E-424 Public Disclosure Authorized

RUSSIAN FEDERATION

MUNICIPAL WATER AND WASTEWATER PROJECT

ENVIRONMENTAL ASSESMENT OF THE PROJECT

Public Disclosure Authorized (EA) Public Disclosure Authorized

9 December, 2000 Public Disclosure Authorized 1

Contents

1. Project Objectives ...... 2 2. Project Description...... 2 3. Project Environmental Sunumary...... 3 4. Environmental Management and Monitoring Plans (EMMPs) ...... 5 5. Environmental Assesment by Project Cities ...... 5 5. 1 Astrakhan...... 5 5. 2 Cheboksary ...... 7 5.3 Gagarin ...... 10 5 Kansk.4 ...... 11 5.5 Nakhodka...... 14 5.6 Oryol...... 16 5.7 Pechora ...... 17 5.8 Petrozavodsk ...... 19 5.9 Pskov ...... 21 5.10 Sochi...... 24 5.11 Tobolsk ...... 26 5.12 Volkhov ...... 27 5.13 Vologda ...... 29 5.14 Votkinsk...... 32 1. Project Objectives

The objective of the project is to arrest the decline of water and wastewater services of fourteen medium-size cities (less than 500,000 inhabitants) located in different regions of Russia that have demonstrated their commitment to the project objectives and the institutional reforms necessary to achieve them. More specifically, at the city level, the project seeks to: (a) support the most critical and immediate investments needed to improve the operation of the water and wastewater systems while achieving improvement of system operations, reduction of operational costs, improvement of service quality; and (b) implement a specific set of institutional and commercial reforms aimed at improving physical system operations and financial performance of vodokanals.

Through project implementation, the Russian Federation will extract lessons from the implementation of the fourteen sub-projects over a wide range of local conditions and the project will support the preparation of replicable methodologies, guidelines, and case studies to guide the government's program of municipal services reform aimed at helping municipal local governments and their water and wastewater enterprises (vodokanals) to become better managed, more efficiently operated and financially sustainable utilities that are capable of providing water and wastewater services of a higher quality to their customers in a cost- effective manner.

2. Project Description

The Municipal Water and Wastewater Project (MWWP) is composed of three major components: (1) Immediate Investment Program; (2) Management Strengthening and Operational Improvement Program; and (3) Project Management and Implementation Support.

Proiect CoomponentI - Immediate Investment Program (1P):

In each city, a set of high priority immediate investments have been identified, justified, costed and designed by consultants during project preparation. The HP for the vodokanals has an implementation period generally of no more than two years; and a total cost below the sub- project loan size to allow sufficient resources for the implementation of the Management Strengthening and Operational Improvement Program.

Proiect Component 2 - Management Strengthening and Operational Improvement Program (MSOIP):

The objective of this component is to implement a specific and well-defined set of technical and commercial reforms aimed at improving physical system operations and management and financial performance of Vodokanals. The MSOIP is divided into two closely related sub components

2.1 - Technical Assistance for Implementation of the MSOIP (TA):

This sub-component will finance the consulting services to support: (i) the development and implementation of a new govemance and commercial system, accounting and financial management system, tariffs setting system and metering strategy; and (ii) the identification of investments to improve the quality and efficiency of-water and wastewater services. Finland, Sweden and United Kingdom are expected to participate in the financing of this component. 2.2 - Investment in Support of the MSOIP:

This sub-component will finance investments (goods, works and training) in order to: (i) improve the management of vodokanals; and (ii) improve the operational efficiency of the existing systems through implementation of the interventions defined under sub-component 2.1. The investments in this category would include various items generally used with water and wastewater systems like pipes, valves, pumps, mechanical and electrical parts, and controls, bulk and block meters, maintenance equipment, leak and pressure management equipment, and other equipment.

Proiect Component 3 - Proiect Management and Implementation Support:

3.1 - Engineering Designs and Bidding Documents: Consultants will assist each of the participating vodokanals in the elaboration of final designs and bidding documents of all investments in the MSOIP. Finland and Sweden are expected to participate in the financing of this component.

3.2 - Supervision of Construction: Consultants will assist vodokanals in the supervision of construction to ensure that the quality of equipment and civil works under both the IIP and the MSOIP meet adequate standards of quality and that bills provided by suppliers and contractors are correct.

3.3 - General Procurement Assistance: Qualified advisors will assist the National Foundation for Housing Reform (NFHR) and vodokanals in procurement actions to ensure compliance with the provisions of the Loan Agreement and the Bank's Guidelines. The advisors will also be responsible for training the staff in the NFHR and in various vodokanals in handling procurement. Sweden will finance this component.

3.4 - Project Implementation Arrangements: The NFHR will be responsible for managing and supervising the project. The NFHR will be the main link with the Bank and fully responsible for ensuring that the project is implemented efficiently in accordance with the provisions of the Loan Agreement.

3. Project Environmental Summary

The project has been classified as Category B, which requires a limited environmental review to identify potential negative environmental impacts and propose mitigation and monitoring measures where needed. A review of potential environmental impacts from the proposed investments has been carried out during the project preparation process for each of the participating cities by the Vodokanals with the assistance of foreign consultants. This is being complemented by sub- project specific Environmental Management Plans (EMMPs) that will be reviewed and approved by Russian authorities and the Bank prior to any construction activities being undertaken in the concerned municipality.

The project is not anticipated to have significant negative environmental effects and will not result in any involuntary resettlement or land acquisition since it focuses on rehabilitation of existing network and facilities. All work will be executed either within the premises of existing facilities or within the right of way of public streets.. The project will not finance construction of new facilities for water production, water treatment, or wastewater treatment. Investments financed by the project will not affect any known archeological or historical site or any critical natural habitats, -nor will it entail resettlement or affect indigenous peoples. None of the structures to be rehabilitated include dams. Nevertheless, the project may cause some environmental impacts that require mitigation measures related to: (i) inappropriate disposal of excavated materials, construction debris, and small quantities of hazardous wastes and materials related to construction activities; (ii) damage caused by contractors during construction activities; and (iii) nuisance during construction (noise, dust, and traffic disruption). The contract documents include provisions for mitigation measures and/or avoidance. Participating vodokanals, under the guidance of Gosstroi and the Bank, are preparing public meetings to discuss project objectives and construction activities and their likely impacts on the environment and public at large.

OP 7.50, "Intemational Waterways" applies to twelve sub-project, which are located on intemational waterways as defined by paragraphs (a) or (b) of the policy. These include the cities of Astrakhan, Cheboksary, Gagarin, Oryol, Petrozavodsk, Pskov, Sochi, Tobolsk, Volkhov, Vologda, and Votkinsk. These sub-project involve rehabilitation of existing schemes and/or construction, which in the team's judgment (i) will not adversely change the quality or quantity of water flows to the other riparians; and (ii) will not be adversely affected by the other riparians' water use. Given the nature of the planned interventions to be supported by the sub-project and the fact that they will not adversely impact downstream riparian countries, the exception to the external notification requirements of OP 7.50, as set forth in paragraph 7(a) of the policy has been determined by LEGOP and ECSSD to apply in the case of the project. To the extent that future sub-project sub-mitted by additional vodokanals or identified under MSOIP may impact the enviromnent within Russia and/or other riparian countries, they will have to comply with the applicable policies and procedures of the Russian Federation and Bank.

The project is expected to result in environmental and health benefits because: (i) rehabilitation and improved operation and maintenance of the water treatment plants will assure improved drinking water quality, reduction in the use of chemicals and better handling of water treatment residuals; (ii) rehabilitation of parts of the water supply network will reduce water losses and decrease the volume of water intake; (iii) rehabilitation and improved operation and maintenance of the wastewater treatment plants will reduce the risk of sewage spills, and assure improved quality of wastewater released after treatment and better handling of solid and liquid wastes; (iv) pumping station rehabilitation will increase energy efficiency of the vodokanals' operations; (v) improvement in operations will contribute to better day-to-day environmental management (treatment plant waste management, handling of chemicals, improvement in operation and maintenance of the sewerage network, including better emergency response; more efficient use of information from the existing water quality monitoring networks; better compliance with environmental regulations); and (vi) water conservation through demand management will reduce the need for construction of new capacity for years to come. Environmental issues will also be addressed in the Corporate Development Plans to be prepared under the project for each vodokanal. Potential environmental issues related to investments included in the fourteen cities that will initially be supported by the project are analyzed in the reports available in the Project Files; these will be complemented by sub-project specific EMMPs.

The project was reviewed and approved by the State Committee for the Ecology of the Russian Federation during appraisal. All components of sub-project with potentially significant negative environmental impacts, and particularly those with a construction budget over US$0.5M, will be reviewed by relevant environmental authorities (either the Department of State Ecological Expertise or its delegate at the municipal level) to ensure compliance with the Russian Law on Environmental Expertise. They will also be reviewed by the Bank for compliance with environmental and disclosure procedures. Review and approval of projects that require this process, particularly those components that require an EIA (OVOS) under local regulations, will take place prior to initiating construction. This procedure will also be followed for all components of investments in the fourteen initial cities, as well as those in later phases of the project.

During project supported construction, supervision of implementation of the environmental management plan for each sub-project will be one of the functions of the construction supervision consultants. The Project Implementation Unit at the Central Level will have the support of an advisor to ensure compliance of the bidding documents for proposed sub- project with Russian and Bank environrmentalguidelines. During project implementation, adequate resources will be made available for an environmental specialist to be part of the Bank team during supervision missions, Mid-Term Review and Implementation Completion Report. Contractors will be responsible, under the clauses of the bidding documents, for keeping work sites pollution-free, returning sites to their original conditions, and minimizing dust, noise and other work-related nuisances. They will also be responsible for notification of the discovery of any previously unknown archeological and/or historical sites that may be found during excavation activities.

4. Environmental Management and Monitoring Plans (EMMPs)

The EMMPs for each sub-project have been prepared for the participating vodokanals by the NFHR with the assistance of an international consultant. The EMMPs include a description of the legal and administrative framework of the environment sector with specific application to the sub-project, a description of the baseline conditions, identification of potential environmental impacts; identification of specific mitigation measures; and recommended monitoring actions. The EMMPs include information on implementation and monitoring responsibilities. The provisions already included in contract documents and enforced through the EMIP are adequate to minimize potential negative environmental impacts associated with project supported activities. The EMMPs will be implemented by participating vodokanals and supervised by engineering consultants, NFHR, and environmental authorities at the municipal level.

The project includes support for a number of site specific interventions to improve water and sewage services in cooperating municipalities. Project supported activities in each municipality included the preparation of a feasibility study complemented by an EMMP. The process used in the project is to have the feasibility studies and the associated EMMPs reviewed on a sub-project basis by both Russian environmental authorities and the Bank before proceeding with the implementation process. The draft and final EMMPs will be disclosed in English and Russian on an ongoing basis during the course of project implementation, in the cooperating municipalities, Resident Mission and InfoShop.

