E718 March 1, 2003

STATE AMELIORATION AND IRRIGATION COMMITTEE Public Disclosure Authorized Attached to the Cabinet of Ministers

INTERNATIONAL DEVELOPMENT ASSOCIATION Public Disclosure Authorized IRRIGATION DISTRIBUTION SYSTEM AND MANAGEMENT IMPROVEMENT PROJECT Public Disclosure Authorized ENVIRONMENTAL ASSESSMENT ENVIRONMENTAL MANAGEMENT AND MONITORING PLAN

United Nations Food and Agriculture Organisation

FINAL DRAFT

March 1, 2003 Public Disclosure Authorized 01/03/03

IRRIGATION DISTRIBUTION SYSTEM AND MANAGEMENT IMPROVEMENT PROJECT

ENVIRONMENTAL ASSESSMENT ENVIRONMENTAL MANAGEMENT AND MONITORING PLAN

1. INTRODUCTION

1.1 Background 1.2 Objective 1.3 World Bank Safeguard Policies 1.4 Methodology 1.5 Consultation Process

2. ENVIRONMENTAL POLICY, LEGAL & INSTITUTIONAL FRAMEWORK

2.1 Policy Context 2.2 Legal/Regulatory Framework for Environmental Management/Assessment 2.3 Institutional Framework for Environmental Management and Assessment

3. KEY NATURAL AND SOCIO-ECONOMIC PARAMETERS OF AZERBAIJAN

3.1 Natural Setting 3.2 Socio-Economic Factors Associated with Water Management and Irrigation

4. ANALYSIS OF BASELINE CONDITIONS

4.1 Description of Project 4.2 Analysis of Project Alternatives 4.3 Description of the Physical/Biological Environment 4.4 Description of Socio-Economic Context 4.5 Description of Stakeholders and Beneficiaries

5. ASSESSMENT OF PRINCIPAL ENVIRONMENTAL AND SOCIAL IMPACTS AND PROPOSED PREVENTIVE ACTIONS AND MITIGATION MEASURES

5.1 Anticipated Positive Social and Environmental Impacts 5.2 Anticipated Negative Environmental and Social Impacts 5.3 Global Impacts of Amelioration and Irrigation Sector Policy

6. ENVIRONMENTAL MANAGEMENT AND MONITORING PLAN

6.1 Objective of the EMMP 6.2 Environmental Screening and Review of Sub-Projects 6.3 Environmental Monitoring Program 6.4 Environmental Capacity Building and Training Program 6.5 Implementation Arrangements 6.6 Implementation Schedule 6.7 Proposed Budget and Funding Sources for EMMP Implementation

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IRRIGATION DISTRIBUTION SYSTEM AND MANAGEMENT IMPROVEMENT PROJECT ENVIRONMENTAL ASSESSMENT

Executive Summary

1. PROJECT DESCRIPTION. At the request of the Government of Azerbaijan, the World Bank is prepanng an Irrigation Distribution System and Management Improvement Project (IDSMIP) to follow the Rehabilitation and Completion of Irrigation and Drainage Infrastructure Project (RIDIP). The IDSMIP would support development of Azerbaijan's water user associations (WUAs) and finance rehabilitation of associated small-scale on-farm imgation and dramage infrastructure. The infrastructure improvements will be made on a demand-driven basis on the farms of WUAs that meet certain eligibility criteria in the project area raions in Azerbaijan (Khachmaz, Aghjabedi, limshli, Sabirabad, Saatli, Zardab, Geranboy) and in the Autonomous Republic of Nakhchivan (Babek, Sharur). Some associated off-farm infrastructure improvements (including the rehabilitation of Bahramtepe headworks) will be made to ensure effective delivery of water to the rehabilitated on-farm systems.

2. ENVIRONMENTAL ASSESSMENT (EA). The EA has been prepared for the proposed project in order to ensure that it incorporates sound environmental management principles and practices and complies with World Bank environmental safeguards as well as with Azerbaijani environmental requirements. The EA examines proposed project activities, the environmental policy, legal and institutional framework in Azerbaijan, and the existing situation in the project area to identify the environmental and social impacts of the proposed project, both positive and negative, and specify appropnate preventive actions and mitigation measures to prevent, eliminate or minimise anticipated adverse impacts and to ensure the project's compliance with Azerbaijani legislation. Furthermore, the EA proposes certain institutional 'arrangements, capacity-building and monitoring activities to ensure that the prevention and mntigation measures are implemented. The EA has been prepared by a team of international environmental experts from the UN Food and Agriculture Orgamsation (FAO), working together with the Environmental Specialist of the RIDIP Project Implementation Unit (PIU) and national environmental experts.

Main Anticipated Positive Impacts: * Improved Agricultural Productivity. Infrastructure rehabilitation should enhance productivity by both improving irrigation water delivery and bringing fallow lands back into production. Strengthened WUAs should improve water resources/soil fertility management and promote consistent operation and maintenance of irrigation and drainage structures. * Increased Farm Income, Alleviation of Poverty. Assuming improvements in agncultural marketing and agro-industries as well as access to credit and extension services over time, increased agricultural productivity and return to cash crops should lead to increases in farm family incomes, improved employment, and a reduction in rural poverty. * Improvements in Health. Drainage system improvements will reduce the areas of standing water where disease vectors multiply and improved operation and maintenance of these systems should encourage farmers to improve health conditions in the rural areas. * Reduction in Water Losses, Soil Salinity, and Waterlogging. The rehabilitation of imgation and drainage systems would reduce water losses, improve control of groundwater levels, and prevent soil salinisation and waterlogging. * Improved Water Resources Management. By strengthening WUAs, encouraging better water measurement, enhancing imgation service fee collection, and eliminating illegal abstractions, the IDSMIP will promote better control on water use and contribute to more rational water management.

Potential Negative Impacts and Recommended Preventive and Mitigation Measures: 29/01/03 Draft

• Construction impacts. Mostly on-site, small-scale impacts on access and movement; agricultural activities; and vegetation and wildlife. Bahramtepe headworks rehabilitation may involve additional construction impacts: water and soil pollution; disruption of the hydrological system, imgation water supply and fisheries; damage to the river ecosystem or the surrounding landscape. Recommended measures: environmental, health and safety covenants in the bidding documents of construction contracts; environmental management guidelines for construction contractors; site-specific environmental management plans and related staff training; restrictions on the use of heavy machinery at ecologically sensitive sites. * Management of dredged sediment and concrete debris. Indiscriminate dumping of sediments may cause loss of agricultural land, erosion and resilting of the canals. Contaminated sediments may adversely affect the natural environment and accumulate in crops. Concrete debris and metal scrap, if dumped indiscriminately, would damage landscape and cause pollution. Recommended measures: sediment sampling prior to canal dredging; proper disposal of contaminated matenal; use of non-contaminated sediments for field levelling or as fill matenal; a waste management plan for concrete/metal waste to identify proper reuse and disposal opportunities. * Decreased downstream water quality. Main risks are increased drainage from saline soils and inadequate management of pumping station waste and, in the long-term, increases in agro-chemical use induced, indirectly and gradually, by productivity improvements and return to cash crops that the IDSMIP is expected to bring: over-application by farmers unaware of risks and subsequent water pollution.. Recommended measures: Expose farmers through agricultural extension services to proper irrigation and other agricultural practices, Integrated Pest and Production Management (IPPM), proper agro-chemical application and storage methods, as well as awareness raising on the risks of obsolete/banned chemicals use. Guidance on proper pumping station management to pump operators. * Reduction in downstream river flows: Although the project will not significantly increase irrigation water withdrawals, it will be based on present abstraction levels which, in dry years, may conflict with ecological minimum flows. Recommended measures: Installing river flow measuring equipment at headworks, promotion of water-conserving irrigation techniques, a review of ecological minimum flow requirements to be initiated at the national level. * Impacts on agricultural soils: Topsoil erosion due to inappropriate irrigation methods; canal erosion due to poor design/construction; waterlogging and soil salinisation caused by over- watering and poor subsurface drainage; leaching of nutnents and reduction in soil fertility caused by irrigation return flows. Recommended measures: level land and field drainage; reline canals susceptible to erosion and rehabilitate associated hydraulic structures; remove unauthorised connections to canals/drains; improve water distribution, management and irrigation practices; clear field drainage before each irrigation season; and introduce crop rotation cycles. Sub-surface water level and quality monitoring. * Reduction of water levels in sensitive wetlands. Project sites located close to sensitive wetland habitats (Lakes Ag-gel, Boz-Gobu, Mehman and Sansu) might adversely affect the wetland ecosystems if they reduce the amount of water flowing or draining into them. Recommended measures: continue the RIDIP ecological wetland monitoring program; phase IDSMIP activities so that infrastructure on WUAs adjacent to sensitive wetlands would not be rehabilitated before adequate monitoring information is available; expert panel to review monitoring results and decide on mitigation measures if needed. e Water pollution on sensitive wetlands. Water salinity or agro-chemical pollution could have negative impacts on the shallow wetland habitats. Recommended measures: monitor the quality of inflowing drainage water; if needed, establish natural vegetation filters in the tail end of secondary drains or small, uncultivated buffer zones along the edges of field drains. o Reduction of on-farm habitat. Rehabilitation of irrigation infrastructure will eliminate the mini-wetlands occurring in drainage canals and may damage vegetation along irrigation canals, potentially affecting habitats of rare/protected species or natural monuments protected

2 29/01/03 Draft

by legislation. Recommended measures: clean drainage canals only where this is needed to prevent salinuty/waterlogging, perform site assessment before construction to identify any important habitats/sites located along/in the canals proposed for rehabilitation and define appropriate site-specific preventive/mitigation measures; co-finance rehabilitation of forest shelterbelts along canals on a demand-driven basis.. * Irrigation water-related health problems. Health impacts are pnmarily positive, but the availability of more irrigation water in the canals and collectors may also lead to increases in disease vectors; risks remain where imgation water is used as dnnking water. Recommended measures: ensure that farmers discontinue any water retention practices that provide breeding areas for mosquitoes; train farmers in proper vector control techniques and safe drinking water practices. * Water user conflicts. There is potential for conflicts between WUAs and among WUA members over actual or perceived inequities in water distribution. Recommended measures: establish a transparent, equitable and corruption-free system of water allocation and distribution; strengthen WUAs to address equitable water management and use conflict resolution strategies, and prevent illegal/unplanned connections to canals/drains.

The EA also identified the following global impacts of current irrigation sector policy: * Inefficient use of water resources. The conveyance of water in open, unlined canals; the use of flood, furrow and border strip irrigation techniques; the lack of measurement and control structures; and wasteful on-farm irrigation practices all contribute to the high water losses and inefficient use of water in the irrigation system, and the associated problems of waterlogging, soil salinisation and soil fertility decline. * 2 Under-pricing of water and irrigation resources. The present irrigation service fee .>structure, based on a uniform water price per hectare, and the fee rates themselves are wholly -inadequate for promoting sustainable management and proper maintenance of the irrigation :system. Steady population growth, recovery of tndustrial activities, and growth of agricultural markets will make water scarcity an impediment to economic development. Recommended measure: Azerbaijan desperately needs integrated national water resources management. Although it is beyond the scope of the IiDSMIP, the EA recommends that the World Bank assist the Government in developing such an approach.

Environmental Screening and Review. The demand-driven nature of the IDSMIP means that the exact number and location of the infrastructure rehabilitation sub-projects to be financed have yet to be determined. In order to ensure that the appropriate preventive and mitigation measures are applied to specific sub-project rehabilitation sites on a case-by-case basis, the EA proposes environmental screening and review procedures. The initial screening would cover all of the infrastructure rehabilitation sub-projects. A sub-project would not be eligible if it involves: (i) construction of significant new irrigation or drainage systems; (n) a significant increase in the withdrawal of river water; or (iii) conversion of important natural habitat into agricultural use. Furthermore, an environmental screening checklist would be completed on each sub-project by the WUA concerned to identify potential environmental impacts, suggest appropriate preventive and mitigation measures, and trigger, where appropriate, further environmental review by the Ministry of Ecology and Natural Resources (MENR). The PIU will assist in the preparation of checklists, approve them, supervise and monitor their implementation, and assist in posslble munistry review.

Monitoring. Monitoring of the environmental and social impacts of the project will be performed by the PIU and the WVUAs. The PIU is responsible for implementation of general and site-specific mitigation measures, wetlands ecological monitoring, construction impacts, sediment sampling, subsurface water level and quality, soil salinisation, on-farm habitats, and public health statistics.

3 29/01/03 Daft

The WUAs are responsible for monitoring on-farm soil erosion and illegal connections, as well as assisting the PIU in monitoring on-farm subsurface water and soil salmisation.

Capacity-building. Environmental capacity building and agricultural extension/training are included in the project to ensure effective implementation of the mitigation measures. Environmental capacity building will include: (i) an environmental specialist in the PIU; (ii) support to the environmental specialist through technical training and environmental consultants; (iii) environmental training to PIU management and staff; (iv) training of environmental counterparts in participating WUAs; (v) environmental training for SAIC central and field office staff, mainly through the World Bank Urgent Environmental Investment Project (UEIP); (vi) environmental support to SAIC through national experts. The EA identified several topics for agricultural extension to be provided in areas where irrigation infrastructure will be rehabilitated through the World Bank Agricultural Development and Credit Project (ADCP), which is already being implemented in many of the areas to be covered by the IDSMIP.

3. CONSULTATIONS. The EA team began consulting stakeholders and beneficiaries of the proposed project during its first three missions: meeting with officials in the SAIC, the MENR, and other national institutions; with local SAIC officials and WUA members in the raions; with environmental NGOs; and with farmers and other beneficiaries. Public consultations were organised during the fourth mission in Baku and Sabirabad to inform project beneficiaries and stakeholders of the findings and recommendations of the EA, discuss and improve understanding of the potential impacts of the project, review the proposed mitigation measures to ensure their adequacy, appropriateness and acceptability, and receive and incorporate comments from consultation participants.

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IRRIGATION DISTRIBUTION SYSTEM AND MANAGEMENT IMPROVEMENT PROJECT

ENVIRONMENTAL ASSESSMENT ENVIRONM1ENTAL MANAGEMENT AND MONITORING PLAN

1. INTRODUCTION

This Environmental Assessment (EA) and Environmental Management and Monitoring Plan (EMMP) has been prepared for the proposed World Bank Irrigation Distribution System and Management Improvement Project (IDSMIP) in Azerbaijan in order to ensure that the proposed project incorporates sound environmental and social management principles and practices and thus complies with World Bank environmental safeguards as well as with Azerbaijani environmental requirements.

1.1 Background

The IDSMIP will be the World Bank's second project in the irrigation and drainage sector in Azerbaijan and is a follow-on to the existing Rehabilitation and Completion of Irrigation and Drainage Infrastructure Project (RIDIP), which was approved in 2000 for an implementation period of five years (2000-2005). The RIDIP addresses the rehabilitation of a portion of the Samur Apsheron Canal originating on the Samur River in northern Azerbaijan and the construction of the new Main Mill Mugan Collector in the Kura-Araz River basin in southern Azerbaijan..These are large-scale, primary irrigation and drainage infrastructure works; whereas the IDSMIP is designed, for the most part, to rehabilitate small-scale, on-farm tertiary imgation and drainage infrastructure and some related off-farm secondary systems in areas that benefit from the primary infrastructure improvements of the RIDIP.

As currently proposed, the IDSMIP would provide support for development of Azerbaijan's emerging water user associations (WUAs) and undertake selective rehabilitation and improvement of associated on-farm irrigation and drainage infrastructure. The proposed infrastructure improvements will be made, for the most part, on a demand-driven basis on farms that meet certain eligibility criteria within the project area raions (see Map 1) identified in the northern (Khachmaz), southern (Aghjabedi, Imishh, Sabirabad, Saatli, Zardab), and western (Geranboy) regions of the country and in the Autonomous Republic of Nakhchivan (Babek, Sharur). A limited amount of off-farm infrastructure improvements will be undertaken as necessary to ensure effective delivery of water to the rehabilitated on-farm systems. Both the on- farm and related off-farm infrastructure rehabilitation are intended to complement the irrigation and drainage system works completed by the RIDIP. A more detailed description of the proposed project can be found below (see Section 4.1).

The RIDIP established a Project Implementation Unit (PIU) to manage execution of the irngation and drainage infrastructure works for the Government of Azerbaijan's State Amelioration and Irrigation Committee (SAIC). The PIU comprises a number of construction engineers who oversee the project's irrigation and drainage infrastructure improvements and an environmental specialist who oversees the environmental management plan and environmental monitoring programme established by the environmental impact assessment prepared for the project. The SAIC and the World Bank decided to use the PIU to support the project preparation activities for the IDSMIP; the environmental specialist from the PIU worked closely with the national and intemational team in preparing this EA/EMIMP.

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The objective of this EA (Sections 1-5 of the document) is to identify the significant environmental and social impacts of the proposed project (both positive and negative) and to specify appropriate preventive actions and mitigation measures (including monitoring) to prevent, eliminate or minimise anticipated adverse impacts. The EMMiP (Section 6 of the document) is the mechanism that ensures that the environmental prevention and mitigation measures identified, the screening and review process proposed, and the capacity-building and monitoring activities recomnmended will be properly undertaken during implementation of the proposed project. The EMNMP also establishes the necessary institutional arrangements and proposes an implementation schedule for undertaking these EMMP activities, indicating their costs in the proposed project budget.

1.3 World Bank Safeguard Policies

The World Bank's Integrated Safeguard Data Sheet for the IDSMIP classified it as a Category "B" project (requinng partial assessment), triggenng the Bank's safeguard policies for environmental assessment, projects on international waterways, and safety of dams. The EA confirmed the Category "B" designation for the proposed project, finding no significant, irreversible, cumulative or long-term adverse impacts. In fact, the EA identified a number of positive impacts of the proposed project and negative impacts that could be effectively prevented or reduced through application of appropriate preventive actions or mitigation measures (see discussion of impacts in Section 5.). The EA also confirmed the application of the three specified safeguard policies to the IDSMIP and re-examined but rejected application of the Bank's safeguard policies for natural habitats and pest management to the project (see below). Finally, the EA, determined that the project, as currently proposed, does not trigger any of the remaining safeguard policies involving forestry, cultural property, indigenous peoples, involuntary resettlement or projects in disputed areas.

1.3.1 Environmental Assessment (OPi 4.01, BP2 4.01, GP3 4.01). The anticipated environmental and social impacts of the irrigation and drainage rehabilitation component of the proposed project tngger this safeguard policy. Because the anticipated adverse impacts will not be significant or irreversible, however, and can be prevented or reduced through appropriate preventive actions or mitigation measures, the project is classified a Category "B" project and, as such, requires only partial assessment. This EA, with its EMMP ensuring that recommended preventive actions and mitigation measures will be taken, satisfies this Bank safeguard policy. Because the exact number and location of the specific rehabilitation sub-projects to be undertaken under the IDSMIP have yet to be deterrmned, the EA is limited to identifying generic impacts for infrastructure rehabilitation in the project areas identified and specifying generic prevention and mitigation measures for these impacts. However, the EMMP includes environmental screening and review procedures similar to those required for financial intermediary operations which will ensure that appropriate preventive actions and rmtigation measures are applied to specific sub- project sites on a case-by-case basis (see Section 6).

Operational Policies (OPs) are short, focused statements that follow from the World Bank's Articles of Agreement, the general conditions, and policies approved by the Board OPs establish the parameters for the conduct of operations; they also describe the circumstances under which exceptions to policy are admissible and spell out who authorises exceptions. 2 Bank Procedures (BPs) explain how Bank staff carry out the policies set out in the OPs They spell out the procedures and documentation required to ensure Bank-wide consistency and quality. 3Good Practices (GPs) contain advice and guidance on policy implementation, for example, the history of thc issue, the sectoral context, analytical framework, best practice examples 01/03/03

1.3.2 Projects on International Waterways (OP 7.50, BP 7.50, GP 7.50). The fact that the Samur, Kura, and Araz Rivers, which provide most of the water to the irrigation systems to be addressed in the proposed project, are international waterways triggers this safeguard policy. However, Azerbaijan is the lowermost riparian country on all these rivers, and thus the proposed rehabilitation works under the IDSMIP in the country of Azerbaijan would not adversely affect the quality or quantity of water flows to the upstream riparian states. Furthermore, as the project is currently designed (with no increases in water withdrawals from these intemational rivers), there would not be a significant impact on the quantity or quality of water flowing from these rivers to the Caspian Sea and thus no adverse effect on the rights of the other riparian states on that international waterway. Therefore, given the lower riparian position of Azerbaijan and the expected negligible impacts of the project on intemational waterways, the EA recommends that the Bank seek a waiver pursuant to paragraph 7(a) of OP 7.50 for this safeguard policy.

A similar analysis applies to the Autonomous Republic of Nakhchivan, for which Armenia is a lower nparian state on the Araz River. Water use in Armenia downstream of Nakhchivan is negligible, with only a few small farmns abstracting water from the Araz in the region. Moreover, the expected negligible impacts of the proposed rehabilitation works in the two raions in Nakhchivan under the IDSMIP would not significantly affect the quality and quantity of the water flows to Armenia. Therefore, the EA also recommends in this case that the Bank seek a waiver pursuant to paragraph 7(a) of OP 7.50 for this safeguard policy.

1.3.3 Safety of Dams (OP 4.37, BP 4.37). The dams and headworks on the Samur, Kura, and Araz Rivers, which provide most of the water to the irrigation systems to be addressed in the proposed project, trigger this safeguard policy; The EA, however, does not address this policy; the Bank's dam safety specialist will perform a dam safety assessment in March 2003 in order to address this safeguard policy.

1.3.4 Natural Habitats (OP 4.04, BP 4.04). The EA determined that the project does not trigger the natural habitats safeguard policy. Planned project activities will take place on lands already converted into agricultural use by previous, non-Bank-related actions. As currently planned, the project will finance principally small-scale on-farm rehabilitation works, will not construct new lmgation systems and will not induce increased water abstraction. To ensure this, the EA proposes that all sub-projects be submutted to environmental screening, the criteria for which will cover natural habitat conversion, new irrigation system construction, and increased water withdrawal. The project will thus not involve "significant conversion or degradation of natural habitats" as defined in OP 4.04. However, as some potential project sites are located close to sensitive natural habitats, limited impacts might occur. As required by the Bank policies, the EA describes the habitats concerned, identifies potential impacts, outlines appropriate preventive and mitigation measures and presents proposals for strengthening the capacity of national and local institutions for effective environmental planning and management.

1.3.5 Pest Management (OP 4.09, BP 4.09). The EA determined that the project does not trigger the pest management safeguard policy. The project will not procure any pesticides, nor will the project alone induce an increase in the use of pesticides. Current pesticide use levels in the project area are very low. This is due both to farmers' low economic returns, which prevent them from investing in agro-chemicals, and to the absence of senous insect problems. The recovery of the agricultural sector (increased agricultural productivity, re- mtroduction of high value crops), to which the project is expected to contribute, is likely to increase pesticide use in the longer term. However, a return to the high use levels of the Soviet penod is not foreseen, given that agro-chemicals are no longer subsidised by the State. Furthermore, any change in farmers' ability to invest in inputs is expected to be gradual and take place mainly after the completion of the project smce several other agricultural development

2 01/03/03 issues need to be addressed first to alleviate the financial constraints. The EA recommends measures, such as agricultural extension on integrated pest and production management, to decrease future pesticide demand and minimise the environmental impacts from pesticides. Similar measures have already been successfully initiated in the country under a World Bank Agricultural Development and Credit Project (ADCP), and a link should be established between the two projects. These measures are expected to prevent a significant increase in pesticide use.

1.4 Methodology

At the request of the Government of Azerbaijan, the World Bank asked the UN Food and Agriculture Organisation to field a team of international environmental experts to work with the RIDIP PIU environmental specialist and several national environmental experts to conduct the EA and prepare the EMMP. The EA team began work with a first rnission (1-14 June 2002) by the FAO environmental policy/legal analyst who reviewed the policy and legal framework for environmental management in Azerbaijan (see Annex A). A second EA mission (23 September - 4 October), comprising a multi-disciplinary FAO team, began gathering the baseline information for the EA, visited the various proposed project areas, viewed various imgation and drainage sites, and met with national and local officials, representatives of non-governmental organisations (NGOs), WUAs, farmers and other beneficiaries of the proposed project. The international EA team also contracted three local environmental experts to gather and analyse additional information for the EA in the areas of biodiversity and natural habitat, water and soil quality, and applicable legal and regulatory requirements. The baseline reports prepared by the local experts are.contained in Annexes A, B, and C. A third EA mission (2-13 December 2002) reviewed the work of the local experts, continued the information gathering for the EA, and reviewed the initial findings and recommendations of the draft EA/EMMP with the PrU and Bank preparation team. A fourth EA mission (1-21 February 2003) conducted public consultations with government officials, NGOs, and project beneficianes on the draft EA/EMIvIP (see 1.5 below) and gathered additional information for the final document. The final EA/EMIVP, incorporating the comments received from the local consultations, the PIU, and the World Bank, was completed in March 2003.

1.5 Consultation Process

The EA team began the process of consulting the relevant stakeholders and beneficiaries of the project during its three environmental screening missions: meeting with officials in the SAIC, the Ministry of Ecology and Natural Resources (MENR), the Ministry of Health (MoH), the Ministry of Agnculture (MoA), and other national institutions; with local SAIC officials and WUA officers and members in a number of the project area raions; with representatives of national environmental and social NGOs; and with farmers and other beneficiaries of the project in the field. The list of stakeholders met during the environmental screening process can be found in Annex D. The EA team continued and expanded the consultation process during its fourth mission with more formal, publicly announced meetings with stakeholders and beneficiaries on the findings and recommendations of the draft EA/EMMP in Baku and in Sabirabad. The Baku consultation included government officials from the SAIC, the MNR, the MoH, and the MoA, as well as representatives from a number of national NGOs. The regional consultation in Sabirabad included a large number of local SAIC officials, WUA members, and local NGOs from various project raions. The detailed minutes of these meetings and lists of participants are contained in Annex D.

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2. ENVIRONM[ENTAL POLICY, LEGAL & INSTITUTIIONAL FRAMEWORK

This section presents an overview of the policy, legal, and institutional framework for environmental management in Azerbaijan, particularly as it applies to the potential environmental and social impacts of the proposed project, and reviews the requirements and procedures for environmental assessment contained in Azerbaijani law.

2.1 Policy Context

Azerbaijan's national environmental policy has evolved over the years, beginning with the environmental policies of the former Soviet Union and, following independence, moving increasingly to a more nationally focused policy for Azerbaijan. Although there is no single statement of the national environmental policy as such, a number of national development policy documents articulate the country's policy. The most relevant of these in the proposed project context is the National Environmental Action Plan (NEAP) of 1998. The NEAP represents one of the most recent statements of national environmental policy and identification of the country's environmental priorities and intended actions. The Forward to the NEAP clearly states the Government's commitment to environmental reform (see Box 2. 1).

Box 2.1 Government of Azerbaijail's Commitment to Environmental Reform-

At this stage of the country's development the issue of natural resource management is of paramount importance for the nation. The disastrous environmental situation inherited from the former Soviet Union is affecting every aspect of the country's life and presenting a clear threat to the health and well-bemg of its population. The Govemnment of Azerbaijan is committed to improving environmental conditions in the country, and it has included the environment as one of the primary concerns of the reform agenda. Unfortunately, economic,_social, and institutional constraints inhibit the country's ability to address the problems promptly and effectively. In order to mobilise and focus-the scarce resources available, priontise existing problems, and solve the most urgent issues, there was a need to develop a national environmental action program. ... (Forward to NEAP, 1998)

Among the priorities identified by the NEAP are two of relevance to the proposed project: (i) deteriorating water quality, especially drinking water, both in rural and urban areas, causing an increase in water-borne diseases, and (ni) loss of fertile agricultural land from erosion, salinisation, pollution with heavy metals and chemicals, and deteriorating irrigation systems (see Box 2.2). The Government of Azerbaijan is committed to addressing the highest priorities identified by the NEAP and to incorporating the environmental recommendations made in the NEAP in sectoral policy and investment decisions in the agriculture, water supply and sanitation, and energy sectors.

Box 2.2 Key Environmental Problems and Action Priorities

Water Quality. Water resources are critical for the country's economy. Water resources are limited and losses during distribution are high - reaching 50 percent in agriculture, which accounts for 70 percent of total water usage.... Degradation of Agricultural Lands, Loss of Forestry and Biodiversity. About half of the country's land resources are being used for agriculture. Some 1.2 million ha is affected by high salinity; many soils are exhausted by years of poor agricultural practices and policies, and many areas are damaged by erosion. Loss of productive land in some locations is resulting in increased pressure on fragile lands and resources in other locations... (Executive Summary, NEAP, 1998)

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2.2 Legal/Regulatory Framework for Environmental Management/Assessment

Azerbaijan inherited its basic legal framework for environment, public health and safety management from the former Soviet Union, but the decade since independence has seen a burst of legislative activity in the environmental field. The new Constitution of the Azerbaijan Republic itself includes the right to a healthy environment among the fundamental rights it guarantees its citizens.

