Government of the Republic of Armenia

Home , Aghvani, Aghvorik, Akhpradzor, Akhuryan, Aknalich, Akunk

E2203

Public Disclosure Authorized Government of the Republic of Armenia

MCA-Armenia Team

Proposal for Public Disclosure Authorized Millennium Challenge Account Assistance

Public Disclosure Authorized Environmental Impact Assessment of the Concept Paper

Public Disclosure Authorized

September 2005 Government of the Republic of Armenia Proposal for Millennium Challenge Account Assistance Environmental Impact Assessment

CONTENTS

1. INTRODUCTION...... 3

2. DESCRIPTION OF THE PROPOSAL ...... 4 2.1. Proposed Investment Areas...... 4 2.2. Current Situation of Irrigation Infrastructure and Proposed Investments...4 2.3. Current Situation of Rural Roads and Proposed Investments...... 36

3. ENVIRONMENTAL MANAGEMENT SYSTEM IN ARMENIA...... 50 3.1. Legal Framework...... 50 3.2. International Agreements ...... 53 3.3. Institutional Framework ...... 57

4. ENVIRONMENTAL IMPACTS...... 60 4.1. “No Action” Alternative ...... 61 4.2. Potential Positive Impacts ...... 62 4.3. Potential Negative Impacts ...... 62 4.4. Mitigation Measures ...... 64

5. ENVIRONMENTALLY SOUND CLAUSES FOR CIVIL WORKS CONTRACTS...... 66

6. PUBLIC CONSULTATION AND PARTICIPATION ...... 67

7. MONITORING ...... 69

8. MAIN FINDINGS ...... 72

9. REFERENCES...... 74

ANNEXES ...... 76

ANNEX A: MAP...... 77

ANNEX B: CHECKLISTS AND FORMS FOR ENVIRONMENTAL RECONNAISSANCE...... 78

ANNEX C: TERMS OF REFERENCE FOR EIAs AND ESMPs...... 87

ANNEX D: LIST OF KEY CONSULTATIVE MEETINGS AND FIELD VISITS...... 97

Environmental Due Diligence Report – MCA-Armenia Proposal Page 2 Government of the Republic of Armenia Proposal for Millennium Challenge Account Assistance Environmental Impact Assessment

1. INTRODUCTION

This Proposal, presented by the Government of the Republic of Armenia, seeks financial assistance from the Millennium Challenge Account (MCA) to support a five year program of strategic investments in irrigation and community roads, aimed at increasing agricultural production in poor rural areas of the country. The proposal has been elaborated in close consultation with key stakeholders in civil society, the most important being the communities themselves. The specific poverty reduction focus on public infrastructure in rural areas is consistent with the government’s Poverty Reduction Strategy Paper (PRSP) of August 2003 and addresses directly the various impediments reducing rural poverty identified in the first full PRSP progress report of March 2005. The proposal has been prepared within the framework of the guidance for MCA assistance provided to eligible countries.

Main Program Highlights

Objective: Increase Agricultural Productivity and Output, and Reduce Rural Poverty

MCA Financing: $175 million (to be clarified)

Implementation: 5 years

Key Sectors: Irrigation and Rural Roads

Impact: 5% Decrease in Rural Poverty by 2010

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2. DESCRIPTION OF THE PROPOSAL

2.1. Proposed Investment Areas A productive agricultural sector is important for the national economy, vital for food security as well as for rural poverty alleviation, and provides links to downstream industries such as agricultural processing. More than one million people, or 35% of the population, live in rural areas and their economic livelihood is dependent on agricultural production. In 2003, farm income accounted for more than 50% of total income of rural households. With very few opportunities for off-farm employment, Armenia’s rural population depends for survival on small farms.

There are two important preconditions for productive agriculture in Armenia: • investment in irrigation, which is key to increasing agricultural production, improving labor productivity and eradicating rural poverty; and

• investment in a rural roads network, which is essential for commercializing agricultural production in rural communities. Only 10% of Armenia’s rural road network is in good condition and there has been minimal investment, or maintenance of the network, over the past decade.

Annex A contains a map of the irrigation and road schemes.

2.2. Current Situation of Irrigation Infrastructure and Proposed Investments

Currently the most effective and reliable way to increase labor productivity, accelerate growth and eradicate rural poverty are investments in irrigation networks. During Soviet Union times, the volume of cropland under permanent irrigation was 280 000 hectares, or 57% of all arable land. The Soviet irrigation system was based on the mechanical irrigation principle with extensive use of electricity (around 600 million kilowatts yearly in the late 1980s compared with 222.8 million kilowatts in 2003) and water was provided free of charge.

The lack of recurrent expenditure, and maintenance, on the infrastructure over the last decade, has had a deleterious impact on the condition of the network. The irrigation infrastructure is in a poor state or entirely non-operational in over 52% of previously irrigated land. About 20% of the total network is regarded as being in good condition, whilst 28% is regarded as being in fair condition. In these conditions, the irrigation investment strategy should aim at the improvement of the level of commercial viability of crop production, keeping or upgrading mechanical irrigation system only in the places, where they are economically efficient and replacing them with the gravity and other systems, which will provide water at an economically acceptable cost.

The proposed project components are aimed at an expansion of irrigated land areas and an increase in the efficiency of irrigation systems. This will be achieved through the following schemes presented below.

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IRRIGATION SCHEMES DESCRIPTION

SCHEME No: 01

Scheme Name: Artashat WUA: Azat, Artashat, Vedi, Mkhchian, Ararat, Masis Marz: Ararat Location (center): E 44o32' ; N 40o00' Elevation range: 800-900 m Benefit Area: Actually irrigated: 28,902 ha After Project: 34,502 ha Main Crops: grape, orchard, vegetables, wheat Beneficiaries: Direct: 19,391 Indirect: 59,734 Communities: 73

1. BRIEF DESCRIPTION OF PROBLEM

Artashat irrigation system is designed for more than 36,000 ha in south-east Ararat valley. Around 17,000 ha are under Artashat main canal which intakes by gravity water from River Hrazdan (until May), from Azat Reservoir and from Mkhchian P/S (16 m3/s and 2 steps) after flood season. The rest 19,000 ha are irrigated by pumping stations located on the rivers and drainage collectors or by tube-wells.

The Artashat main canal is under operation since 1930's and water loses in the canal are estimated at 25%. In the scope of Irrigation Rehabilitation Project financed by the World Bank in the mid of 1990's critical hydro-structures (siphons, etc.) and stretches of canal have been rehabilitated, but 21km of the main canal (from total 54km) still needs rehabilitation.

14 large pumping stations supplying water to around 19,000 ha are in operation more than 20- 30years and are in bad technical condition, which causes extra energy use, high annual expenses for maintenance and there is a risk that thousands hectares can stay without water. Less water and distrust of farmers for sufficient irrigation do not allow cultivation of high value crops as grapes, fruits or vegetables and farmers currently grow wheat or alfalfa.

2. BRIEF DESCRIPTION OF WORKS

For fixing the problems the Scheme includes: • (Subcomponent No:1.1) rehabilitation of 21km stretches of the Artashat main canal will allow to reduce water losses by 13.1 Mm3, increase water distribution and have enough water for lands located in the end of the main canal; • (Subcomponent No:1.2) rehabilitation of 14 pumping stations will allow to sufficiently reduce energy use and will insure irrigation on more than 23,000 ha; • (Subcomponent No:1.3) construction of Aigezard gravity scheme will allow to annually save 2.8 Mkwt/h energy and ensure irrigation on more than 1800ha; • (Subcomponent No:1.4) rehabilitation of tertiary system on 4600 ha will allow to reduce water losses by more than 3.5 Mm3

3. DESCRIPTION OF OUTCOME OF THE SCHEME

Expected benefits after construction and rehabilitation are: • annually more than 13.0 MkWt/h will be saved due to rehabilitation of pumping stations and construction of gravity scheme. Eight large pumping plants will be placed out of service and decommissioned. • annually around 16.0 Mm3 will be saved in the irrigation system after rehabilitation of the main canal and tertiary system; • on 8,000 ha around 20,000 farmers (or around 80,000 residents in 73 villages) will have opportunity to cultivate high value crops: grape, orchard, vegetables and double net-income.

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SCHEME No: 02

Scheme Name: Low-Hrazdan WUA: Vagharshapat, Khoi, Musaler, Aknalich Marz: Armavir Location (center): E 44o15' ; N 40o08' Elevation range: 800-900 m Benefit Area: Actually irrigated: 13,178 ha After Project: 16,230 ha Main Crops: grape, orchard, vegetables, wheat Beneficiaries: Direct: 11,124 Indirect: 29,759 Communities: 43

1. BRIEF DESCRIPTION OF PROBLEM

Low-Hrazdan irrigation system is designed for more than 18,000 ha in the mid-western part of Ararat valley. The system receives water from River Hrazdan (until May), from Lake Sevan and from Arevshat and Ranchpar large P/S after flood season. Another 7 P/S are irrigating 1750 ha lands located higher the Low-Hrazdan main canal. Local plots are irrigated also irrigated by deep-wells.

Due to high losses of water in the main canal lands receiving water from end part of the canal do not receive enough water. The pumping stations are in operation more than 20- 30 years and are in bad technical condition. This causes extra energy use, often irrigation interruptions and currently more than 2000 ha are not irrigated.

2. BRIEF DESCRIPTION OF WORKS

For fixing the problems the Scheme includes: • (Subcomponent No:2.1) reconstruction of 24.9 km of Low-Hrazdan main canal will allow to reduce water losses by 10.2 Mm3, increase water distribution, increase water supply to Arevshat P/S and have enough water for lands located in the end part of the main canal; • (Subcomponent No:2.2) rehabilitation of 11 pumping stations which will result in energy savings at around 10 Mkwt/h and improve water distribution on 12000 ha; • (Subcomponent No:2.3) rehabilitation of tertiary irrigation system on 3500 ha will reduce water losses and will result better conditions for water distribution.

3. DESCRIPTION OF EXPECTED OUTCOME OF THE SCHEME

Expected benefits after construction and rehabilitation are: • annually 9.7 MkWt/h will be saved due to efficient operation of pumping stations; • annually more that 12 Mm3 will be saved due to rehabilitation of main canal and tertiary system; • irrigation will be recovered on around 3000 ha; • 11000 farmers (or more than 40000 rural residents) from 43 communities will get opportunity to grow high value crops and double their net income.

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SCHEME No: 03

Scheme Name: Armavir WUA: Armavir, Araks, Merdzapnia, Sevjur-Akhtamar Marz: Armavir Location (center): E 44o00 ; N 40o06 Elevation range: 800-900 m Benefit Area: Actually irrigated: 23,003 ha After Project: 24,531 ha Main Crops: grape, orchard, vegetables, wheat Beneficiaries: Direct: 4,005 Indirect: 32,150 Communities: 50

1. BRIEF DESCRIPTION OF PROBLEM

Armavir irrigation system is designed for more than 25,000 ha in the western part of Ararat valley. Armavir main canal takes water by gravity from river Araks and Akhurian reservoir. 7 pumping stations located on the main canal provide water to 1800 ha higher lands.

The main canal is under operation many decades and water losses in the canal are estimated at 30%. In the scope of Irrigation Development Project intake structure was reconstructed and 8.8km (from total 16km of the main canal) earth canal was lined.

Due to high losses in the main and tertiary canal, also bad technical condition and high consumption of energy by the pumping stations thousands hectares of lands do not receive water and on many thousand hectares of other lands farmers are not able to cultivate high value crops.

2. BRIEF DESCRIPTION OF WORKS

For fixing the problems the Scheme includes: • (Subcomponent No:3.1) lining 32.47 km of Armavir main earth canal which will allow to reduce water losses by 27,3 Mm3, increase water distribution and have enough water for lands located in the end of the main canal; • (Subcomponent No:3.2) rehabilitation of 7 pumping stations will allow to reduce energy use by 2.5 Mkwt/h annually and will insure irrigation on more than 1,700 ha; • (Subcomponent No:3.3) rehabilitation of tertiary system on around 6,000 ha will allow to reduce water losses by more than 4.5 Mm3.

3. DESCRIPTION OF EXPECTED OUTCOME OF THE SCHEME

Expected benefits after construction and rehabilitation are: • annually 2.5 MkWt/h will be saved due to rehabilitation of pumping stations; • annually around 32.0 Mm3 will be saved in the irrigation system after reconstruction and rehabilitation of the main canal and tertiary system; • on 2,500 ha around 10,000 farmers (or around 40,000 residents in 50 villages) will have opportunity to cultivate high value crops: grape, orchard, vegetables and sufficiently increase net-income.

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SCHEME No: 04

Scheme Name: Talin WUA: Shenik, Karakert, Talin, Mush, Armavir Marz: Aragatsotn Location (center): E 43o50' ; N 40o10' Elevation range: 900-1,400 m Benefit Area: Actually irrigated: 13,056 ha After Project: 23,320 ha Main Crops: orchard, vegetables, wheat Beneficiaries: Direct: 12,043 Indirect: 14,612 Communities: 51

1. BRIEF DESCRIPTION OF PROBLEM

Talin irrigation system is designed for irrigating 25,000 ha lands in the mid-west of Armenia. This part of the country was populated relatively not long ago (in 1950s) and the lands were ameliorated since that time.

The main canal currently is operating WSA and is supplying water to 3 WUAs (the fourth - Mush WUA is under small reservoirs located on the slopes of mountain Aragats). Water source for system is Akhurian reservoir (525 Mm3) which is on the border with Turkey and the water is shared by both countries.

Critical sections (3.3 km from total 48 km) and hydro-structures of the main canal were rehabilitated in the scope of Irrigation Rehabilitation Project (WB) in the mid of 90s. The rest part of the canal currently is in poor condition and has huge losses. This causes water distribution problems for lands located in the end of the canal and currently only 13,000 ha (from total 20,000 ha) are irrigated.

More than 9,000 ha of lands in Talin and Shenik WUAs are under large 6 pumping stations which are located on the main canal. Due to bad technical condition of the pumps currently only 3,800 ha are irrigated.

2. BRIEF DESCRIPTION OF WORKS

For fixing the problems the Scheme includes: • (Subcomponent No:4.1) rehabilitation of40,89 km stretches of the Talin main canal will allow to reduce water losses by 50.0 Mm3 and have enough water for efficient irrigation of entire 20,000 ha of lands; • (Subcomponent No:4.2) rehabilitation of 6 pumping stations will allow to reduce energy use and will insure irrigation on 9,500 ha; • (Subcomponent No:4.3) construction of Shenik gravity scheme will allow to annually save 4.46 Mkwt/h energy and ensure irrigation on more than 2,100ha; • (Subcomponent No:4.4) construction of Sasnashen reservoir will allow to irrigate by gravity 200 ha of lands of 2 communities in Mush WUA; • (Subcomponent No:4.5) reconstruction of Irind reservoir will allow to irrigate by gravity 150 ha of lands of community Irind in Mush WUA. • (Subcomponent No:4.6) Rehabilitation of tertiary system on 3,800 ha will allow to reduce water losses by more than 2.8 Mm3.

3. DESCRIPTION OF EXPECTED OUTCOME OF THE SCHEME

Expected benefits after construction and rehabilitation are: • annually more than 6.7 MkWt/h energy will be saved due to rehabilitation of pumping stations and construction of Shenik gravity scheme. Two large pumping plants will be placed out of service and decommissioned. • annually more than 52.0 Mm3 water will be saved in the irrigation system after rehabilitation of the main canal and tertiary system; • on 10,000 ha around 12,000 farmers (or around 50,000 residents in 51 villages) will have opportunity to cultivate high value crops: grape, orchard, vegetables and sufficiently increase net-income.

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SCHEME No: 05

Scheme Name: Arzni-Shamiram WUA: Nairi, Eghvard, Ashtarak, Kasakh, Amberd, Parpi, Shamiram Marz: Aragatsotn, Kotayq Location (center): E 44o20' ; N 40o16' Elevation range: 900-1,400 m Benefit Area: Actually irrigated: 15,765 ha After Project: 20,765 ha Main Crops: orchard, grape, vegetables, wheat Beneficiaries: Direct: 16,214 Indirect: 33,669 Communities: 62

1. BRIEF DESCRIPTION OF PROBLEM

Arzni-Shamiram system irrigates around 25,000 ha lands of 7 WUAs located in sub-mountainous region of Aragats. The source for the main canal is the river Hrazdan and Aparan reservoir.

In early 1980's the 82 km Arzni-Shamiram main canal was capitally rehabilitated. Later in the mid of 1990's emergency rehabilitation works were carried out in the scope of Irrigation Rehabilitation Project (WB) which included critical structures and the intention was to avoid interruption of irrigation on thousands of hectares, but not reduction of water losses.

Currently Arzni-Shamiram main canal is operated by WSA. Due to very high losses in the canal (30%) it is very difficult to manage water distribution especially to the last WUA in the chain - Shamiram WUA, which always has water scarcity problems.

In quite bad technical condition are the pumping stations located on the canal and currently only 1/3 of lands are irrigated.

In general because of technical poor condition 5,000 ha (from total 20,000) of privatized lands are currently cultivated and around 8,000 farmers are not cultivating their lands.

2. BRIEF DESCRIPTION OF WORKS

For fixing the problems the Scheme includes: • (Subcomponent No:5.1) rehabilitation of 34,15 km of Arzni-Shamiram canal will allow to reduce water losses by 26 Mm3 and enough water will be available for efficiently irrigating 20,000 ha of lands; • (Subcomponent No:5.2) rehabilitation of 5 P/S will allow to reduce energy use and will insure irrigation on more than 500 ha of lands; • (Subcomponent No:5.3) construction of Ashtarak gravity scheme will allow to annually save 3.4 Mkwt/h energy and ensure irrigation on around 800 ha. Six large pumping plants will be placed out of service and decommissioned. • (Subcomponent No: 5.4, 5.5, 5.6) construction of Apna, Orgov and Lernarot small reservoirs will allow to irrigate by gravity more than 900 ha of lands and provide water to 11 communities; • (Subcomponent No:5.7) Rehabilitation of tertiary system on 4,200 ha will allow to reduce water losses by 3,2 Mm3.

3. DESCRIPTION OF EXPECTED OUTCOME OF THE SCHEME

Expected benefits after construction and rehabilitation are: • annually 3.6 MkWt/h energy will be saved due to rehabilitation of pumping stations and construction of a gravity scheme; • annually around 30.0 Mm3 water will be saved in the irrigation system after rehabilitation of the main canal and tertiary system; • on 20,000 ha around 35,000 farmers (or around 110,000 residents in 62 villages) will have opportunity to cultivate high value crops: grape, orchard, vegetables and sufficiently increase net-income.

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SCHEME No: 06

Scheme Name: Shirak WUA: Ajapniakvorogum, Shirvorogum, Aigabats Marz: Shirak Location (center): E 43o50' ; N 40o48' Elevation range: 1,500-1,700 m Benefit Area: Actually irrigated: 8,562 ha After Project: 15,521 ha Main Crops: vegetables, potato, alfalfa, wheat Beneficiaries: Direct: 4125 Indirect: 9200 Communities: 53

1. BRIEF DESCRIPTION OF PROBLEM

More than 17,000 ha lands in Shirak valley (the second biggest valley located in the north west of the country) are irrigated by Shirak irrigation system. The main water source is the river Akhurian, Arpi-Lich, Tavshut, Karnut, Vardakar and Mantash reservoir.

The main canal is under operation since 1920's and due to deterioration has high losses (around 20%). In the scope of Irrigation Rehabilitation Project financed by the World Bank in the mid of 1990's critical hydro-structures and stretches of canal have been rehabilitated which intended to avoid breaks in irrigation. High losses in the canal do not allow to irrigate half of command area (8,000 ha).

During the last soviet years construction of Kaps reservoir was started but after collapse of the Soviet Union construction was stopped. Meantime completion of the Kaps reservoir and construction of gravity system could sufficiently increase productivity of agriculture on more than 3,000 ha in the region.

2. BRIEF DESCRIPTION OF WORKS

For fixing the problems the Scheme includes: • (Subcomponent No:6.1) rehabilitation of 40 km stretches of Shirak main canal will allow to reduce water losses by 15 Mm3 and enough water will be distributed end farmers; • (Subcomponent No:6.2) construction of Kaps gravity scheme will allow to annually save 7.10 Mkwt/h energy and ensure irrigation on more than 3,100 ha; • (Subcomponent No:6.3) construction of Tavshut gravity scheme will allow to annually save 7.10 Mkwt/h energy and ensure irrigation on more than 3,100 ha; • (Subcomponent No.6.4) Construction of Kaps Reservoir • (Subcomponent No:6.5) rehabilitation of tertiary system on 2300 ha will allow to reduce water losses by more than 1.8 Mm3;

3. DESCRIPTION OF EXPECTED OUTCOME OF THE SCHEME

Expected benefits after construction and rehabilitation are: • annually more than 7 MkWt/h energy will be saved due to construction of Kaps and Tavshut gravity schemes. Nine large pumping plants will be placed out of service and decommissioned. • annually more than 17 Mm3 water will be saved in the irrigation system after rehabilitation of the main canal and tertiary system; • on 15,500 ha 9,000 farmers (or around 35,000 residents in 53 villages) will have opportunity to cultivate high value crops: potato, vegetables and sufficiently increase net-income.

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SCHEME No: 07

Scheme Name: Gegharkunik WUA: Martuni, Vardenis Marz: Gegharkunik Location (center): E 45o27' ; N 40o06' Elevation range: 1,900-2,100 m Benefit Area: Actually irrigated: 3,589 ha After Project: 5,249 ha Main Crops: potato, vegetables, wheat, barley Beneficiaries: Direct: 5,402 Indirect: 5,747 Communities: 21

1. BRIEF DESCRIPTION OF PROBLEM

Three WUAs are established in Gegharkunik marz and each one has separate irrigation system. The main source of water is the lake Sevan. Continuous dynamic changes of the lake Sevan level creates problems for water capture and the same time the pumps after decades of operation are in bad technical condition. The same time high energy consumption makes irrigation inefficient in this area. Meanwhile Martuni and Vardenis WUAs have alternative water sources which can by gravity supplied to more than 3,000 ha.