5. Environmental Assessment by Project Cities

5. 1 Astrakhan In Astrakhan, one component - rehabilitation of a sewage interceptor (US$0.7 million)- has been designed and bidding documents prepared, corresponding to about 4% of the total sub- project costs of US$18.9 million. In addition, the rehabilitation of two main sewage pumping stations has been proposed and designs are expected to be available by the end of 2000. About half of the investment components are still unidentified and will be selected with the help of technical assistance consultahts during the early stages of project implementation.

For the purpose of OP 4.01 on Environmental Impact Assessment, the project has been classified as Category B, which requires a limited environmental review to determine potential negative environmental impacts and propose mitigation measures where needed. The project is expected to bring environmental, as well as health, benefits because: (i) rehabilitation and improved operation and maintenance of the water treatment plants will assure better drinking water quality, reduction in the use of chemicals and better handling of water treatment residuals; (ii) rehabilitation of parts of the water supply network will reduce water losses and decrease the volume of water intake; (iii) rehabilitation and improved operation and maintenance of the wastewater treatment plants will reduce the risk of spillage of sewage, and assure improved quality of wastewater released after treatment and better handling of solid and liquid waste; (iv) pumping stations rehabilitation will increase energy efficiency of the Vodokanals' operations; (v) improvement in operations will contribute to a better day-to-day environmental management (treatment plants waste management, handling of chemicals and toxic substance, improvement in the operation and maintenance of the sewerage network, including improved emergency response; more efficient use of informnationfrom the existing water quality monitoring networks; better compliance with environmental regulations) ; and (vi) water conservation through demand management is expected to eliminate the need for the construction of new capacity for years to come.

ACVK has two wastewater treatment plants: the Northern wastewater treatment plant and the Southern wastewater treatment plant, each serving their own zone. The Northem wastewater treatment plant is located at Moshaik Street. It was designed by the Rostov Institute and built with a capacity of 90,000 m3/day in 1979, and expanded by 50,000 m3/day in 1995. Against this design capacity of 140,000 m3/d, around 103,000 m3/d is actually used. The BODs- reduction is from 75 mg/I down to 2.7 mg/I, or 96.4%. A main reason for this result was obviously the very low BOD-load of the influent, which may indicate surface or groundwater intrusion into the sewerage system during the prevalent high water season. Also some phosphorus and nitrogen reduction takes place in the process. Its effluent is being discharged to the Volga River, through a 2.5 km long 1500 mm concrete effluent pipeline. Sludge disposal at this plant was reported to be a problem, because of a lack of modern sludge treatment facilities. There is sufficient space on site for another 10 years' sludge storage.

Southern wastewater treatment plant is located at Kabardinskaya Street. It has a capacity of 100,000 m3/day and was constructed in two stages: mechanical treatment only (1963) and biological treatment added (1975). It is currently operating at an actual load of 73,000 - 75,000 m3/day. The design was based on an influent quality of 250 mg/l BOD and 300 mg/l suspended solids, with 94% BOD removal (effluent: 15 mg/I BOD). Sludge is deposited in sludge fields, located about 6 km outside the town. There are 18 fields in total; their capacity is reported to be used for 60-70% now. In fact, six sludge fields are still completely empty, while it takes two years for a field to dry completely.

There are no measurements of bacterial discharges neither into the river nor in the river. However, it is reasonable to assume that the level is high and the Caspian Sea downstream may be affected.

Review of potential environmental impacts. As the components defined for the immediate investment program only involve reconstruction of existing infrastructure, any potentially significant environmental impact will be minimized using appropriate construction methods. The ultimate objective of all components (immediate and those to be identified) will be to improve environmental and health conditions in the city of Astrakhan. These components will not raise any resettlement or property rights issues since they focuse on rehabilitation of existing network and facilities. All work will be executed either within the premises of existing facilities or the rights of way of public street networks. The project will not affect any known archeological or historical site. In order to minimize impacts during implementation of immediate investments, contractors will be responsible, under the clauses of the bidding documents, for keeping work sites pollution-free, returning sites to their original conditions, and minimizing dust, noise and other work-related nuisances. They will also be responsible for notification of the discovery of, or any problem related to, previously unknown historical sites.

All components with potentially significant negative environmental impacts, and particularly those with a construction budget over US$0.5 million, will be reviewed by relevant environmental authorities (either the Department of State Ecological Expertise or their delegate at the municipal level) to ensure compliance with the Russian Law on Environmental Expertise. Review and approval of projects that require this review, particularly those components that require an EIA (OVOS), will take place prior to initiating construction. This procedure will be followed for all components in the immediate group of investments, as well as those in later phases of the project.

S. 2 Cheboksary In Cheboksary, three components - improvement of the water intake (US$3.1 million), improvement of pumping efficiency (US$0.3 million) and installation of flow meters (US$3.1 million)- have been identified and bidding documents prepared, corresponding to about 26 % of the total sub-project costs of US$17.4 million. The remaining investment components will be selected with the help of technical assistance consultants during the early stages of project implementation.

For the purpose of OP 4.01 on Environmental Impact Assessment, the project has been classified as Category B, which requires a limited environmental review to determine potential negative environmental impacts and propose mitigation measures where needed. The project is expected to bring environmental, as well as health, benefits because: (i) rehabilitation and improved operation and maintenance of the water treatment plants will assure better drinking water quality, reduction in the use of chemicals and better handling of water treatment residuals; (ii) rehabilitation of parts of the water supply network will reduce water losses and decrease the volume of water intake; (iii) rehabilitation and improved operation and maintenance of the wastewater treatment plants will reduce the risk of spillage of sewage, and assure improved quality of wastewater released after treatment and better handling of solid and liquid waste; (iv) pumping stations rehabilitation will increase energy efficiency of the Vodokanals' operations; (v) improvement in operations will contribute to a better day-to-day environmental management (treatment plants waste management, handling of chemicals and toxic substance, improvement in the operation and maintenance of the sewerage network, including improved emergency response; more efficient use of information from the existing water quality monitoring networks; better compliance with environmental regulations) ; and (vi) water conservation through demand management is expected to eliminate the need for the construction of new capacity for years to come.

Current Environmental Conditions. Treated effluent from the WWTP is discharged into the Tsivil River for effluents coming from Line 1, and into the Volga River for Line 2. The Volga River, forming the northern border of Chuvashia, is also the main river in the study area. At the heights of Cheboksary the Volga assumes almost the characteristics of a lake, with a width ranging from 4 to 13 km, due to the regulating dam built in 1985 near Novocheboksary for hydroelectric exploitation of its large flow. The annual average flow in 3 3 the Volga, at Novocheboksary dam, is some 1,200 m /s with minimum flow of about 700 m /s during the winter month, when the entire lake surface is covered by a thick layer of ice. During the snow melting period in April and May, the highest flows are registered with monthly average values in the range of 1,500-2,000 m3/s. The construction of the impounding dam caused important deterioration of the Volga water quality, due to decay of the submerged vegetation. During the year, it is worth mentioning the high quantity of organic substances like algae and plankton during the summer months. In autumn, when the water temperature drops, in association to frequent rainfalls and high discharges, the water in the lake assumes higher turbidity and colour.

Some sources of pollution of the Volga River in the city of Cheboksary include the WTP, where water from backwashing and the sludge removed periodically from the settling basins are discharged into the Volga River without any treatment. Another important source of pollution is the storm drainage system

Table 5.2.1 presents a summary of the WWTP performance in 1996. Altogether, treated effluent characteristics, both from Line 1 and 2, result in fair compliance with the temporary limits set for 1998, but are by far worse than the relevant prescribed final limits. It is also to be pointed out that current results obtained by the existing treatment plants, would be considered satisfactory with respect to foreign norms. On the other hand, to reach a fair compliance with final limits, treatment process should be extended beyond biological treatment, with the construction of further advanced treatment sections, demanding high investment cost and more elevated Operation and Maintenance (O&M) cost. Table 5.2.1 Characteristics of Influent Flow and Effluent of Lines 1 and 2 in 1997

No. Contamina Combin Effluent Norm Limits Influent Effluent Norm Limits nt ed From Limits Final Flow to From Limits Final Influent Linel for 1998 limits Line2 Line2 for 1998 limits to Linel Annual mg/l mg/l Annual Annual mg/I mg/l Annual Average Average Average Average mg/l mg/I mg/i

1 Suspended 42,5 10,065 28,22 8,092408

Solids ______2 Chlorides 999,2 748,74 900 75,1879 81,9 80,8 90,33 12,406 3 Sulfates 270,2 172,6 215 14,3184 142,5 97 117,25 9,50745 4 Nitrates 1,26 5,448_ 15 7,342 1,38 2,39 2 2,9956 S Dry 1652,7 1080,99 1189,72 907,714 264,7 206 758 607,143 Residual 6 BOD20 15,926 4,9 12 2,063 7 COD 269,7 65,8 120,464 19,1167 163,5 40,6 50,2 12,948 8 Ammonium 23,3 13,48 11,871 0,0272 18,14 10,3 12 0,028

___ sa lt ______9 Nitrites 0,13 0,185 0,548 0,001926 0,138 0,5 0,7 0,0057 10 Phosphates 1,42 2,335 1,5 0,03069 1,5 1,35 1,5 0,017968 11 Aniline 0 0,0001 0,000016 0 No No 12 Copper 0,0156 0,0046 0,24 0,00123 0,0069 0,0013 0,004 0,000020 13 Methilene 0,23 0,23 No No _ Chloride _ 14 Chlorobenze 0,02 0,000166 No No

ine __ __ _ 15 Zinc 0,107 0,0423 0,05 0,0132 0,056 0,0053 0,05 0,000182 16 Synthetic 0,66 0,06317 0,56 0,04341 Tensioactive

17 Thionates 0,00065 0 0,1 0,00929 0,0013 0 0,025 0,000326

18 Cobalt I___I _I 0,422 0,001016 0,24 0,000368 -~ - 19 Cadmium 0,005 0,000086 0,001 0,000122 20 Lead 0,0084 0,0036 0,003 0,003 21 Nickel 0,06 0,000635 a0,01 0,00052 22 Cyanides 0,008 0,0078 0,001 0,001 23 Phenilhydra 0,059 0 0,00018 0,000080 0,0056 0 0,01 0,000043 zine 24 Chromium+ 0,226 0,0735 0,02 0,00175 0,103 0,05 0,005 0,00079 6 25 Chromium+ 0,012 0,000316 0,005 0,000258 3 26 Pheniltrophe 0,1 0,000016 No No no] 27 Iron Total 2,53 1,166 0,6 0,00648 1,67 0,75 0,6 0,005094 28 Phenols 0,069 0,0019 0,002 0,001461 0,014 0,00013 0,002 0,00025 29 Oil products 1,11 0,245 0,65 0,03554 0,61 0,091 0,65 0,01973 30 Softenex M- 0,0001 0,000016 No No 2 31 Nitrobenzoi 0,09 0,001666 No No n acid 32 Sulphanol 0,457 0,24 0,56 0,055556 0,42 0,16 0,56 0,013889 33 Chloroform 0,05 0,000833 No No 34 Calcium 180 40 180 10 35 Sodium 360 8,889 120 6,66667 36 pH 7,34 7,36 6,5-8,5 6,5-8,5 7,44 7,41 6,5-8,5 6,5-8,5 Dissolved Oxigen Transparenc 0,008

Odor 188,6 33,73 _ 129 23,1

Potential Environmental Impacts. A review of potential environmental impact of the proposed investments has been carried out during project preparation. The components identified for immediate investments are not expected to cause significant negative environmental effects, as they involve rehabilitation and limited improvements of existing water infrastructure (booster stations, pumps). These components will not raise any resettlement or property rights issues since it focuses on rehabilitation of existing facilities. All work, including the reconstruction of the main transmission line will be executed within the premises of existing facilities. The project will not affect any known archeological or historical site.