2.2.1 Constitution. Adopted in 1995, the Constitution of the newly independent Republic of Azerbaijan recognises the importance of environmental protection among the principal human and civil rights and freedoms it establishes for the people of Azerbaijan. Article 39 guarantees the people's right to live in a healthy environment, to acquire environmental information, and to secure compensation for environmental damage: Every Person shall have the rnght to live in healthy environment. Everybody shall have the nght to collect information on environmental situation and to get compensation for damage rendered to the health and property due to the violation of ecological rights. (Article 39) All subsequent environmental legislation is grounded in this constitutional right to the maintenance of environmental quality, to access to environmental information, and to environmental equity. 2.2.2 Legislation. Since its independence Azerbaijan has made important strides in enracting environmental legislation. Annex A presents an overview of the legal framework for enviironmental management. The last decade (especially the last five years) saw the adoption of a nurmber of significant environmental management and public health laws, which cover the full range from environmental protection to natural resources management to public health and safety. The most relevant among these for the proposed irrigation project are the Law on Environmental Protection (1999), the Water Code (1997), and the Law on Amelioration and Irrgation (1996). 2.2.2.1 Law on Environmental Protection, EIA Handbook. In recent years Azerbaijan has enacted an array of new environmental protection laws, including a new Law on Environmental Protection that specifies relevant environmental assessment requirements. As a rule, these laws require further legal acts, decrees, and regulations, to permit effective implementation of their provisions. In most cases some but not all of these decrees and regulations have been promulgated.

Law on Environmental Protection (1999). Azerbaijan modernised its basic environmental protection framework with adoption of the Law on Environmental Protection in 1999. The stated purpose of the law is to ensure protection of the ecological balance, prevent harmful impacts from econonmc and other activities, conserve biological diversity, and promote rational utilisation of natural resources. The law recognises the state's rights and responsibilities in the area of environmental protection, including setting national policy and strategic measures for its implementation, developing environmental norms and regulations, conducting environmental impact assessments, regulating the use of natural resources, monitoring environmental quality and natural resources, and establishing parks and protected areas. The law also identifies the rights and responsibilities of citizens, including living in an environment favourable to life and health, obtaining environmental inforrnation, receiving compensation for damage caused by environmental violations, using natural resources, participating in environmental decision-making, and bringing legal action for violation of environmental legislation.

Of particular interest in the context of the proposed project, the law authorises the establishment of environmental quality standards, discharge and emission limits to control the

5 01/03/03 range of environmental impacts. Irrigation drainage discharges to receiving waters resulting from the rehabilitation works of the proposed project will have to comply with applicable discharge limits and water quality standards (see applicable requirements in Annex A). Also, the law identifies specific environmental requirements concerning agricultural and irrigation activities (Article 42) with which the proposed project will have to comply (see environmental requirements in Annex A):

... agricultural and irrigation systems shall incorporate pollution control systems, health buffer zones, and environmentally sound technologies and meet specific environmental requirements. They must be equipped with effective waste treatment and management systems, utilise efficient fuels and natural resources in an economical and efficient way, and include environmental safeguards.... (Article 42, 1.)

Furthermore, the law sets out specific requirements with respect to official "environmental review" (Articles 50-58) for the purpose of complete assessment of the environmental impacts of "economic and other activities" undertaken in Azerbaijan. The infrastructure rehabilitation activities of the proposed project will have to comply with these review requirements:

Environmental review is defined as determination of the potential adverse impact of human econonmc activity on the environment and determination of the compliance of economic activity with environmental standards and requirements for prevention and forecasting purposes. ... (Article 50)

These provisions state the purpose and objectives of environmental review, including the suitability and quality of proposed environmental safeguards, and establish the basic principles on which such review is based, including comprehensive socio-environmental-economic assessment of impacts, the public's right to good environmental conditions for health and well-being, and preservation of the ecological balance and biological diversity for present and future generations. The MENR is responsible for conducting official environmental reviews. Officials and companies are held accountable under the law for complying with the decisions made in official environmental reviews.

As the pnmary environmental protection laKw goveming "economic and other activities" in Azerbaijan, the requirements of the Law on Environmental Protection apply to the irrigation and drainage rehabilitation works of the proposed project. Thus, it will be necessary to comply with any decrees and implementing regulations adopted for execution of the law's vanous provisions. Certainly the proposed project must comply with Article 42's environmental requirements for agricultural and imgation systems, as well as the environmental review requirements for the individual rehabilitation sub-projects financed by the project.

Handbook for the Environmental Impact Assessment Process in Azerbaijan (1996). Adopted in 1996 under authority of the Law on Environmental Protection of 1992, the EIA Handbook continues in force under the new Law on Environmental Protection. The Handbook establishes the Government's policies and procedures with respect to environmental assessment of "all development proposals, by the private as well as the public sector" that are likely to have environmental impacts. Specifically, the Handbook details (i) the EIA process, i.e., the sequence of events, roles and responsibilities of applicants and Government institutions, charges; (ii) the EIA document, i.e., its purpose and scope; (iii) public participation in the process; (iv) environmental impact review; and (v) the environmental review decision.

The requirements of the EIA Handbook apply to the types of infrastructure rehabilitation to be financed by the proposed project. Therefore, some form of individual, site-

6 01/03/03 specific environmental review may be required by the IENR for each of the rehabilitation and improvement sub-projects undertaken under the infrastructure rehabilitation component of the proposed project. Because this present EA is based on the general areas and not on the specific farms or sites where most of the infrastructure works will take place, it does not provide the sort of site-specific preventive actions or mitigation measures required by the EIA Handbook (or by the World Bank safeguard policy). For this reason, the EMMP contains an environmental screening and review process, designed to be consistent with the ETA Handbook, to ensure that appropnate site-specific actions and measures are identified as proposed sites are considered for rehabilitation over the life of the project.

2.2.2.2 Law on Amelioration and Irrigation, Water Code, Construction Norms and Rules for Reclamation Systems and Works.

Law on Amelioration and Irrigation (1996). The pnmary legal authonty governing the irrigation and drainage infrastructure rehabilitation activities contained in the proposed project is the Law on Amelioration and Irrigation of 1996, which establishes the legal framework for activities in the field of land amelioration and imgation. The law establishes the Government's institutional structure for management of the sector and defines its authonty to include, among other things, setting national policy for the sector; implementing the national legislation; planning ameliorative and irrigation measures; establishing standards, norms and rules; and registenng information on and monitoring irrigated and ameliorated lands.

To ensure compliance with appropriate standards and technical requirements, the law specifies Government review (including environmental review) of amelioration and imgation construction and rehabilitation projects:

State ecological examination in the field of amelioration and imgation shall be carried out in accordance with the legislation of Azerbaijan Republic on environment protection and environmental review. (Article 18) 1I-t Furthermore, the law expressly requires that all ameliorative and imgation measures comply with the requirements of environmental and natural resources legislation:

Ameliorative and irrigation measures should not result in deterioration of environment conditions. Ameliorative and irrigation measures shall be camed out following requirements of land, water, forest legislation of Azerbaijan Republic and the legislation of Azerbaijan Republic on environment protection, on land lots, on flora and fauna. (Article 22)

The law also specifies that the use of water in amelioration and imgation systems shall be governed by the water legislation (Water Code). It authorises water charges to encourage efficiency and reimburse Government expenditures for water supply. The proposed project will have to comply with all of the provisions of the Law on Amelioration and Irrigation, observing in particular the requirements of Articles 18 and 22 on environmental review and environmental legislation, including any regulations or decrees implementing these articles.

7 01/03/03 use and protection of water resources, promulgate the rules for use of water resources, perform monitoring of water bodies, and provide for economic regulation (fees for use) of water resources. The Code authonses "state ecological examination" (environmental assessment) of any projects for building and reconstruction of facilities affecting the condition of water resources. Further, it recognises different types of water resources uses, from agriculture to potable water to recreation and sport, and establishes the procedures for permitting these uses of water resources.

The Code describes the rights and obligations of water users and details the requirements for the use of water resources as: potable and service water sources; for health treatment, resort, recreation and sports purposes; for agricultural needs; for industrial and hydro- energetic purposes; for transport needs; for fishing and hunting; and for specially protected water resources. (However, the Code does not grant or define specific legal authonty for WUAs and thus may require amendment to facilitate the full institutional development of WUAs envisioned under the IDSMIP component.) Furthermore, the Code provides for the protection of water bodes from pollution, silting, and depletion, as well as for the establishment of water protective zones. For economic regulation of water use, the Code authorises the charging of fees for the use of water. Finally, the Code establishes liability for violating the water laws of the country and the right to compensation for damages caused by the violation of water legislation.

The requirements of the Water Code and its implementing regulations are directly applicable to water resources management activities in the irrigation and drainage sector. Therefore, the proposed project will have to ensure that its components comply with the water use and protection requirements of the Water Code. As noted above, the Code may have to be strengthened in order to provide authority for the development of effective WUAs.

Construction Norms and Rules for Reclamation Systems and Works (1986). Among the environmental protection regulations inherited from the former Soviet Union are a set of "Construction Norms and Rules" that apply to lands reclaimed for agricultural use. Dating from 1986, the rules specify fairly detailed measures to ensure that the design and construction of land reclamation and lmgation systems take into account environmental protection (e.g., reuse of waste and drainage waters, controls on discharge of water from reclamation systems, protection of the boundaries of preserves and wild life sanctuaries, conservation of flora and fauna). Further, the rules specifically address fish protection measures and mechanisms, forest shelterbelts, wildlife protection, anti-erosion works, and water protection requirements (see rules in Annex A). It must be determined if these norms and rules remain in effect in Azerbaijan and, if so, which are applicable to the irrigation rehabilitation works under the proposed project.

2.2.2.3 Other Applicable Environmental and Public Health Laws. In addition to the foregoing environmental and irrigation laws, Azerbaijan has a number of other environmental, public health and safety laws with requirements that potentially apply to the infrastructure rehabilitation activities of the proposed project. Specifically, the protected area and habitat requirements of the Law on Specially Protected Natural Areas and Objects (2000) and the Law on Wildlife (1999), as well as the public health requirements of the Law on Protection of Public Health (1997), will have to be considered in any project decisions with respect to specific rehabilitation sub-projects.

2.2.3 International Environmental Conventions. Azerbaijan is party to a number of international environmental conventions. Of most relevance to the proposed project are the Conventions on Biological Diversity (Rio de Janeiro) and on Wetlands of International Importance (Ramsar), both of which Azerbaijan ratified in 2000. In ratifying these conventions and their implementing resolutions, the Government of Azerbaijan committed to protecting its biodiversity and wetland resources and performng environmental assessments of projects that

8 01/03/03 may affect these resources. This EA examined carefully the potential impacts of the IDSMIP on biodiversity and wetlands. Lake Ag-gel, which is located near one of the project areas, is a protected wetland under the Ramsar convention.

2.3 Institutional Framework for Environmental Management and Assessment

Azerbaijan is in the process of re-organising its institutional framework for environmental management, having just combined a number of existing Government institutions into the new Ministry of Ecology and Natural Resources in 2001. An array of national institutes, agencies, and committees, as well as numerous regional and local institutions, share environmental management and monitonng responsibilities.

2.3.1 Ministry of Ecology and Natural Resources. Established by consolidating a number of national institutions dating from the Soviet period (i.e., the State Committee for Ecology, State Committee for Hydro-meteorology, Azerbaijan Fisheries Agency, Azerbaijan Forestry Agency, State Committee for Geology), the MENR has the pnmary responsibility for environmental management in Azerbaijan, including pollution prevention and control, natural resources conservation and management, and environmental impact assessment. In this role, the MENR implements and enforces the principal environmental laws of Azerbaijan (including the Laws on Environmental Protection, Specially Protected Natural Areas and Objects, and Wildlife mentioned above), setting national environmental policy, establishing environmental quality standards and emission limits, and managing a national network of protected natural areas.

The MENR maintains the state monitoring system for environment and natural resources, monitoring groundwater, soils, fauna, flora, mineral deposits, forestry and other resources. It is charged with ensunng proper oversight of soil salinity, swamping, and erosion prevention, as well as prevention of any other damage that may result from construction or excavation of munerals. It also manages an information system for environmental, hydro- meteorological and geological data. Through its Department of Environmental Expertise, the MENR administers the environmental impact assessment requirements of the EIA Handbook. As mentioned above, the ERA Handbook requirements apply to the irrigation infrastructure sub- projects to be financed by the IDSMIP; the fill extent of which remains to be determned with the MENR. The EMMP establishes an environmental screening and review process for these sub- projects to ensure that they comply with the MIENR's EIA Handbook requirements.

Based in Baku, the MENR works at the local level through the 30 district agencies it inherited from the State Committee for Ecology and co-ordinates its functions with other central government institutions (e.g., SAIC), local governments, municipalities and public funds. An extremely ambitious organisational structure has been proposed for the MENR (see Box 2.3), but it remains to be seen whether the new ministry can find the technical capacity, at both the national and district levels, to carry out its host of environmental management functions effectively. MI_

.-,r3ngel.- ( nx e,,,^te, n.r!mel1aagr.elaesponsibilW,es.themcii's reanisanlonal sirucrlurtoat i research'in4trurcIe gseture'tr. fiherdesk. h,drcmeteor.olbcicl31Tlhe 1ENR mainanl3s ralNionaL40ll M nnurin

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9 01/03/03

2.3.2 State Amelioration and Irrigation Committee. Established in 1993, the SAIC replaced the former Ministry of Amelioration and Water Resources, assuming its responsibilities for managing the country's land reclamation and imgation systems. Specifically, this includes setting national policy for the sector; implementing the national legislation; planning ameliorative and irrigation measures; establishing standards, norms and rules; and collecting information on and monitonng irrigated lands. With the country's 1.45 million ha equipped for irrigation under its control, the SAIC is of critical importance to the agriculture sector. The SAIC has primary responsibility for executing and enforcing the Law on Amelioration and Irrigation (1996), the Water Code (1997), and other related sector legislation. This includes the relevant environmental provisions described above requiring environmental review and compliance with the requirements of other enviromnental laws. SAIC's Department of Science, Design and Expertise is responsible for ensuring that appropriate environmental review and assessment are conducted on imgation system projects.

Headquartered m Baku, the SAIC has some 23,000 employees in the field in irngation and exploitation offices in each raion. These offices are actually responsible for delivering the irrigation water to the farmns, maintaining the irrigation and drainage canal system, operating the pumpmg stations, and collecting the water tariff from the WUAs or from individual farmers. Certainly aware of the environmental problems related to the irrigation sector, the local offices of SAIC have little capacity for dealing effectively with them.

2.3.3 Municipalities. Azerbaijan is in the process of strengthening local governance at the municipality level after a history of extremely weak local institutions. This history is reflected in the weakness of the traditional environmental services and infrastructure provided by the municipalities (e.g., water supply and sanitation, waste management). In most cases, municipal water supply and sanitation services do not meet the minimum needs of the local population, but the municipalities lack the resources to address this problem. Chronically underfunded, municipalities continue to rely on state budget transfers as their principal source of municipal revenue, followed by land and property taxes and rental and/or sale of municipal land. Under the current political framework and economic conditions this situation is unlikely to change in the near term.

The Government initiated a process of decentralisation to address the problem of deteriorating municipal infrastructure. With a new legal framework established and the transfer of assets arranged, local elections were held in 1999. Some 2,669 municipalities were created and given responsibility for managing local public infrastructure. This decentralisation process, however, has not produced the intended results. The chronrc lack of resources at the municipal level, the limited understanding of their responsibilities by municipal officials, and the partial transfer of assets to the municipalities have all left the state of municipal environmental services pretty poor. These problems are further exacerbated by the apparent absence of civic culture and community initiative and by the presence of pervasive corruption.

10 01/03/03

3. KEY NATURAL AND SOCIO-ECONOMIC PARAMETERS OF AZERBAIJAN

3.1 Natural Setting

Bold relief, recumng seismic activity and a multitude of active mud volcanoes, all imply that Azerbaijan is in the throes of powerful internal (tectonic) and external (denudation) natural agents. This section briefly presents the geological processes that have shaped Azerbaijan's salient geographic features, as well as its climatic diversity; soil types; distnbution, flow regimes and quality of surface water, and the occurrence and quality of its groundwater resources. To set the backdrop for the project's target areas, emphasis is placed on the Kura-Araz basin and the north-eastern foothills of the Greater Caucasus.

3.1.1 Geology and Geomorphology' 2 Azerbaijan is characterised by large elevation differences across rather short distances: only 70 kmn separate Mount Bazardyuzu, Azerbaijan's highest peak (4,466 m above msl) from its central plains to the south (elevation 0) or the Caspian Sea's shoreline to the north-east (27 m below msl). Mountains in excess of 2,500 m, while comprising only 3.5 percent of the total land area, play a crucial role in nounshing Azerbaijan's water resources.

Azerbaijan consists of four major physiographic units: (i) the Greater Caucasus Mountains to the north, crowned by the country's highest peak. Their south-eastern extension comprises the Apsheron Peninsula, a geologically active, low elevation (up to 350 m) protrusion into the Caspian Sea that divides it into a northern, relatively shallow basin, and a southern, deep basin. (ii) The Lesser Caucasus Mountains, with maximum elevation of 3,740m, and the (iii) Talysh Mountains to the south. These three mountain chains enclose (iv) the Kura-Araz Plain, the main intermontane lowlands of eastem Transcaucasia. A significant portion of this extensive lowland, or about 18 percent of the country's total area, lies below mean sea level.

The Kura-Araz Lowland is an element of the vast Aral-Caspian depression. It extends across 250 krn from Mingachevir Reservoir in the west to the Caspian Sea in the east, and some 150 km between the foothills of the Greater and Lesser Caucasus. Gradually opening up and gently sloping to the south-east, this flat alluvial plain drained is still being aggraded by the Kura- Araz Rivers and their tributaries. The Kura-Araz Lowland is divided from north to south into the Shirvan steppe on the right bank of the Kura, the Mil-Karabakh steppe between the Kura and the Araz, and the Mugan steppe, south of the Araz. The shallow, brackish Sarisu and Ag-Gel lakes occupy mild depressions, 'windows' to the shallow groundwater table.

The Caucasus Mountains and the intervening Kura-Araz depression were formned dunng the Alpine-Himalayan Mountain building episode. Starting in the Late Miocene Period, about five rmllion years ago, enormous compressive forces resulting from the colliSion of the Eurasian and the African and Indian continental plates formed a series of complex folds and reverse faults. Older (Jurassic and Cretaceous), gigantic rock slivers were thrust over younger (Pliocene) ones to form the uplifted Greater Caucasus ranges. Associated fault zones along the margins of the uplifted area and its extension into the Caspian, have since become the focus of (i) recent intense seismic activity (e.g. the November 2000 earthquake that damaged Baku's water treatment facilities). and (ii) neotectonic subsidence of the Apsheron Basin by several hundred meters.

' SCP ESIA, Azerbaijan, draft for disclosure, Geology and Soils Baseline Report, May 2002 2State of the Environment Azrbaijan, a joint UNEP/GTZ web site: http Hlwww .grida no/ennn/htmls/azer/soe/ecology/html/countryprofi le environmental_and geographical cha rastics.html 01/03/03

Dunng the peak of the orogenic activity in the Pliocene Period, the shoreline of the ancient Aral-Caspian Sea receded from the Kura-Araz depression, transforming it into a continental basin. This basin became a sink for massive terrigenous sedimentation fed by intense erosive denudation of the Caucasus Mountains. As a result, the Kura River Plain has since accumulated some 7 - 8.4 km of continental sediments. Inclined piedmont plains, consisting of fluvio-glacial deposits that have been dumped at the foot of the Caucasus ranges, separate the Kura and Araz River plains from the adjacent mountains. Deposits of similar nature comprise the north-eastern foothills of the Greater Caucasus, between the Quba-Qusar area and the Caspian Sea. The alluvial plain of the Kura is still accreting due to the high sediment loads of the fast- running rivers that drain the Caucasus Mountains. The intense erosion is driven by steep slopes, torrential rainstorms, seasonally concentrated snowmelt-generated river flows, flash floods, limited vegetation cover and fine, erodible soils. Consequently, the sediment loads of the rivers that drain the Greater Caucasus are among the highest of any rivers in the world.

3.1.2 Hydrogeology' The thick sequence of sediments that infills the Kura-Araz Lowland consist of three sediment ('facies') types. To the west and in proximity to the mountains, outwash/alluvial fan sediments domnnate that were eroded and fluvially transported from the Lesser- and Greater Caucasus Mountains. Thick layers of poorly sorted sands, gravels and cobbles are mter-layered with silty/clayey sediments. Transported by high-energy, steep nver flows fed by seasonal firn and snow thaws, these sediments (proluvial in Soviet terminology) were dumped as the streams entered the plains, and accumulated in a sequence of contiguous alluvial fans. Towards the Caspian Sea in the east, manne sediments of the predecessor Caspian-Aral Sea become predominant and recent Kura-River alluvial deposits overlie the two other facies types.

Towards the western end of the intermontane basin and along the foothills of the Greater- and Lesser Caucasus, the proluvial/alluvial fan sediments are dominated by coarse- grained components, forming interconnected aquifers of high hydraulic conductivity and good quality water. Further away from the Caucasus foothills towards the centre of the basin, coarse- grained sediments become subordinate to and intercalated with low permeability marine deposits of the extinct Caspian-Aral Sea. As a result, individual aquifer horizons undemeath much of the Kura-Araz Plains have low hydraulic conductivity and a limited degree of interconnectivity. The groundwater of these aquifers typically contains moderate to iigh amount of dissolved salts.

At the north-eastem foothills of the Greater Caucasus, alluvial fan deposits, consisting of coarse-grained, high-energy flow continental sediments, altemate with clay horizons, deposited under low-flow conditions, and with marine sediments deposited by the predecessor Aral-Caspian Sea. The proportion of fine-grained marine deposits increases towards the Caspian shoreline. The alternating low and high permeability rock units give rise to half a dozen aquifer horizons.

3.1.3 Climate Azerbaijan's climate is shaped by the country's remoteness from moderating oceanic influence, the extreme relief, and the disposition to the prevailing winds. The distribution of the various climate zones - semi-arid, dry subtropical, wet subtropical, temperate, and Alpine - is a function of the altitude and the proximity to the Caspian Sea. Dry subtropical to semi-arid, steppe climate characterises the Kura-Araz lowlands and the Apsheron Peninsula. Wet subtropical climate is restricted to the south Talysh Mountains and foothills and the adjacent Lankaran depression. Temperate climate belts of dry, warm-dry, warm-wet and cool zones dominate successively higher elevations of the Greater- and Lesser Caucasus Mountain slopes. Finally, Alpine and sub-Alpine conditions prevail at the high altitudes of the Greater- and Lesser Caucasus.

SCP ESIA, Azerbaijan, draft for disclosure, op. cit.

12 01/03/03

The average annual temperature across Azerbaijan varies between 14°C in the lowlands and 0°C and below in the highlands, a large range that is typical of continental climate. The average July temperatures are 25-27°C in the lowlands and 5°C in the highlands. Absolute maximum and minimum temperatures reach 430 C (Nakhchivan depression) and munus 30°C (in the highlands), respectively. The prevailing winds are northern (on the Apsheron peninsula), north-west/south-west (Kura-Araz lowlands), and western (Lankaran depression). Precipitation is characterised by large spatial, seasonal, and inter-annual variability. Average annual rainfall ranges from less than 200 mm at the southern coast of the Apsheron Peninsula, through 300-900 mm in the foothills and lower mountainous zones, 1000-1300 mm on the southern slope of the Greater Caucasus, and up to 1200-1600 mm in Lankaran and Talysh'.

The climate of Azerbaijan's cultivated lowlands and foothills is classified as Middle Latitude Steppe to Semi-Arid, with at least one month below freezing average temperatures (BSk)2. Large annual sun radiation balance of between 2100 - 2300 MJ/m2, and a great excess of potential evapotranspiration (PE) over precipitation make Irrigation an imperative for reliable crop production. The only agriculture possible without irrigation is low intensity livestock production on natural pasture severely limited by low rainfall.

Table 3.1 presents average annual climate parameters, representing the Kura-Araz Plains (Imnishli), the foothills of the Greater Caucasus (Khachmaz), and the Araz lowlands of the Lesser Caucasus (Nakhchivan). Companng the meteorological data of the north-eastern foothills of the Greater Caucasus (Khachmaz 3; about 75 m above mean sea level) with that of the Mill Mugan Plains above the confluence of the Kura and Araz Rivers (Imishli; elevation: Sm below msl), suggests the following. Both areas are characterised as semi-steppe, but in the Khachmaz area the hot season temperatures are slightly cooler, and winter temperatures - slightly colder than in the Imishli area. The Imishli area is characterised by hot, dry summers and mild, sub-humid winters, with a longer growing season. The humidity in the Khachmaz area is higher as a result of its proximity to the Caspian Sea, as are wind velocities. Annual precipitation values are rather sirmlar in both areas; however, in Khachmaz, about 40 percent of the mean annual total occurs during the growing season (spring and summer) and a maximum - in the fall, while in Irmshli, slightly over half of the rainfall occurs in the main growing season between April and October. Finally, the average annual PE in Irmshli is about 30 percent higher than in Khachmaz. During the main growing season, the PE in Imishli on average will exceed effective rainfall by a factor of five or more4.4

Azerbaijan's physiographic and climatologic diversity gives rise to nine different agro-climatic zones. The availability of several significant size rivers offers the potential for highly diversified irrigated agriculture. Representative agro-climatic zones include, amnong others, the (X)humid sub-tropical zone along the southern coastal plain of the Caspian, with paddy nce and tea plantations. (ii) Hot and dry Kura-Araz Plains where cereals (wheat and barely), cotton, fodder (alfalfa and maze), water melons and pomegranates are prevalent, and livestock benefits from lush grazing grounds; and (iii) the sub-humid, chilly Caucasus foothills, where fruit orchards (apples, pears, quince, peaches, cherries), vineyards, and walnuts prevail. In addition, vegetables, high

Social-Ecological Center "EcoSphere" (Azerbaijan) and the Association of Environmental Protection of Georgia "The Earth in XXI century" Azerbaijan-Georgia Regional Ecological Portal http-//ecocaUcasus org/en/2lav htm 2 Modified Koppen classification 3 Based on measurements between 1988-1997, EA and monitoring, Annex A.7, op. cit 4Caspian Environmental Program, Caspian Regional Thematic Centre (CRTC) for Integrated Transboundary Coastal Area Management and Planning httpiy//wwvA.caspianclcvironment oreL,itcamrrpazeri.htm, and PCD, March 2002

13 01/03/03 value-added crop, are cultivated wherever there is an access to a steady supply of good-quality irrigation water.

Table 3.1 Average Annual Climate Parameters, Three Representative Weather Stations

Parameter\District Imishli Khachmaz Nakhchivani Temp., Average, Co 15.2 12.6 9.2- 14.2 Temp. July, Average, Co 27.2 24.6 22.1 - 28.6 Temp. January, Average, 3.6 -2.2 1.3 - 6.2 Co Temp., Maximum, Co 42 42 N/D Temp., Minimum, Co -26 -28 N/D # Frost-free days 240-260 210-230 N/D Precipitation, mm 287* 300 210 - 308** Annual relative humidity, 73-76 82-86 N/D winter, % Annual relative humidity, 56-58 65-75 N/D summer, % Annual average wind 1.4 2.3 N/D velocity, m/s Average annual PE, mm 1000 708 1142 - 1536 * A recent ten-year average shows a range from 186-354 mm. ** Lowlands; high mountains average 660mm. N/D - No data.

Nakhchivan's lowlands (800 - 900 m msl) have seasonal temperatures that are similar to those of Imishli, but slightly lower annual precipitation and higher PE. Most precipitation falls between March-May, and summer is the driest season. Evaporation on average exceeds precipitation by 3.5 to 5.5 times, but in July this ratio rises to 6 - 24. As a result of this extreme water imbalance, Nakhchivan's agriculture is dependent on irrigation even more than the other semi-steppe areas of the mainland.

3.1.4 Soils 2 The distribution of Azerbaijan's soils is congruent with its topographic and climate zoning. Grey-brown saline and chestnut-coloured soils predominate in the semi-desert areas of the Apsheron peninsula and Gobustan. Greyish-meadow, greyish saline, and saline soils prevail in the flat and poorly drained semi-desert belt of the Shollar and Kura lowlands. Mountain-woody greyish-brown and brown soils prevail in the semi-steppe (woody-steppe) belt in the northeastern foothills of the Greater Caucasus and Talysh Mountains. Finally, the sub- alpine to alpine belt of the high elevations of the Caucasus Mountains typically contains mountain-meadow (turf and peat) and skeletal, stony soils. For a detailed discussion of soil properties in six raions selected for project implementation see Annex C.