Currently more than 2/3 of lands in Gegharkunik marz are not irrigated and farmers here are able to cultivate only wheat with very low benefits. Improvement and availability of irrigation water can sufficiently increase agricultural production and a good chance will appear to reduce poverty level in this region.

2. BRIEF DESCRIPTION OF WORKS

For fixing the problems the Scheme includes: • (Subcomponent No:7.1) construction of Agrija gravity scheme in the service area of Martuni WUA will allow to annually save 4.2 Mkwt/h energy and ensure irrigation on more than 2,200 ha; • (Subcomponent No:7.2) construction of Vardenis gravity scheme will ensure irrigation on 1,000 ha in Vardeins WUA; • (Subcomponent No. 7.3) Construction of Agrija Reservoir. • (Subcomponent No:7.4) rehabilitation of 4 pumping stations will allow to reduce energy use by 660 kwt/h annually and will insure irrigation on more than 2,000 ha; • (Subcomponent No:7.5) Rehabilitation of tertiary system on 980 ha will allow to reduce water losses by 0.7 Mm3 annually.

3. DESCRIPTION OF EXPECTED OUTCOME OF THE SCHEME

Expected benefits after construction and rehabilitation are: • annually more than 4.8 MkWt/h energy will be saved due to rehabilitation of pumping stations and construction 2 gravity schemes. Five large pumping plants will be placed out of service and decommissioned. • on 3,000 ha 5,500 farmers (or 20,000 residents in 30 communities) will have opportunity to cultivate high value crops: potato, irrigated wheat and sufficiently increase net-income.

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SCHEME No: 08

Scheme Name: Vayots-Dzor WUA: Eghegnadzor, Vayk Marz: Vayots-Dzor Location (center): E 45o23' ; N 39o45' Elevation range: 1,000-1,500 m Benefit Area: Actually irrigated: 4206 ha After Project: 4,544 ha Main Crops: orchard, grape, wheat Beneficiaries: Direct: 634 Indirect: 634 Communities: 12

1. BRIEF DESCRIPTION OF PROBLEM

Two WUAs supply water to 7,500 ha of lands in Vayots-Dzor marz. Irrigation system of this region has the highest consumption of energy and in the scope of two projects financed by the World Bank and IFAD majority of lands after couple of years will receive cheap gravity water. Although tertiary system is not appropriate to fully use advantages of gravity irrigation and needs improvement and rehabilitation.

Kndzorut village is located in the mountains and is separated from mentioned gravity schemes. Formerly water was supplied by pumps meantime there is a possibility to receive gravity water after construction of a reservoir and distributing canal.

2. BRIEF DESCRIPTION OF WORKS

For fixing the problems the Scheme includes: • (Subcomponent No:8.1) construction of Khndzorut gravity scheme with reservoir will allow to annually save 1.02 Mkwt/h energy and ensure irrigation on 450 ha; • (Subcomponent No:8.2) construction of Khndzorut Reservoir will allow to ensure irrigation of 450 ha; • (Subcomponent No:8.3) Rehabilitation of tertiary system on 1,500 ha will allow to reduce water losses by more than 1 Mm3.

3. DESCRIPTION OF EXPECTED OUTCOME OF THE SCHEME

Expected benefits after construction and rehabilitation are: • annually more than 1.0 MkWt/h energy will be saved due to construction of Khndzorut gravity scheme. . One large pumping plant will be placed out of service and decommissioned. • on 500 ha 700 farmers (or 3,000 residents) will have opportunity to cultivate high value crops: orchard, vegetables and sufficiently increase net-income.

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SCHEME No: 09

Scheme Name: Aparan WUA: Aparan-Aragats Marz: Aragatsotn Location (center): E 44° 23' ; N 40° 33' Elevation range: 1,800-2,000 m Benefit Area: Actually irrigated: 1406 ha After Project: 2250 ha Main Crops: wheat, barley, vegetables, potato Beneficiaries: Direct: 3,703 Indirect: 4,506 Communities: 18

1. BRIEF DESCRIPTION OF PROBLEM

Service are of Aparan WUA is around 3000 ha. The water source is the river Kasakh and Halavar reservoir.

Irrigation of around 2200 ha lands is performed by 5 pumping stations located on the river Kasakh. The pumps are highly deteriorated and have high energy consumption. In the result only 430 ha are currently irrigated. Around 3200 farmers do not receive water and without irrigation can cultivate only cereals with low production and benefits.

Reservoir (Halavar) which is feeding river Kasakh is in upper elevations and it's pressure is enough to irrigate the lands by gravity and eliminate mentioned 5 pumping stations. Another opportunity for eliminating pumping station is the construction of hydro-pump which will allow to irrigated lands without consuming energy.

2. BRIEF DESCRIPTION OF WORKS

For fixing the problems the Scheme includes: • (Subcomponent No:9.1) construction of a 12 km pipeline from the Halavar reservoir which will eliminate 5 pumping stations, construction of Yerinjatap turbo-pump which will allow to irrigate 1950 ha; • (Subcomponent No:9.2) construction of Vardenut reservoir which will provide water by gravity to 300 ha of lands ; • (Subcomponent No:9.3) rehabilitation of tertiary system on 500 ha of lands.

3. DESCRIPTION OF EXPECTED OUTCOME OF THE SCHEME

Expected benefits after construction and rehabilitation are: • annually more 2.4 MkWt/h will be saved due to elimination of five pumping station; • annually more than 0.5 Mm3 will be saved in the irrigation system after rehabilitation of the tertiary canals; • on 2250 ha around 3200 farmers (or around 13000 residents in 11 villages) will have opportunity to cultivate high value crops: potato, alfalfa, cabbage and double net- income - annually increasing by 200 USD per resident. People living in this area under poverty line (which is currently estimated at 350 USD per annum, per resident) will get enough capability to overpass that level.

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SCHEME No: 10

Scheme Name: Geghardalich WUA: Jrvegh-Dzorakhoiur Marz: Kotayq Location (center): E 44o48' ; N 40o16' Elevation range: 1,200-1,600 m Benefit Area: Actually irrigated: 1,112 ha After Project: 1,322 ha Main Crops: orchard, grape, vegetables, wheat Beneficiaries: Direct: 563 Indirect: 2,869 Communities: 7

1. BRIEF DESCRIPTION OF PROBLEM

Geghardalich reservoir is on 3000m elevation and has capability to supply water by gravity to more than 1000 ha of lands. Meantime currently it is feeding Azat reservoir located below from where water is pumped to irrigate the lands. The pumping station providing water has 4 steps, with high consumption of energy and due to very high cost makes irrigation inefficient. Besides the high cost of water the pumping station is in very poor technical condition and very often accidents cause interruptions for weeks with all negative consequences.

Construction of a gravity scheme could sufficiently improve irrigation and increase agriculture production.

2. BRIEF DESCRIPTION OF WORKS

For fixing the problems the Scheme includes: • (Subcomponent No:10.1) construction of Geghardalich gravity scheme will allow to annually save 5.8 Mkwt/h energy and ensure irrigation on 1,000 ha; • (Subcomponent No:10.2) rehabilitation of 2 pumping stations will allow to reduce energy use and will insure irrigation on 150 ha; • (Subcomponent No:10.3) rehabilitation of tertiary system on 350 ha will allow to reduce water losses by 0.3 Mm3.

3. DESCRIPTION OF EXPECTED OUTCOME OF THE SCHEME

Expected benefits after construction and rehabilitation are: • annually more than 5.8 MkWt/h energy will be saved due to rehabilitation of pumping stations and construction gravity scheme. Four large pumping plants will be placed out of service and decommissioned. • on 1,000 ha 3,000 farmers (or 12,000 residents) will have opportunity to cultivate high value crops: grape, orchard, vegetables and sufficiently increase net-income.

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SCHEME No: 11

Scheme Name: Meghri WUA: Meghri Marz: Syunik Location (center): E 46o16' ; N 38o54' Elevation range: 600-1,000 m Benefit Area: Actually irrigated: 496 ha After Project: 1,200 ha Main Crops: orchard, grapes Beneficiaries: Direct: 2,338 Indirect: 2,292 Communities: 13

1. BRIEF DESCRIPTION OF PROBLEM

Meghri is the farthest region from the capital Yerevan and is located on the border with Iran. Due to low elevations, hot summers and mild winters – fruits (grapes, peach, quince, fig, pomegranate, red-pulp) are of excellent quality and have high demand in the local and out markets.

The main source of irrigation water is the river Araks. 14 high pressure pumping stations are lifting water up to 300-400 m and have high energy consumption. Besides this, due to high concentration of sediments in Araks river the rotors are very soon deteriorating and maintenance is more costly. The result is that currently only 500 ha are irrigated instead of formerly irrigated 1200 ha.

Meghri river flows from the mountains and in high elevations have enough pressure to irrigate all lands of the region. Construction of a gravity scheme could fix all technical issues and farmers would be able to get maximum from fertile lands. For accumulating enough water for summer season there is possibility to construct a reservoir which will fully satisfy the needs.

2. BRIEF DESCRIPTION OF WORKS

For fixing the problems the Scheme includes: • (Subcomponent No:11.1) construction of Meghri gravity scheme with Lichk reservoir will allow to annually save 4.5 Mkwt/h energy and ensure irrigation on more than 1200 ha. Twelve large pumping plants will be placed out of service and decommissioned. • (Subcomponent No:11.2) construction of Lichk Reservoir will allow to ensure irrigation of 1200 ha; • (Subcomponent No:11.3) rehabilitation of tertiary system on 585 ha will allow to operate the gravity scheme and reduce water losses by 0.45 Mm3.

3. DESCRIPTION OF EXPECTED OUTCOME OF THE SCHEME

Expected benefits after construction and rehabilitation are: • annually 4.5 MkWt/h energy will be saved due to construction of Meghri gravity scheme; • on 1,200 ha 2,400 farmers (or 10,000 residents in 13 villages) will have opportunity to cultivate high value crops: grapes, peach, quince, fig, pomegranate, red-pulp and sufficiently increase net-income.

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SCHEME No: 12

Scheme Name: Artik WUA: Aragats-Vorogum Marz: Shirak Location (center): E 43o50' ; N 40o38' Elevation range: 1,500-1,700 m Benefit Area: Actually irrigated: 1,357 ha After Project: 2,812 ha Main Crops: orchard, vegetables, wheat Beneficiaries: Direct: 5,301 Indirect: 6,452 Communities: 18

1. BRIEF DESCRIPTION OF PROBLEM

Aragats-Vorogum WUA is supplying water to lands of Artik region and the main source is the Mantash and Artik reservoirs. Due to high deteriorated pumping stations, collapsed Artik reservoir (1998 break of the Artik dam caused human losses and since that time is out of operation) and high losses in the canal since mid of 1990's more than half of the lands are not irrigated and farmers have minimum benefits from rain-fed wheat.

Reconstruction of Artik reservoir, construction of a gravity scheme and construction of Bagravan reservoir could sufficiently improve irrigation, recover irrigation on 1,500 ha.

2. BRIEF DESCRIPTION OF WORKS

For fixing the problems the Scheme includes: • (Subcomponent No:12.1) construction of Mantash gravity scheme will allow to annually save 0.8 Mkwt/h energy and ensure irrigation on 900 ha; • (Subcomponent No:12.2) reconstruction of Artik reservoir will allow to irrigate by gravity 450 ha of lands of 3 communities; • (Subcomponent No:12.3) construction of Bagravan reservoir will allow to irrigate by gravity 150 ha of lands; • (Subcomponent No:12.4) Rehabilitation of tertiary system on 370 ha will allow to reduce water losses by more than 0.3 Mm3.

3. DESCRIPTION OF EXPECTED OUTCOME OF THE SCHEME

Expected benefits after construction and rehabilitation are: • annually more than 0.8 MkWt/h energy will be saved due to construction of Mantash gravity scheme. Two large pumping plants will be placed out of service and decommissioned. • on 1,500 ha 3,000 farmers (or 12,0. 00 residents in 18 villages) will have opportunity to cultivate high value crops: potato, vegetables and sufficiently increase net-income.

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SCHEME No: 13

Scheme Name: Spandaryan WUA: Spandaryan Marz: Syunik Location (center): E 46o06' ; N 39o27' Elevation range: 1,200-1,600 m Benefit Area: Actually irrigated: 302 ha After Project: 1,400 ha Main Crops: potato, vegetables, wheat Beneficiaries: Direct: 472 Indirect: 600 Communities: 2

1. BRIEF DESCRIPTION OF PROBLEM

Spandaryan WUA supplies water to 2,000 ha lands in the southeast of the country. The water source is on a river which is 40 km far from the lands. Due to high losses in the canal only 300 ha are currently irrigated.

Construction of gravity scheme from Spandaryan power-plant pressure basin could improve irrigation on hundreds of hectares.

2. BRIEF DESCRIPTION OF WORKS

For fixing the problems the Scheme includes: • (Subcomponent No:13.1) construction of Spandaryan gravity scheme will allow to ensure irrigation on more than 1,000 ha; • (Subcomponent No:13.2) rehabilitation of tertiary system on 160 ha will allow to reduce water losses by more than 0.12 Mm3.

3. DESCRIPTION OF EXPECTED OUTCOME OF THE SCHEME

Expected benefits after construction and rehabilitation are: • on 1,000 ha 250 farmers (or 1,000 residents) will have opportunity to cultivate high value crops: orchard, irrigated wheat and increase net-income. • The Spandaryan gravity scheme will have three large pumping plants will be placed out of service and decommissioned.

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SCHEME No: 14

Scheme Name: Kapan WUA: Kapan Marz: Syunik Location (center): E 46o22' ; N 39o13' Elevation range: 800-1,200 m Benefit Area: Actually irrigated: 76 ha After Project: 338 ha Main Crops: orchard, grape, vegetables, wheat Beneficiaries: Direct: 768 Indirect: 991 Communities: 5

1. BRIEF DESCRIPTION OF PROBLEM

Kapan WUA is irrigating discretely located small plots with total 900 ha lands. Surrounding forests keep the climate mild and specific conditions allow to grow high value crops.

Tsav, Shikahogh and Norashenik villages are located in the mountains and currently are irrigated by pumps. High cost of energy, deteriorated pumping stations and far distance from repair workshops make pumping irrigation not effective and currently only 80 ha are irrigated instead of maximum 340 ha.

These 3 villages have alternative gravity way for irrigation which will ensure irrigation and sufficient increase in benefits.

2. BRIEF DESCRIPTION OF WORKS

For fixing the problems the Scheme includes: • (Subcomponent No:14.1 and 14.2) construction of Tsav-Shikahogh and Norashenik gravity schemes will allow to annually save 2.40 Mkwt/h energy and ensure irrigation on more than 260 ha. Two large pumping plants will be placed out of service and decommissioned. • (Subcomponent No:14.3) rehabilitation of tertiary system on 120 ha will allow to reduce water losses by 0.09 Mm3.

3. DESCRIPTION OF EXPECTED OUTCOME OF THE SCHEME

Expected benefits after construction and rehabilitation are: • annually more than 2.4 MkWt/h energy will be saved due to rehabilitation of pumping stations and construction Tsav-Shikahogh and Norashenik gravity schemes; • on 260 ha 1,000 farmers (or around 4,000 residents in 3 villages) will have opportunity to cultivate high value crops: grape, orchard, vegetables and sufficiently increase net- income.

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SCHEME No: 15

Scheme Name: Goris WUA: Karahunji-Jrambar Marz: Syunik WSA Branch: Vorotan-Arpa Location (center): E 46o19' ; N 39o30' Elevation range: 1,400-1,600 m Benefit Area: Actually irrigated: 897 ha After Project: 1,538 ha Main Crops: orchard, vegetables, wheat Beneficiaries: Direct: 1,349 Indirect: 3,237 Communities: 7

1. BRIEF DESCRIPTION OF PROBLEM

Karahunji-Jrambar WUA is serving 1,800 ha lands in the southeast of the country. The main water source are the pumps located on the is the river Vorotan. High pressure and inefficient work of pumps makes difficulties and currently only 900 ha irrigated instead of 1,600 ha.

2. BRIEF DESCRIPTION OF WORKS

For fixing the problems the Scheme includes: • (Subcomponent No:15.1) rehabilitation of 4 pumping stations will allow to reduce energy use and will insure irrigation on 1,500 ha; • (Subcomponent No:15.2) rehabilitation of tertiary system on 240 ha will allow to reduce water losses by more than 0.18 Mm3.

3. DESCRIPTION OF EXPECTED OUTCOME OF THE SCHEME

Expected benefits after construction and rehabilitation are: • annually more than 0.02 MkWt/h energy will be saved due to rehabilitation of 4 pumping stations; • on 700 ha 1,500 farmers (or 6,000 residents in 7 villages) will have opportunity to cultivate high value crops: orchard, vegetables and sufficiently increase net-income.

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SCHEME No: 16

Scheme Name: Lori WUA: Lori-Jrantsk Marz: Lori Location (center): E 44o35' ; N 41o02' Elevation range: 1,000-1,400 m Benefit Area: Actually irrigated: 724 ha After Project: 1,548 ha Main Crops: orchard, vegetables, potato, wheat Beneficiaries: Direct: 1,326 Indirect: 2,145 Communities: 6

1. BRIEF DESCRIPTION OF PROBLEM

Lori WUA has been established on 5,800 ha of lands in the north of the country. Surrounding forests and temperate elevations create good conditions for enhanced agriculture. Meantime due to deteriorated infrastructure farmers are not able to irrigate their lands and currently only 1/3 of lands are irrigated.

The reason of the insufficient irrigation is the deteriorated condition of canals and non- operation of pumping stations. Meantime more than 1,500 ha can receive gravity water after construction of a gravity canal from higher elevations of river.

2. BRIEF DESCRIPTION OF WORKS

For fixing the problems the Scheme includes: • (Subcomponent No:16.1) construction of Amrakits gravity scheme will allow to annually save 3.0 Mkwt/h energy and ensure irrigation on more than 1,500 ha; • (Subcomponent No:16.2) rehabilitation of tertiary system on 400 ha will allow to reduce water losses by more than 0.3 Mm3.

3. DESCRIPTION OF EXPECTED OUTCOME OF THE SCHEME

Expected benefits after construction and rehabilitation are: • annually more than 3.0 MkWt/h energy will be saved due to rehabilitation of pumping stations and construction Amrakits gravity scheme. One large pumping plant will be placed out of service and decommissioned. • on 1,500 ha 1,500 farmers (or 6,000 residents in 6 villages) will have opportunity to cultivate high value crops: orchard, vegetables and sufficiently increase net-income.

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SCHEME No: 17

Scheme Name: Getik WUA: Getik Marz: Lori Location (center): E 44o15' ; N 40o49' Elevation range: 1,500-1,700 m Benefit Area: Actually irrigated: 530 ha After Project: 2,210 ha Main Crops: vegetables, potato, wheat Beneficiaries: Direct: 1640 Indirect: 2500 Communities: 9

1. BRIEF DESCRIPTION OF PROBLEM

Getik WUA supplies water to 3,300 ha of lands in the zone of 1988 earthquake. The main canal was constructed in 1940s which takes water from river Chichkhan. The water intake structure and the first 5km of the main canal are passing by critically steep slopes and any moment some stretches of the earth canal can be demolished which will be very hard (at least very expensive) to repair and construction can last few months.

In the mid of 1990s in the scope Irrigation Rehabilitation project 10 km of the canal (less than the half of the total canal) was lined and today is in pretty good condition. Although the end part of the canal still needs rehabilitation as due to high filtration the water does not reach to the end lands.

Besides the higher lands of the WUA are served by pumps which are in poor condition and have high consumption of energy. Meantime there is a possibility to use the water pressure and construct a gravity scheme for irrigating 1,500 ha.

2. BRIEF DESCRIPTION OF WORKS

For fixing the problems the Scheme includes: • (Subcomponent No:17.1) construction of Spitak gravity scheme will ensure irrigation on more than 1,500 ha; • (Subcomponent No:17.2) rehabilitation of tertiary system on 370 ha will reduce water losses and improve water distribution.

3. DESCRIPTION OF EXPECTED OUTCOME OF THE SCHEME

Expected benefits after construction and rehabilitation are: • annually more than 0.9 MkWt/h energy will be saved due to rehabilitation of pumping stations and construction Spitak gravity scheme. Two large pumping plants will be placed out of service and decommissioned. • on 1500 ha 2,200 farmers (or 10,000 residents in 9 villages) will have opportunity to cultivate high value crops: orchard, potato, vegetables and sufficiently increase net- income.

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SCHEME No: 18

Scheme Name: Noyemberyan WUA: Noyemberyan WUAs Marz: Tavush Location (center): E 44o53' ; N 41o12' Elevation range: 600-900 m Benefit Area: Actually irrigated: 1,163 ha After Project: 3,227 ha Main Crops: orchard, grape, vegetables, wheat Beneficiaries: Direct: 1,277 Indirect: 1,996 Communities: 8

1. BRIEF DESCRIPTION OF PROBLEM

Noyemberian WUA serves 7,500 ha of lands in the northeast of the country. Due to low elevations and mild climate this is one of the most productive agricultural zones in the country. The water source is the river Debet which even in peak season in summer has more than enough water to irrigate the lands. Although the issue is that water is pumped by 5 step pumping station and alternative solution for bringing water by gravity is very expensive and technically difficult.

The only solution for here is the renovation of the pumping stations and introduction of drip irrigation which will ultimately make irrigation economically viable.

2. BRIEF DESCRIPTION OF WORKS

For fixing the problems the Scheme includes: • (Subcomponent No:18.1) rehabilitation of 6 pumping stations will allow to reduce energy use and will insure irrigation on more than 2,000 ha; • (Subcomponent No:18.2) rehabilitation of tertiary system on 314 ha will allow to reduce losses of expensive water and improve water distribution.