All components with potentially significant negative environmental impacts, and particularly those with a construction budget over US$0.5 million, will be reviewed by relevant environmental authorities (either the Department of State Ecological Expertise or their delegate at the municipal level) to ensure compliance with the Russian Law on Environmental Expertise. Review and approval of projects that require this review, particularly those components that require an EIA (OVOS), will take place prior to initiating construction. This procedure will be followed for all components in the immediate group of investments, as well as those in later phases of the Project. 5.3 Gagarin

In Gagarin, two components-supply of laboratory equipment (US$0.04 million) and improvement of distribution pumps (US$0.3 million) - have been identified and tender documents prepared, corresponding to about 21 % of the total sub-project costs of about US$ 1.4 million. The remaining investment components will be selected with the help of technical assistance consultants during the early stages of project implementation.

For the purpose of OP 4.01 on Environmental Impact Assessment, the project has been classified as Category B, which requires a limited environmental review to determine potential negative environmental impacts and propose mitigation measures where needed. The project is expected to bring environmental, as well as health, benefits because: (i) rehabilitation and improved operation and maintenance of the water treatment plants will assure better drinking water quality, reduction in the use of chemicals and better handling of water treatment residuals; (ii) rehabilitation of parts of the water supply network will reduce water losses and decrease the volume of water intake; (iii) rehabilitation and improved operation and maintenance of the wastewater treatment plants will reduce the risk of spillage of sewage, and assure improved quality of wastewater released after treatment and better handling of solid and liquid waste; (iv) pumping stations rehabilitation will increase energy efficiency of the Vodokanals' operations; (v) improvement in operations will contribute to a better day-to-day environmental management (treatment plants waste management, handling of chemicals and toxic substance, improvement in the operation and maintenance of the sewerage network, including improved emergency response; more efficient use of information from the existing water quality monitoring networks; better compliance with environmental regulations) ; and (vi) water conservation through demand management is expected to eliminate the need for the construction of new capacity for years to come.

Current Environmental Conditions. Gagarin WWTP is an (ultra) low-loaded conventional activated sludge system. The effluent of the Gagarin WWTP is discharged into the Gzhat River. The following table shows the present effluent quality and the maximum allowable concentrations (MAC values) of organic compounds and nutrients. Also the latest standards used in EU countries are given.

Parameter [mg/i] Effluent WWTP MAC Standards EU countries COD 27 < 30 < 50-100 BOD 6 < 3.8 < 10 P 1.8 <0.2 <1-2 N-NH4 0.7 0.7 < 10 N-NO2 0.5 0.1 < 1 N-NO3 9.8 3.7 < 10 N-total 10.5 4.5 < 10

According to the MAC values the concentrations of phosphorus and of the nitrogen compounds ammonia, nitrite and nitrate are critical. To lower the nitrogen concentration in the effluent, denitrification measures must be implemented at the wastewater treatment plant. To lower the phosphorus concentration, chemicals for precipitation must be added to the activated sludge system. The measures for advanced nitrogen and phosphorus removal will be process-integrated measurements. Therefore, extension of the activated sludge volume is not necessary.

Compared to the EU guidelines, especially the Russian standards for COD, BOD, P and ammonia removal are very strict. To meet these standards, ultra low-loaded activated sludge systems are required. The investment costs for these kind of systems are very high and the effectiveness of such investments in relation to their environmental impact, such as river water quality, is doubtful.

The sludge (primary and secondary sludge) at the wastewater treatment plant is currently thickened (1-2%) but not treated any further before being pumped to the sludge ponds next to the treatment plant. Natural dewatering of the sludge takes place there, but this is not sufficient to prevent that the sludge ponds are filling up. Both from an environmental pollution point of view and according to the new regulations, a sludge treatment system would be preferable.

Review of potential environmental impacts. As the components defined for the immediate investment program only involve reconstruction of existing infrastructure, any potentially significant environmental impact will be minimized using appropriate construction methods. The ultimate objective of all components (immediate and to be defined) will be to improve environmental and health conditions in the city of Gagarin. These components will not raise any resettlement or property rights issues since they focuse on rehabilitation of existing network and facilities. All work will be executed either within the premnisesof existing facilities or the rights of way of public street networks. The project will not affect any known archeological or historical site.

In order to minimize impacts during implementation of inmmediateinvestments, contractors will be responsible, under the clauses of the bidding documents, for keeping work sites pollution-free, returning sites to their original conditions, and minimizing dust, noise and other work-related nuisances. They will also be responsible for notification of the discovery of, or any problem related to, previously unknown historical sites.

All components with potentially significant negative environmental impacts, and particularly those with a construction budget over US$0.5 million, will be reviewed by relevant environmental authorities (either the Department of State Ecological Expertise or their delegate at the municipal level) to ensure compliance with the Russian Law on Environmental Expertise. Review and approval of projects that require this review, particularly those components that require an EIA (OVOS), will take place prior to initiating construction. This procedure will be followed for all components in the immediate group of investments, as well as those in later phases of the project.

5.4 Kansk

In Kansk, two major components - rehabilitation of water treatment plant (US$1.4 million) and reconstruction of sewage interceptor and pumping stations (US$6.1 million) - have been identified and bidding documents are under preparation, corresponding to about 77% of the total sub-project costs of US$9.7 million). The remaining investment components will be selected with the help of technical assistance consultants during the early stages of project implementation..

For the purpose of OP 4.01 on Environmental Impact Assessment, the project has been classified as Category B, which requires a limited environmental review to determnine potential negative environmental impacts and propose mitigation measures where needed. The project is expected to bring environmental, as well as health, benefits because: (i) rehabilitation and improved operation and maintenance of the water treatment plants will assure better drinking water quality, reduction in the use of chemicals and better handling of water treatment residuals; (ii) rehabilitation of parts of the water supply network will reduce water losses and decrease the volume of water intake; (iii) rehabilitation and improved operation and maintenance of the wastewater treatment plants will reduce the risk of spillage of sewage, and assure improved quality of wastewater released after treatment and better handling of solid and liquid waste; (iv) pumping stations rehabilitation will increase energy efficiency of the vodokanals' operations; (v) improvement in operations will contribute to a better day-to-day environmental management (treatment plants waste management, handling of chemicals and toxic substance, improvement in the operation and maintenance of the sewerage network, including improved emergency response; more efficient use of informnationfrom the existing water quality monitoring networks; better compliance with environmental regulations) ; and (vi) water conservation through demand management is expected to eliminate the need for the construction of new capacity for years to come.

Current Environmental Conditions. Currently, treated effluent from the WWTP in Kansk is discharged into the Kan River. This river flows south to north for approximately 400 km and drains an area of 23,800 km2 prior to reaching the city of Kansk. The river continues eastward and discharges into the Yenisey River. The sparsely populated drainage area contains flatlands and the Vostochnyy Sayan Mountains. Total 48% melted snow, 32% rainwater, and 20% groundwater discharges feed the annual river volume. River flow rates vary between 12 and 4,480 m3/s at Kansk, with the lowest flow rates in the winter. The city of Kansk uses the Kan River for its supply of water.

Quality of water in the Kan River varies during the year. High river flow rates in the spring increase the turbidity up to 80 mg/I. In addition, the water quality is somewhat compromised by the presence of benzopyrene, hydrocarbons, phenols, methanol, lignosulfonates, asphaltenes, and metals (zinc, copper, aluminum, manganese, nickel, and lead). Table 20 shows water quality data in the Kan River at the Left Bank intake facility.

The wastewater collection and treatment systems in Kansk are in a state of emergency. Pretreatment of the industrial wastewater, sewage collection system, wastewater treatment plant operation, and sludge handling facilities are in a poor state of repair and operate with gross inadequacies. In addition to the inadequate facilities and equipment, wastewater received at the plant is highly concentrated and the plant is hydraulically overloaded. Table 2 1presents a summary of the WWTP perfornance in 1996. The plant seems to be unable to handle the high concentrations of solids, BOD, COD, sulfites, sulfates, and other constituents presents in the strong incoming wastewater. The effluent discharged to the Kan River is of very poor quality. A biological process at the secondary treatment units is limited, as indicated by low oxygen content and poor BOD removal efficiency. Reportedly, plant discharge significantly exceeds limits for suspended solids, E. Coli and oxygen content. Table 5.4.1 River Water Quality in the Kan River at the Left Bank Intake Facility in 1996.

Parameter Concentration (mg/i) max- min COD 1.2-4.07 Total Dissolved Solids 112-230 Ammonia-N n.d.-0.17 Nitrites-N n.d.-0.009 Nitrates-N n.d.-5.2 Total iron 0.016-0.1 E. Coli index 2,300-6,200 Copper 0.01-0.02 Sulfates 1.72-25

Table 5.4.2 Performance of the Wastewater Treatment Plant in 1996.

Parameter Influent Effluent m_gl mg/ BOD5 836 122 Suspended Solids 339 80 Ammonia - N 28.6 5.6 Nitrate - N 1.2 0.6 Nitrite - N nd 0.04 Phosphate - P 9.9 3.5 Chlorides 81 73 Sulphates 220 162 Fe 3.0 0.7 Surfactants 0.27 0.065 Hydrocarbons 0.44 l 0.16 Phenols 0.13 0.001 Methanol 2.5 0.65

Review of potential environmental impacts. As the components defined for the immediate investment program only involve reconstruction of existing infrastructure, any potentially significant environmental impact will be minimized using appropriate construction methods. The ultimate objective of all (immediate and to be defined) components will be to improve environmental and health conditions in the city of Kansk by improving the quality of potable water, as well as reduce the risk of sewage overflow and flooding. These components will not raise any resettlement or property rights issues since they focus on the rehabilitation of existing network and facilities. All work will be executed either within the premises of existing facilities or the rights of way of public street networks. The project will not affect any known archeological or historical site.