3.1.5 Surface and Subsurface Water Azerbaijan, a former Soviet Union (FSU) country, still employs water resources computation practices that go back to the Soviet era. These practices, listed below, have important bearing on the degree of confidence that can be placed in the water resources data3. (1) Due to the large and protracted withdrawals, the assessment of surface water runoff is made difficult by the absence of chronological senes of natural flow

l Information on Natural Farming Conditions in Nakhchivan Autonomous Republic, February 2003. Report preapared by Dr. Mammed Assadov, Head of SAIC's Department of Science, Design and Expertise. 2 Caspian CRTC, op cit 3 Imgation in the Countries of the Former Soviet Union in Figures, Food and Agriculture Organisation of the United Nations, Rome, 1997

14 01/03/03

measurements. Indeed, most of the available flow data relate to measurement of actual runoff rather than natural flow. (ii) Runoff data are frequently conflicting, a reflection of (1) inconsistent measurement points along a watercourse that are either upstream or downstream from other measurement points that are separated by intervening tributary inflow and/or canal abstractions, and (2) large natural inter-annual variability of runoff, typical of arid to semi-and regions. (iii) In semi-and areas such as Azerbaijan's, complex interrelation between surface water and groundwater makes it difficult to assess the extent of their overlap. (iv) In the computation of groundwater, a distinction is usually made between groundwater resources (the average annual recharge of the aquifers), and extractable groundwater (computed on the basis of aquifer productivity and a theoretical network of wells). Subject to the cited practices, most of the references on groundwater rely on an estimate of extractable groundwater, which is usually less than groundwater resources.

Finally, data reliability is hampered by two additional factors': (v) there is a limited database pertaining to the post-Soviet period, because the hydrometric network in Azerbaijan was severely curtailed after 1991/92. Consequently, the older data would not reflect, among others, any subsequent climate variations, basin land-use changes, channel geometry shifts, and local river channel interference (e.g., nverbed pebble mining). (vi) Little information is available on hydrological and monitonng techniques adopted such as sampling conditions, constraints, timing and frequency, analytical methods, precision limits and data collection problems. (vii) The limited amount of data collected is not assessed, laboratory equipment is not calibrated, neither quality assurance nor quality control is carned out and there is no reporting. The fact that the data are not converted into forms that would be helpful for managers and decision-makers results in inadequate government support for monitonng. This, in turn, adversely impacts the average age of the laboratory equipment 2. As a result, some data may be of questionable value, and data inconsistencies are quite common.

Surface Water. Azerbaijan's water resources are unevenly distributed, both spatially and temporally, with only about 29 percent of the total surface resources originating in Azerbaijan. The average annual amount of surface flow is about 33.1 billion n3,3 but in extremely arid years it may dirmnish down to 20.7 billion m3 .4 Both the large inter-annual and intra-annual fluctuations have necessitated the construction of large storage reservoirs.

Azerbaijan's rivers can be divided into three groups:

* Rivers of western and central Azerbaijan: the Kura River with its main tnbutaries: Araz, Alazani and Iori; * Rivers of northeastern Azerbaijan, flowing from the Greater Caucasus directly into the Middle Caspian Sea: primarily the Samur, Qusarchay, Quruchay, Qudyalchay, Agchay, Qarachay, Chagachuqchay, and Velvelichay. * Rivers of southeastern Azerbaijan, flowing from the Talysh Mountains directly into the South Caspian Sea (these will not be further discussed).

Section 1 4, SCP ESIA, Draft for Disclosure, op cit. 2 Joint River Management Programme on Monitoring and Assessment of Water Quality on Transboundary Rivers Kura Basin Report. http //ww iointnavers org/en,iedocs/iniception/lkura/main/php 3 As suggested above, different flow figures are frequently quoted for the flow parameters discussed here and further along in this Section, e.g, Annex C cites 32 billion m3 and 23 billion m3, respectively. State of the Environment Azerbaijan, a joint UNEP/GTZ web site: htt //www Lrida no/enirin/htmls/azer/soe/ccology/htnil/counttYprofi lc environncnltal and acoeranhical cha rastics hitmlnand PCD, March 2002.

15 01/03/03

The Kura-Araz Rivers. With a total length of more than 1,500 km and a catchment basin of over 188,000 km2, the Kura is the largest waterway in Transcaucasia. The Kura onginates in Turkey, at an elevation of 2,741m above msl, and flows through Georgia before crossing into Azerbaijan. Average flow volume figures are inconsistent, apparently representing averages of measurements across different time sequences. According to one source, the average flow below its confluence with the Araz is 908 m3/s (26.8 billion m3 annually), or over 90% of Azerbaijan's total average surface-flow (see hydrograph in Table 3.2). According to data spanning measurements that go back to the early 20'b Century (Annex C), the average annual flow near the Mingachevir Reservoir is 401 m3/s. In that area, the highest and lowest flows of the Kura were reported as 2,420 m3/s and 61 m3/s, respectively. Average annual flow of the Kura near Sabirabad, just below its confluence with the Araz, is 590 m3/s. The Kura's annual flow is the highest in the spring (59-69% of the total), with lower and sub-equal flows in the summer (10-14%), fall (12- 16%) and winter (9-15%). This flow regime reflects the predominance of snow melt water from the Greater- and Lesser Caucasus.

Table 3.2. Monthly Hydrographs of Azerbaijan's Main Rivers, in m3/sec' River\Month I II III IV V VI VII VIII IX X XI XII Average Samur 21.9 20.4 23.5 52 117 167 135 79.9 59.9 48.7 35.9 27.2 65.7 Kura, above* 417 432 280 310 332 396 321 279 281 279 198 383 325.7 Kura, below** 570 578 572 700 794 663 402 341 378 329 431 523 523.4 Araz 119 144 172 253 299 235 87 67 84.3 61.5 86.1 102 142.5 Notes: * Above confluence with Araz ** Below confluence with Araz

The Kura's average suspended sediment concentrations (SSC) and sediment loads (SSL) are high, comparable to those of other glacial/snowmelt-fed rivers. Mean annual SSC values for the Great Caucasus rivers are ten times those of the Lesser Caucasus systems, the highest being for Girdemanchay River (0.52 g/l) and Geokchay River (0.48 g/l), two of the Kura's left bank tnbutaries. Suspended sediment transport is highly seasonal, with peak fluxes m the high-flow period between March and June. In its mid-course, a cascade of two regulating dams and associated reservoirs - the Shamhkir and Mingachevir, causes the River to dump much of its annual 26-28 million ton of suspended alluvial load. Consequently, the capacity of the Mingechevir Reservoir that removes approximately 70% of the sediment discharge from the Kura River has diminished from an original 16 km3 (when built in 1953), to 14.5 km3 in 1982.

The total ionic content of the Kura waters shows considerable seasonal vanability. Two mid-summer measurements of total dissolved matter2 , yielded between 0.85 and 0.95 g/l, rendering the water slightly brackish but still suitable for irrigation of most crops. A senes of early winter (mid-November, 1998) measurements yielded better water quality values, possibly due to dilution by seasonal runoff spike. The total dissolved matter ranged between 0.45 - 0.48 g/l at three measurement points between the town of Yevlakh and Sabirabad, and between 0.51 - 0.56 g/l - at four measurement points below the confluence with the Araz and down to Naftacala, close to the Kura's discharge into the Caspian Sea. A sequence of measurements downstream at Salyan demonstrates a persistent increase in ionic content, from 0.42 g/l in the late 1940s, up to 1.26 gil in the late 1980s3. This apparently represents a cumulative trend of mineralised, irrigation return flows discharged into the Kura along its course.

I Samur at , 1947-1992 average, Araz at Saatli, 1971-1980 average; Kura above confluence at Mollaken, 1955- 1979 average; Kura below confluence at Surra (NE of Sabirabad), 1953-1980 average

2 Water analyses results of field trip, 26-27 July, 1999; Annex A25, EA and Monitoring in the Project Areas of the SAC and MMMC Drain, Final Report, CES, Consulting Engineers Salzgitter GmbH, 3/2000 3Table 3.3, Annex C

16 01/03/03

The 1,072 km - long Araz River is the second largest waterway. Flow data are again inconsistent: one source cites an average flow of 138 m3/s at Saatli (or 4.35 m3 billion/year)' (see hydrograph in Table 3.2), while another cites 290 m3/s not far downstream near Sabirabad, close to its confluence with the Kura2. This southern tributary of the Kura, with a catchment area of about 102,000km 2, originates at an elevation of 2,600m on the slopes of the Bingel-Dag ridges in Turkey. Along most of its route the Araz marks the international boundary between Azerbaijan and Armenia on the north and Turkey and Iran to the south. The Araz is one of the most turbid rivers in the world: on average it carres 2.5 g/l of suspended particles, or an annual total of about 18 million tons. Its and watershed and outcrops of soluble rocks contribute to a high level of dissolved salts: mineral contents values of 0.87 and 1.57 g/l were recorded in November 2001in the Fizuli raion several tens of kilometres upstream from the Brahmtepe and in Sabirabad, respectively 3.

The Samur. Oudvalchay and Velvelichay Rivers. These nvers supply the Samur- Apsheron Canal (SAC). Five additional nvers, all discharging ultimately into the Caspian Sea, cross that portion of the SAC that is slated for restoration under the RIDIP (See Table 3.3). Draining the northeastern slopes of the Greater Caucasus, they all share a common hydrological regime. Durng the spring and early summer, glacial, firn and snow melt at their high catchment areas feed peak flow that provides about 40 percent of the total annual recharge. Surface runoff, with maxima during spring and fall, contribute about 20 percent of the total recharge, and the remaining 40 percent is groundwater recharge base flow, of particular importance in the coastal area. The average annual flow of the Samur River (catchment area of 5,000 km2) are, according to different sources4, 1.4 or 2.07 billion m3 , and that of the seven other rivers combined -- about 657 mllion m3 (see hydrograph, Table 3.4).

Table 3.3. Long-Term Average Monthly Natural Runoff of Rivers on the Northeast Slope of the Greater Caucasus (m3/s) at Calculation Points (CP) (1961-1992)5

Samur - 22.2 20.3 23.8 51.2 115. 163. 133. 77.2 56.4 47.3 35.7 27.0 64.4 7 1 2 Qusarchay 1.8 1.8 2.0 3.6 6.9 11.2 11.7 7.3 4.8 3.4 2.5 2.0 4.9 Quruchay 0.4 0.4 0.7 1.4 1.7 1.5 0.9 0.7 0.8 0.7 0.6 0.5 0.9 udyalchay 4 2.8 2.8 3.4 6.4 11.8 16.0 11.6 7.6 6.0 5.6 4.6 3.4 6.8 Agchay5 0.6 0.7 1.7 2.8 2.3 2.1 1.0 0.8 1.3 1.4 1.1 0.7 1.4 Qarachay 6 1.0 1.0 1.2 2.1 4.0 6.0 4.4 2.4 2.3 1.9 1.5 1.2 2.4 Chagachuqcha 0.5 0.5 1.3 2.5 2.8 1.9 0.8 0.4 0.6 0.8 0.8 0.6 1.1

Velveltchayt 1.5 1.6 3.1 7.1 10.0 8.3 5.1 3.3 3.1 3.1 2.5 1.9 4.2 Calculation Points: 1- u/s Weir CP1; 2 - CP3; 3 - CP4; 4 - CP5/6; 5 - CP7; 6 - CP8; 7 - CP-9; 8 - CP 11.

I Average for 1971-1980. Table 20, Quality of Surface Water and Efficiency of Water Safety Activities in the Jurisdiction of the Azerbaijan State Committee of Hydrometeorology in 1987, Soviet Union Committee for Hydrometeorology and Environmental Control, Central Hydrochemical Laboratory of SAIC, Baku, 1988 2 See Section 3, Annex C. 3Table 3 5, Annex C 4Annex C, and Quality of Surface Water and Efficiency of Water Safety Activities, op cit, 1987, respectively. S Table 2 3, EA and Monitoring, op.cit For detailed information, see RIIDA 11 Feasibility Study, Annexes 1.1 - 18

17 01/03/03

All the area's rivers transport periodically heavy sediment loads. At the headworks of the Samur River, the sediment load increases from 0.37 g/l in March to 5.4 g/l in July, then decreases to 1.6 g/l in October. The total annual suspended load is ranges between 2.6 and 3.6- million m3 . In the absence of functioning desilting installations on the SAC system, much of the silt settles in the Jeiranbatan Reservoir, Baku's primary water storage, decreasing its live storage by 1% annually'. The low total ionic contents of these rivers, between 0.170 and 0.504 g/l, make them suitable for use as a potable water source as well as for irrigation of all crops.

The hydrograph presented in Figure 3.1 clearly shows that the peak flow of the Araz is about one month earlier (May) than that of the Kura and Samur (June). This probably reflects an earlier seasonal snowmelt on the Lesser Caucasus Mountains, compared to a later snow and fim melt on the higher-elevation Greater Caucasus Mountains. The phased peak flow regime of the Kura-Araz serves to extend the temporal availability of irrigation water in the eastem lowlands, below the confluence of the Kura and Araz Rivers. The prominence of the peak flow 'blip' is remarkable, considering that the storage and regulating reservoirs on the Kura and Araz Rivers exercise a moderating effect on the amplitude of the peak flow maxima.

RIDIP 11 Feasibility Study, op. cit., sections 3.1.4 and 3 2 2.7

18 01/03/03

Figure 3.1. Monthly Hydrographs of the Samur and Araz Rivers, and of the Kura River, Above and Below its Confluence with the Araz River'

Hydrograph, Main Rivers

900 -

_ ~ ~ ~ ~ _ - £.__- _,_

8000

700

600 -Samur -

-Kura, 500- . - -. _ above E : ~--Kura, .. -- . . - - . - 30 400 -- - below

}'l -'-";;';'-'----4"\ - = ' ^ t _A -s raz 300 -

200

100 -

I II III IV V VI VIIViIlD( X xiXII Month

The small differences reported in Tables 3.2 and 3.3 for the monthly flow volumes for the Samur are typical of data consistency issues discussed in the introduction to Section 3.1.5. These two sets of data represent average flow values of measurements across different time sequences (between 1961-1992 in Table 3.3, and between 1947-1992 - in Table 3.2).

Groundwater. The amount of Azerbaij an's annual total rechargeable groundwater resources is uncertain. According to one reference, it is estimated at 4.41 billion in3, wilth 3.8 billion m 3 accessible and 1.15 billion m 3 currently abstracted for irrigation and water suppl/Y.

Table 20, Quality of Surface Water and Efficiency of Water Safety Activities in 1987, op cit. State Committee for Hydrometeorology estimates, in Republic of Azerbaijan, Assessment of Drought Damage and Prionty Needs for Assistance, FAO Mission Report, January 2001

19 01/03/03

Another reference cites 6.51 billion m3, 4.35 billion m3 of which are commnon to surface water (i.e., they comprise the base flow of rivers).'

3.1.6. Ecology. Azerbaijan forms part of the Caucasus Ecoregion that also covers parts of Georgia, Armenia, Russia, Iran and Turkey. Thanks to its high biodiversity, the region has been selected as one of the WWF Global 2000 Ecoregions, as well as one of the top 25 biodiversity hot spots in the world. The nch biodiversity is related to the vanety of Caucasian ecosystems as well as to its location at a biological crossroads. Sharp changes in climate and elevation across short distances in the Caucasus area have resulted in a wide array of ecosystems over a relatively small area. These mclude forest, high mountain, dry mountain shrubland, steppe (grassland), semi-desert and wetland ecosystems. These ecosystems are inhabited by species from Central and Northern Europe, Central Asia, and the Middle East and North Afnca. Moreover, the level of endenmsm is higher than anywhere else in the Temperate Zone of the Northern Hemisphere.

Over 6,300 plant species are found in the Caucasus Region, of which 1,600 are endemic, including 17 endemic genera. The Hyrcanic region, including the south-eastern corner of Azerbaijan, is particularly famous for its wealth of species. As to animal diversity, the convergence of Euro-Siberian, Mediterranean and Central Asian zoogeographic zones results in high variety of mammals: 152 species, of which 32 are endemic, including both newly evolved and relict species. Bird diversity is moderate with 389 species. The region contains a significant number of breeding raptor populations, and forms an important migration comdor for millions of birds. A high reptile (76 species, of which 21 are endemic) and fish diversity (over 200 species, of which 73 are endemic) complete the picture. Finally, the country possesses nch agricultural biodiversity both in terms of number of crop species and intraspecific variability as well as in terms of wild relatives of crop species.

The Caspian Sea has high levels of biodiversity, resulting from its long period of isolation, large spatial vanations in water temperature and salinity, and the Caspian geography, which has created a wide array of habitats. Overall, there are over 400 endemic species and 115 species of fish in the sea. The ecologically and commercially most important fish is the sturgeon of which six species can be found in the Caspian, representing 90% of the world population. The Caspian seal is one of two freshwater seals in the world. The Caspian lies on the path of several major bird migration routes, and its coastal wetlands provide resting, feeding and breeding grounds for bird species such as grebes, cormorants, herons and ibises.

Main Ecoregions in Azerbaiian. (See map 2) The largest part of the country is covered by the "Azerbaijan shrub desert and steppe" ecoregion, of which 70 percent is in Azerbaijan with the rest in Georgia and Iran. This ecoregion is bordered in northern and south- western Azerbaijan by Caucasus mixed forests and, in the south-eastern part of the country, by Caucasus-Anatolian-Hyrcanian temperate forests. The Autonomous Republic of Nakhchivan forms part of the Eastern Anatolian montane steppe.

In the Azerbaiian shrub desert and steppe ecoregion, three primary zonal landscape types (ecosystems) and two intra-zonal types can be found: (i) desert and semi-desert; (ii) arid open woodland; (iii) steppe; (iv) flood plain (riparian) forests; and (v) wetlands.

FAO's Water Report 15: httqp.iiNNw.fao org/docretp/w6240e,w6240eO7 ht7n

20 01/03/03

The main types of desert communities in the ecoregion are: wormwood' deserts with ephemeroids; saltwort deserts (Salsola nodulosa, S. ericoides, S. denroides); and halophytic wormwood deserts with therophytes. Woodlands, located on foothills and slopes of low

' See Annex B for Latin names.

21 RUSSIAN GEORGIA FEDERATION

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.:akqk4 F A$|\ " q ;, aS ] v I Im AzerbaUjan shrub desert and steppe Caspian 1-lyrcanian mixed forest Eastem Anatolian montane \ \ \_ o\x} / t \ step,pe \_ - ~ , ---- i+- - - [' Caucasusf x nuxed orests

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i s7~~~~Capital of AutonornoLus ISLAMIC REPUB1LIC OF 0 CpRepLouoic IRAN - 0 0 2, 10 40 50 00K 4

Map 2. Ecoregions in Azerbaijan mountains, are characterised by Juniper and Pistachio species, with Spiny, Wild jasmine, berbens iberica, etc. as major understory shrubs. On the relatively tall forb grasslands of the steppe, the dominant vegetation is yellow bluestem, complemented by feather grass species typical of Ukraine and Central Asian steppes. The relic long-thorned oak, as well as black and grey poplar dominate the rapidly disappeanng flood plain forests. On wetlands, the flora varies from aquatic vegetation in lakes to reed, cane and cattails species on swampy floodplain ecosystems that surround them.

The diversity and endemism of fauna in the ecoregion is remarkable. It represents species typical to arid ecosystems such as striped hyena, Persian gazelle, and Caucasian hamster, as well as large mammals, e.g., lynx, wild boar, brown bear, grey wolf, European wild cat and roe deer. Reptile diversity is represented by spur-thighed tortoise, blunt-nosed viper, Western boa, Dahl's whip snake, etc. As for birds, partridge, griffon, black vulture, white-tailed eagle and black stork are typical to the region in addition to important populations of southem European waterfowl.

In total, the shrub desert and steppe ecoregion covers some 45,000 square kilometres, about half of Azerbaijani territory. Overall, the status of the ecoregion is cntical: more than half of it has been converted to farmland while the remaining areas suffer heavily from overgrazing, uncontrolled logging, pollution from agriculture and oil extraction, and poaching. Flood plain forests and arid woodlands occupy only 5-7 percent of their original area. Around 60 animal species are considered by World Conservation Union (ITUCN) as endangered, and 140 plant and II animal species are listed in the Red Book of Azerbaijan.

Several protected areas have been established in the ecoregion since 1961. The most important of these is the Shirvan Nature Reserve which protects the only viable - and world's largest - population of Persian gazelles in the Ecoregion (some 3,500 individuals). Other protected areas in the ecoregion include, among others, the Turyan Chay area north of the Kura River, and the Lake Ag-Gel (see Section 4.3.2), which has been designated a Ramsar site. However, the current protected areas are too small and fragmented to guarantee long-term biodiversity conservation. Buffer zones are virtually non-existent and the economic crisis of the last ten years has created strong pressures on natural resources, resulting in hunting, fishing, illegal forest cutting, grazing and even oil extraction within protected areas. Many of the reserves are understaffed, and their employees underpaid and under-equipped to ensure effective protection. Adequate facilities and management plans are also lacking. Finally, the current reserves system does not entirely represent the full range of biodiversity within the region. Whereas efforts are currently underway to improve protected area management, create an eco-network to link areas, and establish new protected zones, results have so far been modest.

The ecoregion of Caspian Hyrcanian mixed forests covers an area of 55.100 square kilometres from southern Azerbaijan into northern Iran. These temperate broadleaf and mixed forests benefit from the abundant rainfall and snowmelt that runs off the Elburtz and Talysh Mountains. The lowlands of the ecoregion have been covered by alder forests but are now almost totally under agricultural and urban use. On the lower mountains, characteristic vegetation consists of humid oak forests rich in endemic, relic and range-restricted plant species, for instance chestnut-leafed oak and Persian parrotia with shrubs/semi-shrubs such as Alexandnan laurel and lianas like greenbriar. The middle mountains are covered by onental beech forests whereas the vegetation on the upper mountains ranges from steppes, zeric dwarf semi-shrubs and oriental oak to alpine meadows. Agrobiodiversity in the region is remarkable with numerous endemic cultivated taxa. 01/03/03

The diversity of the avifauna is very high, including both migratory and breedmg species. Some examples are the greylag goose, white-fronted goose, glossy ibis, peregnne falcon, little bustard and squacco heron. Large mammals which inhabit the region are critically endangered leopard, lynx, brown bear, wild boar, wolf, jackal, reed cat, badger and otter.

In the lowlands, the natural landscape of the ecoregion has been largely destroyed through conversion into agncultural lands. Unsustainable logging and poaching also constitute significant threats to the ecosystems. Protected areas in Azerbaijani territory include the Gizil- Agach nature reserve (with two Ramsar sites, Kirov Bays and Gizil-Agach), designed to protect waterfowl, the Zuvand conservation area - a mountainous area habitat to game birds, bear, leopard and rare reptiles - and the Girkan nature reserve, aiming at protectmg the unique plant communities of the humid thermophilous Hyrcanian forests. However, the protected areas of the ecoregion suffer from the same constraints as those of the Azerbaijan shrub desert and steppe described above.

The ecoregion of Caucasus mixed forests extends over 170,300 square kilometres in Azerbaijan, Georgia, Russia, Armenia and Turkey. It consists mainly of temperate rnixed forests located in the mid-zone of mountains, and is the most important refuge and relict area of the arctotertiary forests in Western Eurasia. The forests are predominantly broad-leaved with Georgian oak, hombeam, sweet chestnut, oriental beech and oriental oak as the main species. Coniferous forests are composed of fir, spruce, and Caucasian pine. Grassland ecosystems from forest lme to snow cover consist of tall herbaceous vegetation of grass and forbs and, higher in the mountains, of sub-alpine and alpine meadows with thickets of Caucasian rhododendron.

Fauna richness and endemism is high in the ecoregion. Characteristic mammals include the East and West Caucasian turs, chamois, Caucasian red deer, wild goat, mouflon, brown bear, wolf, lynx, otter, and critically endangered Caucasian leopard. As to avifauna, it includes endangered species such as golden eagle and lammergeier, restricted species such as the Caucasian black grouse and Caucasian snowcock. Restncted range endemic species such as Caucasian salamander, Caucasian viper and Caucasian parsley frog form also part of the reptiles and amphibians fauna.

Most lowland forests have been converted into human use, mainly into agricultural lands. Approximately one third of mountain forests remain in a natural state but are potentially threatened by overgrazing, local firewood demand, illegal cutting, and efforts to develop commercial logging as well as overexploitation/poaching of game and economically valuable species. In Azerbaijani territory, the principal Protected Area at present is the Zakatal Reserve. The plans to establish a national park in the Shah Dag area would considerably enlarge the area under legal protection.

The ecoregion of Eastern Anatolian montane steppe covers an area of 64,900 square kilometers in Iran, Turkey, Armenia and Azerbaijan. The location of the ecoregion at the junction of three biogeographic zones (Lesser Caucasus, Iranian and Mediterranean), its great range of altitudinal variation and a diversity of climatic zones have created a diversity of landscapes and ecological communities with distinct flora and fauna, including many regionally endemic, relict and rare species. The ecoregion is also a particularly important centre of endemism for wild relatives of crop and livestock species (e.g. almonds, hawthorns and pears).

Montane steppes cover the largest part of the ecoregion. They typically have high vegetation cover and a rich flora, consisting of artemisia (Artemisia austriaca, A. fragrans), mulk- vetch, prickly thrift, and sainfoin species as well as grarninoids such as feather grass, fescue, bulbous meadow grass and kochia. In deserts, vegetation is mostly composed of xerophytic and

2 01/03/03 turf-forming plant species, whereas in semi-deserts, ephemeral plants, such as caper bush dominate. Juniper-almond steppe woodlands have a sparse canopy but a strong shrub layer with pistachio, barberry and rose species and a herb layer dominated by milk-vetch or artemisia. The high mountains and woodland patches provide habitat for many mammals such as brown bear, grey wolf, striped hyena, wild goat, and marbled polecat. The fauna of the ecoregion also includes birds such as the peregrine falcon and golden eagle and reptiles such as the Armnenian viper.

Many ecosystems of the ecoregion have been badly degraded and a number of species are senously endangered. Main reasons include habitat loss and modification mainly by agnculture (drainage of wetlands, overgrazing), industnal development, unsustainable use of biological resources (logging), and the impact of introduced and non-native species. Protected Areas are not sufficient for effective conservation.

3.2 Socio-Economic and Technical Issues Associated with Water Management and Irrigation

3.2.1 The Irrigation and Drainage System: Description, Current Issues and Rehabilitation Plans. Three major rivers (Samur, Kura and Araz) with their tributaries, and a number of lesser rivers that drain the Greater and Lesser Caucasus, feed Azerbaijan's irrigation system. In addition, the system is supplemented by a subordinate amount of groundwater. Construction started in the early 20'h Century, and by 1913 over 0.5 million ha were under imgation. Following an intensive penod of canal building in the wake of World War II, by 1990 about 1.45 million ha were reportedly equipped for irrigation.

The irrigation system consists of ten main canals and two main drainage collectors, and the total length of all irrigation canals is 65,900 km. With only 3.6 percent concrete-lined canals, annual water losses are estimated at 2.5 - 3.0 billion m3. Almost 90 percent of the irrigation is surface applied. About 66 percent of the overall total is gravity-irrigated, 24 percent is irrigated by pump-assisted gravity, 10 percent by pumped spnnkler and 0.2 percent under rmcro- irrigation. Groundwater from some 7,000 wells1 can irngate 96,700 ha (or 7 percent) of the irrigation-equipped area. Many wells are artesian, but in response to subsiding water levels following the drought years of 1998-2000, some are now fitted with pumps. Irrigation efficiency is rather low, with national average estimates rangmg between 35 and 55 percent2 . However, the EA team encountered one estimate of irrigation efficiency values as low as 10 percent3.3

Drainage construction has lagged considerably behind irrigation development. About 31,000 km of drains serve some 0.6 million ha (0.27 million ha - through subsuiAce drainage, and 0.33 million ha - through surface collectors) in the irrigation-equipped area. The irrigation of soils in areas with a high PE to rainfall ratio and inadequate drainage resulted in extensive salinisation, with 60,000 ha of the irrigated area classified as severely and 124,000 ha as moderately salinised.