3. DESCRIPTION OF EXPECTED OUTCOME OF THE SCHEME

Expected benefits after construction and rehabilitation are: • annually 0.2 MkWt/h energy will be saved due to rehabilitation of pumping stations; • on 2,000 ha 2,000 farmers (or 8,000 residents in 8 villages) will have opportunity to cultivate high value crops: grape, orchard, vegetables and sufficiently increase net- income.

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SCHEME No: 19

Scheme Name: Berd WUA: Berd Marz: Tavush Location (center): E 45o20' ; N 40o56' Elevation range: 800-1,000 m Benefit Area: Actually irrigated: 230 ha After Project: 300 ha Main Crops: orchard, grape, vegetables, wheat Beneficiaries: Direct: 104 Indirect: 202 Communities: 3

1. BRIEF DESCRIPTION OF PROBLEM

Berd WUA is located in small valley with surrounded forests and because of mild climate has productive lands. The region has enough water which is accumulated in the Tavush reservoir.

3 communities in this area receive water by pumps which are deteriorated and only half of the lands were irrigated during the last decade. Meantime the pressure in the reservoir is enough to have gravity water which could ensure cheap and proper irrigation.

2. BRIEF DESCRIPTION OF WORKS

For fixing the problems the Scheme includes: • (Subcomponent No:19.1) construction of Berd gravity scheme will allow to annually save 0.5 Mkwt/h energy and ensure irrigation on 150 ha; • (Subcomponent No:19.2) rehabilitation of tertiary system on 130 ha will allow to reduce water losses and improve water distribution.

3. DESCRIPTION OF EXPECTED OUTCOME OF THE SCHEME

Expected benefits after construction and rehabilitation are: • annually more than 0.5 MkWt/h energy will be saved due to construction of Berd gravity scheme. One large pumping plant will be placed out of service and decommissioned. • on 150 ha 300 farmers (or 1,200 residents in 3 villages) will have opportunity to cultivate high value crops: grape, orchard, vegetables and sufficiently increase net- income.

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SCHEME No: 20

Scheme Name: Ijevan WUA: Ijevan Marz: Tavush Location (center): E 45o09' ; N 40o53' Elevation range: 700-1,000 m Benefit Area: Actually irrigated: 355 ha After Project: 1,119 ha Main Crops: orchard, grape, vegetables, wheat Beneficiaries: Direct: 847 Indirect: 1,240 Communities: 6

1. BRIEF DESCRIPTION OF PROBLEM

Ijevan WUA supplies water to more than 5,000 ha of lands in the northeast of the country. Due to high deterioration of the pumping stations which are under operation 30-40 years less than 1/10 of the lands are currently irrigated and farmers are not able to get profits from agriculture. Meantime hydrology allows to supply enough water by gravity for 150 ha of 3 communities.

Lands under other 5 pumping stations have not alternative for gravity irrigation and need rehabilitation.

2. BRIEF DESCRIPTION OF WORKS

For fixing the problems the Scheme includes: • (Subcomponent No:20.1) construction of Getahovit-Lusadzor gravity scheme will allow to annually save 0.5 Mkwt/h energy and ensure irrigation on 150 ha; • (Subcomponent No:20.2) rehabilitation of 5 pumping stations will allow to reduce energy use and will insure irrigation on 900 ha; • (Subcomponent No:20.3) rehabilitation of tertiary system on 170 ha will allow to reduce water losses and improve water distribution.

3. DESCRIPTION OF EXPECTED OUTCOME OF THE SCHEME

Expected benefits after construction and rehabilitation are: • annually more than 0.6 MkWt/h energy will be saved due to rehabilitation of pumping stations and construction Ijevan gravity scheme. Two large pumping plants will be placed out of service and decommissioned. • on 800 ha 1,000 farmers (or 4,000 residents in 6 villages) will have opportunity to cultivate high value crops: grape, orchard, vegetables and sufficiently increase net- income.

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SCHEME No: 21

Scheme Name: Kotayq WUA: Kotayq WUAs Marz: Kotayq Location (center): E 44o40' ; N 40o20' Elevation range: 1,200-1,500 m Benefit Area: Actually irrigated: 3,100 ha After Project: 3,650 ha Main Crops: orchard, vegetables, wheat Beneficiaries: Direct: 639 Indirect: 639 Communities: 8

1. BRIEF DESCRIPTION OF PROBLEM

Kotayq irrigation system is designed for irrigation of 5,500 ha lands in the middle part of Armenia. The main water source is the river Hrazdan and the main canal takes water by gravity. The main critical stretches and hydro-structures of the main canal have been rehabilitated in the scope of Irrigation Rehabilitation Project.

Part of the lands in the system is irrigated by pumps. Due to bad technical condition of the pumps which are in use much longer than the lifetime of the pumps – hundreds of hectares have irrigation problems and farmers are not able to cultivate high value crops and currently grow wheat or alfalfa.

2. BRIEF DESCRIPTION OF WORKS

For fixing the problems the Scheme includes: • (Subcomponent No:21.1) construction of Ptghni gravity scheme will allow to irrigate by gravity 235 ha and annually save 2.3 Mkwt/h energy; • (Subcomponent No:21.2) rehabilitation of 4 pumping stations will allow to sufficiently reduce energy use and will insure irrigation on 150 ha; • (Subcomponent No:21.3) rehabilitation of tertiary system on 450 ha will allow to reduce water losses by 0.4 Mm3.

3. DESCRIPTION OF EXPECTED OUTCOME OF THE SCHEME

Expected benefits after construction and rehabilitation are: • annually more than 2.3 MkWt/h will be saved due to rehabilitation of pumping stations and construction of gravity scheme; • annually around 0.4 Mm3 will be saved in the irrigation system after rehabilitation tertiary system; • on 285 ha 640 farmers (or around 2,500 residents in 8 villages) will have opportunity to cultivate high value crops: orchard, vegetables and sufficiently increase net-income.

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SCHEME No: 22

REHABILITATION OF TERTIARY SYSTEM IN 8 WUAS

Scheme 22 includes rehabilitation of tertiary system for those WUAs that are not covered by abovementioned 21 Schemes. These are Gavar, Khndzorut, Hakhum, Vorotan, Tolors, Dzorer, Brnakot and Hrazdan-Jour WUAs.

SCHEME No: 23

REHABILITATION OF DRAINAGE IN ARARAT VALLEY

1. BRIEF DESCRIPTION OF PROBLEM

The project is aimed at improvement of lands’ productivity, sustainability of agricultural production, and mitigation of harmful impact of ground water high level on the environment and health of the population. Ararat Valley is one of economically developed areas with favorable climatic conditions, providing 40-45% of agricultural production of Armenia.

In 1950-s construction of open drainage system began as means of malaria control. The system provided subsidence of ground water level to 1.0 m. but the given measure was not sufficient to provide good cultivation of agricultural products due to salinity of ground water. In 1960-s side by side with desalination of lands, closed drainage 2-3 m deep was constructed, which allowed to hold up the process of lands’ salinization. Drainage area covers 22453 ha.

Open Drainage Network 13 collectors, catch-waters of which are Araks, Hrazdan, and Metsamor Rivers, are functioning on the area of Ararat Valley. Collector-drainage system of Ararat Valley can be divided into three regions, according to engineering-geological, hydro-geological condition and water receiving bodies. • Region 1 – south-eastern part of Ararat Valley, where 4 collector systems are available: Arazdayan the Main, Hrazdan-Araks (I and II sections), and Leftbank Hrazdan, the water receiving body of which is Araks River.

• Region 2 – central part of Ararat Valley, where there are 5 collector systems: Rightbank Hrazdan (I and II sections), collector-1, collector-5, and collector BC-5, water receiving body of which is Hrazdan River.

• Region 3 – north-western part of Ararat Valley, where there are 4 collector systems; Kuru-Araks, Kobu-Artashar, Kobu-Apaga, and Argavand, water receiving body of which is Metsamor river.

The collector-drainage scheme in a whole is in unsatisfactory technical state. Collectors, water catchment areas, and drains are overgrown with reeds, silted, operate in backwater regime, channels are deformed, and at some stretches the channels are dammed up by different partitions (fishponds, delivery of water for irrigation etc.). The length of Ararat

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Valley collector-drainage system is 1393.1 km, including open network - 723,1 km (collectors - 140.7km, water catchment areas - 263.0 km, drains - 319.4 km), closed network - 670,0 km (water catchment areas - 126,3 km, drains - 543,7 km).

Closed Drainage Network Closed drainage network is situated on separate, independently operating 17 sections. Total area of lands under closed drainage network is 7967 ha, out of which discharge of drainage water by pumping covers 2776 ha, and by gravity - 5191 ha, the area of irrigated lands under closed drainage network is 7101 ha. On the area of 4240 ha lands are not salinized, 1394 ha - slightly salinized, 985 ha - media-slightly salinized, and 482 ha - media-highly salterned. The area of ground water 1-2 m deep - is 3104 ha, 2-3 m - 1679 ha, and more than 3 m - 200 ha.

2. BRIEF DESCRIPTION OF WORKS

For fixing the problems the Scheme includes:

Open Drainage Network • deepen the primary collectors along the whole length by 1,0 – 2,0 m; • deepen the secondary collectors in accordance with primary ones; • rehabilitation of open drains • elimination of backwater structures; • elimination of all drainage pumping stations; • rehabilitation of irrigation pumping stations at the collectors;

Closed Drainage Network • perform mechanical cleaning of the whole system with the help of drain cleaners; • rehabilitate destroyed parts of drains and water catchments with total length of 70.9 km; • reconstruct and rehabilitate 1190 observation holes; • removal of drainage water by gravity is planned on the area of 2616 ha.

Vertical Drainage • reconstruct and rehabilitate of 61 tubewells will allow to reduce ground water level on 3000-3500 ha;

Artesian Wells In order to improve the operation of collector-drainage network and use underground water of Ararat Valley artesian basin rationally, it is provided to do the following: out of 196 wells: • eliminate 76 wells with small discharge (yield) and annular self-flowing out; • clean the 79 artesian wells; • perform grouting of annular space of 32 wells; • construct intake basins and outlet irrigators for 33 wells.

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3. DESCRIPTION OF EXPECTED OUTCOME OF THE SCHEME

Expected benefits after construction and rehabilitation are: • increase the system discharge capacity and improve meliorative state of about 30.000 ha, lowering ground water level from 0.5-0.7m to 1.2- 1.5 m; • sustainability of drainage network operation; • reduction of over-humid lands by a further 8,6 Thos. ha; • possibility created for the future to have drainage system for the whole over-humid zone of Ararat Valley; • annually 8.8 M kWt/h energy will be saved due to elimination of drainage pumping stations; • reconstruction and rehabilitation of 61 tubewells will allow to get irrigation water with total yield of 2,0-2,5 m3/sec and irrigate 315 ha; • on 8,600 ha around 10,000 farmers will have opportunity to cultivate high value crops: grape, orchard, vegetables and sufficiently increase net-income; • improved sanitary and social conditions of the areas.

The Table 1 summarizing irrigation components, affected WUAs, beneficiaries, communities and irrigated lands is presented below.

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Table 1. Summary Data on Irrigation Schemes

Irrigated lands Beneficiaries Communities Sch [ha] Schemes WUAs No: Total Indirect Direct Under Total After Total farmers ben. ben. project area Project

Azat, Artashat, Ararat, Vedi, 1 Artashat 63,219 59,734 19,391 92 88 36,515 34,502 Masis, Mkhchian

Rehabilitation of Artashat main 1.1 Azat, Artashat, Vedi 29,071 12,057 - 42 - 16,791 canal 1.2 Rehabilitation of 14 P/S Azat, Artashat, Ararat, Vedi, Mkhchian 40,849 7,528 - 69 - 23,594 Construction of Aigezard 1.3 Vedi, Artashat 3,220 - - 4 - 1,860 gravity scheme Azat, Artashat, Ararat, Vedi, 1.4 Rehabilitation of ter/system - - - 73 - 4,611 Masis, Mkhchian

Vagharshapat, Khoi, Musaler, 2 Low-Hrazdan 33,759 29,578 1,124 43 38 18,524 16,230 Aknalich

Reconstruction of Low-Hrazdan 2.1 Vagharshapat, Khoi 18,186 7,614 - 25 - 9,979 main canal 2.2 Rehabilitation of 11 P/S Vagharshapat, Khoi, Musaler, Aknalich 21,942 4,301 - 35 - 12,040

2.3 Rehabilitation of ter/system Vagharshapat, Khoi, Musaler, Aknalich - - - 38 - 3,594

Araks, Armavir, Merdzapnia, 3 Armavir 32,832 32,150 4,005 50 50 25,051 24,531 Sevjur-Akhtamar

Reconstruction of Armavir 3.1 Araks, Armavir 32,150 4,005 - 50 - 24,531 main canal 3.2 Rehabilitation of 7 P/S Araks, Armavir 2,295 2,026 - 5 - 1,751

3.3 Rehabilitation of ter/system Araks, Armavir, Merdzapnia, Sevjur-Akhtamar - - - 26 - 5,977

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Irrigated lands Beneficiaries Communities Sch [ha] Schemes WUAs No: Total Indirect Direct Under Total After Total farmers ben. ben. project area Project

4 Talin Shenik, Karakert, Talin, Mush 16,483 14,612 12,043 51 51 25,052 23,320

Reconstruction of Talin main 4.1 Talin 13,495 9,809 - 47 - 20,510 Canal 4.2 Rehabilitation of 6 P/S Talin, Shenik 6,329 6,329 - 17 - 9,620 Construction of Shenik 4.3 Shenik 1,415 1,415 - 5 - 2,150 gravity scheme Construction of Sasnashen 4.4 Mush 132 118 - 2 - 200 reservoir Reconstruction of Irind 4.5 Mush 99 99 - 1 - 150 reservoir 4.6 Rehabilitation of ter/system Shenik, Karakert, Talin, Mush - - - 25 - 3,862 Nairi, Eghvard, Ashtarak, 5 Arzni-Shamiram Kasakh, Amberd, Parpi, 40,250 33,669 16,214 62 62 24,824 20,765 Shamiram Rahabilitation of Arzni-Shamiram Nairi, Eghvard, Ashtarak, 5.1 32,822 14,911 - 53 - 20,243 main canal Kasakh, Parpi, Shamiram Construction of Ashtarak 5.2 Ashtarak 1,200 - - - - 740 gravity scheme 5.3 Rehabilitation of 5 P/S Eghvard, Shamiram 859 - - - - 530 Construction of Apna 5.4 Ashtarak, Kasakh 811 - - - - 500 reservoir 5.5 Construction of Orgov reservoir Amberd 422 - - - - 260

5.6 Construction of Lernarot reservoir 259 259 - 1 - 160 Nairi, Eghvard, Ashtarak, 5.7 Rehabilitation of ter/system - - - 26 - 4,266 Kasakh, Amberd, Parpi, Shamiram

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Irrigated lands Beneficiaries Communities Sch [ha] Schemes WUAs No: Total Indirect Direct Under Total After Total farmers ben. ben. project area Project Ajapniakvorogum, Shirvorogum, 6 Shirak 9,200 4,125 53 53 17,065 15,521 Aigabats 10,115 Rehabilitation of Shirak main Ajapniakvorogum, 6.1 8,929 3,854 - 40 - 15,064 Canal Shirvorogum, Aigabats Construction of Kaps gravity 6.2 Ajapniakvorogum 1,842 - - - - 3,108 scheme Construction of Tavshut gravity 6.3 Ajapniakvorogum 1,842 - - - - 3,108 scheme 6.4 Construction of Kaps Reservoir Ajapniakvorogum 1,842 - - - - 3,108 Ajapniakvorogum, 6.5 Rehabilitation of ter/system - - - 40 - 2,334 Shirvorogum, Aigabats

7 Gegharkunik Martuni, Vardenis 5,747 5,402 30 21 10,995 5,249 19,542 Construction of Agrija gravity 7.1 Martuni 3,921 3,576 - 9 - 2,206 scheme Construction of Vardenis 7.2 Vardenis 1,777 1,777 - 4 - 1,000 gravity scheme 7.3 Rehabilitation of 4 P/S Martuni 3,631 3,631 - 6 - 2,043

7.4 Rehabilitation of ter/system Martuni, Vardenis - - - 10 - 979

8 Vayots-Dzor Eghegnadzor, Vayk 1,245 634 27 12 7,416 4,544 10,455 Construction of Khndzorut 8.1 Vayk 1,245 634 - 1 - 450 gravity scheme Construction of Khndzorut 8.2 Vayk 1,245 634 - 1 - 450 Reservoir 8.3 Rehabilitation of ter/system Eghegnadzor, Vayk - - - 15 - 1,419

Environmental Due Diligence Report – MCA-Armenia Proposal Page 31 Government of the Republic of Armenia Proposal for Millennium Challenge Account Assistance Environmental Impact Assessment

Irrigated lands Beneficiaries Communities Sch [ha] Schemes WUAs No: Total Indirect Direct Under Total After Total farmers ben. ben. project area Project

9 Aparan Aparan 4,506 3,703 21 18 2,945 2,250 6,461 Construction of Halavar 9.1 Aparan 4,278 3,637 - 11 - 1,950 gravity scheme Construction of Vardenut 9.2 Aparan 658 658 - 5 - 300 reservoir 9.3 Rehabilitation of ter/system Aparan - - - 14 - 383

10 Geghardalich Jrvegh-Dzoraghpiur 4,440 2,869 563 7 7 1,656 1,322

Construction of Geghardalich 10.1 Jrvegh-Dzoraghpiur 2,467 375 - 7 - 920 gravity scheme 10.2 Rehabilitatation of 2 P/S Jrvegh-Dzoraghpiur 402 188 - 2 - 150

10.3 Rehabilitation of ter/system Jrvegh-Dzoraghpiur - - - 7 - 342

11 Meghri Meghri 2,338 2,338 2,292 13 13 1,224 1,200

Construction of Meghri gravity 11.1 Meghri 2,338 2,292 - 13 - 1,200 scheme 11.2 Construction of Lichk Reservoir

11.3 Rehabilitation of ter/system Meghri - - - 13 - 585

12 Artik Aragats-Vorogum 7,806 6,452 5,301 18 18 3,402 2,812

Construction of Mantash 12.1 Aragats-Vorogum 5,076 3,924 - 14 - 2,212 gravity scheme Reconstruction of Artik 12.2 Aragats-Vorogum 1,033 1,033 - 3 - 450 reservoir Environmental Due Diligence Report – MCA-Armenia Proposal Page 32 Government of the Republic of Armenia Proposal for Millennium Challenge Account Assistance Environmental Impact Assessment

Irrigated lands Beneficiaries Communities Sch [ha] Schemes WUAs No: Total Indirect Direct Under Total After Total farmers ben. ben. project area Project Construction of Bagravan 12.3 Aragats-Vorogum 344 344 - 1 - 150 reservoir 12.4 Rehabilitation of ter/system Aragats-Vorogum - - - 10 - 370

13 Spandaryan Spandaryan 875 600 471 2 2 2,041 1,400 Construction of Spandaryan 13.1 Spandaryan - gravity scheme 600 471 2.00 2 1,400

13.2 Rehabilitation of ter/system Spandaryan - - - - 2 158

14 Kapan Kapan 2,658 991 768 10 5 907 388

Construction of Tsav- 14.1 Kapan 991 768 - 3 - 338 Shikahogh gravity scheme Construction of Tsav- 14.2 Kapan 991 768 - 3 - 338 Norashenik gravity scheme 14.3 Rehabilitation of ter/system Kapan - - - 5 - 118

15 Goris Qarahunji-Jrambar 3,860 3,237 1,349 7 7 1,834 1,538

15.1 Rehabilitation of 4 P/S Qarahunj-Jrambar 3,237 1,349 - 7 - 1,538

15.2 Rehabilitation of ter/system Qarahunj-Jrambar - - - 7 - 237

16 Lori Lori-Jrantsk 4,129 1,121 596 19 6 5,704 1,548

Construction of Amrakits 16.1 Lori-Jrantsk 1,121 596 - 5 - 1,548 gravity scheme

Environmental Due Diligence Report – MCA-Armenia Proposal Page 33 Government of the Republic of Armenia Proposal for Millennium Challenge Account Assistance Environmental Impact Assessment

Irrigated lands Beneficiaries Communities Sch [ha] Schemes WUAs No: Total Indirect Direct Under Total After Total farmers ben. ben. project area Project 16.2 Rehabilitation of ter/system Lori-Jrantsk - - - 6 - 413

17 Getik Getik 5,489 2,500 1,640 13 9 3,381 2,210

Construction of Spitak gravity 17.1 Getik 2,500 1,640 - 3 - 1,540 scheme 17.2 Rehabilitation of ter/system Getik - - - 3 - 370

18 Noyemberyan Noyemberyan 4,562 1,996 1,277 12 8 7,374 3,227

18.1 Rehabilitation of 6 P/S Noyemberyan 1,996 1,277 - 8 - 3,227

18.2 Rehabilitation of ter/system Noyemberyan - - - 8 - 314

19 Berd Berd 2,778 222 104 8 3 1,875 300

Construction of Berd gravity 19.1 Berd 222 104 - 2 - 150 scheme 19.2 Rehabilitation of ter/system Berd - - - 4 - 131

20 Ijevan Ijevan 5,907 1,240 847 15 6 5,330 1,119

Construction of Getahovit- 20.1 Ijevan 246 157 - 2 - 222 Lusadzor gravity scheme 20.2 Rehabilitatation of 5 P/S Ijevan 994 689 - 4 - 897

20.3 Rehabilitation of ter/system Ijevan - - - 4 - 166

Environmental Due Diligence Report – MCA-Armenia Proposal Page 34 Government of the Republic of Armenia Proposal for Millennium Challenge Account Assistance Environmental Impact Assessment

Irrigated lands Beneficiaries Communities Sch [ha] Schemes WUAs No: Total Indirect Direct Under Total After Total farmers ben. ben. project area Project

21 Kotayq Kotayq 9,131 639 639 21 8 5,500 3,385

Construction of Ptghni gravity 21.1 Kotayq 390 390 - 2 - 235 scheme 21.2 Rehabilitatation of 4 P/S Kotayq 249 249 - 4 - 150

21.3 Rehabilitation of ter/system Kotayq - - - 6 - 450 Gavar, Khndzorut, Hakhum, Rehabilitation of tertiary system 22 Vorotan, Tolors, Dzorer, Brnakot, 16,554 44 19,999 7,838 in 8 WUAs Hrazdan-Jour Masis, Ararat, Azat, Mkhchian, Reconstruction of drainage 23 Musaler, Aknalich, Vagharshapat, system in Ararat Valley Sevjur-Akhtamar, Merdzapnia

TOTAL: 303,643 214,646 92,488 618 485 228,614 175,199

Environmental Due Diligence Report – MCA-Armenia Proposal Page 35 Government of the Republic of Armenia Proposal for Millennium Challenge Account Assistance Environmental Impact Assessment

2.3. Current Situation of Rural Roads and Proposed Investments

Another internationally proven priority way of rural development acceleration and poverty reduction are investments in the rural road networks. Out of a total length of 3,692 km of roads, which connect rural communities with main roads, 2,250 km (61%) are classified as poor or very poor, with a further 1033 km (28%) in fair condition and only 406 km (11%) in good condition . Furthermore, only 597 km (16%) of these roads are fully passable during the winter time, while over 748 km (20%) are completely impassable. Most of the poor rural communities are located at 1700 meters above the sea level, and practically all of them have unsatisfactory access conditions to the main interstate roads.