In order to minimize impacts during implementation of immediate investments, contractors will be responsible, under the clauses of the bidding documents, for keeping work sites pollution-free, retuming sites to their original conditions, and mninimizingdust, noise and other work-related nuisances. They will also be responsible for notification of the discovery of, or any problem related to, previously unknown historical sites.

S S All components with potentially significant negative environmental impacts, and particularly those with a construction budget over US$0.5 million, will be reviewed by relevant environmental authorities (either the Departmnentof State Ecological Expertise or their delegate at the municipal level) to ensure compliance with the Russian Law on Environmental Expertise. Review and approval of projects that require this review, particularly those components that require an EIA (OVOS), will take place prior to initiating construction. This procedure will be followed for all components in the immediate group of investments, as well as those in later phases of the project.

5.5 Nakhodka In Nakhodka, two components - rehabilitation of water pumping station (US$3.0 million) and installation of meters (US$0.5 million)- have been identified and bidding documents prepared, corresponding to about 64% of the total sub-project costs of US$5.6 million. The remaining investment components will be selected with the help of technical assistance consultants during the early stages of project implementation.

For the purpose of OP 4.01 on Environmental Impact Assessment, the project has been classified as Category B, which requires a limited environmental review to determine potential negative environmental impacts and propose mitigation measures where needed. The project is expected to bring environmental, as well as health, benefits because: (i) rehabilitation and improved operation and maintenance of the water treatment plants will assure better drinking water quality, reduction in the use of chemicals and better handling of water treatment residuals; (ii) rehabilitation of parts of the water supply network will reduce water losses and decrease the volume of water intake; (iii) rehabilitation and improved operation and maintenance of the wastewater treatment plants will reduce the risk of spillage of sewage, and assure improved quality of wastewater released after treatment and better handling of solid and liquid waste; (iv) pumping stations rehabilitation will increase energy efficiency of the Vodokanals' operations; (v) improvement in operations will contribute to a better day-to-day environmental management (treatmnentplants waste management, handling of chemicals and toxic substance, improvement in the operation and maintenance of the sewerage network, including improved emergency response; more efficient use of infornation from the existing water quality monitoring networks; better compliance with environmental regulations) ; and (vi) water conservation through demand management is expected to eliminate the need for the construction of new capacity for years to come.

Current Environmental Conditions.

The wastewater qualities are monitored at the inlet and outlet of the treatment plant on five quality items, including i)Temperature, ii) pH, iii) BOD, iv) COD, v) SS and nutrient compounds. The WWTP effluent qualities are generally good, whereas those discharged from the wastewater and drainage outfalls are the major pollutant sources of the water bodies. The wastewater qualities discharged through outfalls at certain points, particularly those discharging to the sea coast have high pollutant concentrations, for example, 100 mg/l or higher BOD5 ,suggesting that urgent measures are to be taken to prevent such discharge.

Almost 200 outfalls within the Nakhodka discharge wastewater and stormwater. Of the total assumed wastewater production of 50,000 m3/day, the WWTP is currently treating only 20,000 m3 /day or 40 percent of the total wastewater production. The balance is being either discharged to the bay or infiltrate into ground.

The WWTP effluent qualities are generally good, whereas those discharged from the raw wastewater and drainage outfalls carry many portions of pollutants and considered being the major pollutant sources. The WWTP effluent generally has BOD5 contents of less than 15 mg/I. The raw wastewater inflowing to the bay through outfalls have BOD5 concentrations of more than 100 mg/l, consequently, the waste concentrations in the bay water close to outfalls are generally high.

As no comprehensive long-term water quality monitoring program covering the entire bay area has been planned yet, the bay water quality data to show the extent of the bay contamination are limited. The available bay water quality data are those sampled by NVK at several monitoring points for checking the effect of WWTP effluent to the bay water. The bay water qualities at 1,000 m offshore were BODs 1.2 mg/I, Phosphates 0.1 mg/I, Nitrites 0.02 mg/I, etc., which values are lower than the water quality standard requirements.

Under the normal condition when tide current velocity is about I m/sec, an effluent of 20,000 m3/day containing 20 mg/l BOD, and 1,000 Coliform MPN/ml would easily be dispersed, dilluted and dieaway. Thus, result in BOD5 of lower than 0.0006 mg/l and almost nil Coliform (Tgo 3hr.) survival in the 1,000-m offshore water. Although some assumptions were made for these figures, it may be reasonable to consider that the bay water at 1,000-m offshore was no longer affected by the WWTP effluent constituent.

The region's morbidity statistics in the last several years, indicate that there has been small number of the water-born disease patients, which are no more than the normal level. These may be explained by the low ambient temperatures prevailing in the region throughout the year, which made the people less chance to contact with the contaminated water, while giving unfavorable habitats for propagation of microorganisms.

The pollution contribution through rural and urban drainage may however continue to increase in the future. Predictions of the future organic loading on the waterways suggest that even after the collectible domestic and industrial wastewater is completely removed from the service area, the residual pollution from outside of the sewer service area may affect in parts of rivers and coastal zones.

Review of potential environmental impacts. As the components defined for the immediate investment program only involve reconstruction of existing infrastructure, any potentially significant environmental impact will be minimized using appropriate construction methods. The ultimate objective of all components will be to improve environmental and health conditions in the city of Nakhodka. These components will not raise any resettlement or property rights issues since it focuses on rehabilitation of existing network and facilities. All work will be executed either within the premises of existing facilities or the rights of way of public street networks. The project will not affect any known archeological or historical site.

In order to minimize impacts during implementation of immediate investments, contractors will be responsible, under the clauses of the bidding documents, for keeping work sites pollution-free, retuming sites to their original conditions, and minimizing dust, noise and other work-related nuisances. They will also be responsible for notification of the discovery of, or any problem related to, previously unknown historical sites.

All components with potentially significant negative environmental impacts, and particularly those with a construction budget over US$0.5 million, will be reviewed by relevant environmental authorities (either the Department of State Ecological Expertise or their delegate at the municipal level) to ensure compliance with the Russian Law on Environmental Expertise. Review and approval of projects that require this review, particularly those components that require an EIA (OVOS), will take place prior to initiating construction. This procedure will be followed for all components in the immediate group of investments, as well as those in later phases of the project. 5.6 Oryol

In Oryol, two components - extension of Kromskoi well field (US$1.4 million) and replacement of transmission mains (US$ 1.0 million) - have been designed and bidding documents prepared, corresponding to about 29% of the total sub-project cost of US$8.3 million. The remaining investment components will be selected with the help of technical assistance consultants during the early stages of project implementation.

For the purpose of OP 4.01 on Environmental Impact Assessment, the project has been classified as Category B, which requires a limited environmental review to determine potential negative environmental impacts and propose mitigation measures where needed. The project is expected to bring environmental, as well as health, benefits because: (i) rehabilitation and improved operation and maintenance of the water treatment plants will assure better drinking water quality, reduction in the use of chemicals and better handling of water treatment residuals; (ii) rehabilitation of parts of the water supply network will reduce water losses and decrease the volume of water intake; (iii) rehabilitation and improved operation and maintenance of the wastewater treatment plants will reduce the risk of spillage of sewage, and assure improved quality of wastewater released after treatment and better handling of solid and liquid waste; (iv) pumping stations rehabilitation will increase energy efficiency of the Vodokanals' operations; (v) improvement in operations will contribute to a better day-to-day environmental management (treatment plants waste management, handling of chemicals and toxic substance, improvement in the operation and maintenance of the sewerage network, including improved emergency response; more efficient use of information from the existing water quality monitoring networks; better compliance with environmental regulations); and (vi) water conservation through demand management is expected to eliminate the need for the construction of new capacity for years to come.

Current Environmental Conditions Wastewater from the wastewater treatment plants in Oryol is discharged into the Oka River. Oka is a tributary of the Volga River and rises approximately 50 km south of Oryol. The total length of the river is 1480 km and covers a drainage area of 239 900 kIa2. The river is mainly surrounded by agricultural land and passes about 60 km south of Moscow on its way to the Volga River.

Table 5.6.1 River Water Quality in Upstream and Downstream of the Main WWTP in 1996

= Before WWTP (mg/l) After WWTP(mg/1) COD 18 32 BOD5 3.5 5.8 Suspended Solids 16.4 18.6 Ammonia-N 0.34 2.6 Nitrite-N 0.019 0.098 Nitrate-N 0.49 0.6 Total-N ' 1.2 4.7 Phosphate 0.04 0.28 Total-P ' 0.06 0.4 Cadmium 0.93 gg/l 1.6 4g/l 'Estimated that Norgand Po,, is 30% of the total N and P content.

Oka River is a eutrophicated river with high amounts ofnutritive salts and oxygen consuming material. According to European classification, the phosphorus, nitrogen and COD concentrations are all regarded as very high. The lirnits for a highly eutrophicated river in Europe are set at level of 50 jLg/lfor phosphorus and 1,5 mgll for nitrogen. After the discharge from the wastewater treatment plant these levels are exceeded almost ten times in the case of phosphorus and about 3 times for nitrogen.

Cadrnium is the only metal analyzed in the river and for this reason it is hardly appropriate to assess the impact of heavy metals before and after passing through the treatment plant. According to the European standard >0.3 jugcadmium / I is regarded as a very high level of cadmium in the water. In Oka River such a level is exceeded both upstream and downstream of the treatment plant.

According to the measurements given in table 4.6 the impact of the wastewater treatment plant is extremely high in the river. The nitrogen and phosphorus concentrations are four times higher downstream the treatmnentplant and the BOD5 concentration is twice as much.

There are no measurementsof bacterialdischarges neither into the river nor in the river. However,it is reasonableto assumethat the level is high and those downstreamcities, such as Tula, may be affected.

Review of potential environmental impacts. One component defined for the immediate investmentprogram involve the extensionof groundwaterabstraction capacity at Kromskoi well field to improve service level in certain areas of Oryol. This increasein abstractionis within limits of currentpermits, well belowof potential capacity and does not pose any risk to environment.In addition,it will allow to reduce abstractionof water from wells of poor water quality.Installation of water meters will take place within existingfacilities and any potentiallysignificant environmental impact will be minimizedusing appropriateconstruction methods.The ultimateobjective of all components(immediate and to be identifiedin later stages)will be to improve environmentaland health conditionsin the city of Oryol. These componentswill not raise any resettlementor property rights issues since they focuseon rehabilitationof existingnetwork and facilities. All work will be executedeither within the premisesof existing facilitiesor the rights of way of public street networks. The project will not affect any archeologicalor historicalsite.