The key components of the irrigation system are headworks with desilting basins, lined main canals, pumping stations, and storage and regulation reservoirs. Secondary (inter-farm) canals, located along the now defunct collective farm boundaries, are open channels with small control gates and other hydraulic structures or concrete pipelines that branch directly from the main canal. These, in turn, branch into a tertiary (on-farm) distribution system, primarily earth ditches with occasional concrete flumes. The tertiary system connects by narrow, manually dug i According to the cited FAO's Drought Assistance Mission Report, at least 2,000 wells are out of service due to falling water tables and pumping problems 2 RIIDIA 11 Feasibility Study, 3.1 4, and Assessment of Drought Damage and Priority Needs for Assistance, Mission report, January 2001, FAO. 3 Field estimate by the project preparation team in the Geranboy area, October 2002

3 01/03/03 ditches to individual land plots that are irrigated by furrow and border stnp flooding. In areas of flat topography and/or high groundwater table (e.g., the lower Kura-Araz plains), irrigation return- flows are discharged by seepage into drainage canals that drain into large, open collectors. The collectors are located at the bottom of the irrigated areas and cross the main irrigation canals by siphons. The collectors run parallel to the nver, all the way down to outfalls into the Caspian Sea.

The Samur-Apsheron Canal Irrigation System (SAC) runs south from the Samur River headworks along the edge of the Greater Caucasus foothills for 182 km, to the north- western edge of the Apsheron Peninsula. The SAC services about 86,000 ha of irrigated area (including 12,700 ha currently served by the Khanarkh Canal), a rectangular slice of the coastal plain that narrows from 20 km in the north to less than five km near Baku. The SAC headworks on the Samur River have an initial intake capacity of 55m3/s (according to the 1967 water shanng agreement , up to 889 million m3tyear). Additional installations include two major pumping- stations, three sediment basins, several secondary canals (Khanarkh, Qudyalchay, and Velvelichay) that feed into the main SAC, and the Jeiranbatan Reservoir near Baku. From the latter, water is pumped to the Apsheron Main Canal and following treatment, to supply about 40 percent of Baku's domestic and industrial water needs.

In its current configuration the SAC is a 1950s upgrade of a 1930s earth canal that originally served only irrigation. Fallen into disrepair following the dissolution of the FSU, excessive leakage losses and curbed conveyance capacity have resulted in an inadequate supply to the inter-farm canals. With the supply to Baku maintained constant over the years at an annual level of 290 mi3 million, the water shortages and unreliable delivery have pnmarily impacted the irrgation service area. Consequently, the irrigation supply was reduced from 600 m3 million in 1989 to 254 m3 million in 1999, an overall 40 percent decrease in reported irrigated area and under-irrigation of additional areas.

A water resources model completed dunng preparation ot tie RIDIP determined that the reliability of the SAC system is unacceptably low. While the commonly accepted standard requires that the infrastructure satisfy the imgation demand 75 out of 100 years (75 percent), the system's reliability for two typical irrigation areas in the lower part of the SAC varies between 34 and 59 percent. Furthermore, supplying Baku with its needed water has a reliability of 59 percent, well below the commonly accepted values of 90 to 95 percent.

One of the two major components of the RIDIP mvolves restoring the first 50 km of the SAC. This is to include (i) rehabilitation of the Samur headworks, where past flood damage and lack of regulr maintenance jeopardise the integrity of the barrage, and replacement of all seriously deteriorated gates and lifting gear; (ii) repair of the concrete lining of the first 50 km of the main canal and the associated structures, where deterioration arising from neglected maintenance has led to an unacceptable loss of and difficulties in managmg the water. The design of the hydraulic structures would take into account new water supply conditions after completing the rehabilitation of the Khanarkh Canal. Rehabilitated with funds of the Islamic Development Bank, the Khanarkh Canal would supply water to some of the irrigation areas now served by the SAC. The SAC, in turn, would deliver about 10m3/s to Baku, and a similar amount to the imgated areas toward the tail end of the system. The 1RIDIP also includes rehabilitation of sediment extraction works at the headworks of and along the SAC. The original design included four sediment exclusion works and basins intended to exclude annually 1.25 million m3 of sediments from the SAC. As none of these facilities is currently operable, about 2.25 million m3 of sediments enter the canal system annually, silting up the inter-farm and on-farm canals and

The 1967 Protocol on Samur water shanng between the Republic of Dagestan and the Republic of Azerbaijan; Section 3 1.5 and Annex 3.1 1,Table 2, inRIIDIA II Feasibility Study, CES Consulting Engineers Salzgitter GmbH, year

4 01/03/03 reducing the storage capacity of the Jairanbatan reservoir. Constructing a hydraulic flushing 3 mechanism at the head of the SAC would allow for the exclusion of 680,000 m of silt, or about 30 percent of the annual sediment intake.

Finally, The RIDIP will finance rehabilitation of 37 offtakes that supply water to inter-farm canals, including new gates, measurement structures and remodelling to match their modified service areas. Rehabilitation of the secondary canals leading from the first 50 km of the main SAC that supplies water to irrigate about 65,000 ha is also planned. These improvements are expected to increase the overall irrigation efficiency to 42 percent from its current estimated value of 35 percent, while increasing the reliability of the water supply to Baku and the Apsheron Peninsula to 69 percent or higher.

The Kura-Araz Irrigation System and the Main Mill-Mugan Collector (MMMC) Project. The imgation system of the Kura-Araz and Mugan-Salyan plains services about 760,000 ha. The two major canals are the Upper Shirvan on the left bank of the Kura, and the Upper Karabakh on the right bank (see Table 3.5). In general, the imgation system is in a reasonably good condition, but soil salinity has developed over an extensive area for lack of natural drainage. Installation of effective artificial drainage in the MMMC area is, therefore, of prime importance. The Shirvan Collector, the Kura's left (north) bank drainage collector system, was completed in the 1960s. Development on the right (south) bank started in the 1980s, where currently 112 km of the Main Mill-Mugan Collector are either completed or under construction. This leaves a 31 km missing link to connect the MMMC to the Main Mill-Karabakh Collector (MMDIKC). The MIMKC is currently linked to the Main Shirvan Collector on the left bank of the Kura River via a siphon with capacity of 25 m3/s. The extension of irrigated areas on both riverbanks dunng the last decades overwhelmed the capacity of the collectors: the Shirvan was originally designed for 67 m3/s, which is the design discharge of the left bank area only. This often causes an overload, and dunng peak drainage periods, results in release of some of the saline MMKC drainage water to the Kura River, either directly or via Lake Sarisu. The river's current salinity ranges between about 0.5 to-1.0 gr/l. While appropriate for imgation with some restrictions, it is of poor quality for drinking purposes.

Table 3.5. The Main Canals of the Kura-Araz Irrigation System

Canal Route Length Nominal Irrigated January (km) capacity area, ha 2001 flow W(m3s) (m3/s) Upper SE from the Mmngachevir 174 113.5* 85,000 75 Karabakh Reservoir to the Araz River Upper From the Mingachevir 126 78* 91,000 14 Shirvan Reservoir to the Akhsu

______River *Note: Accordmg to FAO's website (op. cit), nominal capacities are T120 m/s and 80 m3/s for the Upper Karabakh and Upper Shirvan, respectively.

The inadequate capacity of the area's collectors has resulted in waterlogging and rising salinity on both banks of the Kura River. About 180,000 ha on the left bank are somewhat affected, both upstream and downstream of the junction with the MM4MC. A further 20,000 ha is affected on the right bank as the junction with the main MMKC is backed up for about 20 km by the overloaded siphon under the Kura River.

The RIDIP supports (i) the completion of the remaining 31 km of the main collector drain, including necessary road and rail bndges and aqueducts across it as well as an adjacent service road; (ni) completion of the siphon underpass for the MMMC beneath the Araz River, thus

5 01/03/03 re-routing Mill-Karabakh drainage water from the left bank of the Kura River to the right bank; and (iii) reconstructing and rehabilitating inter-farm collectors over some 36,500 ha. The benefits of these infrastructure improvements include: (i) relieving acute drainage congestion across 36,500 ha, and reducing severe drainage congestion in up to 200,000 ha on both sides of the Kura River; and (ii) reducing contamination of the Kura River with saline water, with beneficial effects on fisheries and irrigation schemes in the river's lower stretches, as well as on the quality of about 40 percent of Baku's water supplies that are drawn from this source further downstream.

3.2.2 Overall Water Resources Management

3.2.2.1 Inter-Sector Linkages. Azerbaijan manifests close interdependence between its water resources and supply to the main consumer groups: domestic, industrial and irrigation. Both lmgation and the provision of drinking water to Azerbaijan's main cities depend primarily on surface water. Industrial and domestic point source sewerage discharge, as well as agricultural non-point source pollution degrade the quality of surface water and threaten groundwater quality. Heavy dependence on pumping for both imgation and urban water supply is challenged by unreliable power supply, a combination of inadequate generation capacity and heavy losses in transmission and distribution. Unrealistic resource pricing for water and poor collection rates are commonplace in both the urban and agricultural sectors, resulting in water wastage and crisis- level shortage of funds for operation and maintenance of both systems. Finally, overzealous water quality and wastewater effluent standards that are unmatched by existing capacity for monitoring and treatment, combined with institutional fragmentation and insufficient water data collection, obviate effective planning and raise concerns for potential water user conflicts. Sections 3.2.2 and 3.2.3 address these issues, emphasising the inter-linkages between sectors. I 3.2.2.2 Water Supply and Sanitation: Technical, Institutional and Organisational Challengesi. Compared with other countries with similar levels of per capita income, Azerbaijan stands out in its high percentage of urban households connected to a piped water supply (Baku: 95 percent, secondary cities: 83 percent). Baku derives most of its water from three distant (140 to 200 km) sources: groundwater from the Khachmaz area (4.0 m3/s); the Samur-Apsheron Canal (SAC; 9.5 m3/s), and the Kura River (9.5 m3/s). The rehabilitation of the Kura intake and treatment plant that was damaged by the November 2000 earthquake is a key component of an ongoing World Bank projece.

Azerbaijan's secondary cities and small towns rely for over 90 percent on groundwater sources. Only 14 of the 60 water supply systems depend at least partly on surface water, in some cases irrigation canals. In the rural areas, defined as settlements with less than 5,000 inhabitants, service coverage of piped water drops to about 11 percent of the population3, with irrigation canals frequently used as a source for domestic water supply. As the consumption of municipalities and industnes is small (14 and 17 percent of the total, respectively) relative to that of irrigation (up to 80-90 percent of the intake water from the Kura-Araz Rivers during low flow periods), one may predict future prospects for water user conflicts.

Currently, only about half of the wastewater in the Greater Baku area receives treatment; the surplus is discharged untreated to the Caspian Sea. In other urban areas, wastewater

Much of the data of this chapter are summarised from the following: (i) Water Supply and Sanitation, Sector Review and Strategy, World Bank Report No 2071 I-AZ, June 30, 2000; and (n) Towards a Water Resources Management Strategy for Azerbaijan, World Bank draft final report, December 2002. 2 Greater Baku Water and Sanitation Rehabilitation Project (GBWSRP). 3This is probably an underestimate, as services currently or formally provided by collective farms and agncultural enterprises often rely on individual wells or pumping from irrigation canals and are not included in the official statistics.

6 01/03/03

network coverage drops to 32 percent, and of the half that have treatment facilities, some are currently inoperable. The rural population relies on on-site solutions, primarily latrines and drain fields.

Unsafe drinking water is prevalent. Based on 1996 data, in Baku about 30 percent of the samples did not meet the bacteriological requirements, over 80 percent did not meet the turbidity standards, and 78 percent failed to meet the residual chlorine requirements. The greatest impact in terms of level of service, water-related morbidity, and proportional cost burden associated with coping strategies to alleviate the inadequate water services and water quality (e.g., by resorting to storage or purchase from vendors) has been on low-income groupsI.

The reliability and safety of water services is unsatisfactory by many accounts. Based on several recent household surveys in Baku and small towns, high percentage of the interviewees perceived piped water as unsafe, level of water pressure insufficient, and water shortages as severe or very severe. According to a recent countrywide survey, 43.4 percent of the urban and 63.1 percent of the rural population complained about irregular or unsatisfactory water supply2 . Water utility service targets in the secondary cities and small towns are low, and about third of these utilities set targets of less than 50 litres per capita per day (Icpd) of service (see Table 3.6).

Table 3.6. Technical Data on Water and Wastewater Service Targets and Facilities in Selected Small Towns

';.Soafce Sof Water Populatiofi IWater: -==-_at 1 lli R ; . l=l -- ~-served _- treatrnnt- s.--water. - | a ;" S ~~~~~~~(060),-;- plant , treatrment-.

ranbGy-- | sKura-River, 19 - 6.4 : 1jYE A 0 NO artesian wells- shV E4-artesian wells 2 7 30.1* -,'NO |Khachmaz Siil isurfae -watert 274f28.7 -- - ES CANNER2Y!-. Gudma'ncay vRi.er dramnage systemf *uba1 -Qufdyalcfi I ay -River . CANNERY Y drainage syr,systemPLANTs : sgubsurface -water, I -ar-tesian well SaaTtli Araz-River- 1815.O0 28 SahraadKura River 1 8 14.2 lAb6

Notes: 1- 1000m Iyear, * Revised entry, from Water Supply of the Population in Azerbaijan, State Statistical Committee, Baku 2002, Part II, P. 181.

Impacts of Institutional Fragmentation and Administrative Issues on Service Quality. The multiplicity of regulatory institutions and monitoring agencies in Azerbaijan's water sector is one of the key obstacles to the integrated planning of national water resources. There are four national utilities and agencies charged with different aspects of drinking water quality monitoring; two with controlling wastewater discharges; two dealing with regulation and control of abstractions; and two assigned to monitoring. The outdated laboratory equipment, lack of

' The GBWSRP is expected to improve significantly the situation. 2 From. Water Supply of the Population in Azerbaijan, State Statistical Committee, Baku 2002

7 01/03/03 support for monitonng activities, and fragmentation of information (i.e., each of the water management agencies has a separate database with a restncted sharing of information or coordination of activities)' hamper the collection of information needed for planning and management of the resource. Even worse, there is no smgle entity that is responsible for overall planning.

Water supply and wastewater services for about 1.7 million people in urban areas outside Baku are provided by 59 utilities (Vodokanals), independent and self-financing organisations in charge of all facets of operation, maintenance and customer services in their areas of service. The institutional capacity of these utilities is limited and characterised by the lack of coherent reporting structure to executive authorities, emphasis on production rather than maintenance, bloated and low-productivity staff, lack of personnel with training and financial management skills, tendency to plan based on predetermined norms rather than on actual data, and over centralised management structure.

Manifestations of inefficiency in the water distribution system include: (i) water consumption in Baku and Sumgayit is four- to five fold that in most Western European countries due to heavy losses in the distribution system (average annual household leakage is estimated at 307 m3/year); (ii) pipe breakage per 100 km/year is 10 to 30 fold the common range of breaks in well-maintained distnbution systems; (iii) widespread hydraulic inefficiencies in the conveyance of water through the transmission and distribution system, caused by poorly designed pipe networks, improper pressure zoning, and insufficient storage capacity; (iv) inefficient, poorly performing water and wastewater plants and pumping stations reflect high input requirements and poor operations, including energy and chemical inputs, and overloading beyond design capacity. The only positive by-product of the high levels of water system wastage is heavy dilution of the incoming wastewater. This facilitates the work of the treatment plants that discharge effluents of an overall acceptable quality.

3.2.3 Issues Related to Water Use

3.2.3.1 Azerbaijan's Power Sector2. Azerbaijan's water sector depends heavily on pumping. Azerbaijan's installed generating capacity is approximately 4.8 gigawatts (GW), consisting of thermal plants that supply over 85 percent of the generating capacity, and hydroelectnc plants. Built during the Soviet era, the power infrastructure is in poor condition, with munimal public investment and maintenance since independence. The country's economic contraction during the mid-I 990s, along with systemic problems, such as pnces capped below the market rate and frequent non-payment by customers, have prevented the power sector from upgrading ageing power-generation facilities.

In 2000, Azerbaijan produced 17.6 billion kilowatt-hours (Bkwh) of electricity and consumed 16.7 Bkwh. However, with about 23 percent loss of generated power by inefficient distribution network, power shortages are prevalent, and Azerbaijan is forced to import power from most of its neighbours. Azerbaijan's energy efficiency is about ten times lower than its U.S. counterpart. Several new projects to restore and add new capacity to the power sector have been recently completed but the cost of additional large-scale necessary upgrades to Azerbaijan's power sector is about $2.5 billion.

Joint River Management Programme on Monitoring and Assessment of Water Quality on Transboundary Rivers Kura Basin Report httpHw/xvNw iointrivers ore/enlg/docs/inceptioi /kura/main/pho 2 Much of the information is derived from: Water Supply and Sanitation, Sector Review and Strategy, World Bank, 2000; and EIA/USDOE's website http./hwww eia doe gov/emeu/cabs/azerbiaii htiml#elec

8 01/03/03

Under the current policy framework, Azerbaijan's oil and gas wealth is being channelled into enormous subsidies for the economy and the population. According to one estimate, the amount of subsidies provided annually by the national oil-company (SOCAR) to Azereneiji and Aszengas amounts to about 6 percent of the country's GDP. Under-pnced oil and gas, for which little payment is actually required, are transformed into electricity and gas services provided at tariffs way below cost and high levels of non-payments. In Baku, for example, collection rates of residential electrical billing are only 12 percent, on a residential tanff of only 2 US cents/kWh.

3.2.3.2 Overzealous Water and Effluent Quality Standards. The water and wastewater utilities in Azerbaijan are still ruled by a compendium of standards and norms that prescnbe in detail how systems should be planned, designed, costed and implemented. There is still tendency to favour large production and expansion of infrastructure at the expense of rehabilitation, maintenance and efficiency improvements. The emphasis is on the stock of water and wastewater infrastructure rather than on the flow and quality of services. This approach translates in the collection of data that is usually based on design specifications and old master plans rather than on the actual situation, and that is focused on capacity rather than on level of service. Lack of adequate data based on real and actual field information is a common deficiency in every system. Many of the standards and norms still in force require levels of quality well beyond the current financial capacity of the customers and the country in general.

3.2.3.3 Water Management Issues of the Irrigation Sub-Sector. Azerbaijan relies heavily on reservoirs to manage its water resources. The largest reservoirs on the Kura River are Mingachevir and its upstream storage, Shamkir, with 7.55 and 41.425 billion in3 , respectively of live storage for irrigation. They serve 330,000 ha and 10,000 ha respectively of ilmgated area. Both reservoirs are also used for generating hydropower (total generating capacity: 750 MW). Because there are no reservoirs on the upper Kura and its tnbutaries in Georgia, inflow from those nvers into the Mingachevir Reservoir varies annually due to variations in precipitation and snowfall across the basin.

Following a sequence of drought years from 1998, in January 2001 the Mingechevir and Shanikir reservoirs reached the lowest level ever since their construction. The water levels fell down to dead storage, with adverse impacts on imgation and power generation. The flow in the Upper Shirvan Canal normally supplies water to irrigate some 100,000 ha in the Shirvan area. Its nominal capacity of 80m3/s diminished to 14m 3/s, necessitating deepening of the inlet from the Mingachevir to allow access to previously dead storage areas. The Upper Karabakh Canal normally supplies water to imgate 150,000 ha in the Karabakh and Mugan areas. Its nominal carrying capacity of 120m3/s was reduced to only 75m 3/s. In the Shanikir, water level fell to about 3.5m below the minimum level for hydropower generation, and water supplies for irrigation were disrupted dunng the two last months of the irrigation seasoni. While this water shortage barely impacted wheat crops that mature between early June and July, cotton crops that mature between August and early September were seriously impacted.

The Araz River is heavily regulated by reservoirs in upstream riparian countries. The Araz Reservoir on the border with Iran has 1.15 billion m3 of live storage, serving 220,000 ha of irrigated area in both riparian countries. Because of increased storage capacity upstream of the Araz Reservoir, its inflow has diinuished substantially dunng the late 1990s. However, it seems that even in normnal flow years, there is now a water deficit in the Araz basin. In addition, there are a number of smaller reservoirs with storage capacity of less than 100 million m3 each; those that

For water balance data between 1991 - 2001 of both rescrvoirs and the arterial canals they feed, see Tables 4 1 -4.4, Annex C

9 01/03/03 are located in the presently occupied areas (e.g., Tartar) no longer serve irrigation schemes in Azerbaijan.

The total live storage of Azerbaijan's water reservoirs is about 21.6 m3 billion, of which the three main reservoirs store about 10.13 m3 billion'. With estimated average 20 percent loss during conveyance in the unlined arterial canals2, and a much diminished storage dunng drought years, a rough estimate suggests that in years of average precipitation, the stored amount does not significantly exceed that required to imgate the country's 1.45 million ha that are presently equipped for irrigation3. In drought years, the amount of stored water becomes inadequate, and irrigation becomes critically dependent on baseflow in the rivers, in conflict with ecological demands. With the growth in water demand of the urban domestic sector and ultimately, of industry4, it is evident that unless irrigation efficiency is significantly improved, Azerbaijan is fast approaching its upper lirnit of water use for irrigation.

Under-Pricing of Water/Low Irrigation Service Fee. One of the key issues associated with the inefficient use of water in Azerbaijan is the unrealistic pncing of water. Prior to July 2002, the system of irrigation service fee (ISF) was based, in principle, on the estimated use of water as calculated using irrigation norms. This reflected a reality whereby generally the actual abstracted volume could not be measured as a result of dysfunctional or non-existing gauges. Recently a new fee system was established that charges a flat fee per hectare, regardless of what crop is raised or how many irrigation cycles are required. For instance, two equal size plots, one growing rice and the other wheat, that require about 30,000 m3/ha and 3,000 m3/ha, respectively, would incur identical ISFs. This fee structure does not provide any mcentive for econormsing on water use.

Across the country, ISFs range between 0.6 AZM/m3 - 3 AZM/m3, or 5 to 15 percent of the actual water cost5. With water delivery for a complete crop cycle normally ranging between 8,000 and 12,000 m3 per hectare, the price of water per hectare under the current ISF system translates into merely 0.3 (for nce) - 1.8 Azerbaijani mmat (AZM) per cubic meter. Moreover, these unrealistically low prices represent the culmination of a trend of decreasing water pnces in the recent years. Consequently, the grossly inadequate ISFs fall way short of the funds required for proper maintenance and replacement of malfunctioning hydraulic components, thus contributing to further deterioration of the irrigation system.

Inefficient Use of Water for Irrigation. The, agricultural sector consumes on average 69 percent of the country's total water consumption6, hence inefficiencies in its management have significant repercussions on the national water balance. Conveyance of water in open, primarily unlined canals, and flood irrigation are inherently water-wasteful

I According to FAO's web page dealing with Azerbaijan, the total storage capacity is 21.35m3 billion One way to explain the large discrepancy is by assuming that FAO addressed total (i.e., including dead) storage capacity. 2 Diagnostic Survey of Selected Water Users' Associations, Project Benefits and Recommendations, World Bank Draft Mission Report, Baku, February 10, 2003 3 This estimate is based on an average of 12,000 m3/ha used for imgating using surface application. According to the World Bank's draft final report 'Towards a Water Resources Management Strategy for Azerbaijan', water withdrawals per irrigated hectare range between 9,290 m3 and 13,000 m3 . The Diagnostic Survey op. cit cites an average abstraction of 16,000 m3/ha 4 According to the cited World Bank's draft report, agricultural abstraction in 2020 is projected to increase by about 28%. 3 For cost data compiled during Project preparation, see Francis Maundrell, Draft World Bank Report on economic aspects of agnculture in selected WUAs, February 2003 6 Irrigation use can be as high as 80-90% in the Kura and Araz Rivers dunng low flow penods. Azerbaijan Water Supply and Sanitation, Sector Review and Strategy, World Bank, 2000.

10 01/03/03 methods. Leakage and seepage from unlined canals have been responsible for water logging, salinisation and sodicity primarily in the Kura plains, and to a lesser degree in the Khachmaz region. Low irrigation efficiency (25 percent on average by one estimate', but values as low as 10 percent were estimated in a field visit to the Geranboy raion in October 2002) causes the excessive amounts of applied water to infiltrate below the root zone. This 'retum flow' leaches the soil of much of its nutrients and residual agro-chemicals, and raises the groundwater table to shallow levels, setting the stage for soil salinisation by capillary suction close to the surface.

Rampant waste of water is ubiquitous, as illustrated by anecdotal evidence. By one estimate, irrigation canals account for domestic water supplies of 89 percent of the rural population2 . Besides providing poor quality water for domestic consumption3, such mixed use also necessitates running water in on-farm canals throughout the year, causing unnecessary waste4. In the Bursunlu WUA, Geranboy raion, about 550 litres per second (lps) are pumped up a total lift of 300m in three equal stages to supplement the on-farm gravity system. In the process, some 75 percent of the water is lost by a combination of severe leakage, malfunctioning electncal components, and constant breakdowns of equipment. A recently installed domestic water supply system (comprising tubewell and electric pump lifting water into an overhead supply tank) is reported to have water running continuously because taps are no longer functioning 5. Medium- diameter pump house pipes on the Karabakh Canal are wrapped in rags to contain profuse leakage6 , while a leak in a large diameter aqueduct across the Nakhchivan River was beyond containment. At the other extreme, where rural areas are removed from the canal system and the quality of tube well waters is too poor to be safely used, vendors charge exorbitant rates for 7 potable water supply .

Impact of the Under-Performing Power Sector on Irrigation. The price of electricity for rural customers, 153 AZM/KWh (or about US$ .03/kWh) is about half that in developed countrnes, and clearly short of its actual market cost. The large ensuing deficit in energy service revenues results in deferred maintenance. This, in turn, perpetuates power failures and unpredictable outages, rendernng an undependable supply of water for rural domestic water consumption and irrigation.

Such undependable power supply is particularly constraining in a system where over one-third of the total irrgated area (about 500,000 ha) depends on pumping to abstract water from irrigation canals8. A great deal of the irrigated lands, pnmarily in the Kura-Araz plain, depends on water pumped to a higher level from which it is further distributed by gravity flow. Areas that are either too remote from, or topographically above the installed pumping capacity from the canal system, resort to abstracting water from tubewells, at times from depths in excess of 100 m. Power-blackouts result in rather frequent pump outages; in one documented case, a pump was out of order for over 18 days within a given period of seven months9. On top of the failure to deliver l Diagnostic Survey, op. cit. 2 Azerbaian Water Supply and Sanitation, op. cit However, this figure is deemed too high (see Section IIB, page 4). 3 The poor quality of these water requires boiling before use, a factor that contributes to the common practice of cutting tree limbs for fuel. 4 E g., Cholbeshdaly WUA, Sabirabad raion, Gahramanly WUA, Beylagan raion, and Borsunlu, Gornaboy raion IDSMIP First Mission Report, Project Preparation, Diagnostic Survey, Annex 2 (Irrigation Infrastructure), October 2002 5 Gahramanly WUA, Beylagan ralon, IDSMIP First Mission Report, Annex 2, op cit. 6West of Yevlakh, several hundred meters north of the Ganja-Baku main road, October 2002. 3 7At least in one instance, the equivalent of - S8/m 8IDSMIP Project Concept Document, op cit. 9Gizlagaj Pump Station, Salyan Raion, Sam H. Johnson 111, op cit

11 01/03/03 water to farmers in the tail end of the system, unpredictable outages induce farmers to apply water very liberally, as long as it is available, to prevent crop losses pending future outages. This leads, in turn, to user conflicts and to very low irrigation efficiency, including significant loss of water to salinised aquifers and/or dramage collectors. Were electricity to be priced realistically, the cost of power inputs would render much of the cultivated areas non-viable for imgated agriculture.

Insufficient Government Allocations for Operation and Maintenance of the Irrigation System. Committed to continue the reform process of the agricultural sector upon which it embarked in the early 1990s, the Government has vested the SAIC with the authority for operation and maintenance of the irrigation and drainage infrastructure outside the boundaries of the former state and collective farms. However, the corresponding budgets have been cut drastically following independence. For instance, SAIC's 2002 budget was 167 billion AZM, about one quarter of the estimated 650 billion AZM required to properly operate and maintain the off-farm irrigation and drainage infrastructure. In 2001, a substantial amount of the budget was allocated for the purchase of pumps and transformers to abstract water from conveyance canals following a drastic drop in water levels following a sequence of droughts. Normally, though, most of the budget is consumed by staff costs and recurrent expenditures, (primarily energy) costs. The cumulative impact of the insufficient funding has been silting of canals and drainage collectors, deterioration of headwater facilities and other offtake structures, leakage of pipes, and a growing number of aged and increasingly inefficient pumps.

Need for Water User Associations (WUAs). Before independence, there were about 2,000 state and collective farns that had their own management organisations to provide maintenance for on-farm irrigation and drainage systems. The dissolution of these farms left a ,void in management responsibility. This has been the major reason for irregular and inadequate availability of imgation water at farm level and low overall irrigation efficiency, with resultant low yields and profitability. A recent prelimnary survey demonstrated that about 75 percent of the farmers suffer from inadequate water supply to their fieldsi. The government intervened to alleviate this situation by charging SAIC 'at least temporanly with maintaining the on-farm irrigation system as well (Decree No. 43, March 15, 2001). However, the allocated funds, 9 billion AZM, are by far insufficient for implementation, and the decree fails to clearly define the boundaries between the jurisdiction and responsibilities of WJUAs and SAIC.