While the road network in Armenia has benefited from a significant injection of foreign funds during the past five years, these funds have been targeted to the rehabilitation of the main (mainly interstate) roads, with the intention of returning them to good condition. The secondary and local roads, which connect rural areas to the primary road network and to the main regional commercial centers, have received almost no capital or recurrent funding for the past decade. Total expenditures on rural roads have amounted to approximately US$ 0.5 million over the last five years, with approximately half (US$ 0.23 million) funded from community budgets.

The proposed investments in rural road rehabilitation will improve the access of rural communities to agricultural markets as well as to social infrastructure. The investments will upgrade the condition of 1172 km of rural roads from ‘very poor’, or ‘poor’, to ‘good’. The project beneficiaries are estimated to be about 390,000 rural inhabitants residing in 313 rural communities. Other aspects that will be positively affected are better access to the basic education and health services, which will also contribute to the better use of general education and health establishments, which is also one of the government priorities under the PRSP.

Locations, distance between communities, numbers and names of communities connected, numbers of inhabitants are presented in Table 2.

Page 36 Government of the Republic of Armenia Proposal for Millennium Challenge Account Assistance Environmental Impact Assessment

Table 2. Summary Data on Road Roads

Number of Distance Number of No Marz District Project name inhabitants Communities connected (km) communities (person) Total Marz Aragatsotn 103 32 35,745

Norashen - Geghadir (2 km, C); Amre taza; 1 Aragatsotn Aragats Norashen-Geghadir 15 1 965 Sangyar; Alagyaz

Hnaberd - Geghadzor (2 km, C) - Amre taza 2 Aragatsotn Aragats Hnaberd-Amre taza 3 3 2777 (1 km, C)

3 Aragatsotn Aragats Tsaghkahovit-Sangyar 2 1 1562

Sub Total for District 20 5 5,304

4 Aragatsotn Ashtarak Shamiram-M1 1 1 609

Antarut - Byurakan (1 km, B) - Agarak (6 km, C) - 5 Aragatsotn Ashtarak Antarut-M1 8 3 5721 M1 (1km, C)

6 Aragatsotn Ashtarak Verin Sasunik-M1 9.5 2 2022 Verin Sasunik - Sasunik (9 km, C)-M1 (0,5 km, B)

Sub Total for District 19 6 8,352

7 Aragatsotn Aparan Vardenut-M3 3 2 2453 Vardenut - Shenavan (2 km, C)-M3 (1 km, C)

Dzoraglukh-Ttudjur (2 km, C) - Vardenis (4 km, 8 Aragatsotn Aparan Dzoraglukh-Aparan 11 5 1833 C) - Mulki (4 km, C) - Aparan (1 km, C)

Sub Total for District 14 7 4,286

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Number of Distance Number of No Marz District Project name inhabitants Communities connected (km) communities (person) Tlik - Getap (4 km, C) - Aragats (7 km, C) - Arteni 9 Aragatsotn Talin Tlik-M9 26 4 8536 (8 km, B) - M9 (7 km, B)

10 Aragatsotn Talin Lernagog-Qarakert 9 3 3431 Lernagog - Dalarik (3 km, C) - Qarakert (6 km, C)

Garnahovit - Zovasar (2 km, C) - Dzoragyugh 11 Aragatsotn Talin Garnahovit-M1 9 4 3427 (4 km, C) - Mastara (2 km, C) - M1 (1 km, C)

Baysz - Kakavadzor(1 km, C) - Nerqin 12 Aragatsotn Talin Baysz-M1 6 3 2409 Bazmaberd (4 km, C) - M1 (1 km, B)

Sub Total for District 50 14 17,803

Total Marz Ararat 13 6 12,094

Urcadzor - Dashtaqar (6 km, C) - Vedi (1 km, B) - 13 Ararat Ararat Urcadzor-M2 12 5 10288 Vanashen (2 km, B) - Vosketap (2 km, B) - M2 (1 km, B)

14 Ararat Ararat Sisavan-Vanashen 1 1 1806

Sub Total for District 13 6 12,094

Total Marz Armavir 28 18 37,726

Pshatavan - Janfida (3 km, C) - Nalbandyan (3 15 Armavir Armavir Pshatavan-M5 12 4 10136 km, C) - Amasia (4 km, C) - M5 (2 km, C)

Khandjyan - Lukashin (2 km, C) - Noravan 16 Armavir Armavir Khandjyan-Armavir 5 4 4939 (2 km, C) - Armavir (1 km, B)

Nor Artages - Jrashen (2 km, C) - Bambakashat 17 Armavir Armavir Nor Artages-Hoktember 4 4 5208 (1 km, C) - Hoktember (1 km, C) Page 38 Government of the Republic of Armenia Proposal for Millennium Challenge Account Assistance Environmental Impact Assessment

Number of Distance Number of No Marz District Project name inhabitants Communities connected (km) communities (person)

18 Armavir Armavir Lenughi-M5 1 1 1510

Getashen - Shenavan (1 km, C) - Nor Kesaria 19 Armavir Armavir Getashen-M5 4 3 5187 (1 km, C) - M5 (2 km, C)

Sub Total for District 26 16 26,980

20 Armavir Echmiadzin Griboyedov-M3 1 1 1893

21 Armavir Echmiadzin Metsamor-Gay 1 1 8853

Sub Total for District 2 2 10,746

Total Marz Gegharkunik 105 36 99,894

22 Gegharkunik Vardenis Norakert-Pokr Masrik 1 1 857

Akhpradzor - Makenis (3 km, C) - Lchavan 23 Gegharkunik Vardenis Akhpradzor-M11 10 4 3938 (2 km, C) - Tsovak (4 km, C) - M11 (1 km, C)

24 Gegharkunik Vardenis Karchaghbyur-M11 1 1 2291

25 Gegharkunik Vardenis Akunk-Vardenis 2 1 3469

Sub Total for District 14 7 10,555

Gegharkunik - Lanjaghbyur (1 km, C) - Sarukhan 26 Gegharkunik Gavar Gegharkunik-M10 10 5 38431 (1 km, C) - Karmirgyugh (4 km, B) - Gavar (2 km, B) - M10 (2 km, B) Page 39 Government of the Republic of Armenia Proposal for Millennium Challenge Account Assistance Environmental Impact Assessment

Number of Distance Number of No Marz District Project name inhabitants Communities connected (km) communities (person)

27 Gegharkunik Gavar Noratus-M10 1 1 5465

Sub Total for District 11 6 43,896

28 Gegharkunik Sevan Zovaber-M4 7 2 3654 Zovaber - Ddmashen(1 km, C) - M4 (6 km, C)

29 Gegharkunik Sevan Geghamavan-M4 3 2 2923 Geghamavan - Gagarin (2 km, C) - M4 (1 km, C)

30 Gegharkunik Sevan Lchashen-M4 0.5 1 4212

Sub Total for District 11 5 10,789

Antaramech - Dzoravanq (3 km, C) - Dprabak (2 km, C) - Aygut (3 km, C) - Martuni (9 km, C) - 31 Gegharkunik Chambarak Antaramech-M14 37 9 10762 Getik (1 km, C) - Ttujur (3 km, C) - Chambarak (4 km, C) - Aghberk (10 km, C) - M14 (2 km, B)

32 Gegharkunik Chambarak Vahan-Chambarak 2 1 1161

33 Gegharkunik Chambarak Artanish-M14 1 1 720

Sub Total for District 40 11 12,643

34 Gegharkunik Martuni Dzoragyugh-M10 3 1 3596

Sarnaghbyur - Karachi (6 km, C) - Madina (10 35 Gegharkunik Martuni Sarnaghbyur-M10 25 5 12695 km, C) - Verin Getashen (7 km, C) - Nerkin Getashen (1 km, C) - M10 (1 km, C)

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Number of Distance Number of No Marz District Project name inhabitants Communities connected (km) communities (person)

36 Gegharkunik Martuni Zolakar-M11 1 1 5720

Sub Total for District 29 7 22,011

Total Marz Kotayk 53 17 26,836

Sevaberd - Zar (5 km,C) - Akunq(5 km,B)- Katnaghbur (2 km, B) - Aramus(1 km,C) - 37 Kotayk Abovian Sevaberd - M4 19 7 13263 Mayakovski (2 km, B) - Balahovit (3 km, B) - M4 (1 km, B) Zovashen - Hatis (4 km,C) - Kaputan (6 km,B) - 38 Kotayk Abovian Zovashen - Mayakovski 21 5 5537 Kotayq (7 km,B) - Nor Gyugh (1 km, B) - Mayakovski (3 km,B) Saranist - Geghashen (5 km,C) - Kamaris 39 Kotayk Abovian Saranist - Aramus 10 3 6494 (3 km,B) - Aramus(2 km,B)

Sub Total for District 50 15 25,294

40 Kotayk Hrazdan Fantan-M4 1 1 1026

Sub Total for District 1 1 1,026

41 Kotayk Nairi Teghenik-Karashamb 2 1 516

Sub Total for District 2 1 516

Total Marz Lori 160 53 45,266

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Number of Distance Number of No Marz District Project name inhabitants Communities connected (km) communities (person) Gyullidara - Kilisa (2 km, C) - Halavar (2 km, C) - 42 Lori Gugark Gyullidara-M3 16 6 4227 Haydarli (2 km, C) - Lernapat (4 km, C) - Darpas (5 km, C) - M3 (1 km, B)

43 Lori Gugark Antaramut-M6 6 2 1578 Antaramut - Vahagni (5 km, C) - M6 (1 km, C)

44 Lori Gugark Debet-M6 4 1 899

45 Lori Gugark Yeghegnut-M6 1 1 1162

Sub Total for District 27 10 7,866

46 Lori Tumanyan Tsater-M6 1 1 482

47 Lori Tumanyan Chkalov-M6 6 2 2715 Chkalov - Dsegh (5 km, C) - M6 (1 km, C)

48 Lori Tumanyan Ahnidzor-Tumanyan 21 3 983 Ahnidzor- Marts (14 km, C) -Tumanyan (7 km, C)

49 Lori Tumanyan Atan-H22 7 2 723 Atan - Shamut (4 km, C) - H22 (3 km, C)

50 Lori Tumanyan Lorut-H22 2 1 1109

51 Lori Tumanyan Tsaghkashat-M6 9 2 1000 Tsaghkashat - Haghpat (7 km, C) - M6 (2 km, C)

Verin Akhtala - Pokr Ayrum (5 km, C) - Akhtala 52 Lori Tumanyan Verin Akhtala-Akhtala 7 3 1007 (2 km, C)

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Number of Distance Number of No Marz District Project name inhabitants Communities connected (km) communities (person) Chochkan - Mets Ayrum (1 km, C) - Pokr Ayrum 53 Lori Tumanyan Chochkan-Pokr Ayrum 4 3 2347 (3 km, C)

54 Lori Tumanyan Teghut-M6 3.5 2 3614 Teghut - Shnogh (3 km, C) - M6 (0,5 km, C)

Sub Total for District 61 19 13,980

55 Lori Spitak Khnkoyan-M7 3 1 408

56 Lori Spitak Tsaghkaber-M7 7 2 3164 Tsaghkaber - Mets Parni (4 km, C) - M7 (3 km, B)

Sub Total for District 10 3 3,572

Katnaghbyur- Katnaghbyur - Urasar (6 km, C) - Armanis 57 Lori Stepanavan 13 4 1709 Stepanavan (3 km, C) - Stepanavan (4 km, C)

58 Lori Stepanavan Sverdlov-M3 8 2 2079 Sverdlov - Urut (2 km, C) - M3 (6 km, C)

Koghes - Yaghdan (3 km, C) - Agarak 59 Lori Stepanavan Koghes-M3 12 4 2370 (3 km, C) - M3

Kurtan - Vardablur (3 km, C) - Gyulagarak 60 Lori Stepanavan Kurtan-Gyulagarak 5 3 2220 (2 km, C)

61 Lori Stepanavan Hobardz-H24 1 1 777

Sub Total for District 39 14 9,155

Paghaghbyur - Dzyunashogh (6 km, C) - 62 Lori Tashir Paghaghbyur-M3 14 3 5191 Metsavan (3 km, C) - M3 (5 km, C)

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Number of Distance Number of No Marz District Project name inhabitants Communities connected (km) communities (person)

63 Lori Tashir Mikhaylovka-M3 1 1 737

64 Lori Tashir Sarchapet-M3 5 2 3352 Sarchapet - Norashe (3 km, C) - M3 (2 km, C)

65 Lori Tashir Lernahovit-Tashir 3 1 1413

Sub Total for District 23 7 10,693

Total Marz Shirak 225 67 75,358

Voghchi - Shaghik (4 km, C) - Garnarich (2 km, C) - Tsaghkut (3 km, C) - Zorakert 66 Shirak Amasia Voghchi-M1 29 8 1792 (3 km, C) - Ardenis (6 km, C) - Aghvorik (4 km, C) - Tavshut (6 km, C) - M1 (1 km, C)

67 Shirak Amasia Lorasar-Tsaghkut 3 1 400

Aregnadem - Gyullibulagh (7 km, C) - Voghchi 68 Shirak Amasia Aregnadem-Gyumri 22 4 1621 (5 km, C) - Gyumri (10 km, C)

Sub Total for District 54 13 3,813

Mets Mantash - Pokt Mantash (0,5 km, C) - 69 Shirak Artik Mets Mantash-M1 17.5 5 22751 Saralanj (3 km, C) - Artik (4 km, C) - Horom (7 km, C) - M1 (3 km, C) Geghanist - Spandaryan (4 km, C) - Panik 70 Shirak Artik Geghanist-Horom 10 5 5767 (3 km, C) - Nor kyanq (2 km, C) - Horom (1 km, C)

71 Shirak Artik Anushavan-Panik 1 1 1543

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Number of Distance Number of No Marz District Project name inhabitants Communities connected (km) communities (person)

72 Shirak Artik Saratak-M1 1 2 1767 Saratak - Lusakert (0,5 km, C) - M1 (0,5 km, C)

73 Shirak Artik Lernakert-M1 11 2 3769 Lernakert - Pemzashen (3 km, C) - M1 (8 km, C)

Sub Total for District 41 15 35,597

Anipemza - Bagravan (7 km, C) - Sarakap (13 km, 74 Shirak Ani Anipemza-Maralik 33 5 2622 C) - Karaberd (8 km, C) - Maralik (5 km, C)

Isahakyan - Lusaghbyur (4 km, C) - Noraber 75 Shirak Ani Isahakyan-M1 11 4 2210 (4 km, C) - Gusanagyugh (2 km, C) - M1 (1 km, C)

Sub Total for District 44 9 4,832

Marmashen-Hanr. 76 Shirak Akhuryan 1 1 1656 chan.

77 Shirak Akhuryan Haykavan-M7 6 1 1193

78 Shirak Akhuryan Voskehask-M7 1 1 1816

Bayandur - Getk (4 km, C) - Gharibjanyan (2 km, 79 Shirak Akhuryan Bayandur-M1 9.5 4 6549 C) - Azatan (3 km, C) - M1 (0,5 km, C)

80 Shirak Akhuryan Aygabac-Gyumri 10 3 2230 Aygabac - Arevik (5 km, C) - Gyumri (5 km, C)

Jrarat - Musayelyan (4 km, C) - Karnut (6 km, C) - 81 Shirak Akhuryan Jrarat-Gyumri 18 5 11125 Akhuryan (5 km, C) - Gyumri (3 km, C)

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Number of Distance Number of No Marz District Project name inhabitants Communities connected (km) communities (person)

82 Shirak Akhuryan Kamo-M7 3 1 1350

83 Shirak Akhuryan Karmrakar-Maisyan 5 3 1099 Karmrakar - Hatsik (3 km, C) - Maisyan (2 km, C)

84 Shirak Akhuryan Arapi-M7 2 1 1751

Sub Total for District 55.5 20 28,769

Dzorashen - Kakavasar (7 km, B) - Pokr Sariar Dzorashen- 85 Shirak Ashotsk 24 6 826 (2 km, B) - Bashgyugh (4 km, C) - Salut (6 km, B)- Vardaghbyur Vardaghbyur (5 km, B)

86 Shirak Ashotsk Hartashen-M1 4 2 594 Hartashen - Zuygaghbyur (2 km, C) - M1 (2 km, C)

Pokr Sepasar - Mets Sepasar (1 km, B) - M1 87 Shirak Ashotsk Pokr Sepasar-M1 3 2 927 (2 km, C)

Sub Total for District 31 10 2,347

Total Marz Syunik 252 59 33,452

Tsghuni - Soflu (1 km, C) - Dastakert (4 km, C) - 88 Syunik Sisian Tsghuni-M2 30 7 6000 Torunik (5 km, C) - Tolors (10 km, C) - Sisian (4 km, C) - Shaki (5 km, C) - M2 (1 km, C) Spandaryan - Sarnakunk (4 km, C) - M2 89 Syunik Sisian Spandaryan-M2 5 2 985 (1 km, C)

Arevis - Tasik (8 km, C) - Hatsavan (2 km, C)- 90 Syunik Sisian Arevis-Sisian 19 5 1155 Ashotavan (3 km, C) - Sisian (6 km, C)

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Number of Distance Number of No Marz District Project name inhabitants Communities connected (km) communities (person)

91 Syunik Sisian Mutsk-M13 6 2 1394 Mutsk - Shaghat (5 km, C) - M13 (1 km, C)

92 Syunik Sisian Salvard-Sisian 12 3 2332 Salvard - Brnakot (6 km, C) - Sisian (6 km, C)

Shenatagh - Lor (3 km, C) - Getatagh (1 km, C) - 93 Syunik Sisian Shenatagh-M2 27 7 2678 Darbas (2 km, C) - Ltsen (6 km, C) - Vorotan (8 km, C) - Vaghatin (1 km, C) - M2 (6 km, C) Sub Total for District 99 26 14,544

Svarants - Tatev (1 km, C) - Halidzor (19 km, C)- 94 Syunik Goris Svarants-M2 32 4 4106 Shinuhayr (3 km, C) - M2 (6 km, C)

95 Syunik Goris Khot-M2 9 1 863

96 Syunik Goris Khoznavar-M2 17 2 2592 Khoznavar - Verishen (16 km, C) - M2 (1 km, C)

97 Syunik Goris Brun-Verishen 2 1 1035

98 Syunik Goris Khndzoresk-M12 3 1 1954

99 Syunik Goris Vaghatur-M12 16 2 1447 Vaghatur - Khnatsakh (3 km, C) - M12 (13 km, C)

100 Syunik Goris Kornidzor-Tegh 4 1 1047

Sub Total for District 83 12 13,044

Aghvani - Tandzaver (2 km, C) - Verin Khotanan 101 Syunik Kapan Aghvani-M2 27 5 854 (8 km, C) - Shrvenants (4 km, C) - Norashenik (2 km, C) - M2 (11 km, C)

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Number of Distance Number of No Marz District Project name inhabitants Communities connected (km) communities (person)

102 Syunik Kapan David Bek-M2 4 1 811

Verin Gedaklu - Nerkin Gedaklu (5 km, C) - 103 Syunik Kapan Verin Gedaklu-M2 6 2 910 M2 (1 km, C)

Uzhanis - Yeghvard (2 km, C) - Agarak (3 km, C)- 104 Syunik Kapan Uzhanis-M2 11 4 658 Khdrants (3 km, C) - M2 (3 km, C)

105 Syunik Kapan Ditsmayri-Syunik 3 3 1592 Ditsmayri - Siznak (2 km, C) - Syunik (1 km, C)

Qirs - Kyurut (2 km, C) - Geghi (7 km, C)- 106 Syunik Kapan Qirs-M2 17 5 699 Geghavank (2 km, C) - Kavchut (5 km, C) - M2 (1 km, C) Sub Total for District 68 20 5,524

107 Syunik Meghri Karchevan-Agarak 2 1 340

Sub Total for District 2 1 340

Total Marz Tavush 84 17 31,408

108 Tavush Idjevan Achadjur-M4 2 1 3901

109 Tavush Idjevan Lusahovit-M4 4 2 2073 Lusahovit - Khashtarak (3 km, B) - M4 (1 km, C)

Sub Total for District 6 3 5,974

Chinari-Aygedzor (3 km, D) - Artsvaberd (8 km, 110 Tavush Tavush Chinari-Idjevan 59 7 18484 D) - Verin Karmir aghbyur (4 km, C) - Berd Page 48 Government of the Republic of Armenia Proposal for Millennium Challenge Account Assistance Environmental Impact Assessment

Number of Distance Number of No Marz District Project name inhabitants Communities connected (km) communities (person) (5 km, C) - Navur (7 km, C) - Idjevan (32 km, C)

Movsesgyugh-Verin Movsesgyugh - Norashen (4 km, D) - Verin 111 Tavush Tavush 5 3 3695 Karmir aghbyur Karmir aghbyur (1 km, C)

Nerkin Karmir aghbyur- Nerkin Karmir aghbyur - Tovuz (6 km, C) - 112 Tavush Tavush 9 3 2553 Berd Berd (3 km, C)

113 Tavush Tavush Chinchin-Navur 5 1 702

Sub Total for District 78 14 25,434

Total Marz Vayots Dsor 48 8 5,268

Yeghegnadz 114 Vayots Dzor Aghavnadzor-M2 8 1 1939 or

Sub Total for District 8 1 1939

Khndzorut - Nor Aznaberd (3 km, C) - Zaritap 115 Vayots Dzor Vajk Khndzorut-M2 26 3 2037 (15 km, C) - M2 (8 km, B)

Bardzruni - Sers (5 km, C) - Martiros (5 km, B) - 116 Vayots Dzor Vajk Bardzruni-Zaritap 14 4 1292 Zaritap (4 km, B)

Sub Total for District 40 7 3,329

Total Rural Roads 1,069.5 313 403,047

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3. ENVIRONMENTAL MANAGEMENT SYSTEM IN ARMENIA

3.1. Legal Framework

After Armenia gained its independence in 1991, the deteriorating environmental condition of the country became more apparent and environmental concerns became high priority political issues and the process of development of environmental legislation was initiated.

