proper ✓ All relocations have been successfully carried out services (supply of electricity, water, gas, relocation, to be certified by the service companies telecom etc.)

10 Camp site facilities Residual pollution and disturbance to the All temporary/field plants (asphalt, concrete, crushing, etc.) ✓ See report - final reinstatement of camp not yet localities have been dismantled and removed. complete, but major infrastructure is being dismantled.

Permanently operating plants (asphalt, concrete, crushing, ✓ etc.) have been properly handled and closed/surrendered.

All temporary facilities removed and cleaned up x

11 GRM Unresolved complaints from Affected All grievances have been solved and AP's satisfied ✓ All grievances are satisfactorily resolved People

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Section C

84. The Section C road is almost complete, with all sections asphalted and central reservations, bridges and approach roads, road furniture, line painting, fencing and noise barrier installation completed at the time of the final audit.

85. The unfinished works were underway during the audit, and are expected to be completed in the near future by 28th of February.

86. Most stockpiles have been used or removed, though the stockpile at km 53+200 was still present during the audit. It was, however, being removed at the time of the inspection.

Figure 18: Section C Final Reinstatement: Removal of last material at Stockpile at km 53+200

87. All along the alignment, the Right of Way has been smoothed, and compacted where necessary. The site was found to be clean and tidy, with no evidence of waste, equipment, or materials from the construction works..

Figure 19: Section C Final Reinstatement: smoothing, clearing and fencing

88. Culverts inspected were all clear and running, and vegetation is starting to re-establish itself on worked ground.

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Figure 20: Section C Final Reinstatement: Open Culverts

89. The Section C Contractor operated the Rvo borrow pit, located in the Talish mountains near the road to Lerik. This borrow pit was not shared with other contractors and therefore environmental management was more distinct and manageable during operation of the site. However, due to the contractor having a 15 year lease of the site, it will not be reinstated immediately. Nevertheless, the site is currently safe and secure, and with only minor excavation. Indeed, during a visit to the site abundant wildlife was observed.

Figure 21: Rvo Borrow Pit

90. The Section C Contractor operates two camps – one office/accommodation camp in Burjali village, and a construction camp at Yuxari Nuvadi village. The camp at Burjali is held on a lease. The camp will therefore be cleared to the satisfaction of the landowner prior to handover, and it is planned that all the generated waste will be removed and final cleaning/reinstatement will be completed by the end of Feb 2018.

91. The construction camp at Yuxari Nuvadi is actually owned by the Contractor. Due to their expectation of carrying out further works in the area, the camp will remain open beyond the end of the Section C contract.

92. These items will remain on the “snag list” for verification and follow up during the Defects Liability Period.”

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Table 6: Final Audit Checklist: Section C

Chec No. Activity Impacts Final Mitigation Measures Measures Implemented k

Vegetation re-establishment ✓ Underway

2 Top soil management Erosion of soil Storing and managing removed topsoil for re-use for x Topsoil was stockpiled and used in final reinstatement. landscaping activities Most stockpiles have been removed and areas restored, but final two stockpiles were still being removed during audit

Appropriate signage is installed ✓ Installation of signage completed

8 Borrow sites and quarries Land slide, soil erosion, change in riverbed Borrow sites and quarries restored x See report - final reinstatement not yet completed. and landscape, accidents

10 Camp site facilities Residual pollution and disturbance to the All temporary/field plants (asphalt, concrete, crushing, etc.) ✓ See report - final reinstatement of camp not due to take localities have been dismantled and removed. place.

Permanently operating plants (asphalt, concrete, crushing, x etc.) have been properly handled and closed/surrendered.

All temporary facilities removed and cleaned up x

11 GRM Unresolved complaints from Affected All grievances have been solved and AP's satisfied ✓ All grievances are satisfactorily resolved People

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V. CONCLUSIONS 93. Environmental management on the Sections B and C contracts was generally good. There were occasional examples of poor management but these were minor non-compliances and were generally dealt with effectively and quickly by the contractors. Overall, the efforts resulted in an avoidance of any significant negative environmental impacts; an outcome demonstrated by regular audit results as well as the generally good results of the instrumented monitoring campaign.

94. Final Reinstatement of both Sections B and C was still ongoing during the final audit. The final works were nearing completion, but signage, line painting, fencing, noise barriers and final clearing were all incomplete. Completion of these tasks, as well as reinstatement of borrow areas and construction camps, will need close follow up during the Defects Liability Period. The remaining tasks have already been added to the overall “snag list”.

95. Those in the project area will soon no longer experience the construction-related environmental impacts that they have over the past years. It is expected that with the opening of these road sections in the near future, the project area will experience a general reduction in the environmental and social problems that were associated with the old road, and with the new road operational, economic development of the region is expected to accelerate.

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