WUAs were formed across the country in order to establish legal and self-sustaining entities capable of undertaking the operation and maintenance responsibilities in their respective on-farm areas. While a great deal of progress has been accomplished since their formation, including a significant improvement in the level of ISF collection, the viability of the WUAs has been lately compromised by potentially damaging legislation. Resolution 97 (June 2002) restricts the amount of fees to be collected by WUAs to 25 percent of the amount they are required to pay SAIC. This leaves the WUAs with woefully inadequate net funds for on-farm maintenance. Moreover, the recent Law on the Water Economy of Municipalities awards local governments the ownership of irrigation infrastructure within their jurisdiction. This raises senous concerns that the cash-strapped municipalities may choose to use their new assets as a means to increase their revenues, while redirecting insufficient amounts of their new revenues towards maintenance of the irrigation system.

3.2.4 Socio-economic Parameters of the Rural Population. According to the 2002 State Programme on Poverty Reduction and Economic Growth 2002-20052, some 48.3 percent of the population of Azerbaijan lives in rural areas, while 51.7 percent lives in urban centres. About

Wwater Supply of the Population, op. cit.. 2 Republic of Azerbaijan, State Programme on Poverty Reduction and Economic Growth 2002-2005 (Final Draft), 2002.

12 01/03/03

12 percent of the population is refugees or intemally displaced persons (IDPs) from the conflict with Armenia, most of them living in rural areas. The birth rate and natural growth rate of the population has been decreasing; the overall demographic situation in the country is characterised by low population growth. The State Statistical Committee (SSC) of Azerbaijan estimates a poverty rate of 49 percent for the country as a whole for the year 2001. Among the rural population, 42 percent are considered poor, compared to 55 percent in urban areas'. However, there are substantial regional differences in poverty rates, with a low in Shirvan (38 percent) and a high in Apsheron-Quba (58 percent). All of the proposed project areas have poverty rates above the national average (see Section 4.4).

Income. Azerbaijan ranks among the poor developing countnes in terms of U.N. classification, with a per capita GDP of US$ 664 in 20002. Nominal money income per capita was approximately US$ 505 annually, or roughly US$ 1.40 per day. Income per capita in the rural, agriculture sector was less than half that amount. An estimated potential workforce of 1.7 million able-bodied persons lives in Azerbaijan's rural areas, with more than 1.1 million of them (65 percent) engaged in agriculture. There is an average of 1 hectare of land per able-bodied rural resident, which produces an average income of approximately 700 million manat, or US$ 156, per year ($0.43 per day)3. When family members are taken into account, this income per rural resident is one-fourth the figure cited.

Agriculture sector. The agriculture sector is a major contnbutor to Azerbaijan's GDP. Data for the year 2000 indicate that agriculture accounted for as much as 18 percent of GDP and employed 42 percent of the labour force4. Before independence in 1991, Azerbaijan was a rnain producer of cotton, wheat, grapes and vegetables for the former Soviet Union. Real output declined rapidly, however, between 1991 and 1995, when the production of grains fell by 19 percent, cotton by 48 percent, grapes by 66 percent and vegetables by 43 percent. Since 1995 the division of main agricultural activities has changed little, with 60 percent continuing to be devoted to crops and 40 percent to livestock products. The export of cotton, fruits and vegetables accounts for-some 30 percent of the country's total exports.

Azerbaijan has nearly completed its land reformn program, breaking up the former state and collective farms by allocating approximately 97 percent of the total arable land (1.6 rmllion ha) to some 815,000-farm families. As a result of this privatisation process, however, farmland is now widely held by the rural population (some by farmers with little experience in agriculture), but individual land holdings are extremely small. After a precipitous decline following independence from the former Soviet Union, the agriculture sector is once again expenencing solid growth (12 percent in 2001). The main crops of grains (mostly wheat), cotton, potatoes, fruits and vegetables are showing gains both in number of hectares under production as well as yield per hectare.

Despite this reversal, however, the 2000 Rural Infrastructure Survey indicated that 66 percent of rural households face problems with irrigation water5. In fact, irrigation system problems (e.g., damage to irrigation facilities, insufficient water) were one among many reasons why farmers leave arable lands fallow. Other reasons include the lack of agricultural machinery, shortage of funds for farm inputs, and agro-processing and marketing problems. Conflicts between water users or between water users and the local irrigation committee for the most part

Iop cit. 2 World Bank, Poverty Reduction Strategy Paper (Interim Report), May 2001 3op ct 4op cit. 5 World Bank, Rural Infrastructure Survey, January 2001

13 01/03/03 were not perceived as a serious problem, with only 15 percent of farmers considering conflicts a substantial problem.

Access to credit and capital. The break-up of the collective farms and limited financial resources in recent years have made it impossible to maintain the vast land reclamation and irrigation system in proper working order. As a result, more than 60 percent of imgated land has been subject to increased salinisation, which has contributed led to sharp declines in agncultural yields. Due to the absence of a system of supporting services for agricultural producers and a viable land market, farmers are deprived of the opportunity to apply high-tech (or modem) production methods or to use land as security (or collateral) for obtaining credit. As recently as 2000, the Rural Infrastructure Survey confirmed that the lack of credit was a problem for some 80 percent of rural households surveyed.

Public health. In the period immediately following independence, the steep decline in attention and funding given to preventive health care and lack of public health and epidemic prevention measures at the proper level resulted in a general worsening of the health status of the population. This penod witnessed epiderucs of polio, diphtheria, and malaria, as well as increases in the incidence of rabies, brucellosis, anthrax, tuberculosis, and other infectious diseasesi. Rural areas, needless to say, have been particularly hard hit. Since the mid 1990s, however, the Government of Azerbaijan, with the assistance of various international organisations, has begun to combat the spread of infectious diseases and reverse the decline in health status. By 1996, for example, Azerbaijan had succeeded in eliminating polio and in almost eradicating diphtheria. Further, there has been a reduction in the number of cases of malaria, infectious hepatitis, measles, whooping cough and tetanus.

Education. Azerbaijan inherited a relatively good educational system from the Soviet period, and the literacy rate (98.8 percent) and school enrolment rates (84.1 percent of the school age population) for the country remain very high2. The current education system, however, struggles to maintain the country's strong educational heritage. For example, the percentage of the population with higher education is gradually declining, with the 40-60 year age group at 16-18.5 percent, the 30-40 year age group at 13-14 percent, and the 20-25 year age group at 11 percent. Recent statistics also indicate that only 16 percent of the 3-6 year old age group attends kindergarten, reflecting the collapse of the system of pre-school education left by the Soviet penod. Ministry of Education studies indicate that there is a trend towards decreasing attendance of children in schools, especially in grades 8-11. Further, the, number of vocational institutes, as well as the number of students studying in them, has declined over the last decade.

Municipal Services. Related to public health issues is the glanng shortfall in municipal services required to meet the minimum needs of the rural population. If the water supply and sewer systems are inadequate or in disrepair in ,urban areas; they are largely non- existent in rural areas3. As noted above, even with the government's efforts at decentralisation of political responsibility and transfer of physical assets, the municipalities remam incapable of providing basic municipal services4. The infrastructure survey found that 65 percent of households in rural areas drew potable water from wells (i.e., tube, open, and artesian), while some 10 percent used irrigation canals and 11 percent used drainage canals for drinking water purposes5. Correspondingly, only 22 percent of the rural population considered access to drinking

' Poverty Reduction Strategy Paper (Interim Report), op. cit. 2 State Programme on Poverty Reduction and Economic Growth 2002-2005 (Final Draft), op cit. 3Poverty Reduction Strategy Paper (Interim Report), op. cit. 4 World Bank, Rural Community Investment Project, Project Concept Document, June 2002. 5 Rural Infrastructure Survey (January 2001) op cit

14 water a major problem. The lack of basic drinking water and sanitation services in rural areas has contnbuted to the rise in water-bome and infectious diseases in the rural population.

Displaced Population. Armed hostilities with neighboring Armenia in the early 1990s drove approximately one mnllion Azerbaijams (12 percent of the total population) out of Armenia and out of Nagomo-Karabach, the territories seized and held to this day'. The majornty of these people live in rural areas (principally in the southern and western regions of the country), in temporary and inadequate dwellings (e.g., tent camps, prefab houses, farms and railway cars), many without adequate water and sanitation services. Some 60 percent of these refugees and IDPs are classified as economically active members of the population, but practically all of them are without permanent jobs and are forced to subsist on occasional earmngs and meagre benefits from the state. The SSC estimates that as many as 300,000 out of the 400,000 able-bodied IDPs are without work. Some 200,000 of the IDP population are children, 86,000 are under school age. About 98,000 are school children2.

' State Programme on Poverty Reduction and Economic Growth 2002-2005 (Final Draft), op cit. 2 op cit.

15 01/03/03

4. ANALYSIS OF BASELINE CONDITIONS

4.1 Description of the Project

The IDSMIP would have two major components: (i) assistance to the Government in building capacity to provide training and support to WUAs, including provision of such training and support to WVUAs; and (ii) assistance in the rehabilitation and improvement of irrigation and drainage infrastructure. A third component would provide project management support. The project would provide some support to all raions in the country, but it would provide more comprehensive institutional support to the nine raions where the rehabilitation activities would take place. The raions are Khachmaz, Geranboy, Aghjabedi, Sabirabad, Saatli, Zardab, Imishli, Babek, and Sharur. These raions have large irrigation areas, and they can be linked to other donor- assisted interventions in the sector. Most of the raions are benefiting from the ongoing RIDIP, the ADCP is active in several of the raions as well. A brief description of these components follows.

4.1.1 Strengthening of Water User Associations. This component would include several activities designed to develop sustainable operating WUAs in the country. It would finance technical assistance, goods, training and study tours. The technical assistance would be used to develop training and support plans and provide initial training courses, as well as the development of an institutional restructuring and manpower plan for SAIC. Goods, such as office equipment, would be provided to strengthen the agencies involved in the training and support of WUAs. Participating WUAs would also be able to source goods, including office equipment, motor bikes, and field survey and monitoring equipment, to facilitate their operations. Training programs and study tours would be financed.

4.1.1.1 Development of Capacity to Train and Strengthen WUAs. In order to establish the institutional capability to develop in excess of 800-1,000 WUAs, as well as to ensure that the Government has the long-term technical capacity to support themn, SAIC needs staff fully dedicated to these important tasks. In January 2003, small WUA Support Units (SUs) were established in Baku headquarters (Central-SU) and each of the about 60 Regional Irrigation Exploitation Units (Raion-SUs). The project would assist with the development of these newly established SUs, both within SAIC in Baku and the SAIC raion offices. The staff of the SUs would receive the training necessary to implement their WUA support and strengthening tasks. National and international consultants would be recruited to develop the capacity within the SUs to establish, train, support and strengthen WUAs.

The main tasks of the Central-SU would be to organize and implement the national WUA promotion program as well as to coordinate the WUA restructuring program and all training programs, both for the project WUAs and the larger set of WUAs in the country. The project would provide support for the development and execution of the promotion and training programs. Raion-SU staff would be trained under the project to equip them with knowledge and skills to provide technical and institutional support to WUAs, in order to ensure that they become viable farmer-governed organizations that are able to operate and maintain the infrastructure under their management in a sustainable way. The training would be provided by Central-SU staff, consultants, and possibly NGOs. A Technical Assistance (TA) team would be recruited to provide technical expertise in WUA development that is currently not available in the country. This team would include a mix of long-and short-term consultants who would assist the Central- SU develop the WUA support program, prepare promotional and training material, and train trainers, especially in the Ralon-SUs.

4.1.1.2 WUA Strengthening. The project would provide on-demand support to farmers who are interested in strengthening WlJAs. This would be done through promotional

16 01/03/03 material and workshops. Information dissemnation would be a pnority of early stages of the project. The information campaigns would be accompanied by systematic training programs for WUA leadership.

After the initial awareness campaigns, a major focus would be on the provision of strengthening support to WUAs, in the form of training, and ad hoc advice through regular, informal contacts with WUAs. The Central-SU will carry out a detailed training needs assessment to complete the initial assessment that was done during project preparation. Training modules would be prepared on subjects such as: WUA promotion, formation and registration; WUA organization and governance; WUA admnnistration; calculation of ISFs; WUA budgets and book- keeping; irrigation systems operations and water allocation; irrigation infrastructure maintenance; construction superision; monitoring and evaluation, and preparation of repos 1 The project would pay special attention to financial sustainability of WlJAs, which in turn would ensure increased sustainability of the imgation delivery system, through payment of the ISF and proper operation and maintenance of irrigation canals under the responsibility of the WUA.

For other topics, such as agronomy, crop production and crop-water management, training modules developed by other projects would be used, including those funded by the World Bank's ADCP. For example, one of the topics in the ADCP information campaign/training programme is water management, for which eight brochures and a booklet have been prepared. SU-staff would provide much of the WtJA training, however, some training would be best done by pnvate companies under contract. The use of ADCP master training advisors to provide some training to Ralon-SU staff would be determined when the detailed trainmg programme is prepared under the project. ADCP currently provides agncultural information and advisory services in Nakhchivan (including Babek and Sharur), and starting in July 2003 the services would also be available in Aghjabedi, and Imishli. It is expected that the Raion-SUs would work closely with ADCP staff.

4.1.2 Selective Irrigation and Drainage Infrastructure Rehabilitation. This component would address the types of infrastructure needs identified dunng project preparation by the diagnostic surveys carried out at farms in six of the project raions. The main technical findings of the survey were: (i) on-farm systems are in poor condition with high water losses; (u) canals are seriously affected by the heavy silt load in irrigation water due to non-functioning desilting at headworks; (ill) there is lack of operational hydraulic structures, and therefore no regulation or water measurement, and thus no incentive for efficient use of water; (iv) pump irmgation is seriously affected by poor quality and unreliable electricity supply; and (v) significant areas have been affected by salinity, and reclamation would be needed.

The project would provide funds for selective rehabilitation of irrigation and drainage systems. The project would target some 200 WUAs in the nine selected raions, of which about 40 of those that reach sufficient maturity would benefit from rehabilitation investments. Rehabilitation would not only be at on-farm level, as it also has to be ensured that water supply to the WUA boundaries is reliable. Funds would be provided for: (i) rehabilitation of on-farm infrastructure on about 50,000 ha; (n) rehabilitation of the Bahramtepe headworks on the Araz River, which serves some 140,000 ha, including large areas in three of the project's target raions (Sabirabad, Irmshli and Saatli); and (iii) rehabilitation of off-farm works associated with the on- farm works to ensure sufficient and timely water delivery to project WUAs. The project would favor grouping of WUAs to maximize the impact and benefit of related off-farm investments. Off- farm rehabilitation investments, including the major headworks and hydro-posts, would be restricted to 40 percent of available rehabilitation funds to ensure that the bulk of investments are at the farm level where the most senous detenoration has taken place dunng the past years.

17 01/03/03

The project would follow a program approach, where participating WUAs would be selected according to a number of criteria, including status of development, training programs followed by WUA Council and management staff, and collection rates of the ISF. Typical rehabilitation works would include canal and drain cleaning, canal lining, rehabilitation and construction of hydraulic structures, and rehabilitation of boreholes. The project would follow the concept of fanner-driven development, a participatory process in which irrigators (through WUAs) identify their needs and are involved in resource allocation, decision making, implementation, and monitoring. During the diagnostic surveys, farmers expressed a willingness to contnbute financially towards rehabilitation costs, provided this is available under easy repayment terms, and after the works have been completed. The project would plan for a small percentage repayment (ten percent), spread over eight years, with a four-year grace period and zero or low-fixed interest rate. The repaid funds would be used by SAIC raion offices to carry out rehabilitation works that further improve water delivery to WUAs.

The Bahramtepe headworks distnbutes water from the Araz nver and Upper Karabakh canal to four main canals serving some 140,000 ha of irrigated land in five raions. The headworks were completed in 1950, with only routine maintenance being carried out over the next forty years until the end of Soviet support in 1991. There have been no repairs in the decade since, and the headworks are now in extremely poor condition, with an increasing risk of collapse in the event of a major flood. Further, in order for SAIC to deliver adequate and timely volumes of water to the WUAs, the higher order irrigation system would have to be in fully operational condition. The project would finance selective rehabilitation of such higher order systems. This would include the re-instatement of about 400 water measuring structures (hydro-posts). This is part of the process of the re-introduction of volumetric water measurement, a conditionality of the financing of rehabilitation works for the project WUAs. l

4.1.3 Project Management. With the simnlanties in implementation requirements to the ongoing RIDIP, the existing PIU would also be responsible, on behalf of SAIC, for the daily management, administration and coordination of the IDSMIP. The PIU would have a cadre of staff, such as a director, procurement, accounting and environmental specialists, that would be shared by the two projects. This would ensure that the two projects would use common standards and that the accounts use the same format. The PIU would be strengthened with a Project Manager, a Design Engineer, three Construction Supervisors, an accountant and a procurement specialist.

4.2 Analysis of Project Alternatives

4.2.1 No Action Alternative. The 'natural state' option does not exist, as the project concems the rehabilitation of irrigation and drainage systems that have already been constructed. The 'no action' option would allow the existing systems to further dilapidate to a point where continued silting, installation collapse, and overgrowth of hydrophilic vegetation would essentially eradicate the water flow capacity of the irrigation systems. This would force most farmers to return to rain-fed cropping pattems. With the high evaporation/precipitation ratio in much of Azerbaijan's cultivable areas, this would spell the elimination of agriculture as a viable sector, with the exception of areas that benefit from adequate precipitation thanks to their location at higher elevations m the foothills of the Caucasus Mountains. Given the importance of the agriculture sector to the welfare of Azerbaijan's rural population and to the food security of the country as a whole, the 'No Action' option is not an acceptable alternative. Further, the State Programme on Poverty Reduction and Economic Growth identifies public investment in the rehabilitation of irrigation infrastructure as a top pnonty.

18 01/03/03

4.2.2 Better Technology Alternatives. Most irngation systems in the project area are based on water conveyance in open, unlined canals as well as on furrow or border strip irrigation. Several options for technological upgrading of these systems exist and would also bnng environmental benefits. First, lining of imgation canals would reduce seepage losses and thus increase efficiency in water conveyance and also reduce the frequency of maintenance works. Second, the use of piped systems would eliminate losses through evaporation and seepage and thus contribute to conveyance efficiency, and also lower the risk of water contamination. Third, dnp or sprnkler imgation systems would use water more efficiently than surface irrigation schemes. These are crucial considerations considering Azerbaijan's growing water scarcity and the increasingly competing demands by the domestic and industrial sectors. However, the following considerations discourage the introduction of such technological options in the near- term:

* Compared to the rehabilitation of earth canals, their lining with concrete or introduction of piped systems would considerably increase project costs. Using more modem liners such as geomembrane would be even more costly. * Sprinkler systems rely on electricity to maintain the required water pressure. The frequent and unpredictable power blackouts in project areas render such systems impractical. * Heavy suspended sediment loads in essentially all the rivers utilised for imgation are silting up the canals and pipe systems at a pace that, unless de-silted periodically, would quickly render the irrigation system non-functional. Unless effective sediment filters are installed at the headwaters and at major outtakes down the canal system, silting will knock out any irrigation system that relies on small diameter pipes and minute perforations. . The cost range of sprinklers vanes greatly as a function of the complexity of the system. However, in general they are more expensive than gravity-fed surface irrigation systems, and would be significantly more expensive than the restoration of an existing gravity-fed scheme (e.g., their annual operation and maintenance costs can be up to six percent of capital costs). Similar arguments apply to a drip-fed system, but with the added nsk of salinisation if water application rates are poorly managed.

The need for the project to reach a large number of WUAs requires low per unit rehabilitation costs and thus rules out the introduction of lined imgation canals or piped conveyance. In light of the unpredictability of the national power system, the significant cost of installing and running a backup electrical system, on top of the general lack of requisite skills and financial resources in the agriculture sector, drip or sprinkler irrigation is not considered a viable alternative at most sites. However, the introduction of more efficient imgation technologies in the longer term is desirable and can be promoted through training and agricultural extension, as recommended in this EA (see Section 5.2.2.2).

4.2.3 Worst Case Water/Soil Conditions Alternative. The severe problems of salinity, waterlogging, erosion and decline in soil fertility found in the Kura-Araz lowlands are closely related to the history of intensive imgation-based agriculture. The current state of disrepair of the irrigation and, in particular, drainage canals as well as the wasteful use of imgation water, resulting from unclear management responsibilities and weakness of related capacities, continue contnbuting to the problem. The issue is also addressed in the recently approved State Programme on Poverty Reduction and Economic Growth, which incorporates several measures to address land degradation. By concentrating its actions in the areas most affected by the above problems, the project could achieve greater environmental benefits than by adopting, as currently planned, a more geographically diversified strategy. However, for the environmental benefits of the project to be realised and sustained over the long term, the preconditions for continuing maintenance of the infrastructure and continuing functioning of the WJUAs need to be in place. The focus on providing conditions for sustainability and success

19 01/03/03 justifies the geographically diverse, demand-oriented approach that is currently proposed for the project.

4.3 Description of the Physical and Biological Environment

The following presents a brief description, based on available information and the additional data collected by the national experts, of the baseline conditions in the physical and biological environments of the various project areas.

4.3.1 Physical Environment

4.3.1.1 Northern Zone (Khachmaz). Soils. The northeastern slopes of the Greater Caucasus are drained by (from north to south) the Samur, Qusarchay, Quruchay, Qudyalchay, Agchay, Qarachay, Chagachuqchay, and Velvelichay Rivers. At the foothills of the Greater Caucasus, arenosol type soils occupy the moderate to gentle slopes of contiguous alluvial fans deposited as the swiftly flowing, sediment-laden rivers dissipate their energy upon reaching the plains. The colluvial slopes are noticeably more fertile, but their precise classification requires additional mspection that is beyond the scope of this study. Further down slope and across the coastal plain (Khachmaz), clay to clay-loam, greyish brown to brown, non-limy to slightly saline soils develop on the lower reaches of the alluvial fans and on the ancient seabed of the receding Caspian Sea. Poor sandy soils develop on the wind-reworked sands of the present day coastal area. Soil characteristics of the Qusar-Khachmaz Foothills, as well as their amelioration needs and crop suitability are summarised m Table A-4 of the Appendix. On the steeper, topographically higher areas of the right bank of the SAC, soils are susceptible to erosion. Moderately saline and alkaline soils are rather prevalent in flat and topographically depressed areas on the left bank of the SAC. Most susceptible to salinisation are clay-rich soils that overlie shallow groundwater in poorly drained areas. Excessively shallow groundwater underlies half of the irrigated lands of the low-lying Khachmaz (52,300 ha) raion, even though over 20 percent of its total imgated area is artificially drained. As a result, over 12 percent of the irrigated soils in the Khachmaz raion are slightly to moderately saline and over 29 percent, slightly alkaline.

Groundwater. The annual renewable recharge of groundwater underlying the SAC imgation service area between the Samur River and Devechi is estimated at 870 million i 3 . Close to 200 million m3 of this recharge discharge as springs2. The best quality groundwater, calcium- bicarbonate type with total dissolved solids (TDS) below 0.5 g/l is encountered in the Samur- Qusarchay watersheds at the northern part of the area. The quality of groundwater degrades both towards the coastal area and southwards due to increased jeachmg of marine deposits, poorer drainage, and increasing aridity. In the coastal area, the TDS (bicarbonate-sulphate-sodium) rises up to 2.5 g/l.

The main sources of imgation water on the right bank of and above the SAC are artesian water wells and springs. In contrast, on the left bank of the SAC (i.e., the area that can be irrigated by gravity), only 0.2 percent of the total irrigated area relies on well water3. The depth to groundwater decreases from several tens of meters in the upper part of the alluvial fans in the upper Qusar Foothills, to few meters and less, in the lower reaches of the alluvial fans. The

Much of the information is derived from the Diagnostic Survey (2003). Refer to draft report (Sections II B-2b, c, and d) for further information on the water holding capacity of the different soils and the differences between the conventions of the Soviet system and their Western counterparts; and Sections 1I B-2c and d) for discussion of soil hydraulic conductivities and fertility. 2 Coastal Profiles, Azerbaijan, Caspian Environmental Program website: wysiwyg://45/http:H/www.Caspian environment.org/itcamp/azeri 1_20_2.htm 3Table 2.1, EA and Monitoring, op cit.

20 01/03/03 groundwater table has been on the rise since 1959, reaching in the late 1980s up to an average of 1 m below ground surface. During the economic slowdown of the early 1990s, water usage has decreased due to the detenoration of the water distribution system and concurrently this trend has ceased. This strongly suggests that the fluctuations of the groundwater table were precipitated by the intensified irrigation activities'.

4.3.1.2 Southern (Saatli, Sabirabad, Imishli, Aghjabedi) and Western Zones (Geranboy). Soils . Alluvial soils of water-worked pebbles in a sandy matrix (arenosols by FAO World Soil Legend) are common along the pledmont fringe of the central valley zone, evidence for a more pluvial past climate. In these drier, elevated foothill fringe of the Lesser- and Greater Caucasus, bright chestnut, chestnut and grey soils predominate, at times containing gravel lenses. Denved from the sedimentary rocks of the lower slopes, they are likely to be polygenic, with considerable variation in texture. Most irrigated soils are either loams, sandy loams, or silt loams. The clay content of these soils is generally low, less than 15 percent. These soils would be classified locally as light and medium loams. At lower elevations, silty and fine sandy loams and medium clay alluvial soils are common. Close to the Kura River, soils become grey saline meadow and meadow with intermediate to high contents of humus. Most irrigable soils of the central valley zone would be classified locally as "light sierozem", or as eutric fluvisols (base- saturated alluvium), by the FAO World Soil Legend. Low-humus, clay-rich swampy and silty- clay meadow soils prevail in the depressions near the Araz River3.

Table A-5 in the Appendix compares the prevalence of saline and alkaline soils, the quality of ilmgation water, and depth to groundwater table in the Imishli, Beylegan, Saatlh, and Sabirabad raions 4.

Most of the irrigated lands are located either on both banks of the Araz River (Iriishlh), or close to and downstream from the confluence of the Araz and Kura Rivers (Saatlh and Sabirabad). During summner, the main imgation season, the Kura and Araz Rivers supply slightly brackish water (between 0.85 - 2g/1) to the irrigated lands of all three raions. Inferior water q6ality combined with flat topography and inadequate drainage5 cause a considerable development -- between 11-17 percent of the total imgated area -- of moderately to highly saline soils. Based on partial data, over 22 percent of Imrshli's imgated soils are defined as moderately to highly alkaline.

Groundwater. On the left bank of the Kura River, the groundwater table is generally within three meters of the ground surface over 90 percent of the Shirvan Plain6 . This is apparently a result of protracted infiltration of imgation water from the canal system. Horizontal groundwater heads are low (0.03 to 0.0007) and decrease towards the Kura River, and the hydraulic conductivity is on the order of 0.1 to 3 m/day. Dominated by sodium chlonde with high sulphate contents, water TDS ranges between 5-1OOg/l, with the higher values typically away from the leakmg irrigation canals and drainage collectors. The shallow, unconfined aquifer is underlain at depths of 50-200 m below ground surface by three, sand and loamy sand artesian aquifer complexes. Underneath the eastern Shirvan Plain, the water of this deeper aquifer is highly mineralised (5-10g/1). As one proceeds towards the elevated margins of the plain, the water

' Tables 2 4 and 2.5, EA and Monitoring, op.cit 2 A liberal use was made of the Diagnostic Survey Draft Report (op. cit, 2003) 3 Section 2 4 2 and Annex A 10, EA and Monitoring, op cit 4 For good summary of the nexus between shallow groundwater and soil salinity and sodicity (or alkalinity) in the central valley, see Diagnostic Survey (2003), Sections TV-C I a, and b. 5 Due to more than doubling of the irrigated area in the Mill-Karabakh Plain since t1940, the draining capacity of the K-1, K-2, K-3, the Mill-Karabakh as well as the intra-farm collectors was greatly exceeded 6 Sections 2.4 2 - 2.4.4, SCP ESIA, Draft for Disclosure, op cit

21 01/03/03 quality of the deeper aquifer improves and the level of the top aquifer plunges to a depth that no longer affects topsoil salmisation. For instance, the quality of the deeper aquifer water greatly improves around Yevlakh to 1.2-1.5g/1, where they are extensively used for irrigation and domestic supply. On the right bank of the Kura River in the Kura-Araz plain, the greatest depth to the groundwater table, 2.8 to 3.5 m below ground surface, is in the alluvial zones of the Mill steppe. Well water levels in areas of shallow groundwater table (<1 m) have been on the nse between 1991 and 1998 due to insufficient drainage'.