The 10th Article of the Constitution of the Republic of Armenia (passed in 1995) states the State responsibility for environmental protection, reproduction and wise use of natural resources. A number of relevant laws were promulgated to regulate water use, road issues and protect the environment.

Law on the Principles of Environmental Protection (1991); Law on Specially Protected Natural Areas (1991); Law on Ensuring Sanitary-epidemiological Security of the RA Population (1992); Forest Code (1994), (new Code is under development); Law on Environmental Impact Assessment (1995), (new Law is under development); Law on Atmosphere Air Protection (1994); Law on Automobile Roads (1996); Law on the Protection and Use of Fixed Cultural and Historic Monuments and Historic Environment (1998); Law on Environment and Nature Use Charges (1998); Law on Flora (1998); Law on Rates of Environmental Charges (2000); Law on Fauna (2000); Land Code (2001), (the first Code was adopted in 1991); Law on Hydro-meteorological Activity (2001); Law on Environmental Education (2001); Law on Lake Sevan (2001); Code on Underground Resources (2002), (the first Code was adopted in 1992); Water Code (2002) (the first Code was adopted in 1992) Law on Water Users’ Associations and Federations of the Water Users Associations (2002), Law on Environmental Oversight (2005).

Summaries of the laws from the list which are most relevant to the MCA-Armenia projects are presented below.

Law on the Principles of Environmental Protection (1991) The Law on the Principles of Environmental Protection was adopted by the National Assembly (Parliament) in 1991. It outlines the environmental protection policy of the Republic of Armenia. Its purpose is to ensure state regulation of environmental protection and use within the territory of the republic. It provides a legal basis for the development of environmental legislation regulating the protection and use of entrails, forest, water, flora

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and fauna, and the atmosphere. This law also granted every citizen the right to demand and obtain reliable information on environmental conditions.

Law on Specially Protected Natural Areas (1991) The Law on Specially Protected Nature Areas outlines the procedures for establishing protected areas and their management. The Law defines four categories of protected areas in RoA:

• State Reserves; • State Reservations; • National Parks; and • Nature Monuments.

Law on Ensuring Sanitary-epidemiological Security of the RA Population (1992) The RoA Law “On Ensuring Sanitary-Epidemiological Security of the RA Population” adopted in 1992, which sets legal, economic and institutional bases for ensured sanitary and epidemiological safety of the RoA population, as well as other guaranties provided for by the State to exclude influence of adverse and hazardous factors on human organism and ensure favorable conditions for vital capacity of the present and future generations.

Forest Code (1994) The RoA Forest Code regulates the conservation, protection and management of forests.

Law on Environmental Impact Assessment (1995) The Armenian Law on Environmental Impact Assessment (EIA), passed in 1995, contains the standard steps of the EIA process for various projects and activities in Armenia. It establishes in Articles 2-5, the general legal, economic, and organizational principles for conducting mandatory state EIA of various types of projects and “concepts” of sectoral development (e.g., energy, mining, chemical industry, construction, metallurgy, pulp and paper, agriculture, food and fishery, water, electronics, infrastructure, services, tourism and recreation). The Law forbids any economic unit to operate or any concept, program, plan or master plan to be implemented without a positive conclusion of an EIA. In addition, an EIA may be also initiated for projects that do not meet “threshold” value requirements (“thresholds” were set by the Governmental Decree N193 issued on March 30, 1999). This right was given to local authorities, ministries, local communities and nongovernmental organizations in Article 4. Other national legislation that determines the “special status” of a particular territory may also trigger a review of environmental impact. The Ministry of Nature Protection can initiate a review of environmental impact when it deems it to be necessary. The EIA Law specifies notification, documentation, public consultations, and appeal procedures and requirements (Articles 6-11). The law also seeks to ensure high professional credentials (“certification”) of environmental assessment experts as well as to exclude any potential for conflict of interest. The Law on EIA is generally consistent with the EIA approaches followed by international conventions and development assistance agencies (e.g., World Bank, USAID, EU and MCC). The Law demands that for the operation of any economic unit, or implementation of a plan or programs, a positive conclusion of an environmental impact assessment must

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be obtained. The Law on EIA law also provides for public involvement and participation at all stages of the EIA.

Law on Automobile Roads (1996) The Law on Automobile Roads and especially the 13th Article regulates the alienation zones and protection areas of roads.

Law on the Protection and Use of Fixed Cultural and Historic Monuments and Historic Environment (1998) The Law on the Protection and Use of Fixed Cultural and Historic Monuments and Historic Environment, adopted by the National Assembly on November 11, 1998, provides the legal and policy basis for the protection and use of such monuments in Armenia and regulates the relations among protection and use activities. Article 15 of the Law describes procedures for, among other things, the discovery and state registration of monuments, the assessment of protection zones around them, and the creation of historic-cultural reserves. Article 22 requires the approval of the authorized body (Department of Historic and Cultural Monuments Preservation) before land can be allocated for construction, agricultural and other types of activities in areas containing monuments.

Law on Environment and Nature Use Charges (1998) The Law classifies the environment charges for the disposal and discharge of wastes to the natural environment; and nature use charges for the water withdrawal, mineral resources, biodiversity, etc.

Law on Flora (1998) and Law on Fauna (2000) The Laws on Flora and Fauna outline the Republic’s policies for the conservation, protection, use, regeneration, and management of natural populations of plants and animals, and for regulating the impact of human activities on biodiversity. These laws aim for the sustainable protection and use of flora / fauna and the conservation of biodiversity. There are provisions for assessing and monitoring species, especially rare and threatened species.

Land Code (2001) The Land Code defines the main directives for use of the lands allocated for the energy production, water economy (water supply, water discharge, pumping stations, dump sites, etc.), and other purposes. The Code defines the lands under the specially protected areas as well as forested, watered and reserved lands. It also establishes the measures aimed to the lands protection, as well as the rights of state bodies, local authorities and citizens towards the land.

Code on Underground Resources (2002) This Code contains the main directives for use and protection of mineral resources and underground water, including the sanitary protected zones for the underground water resources.

Water Code (2002) The main purpose of the Water Code is to provide the legal basis for the protection of the country’s water resources, the satisfaction of water needs of citizens and economic

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sectors through effective management of water resources, and safeguarding the protection of water resources for future generations. The Water Code addresses the following key issues: responsibilities of state/local authorities and public, development of the National water policy and National water program, water cadastre and monitoring system, public access to the relevant information, water use and water system use permitting systems, trans-boundary water resources use, water quality standards, hydraulic structures operation safety issues, protection of water resources and state supervision. Adoption of the Water Code in 2002 generated the need for development of a number of Governmental regulations and procedures, including permitting procedure, environmental flows, drainage water use, water alternative accounting, access to information on trans-boundary water, water use for fishery purposes, reservation of underground water sources, registration of documents in state water cadastre, public awareness and publicity of the documents developed by WRMA and other normative documents which provides guidelines directly linked with water and environmental issues.

Law on Water Users’ Associations (WUA) and Federations of the WUAs (2002) Within the main goals and tasks of the Association and Federation (Article 4) the following important issues from environmental perspective could be mentioned: operation and maintenance of irrigation system; implementation of construction works and restoration of watercourses and irrigation system; water supply management and prevention from pollution; implementation of necessary activities to improve the quality of land, supporting the drainage system; providing ecological safety through preventing land erosion, preventing from salinization, over-watering and promoting the protection of irrigation system.

Law on Environmental Oversight (2005). The Law regulates the issues of organization and enforcement of oversight over the implementation of environmental legislation of the Republic of Armenia, and defines the legal and economic bases underlying the specifics of oversight over the implementation of environmental legislation, the relevant procedures, conditions and relations, as well as environmental oversight in the Republic of Armenia.

The existing legal framework governing the use of natural resources and environmental protection includes a large variety of legal documents. Government resolutions are the main legal implementing instruments for environmental laws. Environmental field is also regulated by presidential orders, Prime-Minister’s resolutions and ministerial decrees.

3.2. International Agreements

The Table 3 showing the list of International Conventions and Protocols signed and ratified by the Republic of Armenia is presented below.

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Table 3. International Conventions and Protocols signed and ratified by the Republic of Armenia

Relevant to Convention or Protocol, Name and Place In Force Signed Ratified Comment NN the Proposal

Convention on Wetlands ands of International Importance Especially Ratified by 1 1975 1993 X as Waterfowl Habitat (Ramsar, 1971) USSR

Re-registered 2 Convention on Biological Diversity (Rio-De-Janeiro, 1992) 1993 1992 1993 X in UN 1993

Cartagena Protocol on Biological Safety (Cartagena, 2000) 3 2000 2004

Re-registered 4 UN Framework Convention on Climate Change (New-York, 1992) 1994 1992 1993 in UN in 1993

Re-registered 5 Kyoto Protocol (Kyoto, 1997) 2002 in UN in 2003

Convention on Long-range Transboundary Air Pollution (Geneva, Re-registered 6 1983 1996 1979) in UN in 1997

Convention on Environmental Impact Assessment in a Re-registered 1997 1996 X Transboundary Context (Espoo, 1991) in UN in 1997 7

Protocol on Strategic Environmental Assessment (Kiev, 2003) 2003 X

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Relevant to Convention or Protocol, Name and Place In Force Signed Ratified Comment NN the Proposal

Convention on the Transboundary Effects of Industrial Accidents Re-registered 2000 1996 (Helsinki, 1992) in UN in 1997 8 Protocol on Civil Liability and Compensation for Damage Caused by the Transboundary Effects of Industrial Accidents on Transboundary 2003 Waters (Kiev, 2003)

Re-registered 9 UN Convention to Combat Desertification (Paris, 1994) 1996 1994 1997 X in UN in 1997

Convention on the Control of Transboundary Movements of Re-registered 10 1992 1999 Hazardous Wastes and Their Disposal (Basel, 1989) in UN in 1999

Re-registered Convention for the Protection of the Ozone Layer (Vienna, 1985.) 1988 1999 in UN in 1999 11 Montreal Protocol on Substances that Deplete the Ozone Layer Re-registered 1989 1999 (Montreal, 1987) in UN in 1999

Convention on Access to Information, Public Participation in 12 Decision-Making and Access to Justice in Environmental Matters 2001 1998 2001 X (Aarhus, 1998) Convention on the Prior Informed Consent Procedure for Certain 13 Hazardous Chemical and Pesticides in International Trade 1998 2003 (Rotterdam, 1998)

Convention on Protection and Use of Transboundary Watercourses 14 1996 1999 X and International Lakes (Helsinki, 1992.)

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Relevant to Convention or Protocol, Name and Place In Force Signed Ratified Comment NN the Proposal

Protocol on Water and Health (London, 1999) 1999 X

Stockholm Convention on Persistent Organic Pollutants (Stockholm, 15 2001 2003 2001)

Convention on the Prohibition of Military or any Other Hostile Use of Re-registered 16 1978 2001 Environmental Modification Techniques (Geneva, 1976) in UN in 2002

17 European Convention on Landscape (Florence, 2000) 2004

Convention on Protection of the World Cultural and Natural Heritage 18 1993 X (Paris, 1972)

Energy Charter Treaty (Lisbon, 1994) 1997 19 Energy Charter Protocol on Energy Efficiency and Related 1997 Environmental Aspects (Lisbon, 1994)

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3.3. Institutional Framework

This section reviews the roles of government agencies that will have involvement in the MCA-Armenia Proposal projects, primarily but not exclusively from an environment perspective.

In Armenia, the State Committee of Water Management is the primary agency in charge of the management of water-related services and activities, whereas the Ministry of Nature Protection (MoNP) has overall responsibility for water resources and environmental protection and management. The Water Resources Management Agency subordinated to the MoNP is responsible for the allocation and issuing of permits of water resources in Armenia. In addition, the Ministry of Health plays a leading role in controlling the spread of malaria and other water-borne diseases. Local and regional authorities assume responsibility for natural resource use and protection within their jurisdiction.

The main organization in the road sector is the Ministry of Transport and Communication with its subordinate Armenian Road Directorate. Local and regional authorities assume responsibility for the routine maintenance of local roads.

State Committee of Water Management A State Committee of Water Management (SCWM) under the RA Government was set up under RA Government Decision #95, dated 9 February, 2001 with the purpose of improving the management of companies engaged in water activities. Among other objectives the SCWR promotes improvement of services to consumers, improvement of water tariff policy and implementation of reforms in this water sector. The SCWM performs the following functions: a) Participate in the policy development related to Water National Plan and RoA water resources protection and use; b) Submit to the RA Government annual reports on water utilization by a breakdown of sources and user companies; c) Execute authorized management of state stocks in companies engaged in commercial activities like building of hydro-technical constructions, technical operation, water supply and sewerage services in the area of irrigation, drinking water, sewerage as well as in state entities which implement investment projects in natural and artificial water basins in the mentioned areas at the expense of foreign funding.

The “Melioratsia” Closed Joint Stock Company is responsible for organization and supervision of construction, operation, maintenance and cleaning of drainage infrastructure, soils cadastre operation, as well as for monitoring of water quality in drainage areas. The Company monitors drainage conditions, water flow, and water quality through its 425 observation wells.

Ministry of Nature Protection The Ministry of Nature Protection (MNP) is responsible for the protection, sustainable use, and regeneration of natural resources as well as the improvement of the environment in the Republic of Armenia. In those areas, the MNP’s authority includes overseeing national policy development, developing environmental standards and guidelines, and

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enforcement. The MNP implements those functions through the following structural departments: • Normative-methodological Department o Division of Legislation o Division of Standards and Technical Regulations • Department of International Cooperation • Department of Environmental Protection o Division of Biodiversity and Water Resources Protection o Division of Land and Atmosphere Protection • Department of Hazardous Substances and Waste Management • Department of Nature Protection and Environmental Economics • Department of Underground Resources Protection • Department of Meteorology and Monitoring of Atmosphere Pollution

The MNP also undertakes several functions through the following relevant detached divisions and subordinate bodies:

Water Resources Management Agency WRMA is the key institution responsible for the water resources management: development of National Water Policy and National Water Plan; classification of water resources by their purpose usage; participation in water standards development and supervise their application, issue water use permits, etc. State Environmental Expertise SNCO (conduct environmental assessments, issue conclusions) State Environmental Inspectorate (includes 11 Regional Environmental Inspectorates: oversee the implementation of legislative and regulatory standards in natural resources protection, use and regeneration) Environmental Impact Monitoring Centre (collects water quality data from 131 sampling points) Armenian State Hydro-meteorological and Monitoring Service SNCO (operates 97 active hydrological stations) Bio-resources Management Agency Agency of Mineral Reserves Geological Agency

Ministry of Health State Hygienic and Anti-epidemiological Survey of the Ministry of Health of RA is responsible for the following actions implementation: • Participating in sanitary norms and drinking water quality standards development; • Coordination of all issues related to health; • Supervise implementation of sanitary norms, hygienic and anti-epidemiological measures implementation by organizations and citizens.

Ministry of Agriculture The Melioration Development Department of the Ministry of Agriculture is responsible for the development and implementation coordination of the annual projects on construction, operation, rehabilitation and cleaning of collector-drainage system.

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National Water Council This is the top consulting body within the water sector. It comprises representatives of several ministries. The role of the Board is the development of recommendations on National Water Policy and Program. Dispute Settlement Commission should be established under this Board, which is authorized to settle disputes related to water use permits within the scope of water relations.

Regulatory Commission Regulatory Commission is responsible for establishment of tariff policy in water relations and issuing of permits for the use of water systems.

Ministry of Transport and Communication The MTC undertakes several functions through the Armenian Road Directorate which takes overall responsibilities for the coordination and supervision of the construction, operation and maintenance of the roads within Armenia, including highways and roads of international importance.

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4. ENVIRONMENTAL IMPACTS

This Chapter addresses the potential environmental impacts of the Proposal Irrigation and Rural Roads Components and proposed mitigation measures.

In general, the environmental issues that may need to be addressed will vary with the subprojects depending on the project specific features. In the context of this evaluation an attention was paid to “fatal flaw” analysis. It should be mentioned that based on brief field and office reviews of representative components of the project, no “fatal flaws” that would prevent an environmentally-sound implementation of the projects were uncovered.

The positive impacts, on the other hand, are expected to be significant. The environmental impact findings of the preliminary studies are briefly presented below by component type.

Rural Roads Component. The majority of the project roads are expected to have a minor, short-term, localized, and totally rehabilitation-associated environmental impacts. Besides it is necessary to mention that according to Armenian Law on EIA, rehabilitation works are not subject to EIA. However, it is recommended that a detailed reconnaissance survey of all roads be performed as part of the technical surveys and design to determine if there are any environmental constraints and takings of cultivated land or trees, houses, cultural or community resources. After completing the survey, a checklist should be completed based on the survey results (see Annex B). If the survey/checklist process uncovers potential impacts, detailed EIAs will be produced for those roads, in accordance with the requirements of the terms of reference presented in Annex C. An Environmental and Social Management Plan (ESMP) will be developed and implemented for all road projects by the contractors. Annex C contains terms of reference for ESMPs.

Irrigation Component. Most of the efforts are associated with rehabilitation of existing schemes or replacement of energy-consuming pumping system with gravity ones where mostly positive impacts associated with the reduction of losses and energy savings are anticipated.

There are some cases of construction of the new reservoirs as well as rehabilitation of existing incomplete ones, where it could be necessary to fill the Checklist and investigate the potential for significant impacts to the human and natural environment from construction. The main adverse impacts here could be associated with the water-logging of reservoir sites; however these influences have to be fully compensated with the provision of reliable irrigation to the larger areas with its subsequent positive impacts.

Regarding Drainage rehabilitation sub-component a comprehensive ecological study of the wetlands in the Ararat Valley should be accomplished by international and local experts in wetland ecology to determine the current ecological productivity of these areas. The study should include an estimate of the historical extent of wetlands before the large rice and cotton cultivation schemes of the fist half of the twentieth century and the drainage initiated in the 1950’s, the expansion and subsequent reduction in the size of wetlands, and the impact of the drainage project component on the value of the remaining wetlands. The study should investigate through field studies the presence of rare or endangered species of fauna and flora, and the likelihood of impacting these through

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continued or expanded drainage works. Recommendations should be made about possible mitigation of the adverse impacts and protection of the wetlands.

The rehabilitation of the main and secondary canals, cleaning of tertiary canals, repairing of pumping stations would not pose significant risks to the environment. All of these activities are of rehabilitation nature; they do not affect new areas and do not include expansions or new designs for existing infrastructures. In addition, this part of the project aims only at improving the efficiency of the existing irrigation systems and reducing water losses. As a consequence, the range of impacts is limited (impacts directly related to the rehabilitation activities) and their magnitude remains small (localized impacts and no significant effect on future operation).

The sections discussing “No Action” Alternative of the Proposal, most important potential positive and negative impacts, as well as mitigation measures are presented below.

4.1. “No Action” Alternative

“No Action” alternative discusses the situation with no Project. In general “No Action” alternative is applied in respect of the Proposal as a whole. In this case “No Action” alternative will lead to the following cosequences:

• Reduction of irrigated area; • Further deterioration of irrigation infrastructure and rural roads; • Increased water losses; • Increased energy consumption; • Increased O&M costs for irrigation infrastructure and rural roads; • Intensification of secondary salinization process of the valuable lands in Ararat valley; • Extension of water-logged area; • Deteriorating of soil’s physical-chemical conditions resulting in desertification and in biodiversity reduction; • Worsening of public health conditions in over-humid areas related to the increase in water-borne diseases; • Reduction of income of the rural population; • Increased migration from rural areas.

Based on above list it may be stated that the potential negative consequences of the “No Action” alternative greatly overweight the environmental risks associated with the Proposal implementation.