In order to minimizeimpacts duringimplementation of immediateinvestments, contractors will be responsible,under the clausesof the bidding documents,for keeping work sites pollution-free,returning sites to their originalconditions, and minimizingdust, noise and other work-relatednuisances. They will also be responsiblefor notificationof the discovery of, or any problem related to, previouslyunknown historical sites.

All componentswith potentiallysignificant negative environmentalimpacts, and particularly those with a constructionbudget over US$0.5million, will be reviewed by relevant environmentalauthorities (either the Departmentof State EcologicalExpertise or their delegateat the municipallevel) to ensurecompliance with the RussianLaw on Environmental Expertise. Review and approvalof projectsthat require this review,particularly those componentsthat require an ELA(OVOS), will take place prior to initiatingconstruction. This procedurewill be followed for all componentsin the immediategroup of investments,as well as those in later phases of the project.

5.7 Pechora In Pechora, two major components- renovationof the water treatmentplant (US$4.2million) and constructionof transmissionpipeline (US$0.7million) - have been identifiedand bidding documentshave been prepared,corresponding to about 70% of the total sub-projectcosts of US$6.9 ihillion).The remaining investmentcomponents will be selectedwith the help of technicalassistance consultants during the early stages of project implementation. For the purpose of OP 4.01 on Environmental Impact Assessment, the project has been classified as Category B, which requires a limited environmental review to determine potential negative environmental impacts and propose mitigation measures where needed. The project is expected to bring environmental, as well as health, benefits because: (i) rehabilitation and improved operation and maintenance of the water treatment plants will assure better drinking water quality, reduction in the use of chemicals and better handling of water treatment residuals; (ii) rehabilitation of parts of the water supply network will reduce water losses and decrease the volume of water intake; (iii) rehabilitation and improved operation and maintenance of the wastewater treatment plants will reduce the risk of spillage of sewage, and assure improved quality of wastewater released after treatment and better handling of solid and liquid waste; (iv) pumping stations rehabilitation will increase energy efficiency of the Vodokanals' operations; (v) improvement in operations will contribute to a better day-to-day environmental management (treatment plants waste management, handling of chemicals and toxic substance, improvement in the operation and maintenance of the sewerage network, including improved emergency response; more efficient use of information from the existing water quality monitoring networks; better compliance with environmental regulations); and (vi) water conservation through demand management is expected to eliminate the need for the construction of new capacity for years to come.

Current Environmental Conditions. Currently the city of Pechora is the main discharger impacting the river water quality in the Pechora region. Treated effluent from the wastewater treatment plant in Pechora is discharged into the Pechora River. The discharge pipe is equipped with a diffuser to ensure even mixing in the river. There is also a fish farm upstream the city in connection with the gas turbine power plant. The fish are grown in the cooling water discharge area. The plant has been designed for 500 tons of fish per day. During normal operation, the oil industry does not impact the quality of the river water. An oil accident occurred in 1989 in the catchment area of Maloje Kozhva River, a tributary of Pechora River. No impacts on Pechora River water quality or ecosystem were reported, because the accident occurred in spring and the melting waters diluted the oil. The oil pipelines passing Pechora River are monitored frequently by the oil industry and the risk of rupture is currently considered minimal.

PVK monitors the quality of Pechora River upstream and downstream of the discharge point of the wastewater. The samples are taken only during the period of no-ice and analyzed in the wastewater laboratory of PVK. This data of the river water quality from sample points is given in the consultant's report.

There is no data on the total nitrogen and phosphorus concentrations. However, the phosphate-phosphorus concentration indicates slightly eutrophic conditions. The ammonium- nitrogen concentration was very high in 1994 and also surprisingly high in 1995-1996 compared to the nitrate-nitrogen concentration, especially since the oxygen concentration was high during the sampling periods.

The values of COD are rather high, which might indicate strong impact of drainage water from mires. However, the concentration of iron is fairly low and the pH close to seven, which do not indicate impacts of mires. The concentrations of phenol and surface active compounds are low. The oxygen concentration is high during the non-ice period.

According to the monitoring results of the Vodokanal, the impacts of wastewaters on the river water quality includes:

* concentration of saspended solids increases; * COD increases; * BOD increases; * no clear impacts on nitrogen concentrations (total nitrogen results missing); * very slight increase in the phosphate-phosphorus concentration or no impact; and * no impacts from iron, oil product, oxygen, phenol or surfactants.

The nutrients in the treated wastewater are mainly nitrate-nitrogen and phosphate-phosphorus form.

There is no flow data available for Pechora River. The dilution of wastewater is adequate in Pechora River. The discharge of treated effluent is not expected to impact the chemical or hygienic quality of Pechora River and cause any adverse impacts.

There are no national parks or other sensitive habitats in the vicinity of Pechora. The discharge of wastewater from the wastewater treatment plant is not expected to affect the endemic salmon population or other rare fish species.

Review of potential environmental impacts. The components defined for the immediate investment program involve the reconstruction of existing infrastructure (water treatment plant) and the construction of a new water transmission pipeline. Any potentially significant environmental impact will be minimnizedusing appropriate construction methods. The ultimate objective of both components will be to improve environmental and health conditions in the city of Pechora by improving the quality of potable water supplied to the consumers. These components will not raise any resettlement or property rights issues. All work will be executed either within the premises of existing facilities or the rights of way of public street networks. The project will not affect any known archeological or historical site.

In order to minimize impacts during implementation of immediate investments, contractors will be responsible, under the clauses of the bidding documents, for keeping work sites pollution-free, returning sites to their original conditions, and minimizing dust, noise and other work-related nuisances. They will also be responsible for notification of the discovery of, or any problem related to, previously unknown historical sites.

All components with potentially significant negative environmental impacts, and particularly those with a construction budget over US$0.5 million, will be reviewed by relevant environmental authorities (either the Department of State Ecological Expertise or their delegate at the municipal level) to ensure compliance with the Russian Law on Environmental Expertise. Review and approval of projects that require this review, particularly those components that require an EIA (OVOS), will take place prior to initiating construction. This procedure will be followed for all components in the immediate group of investments, as well as those in later phases of the project.

5.8 Petrozavodsk In Petrozavodsk, one component - the rehabilitation of the wastewater treatment plant (US$8.6 million) - has been designed and bidding documents prepared, corresponding to about 62% of the total sub-project costs of US$13.9 million. In addition, the rehabilitation of water treatment plant has been identified as a priority and the design work will be initiated shortly. The remaining investment components (about 10 % of total) will be selected with the help of technical assistance consultants during the early stages of project implementation. -

For the purpose of OP 4.01 on Environmental Impact Assessment, the project has been classified as Category B, which requires a limited environmental review to determine potential negative environmental impacts and propose mitigation measures where needed. The project is expected to bring environmental, as well as health, benefits because: (i) rehabilitation and improved operation and maintenance of the water treatment plants will assure better drinking water quality, reduction in the use of chemicals and better handling of water treatment residuals; (ii) rehabilitation of parts of the water supply network will reduce water losses and decrease the volume of water intake; (iii) rehabilitation and improved operation and maintenance of the wastewater treatment plants will reduce the risk of spillage of sewage, and assure improved quality of wastewater released after treatment and better handling of solid and liquid waste; (iv) pumping stations rehabilitation will increase energy efficiency of the Vodokanals' operations; (v) improvement in operations will contribute to a better day-to-day environmental management (treatment plants waste management, handling of chemicals and toxic substance, improvement in the operation and maintenance of the sewerage network, including improved emergency response; more efficient use of information from the existing water quality monitoring networks; better compliance with environmental regulations) ; and (vi) water conservation through demand management is expected to eliminate the need for the construction of new capacity for years to come.

Current Environmental Conditions. PETVK water supply system extracts water from Petrozavodsk Bay on Lake Onega. The extraction site is located not far from the city's harbor front and only 8 km from the discharge point of the biological wastewater treatment plant. Under unfavorable hydro meteorological conditions, municipal wastewater can reach the inlet of the water supply system. Eutrophication and humus rich waters from River Shuya also affect Petrozavodsk Bay, with the corresponding decrease in water quality.

Raw water is treated by sand filtration and disinfected by chlorine. The existing water treatment system does not ensure drinking water quality of satisfactory quality, including bacterial pollution, according to the national standards. The water quality even deteriorates in the distribution system. The poor tap water quality increases the population morbidity (Source: Barents Region Environmental Program).

Biologically treated wastewater is being discharged into Petrozavodsk Bay. The treated wastewater causes noticeable pollution of the Petrozavodsk Bay. Due to increased nutrient loading, intensive development of blue-green algae (up to 1 million cells/liter, with the BODs of 0.4 g/m3 ) has in recent years been observed during the summer months in Petrozavodsk Bay.

The dewatered wastewater sludge is transported to a dumping site which has been constructed to an old gravel pit. The sludge has not been stabilized and is contaminated with heavy metals and cannot thus be utilized in agriculture. The sludge also causes environmental contamination of the general environment and the ground water resources in the vicinity of the dumping site.

Environmental impacts at Petrozavodsk WWTP are based on the loading figures of the basic scenario in 2010. These figures are reflected against present figures in Table 19. The most significant result will be the reduction of phosphorus emissions to Lake Onega which will be halved from the present situation due to the new biological removal process.

Table 5.8.1 Present and Future Loadingof PetrozavodskWWTP Parameter Unit Present (1996) loading 2010 loading

in out in out Qd million 45.41 45.41 40.88 40.88 m3/yr BOD5 ton/yr 7,037 681 7,037 < 613 SS ton/yr 7,493 n.a. 7,493 < 613 NH4-N ton/yr 1,132 545 1,132 < 409 Parameter Unit Present(1996) loading 2010 loading

in out in out tot-P kg/yr 226 127 226 < 61

Review of potential environmental impacts. As the components defined for the immediate investment program only involve reconstruction of existing infrastructure (water treatment plant and waste water treatment plant), any potentially significant environmental impact will be minimized using appropriate construction methods. The ultimate objective of both components will be to improve environmental and health conditions in the city of Petrozavodsk by improving the quality of potable water, as well as reduce the pollution of Lake Onega. These components will not raise any resettlement or property rights issues since it focuses on rehabilitation of existing network and facilities. All work will be executed either within the premises of existing facilities. The project will not affect any known archeological or historical site.