Further to the west, alluvial fan deposits with high proportion of coarse-grained permeable sediments underlie the piedmont plain of the Geranboy-Ganja area. Recharged in the foothills of the Lesser Caucasus, these deposits comprise two transmissive zones: an upper, partially unconfined aquifer complex and a deeper confined aquifer system. The deeper aquifer system splits further north into several separate fresh groundwater-bearing umts. Artesian heads feed overflowing artesian wells that are used for irrigation. Further down along their flow pathways towards the centre of the intermontane basin and at greater depth, water are encountered that have sodium sulphate and sodium chloride salinity ranginig between 5-129 g/12. At times these waters contain significant concentrations of dissolved H2S and methane, endowing them with therapeutic properties.

In the Geranboy-Ganja area, the depth to the upper, unconfined aquifer ranges from over 25 m in the intefluves between the nvers that drain the northeastem slopes of the Lesser Caucasus Mountains, to less than 5 m in the nver valleys and in proximity to the Kura River and the Karabakh Canal. Still, only 8.4 percent of the total irrigated area is afflicted by shallow (<1.5m) groundwater3. The hydraulic conductivity of the upper aquifer typically ranges between 0.1 and 13.4m/day, and its transmissivity averages 20-40 m2/day. Beneath most of the entire area, the aquifer contams good quality, calcium bicarbonate water with less than 1g/l TDS.

Both the unconfined and the deeper, confined aquifers are tapped in the Geranboy- Ganja Piedmont Plain by scores of 100-150 m deep tubewells, as well as by spnngs and kherizes4 that are utilised for domestic, irrigation and industrial uses. In the Geranboy area, most of the water abstracted in recent years, between 238-312 thousand m 3/day on average, is used primanly for irrigation and to a much smaller degree for domestic supply.

4.3.1.3 Nakhchivan (Babek, Sharur). Soils: Light chestnut grey soils and grey land- meadow soils develop under the dry, continental climate of Nakhchivan's lowlands. Eight soil types are recognised, including high-density, low-porosity clay-rich meadow grey soils in the Sharur massive; humus-rich, low-density ancient irrigated meadow soils; low-density, high porosity and permeability clayish, skeletal pririitive meadow soils; and low-humus saline soils with high-cation exchange capacity, further subdivided accordmg to their salt constituents. The latter are developed in the Araz plain and other low-lying areas5.

Small flow modules of the drainage collectors have resulted in severe waterlogging in the low- lying raions, particularly Sharur and Babek, where 6.9 percent and 3.7 percent of total irrigable lands, respectively, have subsurface water shallower than 1.5 'm below surface. Local population

' Table 2.2, EA and Monitoring, op cit 2 Coastal Profiles, Azerbaijan; Caspian Environmental Program website, op. cit. 3RIDIP 11 Feasibility Study, Table 4.3 4 A hydro-gravity system that taps groundwater at the aquifer and conveys it through subsurface galleries that are illuminated and served by vertical shafts. For additional information on this traditional technology, see Kehriz harayi, International Organisation for Migration (iOM), Nakhchivan, Dec. 2001. 5 For detailed descnption, see Annex C (Asadov's report).

22 01/03/03 in Babek complained about soggy floors in their residences, and subsidence of a school building and flooding of pumping stations were observed first hand.

Groundwater: Nakhchivan's groundwater resources are extensive and equal to about one third of the surface flow. The annual recharge in the plains is 329m3 mnllion, and in the mountainous areas about 8.9m3 million; about 15 percent of the total amount is tapped, pnmarily for irrigation and domestic use.

Two subsurface artesian hydrologic basins, the Nakhchivan and Ordubad, cover over 90 percent of Nakhchivan. Artesian water resides in two main aquiferic systems: (i) in Recent and Quatemary units along the Araz River and in the Sadarak and Sharur plains, where hydraulic conductivity ranges between 10-22 n/day, water is generally of good quality (0.3 to 0.7 g/l, primarily bicarbonate), however salinities reach up to 1.9 g/l, dominated by chloride-sulphate salts; (ii) ubiquitously distributed artesian water in top Miocene sediments, where TDS range between 0.6 g/l (bicarbonate-sulphate) in shallower horizons, and up to 2.2-8.5 g/l in deeper units, and pressure amounts to 24 m above surface (bicarbonate-sulphate and bicarbonate-chlonde).

Non-pressurised subsurface water are recharged in the mountain areas and flow first towards the Araz River at a depth range of 20-40 m below surface, then downward along the river's valley where they are located in depths of 0.5-2.5 m. Hydraulic conductivity is between 10-20 m/day and 0.5-5 m/day, respectively. The TDS increases from the foothills towards the Araz, with TDS values ranging between 0.5-10 g/l.

There are over 350 kherizes, primarily in the Sharur and Ordubad raions, totalling 142 km of galleries and 3671 shafts. Their total discharge is about 2 m3/sec (63 m3 million/year). While a modest amount, the water's potable quality and the potential to double the actual capacity )y rehabilitation of dilapidated systems', renders kherizes an attractive target for restoration, as iandy water sources for domestic use and the irrigation of small, high value-added crops (e.g., vegetable garden plots).

4.3.2 Biological Environment

All project sites, with the exception of sites in the Autonomous Republic of Nakhchivan, fall within the ecoregion described above as Azerbaijan shrub desert and steppe (see Section 3.1.6). The predomunant land use activities in all project zones are agriculture and livestock raising, with little room left for the natural ecosystems. The flora and fauna of the agricultural lands is generally limited, although it has been uruntentionally enriched by the present crisis of the agricultural sector. Many uncleaned drainage canals have tumed into small wetlands, growing common reed and supporting a population of reed warblers and small raptors as well as terrapins and turtles. Furthermore, the monocultures of the Soviet period have, in many places, been left to fallow and/or used as winter pasture, and presently support a flora of salinity resistant grasses and herbs such as glassworts and, when sufficient time has passed, of bushes such as tamarisk. However, such on-farm biodiversity is still relatively limited. Main animal species include small rodents, mainly considered as pests, as well as common birds such as bee-eater 2, tree sparrow, house sparrow, sand martin, roller, magpie, starling, rook, camon crow, white stork and herons.

4.3.2.1 Northern Zone (Khachmaz). Most of the project area in the northern zone has been converted to intensive agricultural use: imgated agnculture, orchards and vineyards,

As indeed undertaken lately by IOM; see reference above. IOM estimates that 1,800 ha can be irrigated by the current discharge. 2 See Annex I for Latin names

23 01/03/03 rainfed agnculture as well as pastures on unirrigated, rocky, salty or wetland. The limited flora and fauna of the agricultural lands is broadly similar to that described above. Bird diversity, however, is relatively high, although lower than in the surrounding natural landscapes. Grainfields are dominated by skylark and corn bunting in the summer, and rock bunting and yellowhammer, together with skylark in the winter. In vineyards, typical species also include quail and turtle dove. Among mammals, orthoptera and rodents dominate on farmed lands, but wolves, foxes and jackals also occur.

Conceming natural ecosystems, the main landscapes in this project area are (i): seaside sandy vegetation of the coastal strip; (ii) low-lying landscapes with semi-desert vegetation, meadows, brushwood of semi-zerophitic shrubs, and low-land mixed broad-leafed forests from -27 to 200 m; (iii) foothill semi-steppe with meadows and fragments of sparse forests and bushes from 20 m to 500-600 m; and (iv) low-mountain woody landscapes from 500 m to 1,000-1,200 m. Different types of marshes occur on the coast, including open marine shallows with rich fodder supply and hence high numbers of aquatic birds; flood marshes growing couch- grass and ephemeric cereals etc.; and small swamping areas emerging from high groundwater table levels. On the coastal zone, 31 species of mammals, 16 species of amphibians and reptiles and hundreds of bird species can be observed. Twenty species can be considered rare of endangered'.

Lowland forests of the coastal stnp of the Shollar plain are of particular interest since such large forest ecosystems do not occur in other project zones. These forests are characterised by vardim oak, downy oak, Caucasian hombeam, and white and black poplar associated with smooth-leafed elm, field maple, -and oleaster. Understory is composed of hazel, hawthom and black hawthorn, medlar, etc. They provide habitat for a great variety of land mollusks, insects, amphibians and reptiles and a rich avifauna, including 331 species and subspecies, of whuch 90 are settled. Dunng summer time, chaffinch,. nightingale and great tit dominate whereas in the wintertime, spruce siskin and European robin are common. Common pheasant* and white-tailed eagle* are Red Book species2. Mammals in the forested zone are represented by wolf, badger, otter, and, more rarely, jackal, stone marten and wild boar.

The small rivers of the zone, in particular Velvelichay, Qudyalchay, Qarachay and Qusarchay, have been important for their fisheries. Besides carrying mountain stream fish in their upper course, they provide spawning ground for semi-migratory fishes of the Caspian. However, reduced river flows due to water abstraction and overexploitation by local populations have had a negative impact on the lower course fish populations.

4.3.2.2 Southern (Saatli, Sabirabad, Imishli,: Aghjabedi, Zardab) and Western Zones (Geranboy). As in the northern zone, the main land use in these project zones is agriculture. Irrigated agnculture is practised on suitable elevated and well-drained soils near the mountainside as well as on the Kura-Araz lowland. Towards the salimsed and deficiently drained areas m the interfluvial depressions and near wetlands, croplands are gradually replaced by pastures.

Second to agnculture, desert and semr-desert are the most common ecosystems in these project zones. Most of them can be considered semi-natural even if they suffer from significant human disturbance, e.g., grazing. One of the most typical desert communities comprises mugwort and saltwort species, associated with ephemerals and ephemeroids such as grass, bulbous meadow grass, etc. More saline soils are typically covered by different saltwort species communities accompanied by certain spring herbs, bulbous meadow grass and bur-

' See Annex B. 2 From here on, all species listed in the Red Book will be marked with an asterisk.

24 01/03/03 medick. A third type of desert community is dominated by seablight species associated with bur- medick, wall barley, and grass as well as some halophytes. As to semi-desert communities, they are most frequently dominated by mugwort, but saltwort semi-desert communities also occur.

Woodlands in these project zones are rare, small and fragmented, and often planted. The vegetation is dominated by ash species, pedunculate oak, vardim oak, bramble, mulberry and smooth-leave elm. Woodland grape* and pomegranate*, included in the Red Book of Azerbaijan', also occur. Some natural shrubland is also found, dominated by salt-resistant tamansk and bramble species. Despite their limited size, these ecosystems provide an important habitat for the fauna of the area.

Typical animal species in the desert/semn-desert and scarce wood/shrublands in the project zones include: brown hare, rodents, such as red-tail sanderling, house mouse, common wood mouse, striped field mouse and Gunther's vole, and carnivores, such as red fox, golden jackal, wolf and Eurasian badger. Reedbeds along canals and other wetlands are habitat for brown rat, wild boar and coypu. Animal species included in the Red Book of Azerbaijan that occur in the project area include reed cat* and pygmy white-toothed shrew* in the Kura-Araz lowlands and, possibly, marbled polecat* and porcupine*. Birds such as crested lark, lesser short-toed lark, northem wheatear, isabelline wheatear, Finsch's wheatear, calandra lark, little bustard, and bittern are commonly found. Bird species of conservation concern present in the area include raptors such as Eurasian kestrel, lesser kestrel and the tawny eagle*, as well as ground nesting species such as chukar and black francolin*. On wetlands (see below), bird diversity is much higher. Typical reptile species inhabiting desert ecosystems include gecko, lizards, blunt-nosed viper and spitr-thighed tortoise*.

The turbid flow and unstable bed of the Kura and Araz nvers restncts vegetation to side channels, silty pools and seasonal meanders. Common reed, mint, water cress, water-milfoil, pondweed and buttercup species occur. The nverside vegetation compnses scrubs and trees such as:tamansk, bramble, rose, oleaster, willow, pomegranate*, and poplar species as well as swamp species like common reed, sea club rush, water-pepper and galingale. Smaller rivers in the project areas are typically seasonally or perennially nearly dry but still able to support tamarisk and common reed and, occasionally, milk thistle, sun spurge, saltwort and various grass species.

Riverine ecosystems have changed considerably due to anthropogenic pressures. First, regulation of rivers significantly affects flooding levels and thus floodplain flora and fauna. Moreover, the abstraction of irrigation water has adverse impacts in particular during the dry season when river flows are sometimes decreased below ecological minimum flow requirements. Finally, ecosystems are affected by lower water quality, caused by pollution from human activities. Other anthropogenic disturbances such as gravel extraction from nverbeds have created additional pressures.

The flora of the imrgation canals is largely limited to swamp species such as common reed, bulrush, sea club rush, galingale, water-pepper and stranglewort. Along canal banks, purple loosestrfe is common as well as tamarisk, bramble, and orache species and camel prickle. In

However, these two species are not likely to be included in the next edition since their status is not considered threatened The Red Book of Azerbaijan was published in 1985 but it is based on data from 15-20 years earlier Data on the status, abundance and distribution of fauna and flora are thus very outdated and the book does not illustrate well the actual status of endangered species in Azerbaijan. More up-to-date information can be obtained from the IUCN Red Data Books, although these only identify whether a globally rare/endangered species occurs in Azerbaijan, not its status there For list of species included in the Red Book of Azerbaijan and on the IUCN list, see Annex B

25 01/03/03 some cases, salt-tolerant species such as common glasswort and sea lavender also grow on the banks. Glabrose liquorice*, a useful medicinal plant, can also be found.

In ponds and ox-bow lakes along the Kura and Araz rivers, vegetation is dominated by common reed and tamarisk species. In marshes, occurring in low-lying areas and often inundated seasonally, the species diversity is higher, providing also animal fodder and medicinal plants. The slight salinity typical to these wetlands has resulted in plant communities consisting of glabrose liquorice*, sea lavender, camel prickle, bermuda-grass, saltwort and orache species but also including shrub species like tamarisk.

Typical bird species in wetlands include heron, egret, coot, mallard and gull (see below on important wetland habitats). As for reptiles, freshwater terrapin and European pond terrapin (both of conservation importance), European grass snakes and water snakes are common.

More than 50 fish species occur in the Kura and its tributaries, with over 20 having some commercial value. Two main groups can be distinguished: Cyprinids including common crab, Caspian roach and bream, and migrants from the Caspian spawning in the river. Fish species of conservation importance include white-eyed bream, blackbrow, sturgeon ship, chanan barbel, murtsa barbel, Caspian lamprey, chub, bleak species and brown trout. Some drainage canals also carry fish in their lower course.

4.3.2.3 Nakhchivan

The ecoregion of Eastern Anatolian montane steppe is descnbed in section 3.1.6. The project sites are mainly located m the valleys and, possibly, ini the lower part of the foothills. The main land use in these areas is agriculture (cropland and pasture) with very little room left for natural ecosystems. Small planted forest parcels also occur. Wetland habitats mainly consist of the river Araz, smaller rivers of which most are seasonal, constructed water reservoirs, and irrigation and drainage canals. River ecosystems are marked by intensive irrigation water withdrawals which dry even permanent rivers (with the exception of Araz) for the most part of the year. The ecosystems of Araz and its large reservoir suffer from heavy loads of mainly transboundary pollution. Several species of fish occur in the Araz, m the upper range of the smaller nvers and in some reservoirs. Wild fauna in the valleys mainly consists of rabbits, squirrels, foxes and wolves as well as storks, sparrows and other common birds.

4.3.2.4 Protected Areas."2 (see Map 3) Ag-gel State Protected Area was established in 1964 on an area of 9,173 hectares in the Aghjabedi and Beylegan raions. To strengthen the protected status of the area, a part of it, and 4,400 ha, was established as a State Reserve in 1978. A further 782 ha were added to the reserve in 1987. The protected area purports to preserve and restore the number of nesting, migratory and wintenng birds, waterfowl-wader birds, little bustard, wild boar and others living on the Ag-gel Lake and the surrounding wetlands as well as to breed commercial fish species. Some 500 hectares of the Ag-gel area were designated a Ramsar site in 200 13.

l Two categories of Protected Areas exist in Azerbaijan State Reserves or Strict Nature Reserves (zapovednik) purport to preserve ecosystems and their constituent species in a natural, untouched state. The land is owned by the State, and all human activities are prohibited without special permission. State Protected Areas or conservation areas (zapaznik) aim at preserving elements of the natural landscape, including natural ecosystems Land is not necessanly State-owned, and certain activities are permitted provided they are compatible with the Protected Area's objective 2 For more details, see Annex B and Map 3. 3Ag-Gel fulfils three cnteria for the inclusion on the List of Wetlands of International Importance (according to the criteria adopted by the 4th and 6th Meetings of the Conference of the Contracting Parties to the Convention on Wetlands) These are l(a). [It] is a particularly good representative example of a natural or

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oW 4010 r02ri IOOI.n~~~~~~~xcltrx SAO CFTL \ :2a@i NganMonan ------w_ STTPSRE Located between the Kura and Araz rivers, Ag-gel Lake is a shallow (0,5-2,0 m) brackish lake whose size and salinity have varied over the years depending on its water supply. In the past, the lake was a seasonal freshwater lake, fed by the floods of the Kura River. In the latter part of the 2 0th century, the development of irrigated agriculture -- through discharge of excess water from the surrounding area into the lake -- led to an increase in its size (from 4,400 ha to 10,000 ha) and salt concentration. In 1985-87, the wetland area again decreased, following the construction of a dyke around the lake to protect its fisheries from saline drainage waters and to prevent its flooding to surrounding agricultural lands. Part of the area outside the dyke was drained and used as sheep pasture.

At present, Ag-gel is fed by drainage water from surrounding fields (collectors K-2, K-2. 1 and K-3 of the Mil-Karabakh drainage system). It flows into the Boz-Kobu wetland through a canal. The quality of inflowing water is low and, in particular during Soviet times, it carred considerable amounts of pesticides and nutrients. Consequently, high concentrations of ammonium and phosphorus as well as eutrophication symptoms were reported on the lake. Chlonde and sodium concentrations still exceed dnnking water standards, and salinity levels are high. Severe oxygen deficits occur in particular during warmer months and the rate of destruction of organic substances is rapid. This has had a strong adverse impact on lake fisheries with total fish catches declining by 10-12 times, and some freshwater fish species disappearing. If countermeasures are not taken, the lake risks turning into a highly mineralised isolated swamp.

The vegetation of Ag-gel is characterised by vast reed, cattail, bulrush and wormwood beds, open-water areas linked by reed-choked channels, saltmarsh fringes and semi- deset' islands with saltworts, etc. The diversity of water vegetation is high, with 42 species reported, including water-milfoil, shining pondweed and curly pondweed. Land vegetation consists of 40 species, representing both wetland and. semr-desert flora. In an island named Kardon, Bibersitein mountain tulip* is found.

Ag-gel is considered the most important wetland habitat for birds in Azerbaijan. At leastl 34 bird species have been recorded here, 89 of which breed in Ag-gel, including a colony of pelicans and storks (20,000-25,000 pairs). About 500,000 birds winter at the site. Species of global conservation concern include pygmy cormorant and marbled teal (breeding) and Dalmatian pelican, white-headed duck and white-tailed eagle (wintering), and the site supports more than one percent of the population of several waterbirds. A total of 20 bird species are listed in the Red Book of Azerbaijan. Furthermore, six groups and 22 species of mammals, 6 species of reptiles, 4 species of amphibians and 13 species of fish live in Ag-gel wetlands.

The Ag-gel wetland is used by the local population for subsistence and small-scale commercial fishing and aquaculture as well as for grazing. The surrounding areas are heavily used for irrigated agnculture that affects the volume and quality of water inflow in the lake. The major threat to the wetland ecosystem is the considerable fluctuation in the water area and water salinity. In dry years, lack of water reduced the wetland surface and causes an increase in water temperature, thereby harming benthic life and reducing oxygen content essential for fish populations. Poaching and drowning of birds in fishing nets are also clear concerns. The problems of protected area management in Azerbaijan (see section 3.1.6) severely restrict the ability of the Reserve staff to ensure the protection of the area. The MENR recognises the critical situation and, in partnership with a German foundation Succow, has launched a project "Saving the Ag-Gel Lake" that envisages the restoration of water circulation balance by means of repainng and setting up hydro-technical structures to ensure that there is a sufficient level of water inflow from collectors to the lake. 01/03/03

In Nakhchivan, important sites for birds and other fauna in are mainly located in the mountainous part of the Republic. In IDSMIP raions, they include Mount Ilandag and Negram mountains. Mount Ilandag is situated on low, semi-arid mountains surrounded by a semi-and plain in the Southem part of the Republic. Breeding bird species include several raptors (chukar, white-throated robin, Finsch's wheatear, red-billed chough, rock sparrow, trumpeter finch, lesser kestrel. Nepram mountains in the Westem part of the Republic are a semi-arid low mountain area which also supports several raptor species (chukar, black-bellied sandgrouse, red-billed chough, rock sparrow, trumpeter finch, lesser kestrel, steppe eagle).

The project zones also harbour certain other sites where plants listed m the Red Book of Azerbaijan are found. These are listed in Annex B. According to the Law on Wildlife, the owners of the lands that are inhabited by Red Book species must comply with the arrangements for protection of these species and create conditions that ensure their natural restoration.

4.4 Description of Socio-Economic Context

Much of the following description of the socio-economic context in the project areas is drawn from the social assessment performed as part of project preparation in six WUAs in representative project areas'. A more detailed discussion of these issues can be found in the social assessment.

4.4.1 Population. Azerbaijan is at the beginning of a demographic transition, with a young and growing population and a decreasing birth rate, as fewer farmlies can afford large numbers of dependants. The transformation from a salary-based rural economy to a peasant society and the detenoration of basic rural services has created enormous pressure on rural families. The average family size in the project areas studied was five per household. However, most famnlies were living in extended families.

4.4.2 Rural Poverty. As noted above in Section 3.2.5, 42 percent of the rural population was considered poor by SSC estimates in 2001. There are, however, regional variations in this rural poverty, as reflected in the differences in poverty rates in the various project areas. The northern region (including Khachmaz) ranks highest in the country at 58 percent, while the southern region (including Aghjabedi, Sabirabad, Saatli, Zardab, and Imishli) at 51-54 percent and western region (including Geranboy) at 50 percent, rank somewhat lower. Nakhchivan (including Babek and Sharur), at 45 percent, is closest to the national average, even below Baku at 49 percent2. Official employment figures are low in the project areas studied (between 20-40%) and it is impossible to calculate the level of informal employment and self- employment. There is a significant amount of out-migration from rural areas; usually younger people migrating to towns and abroad looking for employment opportunities that will partly be used to bolster household income. Rarely does this involve the whole family leaving a village and indeed the population of the areas appears to be stable. Agncultural income in cash and in-kind is the biggest source of income for households and income from employment is the second most important source. Household livelihood strategies are diversified. Significant remittances are received in some households from non-agricultural employment in urban centres or abroad. Employment, pensions and social payments provide an important safety net for the poor households.

4.4.3 Public Health. Although the state of public health is gradually improving nation-wide, (see Section 3.2.5), the population in the project areas still suffers from a number of l Baumann, Pan Social Diagnosis (December 2002) 2 Statistics from State Programme on Poverty Reduction and Economic Growth (2002), op cit.

4 01/03/03 infectious and water-related diseases. Malaria is a primary concern in most of the imgated agricultural raions of the country, particularly in the Kura-Araz lowlands where drainage has traditionally been a problem. With the assistance of the WHO, UNICEF and other international organisations, the MoH has achieved good results in preventing and treating malaria. Although the number of reported cases of malaria nation-wide has decreased dramatically in recent years (from a high of 13,000 in 1997 to no more than 1,000 in 2001 and around 500 so far in 2002), a number of the project area raions continue to report a higher than average incidence of cases. Data from MoH district offices', for example, indicate that Sabirabad (48), Saatli (37), Imishli (30), and Aghjabedi (30), reported some of the highest numbers of cases in the country in 2001. Nakhchivan (34) ranked among the more elevated areas as well. Dnnking water-related illnesses, such as stomach infections, salmonella, dysentery, and hepatitis, continue to plague the rural populations in the project areas where irrigation canals or even drainage collectors are used for potable water sources. Because these illnesses are traditionally under-reported by the local populations, MoH data on them are not completely reliable.

4.4.4 Education. As is the case in most of Azerbaijan, the education level of most household heads is high in the project areas studied. Most have at least a high school education and illiteracy is almost non-existent. Despite the rising indirect costs of education, school attendance is a priority and even the poorest households have all children at school. However the quality of basic and secondary education is deteriorating sharply due to the lack of basic teaching materials, poor teacher training and salanes, and poor physical infrastructure. Households that can afford to often supplement the schooling of their children with private instruction at home. Higher education has declined significantly, especially amongst women, and poor students are likely to bevexcluded from attending higher education institutions because of the rising direct costs.

4.4.5 Irrigation, Drainage and Drinking Water. Irrigation and drainage are the main constraints to agricultural production in the project areas studied. Large areas lie uncultivated due to a lack of irrigation and drainage. The exact amount lying uncultivated is impossible to estimate. The data from SAIC offices on the area are not reliable. Local frustration at the lack of irrigation is high. In some instances water paid for in advance is not delivered at all orzonly a fraction of the expected water is delivered too late. In many instances people do not cultivate their land at all because they can not be sure of receiving irrigation. Uncertainty about the amount of water needed for various crops is high. Few people understand the payment system or the regulations goverming irrigation. The general level of ignorance of both technical and institutional aspects of the irrigation system is a major contribution to poor management. Local WUAs take measures to repair their irrigation and drainage systems. The normal course of action is to collect money and labour from households along a section of damaged canal to hire some machinery. This rehabilitation is usually a temporary emergency measure.

Drinking water is a concern in the project areas studied as most WIUAs have problems accessing clean drnking water. In many cases people are dependent on irrigation canals and rivers for their drinking water. In some places water is filtered through special stones in a tank before drnking. In other places the water is trucked into the village from the river and stored without treatment in household tanks. In some areas drinking water comes from artesian wells, a slightly better situation in terms of water quality and availability. Many families also have household pumps that are used to get water for household needs like cooking and cleaning, reserved for such munimal uses because of very poor quality.

Internally Displaced Persons. There are IDPs in a number of the project areas. The IDPs did not get land during the privatisation process, but many of them are involved in agricultural production, either through leasing land or as agricultural labour. Most IDPs are an

Statistics obtained from MoH in Baku, December 2002

5 01/03/03 institutional part of the village community with their interests formally represented by an elected member to the Belediye. Further, the arrangements under which IDPs get access to both land and imgation may differ from those of other water users. The IDPs often have preferential access to leases on Belediye land and often have preferential access to water. These may present potential areas of conflict for the project. Finally, the IDPs have a higher level of poverty and vulnerability than other social groups in Azerbaijan. They have smaller average family sizes and are more likely to be female headed. Their poverty and vulnerability is reflected in all human development indicators such as income levels, health and education. They are therefore the least likely of all social groups to want to invest in the irrigation infrastructure or to be able to pay for increased water costs.

4.5 Description of Stakeholders and Beneficiaries

The stakeholders for the IDSMIP include the national and local institutions directly involved in the irrigation system (i.e., SAIC and its ralon level offices) and in its agricultural, environmental and social impacts (i.e., the MoA, MENR, MoH and their local offices), local government institutions (i.e., the Ijra, and Belediye), local associations (i.e., WUAs) and non- governmental organisations (NGOs) in the project areas, and the beneficiaries themselves, the farmers, farm families and local population likely to benefit from the projecti. The EA team met with representatives of most of these stakeholders to discuss environmental and social aspects of the project (see list of stakeholders met in Annex D). A brief description of the various stakeholders and their attitudes/interests in the IDSMIP follows.

4.5.1 Farmers, Farm Families, Local Population. The intended beneficianes of the IDSMIP are obviously the farmers reached through- the WUA institutional development and infrastructure rehabilitation components of the project. They will see the direct benefits of the project in terms of better organisation and management of the irmgation system, as well as rehabilitation of critical infrastructure on their farms. They also will pay for these benefits in recalculated ISFs and in a portion of the investment costs for rehabilitation. The social assessment confirmed the willingness of most farmers to pay for imgation improvements2. In addition to the farmers themselves their families, their neighbours, and the local population should benefit indirectly from the project in terms of increased agricultural output, improved employment opportunities, and expanded economic base. The EA team met with a number of farmers and other locals in the four project areas visited m both formal and informal settings.

4.5.2 Water User Associations. The primary institutional beneficianes, and m fact the means the project will use to reach the farmers, are the WUAs that will participate in the project. The WUAs will benefit from the capacity building and training in the institutional development component of the project (see Section 4.1) and those that meet the eligibility cntena will benefit from the infrastructure rehabilitation component. Many WUAs lack technical and managerial expenence, have trouble collecting the ISF, and experience frequent conflicts over water distnbution3 . Thus, strengthening the WUAs to become participatory, self-sustaining organisations capable of operating and maintaimng the 'imgation infrastructure represents a significant challenge for the IDSM]IP. The EA team met with a number of WUAs, both leaders and members, in the four project areas visited; a strong WUA representation participated in the local consultation held in Sabirabad (see Annex D).