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4.2. Potential Positive Impacts

The main positive impacts of the Project are followings:

• Provision reliable irrigation to the 131629 ha of lands; • Enlargement of irrigated area by 38770 ha; • Increasing the productivity of irrigated area; increasing of the crop quality and yields, and allowing the cultivation of cash crops; • Improvement of melioration state of 30000 ha of lands in Ararat valley, stopping the process of lands secondary salinization and soil over-humidization; • Reduction of water losses annually by 166.28 M m3; • Reduction of energy consumption. Annual energy savings will comprise 68.91 M kWt/h. Indirectly this will bring also ecological benefits through prevention of atmosphere pollution associated with less energy production; • Considerable reduction of O&M costs of the irrigation systems and rural roads; • Reduction of the dependence on pumping irrigation, which is electricity consuming, expensive and unreliable; • Improvement of the public health. Rehabilitation of the drainage system in Ararat valley will lead to a reduction of the water-borne diseases (i.e. malaria) and a general improvement in public health; • Improvement of the public socio-economic situation. Rehabilitation of 1072.95 km of rural roads will reduce transportation costs, improve the accessibility, and socio- economic situation of population of 313 rural communities; • Establishment of better opportunities for farming products realization; • Creation of new jobs; • Reduction of migration from rural areas, creation of conditions favoring the immigration back to rural communities process; • Increasing of incomes for dozens of thousands farmers and their families throughout Armenia.

4.3. Potential Negative Impacts

The potential negative impacts of the Project implementation are followings:

• Disposal of excavated materials and construction wastes. Demolition debris will be generated during the construction works on gravity schemes and reservoirs and rehabilitation works on canals and distribution network. These effects will be localized, and will be minimized by means of appropriate removal and disposal procedures;

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• Degradation of landscapes and soil erosion. The impacts on vegetative cover will be short-term, localized, and totally associated with construction of reservoirs and gravity schemes. They can be mitigated by adopting proper measures and contract provisions; • Impacts from temporary access roads and work areas. Establishment of temporary dirt roads to access work areas and temporary dumping sites for excavated materials can enhance soil erosion, and degrade the landscape; • Loss of fertile topsoil. Mixing of top soils (suitable for agriculture) with lower grade soils (deeper layers) during the excavation and back filling of trenches would have a negative impact on the soil quality and diminish agricultural production and yield; • Pollution by construction run-offs. Negative impacts of fuel and oils to groundwater are expected to be temporary and of minor significance; • Environmental flow considerations. During low precipitation years water resources will not be sufficient to fully meet the demands of irrigation and environmental flow, however the environmental flows should be preserved; • Impacts on the biodiversity of the project region. The construction works could have a negative impact on that special ecosystem as well as rare and endangered species found in the project area; • Impacts on trees. The construction works could require uprooting several amount of trees and thus have a negative impact on natural environment; • Barriers to fish migration upstream. Construction of reservoirs and intake structures would bring difficulties for the fish to swim upstream and could disturb the lifecycle of the fish and restrict their ability to spawn and reproduce; • Increased salinity of drainage water; salinity of the drainage water could temporary increase during rehabilitation, deepening and cleaning of the drainage collectors; • Noise and vibration disturbances during construction and temporary air pollution (dust) related to the transportation of construction materials and truck traffic. These impacts will occur during the construction and rehabilitation works, but will be only short-term and affect different people at different times. Effects include dust from construction activities, noise during trench excavation, possible effect of vibration caused by operation of heavy machinery, closure of roads and section of roads causing increased traffic, etc. These impacts will be felt but only for a short period and will also be moderate for people using or passing through the affected areas. Appropriate mitigation measures and construction methods will be in place; • Safety hazards from construction activities. No major hazards are expected the construction of the proposed project elements, as long as proper construction practices and safety procedures are applied; • Impacts on historic-cultural and archaeological monuments. No archeological or cultural resources are expected to be encountered during project implementation since major works consist in rehabilitation of existing systems where excavations have been conducted before and no findings have been reported. • Compensation issues for land acquisition and trees uprooting;

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4.4. Mitigation Measures

Based on the preliminary assessment, key mitigation measures recommended are listed as follows:

• Use, where possible, existing quarries for required additional materials; • Reuse of suitable excavated and dredged soils limiting the need for old and new quarries; • Choose and delineate carefully all access roads and work areas. Manage and monitor them closely so that they do not expand unduly during construction; • Where possible use of existing access roads avoiding construction of new ones; • Transport and disposal of construction concrete rubbles, debris and spoils in approved paths and landfills/dump sites; • Scrape and store preciously the top agricultural grade soil layer (typically about 20 cm, but this could vary from one location to another depending on local soil characteristics). Store these soils in piles not exceeding one meter (soils lose their agronomic qualities in thicker layers); • Compact the top surface of access roads and work areas to facilitate water runoff and avoid flooding the area. This will require to dig drainage ditches and connect them to natural drainage axes; • Take away the fertile topsoil from the reservoir sites that to be water-logged and use it further for the community needs (to be taken into account during design stage); • Conduct dust-depressing measures aimed at prevention of air pollution through watering of access roads and construction sites; • Obtain permits from the Ministry of Nature Protection and as needed from the local/regional authorities for the opening and/or use of quarries; • Obtain permits from the Ministry of Nature Protection and as needed from the local/regional authorities for disposal of excavated materials and construction wastes; • Obtain Water Use Permits from the Water Resources Management Agency of Ministry of Nature Protection for water withdrawal from the source; • Survey historic-cultural and archaeological monuments along proposed water conveyance lines and incorporate protection measures in design. During both design stage and construction the appropriate Contractors will cooperate with the Department of Historical and Cultural Monuments Protection under Ministry of Culture and Youth and if needed obtain all necessary permits prior beginning of construction works; • Restoration to quasi-original conditions of landscape after completion of construction and rehabilitation works and after use of quarries, where possible use the place-specific plant species;

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• Monitor irrigation water quality downstream of select new water intakes for gravity schemes; • Monitor quality and salinity level of drainage water and its impacts on the resource/land; • Cleaning and deepening of drainage collectors should be carried out during the winter, when river flows are high and can dilute easily the increase in suspended solids, besides at that time the aquatic life is less sensitive and lands are not irrigated; • Design and build fish ladders/passages and other fish protection measures on reservoirs and gravity schemes where needed; • Select optimal route/design that requires uprooting the least number of trees and causes least disruption to ecosystems and habitats of rare/endangered species • Compensate owners for land acquisition and loss of trees using village reserve lands and trees replanting; • Incorporate environmental (and social) clauses in standard contracts for all Irrigation and Rural Roads components’ construction works; • Conduct mid-term and end-of-project inspections to the sites during construction and rehabilitation works.

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5. ENVIRONMENTALLY SOUND CLAUSES FOR CIVIL WORKS CONTRACTS

Most construction phase impacts will be possible to mitigate by including appropriate clauses into the civil works contracts. Revisions of clauses should cover, but not limited to, the following issues:

• Compliance with general national environmental guidelines; • Protection of Natural Habitats and Specially-protected areas; • Protection of Historic-cultural monuments; • Adequate disposal of construction and excavation wastes; • Location of construction camps; • Restoration of the quasi-original conditions of landscape in construction sites after works completion; • Occupational safety and health (Consultants and contractors working on the program will be required to adhere to all applicable laws and regulations controlling workplace health and safety), etc.

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6. PUBLIC CONSULTATION AND PARTICIPATION

The RA Environmental Laws and International Agreements regulating public consultation and coordination, as well as information availability to public are listed below: • “The Fundamentals of the RA legislation on Nature Protection” ensure citizen’s right to request complete information concerning the environmental situation and obtain it in time.

• The RA Law “On Environmental Impact Assessment” sets forth the process of assessment of environmental impacts.

• The new Water Code of the RA also addresses public participation principles.

• Convention on Access to Information, Public Participation in Decision-Making and Access to Justice in Environmental Matters (Aarhus, 1998).

The MNP according to existing legislation is responsible for ensuring public awareness about planned activities through mass media, as well as notify local authorities and concerned NGOs about environmental aspects of a project with further consideration of their views during project preparation and implementation phases.

In order to ensure the sustainability of consultations in the Armenian MCA Program implementation process, it is planned to create a clear structure of ensuring the transparent and open processes of decision making and participatory monitoring over implementation. The structure, as well as the main responsibilities of each body will be discussed with all stakeholders. The structure represents the following bodies: • Board of Trustees with civil society representatives; • Stakeholders Committee; • Regional Stakeholders Committees.

Board of Trustees: The Armenian MCA Board of Trustees will be in charge of overall coordination of the Armenian MCA program. It will consist of eleven members. The composition of the Board of Trustees will include: representatives from the Government and civil society proposed by the Stakeholders’ Committee. Stakeholders Committee: Stakeholders Committee will be responsible for formation of civil society participation in the Board of Trustees, as well as for transferring ideas, concerns, complaints and proposals to the Board of Trustees. Stakeholders Committee will include representatives from NGOs, private sector associations, communities and Regional Stakeholders’ Committees. The Stakeholders’ Committee shall hold meetings at least quarterly. Regional Stakeholders’ Committees: Regional Stakeholders’ Committees will serve as a mechanism to provide representatives of the private sector, civil society, farmers associations, local communities, and regional governments the opportunity to provide

Page 67 Government of the Republic of Armenia Proposal for Millennium Challenge Account Assistance Environmental Impact Assessment

advice and input to MCA-Armenia regarding the implementation of projects in their regions. The main precondition for ensuring transparency and accountability is access to information. It will be through:

• Website. The established website (www.mca.am) is interactive (public forum, feedback etc.), meaning that all interested parties will have the opportunity to address their comments/complaints/concerns and receive proper responses. Website will make publicly available environmental impact assessment reports and environmental management plans for investment components of the Armenian MCA Program, Program reports, minutes of the meetings of the Stakeholders’ Committee and the meetings of the Board of Trustees and other project relevant information.

• Mass media. Mass media capacity, including in regional level, will also be used for provision of information on the process of implementation of the Armenian MCA Program and its results to the wide public.

Page 68 Government of the Republic of Armenia Proposal for Millennium Challenge Account Assistance Environmental Impact Assessment

7. MONITORING

In general monitoring functions will range from document review and field observations to field measurements, sampling and analysis. The checklists for environmental survey of the rural roads and irrigation schemes included in the MCA-Armenian proposal are presented in the Annex B. For each potential negative environmental impact specific measures to eliminate, offset, reduce or mitigate those adverse impacts to acceptable levels will be revealed during Environmental and Social Impact Assessments and described in Environmental and Social Management Plans. Terms of References for Environmental and Social Impact Assessments (if required by the Ministry of Nature Protection), Contents of an ESIA Report, as well as for Environmental and Social Management Plan are presented in Annex C. For each revealed potential adverse impact the followings will be identified: • the proposed mitigation measure(s); • the agencies responsible for implementing those measures, including: o executing agencies responsible for executing the measure; o supervising agencies responsible for supervising the executing agencies to ensure that they are executing the mitigation measures as planned; and o monitoring agencies responsible for monitoring implementation and effectiveness of the mitigation measures and for adjusting the program if needed.

Monitoring of the Environmental and Social Management Plans (ESMP) will be carried out using expert consultants engaged for the purpose. The ESMPs will outline the monitoring requirements, the monitoring agency, and the estimated capital and recurrent costs of the monitoring for each key environmental parameter to be monitored. It is envisaged that the ESMP will provide mid-term and end-of-the-project independent inspections to strengthen the monitoring process. Should there be any need to conduct such inspections at an earlier date or have some additional ones, or to make any amendments, the ESMPs will be adjusted as appropriate.

Most likely some relevant agencies (i.e. Environmental Monitoring Centre of the MNP) should be supported and some capacity building activities implemented to ensure proper environmental monitoring. These will increase the abilities of involved agencies charged with implementing and monitoring of the ESMPs. For example, monitoring of water quality should be carried out periodically for the irrigation and drainage components to ensure that the projects are not creating water quality problems within or downstream of the project components. Capacity building activities will cover organizational set-up, procurement of equipment and supplies, as well as technical assistance and training.

Environmental Documentation Process Environmental Documentation Process is designed to comply with MCC environmental guidelines and with the Armenian environmental laws. A review of the Armenian environmental legal and regulatory structure indicates that it is adequate for the purpose of environmental assessment, and that it will address the MCC environmental documentation requirements. Environmental Documentation Process outlined in Table 4 includes key actions and agencies responsible for implementation and Oversight/ Support/ Review of the process at the various steps.

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Table 4. Key Steps of Environmental Documentation Process

Oversight/ Step Action Responsibility Support/ Remarks Review Schemes must be defined as logical aggregates of components from the MCA-Armenia Proposal, must have Definition of schemes as a defined purpose and need, and must be of appropriate scale. For environmental evaluation, proposed schemes 1 “Projects” for the MCA-Armenia MCC environmental evaluation must not be divided into many smaller projects, activities or stages which are addressed as though they were independent, unrelated activities, likely to have insignificant environmental impacts. Preliminary Screening of a) MNP (State Categories A, B, and C are as defined in the MCC draft Projects according to Environmental 2 MCA-Armenia environmental guidelines (Federal Register Vol. 70, No. a) Armenian law, Expertise) 42, march 4, 2005) b) MCC guidelines b) MCC The EIA must comply with MCC guidelines and the Armenian EIA law. The Environmental Management Plan Completion of EIA, including MCA-Armenia, and (EMP) should include specific mitigation and monitoring 3 Environmental Management Project Proponent/ MNP, MCC requirements, and should be reflected in contract Plan Contractor clauses. This EIA and EMP must be approved by MNP (Environmental Expertise Agency). Project Proponent/ MNP Survey forms for roads and irrigation projects should be a Field Reconnaissance Surveys Contractor MCA Armenia used by qualified individuals, trained in the use of these MCC tools. Checklists for Rural Roads and Irrigation/ Drainage Project Proponent/ MNP Completion of Environmental projects are available. For some projects, the MCC may b Contractor MCA Armenia Checklist request other types of environmental documentation, or MCC may elect to waive the requirement for a checklist.

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Oversight/ Step Action Responsibility Support/ Remarks Review Documentation of consultation in compliance with MCC Project Proponent/ 4 Ongoing Public Consultation MCA-Armenia requirements and Articles 6, 8 and 10 of the Armenian Contractor EIA Law. Submittal of Environment Project Proponent/ SEE under MNP will review submitted EIAs and EMPs 5 Documentation Package to MCA-Armenia MNP Contractor and issue appropriate conclusion

Project Prior to construction, expert review and professional MNP (Environmental Proponent/ 6 Expert Conclusion conclusion to be obtained in accordance with Articles 9, Expertise Agency) Contractor 11, and 12 of the Armenian EIA Law. MCA-Armenia MCC must receive and approve the environmental Submittal of Environment Project documentation on Projects before funding can occur. Proponent/ Documentation should include, for each Project, Project 7 Documentation Package to MCA-Armenia MCC Contractor Definition, Checklist, Environmental Survey, EIA, EMP, MNP and/or MNP approval (as appropriate to Project Category) Monitoring to ensure compliance with environmental MNP (Environmental Management plans. For each Project, results of 8 Ongoing Monitoring Inspectorate and MCA-Armenia, monitoring of environmental impacts, ongoing public Environmental MCC consultation and performance of the EMP should be Monitoring Agency) submitted to MCC on a periodic basis as agreed between MCC and MCA-Armenia.

Environmental Due Diligence Report – MCA-Armenia Proposal Page 71 Government of the Republic of Armenia Proposal for Millennium Challenge Account Assistance Environmental Impact Assessment

8. MAIN FINDINGS

The Proposal presented by the Government of the Republic of Armenia to the Millennium Challenge Account is aimed at increasing agricultural production in poor rural areas of the country.

In the context of this evaluation an attention was paid to “fatal flaw” analysis. It should be mentioned that based on brief field and office reviews of representative components of the project, no “fatal flaws” that would prevent an environmentally-sound implementation of the projects were uncovered.

All rural roads included in the Proposal will be rehabilitated, no new construction will be implemented and thus it is expected to have minor, short-term and localized environmental impacts that are mostly associated with the limited emissions of dust.

Irrigation component also primarily aims at rehabilitation and improvement existing irrigation schemes and infrastructures or replacement of energy-consuming pumping system with gravity ones, where the impacts of positive nature are mostly anticipated due to the reduction of water losses on the one hand and energy savings on the other. There are some cases of construction of the new reservoirs as well as rehabilitation of existing incomplete ones that are of small scale, where it would be necessary to investigate the potential environmental impacts from construction/rehabilitation works. The main adverse impacts here could be associated with the water-logging of reservoir sites; however these influences have to be fully compensated with the provision of reliable irrigation to the larger areas with its subsequent positive impacts. Regarding Drainage rehabilitation subcomponent, a comprehensive ecological study of the wetlands in the Ararat Valley should be accomplished by international and local experts in wetland ecology prior to beginning of any construction/rehabilitation works with an aim to conduct environmental impact assessment and reveal the expediency of protection of recently established wetlands. The rehabilitation of the main and secondary canals, cleaning of tertiary canals, repairing of pumping stations would not pose significant risks to the environment, especially taking into consideration that these activities are of rehabilitation nature; they do not affect new areas and do not include expansions or new designs for existing infrastructures.

To prepare this EIA, the MCA-Armenia team has already identified in advance several potential negative environmental impacts of the proposed project and the adequate measures to eliminate, offset, or reduce those adverse impacts to acceptable levels will be incorporated into the project design. The checklists should be completed for the rural roads and irrigation infrastructure, as well as Terms of References for the Environmental and Social Impact Assessments, Environmental and Social Impact Assessment Reports and Environmental and Social Management Plans are developed and presented in this report (see Annexes B and C).

The lists of potential negative and positive impacts, “No Action” alternative and relevant mitigation measures were discussed in the EIA. The EIA recommends that all construction contracts have to include special provisions requiring Contractors to mitigate adverse environmental impacts. This report has also addressed environmental monitoring,

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environmental documentation process, capacity building, as well as public consultation and participation mechanism and other relevant issues.

The positive socio-economic and environmental impacts of the Proposal greatly overweight the environmental risks associated with its implementation. It will improve agricultural output and productivity, increase income of dozens of thousands of farmers and their families throughout Armenia, provide reliable irrigation, save millions of US dollars annually in energy costs, significantly reduce water losses and increase the supply of water for irrigation, reduce water-logging and flooding of dozens of villages and the spread of malaria in the Ararat valley, lead to the reduction of erosion and promote protection against desertification, etc. Rehabilitation of rural roads will improve the accessibility of communities and population social-economic condition in more than 300 villages.

MCA-Armenian team with great support of MCC team members and consultants has conducted EIA of the MCA-Armenian proposal. For a multi-component project of this type, it would not be expedient or realistic to assess each irrigation scheme and rural road section individually within the given time framework. Instead the team engaged in EIA development has targeted a few “representative” schemes and road areas for field visits with a thorough review and analysis of written documentation on the Proposal components. This approach allowed to identify the most likely range of potential impacts and formulate the most appropriate and reasonable set of mitigation measures. However, unforeseen impacts may arise from certain individual projects. Some of the impacts may also require other and more adapted mitigation measures than the ones described in this report. Therefore, it will be important to adapt/adjust the findings and recommendations of this EIA as needed during project implementation.

It is important to mention that the majority of works included in Irrigation Component of the Proposal were inherited from the World Bank Irrigation Development Project. EIA for the mentioned project was prepared by Ecodit Consultant firm (USA) in 2000, submitted to the State Environmental Expertise under the Ministry of Nature Protection and the positive expert Conclusion for the Concept Paper was obtained.

Environmental Due Diligence Report – MCA-Armenia Proposal Page 73 Government of the Republic of Armenia Proposal for Millennium Challenge Account Assistance Environmental Impact Assessment

9. REFERENCES

1. Armenia, 2002, National Assessment Report, Republic of Armenia report to the World Summit on Sustainable Development at Johannesburg 2002; Yerevan, 2002 2. Armenia, 2005, “Proposal for Millennium Challenge Account Assistance” Government of the Republic of Armenia, March 2005 3. DAI, 2002, “Analytical Report Summary – Water Quantity and Quality in Armenia, Azerbaijan, and Georgia” Prepared by Development Alternatives, Inc. for USAID Mission for the South Caucasus, February 2002. 4. DAI, 2003, Summary of Legislation in the Water Sector. Project Report. Prepared by Development Alternatives, Inc. for USAID Mission for the South Caucasus. 5. ECODIT, 2000, “Environmental Assessment of Irrigation Development Project”, SW-GR/014 Env, Updated EA Report, October 2000. 6. EPAC NGO, 2000, “Environmental Law of the Republic of Armenia”, by the assistance of USAID, Yerevan 2000. (in Armenian) 7. Georisk, 2003, “Environmental Management Plan Framework”, SW / DW-02/ 002, Armenia Municipal Water and Wastewater Project, Georisk Scientific Research Company, 2003 8. Government of the Republic of Armenia, 1994, Forest Code of the Republic of Armenia. Official Bulletin of the Republic of Armenia. (in Armenian) 9. Government of the Republic of Armenia, 1995, The Law of the Republic of Armenia on Environment Impact Assessment. Official Bulletin of the Republic of Armenia. (in Armenian) 10. Government of the Republic of Armenia, 1996, Law on Automobile Roads Official Bulletin of the Republic of Armenia. (in Armenian) 11. Government of the Republic of Armenia, 2001, The Land Code of the Republic of Armenia. Official Bulletin of the Republic of Armenia. (in Armenian) 12. Government of the Republic of Armenia, 2001, The RoA Government Regulations and Programs on the Republic of Armenia Water Systems Reformation and Development. (in Armenian) 13. Government of the Republic of Armenia, 2002, Water Code of the Republic of Armenia. Official Bulletin of the Republic of Armenia. (in Armenian) 14. Environmental law on the Republic of Armenia, Second Revised Edition. Managing Editor A.B.Iskoyan. Published with financial assistance of OSCE Office in Yerevan, 2004. (in Armenian) 15. FAO, 1995. Environment Impact Assessment of Irrigation and Drainage Projects. Prepared by T.C.Drougherty, A.W.Hall, Paper N 53, 1995. 16. Government of the Republic of Armenia, 2003, Poverty Reduction Strategy Paper. 17. Hadj-Mabrouk, 1999, Preliminary Environmental Management Plan. Dam Safety Project. Prepared by Ezedine Hadj-Mabrouk, World Bank, March 1999.