In order to minimize impacts during implementation of immediate investments, contractors will be responsible, under the clauses of the bidding documents, for keeping work sites pollution-free, returning sites to their original conditions, and minimizing dust, noise and other work-related nuisances. They will also be responsible for notification of the discovery of, or any problem related to, previously unknown historical sites.

All components with potentially significant negative enviromnental impacts, and particularly those with a construction budget over US$0.5 million, will be reviewed by relevant environmental authorities (either the Department of State Ecological Expertise or their delegate at the municipal level) to ensure compliance with the Russian Law on Environmental Expertise. Review and approval of projects that require this review, particularly those components that require an ETA (OVOS), will take place prior to initiating construction. This procedure will be followed for all components in the inmmediategroup of investments, as well as those in later phases of the project.

5.9 Pskov In Pskov, one component - the rehabilitation of the water treatment plant (US$5.9 million) - has been designed and bidding documents prepared, corresponding to about 53 % of the total sub-project costs of US$ 11.1 million. The remaining investment components will be selected with the help of technical assistance consultants during the early stages of project implementation. For the purpose of O.P. 4.01 on Environmental Impact Assessment, the project has been classified as Category B, which requires a limited environmental review to determine potential negative environmental impacts and propose mitigation measures where needed. The project is expected to bring environmental, as well as health, benefits because: (i) rehabilitation and improved operation and maintenance of the water treatment plants will assure better drinking water quality, reduction in the use of chemicals and better handling of water treatmentresiduals; (ii) later rehabilitationof parts of the water supplynetwork will reduce water lossesand decreasethe volume of water intake; (iii) rehabilitationand improved operationand maintenanceof the wastewatertreatment plants will reduce the risk of spillage of sewage,and assure improvedquality of wastewaterreleased after treatmentand better handlingof solidand liquidwaste; (iv) pumpingstations rehabilitation will increaseenergy efficiencyof the Vodokanals'operations; (v) improvementin operationswill contributeto a better day-to-dayenvironmental management (treatment plants waste management,handling of chemicalsand toxic substance,improvement in the operationand maintenanceof the seweragenetwork, including improved emergency response; more efficient use of informationfrom the existingwater qualitymonitoring networks; better compliancewith environmentalregulations) ; and (vi) water conservationthrough demandmanagement is expectedto elirninatethe need for the constructionof new capacityfor years to come.

CurrentEnvironmental Conditions. Wastewaterfrom the wastewatertreatment plant in Pskov is dischargedinto the River Velikaya. The recipientsaffected by wastewaterfrom Pskov are:

* The River Velikayaon the last 10 km before it reachesLake Pskov * The River VelikayaDelta at the inlet to Lake Pskov * Lake Pskov (Lake Pihkva in Estonia) * Lake Chudskoye(Lake Peipusin Estonia) * The Baltic Sea

The River Velikayais the largest river in the region. The river, the major sourceto Lake Pskov and Lake Chudskoyehas a drainagearea of 25 000 km2 and a mean flow of 125m 31s.

Table 5.9.1 River water qualityin the River Velikayaupstream and downstreamthe main WWTPin 1996 Parameter UpstreamWWTP DownstreamWWTP (mg/) (mg/,) COD 34 49 BOD5 2.1 2.9 SuspendedSolids 1.5 2.5 Ammonia-N 0.38 0.74 Nitrite-N 0.12 0.14 Nitrate-N 0.20 0.27 Total-N ' 0.78 1.27 Phosphate 0.18 0.31 Total-P 0.26 0.44 'Estimatedthat N,r and Porgis 30% of the total N and P content.

The delta is located 8 km to the northwestof PskovCity, where the riverjoins Lake Pskov. The area is about 3 km2 and has 40 swampyislands that are divided by channels.

The delta comprisesa distinctivenatural environmentwith breeding places for rare and diminishingspecies of fish, bird breedingplaces and manydifferent plants. This unique natural complexof fauna and flora is one of the specialattractions in the PskovRegion. Data obtained by Estonian researchers for the period 1987-89 indicate a high level of contamination of the delta's silt with lead, cadmium, zinc and mercury. During the past years the water in the River Velikaya has been characterized by high level of iron, copper, non organic and organic reductants, organic matter and in some cases phosphor containing compounds and petroleum products.

The changes in the benthos of the delta observed over the past 30 years show its progressing eutrophication, increase of mass of suspended particles and accumulation of bottom silt. However, they do not reflect any dramatic destructive phenomena. The delta as before continues to perform the role of a natural filter, by accumulating more and more organic matter.

The most significant impact on the pollution level is said to originate from uncontrolled discharge of industrial wastewater from industries in Pskov and discharges from the wastewater treatment plant in Pskov. The wastewater from Pskov is discharged into the River Velikaya 10 km upstream of the Lake Pskov-Chudskoye system (Peipsi-Pihkva in Estonian). Through its outflow, the River Narva, the lake is connected to the Gulf of Finland. The River Velikaya and the River Emajogi are the main contributors of phosphorus and nitrogen to Lake Pskov-Chudskoye.

A drastic increase in concentrations of sodium, potassium, sulphate and chloride indicating increased anthropogenic influence since the 1960 are reported. Fluctuations in content of oxygen and carbon dioxide have also increased. A low level of oxygen caused a large number of fish to be killed in summerl988. The oxygen had obviously been consumed by degradation of large amounts of phytoplankton. Pollution load on Lake Pskov-Chudskoye from agriculture has obviously decreased since the 1980s. The lake seems to be in a rather healthy state in spite of the pollution load from agriculture and sewage water from large population centres.

Review of potential environmental impacts. As the components defined for the immediate investment program only involve reconstruction of existing infrastructure (water treatmnentplant), any potentially significant environmental impact will be minimized using appropriate construction methods. The ultimate objective of all components (imnmediateand to be defined) will be to improve environmental and health conditions in the city of Pskov. These components will not raise any resettlement or property rights issues since it focuses on rehabilitation of existing network and facilities. All work will be executed either within the premises of existing facilities or the rights of way of public street networks. The project will not affect any known archeological or historical site.

In order to minimize impacts during implementation of immediate investments, contractors will be responsible, under the clauses of the bidding documents, for keeping work sites pollution-free, returning sites to their original conditions, and minimizing dust, noise and other work-related nuisances. They will also be responsible for notification of the discovery of, or any problem related to, previously unknown historical sites.

All components with potentially significant negative environmental impacts, and particularly those with a construction budget over US$0.5 million, will be reviewed by relevant environmental authorities (either the Department of State Ecological Expertise or their delegate at the municipal level) to ensure compliance with the Russian Law on Environmental Expertise. Review and approval of projects that require this review, particularly those components that require an EIA (OVOS), will take place prior to initiating construction. This procedure will be followed for all components in the immediate group of investments, as well as those in later phases of the Project. 5.10 Sochi

In Sochi, one major component - the rehabilitation and capacity enhancement of Bzugu wastewater treatment plant (US$27.0 million)- has been identified and the preparation of bidding documents will be initiated shortly. This component corresponds to about 78% of the total sub-project costs of US$34.7 million. The remaining investment components will be selected with the help of technical assistance consultants during the early stages of project implementation.

For the purpose of OP 4.01 on Environmental Impact Assessment, the project has been classified as Category B, which requires a limited environmental review to determine potential negative environmental impacts and propose mitigation measures where. The project is expected to bring environmental, as well as health, benefits because: (i) rehabilitation and improved operation and maintenance of the water treatment plants will assure better drinking water quality, reduction in the use of chemicals and better handling of water treatment residuals; (ii) rehabilitation of parts of the water supply network will reduce water losses and decrease the volume of water intake; (iii) rehabilitation and improved operation and maintenance of the wastewater treatment plants will reduce the risk of spillage of sewage, and assure improved quality of wastewater released after treatment and better handling of solid and liquid waste; (iv) pumping stations rehabilitation will increase energy efficiency of the Vodokanals' operations; (v) improvement in operations will contribute to a better day-to-day environmental management (treatment plants waste management, handling of chemicals and toxic substance, improvement in the operation and maintenance of the sewerage network, including improved emergency response; more efficient use of information from the existing water quality monitoring networks; better compliance with environmental regulations) ; and (vi) water conservation through demand management is expected to eliminate the need for the construction of new capacity for years to come.

Current Environmental Conditions.

The City of Sochi is located on the Black Sea shore, 15 lan from the Russian-Georgian border and discharges the processed effluent into the Black Sea.

Two WWTPs (Nagavinsky and Bzugu) process the wastewater flow from the city center. Up to 70% of the wastewater flow from the city center goes to the Nagavinsky WWTP. It is located in the immediate neighborhood of the residential and resort areas, without special protection zones. It is heavily overloaded, its facilities are dilapidated, and it has been operating under an "emergency" regime for many years. This has increased the chances of an overflow accident, which can seriously affect both recreation and industrial facilities (railroad station). The plant has operational problems such as unacceptable odors and poorly treated effluent. These create a serious annoyance for the tourists and the population. The Bzugu WWTP has been operating at 30-40% of its design capacity. Both WWTPs discharge their effluents into the Black Sea, and the outflow from the Nagavinsky WWTP goes through an outfall near the popular beaches. The Black Sea is locked by the Bosphorus Straits from the Marmara Sea and the rest of Mediterranean Sea. Consequently, it does not have strong tides or heavy sea storms, and its capacity for natural self clean up from pollution is very low.

The Navaginsky WWTP does not meet the norms of BOD5, N-NH4, N-NO2, surface active substances, and phosphates. The SVK is being fined for these violations. Table 5.10.1 presents the discharge data for Nagavinsky WWTP Table 5.10.1 - NavaginskyWWTP. Comparisonof Actual DischargeNorms versus Actual Effluent Characteristics(1997) Norms Actual Discharge Discharge # QualityIndex Unit Concentrati (maximum Concentrati (maximum on g/hour) on g/hour) (maximum) (maximum)

1. Floating = no - No - substance 2. Odor No. 2 - No -

3. Color no - No - 4. Temperature °C +5 - +5 -

5. pH pH 6.5,8.5 - 6.5,8.5 -

6. Coli index Unit <1,000 - <1,000 - 7. SS mg/i 25 95,400 20 63,500

8. BOD5 mg/i 7.8 29,753 16.3 51,752

9. N-NH4 mgA/ 2.18 8,345 2.8 8,890

10 N-NO2 mgA 0.019 72.6 0.05 158

11 N-NO3 mg/l 9.5 36,252 7.1 22,542

12 Surfactants mg/l 0.095 362.9 0.19 603

13 Oil containing mg/I 0.047 181.5 0.05 158 products 14 Phosphates (P) mg/I 1.13 4,312.1 1.8 5,715

In general, treated wastewater in the areas of the outlets has essentially no influence upon the sanitary-hygienic and ecological quality of sea water. The only exception is the Kudepsta WWTP, where there is a higher bacteriological pollution index, compared with clean water

Review of potential environmental impacts. As the component defined for the immediate investment program only involve reconstruction and improvement of existing infrastructure (wastewater treatment plant), any potentially significant environmental impact will be minimized using appropriate construction methods. The ultimate objective of all components (immediate and to be defined at a later stage) will be to improve environmental and health conditions in the city of Sochi. These components will not raise any resettlement or property rights issues since they focus on the rehabilitation of existing network and facilities. All work will be executed either within the premises of existing facilities or the rights of way of public street networks. The project will not affect any known archeological or historical site.