For a more detailed discussion of some of these stakeholders, see the social assessment prepared for Diagnostic Survey, Baumann, Pan: Social Diagnosis (December 2002) 2 Social Diagnosis (December 2002), op. cit. 3Social Diagnosis (December 2002), op cit.

6 01/03/03

4.5.3 Local Government Institutions. Although less clear, the local institutions of government, the Belediye and the Ijra, should benefit from and have an interest in the IDSMIP in terms of irrigation infrastructure improvements, agricultural productivity, and water management. The Belediye, as the elected self-government at the village level, has an obvious interest in the social and economic base of the village. The Beledlye manages village assets, infrastructure, and common lands, but often lacks technical and financial means to do so effectively. The Ijra, the local executive authority, is the most decentralised level of state public administration. It too has an interest in the social and economic well-being of the villages within its jurisdiction but has closer ties to central and raion officials than the elected members of the Belediye'. The EA team was not able to meet with local government officials either from the Belediye or the Ijra during its visits to the four project areas.

4.5.4 Non-Governmental Organisations. The NGO community in Azerbaijan, whether national or local, has an interest in representing and protecting the interests of its members with respect to the IDSMIP. This may involve participating in project planning and decision-making, implementing project activities (e.g., training, information collection or dissemination), and organising local support and participation. The EA team met with a large number of national environmental and social NGOs in Baku and a smaller number of local NGOs in visits to the project areas (see list of NGOs in Alnex D). The EA team used two recommended NGO experts as local consultants in preparation of background and baseline information for the EA. Further, NGO representation at the publicly advertised, national consultation in Baku was significant (see Annex D).

4.5.5 National Government Institutions. SAIC, as the govemment sponsor and imnplementing agency for the IDSMIP, is the pnmary national government stakeholder. SAIC and its' local offices at the raion level obviously stand to benefit from both the institutional development and the infrastructure rehabilitation components of the project (see Section 4.1). SAIC's limited technical and financial capacity have hampered its operation and maintenance of th1 country's irrigation system. The IDSMIP will address many of these capacity limitations. Additional national government stakeholders are the MoA, with its overall responsibility for the agriculture sector, the MENR, with its mandate to protect the country's water resources and natural heritage, and the MoH, whose public health programmes address a number of water- related diseases. The EA team met with numerous officials from all of the national government institutions to receive input for the EA. Representatives from all of these institutions also participated in the national public consultation in Baku.

Social Diagnosis (December 2002), op cit

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5. ASSESSMENT OF PRINCIPAL ENVIRONMENTAL ANID SOCIAL IMPACTS AND PROPOSED PREVENTIVE ACTIONS AND MITIGATION MEASURES

The IDSMIP is designed to provide economic, social, and environmental benefits, through its development of WUAs and rehabilitation of on-farm imgation and drainage infrastructure, to the farmers, farm families, and rural communities where the project will operate. Many of these positive impacts of the project are obvious, including improved agncultural productivity and enhanced management of water resources and soil fertility. There are also, however, potential negative impacts on the social and environmental conditions in the project areas, which will require attention, preventive action, and appropriate mitigation measures in the planning, design, construction, operation, and maintenance phases of the project. Moreover, the EA identified a number of global sector policies in Azerbaijan, over and above the focus of the IDSMIP, which will require reform if social and environmental impacts are to be fully addressed at the national level. Table 5.1 provides an overview, in summary matrix form, of these principal environmental and social impacts and the proposed preventive actions and mitigation measures identified by the EA for the potential negative impacts. A discussion of these impacts and the preventive actions and mitigation measures proposed follows.

5.1 Anticipated Positive Social and Environmental Impacts

5.1.1 Improved Agricultural Productivity. In improving agncultural productivity of individual farmers and the agriculture sector as a whole, the IDSMIP supports the Country Assistance Strategy sector-related goal of "sustainable growth in agriculture and reduction in economic vulnerability of rural people."' There is no doubt that agricultural productivity declined in Azerbaijan after independence, among other reasons,-because of the collapse of the off-farm and on-farm irrigation and drainage systems built by the formner- Soviet Union. The result was -decreasing delivery of irrigation water, increasing salinisation of soils, and expanding areas of fallow agricultural land. The infrastructure rehabilitation planned for the IDSMIP should improve productivity by both regularising and increasing delivery of irrigation water and by expanding the area of irrigated lands by bringing existing fallow lands back into production2. Use of low quality drainage water for irrigation3 would also be avoided when adequate supplies of fresh irrigation water would become available. Furthermore, the strengthening of the WUAs, besides ensunng improved payment of water tanffs, should improve water resources and soil fertility management on agricultural lands and promote consistent operation and rnaintenance of imgation and drainage structures, thus avoiding the problems that occurred with thelcollapse of the former system.

5.1.2 Increased Farm Income, Alleviation of Poverty. Efforts to quantify the economic and social benefits of improved agricultural productivity are necessarily conjectural, however, the estimates of the project formulation team give some indication of their anticipated extent: expected agricultural gross benefits from the project'are estimated at US$64/ha by the end of the project, US$154/ha by year 10 and US$415 ha after 25 years4. These benefits are a result of several factors including increases in yield (see above), return to cash crops, and expected synergies with other agricultural development projects providing credit, extension services, etc.

' World Bank, Azerbaijan Country Assistance Strategy, November 2001. 2 See Diagnostic Survey Draft Mission Report - Agnculture and lmgation, February 2003. 3 This is not a widespread phenomenon but is reported to occur on some potential project sites. 4 Diagnostic Survey Draft Mission Report - Agriculture and Irrigation, February 2003

8 Table 5.1 Principal Environmental and Social Impacts-and Proposed Preventive Actions and Nliftgation Measures: A Summary Mafrix-

AnticipatedqP,osiriN'e Socia1,and!En6:ironmen1a1lunlpacls ; _ l t i1. ; I. ,Social: * Improved agricultural productivity as a result of rehabilitated imgation and drainage systems and improved WUA management * Increased farm income as a result of improved agncultural productivity; alleviation of rural poverty in project areas * Reduction in water-borne disease vectors from improved drainage systems; improvements in health of beneficiaries * Reduction in water user conflicts through improved water distnbution and WlA management * Provision of canal reeds for light construction, basket weaving and animal stock fodder Wvater resources management: - * Reduction in water losses through improved operations and maintenance of irrigation and drainage systems; decreased risks of soil salinisation and waterlogging and improved water availability for downstream users . Improved water resources management by strengthened WUAs and a more reliable water supply to provide the basis for realistic user fees that reflect the actual value of water

;.Agticuiltural soils:'-*-.- A+ 4 *,/ * Reduction in soil salinmsation and waterlogging as a result of improved on-farm irrigation and drainage systems

Construction, operationand' Anagement: - ' '- m ., ' -''; >' -. - - - . Improved imgation and drainage system management, operation and maintenance under strengthened WUAs 01/03/03

PotentialNegative Environmental and Social Impacts Proposed Preventive Actions and Mitigation Measures Construction impacts: * Disturbance from small-scale on-farm construction * Environmental covenants in bidding documents activities: interference with access and agncultural activity, * Environmental management guidelines for construction contractors rubbish, noise, mud and dust; damage to vegetation; * Preparation and implementation of site-specific environmental management plans disturbance of wildlife and related staff training * At ecologically sensitive sites, scheduling works with consideration of periods critical to wildlife; reporting of damage to environmental authorities; definition of appropriate measures * Compensation for farmers suffering significant crop and/or land losses as required by Azerbaijani legislation * Regular site inspections to ensure compliance * Disturbance from larger-scale construction activities (e.g. * In addition to above, at Bahramtepe: minimise dredging; rehabilitate fish pass; Bahramtepe headworks): in addition to above, water and review and, if needed, upgrade measurng equipment soil pollution, disruption of hydrological regime * Improper disposal of sediment excavated from canals and * Pre-construction sediment sampling. Preparation and implementation of site plans; drains and of reinforced concrete/metal debris during reuse of sediments (where appropriate) by spreading on fields or disposal ensuring rehabilitation, operation and maintenance hydrological containment (e.g. road infill) . Provision of sampling results and related use and disposal guidelines to WUAs for future maintenance works * On sites where substantial volumes of concrete/metal waste are expected, preparation and implementation of waste management plans Water resources management: * Decrease in water quality from contammnation by pumping * Proper fuel storage, containment and disposal at pumping stations station waste

Degradation of agricultural soils: * Soil and channel erosion resulting from existing water * Levelling land and field drainage to munimise erosion potential management practices * Relining canals susceptible to erosion, rehabilitation of associated hydraulic structures * Training WUAs to improve water management practices * Inspection and removal of unauthorised connections to canals/drains

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. Waterlogging, salinisation and leaching of nutnents from * .Rehabilitation of drainage systems together with irrigation canal rehabilitation soils * Proper water distnbution and management practices; careful irrigation administration and regulation in the field * Checking field drainage and, if needed, clearing drains before irrigation season . Technical assistance and traming to WUAs to improve water management practices . Sub-surface water level and quality monitoring * Regular soil salinity measurement * Inspection and removal of unauthornsed connections to canals * Training in good irrigation practices (e.g. prevention of over-watering); introduction of crop rotation cycles Inipacts on,biodi%ersity.and habitat. .,. .,,i;' . Changes to hydrological regime or water quality of * Continuation of RIDIP wetland monitoring programme sensitive wetlands * Postpone on-farm infrastructure rehabilitation for WUAs whose dramage system is directly connected to collectors that discharge into sensitive wetlands until RIDIP monitoring results for the first two years are available * Provisions for mitigation measures (incl. natural vegetation filters in secondary drains; uncultivated buffer strips along field drains) as needed . Reduction of on-farm habitats (e.g., in buffer strips and o Identification of rare species and important habitats; design of site-specific small wetlands) mitigation measures together with local environmental authorities * Rehabilitation of forested shelterbelts

Public health and-social impacls: . . . * Increase in imgation water-related diseases (disease * WUA mspections to remove vector breeding areas on farms vectors) . Extension/traimng on vector control and proper drinking water practices (ADCP) . Conflicts over irrigation water management practices (e.g. * Technical assistance for SAIC to establish participatory and transparent process for allocations, distribution, fees, illegal diversions) allocating water to WUAs; equitable water allocation within WUAs * Training for development of VWUA conflict resolution strategies * WUA control on unauthonlsed/unplanned connections to canals/drains

* Inefficient use of water resources (unlined canals, flood * World Bank water sector review and strategy promoting policy and institutional irrigation, lack of measuring equipment, etc.) reform for integrated water resources management . Under-pricing of water/irrigation resources, impeding * Promotion of measures to increase irrigation efficiency: sediment filters, technical proper maintenance of irrigation systems and inducing training, and, in due time, introduction of piped irrigation systems, etc. over-consumption by upstream users * Survey of sub-surface water resources recharge and sustainable abstraction levels

3 From these direct agricultural gross benefits flow a number of important indirect benefits to the farmers and rural communities in the project areas. Assuming improvements in marketing agricultural products and agro-industnes over time, increased agricultural productivity should lead to increases in farm family incomes, improved employment opportunities on and off-farm, and an overall reduction in rural poverty in the project areas.

5.1.3 Reduction in Water-Borne Disease Vectors, Improvements in Health. Water-related diseases (e.g., malana) represent a real concern in rural communities in Azerbaijan, particularly in areas where stagnant water stands for long periods and irrigation and drainage canals do not drain adequately (see Section 4.4). These physical conditions, combined with the decline in preventive health care programs in Azerbaijan, have left the rural population vulnerable to common disease vectors (i.e., mosquitoes). By improving on-farm irrigation canal and drainage collector systems, the IDSMIP should reduce the areas of standing water where disease vectors multiply. Furthermore, improved operation and maintenance of the irrigation systems by the WUAs, supported by awareness campaigns regarding the hazards of water-related disease vectors, should encourage farmers and their families to take a more active role in improving health conditions in the rural areas.

5.1.4 Reduction in Water User Conflicts. Although the results of the World Bank's Rural Infrastructure Survey suggest that water user conflicts are not a significant issue (only 15 percent of respondents indicated that such conflicts represent a serious problem)', the project preparation team's social assessment did find conflicts over water distribution to be an issue in a number of the WUAs studied2 . The IDSMIP's improvements in irngation system management through strengthening of the WUAs and rehabilitation of cntical irrigation infrastructure should remove many of the bases for current conflicts (e.g., irregular delivery of water, questions regarding the system of payments, etc.) and have beneficial effects on the social harmony of farmers in competing with each other for irrigation water and in dealing with the local offices of SAIC who provide the irrigation water.

5.1.5 Provision of Canal Weeds for Multiple Purposes. The irrigation and drainage canal cleaning anticipated by the project will produce large quantities of reeds and brush. This organic matter can be used for livestock fodder, light construction, and basket weaving. In addition, at least some of the sediment fill dredged from the canals, provided that it is not contaminated by organic or other pollutants and of appropnate textural properties, could be used for replenishing the fertility of adjacent cultivated areas.

5.1.6 Reduction in Water Losses. Currently, la significant portion of the water channelled through the distribution system is lost by combined infiltration, evaporation and evapotranspiration (according to Armitage 3, it is likely that some 20 to 25 percent of water is lost by seepage and a further 20 to 25 percent by tail escapes and illegal offtakes). These water losses frequently result in the elevation of the local groundwater table, soil salinisation and waterlogging. The irrigation system rehabilitation activities of the IDSMIP should curb many of these water losses. Removal of vegetation in the on-farm irngation systems would reduce losses by evapotranspiration. Reduction of unauthonsed off-takes (e.g., to private fields, household plots, and for domestic supply and watering livestock) and breakage due to damage and neglect would significantly raise canal flow and reduce seepage. Improved canal management and configuration of cultivated plots, by improving application efficiency, would reduce the amount of water lost by tail escapes and seepage losses. Additional water savings also are expected following project installation of cross regulators, control gates and hydroposts, thus improving l World Bank, Azerbaijan Rural Infrastructure Survey, January 2001. 2 See Baumann, Pari: Social Diagnosis, December 2002. 3Diagnostic Survey Draft Mission Report - Agriculture and Irrigation, February 2003 01/03/03 Draft management and monitoring of water on-farm, as well as with a rational program for rotation and control of water supply to irrigated fields throughout the WUAs, based on scientific and economnic considerations1.

5.1.7 Improved Water Resources Management. Azerbaijan's semi-arid climate makes its agriculture heavily dependent on Irrigated cultivation, occupying about 85 percent of the total cultivated area . The low flow sustainable yield of the Kura-Araz basin, which supplies close to 90 percent of the water resources of the country, is already fully committed. The IDSMIP's support for WUAs, combined with more reliable and spatially extended supply of irrigation water to downstream farmers, is the first step towards revision of the current concept whereby water is considered as virtually a cost-free commodity. The project's installation of better irrigation water measurement structures will also contribute to more rational water management. Further, rehabilitation of the irrigation systems will allow for eliminating illegally established groundwater and river water abstraction sites and thus enable better overall control on water use. With higher crop yields and effective decentralised organisation to keep the lower tiers of the irrigation system in good repair, an increase in the collection rate of user fees would generate, in pnnciple, the basis for funding canal maintenance on a recurrent basis.

5.1.8 Reduction in Soil Salinity, Sodicity and Waterlogging. Properly executed rehabilitation by the IIDSMIP of the off- and on-farm drainage system should have a positive impact on the large tracts of poorly drained cultivable lands. These are located pnmarily close to the confluence of the Kura with the Araz Rivers, in the raions of Sabirabad, Saatli, Imshli and Agjabedi. Presently, groundwater shallower than the critical 1.5 m depth prevails in about 17 percent of the imgable land in these raions. The depth of the water table is critical for the incidence of secondary salinity, and with certain chemical composition and grain properties of groundwater and soils, respectively, can result in soil sodicity that is toxic to crops. Salinty is particularly prevalent where the groundwater itself is saline, and where accumulated salts are not leached periodically. Annual leaching of the soils, mandatory in the Soviet period, has practically ceased following independence. Reduction in soil salinity and sodicity would improve the yields of-salt-sensitive crops. Furthermore, waterlogging that currently causes hardship in some low- lying rural residential areas would be alleviated.

5.1.9 Improved Irrigation and Drainage System Management. As has been noted, after gaining its independence from the Soviet Union in 1991, Azerbaijan witnessed the collapse of the large-scale agriculture and irrigation systems the Soviets had put in place. The transition from the large collective farms to the small, privately held plots has not been an easy one, with the operation and maintenance of the complex irrigation and drainage systems slowly deteriorating dunng this period. The thrust of the IDSMIP is to ensure that this will not happen again through the empowerment of those most interested in maintaining adequate irrigation and drainage systems, the water users themselves. The institutional development component of the IDSMIP, designed to build secure, responsible, and self-sustaining WUAs, is the key to ensuring improved and sustainable management of the rehabilitation works in irrigation and drainage infrastructure financed by the project. With this improved management should come the host of other environmental and social benefits already described above.

5.2 Potential Negative Environmental and Social Impacts

5.2.1 Impacts during the Construction Phase

1 For details, see Armitage, op cit , V-B.4 2 Azerbaijan. Water Supply and Sanitation, Sector Review and Strategy, Chapter 11, 2000.

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5.2.1.1 Construction impacts. Most of the IDSMIP's rehabilitation work will address the cleaning and desilting of tertiary level (on-farm) canals and drains and rehabilitation of the associated water regulation and measurement structures. The project will also rehabilitate a certain number of secondary level (off-farm) canals and drains, which may include canal cleaning and rehning, installing water control equipment, and rehabilitating crossings. These works will involve the use of heavy machinery (excavators, bulldozers) but in a relatively small scale and on lands already under agricultural use. The most significant construction impacts relate to the management of dredged sediments and construction debris, to be discussed separately below. Other potential impacts include: (i) interference with access and movement; (ii) disturbance of agricultural activities resulting from access restriction, soil compaction, trenching, etc.; (iii) rubbish, noise, mud and dust at sites and on access roads; (iv) damage to trees or other vegetation along the canals; and (v) disturbance of wildlife, in particular on sites close to ecologically sensitive areas (see Section 4.3.2).

Some project activities, such as headworks rehabilitation or pumping station repair, will involve more extensive construction works. The largest in scale will be the Bahramtepe headworks rehabilitation, which is likely to involve the following activities:

o Rehabilitation of the gate operation mechanism; o Replacement of all gates and mechanical and electrical equipment; o Stabihsation of scour holes and stillimg basins (possible addition of chute and baffle blocks); o Grouting of voids; o Structural repairs; o Upstream dredging to remove silt; o Downstream dredging to divert flows away from the unstable right bank; o Provision of all safety equipment, access ladders, platforms and hand rails; o Installation of flow measurement, recording and control equipment.

A notable size workforce and heavy machinery, including excavators, pile dnvers, and cranes, are likely to be required. The main materials to be used are concrete and steel. Additional potential environmental impacts from these construction activities may include: (i) water and soil pollution from improperly stored or used matenals/equipment or inadequate sanitation facilities; (ii) disruption of the hydrological regime, irrigation water supply and fisheries from possible temporary dammng or diversion of the stream flow; (iii) stress on local environmental resources such as drinking water or fuelwood; (iv) disruption of the river ecosystem as a result of dredging; and (v) damage to the natural landscape. With respect to pumping station repair, potential adverse impacts include river water pollution as well as harm to fish entering the pumps' water intakes.

Recommended Preventive Actions or Mitigation Measures. The EA recommends a combination of preventive, mitigation and monitoring measures to minimise potential construction-related impacts. First, all construction contracts should have standard environmental, health and safety covenants, as required by Azerbaijani legislation and World Bank procedures, in their bidding documents', and prior to awarding the contract, the PIU should ensure that potential contractors have adequate capacities to meet these requirements. Second, all contractors will need to adhere to the environmental management guidelines for contractors (EMG) prepared for the EDSMIP (see Annex G), as well as to any construction standards in force in Azerbalj an, that describe in detail the measures to prevent and mitigate construction-related environmental impacts. Third, preparation of a site-specific environmental management plan, and provision of related staff traimng, should be a condition of the contract. The scope of the plan and the traming

Such covenants are included in the bidding documents of the RIDIP.

3 01/03/03 Draft requirements should depend on the scale of the proposed activities. Fourth, in ecologically sensitive sites, the use of heavy machinery should be scheduled with consideration to critical periods for wildlife (bird and fish breeding) (see also Section 5.2.4.3). Finally, as required by Azerbaljam legislation, the project should, prior to starting construction works, reach an agreement on reasonable compensation for farmers who may suffer significant crop losses (e.g. orchards) as a result of any land disruption by heavy machinery'.

At the Bahramtepe site, additional mitigation measures should include: (i) scheduling, where possible, the works that may affect imgation water supply in the non-growth season to avoid unnecessary crop losses; (ii) avoiding any temporary damming or disruption of river flow; (iii) minirnsing dredging to avoid damage to the river ecosystem; (iv) rehabilitation of the fish pass to minimise damage to fisheries and to bring the headworks into compliance with legal requirements 2; (v) review and, if needed, upgrading of measuring equipment to monitor downstream nver flow and abstraction levels during and beyond rehabilitation works; (vi) estabhshment of an appropnate system for the collection and disposal of the debns collected upstream of the gates both for the duration of the works and beyond; (vii) prohibition of gravel extraction activities from the nverbed downstream from the headworks3. The environmental impacts should be further studied and appropriate mitigation measures designed as part of the detailed site investigations. Appropriate environmental expertise should be included in the investigation team.

At pumping stations to be repaired by the IDSMIP, special devices (fish screens or traps) should be installed, as required by the construction standards in force (see Annex A), to prevent fish from entering the pump intakes.

The environmental specialist from the PIU should conduct site inspections prior to, dunng, and upon completion of construction activities to ensure full compliance with the contract conditions and the EMG. Final payment to the contractor should be contingent on the inspection results, in particular concerming the requirement of restoring the site to its original condition upon the completion of construction activities. In sites adjacent to sensitive habitats, the PIU site inspection should record observations of any destruction and/or changes to wildlife/habitat, report these to MENR and determine, together with the MENR and the contractor, appropriate measures to prevent further damage. The EMG presented in Annex G should be penodically reviewed by the PIT in light of inspection results and adjusted, if necessary.

5.2.1.2 Management of Dredged Sediment and Concrete Debris. Adverse environmental impacts may result from the disposal of sediments and other material that the project wvill dredge from irrigation and drainage canals. The traditional way of managing dredged sediments in the project area is dumping them along the canal banks. This, however, may result in the loss of agricultural land and may lead to erosion and subsequent resilting of the canals. Furthermore, at present there is insufficient information concerning the level of sediment contamination. Where contamnnation levels are high, the excavated sediment may adversely affect the natural environment and also accumulate in crops intended for human consumption.

l According to the Azerbaijani legislation, uncultivated safety belts should be established along all canals for cleaning works. However, in some sites, the safety belt land is distributed to farmers and the fields thus border directly on the canals Furthermore, land over piped irrigation canals is often under cultivation and cleaning works could cause considerable damage to crops. 2 The Bahramtepe headworks has a 500 m long fish pass that circumvents the structure but it is reported not to be operating (IDSMIP Diagnostic Survey, Annex 2 Irrigation Infrastructure, 1 " Mission Report, October 2002) 3 Besides the risks of water pollution and disruption of riverbed ecosystem, these activities may affect the stability of the headwork structures

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Furthermore, on some project sites rehabilitation works may entail the removal of malfunctioning water control structures and concrete relining of selected sections of irrigation canals prior to their restoration or, in the case of headworks rehabilitation, demolishing existing structures prior to reconstruction. These works would generate potentially significant amounts of concrete debris, rebar steel and other metal scrap that, if indiscrimnately dumped, would damage landscape and result in pollution.

Recommended Preventive Actions or Mitigation Measures. Pnor to the commencement of canal dredging, as part of site-specific investigations, the PIU should have samples of excavated sediments analysed by a qualified laboratory. Contaminant levels should be assessed against the threshold values presented in Attachment 1 to Annex G. If no contamination of concern is detected and the grain size of the dredged sediments would benefit the quality of the cultivated soils (e.g., add clay-size fraction to ameliorate properties of sandy soils), the dredged sediments should be used for field levelling. In the alternative, the sediment should be used as fill material or levelled on canal banks. However, where sampling results exceed the threshold values, a site plan should be prepared by the contractor, with the assistance of the PIU, showing the estimated volume of sediments to be excavated, expected extent and level of contamination, and corresponding transportation, use and disposal plans. Contaminated dredged material should not be used to level agricultural land, particularly land that is not already contaminated by similar pollutants. Instead, it should be disposed of so as to ensure hydrological containment (e.g., used for construction of embankments or infill of access roads, placed so as to prevent its erosion back into the canals). Heavily contaminated sediments should be disposed of in authonsed landfills or, in their absence, in a pre-designated area authorised by the MENR. The PIUJ should inform the relevant WUAs of the sampling results in their area so that the above requirements can be taken into consideration in future maintenance works.

Under no circumstances should concrete and metal waste be dumped indiscnminately. On sites where significant volumes of such waste are expected, a waste management plan should be prepared by the contractor, with the assistance of the PIU, to identify: (1) type and quantities of materials generated; (ii) opportunities for recycling and/or re-use (e.g. reinforcement of erosion-prone canals; construction of access roads; crushing into aggregates for construction and/or road embankments); and (iii) disposal routes, sites and licensing requirements. Spoil ansing from the works that are classified, as "acceptable fill" will, wherever practicable, be used in construction works. Compliance of the contractor with the above requirements will be momtored by the PIU environmental specialist through site inspections (once pnor to, dunng and upon completion of construction).

5.2.2 Impacts on Water Resources

5.2.2.1 Decreased Downstream Water Quality. The potential pollution of water resources (surface or groundwater) downstream from the project area (as distinct from pollution from upstream sources) can denve from three main causes: (i) increased drainage from saline soils; (ii) improper management of pumping station waste; and (iii) increased agro-chemical pollution caused indirectly by the project. Besides potential environmental damage, this may result in public health problems since many rural households take their domestic water from nvers and irrigation canals without proper treatment.

The rehabilitation of the irrigation and drainage systems in some of the highly saline lands of the southern project zone will likely result in a modest increase in the salinity of waters in the receiving drains. These drainage canals mainly discharge into large collectors flowing directly into the Caspian Sea, however, and significant impacts are not expected from this discharge, given the already high salinity levels of the Caspian and the small incremental volumes of water

5 01/03/03 Draft concerned. Some collectors discharge into wetlands m the project area and, through them, into the Kura River, potentially affecting the water quality of these resources (See Section 5.2.4.1), but again the potential impacts of these discharges are considered negligible.

On some potential project sites, diesel-powered pontoon-type or canal bank pumps provide water for imgation canals or rivers. The rehabilitation of these pumps by the project presents the risk of fuel/oil spills that may contamiate the irrigation water, damage crops and also cause environmental damage downstream. Furthermore, the routine operation and maintenance of these pumps requires proper management practices for associated fuel/oil and wastes. In the course of its field visits, the EA team noted no mishandling of pump-associated fluids. However, poor fuel/oil management practices were observed in other instances, including abandoned tar impoundments, fuel-soaked areas around storage tanks in gas stations, and lack of containment of actual and potential spills around active oil wells that are located near major imgation conveyors. These practices strongly suggest the need to ensure proper management of pump-related fuels and wastes.

At present, there is little or no application of agro-chemicals (fertilisers and/or pesticides) other than organic fertilliser in most of the project area'. This can be explained mainly by the farmers' current low economic returns, which prevent them from investing in agncultural inputs, but also by the absence of serious insect problems. However, projections of increased and more intensive agncultural production, along with the return to cash crops (cotton, vegetables, etc.)2, will require and facilitate the re-introduction of such chemicals in the future. The change will be gradual and take place mostly after project completion3. Certainly a return to the high use levels of the Soviet period is not foreseen given the farmers' financial constraints and the fact that the cost of these chemicals is no longer subsidised by the State. Nevertheless, the awareness of most farmers of the environmental and health risks associated with pesticides is inadequate.4 They lack both application and protective equipment and knowledge on proper application methods.5 In areas where farmers can currently afford pesticide use (e.g. orchards in the northern project zone), reported levels are relatively high. Moreover, stocks of obsolete/banned pesticides are reported to exist in the country6 and Government capacity to assist farmers in adopting sustainable pest management practices is weak. Agncultural extension services are for the most part lacking, and there are no ongoing integrated pest and production management (IPPM)77 projects. Under these

' See Diagnostic Survey Draft Mission Report - Agriculture and Irrigation, February 2003 and RIDIP PIU. Social Impact Monitoring and Agricultural Assessment, Baseline Survey Report, February 2003. 2 The project formulation team estimated that the cropped area for cash crops in the Project area will increase from the present 10,000 ha to 45,000 ha in 25 years, see Diagnostic Survey Draft Mission Report, op.cit 3According to the project formulation team estimates, farmer investments in crop protection will double or tnple from the present very low level in 25 years. For example, for cotton, crop protection costs are expected to increase from present US$1 1/ha to US$29/ha by year 25 (see Diagnostic Survey, op cit.). The resulting levels will still be low, by comparison, typical crop protection investments in intensive cotton production exceed USS300/ha 4 For example, when interviewed, one of the farmers in the northern projext zone disclosed that he disposes of the empty packaging of agro-chemicals by throwing them into the irrigation canals. Others were oblivious to the adverse effects associated with application under windy conditions 5 The World Bank Agricultural Development and Credit Project (ADCP) survey on the effectiveness of its information campaign on pesticide use found that, before the campaign, 26 percent of farmers had knowledge on the various topics concerned. After the campaign, the percentage had risen to 85 percent The campaign activitics, however, focused on only a few raions. (Aide-memoire on the ADCP Information and Advisory Services Component Supervision Mission, 17-27 November 2002.) 6 It was reported to the EA team that pesticide stocks - partly obsolete or banned - that belonged to the old Soviet farms often continue to be stored in old kolkhoze/sovhoze buildings, without adequate safety measures In some cases, these pesticides continue to be used by local farmers The EA team could not investigate these claims further but the issue is serious and merits further study 7 For more details, see

6 01/03/03 Draft conditions, the nsk is that the re-introduction of pesticides could lead to over-application and subsequently, through runoff, drainage or infiltration, pollution of surface or groundwater resources.