Environmental Due Diligence Report – MCA-Armenia Proposal Page 74 Government of the Republic of Armenia Proposal for Millennium Challenge Account Assistance Environmental Impact Assessment

18. Karanian et al, 2004, Stone Garden Guide – Armenia and Karabagh, by Matthew Karanian and Robert Kurkjian, Stone Garden Productions, Los Angeles/Yerevan, 2004. 19. MCC, 2005 , “Interim Environmental Guidelines for Public Comment”, MCC FR 05-02, Federal Register, Vol. 70, No. 42, Friday March 4, 2005 20. Ministry of Nature Protection of the Republic of Armenia, 1999, Armenia National Environmental Action Program. Main Report. (in Armenian) 21. REC, 2004, NGO Directory. A Directory of Environmental Non-Governmental Organizations in Armenia, Azerbaijan and Georgia, by The Regional Environmental Centre for the Caucasus, Tbilisi, 2004 22. REC, 2005, Environment and State Authorities. A Directory of Governmental Organizations with Environmental Responsibilities in the Republic of Armenia, by The regional Environmental Centre for the Caucasus, Tbilisi, 2005 23. Transparency International, 2002, “Information on Environmental Issues in State Bodies”, by Transparency International, UNEP, OSCE, Yerevan 2002. (in Armenian) 24. UNESCO, 2000, “Environmental Performance Review of Armenia” As discussed and approved by the seventh session of the Committee on Environmental Policy, Inited Nations Economic and Social Council, Economic Commission for Europe, Committee on Environmental Policy, September 2000. 25. World Bank, 1994, Armenia Irrigation Rehabilitation Project. Project Appraisal Document, Report No. 12811-AM. 26. World Bank, 1995, Armenia Agriculture and Food Sector Review. Report No. 13034- AM. 27. World Bank, 1999, Armenia Dam Safety Project. Project Appraisal Document, Report No. 19362-AM. 28. World Bank, 2000, Natural Resources Management and Poverty Reduction Strategy. Project Report. November 2000. 29. World Bank, 2001, Armenia, Towards Integrated Water Resources Management. Technical Paper 30. World Bank. 2001. Project Appraisal Document on a Proposed Credit to the Republic of Armenia for an Irrigation Development Project. Report No.22599-AM. August 2001. 31. “WSDII PIU”SI , 2005 “Manual on Legal Acts in Force Related to the Environmental Issues in Irrigation, Water Supply and Wastewater Sectors, by the “WSDII PIU” SI, JINJ Co Ltd, “SWE” NGO, “EPAC” NGO, Yerevan 2005. (in Armenian)

Environmental Due Diligence Report – MCA-Armenia Proposal Page 75 Government of the Republic of Armenia Proposal for Millennium Challenge Account Assistance Environmental Impact Assessment

ANNEXES

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ANNEX A: MAP

Location of Irrigation Schemes and Rural Roads

444444 444444 444444

181818 Alaverdi Ashotsk

393939 393939 393939

434343 434343 Stepanavan 434343 414141 161616 202020 414141 161616 202020 414141

424242 424242 424242 Ijevan

191919 404040 Spitak 191919 404040 191919 404040 171717 Berd 343434 171717 343434 343434 383838 383838 383838 Vanadzor 363636 363636 363636 Giumri 666 353535 353535 Dilijan 353535

373737 373737 373737 Artik 121212 121212 Sevan 999 Hrazdan

212121 212121 212121

131313 333333 131313 333333 131313 333333

323232 S 323232 Charentsavan e 323232 v 181818 a 181818 141414 n 171717 181818 141414 171717 141414 l 171717 a ke

222222 212121 222222 444 Ashtarak 212121 222222 444 212121 111111 444 Abovyan111111 Gavar 151515 111111 151515 151515 202020 202020 191919 161616 202020 191919 161616 191919 161616 555 555 242424 555 242424 303030 242424 303030 303030 777 252525 777 8 8 8 252525 777 8 8 8 252525 8 8 8 292929 7 7 7 292929 7 7 7 292929 7 7 7 101010 101010 232323 232323 Armavir 121212 232323 9 9 9 121212 9 9 9 121212 313131 222 9 9 9 Vardenis 313131 222 313131 Echmiadzin222 YerevanYerevan 282828 282828 282828 333 101010 6 6 6 Martouni 333 262626 101010 6 6 6 333 262626 101010 6 6 6 1 1 1 262626 1 1 1 1 1 1 272727 272727 272727 Masis

2 2 2 2 2 2 2 2 2 3 3 3 3 3 3 3 3 3 Artashat 111 5 5 5 5 5 5 5 5 5

4 4 4 4 4 4 Jermouk 4 4 4 Ararat Eghegnadzor

454545 454545 454545 888 , 888 464646 888 464646 464646

, Vaiq

505050 505050 505050

515151 515151 Goris 515151 Sisyan 474747 474747 474747 151515 131313 151515 525252 131313 525252 545454 131313 525252 545454 , 545454 484848 484848 484848

Kapan 141414

494949 494949 494949

111111 535353 Meghri 535353 535353 ,

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ANNEX B: CHECKLISTS AND FORMS FOR ENVIRONMENTAL RECONNAISSANCE

Proposed forms and instructions for environmental reconnaissance surveys and environmental checklists are presented here. For the irrigation component, it is recommended that the comprehensive checklist prepared by the International Committee on Irrigation and Drainage (ICID) be used. More information on this checklist, including a detailed manual and auxiliary software, can be found at: http://www.dfid-kar-ater.net/w5outputs/output_summary_sheets/icid_env_checklist_os.html

The environmental checklist for the roads component was developed based primarily on similar checklists used for rural roads projects by the Asian Development bank and others. The roads environmental reconnaissance form was developed based on similar rural roads projects.

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RURAL ROADS ENVIRONMENTAL CHECKLIST

Project Name/Location: ______Date: ______

Positive Negative Impact Impact For each environmental issue/effect

place a cross (X) in one of the columns Comments Very Very likely/ Major Possible/ Minor No Impact likely Very likely/ Major Possible/ Minor More information needed Issue/Effect A B C D E F 1.1 Protected areas 1.2 Fisheries, aquatic ecology 1.3 Wetlands

1.4 Forests 1.5 Rare, endangered species 1.6 Animal migration

Ecology 1.7 Natural Industry

2.1 Erosion and/or siltation 2.2 Local flooding 2.3 Stream channel regime changes 2.4 Landslides

2.5 Dust/pollution

Physical Effects Physical 2.6 Noise 3.1 Population change 3.2 Income & amenities

3.3 Taking of lands / trees 3.4 Resettlement 3.5 Women’s role 3.6 Minority groups

3.7 Regional effects 3.8 Cultural Resources 3.9 Urbanizing Problems 3.10 Health

Socio-economic Issues Issues Socio-economic 3.11 Recreation

Other Number of crosses:

Name/Designation of Assessor: ______

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RURAL ROADS ENVIRONMENTAL CHECKLIST Descriptions of Environmental Issues/ Effects

Note: These are residual effects after proper design and construction of the project roads, but before any possibly required specific mitigation is applied.

Ecology

1.1 Protected Areas: Does the road itself encroach on and/or destroy National Protected Areas, or other important ecological resources, or facilitate their destruction/encroachment by allowing access to these areas? 1.2 Fisheries, aquatic ecology: Will the road construction negatively or positively affect streams or other water resources and associated aquatic ecology? 1.3 Wetlands: Does the road encroach on, fill in, enhance, or otherwise affect wetlands? 1.4 Forests: Will the road require the encroachment on forests, or the cutting of trees? Will the road project result in planting of trees for shade or soil stabilization? 1.5 Rare, Endangered Species: Is the road likely to impact any plant or animal rare species, directly or indirectly through enhanced access to habitats? 1.6 Animal Migration: Will the road affect wild animal migration routes? 1.7 Natural Industry: Will the road positively or negatively affect commercial or subsistence activities through enhanced access? This includes fisheries, harvesting of natural vegetation, game hunting, honey production, etc.?

Physical Effects

2.1 Erosion and/or Siltation: Will the road increase or decrease the potential for erosion along exposed earth cuts and near streams? 2.2 Local Flooding: Will the road increase or decrease the potential for local flooding, especially in villages and other inhabited areas? 2.3 Stream channel regime changes: Is the road and associated bridges likely to encroach on or change stream channels? 2.4 Landslides: Will the road increase or decrease the potential for land slides, subsidence, or other negative geologic aspects along the alignment? 2.5 Dust/Pollution: Will the road increase or decrease airborne dust along the alignment that may affect people or crops, or pollution emissions from vehicles in populated areas? 2.6 Noise: Is the project likely to result in unacceptable levels of noise in populated areas?

Socio-Economic Issues

3.1 Population Change: Will the road cause significant population changes in the area which may affect social harmony? 3.2 Income and amenities: Will the road introduce changes in areas such as levels of employment and income, provision of local infrastructure, relative distribution of income, property values, and demand for labor that could increase or decrease social harmony and individual well-being? 3.3 Taking of Lands or Trees: Will the road require the taking of private or community productive lands or trees, vineyards, etc? 3.4 Resettlement: Will the project require any resettlement, and if so, have adequate provisions been made for resettlement, rehabilitation, and compensation in accordance

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with National laws and international best practice? 3.5 Women’s Role: Will the road cause positive or negative changes in the role of women in relation to social standing, access to health facilities, education, work load, access to income, etc.? 3.6 Minority Groups: Will the road cause changes to the lifestyle, livelihoods or habitation of any social groups leading conflict with their traditional behavior, social organization, or cultural or religious practices? 3.7 Regional Effects: Are the economic, infrastructure, social and demographic changes associated with the road likely to enhance, restrict, or lead to unbalanced regional development? 3.8 Cultural Resources: Will the road improvements affect cultural or religious monuments, places of aesthetic and scenic beauty, or archaeological/ paleontological resources? 3.9 Urbanizing Problems: Will the road bring outside problems (unacceptable levels of traffic, safety concerns, communicable diseases, increased crime, unacceptable outside cultural influences) to areas that were previously less accessible, or to areas primarily inhabited by minority or other susceptible populations? 3.10 Health: Will the road enhance or negatively affect access of the population to health services? 3.11 Recreation: Will the road enhance or constrain recreational possibilities and tourism?

Other: In this section the Assessor should enter any other significant issue, relevant to the road in question, that is not covered in the list above.

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Marz: Vayots Dzor (for example) Notes: Mark each column below with an "X" if condtion is observed, otherwise leave blank. District: Vajk In "Nearby Houses/Shops" column enter number observed within 20 m of centerline Project Name: Khndzorut-M2 Include any additonal observation not covered in the form under "Remarks"

Potential Direct Project Encroachment/ Impact Observations Erosion, Nearby Protected Fisheries/ Cultural Houses/ Natural km Location / Land Use Trees Wetlands siltation, Houses/ Remarks area streams resources Cultivation Industry landslides Shops 0+000 -- 0+500 etc.

Name/Designation of Surveyor: Date:

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ICID Environmental Checklist

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ANNEX C: TERMS OF REFERENCE FOR EIAs AND ESMPs

GENERAL TERMS OF REFERENCE AND TYPICAL CONTENTS OF AN ENVIRONMENTAL AND SOCIAL IMPACT ASSESSMENT REPORT AND AN ENVIRONMENTAL AND SOCIAL MANAGEMENT PLAN

Part A of this Annex presents the generic contents of the Terms of Reference (TOR) to carry out an Environmental and Social Impact Assessment (ESIA), when directed by the Ministry of Nature Protection, Environmental Expertise, and as required for MCC Category A projects.

Part B of this Annex presents the typical contents of an ESIA Report.

Part C provides a general description and contents of an Environmental and Social Management Plan.

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PART A: TYPICAL TERMS OF REFERENCE FOR AN ENVIRONMENTAL AND SOCIAL IMPACT ASSESSMENT

INTRODUCTION

This first section of the TOR indicates the purpose of the TOR, identifies the project sponsor which would normally be the MCA-Armenia organization, briefly describes the project to be assessed and explains the arrangements made at this stage to undertake the ESIA, such as the invitation to tender.

CONTEXT

This section explains the institutional, geographical, environmental, social and economic context in which the project is to take place. Moreover, it provides sufficient information on the objectives and components of the project, as well as on the study area, so that any person interested in the project can understand the situation and constraints surrounding the project and the ESIA to be carried out. Also, it shall mention any source of information (documents such as the MCA-Armenia Proposal and related documents) that could be useful for the completion of the ESIA.

REQUIREMENTS

This section indicates which policies and guidelines must be followed in carrying out the ESIA, primarily the Law on Environmental Impact Assessment (1995)1. Other laws and guidelines to be observed as appropriate include:

Law on the Principles of Environmental Protection (1991); Law on Specially Protected Natural Areas (1991); Law on Ensuring Sanitary-epidemiological Security of the RA Population (1992); Forest Code (1994), (new Code is under development); Law on Atmosphere Air Protection (1994); Law on Automobile Roads (1996); Law on the Protection and Use of Fixed Cultural and Historic Monuments and Historic Environment (1998); Law on Environment and Nature Use Charges (1998); Law on Flora (1998); Law on Rates of Environmental Charges (2000); Law on Fauna (2000); Land Code (2001), (the first Code was adopted in 1991); Law on Hydro-meteorological Activity (2001); Law on Environmental Education (2001); Law on Lake Sevan (2001); Code on Underground Resources (2002), (the first Code was adopted in 1992); Water Code (2002) (the first Code was adopted in 1992) Law on Water Users’ Associations and Federations of the Water Users Associations (2002),

1 A new law is under development and is expected to be adopted in late 2005.

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Law on Environmental Oversight (2005), etc.

The ESIA should comply with the guidelines of the Millennium Challenge Corporation (Federal Register Vol. 70, No. 42, March 4, 2005, and future updates).

The EIA should address all the topics and questions raised in the Irrigation or Roads Checklists, as appropriate. These checklists are annexed to the MCC Due Diligence Environmental report.

OBJECTIVES AND SCOPE OF WORK

This section defines the objectives of the ESIA and summarizes the scope of work to carry out, by indicating the key tasks to undertake during the study. The scope and level of work involved in the preparation of the ESIA shall be proportional to the project's potential impacts. For instance, an ESIA for a project that would likely have major adverse impacts on social components but limited impacts on the environment should focus mainly on the affected social components.

Major tasks that shall be highlighted in this section because of their importance in the preparation of an ESIA include:

• Describing the proposed project and presenting plans, maps, figures and tables.

• Identifying the policy, legal and administrative framework relevant to the project.

• Defining the project study area for the assessment of environmental and social impacts.

• Describing the physical, biological and human environment conditions in the study area before project implementation.

• Discussing alternatives to the proposed project, including the “without project” option, and comparing the alternatives on the basis of technical, economic, environmental and social criteria.

• For the selected alternative, identifying and assessing potential beneficial and adverse environmental and social impacts, direct and indirect, short and long-term, temporary and permanent.

• Defining appropriate mitigation/enhancement measures to prevent, minimize, mitigate, or compensate for adverse impacts including responsibilities and associated costs.

• Addressing potential cumulative effects taking into account other initiatives planned in the study area.

• Developing an environmental and social monitoring program, including indicators, institutional responsibilities and associated costs.

• Preparing a compensation and resettlement plan, if necessary.

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• Identifying institutional responsibilities and needs for capacity building if necessary to implement the recommendations of the environmental and social assessment.

• Carrying out stakeholder consultations to obtain their views and concerns about the project.

• Preparing the ESIA Report according to the generic contents presented in Part B hereafter.

• Preparing an Environmental and Social Management Plan (ESMP) according to the generic contents presented in Part C of this Annex. This management plan shall be presented as a distinct document from the ESIA Report.

SCHEDULE

This section specifies deadlines for presenting the ESIA preliminary (draft) and final reports to the project sponsor and the Ministry of Nature Protection, as well as other significant events and dates. The schedule shall be realistic to allow the completion of the ESIA Report within the specified deadlines. Depending on the nature and magnitude of the project and its potential impacts, the period of time required to complete an ESIA may vary between 1 and 12 months.

TEAM OF EXPERTS AND LEVEL OF EFFORT

This section identifies the types of experts required to carry out the ESIA and indicates, if possible, the level of effort estimated for each expert. A multidisciplinary team including experts in the environmental and social fields is usually required. The expertise requirements shall be defined as precisely as possible to ensure that key issues for project assessment are handled by appropriate specialists, such as a gender specialist when gender issues are determinant or a hydrologist when water management is central to the project success.

REPORTING

The ESIA Report shall be presented in a clear and concise manner and focus on relevant and significant environmental and social issues that assist in understanding the project and its impacts. The scope and level of details of the Report shall be proportional to the project's potential impacts.

The ESIA Report shall describe the scientific approach adopted to carry out the studies. In particular, the models, methods and criteria used in the studies shall be presented and explained. The Report shall also include maps and drawings at the appropriate scale and refer to all consulted documents.

The detailed ESIA Report can be prepared in Armenian and English. To be useful for decision-making, the ESIA Executive Summary shall be concise and written in a non- technical language.

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PART B: TYPICAL CONTENTS OF AN ENVIRONMENTAL AND SOCIAL IMPACT ASSESSMENT REPORT

The typical contents of an ESIA Report are presented here.

EXECUTIVE SUMMARY

This section shall present in a non-technical language a concise summary of the ESIA Report with a particular attention on the processes and procedures used; baseline conditions; the alternatives considered; mitigation/enhancement measures; monitoring program; consultations with stakeholders; capabilities of environmental and social units and actions to strengthen those capacities; and cost implications. This Executive Summary shall be written in Armenian and English.

INTRODUCTION

The Introduction shall indicate the purpose of the ESIA, present an overview of the proposed project to be assessed, as well as the project’s purpose and need. This section identifies the project sponsor and the consultant assigned to carry out the ESIA. It shall also briefly mention the contents of the ESIA Report and the methods adopted to complete the assessment.

POLICY, LEGAL AND ADMINISTRATIVE FRAMEWORK

This chapter concerns the policy, legal and administrative framework within which the ESIA is carried out. It presents the relevant environmental and social policies and regulations of the Republic of Armenia. It provides information on the environmental requirements of the Millennium Challenge Corporation and any co-financiers, and identifies relevant international environmental/social agreements to which the country is a signatory.

PROJECT DESCRIPTION AND JUSTIFICATION

The first part of this chapter shall describe the proposed project and its geographic, ecological, social, economic and temporal context: project location, various project components, capacity, construction activities, facilities, staffing, working conditions, availability and source of raw materials, production methods, products, schedule of works, land tenure, land use system, potential beneficiaries, affected groups (directly and indirectly), and offsite investments that may be required.

DESCRIPTION OF THE PROJECT ENVIRONMENT

This chapter shall first determine the limits of the study area that shall be defined in order to encompass all project direct and indirect impacts. The description and analysis of the physical, biological and human conditions shall address relevant environmental and social issues within this area, including any changes anticipated before project implementation.

Within the human environment, key issues that shall be considered include population characteristics and trends, revenue disparities, gender differences, health problems, natural

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resource access and ownership, land use patterns and civil society organization level. It shall also address the interrelations between the environmental and social components and the importance (value) that the society and local populations attach to these components, in order to identify the environmental and social components of high value or presenting a particular interest. A particular attention shall be given to the rare, threatened, or sensitive environmental and social components.

The information presented shall be relevant to decisions about project location, design, operations as well as environmental and social management. Maps, figures and tables shall be included in this chapter to better illustrate the various environmental and social components.

PROJECT ALTERNATIVES

This part of the ESIA Report consists in analyzing the various feasible alternatives of the project, including the "without project" option. It normally comprises two sections. The first section identifies and describes the potential feasible alternatives that would satisfy project objectives. The second section presents a comparison of the potential alternatives on the basis of technical, economic, environmental and social criteria, as well as of public views and concerns.

POTENTIAL IMPACTS AND MITIGATION/ENHANCEMENT MEASURES

This chapter presents a detailed analysis of beneficial and adverse impacts of various components of the selected project alternative on the physical, biological and human (social, cultural and economic) environments. The methodology of assessment, based on a rigorous scientific method, shall be first presented. Then all environmental and social, direct and indirect, short and long-term, temporary and permanent impacts shall be described and assessed, indicating their importance level and their probability of occurrence. The importance level may be assessed on the basis of the nature, extent, intensity and duration of the impact, as well as on the sensitivity of the concerned environmental and social components and perceptions of the public. Irreversible or unavoidable impacts shall be clearly identified. Cumulative effects shall also be addressed taking into account other projects or actions planned in the study area.

Appropriate mitigation measures shall be identified to prevent, minimize, mitigate or compensate for adverse environmental and/or social impacts. Moreover, enhancement measures shall be developed in order to improve project environmental and social performance. Roles and responsibilities to implement measures shall be clearly defined. The cost of the measures shall be estimated, including the cost for environmental and social capacity building and gender mainstreaming, if necessary. Residual impacts shall be presented.

ENVIRONMENTAL AND SOCIAL MONITORING PROGRAM

The first section of this chapter shall describe the surveillance measures aiming at ensuring that the proposed mitigation and enhancement measures are effectively implemented during the implementation phase. The second section concerns the environmental and

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social monitoring activities designed to measure and evaluate the project impacts on some key environmental and social components of concern and to implement remedial measures, if necessary. Indicators, roles and responsibilities shall be clearly defined. The cost of the program shall be estimated, including the cost for environmental and social capacity building if necessary.

PUBLIC CONSULTATIONS

This chapter shall summarize the actions undertaken to consult the groups affected by the project, as well as other concerned key stakeholders including Civil Society Organizations. The detailed record of the consultation meetings shall be presented in annex to the ESIA Report.

FINDINGS

This chapter shall specify the authors’ findings regarding the environmental and social acceptability of the project, taking into account the impacts and measures identified during the assessment process. It shall also identify any other condition or external requirement for ensuring the success of the project.

ANNEXES

List of the professionals and organizations having contributed to the preparation of the ESIA Report.

List of consulted documents, including project-related reports.

Baseline data referred to in the Report.

Record of consultation meetings with primary and secondary stakeholders.