In order to minimize impacts during implementation of immediate investments, contractors will be responsible, under the clauses of the bidding documents, for keeping work sites pollution-free, returning sites to their original conditions, and minimizing dust, noise and other work-related nuisances. They will also be responsible for notification of the discovery of, or any problem related to, previously unknown historical sites.

All components with potentially significant negative environmental impacts, and particularly those with a construction budget over US$0.5 million, will be reviewed by relevant environmental authorities (either the Department of'State Ecological Expertise or their delegate at the municipal level) to ensure compliance with the Russian Law on Environmental Expertise. Review and approval of projects that require this review, particularly those components that require an EIA (OVOS), will take place prior to initiating construction. This procedure will be followed for all components in the immediate group of investments, as well as those in later phases of the project.

5.11 Tobolsk In Tobolsk, one component - supply of network repair equipment (US$0.7 million) - has been designed and bidding documents prepared, corresponding to about 9% of the total sub-project costs of US$6.9 million. In addition, the rehabilitation of water treatment plant and distribution system has been proposed and design work initiated. The remaining investment components (about 50 % of investment components) will be selected with the help of technical assistance consultants during the early stages of project implementation.

For the purpose of OP 4.01 on Environmental Impact Assessment, the project has been classified as Category B, which requires a limited environmental review to determine potential negative environmental impacts and propose mitigation measures where needed. The project is expected to bring environmental, as well as health, benefits because: (i) rehabilitation and improved operation and maintenance of the water treatment plants will assure better drinking water quality, reduction in the use of chemicals and better handling of water treatment residuals; (ii) rehabilitation of parts of the water supply network will reduce water losses and decrease the volume of water intake; (iii) rehabilitation and improved operation and maintenance of the wastewater treatment plants will reduce the risk of spillage of sewage, and assure improved quality of wastewater released after treatment and better handling of solid and liquid waste; (iv) pumping stations rehabilitation will increase energy efficiency of the Vodokanals' operations; (v) improvement in operations will contribute to a better day-to-day environmental management (treatment plants waste management, handling of chemicals and toxic substance, improvement in the operation and maintenance of the sewerage network, including improved emergency response; more efficient use of information from the existing water quality monitoring networks; better compliance with environmental regulations) ; and (vi) water conservation through demand management is expected to eliminate the need for the construction of new capacity for years to come.

Current Environmental Conditions.

Tobolsk WWTP is an (ultra) low-loaded conventional activated sludge system. Its effluent is discharged into the Irtish River. The standards for discharges of effluent in the Russian Federation are very strict compared to the EU standards. They are calculated on the basis of on a maximum allowable load of components in the effluent, with the intention to reduce environmental impact to a minimum and to improve surface water quality. Furthermore the effluent has to be disinfected. The following table shows the present effluent quality and the maximum allowable concentrations (Russia) of organic compounds and nutrients. Also the latest standards used in EU countries are given. Table 5.11.1 WWTP Discharges and Discharge Standards Applied (mg/i)

Effluent WWTP Standard (Russia) Standard (Eli) COD 30 <30 < 50-100 BOD 6 < 3,8 <10 p 4 < 0.2 < 1-2 N-NH4 2.6 0.7 <10 N-NO2 < 0.1 0.1 < 1 N-NO3 13 3.7 < 10 N-total 15.7 4.5 < 10

According to the Russian standards the concentrations of BOD, phosphorus and the nitrogen compounds ammonia and nitrate are critical. To lower the nitrogen concentration in the effluent, denitrification measures must be implemented at the wastewater treatment plant. To lower the phosphorus concentration, chemicals for precipitation must be added to the activated sludge system. The measures for both advanced nitrogen and phosphorus removal will be process-integrated measurements. After implementation of these measurements the nitrogen and/or BOD removal may still be critical (N,t. 4.5-10 mg/I). Therefore, in the future, a further extension of the activated sludge volume may be necessary to realise advanced nitrate and BOD removal. Compared to the EU guidelines, especially the Russian standards for COD, BOD, P and ammonia removal are very strict. To meet these standards ultra low-loaded activated sludge systems with post treatment are required.

Review of potential environmental impacts. As the components defined for the immediate investment program only involve reconstruction of existing infrastructure, any potentially significant environmental impact will be minimized using appropriate construction methods. The ultimate objective of all components will be to improve environmental and health conditions in the city of Tobolsk. These components will not raise any resettlement or property rights issues since they focus on the rehabilitation of existing network and facilities. All work will be executed either within the premises of existing facilities or the rights of way of public street networks. The project will not affect any known archeological or historical site.

In order to minimize impacts during implementation of immediate investments, contractors will be responsible, under the clauses of the bidding documents, for keeping work sites pollution-free, returning sites to their original conditions, and minimizing dust, noise and other work-related nuisances. They will also be responsible for notification of the discovery of, or any problem related to, previously unknown historical sites.

All components with potentially significant negative environmental impacts, and particularly those with a construction budget over US$0.5 million, will be reviewed by relevant environmental authorities (either the Department of State Ecological Expertise or their delegate at the municipal level) to ensure compliance with the Russian Law on Environmental Expertise. Review and approval of projects that require this review, particularly those components that require an EIA (OVOS), will take place prior to initiating construction. This procedure will be followed for all components in the immediate group of investments, as well as those in later phases of the project.

5.12 Volkhov

In Volkhov, three components - construction of booster station and water reservoir (US$0.7 million), improvement of pumping efficiency (US$0.2 million) and renovation of the water treatment plant (US$0.4 million)- have been designed and bidding documents prepared, corresponding to about 89% of the total sub-project costs of US$ 1.4 million). The remaining investment components will be selected with the help of technical assistance consultants during the early stages of project implementation.

For the purpose of OP 4.01 on Environmental Impact Assessment, the project has been classified as Category B, which requires a limited environmental review to determine potential negative environmental impacts and propose mitigation measures where needed, as well as to identify opportunities for environmental assessment. The project is expected to bring environmental, as well as health, benefits because: (i) rehabilitation and improved operation and maintenance of the water treatment plants will assure better drinking water quality, reduction in the use of chemicals and better handling of water treatment residuals; (ii) rehabilitation of parts of the water supply network will reduce water losses and decrease the volume of water intake; (iii) rehabilitation and improved operation and maintenance of the wastewater treatment plants will reduce the risk of spillage of sewage, and assure improved quality of wastewater released after treatment and better handling of solid and liquid waste; (iv) pumping stations rehabilitation will increase energy efficiency of the Vodokanals' operations; (v) improvement in operations will contribute to a better day-to-day environmental management (treatment plants waste management, handling of chemicals and toxic substance, improvement in the operation and maintenance of the sewerage network, including improved emergency response; more efficient use of information from the existing water quality monitoring networks; better compliance with environmental regulations) ; and (vi) water conservation through demand management is expected to eliminate the need for the construction of new capacity for years to come.

Current Environmental Conditions. The water quality of the Volkhov River, which is used as the source of water supply for the city, is affected by organic and industrial pollution. Although water produced by the treatment unit is of an acceptable quality, the treatment process used is not suited to certain aspects of the pollution, such as its color. The backwash water used to clean filters is not . recycled and the settled raw sludge is discharged into the sewage system. The wastewater collection system suffers from root intrusion, which exacerbates groundwater infiltration into sewers. Two unequally sized wastewater treatment plants (WWTP) treat the sewage flow from both parts of the city, located on either side of the watercourse. The sludge-drying plant of the WWTP of VGVK is not in operation, due to the fact that some of its equipment is unsuitable. Thickened sludge is diverted to sludge-drying beds, mainly during winter.

Average wastewater quantities reaching the wastewater treatment plant are estimated to be in the range of 20,000-25,000 m3/day, which is roughly equivalent to the quantity of potable water supplied to users from the VGVK and the Railroad treatment plant. The wastewater is treated by two independent lines, line 1 with a capacity of 5,000-7,000 m3/day for wastewater flow from Volkhov 1, and line 2 with a capacity of 15,000 m3/day for wastewater flow from Volkhov 2. This abnormally high volume of wastewater flow should be attributed to the high infiltration rate of surface and groundwater into the wastewater system. The amount of infiltration could be as high as 10,000-15,000 m3/day.

The high rate of infiltration implies that wastewater coming into the treatment plant is not very concentrated. This view is confirmed by analysis of raw wastewater samples carried out by VGVK wastewater treatment plant laboratory. Concentration of suspended solids (SS) is high. The SS concentration which is normally equivalent in raw wastewater flows to 1 to 1.2 times the biological oxygen demand (BOD) concentration reaches 1.8 for Volkhov 1 and 2.8 in Volkhov 2. Chemical oxygen demand (COD) for Volkhov 2 as compared to BOD rates for the same sample is too high. This is supposed to be an indication that untreated industrial effluent is being discharged into the wastewater collection system. The Aluminum Plant could be responsible for this industrial pollution.

The plant is old but the quality of treated effluent indicate that treatment results are acceptable with regard to European standard. It should be noted that no automatic samplers are available at the plant, which makes it difficult to assess the reliability of the treatment process.

Review of potential environmental impacts. The components defined for the immediate investment program involve reconstruction of existing infrastructure (pumping stations and treatment plant) and construction of a booster station and water reservoir. These components will not raise any resettlement or property rights issues since works will be executed either within the premises of existing facilities or the rights of way of public street networks. The project will not affect any known archeological or historical site. Any potentially significant environmental impact due to implementation will be minimized using appropriate construction methods.

In order to minimize impacts during implementation, contractors will be responsible, under the clauses of the bidding documents, for keeping work sites pollution-free, returning sites to their original conditions, and minimizing dust, noise and other work-related nuisances. They will also be responsible for notification of the discovery of, or any problem related to, previously unknown historical sites.

All components with potentially significant negative environmental impacts, and particularly those with a construction budget over US$0.5 million, will be reviewed by relevant environmental authorities (either the Department of State Ecological Expertise or their delegate at the municipal level) to ensure compliance with the Russian Law on Environmental Expertise. Review and approval of projects that require this review, particularly those components that require an EIA (OVOS), will take place prior to initiating construction. This procedure will be followed for all components in the immediate group of investments, as well as those in later phases of the project.