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PART C: GENERIC CONTENTS OF AN ENVIRONMENTAL AND SOCIAL MANAGEMENT PLAN

The purpose of the ESMP is to define and reach an agreement with the project sponsor concerning mitigation/enhancement, monitoring, consultative and institutional strengthening measures to be undertaken during project implementation and operations.

The ESMP format shall be flexible to ensure the integration of project-specific mitigating, enhancing and monitoring requirements. For instance, the ESMP shall integrate or at least refer to any initiatives, such as resettlement plans, that contribute to enhance the project environmental or social performance but may be prepared separately or as part of the ESIA Report. In addition, the ESMP format shall permit adjustments and revisions to reflect new developments and findings along project implementation and operations.

The ESMP's scope and level of detail shall be proportional to the number and complexity of the measures required to ensure the project's environmental and social sustainability. The following components constitute the minimal contents of an ESMP:

GENERAL INFORMATION

Brief Project Identification Starting date of implementation Project completion date Date of operation Period covered by the plan

OBJECTIVES OF THE ESMP

This section shall specify that the ESMP aims to bring the project into compliance with applicable Armenian environmental and social legal requirements and the Millennium Challenge Corporation’s environmental and social policies. Another objective of the ESMP is to outline the mitigating/enhancing, monitoring, consultative and institutional measures required to prevent, minimize, mitigate or compensate for adverse environmental and social impacts, or to enhance the project beneficial impacts. It shall also address capacity building requirements if necessary.

CONTEXT

The ESMP shall briefly describe project activities and major environmental and social components that will likely be affected positively or negatively by the project. The context section shall outline existing interrelations between ecological and social processes.

BENEFICIAL AND ADVERSE IMPACTS

This section shall focus on beneficial impacts that can be enhanced to improve the project environmental and social performance as well as on adverse impacts that require mitigation measures to be minimized or compensated.

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ENHANCEMENT AND MITIGATION PROGRAM

This section shall propose feasible and cost effective measures to address the impacts previously defined, in order to accrue project benefits (enhancement measures) or to reduce potentially adverse environmental and social impacts to acceptable levels (mitigation measures). Each measure shall be described in detail, providing all technical information required for its implementation (design, equipment description and operating procedures, as appropriate).

MONITORING PROGRAM

A monitoring program aims to ensure that mitigation and enhancement measures are implemented, that they generate intended results and that they are modified, ceased or replaced when inappropriate. Moreover, it shows degree of compliance with national environmental and social policies and standards as well as with the MCC’s policies and guidelines.

The program shall define as clearly as possible the indicators to be used to monitor the mitigation and enhancement measures that need to be assessed during project implementation and/or operation. Baseline conditions should be established for each of the indicators prior to construction, using information from the ESIA or developed as part of the ESMP. The monitoring program shall also provide technical details on monitoring activities such as methods to be used, sampling locations, frequency of measurements, detection limits, and definition of thresholds that will signal the need for corrective actions.

CONSULTATIONS

The implementation and monitoring of some mitigation or enhancement measures may require that consultative mechanisms be used. In such cases, the ESMP shall first identify for which measures consultations will be undertaken as well as the goals and expected outcomes of these consultations. Then the ESMP shall specify the target groups, appropriate consultative processes, consultation frequency, reporting methods and result disclosure procedures.

RESPONSIBILITIES AND INSTITUTIONAL ARRANGEMENTS

The implementation of enhancement and mitigation measures as well as the completion of the monitoring program require the clear establishment of responsibilities among the various organizations involved in project implementation and operation. In addition, the ESMP shall propose support to the organizations that may have insufficient capacities to fulfill their obligations. This support could be provided through various means including technical assistance, training and/or procurement.

ESTIMATED COST

This section estimates the capital and recurrent cost associated with the various proposed measures (enhancement and mitigation), the monitoring program, consultations, complementary initiatives and institutional arrangements.

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IMPLEMENTATION SCHEDULE AND REPORTING

The ESMP shall include an implementation schedule taking into account all activities related to the proposed measures (enhancement and mitigation), the monitoring program, consultations, complementary initiatives and institutional arrangements. Moreover, the implementation schedule shall be developed by phases and in co-ordination with the overall project implementation plan.

To ensure early detection of critical environmental and social conditions and to provide information on the mitigation progress and results, reporting deadlines shall be specified in the implementation schedule and reporting procedures shall be presented in this section.

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ANNEX D: LIST OF KEY CONSULTATIVE MEETINGS AND FIELD VISITS

On March 26 of this year during the session of board of trustees in charge of preparation the Armenian application to the “Millennium Challenge Corporation” the board has approved the application of Armenia to the “Millennium Challenge Corporation” and a decision was made to submit it to the “Millennium Challenge Corporation”. During the same session a decision was made to organize and hold meetings and discussions in the marzes (regions) of Armenia with a purpose to make the public in large and especially the population of the marzes aware about the objectives and investments directions of the Proposal. To make those meetings and discussions more targeted they have also decided to prepare the marz options of Armenian application to the “Millennium Challenge Corporation”, where the projects implemented in the marzes are presented more specifically.

According to the given instructions the MCA-Armenia Team established by the decree No 355-A of the Armenian Prime Minister dated May 20, 2005 together with the economic reforms information center from June 22 up to July 22, 2005 in all the marzes of Armenia has conducted the Proposal submission and discussion of activities

The office of the governor was mainly in charge of organizing the marz discussions. The representatives of offices of the governors, local self-governing bodies, marz-level NGOs and marz offices of the international organizations have been invited and participated to the meetings. The meetings were broadly covered by the local media and television.

During the organized discussions the representatives of the MCA-Armenia team have presented the priority areas and grounds for decision-making in selecting the investment directions. In particular, the participants have been informed that the main purpose of the project is to reduce rural poverty and increase the incomes of the farmers. As a mechanism to fulfill those objectives they have chosen the agriculture development and the investment directions are the rehabilitation of irrigation systems and rural roads.

During the marz discussions in general they have approved the investment directions included in the application. At the same time they have presented a range of observations and recommendations, which are mainly about the investments included in the Proposal – issues concerning unequal distribution on the marz level and inclusion of additional projects.

At the same time some issues were tabled, the solution of which, according tot the participants is necessary for the investments in the irrigation system and road to ensure the maximum salient results. The participants have mentioned that those investments are necessary, but not sufficient to create additional revenues in the village. In particular they have tabled issues like rehabilitation of anti-hail services; introduction of insurance system; insufficiency of agriculture machinery; sales of agriculture products and inadequacy of long-term financial resources.

During the discussions the NGO representatives have tabled issues concerning in particular the environment impact assessment in the projects implemented; involvement of marz-level NGO representatives in the management entities and monitoring process of the

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“Millennium Challenge Corporation” projects’ implementation.

During the discussions certain agreements have been received about the clarification of the individual investment projects; involvement of additional unadjourned projects that the offices of the governors will summarize the submitted proposals and submit to the discussion of the board of trustees of the Armenian board of the “Millennium Challenge Corporation”.

In regard of this matter on July 29, 2005 at the session of the board of trustees of the Armenian Proposal to the “Millennium Challenge Corporation” they have presented the results of the marz discussions. At the session the board has given an instruction to the MCA-Armenia team to discuss the possibility of involvement of individual sections of the rural roads in the application taking into account that some sections of the road already included in the application have already been involved into the ongoing projects. At the same time the decisions about their involvement shall be based on the criteria of economics efficiency.

During the marz meetings the representatives of the MCA-Armenia team have also clarified that in order to clarify the directions to ensure additional incomes to the farmers as a result of the investments submitted in the application during August of this month they envisage organizing some sector discussions. The representatives of the international organization working in the area, public administration bodies, farmers’ unions, NGOs and MCA-Armenia will participate to the meetings.

The representative of the working group of the “Millennium Challenge Corporation” has given an clarification about the involvement of NGOs in the process of the project implementation monitoring that in the forthcoming future discussions will be held with the involvement of all the parties of the civil society to clarify the mechanisms of involvement of the representatives of the civil society in the project management bodies. The schedule of presentations and discussions of the Armenian Proposal to the “Millennium Challenge Corporation” in marzes is presented below.

N Marz Town Date and time Participants 22.06.2005 MCA-Armenia team, representatives of office of 1. Ararat Masis 11.00 - 13.00 governor, LSG, NGOs and regional media 24.06.2005 MCA-Armenia team, representatives of office of 2. Ararat Artashat 14.00 - 16.00 governor, LSG, NGOs and regional media 28.06.2005 MCA-Armenia team, representatives of office of 3. Lori Vanadzor 12.00 - 14.00 governor, LSG, NGOs and regional media 06.07.2005 MCA-Armenia team, representatives of office of 4. Vayots Dzor Eghegnadzor 14.00 - 16.00 governor, LSG, NGOs and regional media 08.07.2005 MCA-Armenia team, representatives of office of 5. Tavush Ijevan 14.00 - 16.00 governor, LSG, NGOs and regional media 12.07.2005 MCA-Armenia team, representatives of office of 6. Aragatsotn Ashtarak 11.00 - 13.00 governor, LSG, NGOs and regional media 15.07.2005 MCA-Armenia team, representatives of office of 7. Kotayk Hrazdan 11.00 - 13.00 governor, LSG, NGOs and regional media 19.07.2005 MCA-Armenia team, representatives of office of 8. Shirak Gyumri 11.00 - 13.00 governor, LSG, NGOs and regional media 21.07.2005 MCA-Armenia team, representatives of office of 9. Armavir Armavir 12.00 - 14.00 governor, LSG, NGOs and regional media 22.07.2005 MCA-Armenia team, representatives of office of 10. Gegharkunik Gavar 11.00 - 13.00 governor, LSG, NGOs and regional media

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Besides these general meeting a number of informal and official discussions regarding environmental issues related to the MCA Armenian Proposal was held with the participation of MCC representatives and consultants, MCA-Armenia team members, state officials, science and NGO representatives. The schedule of meeting is presented below.

June 24, 2005 MCA-Armenia meeting at Irrigation PIU Dr. Tigran Kalantaryan, MCA- Armenia Team Dr. Armando Balloffet, MCC Environmental Consultant Dr. Armine Simonyan, MCA-Armenia Team

Ministry of Nature Protection Mr. Simon Papyan, Deputy Minister, Ministry of Nature Protection Mr.Volodya Narimanyan, Deputy Head, WRMA Mr. Georgi Arzumanyan, Head of the Department of International Cooperation Dr. Armando Balloffet, MCC Environmental Consultant Dr. Armine Simonyan, MCA-Armenia Team

June 25-26, 2005 Site Visit to roads located in Vayots Dzor and Syunik Marzes Mr. Robert Fishbein, MCC Ms. Gail Chambers, MCC Ms. AnnRichards, MCC Mrs. Kristin Penn, MCC Dr. Armando Balloffet, MCC Environmental Consultant Mr. Mohammed Benalil, MCC Rural Roads Consultant Mr. Hakob Petrosyan, MCA-Armenia Team

June 27, 2005 Ministry of Finance MCA-Armenia Team MCC Due Diligence Team.

June 28, 2005 Monitoring and Evaluation Workshop MCA-Armenia Team MCC Due Diligence Team State and NGO representatives

June 29, 2005 World Bank Ms. Arusyak Alaverdyan, Operations Officer, Water & Irrigation Dr. Armando Balloffet, MCC Environmental Consultant Dr. Armine Simonyan, MCA-Armenia Team

June 30, 2005 Site Visit to roads M3-Darpas-Lernapat-Haydarli-Halavar-Kilisa-Gyulidara in Gugark District in Lori Marz Mr. Hakob Petrosyan, MCA-Armenia Team Dr. Armando Balloffet, MCC Environmental Consultant

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Mr. Mohammed Benalil, MCC Rural Roads Consultant Ms. Gail Chambers, MCC Infrastructure Program Officer Dr. Armine Simonyan, MCA-Armenia Team

July 1, 2005 Armenian Road Directorate, Ministry of Transport & Communication Mr. Karen Badalyan, Head of Tenders and Projects Department Dr. Armando Balloffet, MCC Environmental Consultant Dr. Armine Simonyan, MCA-Armenia Team

World Bank Mr. Artavazd Hakobyan, Operations Analyst, Agriculture & Environment Dr. Armando Balloffet, MCC Environmental Consultant Dr. Armine Simonyan, MCA-Armenia Team

Water Resources Management Agency Mr. Hakob Matilyan, Deputy Minister, Ministry of Nature Protection Dr. Alfred Nersisyan, Head, Water Resources Management Agency, MNP Mr. Volodya Narimanyan, Deputy Head, WRMA Mr. Hosnik Kirakosyan, Deputy Head, WRMA Dr. Armando Balloffet, MCC Environmental Consultant Dr. Armine Simonyan, MCA-Armenia Team

Environmental Inspectorate, Ministry of Nature Protection Mr. Igor Sargsyan, Deputy Head of Environmental Inspectorate Dr. Roza Julhakyan, Head of accounting and analyzing department Mr. Edward Zakaryan, Head of water supervision department Dr. Armando Balloffet, MCC Environmental Consultant Dr. Armine Simonyan, MCA-Armenia Team

Division of Biodiversity and Water Resources, Ministry of Nature Protection Dr. Tatyana Danielyan, Head the biodiversity and water resources division Dr. Armando Balloffet, MCC Environmental Consultant Dr. Armine Simonyan, MCA-Armenia Team

Meeting at MCA-Armenia with Environmental NGOs Dr. Karine Danielyan, Chairerson of the Association “For Sustainable Human Development” Dr. Zhanna Galyan, President, Armenan Ecotourism Association Mr. Jeffrey Tufenkian, President, Armenian Forest NGO Ms. Nazeli Vardanyan, Director, Armenian Forest NGO Dr. Armando Balloffet, MCC Environmental Consultant Dr. Armine Simonyan, MCA-Armenia Team

Meeting at REC-Armenia Mr. Hovhannes Ghazaryan, Coordinator, REC Caucasus Armenian Branch Office Ms. Anna Jenderejyan, REC Caucasus Armenian Branch Officer Dr. Armando Balloffet, MCC Environmental Consultant Dr. Armine Simonyan, MCA-Armenia Team

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July 2, 2005 Site visit to existing Amberd intake structure, Arzni-Shamiram main canal, secondary and tertiary canals, and WUAs Mr. Alex Russin, MCC Country Director Mr. Robert Fishbein, MCC Mr. Chuck Houston, MCC Irrigation Consultant Dr. Armando Balloffet, MCC Environmental Consultant Mr. Hamlet Harutyunyan, WSDII PIU Irrigation specialist Dr. Armine Simonyan, MCA-Armenia Team

July 4, 2005 Site visit to roads M5-Hoktemer-Bambakashat-Jrashen-Nor Artagers-Nalbandyan- NorArmavir-Amasia-Hushakert-M5 in Armavir region Mr. Hakob Petrosyan, MCA-Armenia Team Dr. Armando Balloffet, MCC Environmental Consultant Mr. Mohammed Benalil, MCC Rural Roads Consultant Dr. Armine Simonyan, MCA-Armenia Team

July 5, 2005 Meeting at Open Society Institute Dr. Larisa Minasyan, Mr. Alex Russin, MCC Country Director Dr. Armando Balloffet, MCC Environmental Consultant Mr. Hovhannes Azizyan, MCA-Armenia

Site visit to drainage system in Ararat Valley, “Meliorastsia” CJSC, WUAs Mr. Robert Fishbein, MCC Mr. Chuck Houston, MCC Irrigation Consultant Mr. Hamlet Harutyunyan, WSDII PIU Irrigation specialist Mr. Vladimir Tadevosyan, director of “Melioratsia” CJSC Dr. Armine Simonyan, MCA-Armenia Team

July 6, 2005 Site visit to drainage system in Ararat Valley, wetland areas, “Meliorastsia” CJSC Mr. Hamlet Harutyunyan, WSDII PIU Irrigation specialist Dr. Armando Balloffet, MCC Environmental Consultant Dr. Armine Simonyan, MCA-Armenia Team

Meeting at MNP, Environmental Expertise SNCO Mr. Ashot Santrosyan, Managing Director Dr. Armando Balloffet, MCC Environmental Consultant Dr. Armine Simonyan, MCA-Armenia Team

Meeting at MNP, Environmental Monitoring Centre SNCO Mr. Rudolf Torosyan, Head of Environmental Monitoring Centre Dr. Armando Balloffet, MCC Environmental Consultant Dr. Armine Simonyan, MCA-Armenia Team

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July 7, 2005 Site visit to reservoir areas (Sasnashen, Irind, Artik), and Aragats Vorogum WUA Mr. Chuck Houston, MCC Irrigation Consultant Dr. Armando Balloffet, MCC Environmental Consultant Mr. Hamlet Harutyunyan, Irrigation PIU Dr. Armine Simonyan, MCA-Armenia Team

July 8, 2005 Meeting with Ramsar Convention Focal Point in Armenia Dr. Karen Jenderedyan, Head of AnimalResources Management Division of the Bioresources Management Agency/ Focal point of Ramsar Convention Dr. Armando Balloffet, MCC Environmental Consultant Dr. Armine Simonyan, MCA-Armenia Team

July 9, 2005 Attendance and presentation at EIA Seminar at Vanadzor Dr. Averik Hovsepyan, President, Sustainable Water Environment NGO Dr. Eduard Mesropyan, General Manager, JINJ, Engineering Consultants Dr. Armando Balloffet, MCC Environmental Consultant Dr. Armine Simonyan, MCA-Armenia Team

July 11, 2005 Site visit to Aragatsotn region, Vardenout, Apna and Orgov dam sites, gravity scheme, pumping stations, WUA Mr. Chuck Houston, MCC Irrigation Consultant Mr. Hamlet Harutyunyan, Irrigation PIU Dr. Armine Simonyan, MCA-Armenia Team

July 12, 2005 Site visit to Gegharkounik region, Agrija dam intake site, gravity scheme, pumping stations, WUA Mr. Steven Anderson, MCC Ms. Elizabeth Cordaro, MCC Mr. Chuck Houston, MCC Irrigation Consultant Mr. Hamlet Harutyunyan, Irrigation PIU Dr. Armine Simonyan, MCA-Armenia Team

July 13, 2005 Site visit to Shirak region, Kaps incomplete dam site, gravity scheme, pumping stations, main, secondary and tertiary canals, WUAs Mr. Chuck Houston, MCC Irrigation Consultant Mr. Hamlet Harutyunyan, Irrigation PIU Dr. Armine Simonyan, MCA-Armenia Team

August 8, 2005 NGO Meeting at the Ministry of Finance and Economy MCA-Armenia Team NGO representatives

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August 10, 12, 16, 17 and 18, 2005 NGO/Focus Group Meetings at the UN House MCA-Armenia Team NGO representatives

August 16, 2005 Site visit to Lori region, Spitak gravity scheme, pumping stations, WUA Mr. Chuck Houston, MCC Irrigation Consultant Dr. Gary Merkley, MCC Consultant Mr. Hamlet Harutyunyan, Irrigation PIU Dr. Tigran Kalantaryan, MCA-Armenia Team Dr. Armine Simonyan, MCA-Armenia Team

August 17, 2005 Site visit to Armavir region, Low Hrazdan and Armavir main canals, secondary and tertiary canals, pumping stations, Mr. Chuck Houston, MCC Irrigation Consultant Dr. Gary Merkley, MCC Consultant Mr. Hamlet Harutyunyan, Irrigation PIU Dr. Armine Simonyan, MCA-Armenia Team

August 24-26, 2005 Meetings at Irrigation PIU MCA-Armenia Team MCC Due Diligence Team.

August 27, 2005 Site visit to the road site Ijevan – Navur – Berd located in Tavush region Ms. Emily Andrews, MCC Ms. Rebecca Tunstall, MCC Ms. Leah Sullivan, MCC Dr. Armine Simonyan, MCA-Armenia Team Mr. Melik Gasparyan, MCA-Armenia Team

August 28, 2005 Site visit to the gravity irrigation schemes Agrija and Vardenis located in Gegharkunik region Ms. Emily Andrews, MCC Ms. Rebecca Tunstall, MCC Ms. Leah Sullivan, MCC Mr. Frederick Scheuren, MCC Consultant Mr. Hamlet Harutyunyan, Irrigation PIU Dr. Armine Simonyan, MCA-Armenia Team Mr. Melik Gasparyan, MCA-Armenia Team

August 29, 2005 Meeting in UN Office Dr..Astghik Mirzakhanyan, UN social and monitoring project coordinator Ms. Leah Sullivan, MCC Dr. Armine Simonyan, MCA-Armenia Team

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Site visit to the Vardenout village, WUA Ms. Leah Sullivan, MCC Dr. Armine Simonyan, MCA-Armenia Team

Meeting in Armenia Tree Project Office Mr. Mher Sadoyan, Deputy Country Director of Armenia Tree Project Ms. Leah Sullivan, MCC Dr. Armine Simonyan, MCA-Armenia Team

August 30, 2005 Meeting in OSI Office Dr. Larisa Minasyan, OSI Ms. Leah Sullivan, MCC Dr. Armine Simonyan, MCA-Armenia Team

Meeting in Ministy of the Health Ms. Nune Bakunts, Leading Specialist of Hygienic and Anti-epidemiological Inspectorate of the Ministry of Health Ms. Leah Sullivan, MCC Dr. Armine Simonyan, MCA-Armenia Team

Meeting in CRS Office Ms. Sona Hamalian, CRS Ms. Leah Sullivan, MCC Dr. Armine Simonyan, MCA-Armenia Team

Hearing in UN Meeting Hall The separate meeting regarding the environmental issues related to MCA-Armenia Proposal Components was held on August 30 in UN Meeting Hall with the participation of MCC environmental and social sector representative, MCA-Armenia team members, state officials, and a large number of NGO representatives.

August 31, 2005 Workshop on Monitoring and Evaluation in UN Meeting Hall MCA-Armenia Team MCC Due Diligence Team State and NGO representatives

September 7, 2005 Meeting with NGOs in Ministry of Finance MCA-Armenia Team NGO representatives

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