5.13 Vologda In Vologda, two major components - the renovation of pumping stations (US$0.7 million) and installation of water meters (US$0.7 million)- have been designed and bidding documents prepared, corresponding to about 26 % of the total sub-project costs of US$5.6 million. The remaining investment components will be selected with the help of technical assistance consultants during the early stages of project implementation.

For the purpose of OP 4.01 on Environmental Impact Assessment, the project has been classified as Category B, which requires a limited environmental review to determine potential negative environmental impacts and propose mitigation measures where needed. The project is expected to bring environmental, as well as health, benefits because: (i) rehabilitation and improved operation and maintenance of the water treatment plants will assure better drinking water quality, reduction in the use of chemnicalsand better handling of water treatment residuals; (ii) rehabilitation of parts of the water supply network will reduce water losses and decrease the volume of water intake; (iii) rehabilitation and improved operation and maintenance of the wastewater treatment plants will reduce the risk of spillage of sewage, and assure improved quality of wastewater released after treatment and better handling of solid and liquid waste; (iv) pumping stations rehabilitation will increase energy efficiency of the dVodokanals'operations; (v) improvement in operations will dontribute to a better day-to-day environmental management (treatment plants waste management, handling of chemicals and toxic substance, improvement in the operation and maintenance of the sewerage network, including improved emergency response; more efficient use of information from the existing water quality monitoring networks; better compliance with environmental regulations) ; and (vi) water conservation through demand management is expected to eliminate the need for the construction of new capacity for years to come.

Current Environmental Conditions.

The wastewater treatment plant is located on the eastern side of the city near the small watercourse of Dolokva, a confluent of the Vologda River. Treated effluent is discharged into the watercourse, which drains an area of 6 lon2 between the railway line to Moscow and the Vologda River. Raw wastewater effluent pumped by the main pumping stations, industries and large enterprises are mixed at the inlet basin before flowing to the bar screening unit. Treated effluent from secondary clarifiers is discharged to the Dolovka watercourse.

The wastewater treatment plant (WWTP) has a site laboratory. Chemical and bacteriological analyses are carried out regularly, at least once every day for suspended solids, chemical oxygen demand, biochemical oxygen demand, phosphates, nitrites, nitrates, ammonia, pH and temperature. A sample of the average monthly value of these parameters for wastewater treatment plant influent and effluent is shown in the following table: Table 5.13.1 Vologda WWTP - Characteristics of Wastewater Influent and Treated Effluent Item Unit Wastewater influent Treated effluent Air Temperature °C 8.8 Wastewater temperature °C 16 Suspended solids mg/l 168.3 10.5 BOD5 m 1 160 10 COD m/l 240 60 Phosphates mg/l 2.59 2.17 Nitrates mgll 0.09 10.21 Nitrites m/1 0.009 0.39 Ammonia mg/l 29 5.71 pH degre 7.54 7.38

The BOD load for tanks is 0.54 kgBOD/m3/day for the first lane and 0.32 kg BOD/m3/day for the second lane. The process can be considered as low load activated sludge only in the second lane. The first lane could be considered as medium load activated sludge. Moreover, retention time is very low (less than 3 hours during peak flows). The nitrification process is not sufficient because of the diluted effluent, ammonium concentration at the plant inlet should only be about 22 mg/I. About 50% is nitrified during biological process. Aeration is therefore not sufficient.

In summary, the WWTP plant is rather old but the results of the analysis of the treated effluent samples indicate that the quality of the treated water is in conformity with the EU regulations.

On the other hand, there are several points, which require attention: (i) High quantity of heavy metals is in the effluent, due to the industrial discharges. (ii) Diluted influent at the wastewater treatment plant (iii) Critical conditions of the equipment in general. Some of them are out of order, others are constantly being repaired. Most of this equipment is far beyond its useful life.

Pollution discharged through industrial activity is a major problem for the WWTP. First, biological treatment could be inhibited due to the excessive concentration of toxic compounds. Second, heavy metals are concentrated in the sludge, which prevents any use in agriculture.

Review of potential environmental impacts. As the components defined for the immediate investment program only involve reconstruction of existing infrastructure, any potentially significant environmental impact will be minimized using appropriate construction methods. The ultimate objective of all components (immediate and to be identified) will be to improve environmental and health conditions in the city of Vologda. These components will not raise any resettlement or property rights issues since they focus on the rehabilitation of existing network and facilities. All work will be executed either within the premises of existing facilities or the rights of way of public street networks. The project will not affect any known archeological or historical site.

In order to minimize impacts during implementation of immediate investments, contractors will be responsible, under the clauses of the bidding documents, for keeping work sites pollution-free, returning sites to their original conditions, and minimizing dust, noise and other work-related nuisances. They will also be responsible for notification of the discovery of, or any problem related to, previously unknown historical sites. All components with potentially significant negative environmental impacts, and particularly those with a construction budget over US$0.5 million, will be reviewed by relevant environmental authorities (either the Department of State Ecological Expertise or their delegate at the municipal level) to ensure compliance with the Russian Law on Environmental Expertise. Review and approval of projects that require this review, particularly those components that require an EIA (OVOS), will take place prior to initiating construction. This procedure will be followed for all components in the immediate group of investments, as well as those in later phases of the project.

5.14 Votkinsk

In Votkinsk, two components - the renovation of the water treatment plant (US$0.7 million) and improvement of pumping efficiency (US$0.7 million) - have been identified and bidding documents prepared, corresponding to about 76 % of the total sub-project costs of US$2.1 million). The remaining investment components will be selected with the help of technical assistance consultants during the early stages of project implementation.

For the purpose of OP 4.01 on Environmental Impact Assessment, the project has been classified as Category B, which requires a limited environmental review to determine potential negative environmental impacts and propose mitigation measures where needed. The project is expected to bring environmental, as well as health, benefits because: (i) rehabilitation and improved operation and maintenance of the water treatment plants will assure better drinking water quality, reduction in the use of chemicals and better handling of water treatment residuals; (ii) rehabilitation of parts of the water supply network will reduce water losses and decrease the volume of water intake; (iii) rehabilitation and improved operation and maintenance of the wastewater treatment plants will reduce the risk of spillage of sewage, and assure improved quality of wastewater released after treatment and better handling of solid and liquid waste; (iv) pumping stations rehabilitation will increase energy efficiency of the Vodokanals' operations; (v) improvement in operations will contribute to a better day-to-day environmental management (treatment plants waste management, handling of chemicals and toxic substance, improvement in the operation and maintenance of the sewerage network, including improved emergency response; more efficient use of information from the existing water quality monitoring networks; better compliance with environmental regulations) ; and (vi) water conservation through demand management is expected to eliminate the need for the construction of new capacity for years to come.

Current Environmental Conditions.

Wastewater from the wastewater treatment plants (WWTP) in Votkinsk is discharged into the Oka River. Oka is a tributary of the Volga River and rises approximately 50 km south of Votkinsk. The total length of the river is 1480 km and covers a drainage area of 239 900 klr2. According to VVK the average flow in the river is 2 m3/s. The river is mainly surrounded by agricultural land and passes about 60 km south of Moscow on its way to the Volga River.

The Oka River is an eutrophicated river with high amounts of nutritive salts and oxygen consuming material. After the discharge from the wastewater treatment plant these levels are exceeded almost ten times in the case of phosphorus and about 3 times for nitrogen. Table 5.14.1 presents water quality data for the Oka river before and after effluent discharges from the WWTP. According to the measurements, the impact of the wastewater treatment plant discharges on the river is significant. The nitrogen and phosphorus concentrations are four times higher downstream the treatment plant and the BOD5 concentration has doubled. There are no measurements of bacterial discharges and information on heavy metals is limited. Table 5.14.2 presents a summary of the WWTP performance in 1996. The discharge of BOD5 and suspended solids is low, and even though it exceeds the national effluent standard, it does not exceed international standards. Nitrogen and phosphorus removal are good. Most of the heavy metals are reduced by approximately 70% and beyond the effluent limits. However, the reduction of heavy metals in the effluent implies an accumulation in the sludge. Table 5.14.1 River Water Quality in Oka Upstream and Downstream of the Main WWTP in 1996

Parameter Before After WWTP WWTP (mg/l) (mg/) COD 18 32 BOD5 3.5 5.8 Suspended 16.4 18.6 Solids Ammonia-N 0.34 2.6 Nitrite-N 0.019 0.098 Nitrate-N 0.49 0.6 Total-N ' 1.2 4.7 Phosphate 0.04 0.28 Total-P 0.06 0.4 Cadmium 0.93 ,ug/l1 1.6 p.g/l I) Estimated that N.,, and Po,gis 30% of the total N and P content.

Table 5.14.2 Performance of the WWTP in 1996

Parameter National Influent Effluent Reductio Standard Mg/i mg/l n

BOD5 3 158 10 94 Suspended 6.05 185 13 93 Solids I Ammonia - 199 52 N

Nitrate - N 9 - 1.8 _ Nitrite -N _ _ - 0.6 _ Phosphate - P 2 3.6 1.9 48 Chlorides 255.9 163 160.5 2 Sulphates 55.35 129 115 11 Fe 0.336 2.4 0.46 80 Cu 0.011 0.032 0.0043 87 Zn 0.034 0.22 0.033 85 Ni 0.035 0.12 0.01 92 3 Cr+ 0.07 - I - I I Detergents 0.5 0.63 0.23 63 Oil 0.05 1.6 0.39 76

Review of potential environmental impacts. As the components defined for the immediate investment program only involve the reconstruction of existing infrastructure, any potentially significant environmental impact will be minimized using appropriate construction methods. The ultimate objective of all components (immediate or to be defined) will be to improve environmental and health conditions in the city of Oryol. These components will not raise any resettlement or property rights issues since it focuses on rehabilitation of existing network and facilities. All work will be executed either within the premises of existing facilities or the rights of way of public street networks. The project will not affect any known archeological or historical site. In order to minimize impacts during implementation of immediate investments, contractors will be responsible, under the clauses of the bidding documents, for keeping work sites pollution-free, returning sites to their original conditions, and minimizing dust, noise and other work-related nuisances. They will also be responsible for notification of the discovery of, or any problem related to, previously unknown historical sites.

All components with potentially significant negative environmental impacts, and particularly those with a construction budget over US$0.5M, will be reviewed by relevant enviromnental authorities (either the Department of State Ecological Expertise or their delegate at the municipal level) to ensure compliance with the Russian Law on Enviromnental Expertise. Review and approval of projects that require this review, particularly those components that require an ELA (OVOS), will take place prior to initiating construction. This procedure will be followed for all components in the immediate group of investments, as well as those in later phases of the project.