Recommended Preventive Actions or Mitigation Measures. As the potential impacts mainly represent non-point source pollution, they are best managed by preventive, rather than mitigative measures. The measures proposed below (see Section 5.2.3) for addressing soil- related impacts, in particular agricultural extension on proper irrigation and other agricultural practices (e.g., prevention of over-watering to minimise return flows and systematic replacement of nutrients; introduction of crop rotation cycles), will alleviate the impacts of saline drainage water and fertiliser use on downstream waterbodies. Concerning the risk of pollution from pumping station waste, the PIU should, when the participation of specific WUAs is decided, inspect all diesel-powered pumps on the site (whether or not they are proposed for rehabilitation) and provide guidance on proper fuel storage, spill containment and disposal of empty contamers and scraps. Subsequent site visits should ensure that pump operators adhere to this guidance.

With respect to potential agro-chemical pollution, no immediate mitigation measures are required, but the indirect, long-term impacts should be prevented by exposing the farmers to IPPM, proper agro-chemical application and storage methods, as well as awareness raising on the risks associated with the use of obsolete/banned chemicals. For this purpose, appropriate and affordable access to agricultural extension and training should be provided to individual farmers in the IDSMIP area. The World Bank's ADCP currently finances agricultural extension activities in some areas of Azerbaijan and the EA recommends that ADCP extension and trainung programs be implemented in IDSMIP raions (see also Section 6.4.3).

Concerning monitoring, PIU site visits should monitor pumping station management. In addition, the ADCP (or other agncultural extension service provider) should monitor access to extension services at IDSMIP sites, as well as results in terms of the adoption by farmers of EPPM and appropnate imgation and agricultural practices (including use levels of pesticides and chemucal fertilisers). Wherever necessary, the service provider should use such monitoring results to adapt the extension approach. For ecologically sensitive sites, additional mitigation and monitonng measures are proposed in Section 5.2.4.2.

5.2.2.2 Reduction in Downstream River flows. The EA examined two aspects of this water resources issue: (i) whether the IDSMIP will reduce downstream river flows from their present levels; and (ii) whether the present overall irrigation water abstraction levels in Azerbaijan are ecologically sustainable. With respect to the first point, ihe EA concluded that no immediate impact on downstream river flows is foreseen since the IDSMIP is not likely to affect water abstraction levels at the main water intakes. The project will focus on rehabilitating on-farm irrigation systems and will not expand the capacity of pnmary canals. The expected ten percent increase in water delivery to farms in participating WUAs' 'will apply to only approximately 25 percent of the total irrigated area in the ten project raions (out of 52 ralons in the whole country). Furthermore, this increase will be achieved primanly by improved off-farm water management and rehabilitation of some off-farm infrastructure. In the longer term, improved irrigation systems, improvements in water measurement, and increases in water fees are expected to considerably enhance irrigation efficiency, which could also increase the availability of water for downstream ecosystems. However, given the inadequacy of present water delivery levels, a downward trend in irrigation water withdrawals is unlikely, especially since it is projected that the IDSMIP would also induce a 17 percent increase in irrigated area (by bnnging currently fallow lands back into

httPJ//wwA, fao orp,;WA I CENT/FAOLN FO/AGRICULT/AG PIAGP P/l PM\/Tpimif/02 Dromramrnes/02a htim See Diagnostic Survey Draft Mission Report - Agriculture and Irrigation, February 2003

7 01/03/03 Draft production) and a switch to more water-intensive crops (from 16 percent of irrigated land to up to 61 percent in 25 years)'.

Concerning the second point, the sustamability of current abstraction levels for irrigation purposes is difficult and beyond the scope of this EA to assess due to: (i) the lack of flow data for smaller tnbutary rivers; (ii) the absence of minimum flow requirements for many of the harvested rivers; and (iii) the fact that existing minimum flow requirements date from the 1960s and have not been reviewed since that time. Some data on river flows the EA received suggest, however, that especially in dry years, river flows during the irrigation season may be reduced to a level where ecological damage is caused to the river ecosystem2. Certainly this is not a direct impact of the IDSMIP but rather a global consequence of existing irrigation policies in Azerbaijan (see also Section 5.3).

Recommended Preventive Actions or Mitigation Measures. Since the potential impacts identified result more from global imgation sector policies than from project activities, they should be addressed primarily through national level actions that the project should catalyse and facilitate. Proposed IDSMIP activities include installing/upgrading abstraction level and river flow measurng equipment at every headworks that it rehabilitates (see also Section 5.2.1.1). Furthermore, the project should promote more water-conserving imgation techniques. Besides the dilapidated infrastructure, the prevalence of furrow and border stnp irrigation, weak farmer awareness of the need for water conservation, and inadequate knowledge of water-conserving crops, techniques and agricultural practices, all contribute to the present extremely low irrigation efficiency. The EA recommends that these issues be addressed both through the WUA training and techmcal assistance programme to be implemented by the institutional development component of the IDSMIP (see Section 4.1.1) and through the agricultural extension services proposed in this EA (see Section 6.4.3).

At the national level, the EA recommends that a review of the ecological minimum flow requirements and sustainable abstraction levels be initiated by the SAIC as the responsible agency 3, involving other relevant institutions. This review should cover both revisiting existing ecological minimum flow requirements (mainly for the Samur and Araz Rivers) and determining minimum flow requirements for those rivers that are currently lacking them (e.g., Goranchay, Nakchivanchay) 4, using, as a starting point, international best practice 5. The review should also establish the procedures for monitoring river flows6 and reporting the results, as well as the procedures to follow when ecological minimum flows are breached.

' See Diagnostic Survey, op. cit. 3 3 2 For example, for river Araz, minimum flow requirement is set at 1 104 million m /year If calculated at m /s level, this would correspond to appr 35 m3/s. In 2001, Araz flow downstream from Bahramtepe headworks was below 35 m3/s during 11 months, and in 1999 and 2000, during 8 months. (For more details, see iAi'ine , sections 4 3 and 5 ) According to the Water Code, SAIC is responsible for determining the ecological minimum flow requirements for each waterbody No standard rules for determining these requirements exist in the legislation. (For more details, see Lnnex E.) 4 Part of this work will be undertaken in the context of the feasibility study on harvesting the small rivers of the SAC zone for irrigation water supply, to be financed by RIDIP 5A common approach used in international best practice is to define a minimum flow equivalent to the 7 or I 0- day flow during a 10 year return period drought (i e a drought which occurs on average only every 10 years) For rivers with multiple abstraction points, a regional water management approach should be adopted where the minimum flow at each abstraction point should take into account the need to maintain minimum flow along the whole course of the river, the abstraction needs at all withdrawal points downstream as well as any intermediate inflows. 6 The seasonal nature of most small mountainous rivers and their tendency to frequently change their course has implications for monitoring as measuring the river flow on a regular basis is often very difficult

8 01/03/03 Draft

5.2.3 Impacts on Agricultural Soils

5.2.3.1 Increased Soil and Channel Erosion. Irrigation water can cause significant erosion of the topsoil if proper application methods are not used, and unlined canals or offtakes can scour soil surfaces if poorly designed or constructed. As natural slopes within the designated project areas are low (according to Armitage, they range between 0. 1 - 0.4 percent'), erosion is of significant concern only in instances where furrows have a steeper slope than generally observed and when the rate of incoming irrigation water is high enough to cause top soil suspension and/or erosion and its successive transport down furrow with each irrigation event.

Recommended Preventive Actions or Mitigation Measures. To mmimise topsoil erosion during irrigation, land and field drainage should be levelled to the extent possible to reduce erosion potential, and the amount of inlet flow should be restricted to avoid furrow erosion. The former may require laser-levelling or mechanical ploughing by experienced professionals, the latter better overall control of water inflow. In principle, high-order canals that are susceptible to erosion should be relined, although in practical terms relining will not be cost effective given the currently irrigation service fees charged to the WUAs2. Associated hydraulic structures (e.g., culverts) should be rehabilitated, and any unauthonsed connections to the main drain should be avoided, with illegal canals and drains filled in. Addressing the issue of unauthonsed connections effectively will require monthly inspection during the irrigation season of the imgation and drainage system within each of the project's WUAs by its appointed representatives.

5.2.3.2 Soil Degradation Due to Waterlogging, Salinisation, and Leaching of Nutrients. Over-watering and poor subsurface dramage can lead to waterloggmg and subsequent salinisation of soils. Soil salinisation has been observed to be a problem for project areas, particularly in the Kura-Araz lowlands, that suffer from elevated water table. The IIDSMIP's rehabilitation of drainage canals should improve drainage in these areas and alleviate many of the waterlogging and soil salinisation problems. However, the current prevalence of high water table conditions over much of the lowland area means that there is a significant risk of salinisation if water application is not carefully managed. Improved on-farm water management and application techniques fostered by the project through its technical assistance and training with the WUAs should address this concem. Finally, there is also a concern that irrigation return flows may leach out nutrients and reduce soil fertility.

Recommended Preventive Actions and Mitigation Measures. Among preventive actions that the EA recommends that project WrUAs take are (i) levelling farm lands and improving field drainage to maximise drainage potential, (ii) instituting proper water distnbution and management practices, (iii) regularly inspecting project farms to identify and remove any unauthonsed or unplanned connections to the secondary drains, and (iv) having farmers check annually to clear field drainage prior to commencement of the irrigation season. In the lowland areas it will be important to manage water tables at as high a level as possible without causing secondary salinity. For example, where the water table is at a shallow level (e.g., 1.5 m), the net water requirement for maximum agricultural production is reduced by some 40 percent, which represents a very substantial saving of water resources. For this reason, rehabilitating the collector drains where the effect might cause the water table to fall below about 1.5 m should only be

Nevertheless, alternative approaches, such as determining annual sustainable abstraction levels depending on annual precipitation, have already been used in Azerbaijan. 'Diagnostic Survey, op. cit, Section II B-2 3. 2 Diagnostic Survey, op cit

9 01/03/03 Draft undertaken where there is an overriding need to do so, such as the need for capital leaching (reclamation) of accumulated secondary salts or recovery of sodic soil

Aside from standard good irrigation practice (i.e., preventing over-watering and minirnising return flows) and systematic replacement of nutrients, potential leaching problems can be reduced by the introduction of crop rotation cycles. The feasibility of promoting such measures should be investigated by the PTU in the context of the technical assistance and training offered to WUAs under the institutional development component of the project, with a view to introducing a sustainable cycle in the longer term. In this respect, there should also be opportunities to draw upon and co-ordinate with the ongoing World Bank ADCP.

5.2.4 Impacts on Biodiversity and Habitat

5.2.4.1 Reduction of Water Levels in Sensitive Wetlands. Some potential project sites may be located close to the sensitive wetland habitats -- Ag-gel, Boz-Gobu, Sarisu, Mehman -- descnbed in Section 4.3.2. These wetland ecosystems (see Map 4) are currently suffering from tough and unstable hydro-chemical conditions associated with low water levels. A change in the hydrological regime of the surrounding area, if it reduces the amount of water flowing or draining into these wetlands, could adversely affect their ecosystems through (i) loss of habitat through decrease in the wetland area; and (ii) decrease in water levels and subsequent worsening of hydro- chemical conditions. Besides ecological concerns, fisheries would be affected as well.

The IDSMIP's rehabilitation activities, if implemented on farms draining into these wetlands, may have positive impacts on wetland water levels by increasing water flow in collectors discharging into them. However, it is also possible that project activities may adversely affect the water flows concerned by (i) reducing water flow in the relevant collectors23; (ii) loWering the water table level through improved drainage; and (iii) improving water distribution so~ that excess irrigation water no longer flows into Lake Sansu. The small scale of the proposed activities considerably reduces the likelihood of any negative impacts. Furthermore, the soils of the project zone are clayish, with low hydraulic conductivity, and the radius of impact on groundwater levels thus likely to be small.

Recommended Preventive Actions or Mitigation Measures. Although the risk of adverse impacts is considered very small, the ecological importance of the wetlands concerned necessitates preventive and monitoring actions that should be followed by mitigation wherever

l Diagnostic Survey, op cit, Section IV Fl. 2 Concerming Sarisu, the ongoing construction of Main Mil-Mugan collector by RIDIP is already likely to affect the discharge of drainage waters into the lake Impacts are monitored through RIDIP ecological monitoring programme (see below). 3A reduction in the inflow of drainage water into wetlands would improve wetland water quality. However, the positive impacts would be offset by the negative consequences of lower water levels.

10 -ant~~tt "'z>'--tCana

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AGCBADI 42h OR bV.YL00I* ~ LeLAc~Bz-ouWtans ~ i~ necessary'. At present, little baseline information is available on the hydrological system of these wetlands, but the RIDIP ecological monitoring program (see below), launched in autumn 2002, will address this gap. To ensure informed decision-making, a phased approach to project implementation is proposed whereby IDSMIP infrastructure rehabilitation activities would not be undertaken on the areas of WUAs whose drainage systems are directly connected to the collectors flowing into sensitive wetlands before RIDIP monitoring information is available for at least two years. At that point, these wetlands may also be less dependent on drainage water as a result of any RlIDIP environmental nmtigation measures undertaken 2.

The impact of IDSMIP infrastructure rehabilitation works on the wetlands should continue to be monitored and the results reviewed by an expert panel with MENR, SAIC, ralon administration and PIU participation (same/similar to the expert panel established for Lake Sarisu under RIDIP, see above). Where necessary, the panel would take decisions on appropriate mitigation measures. As with the RIDIP, these could include supplying the wetlands with water from the Kura and/or Araz Rivers 3 or from irrigation canals (Upper Karabakh, Orjonikidze, P-2, P12-1) and/or reducing water outflow, which might also require rehabilitation of the water regulation equipment at the lakes4 (see also Annex B). An environmentally and economically sustainable solution, based on gravity rather than pumping, should be found. This would also improve water quality in the lakes and, consequently, in the Kura River itself. All measures should be co-ordinated with other ongoing and planned projects to improve the condition of the lakes, in particular the MENRJSuccow "Saving the Ag-Gel Lake" Project (see Section 4.3.2.4).

The RIDIP ecological monitoring program on Lakes Ag-gel and Sarisu will monitor water levels, inflow and outfall discharge, water pH, EC, temperature and water quality as well as unidertake plant and wildlife surveys5. This program thus enables a comprehensive assessment on the linkages between hydrology, water quality and wetland biodiversity. The EA recommends that the IDSMIP maintain this program by extending it, for the Lakes Ag-gel and Sansu, until IDSMIP completion. In addition, the quantity of water in collectors discharging into lake Ag-gel (K-2, K-3) should be monitored.

5.2.4.2 Decreased Water Quality in Sensitive Wetlands. On the shallow wetland habitats Ag-gel, Boz-Gobu, Sarisu and Mehman, even a small increase in water pollution associated with increased drainage from saline soils or any potential long-term increase in fertillser and pesticide use on project sites draining into these wetlands could have negative impacts on the ecosystem. Eutrophication and accumulation of toxic pesticides could affect not only aquatic flora and fish but also birds and humans feeding on them. As explained in Annex C (Table 3,9), the water quality in the collectors discharging into the wetlands is already poor (e.g.

This is in line with recent decisions of the Conference of the Contracting Parties (COP) of the Ramsar Convention on Wetlands. Resolution VIII 34 on agriculture and wetlands, adopted by the COP in November 2002, recognises that ensuring compatibility between agricultural practices and wetland conservation objectives is a high prionty (see Ramsar Convention website at http //w-vw.ramsar.org). 2 RIDIP will recruit a panel of national specialists as consultants to review the data collected through its monitoring program, and to determine the necessity for mitigation measures for Lake Sarisu. The panel will meet for the first time in April 2004. Possible mitigation measures include compensating for reduced water inflow through supplying the wetlands with freshwater from rivers directly or through irrigation canals An amount of US$ 175,000 is reserved in RIDIP budget to finance any mitigation measures deemed necessary In the case of Sarisu, a cost-effective solution could be a tunnel through the dike that currently separates the lake from the Kura river. During high flow season, Sarisu would be fed by Kura waters by gravity. 4 Presently, sluices at the outfall point of Sarisu Lake are operational whereas those between Ag-gel and Sarisu are not. 5 The RIDIP ecological monitoring programme also covers lake Devechi in the Guba raion which will not be affected by the IDSMIP 01/03/03 Draft high natrium and magnesium content and chloride hazard), and any additional adverse pressures should be avoided.

Recommended Preventive Actions or Mitigation Measures. Although the nsk of adverse impacts is considered very small, the ecological importance of the wetlands concerned requires monitonng which should be followed by nmtigation measures wherever necessary. Monitoring results should be reviewed by the expert panel (see above) which should decide on any additional mitigation measures. These could consist of (i) natural vegetation filters in secondary drains and/or (ii) uncultivated buffer strips along field drains. The natural vegetation filters would be established for a short reach (maximum 50 m) just before the secondary drains flow into the collector. Along their vegetated length, the drains would need to be widened to compensate for reduced conveyance. The buffer strips (on the order of one meter) would be established along the edges of the field drains to collect the surface and near-surface runoff and thus minimise the risk of agro-chemical transport. Native wetland species should be allowed to grow on the strips, and if planting is necessary, plants dredged from rehabilitated canals could be used. The disadvantage of the filters and the strips is that they would remove a portion of each farmer's plot from production. However, given their small length/width and the fact that the land immediately adjacent to the drains may not be usable anyway, this "cost" to farmers is not considered to be prohibitive. These measures are currently being field-tested in an ongoing World Bank Irrigation and Drainage Community Development Project in Georgia, and the experience from this project should be incorporated into the design of any IDSMIP measures.

The proposed monitoring would cover water quality in collectors that discharge into Ag-gel (K-2, K-3)1. Samples should be taken semi-annually and analysed for BOD5, COD, Coli index, pesticides and hydrocarbons; nitrogen (in ammonia, nitrate and nitrite) and phosphorous; carbonate-, sulfate-, and chloride-salts, and selected heavy metals (copper, lead, cadmium, nickel, and zinc). Values that exceed MAC standards (see Annex A) should be flagged, and reasonable efforts should be-mvested in locating their source(s) - whether within or outside the project area.

5.2.4.3 Reduction of on-farm habitat. The ISDiMIP will affect the on-farm habitats that have unintentionally blossomed due to the present agricultural cnsis: (i) cleaning drainage canals will eliminate mini-wetlands that have emerged in the blocked drains; and (11) rehabilitation and subsequent maintenance works may affect trees or other vegetation along the canals. While most of these "mini-ecosystems" support relatively common species which are likely to find refuge elsewhere2, in some cases important habitats (habitats of rare or protected species) and/or natural monuments may occur on IDSMIP sites (see Annex B).

Recommended Preventive Actions or Mitigation Measures. The EA recommends three types of measures to address this issue. First, the cleaning of drainage canals should be considered on a case-by-case basis, only where it is necessary to prevent waterlogging and soil salinisation (see also Section 5.2.3.2). Second, when a rehabilitation proposal is presented by a WUA, a site assessment should be carried out by a national biodiversity expert, in consultation with local environmental authonties, to identify any important habitats/sites and define appropnate site-specific preventive/mitigation measures. These should be respected both by project contractors and the WUA concerned in subsequent maintenance works. They could include, for example, appropriate scheduling of maintenance works; fencing off the sensitive habitat for the duration of cleanig works, avoiding dumping dredged sediments on these sites, or

The proposed monitoring does not cover collectors discharging into Lake Sansu (K, K-i) because these discharges will be eliminated by the construction of the new Main Mil-Mugan collector by RIDIP (see above). 2 The project is expected to rehabilitate irrgation infrastructure on an area of 75,000 ha whereas the total arable land area in the country is 1.6 million ha.

2 01/03/03 Draft manual excavation instead of heavy machinery. Third, to compensate for reduced on-farm habitat, the IDSMIP should, on a demand-driven basis, co-finance rehabilitation of forest shelterbelts, as required by Azerbaijani legislation, along imgation canals'. When rehabilitating shelterbelts, consideration should be given to planting tree species that produce food (e.g. nuts) or bring other economic benefits (e.g. mulberry trees). Follow-up monitoring of implementation of any site- specific mitigation measures and any impacts on important habitats would be undertaken by the national biodiversity expert through annual site inspections.

5.2.4.4. Other important habitats. Other important habitats in the project raions are listed in Section 4.3.2. The IDSMIP is not likely to have any impact on these areas for the following reasons. The Korchay State Protected Area, Shah Dag National Park, Mount Ilandag, and Negram mountains are all located on mountains and foothills above the proposed project sites and no irrigation infrastructure rehabilitation will take place in these areas. The tuqay forests along the Kura nver, Samur delta forests, and Nabran-Yalama-Khachmaz Liana-oak forest will not be impacted by the IDSMIP since (i) IDSMIP rehabilitation activities will only cover a small part of the farmlands surrounding these forests; (ii) no irrigation infrastructure is located within the forested areas; and (iii) the IDSMIP will not increase water withdrawal from the rivers feeding the forest ecosystems.

5.2.5 Social and Public Health Impacts

5.2.5.1 Irrigation Water-Related Health Problems. Although the IDSMIP is expected to provide benefits with respect to some health-related concems, as noted above in Section 5.1.3, in reducing the areas of stagnant water where disease vectors multiply, there will remain some potential for increases in health risks related to irrigation water. These will be potential increases in disease vectors because of more irrigation water extending to more irrigated lahds, which may result m areas of stagnant water where drainage is not adequate to handle improved water delivery or where on-farm water retention schemes proliferate. Even with the infrastructure improvements envisioned by the IDSMIP, there will potentially be increased opportunities for disease vectors such as mosquitoes to multiply in any standing irrigation canal and drainage collector waters (as well as in the small pools that farmers sometimes build) and to increase the incidence of malana in project areas. Careful water management to prevent water accumulation in low-lying areas and to discourage on-farm water retention practices can minimise the risks, but some risks of increased disease vectors will remain with any irrigation project. The MoH health statistics cited in Section 4.4 confirm that the highest incidence of malaria cases in Azerbaijan is in the Kura-Araz plain raions where the project will operate.

Recommended Preventive Actions or Mitigation Measures. The EA recommends that the IDSiMIP undertake a combination of preventive actions, mitigation measures and monitoring activities to address any potential irrigation water-related health problems. In terms of preventive actions, first the project should ensure that farmers in participating WUAs discontinue any on-farm irrigation/drainage or water retention practices that provide breeding areas for mosquitoes. The technical assistance provided to WIUAs under the institutional development component of the IDSMIP should address such practices in its training for improved water management. The WlJAs themselves should ensure that such practices are discontinued on project farms. Second, the project should ensure that appropriate extension services and/or training programs are provided to WIUA members and their famulies on proper vector control techniques (particularly for mosquitoes). The MoH, for example, has pioneered some innovative vector control techniques in the country, such as stocking fish in standing waters to reduce mosquito breeding and planting eucalyptus trees in low-lying areas to absorb excess water. The EA

According to the construction norms in force, forest shelterbelts should cover 60% of Irrigation canal length (see Annex A). At present, shelterbelts along many canals are either degraded or non-existent

3 01/03/03 Draft recommends that these issues be addressed as part of the extension services offered through the World Bank's ADCP under its information and advisory services component. Additional training modules dealing with environmental health issues may have to be developed for this purpose.

Finally, the project should periodically monitor the health statistics for water-related diseases (particularly malana) collected, by the MoH (and recorded by the State Statistical Committee) in order to determine trends in the mcidence of water-related diseases in project areas. Where the statistics indicate a growing public health concern, the PIU should work with the MoH in addressing the problems: (i) raising awareness with the farmers in the participating WUAs on the nature of the health problems and the appropriate measures to take and (ii) assisting the MoH in its direct interventions in project areas.

5.2.5.2 Water User Conflicts

The EA did not find any direct evidence of serious conflicts over current irrigation water management practices (e.g. with regard to allocations, distnbution, fees, illegal diversions) and fully expects the IDSMIP to have beneficial impacts, both as a result of WUA institutional development and the infrastructure rehabilitation, on the consistency, transparency and equity of water delivery to project farms (see Section 5.1.4). However, the social assessment performed during project preparation did find conflicts over water distnbution to be an issue in four out of the six WUAs studied and in the local offices of SAICM. Conflicts may occur among WUA members (e.g., over water distribution between farmers at the beginning of the canal and those at the end of the canal), between WUA members and WUA officials (e.g., over payments for water that is not delivered, amount and use of the irrigation service fee), between WUAs themselves (e.g., over amounts of water supplied by the local SAIC office), and between WUAs and the local SAIC office (e.g., over amounts of water supplied). Given the nature of the distribution of this valuable resource in the economic and political context of rural Azerbaijan, it should be no surprise that such conflicts anse. The- IDSMIP, therefore, must recognise and address the potential for inherent conflicts between WUAs and among WUA members over actual or perceived inequities in water distribution in the project areas.

Recommended Preventive Actions or Mitigation Measures. The EA recommends a number of mstitutional preventive measures to address this concern. First, the project should work with the SAIC, both at the national and at the raion level, to ensure that a participatory, transparent, equitable and corruption-free system of water allocation/distnbution is established and practised with respect to the participating WUAs in the raions where the project operates. Technical assistance to support this approach through SAIC WUA Support Units at the national and raion level has been proposed by the project preparation team as part of the institutional development component of the project.2 For example, the amount allocated to each WUA should be determined by the local SAIC office in consultation with the WUA, based on the WUA's location, crop size/types and area to be imgated. The planned allocations should be made available to all the WUAs before the start of each imgation season, and the WUAs should have the right to review and challenge the allocation. If challenged, the local SAIC should reassess its decision, make a final decision and publicise its justification to all stakeholders.

At the WUA level, the EA recommends training and capacity building in equitable water management practices and conflict resolution. Again, the WUA institutional development component of the project will provide training to address conflict resolution, as well as the broader WUA issues of governance/administration, irrigation system operation and maintenance,

l See Baumann, Pan: Social Diagnosis, December 2002 2See Johnson, Sam: Development of Water Users Associations (Final Report), February 2003

4 01/03/03 Drafl etc.' The PIU should encourage all participating WUAs to undergo the training and capacity building on conflict resolution offered by the project. The PIU should make every effort to ensure that participating WUAs manage the water allocation to their members in a transparent and equitable manner. Where there appears to be the potential for conflict among members, the PIU should work with the WUA to develop a clear conflict resolution strategy. Further, the PIU should encourage the WUAs to be proactive about the policing the sorts of activities that may cause conflicts, such as illegal and/or unplanned diversions or connections to pnmary and secondary drains.

5.3 Global Impacts of Amelioration and Irrigation Sector Policy

Beyond the scope of the IDSMIP itself, the EA identified a number of global water sector policies in Azerbaijan that will need reform at the national level if the full spectrum of social and environmental impacts of the irrigation sector are to be fully addressed. Analysing these issues adequately is clearly beyond the scope of this project, therefore, the EA suggests that the World Bank provide support to the Government of Azerbaijan, either through development of a sector strategy or in the context of a new lending operation, for the sorts of policy and institutional reforms required.

5.3.1 Inefficient Use of Water Resources. The level of water loss in the current irrigation system is unsustainable in a country where water resources are severely limited. The conveyance of water in open, primarily unlined canals and use of flood irmgation are inherently wasteful methods of irrigation water management. Infiltration from unlined canals has been responsible for water logging and salinisation in both the Kura-Araz plains and the Quba- Khachmaz region. Irrigation efficiency is low, estimated by various sources as 25 to 35 percent, buit values as low as ten percent were calculated by the project preparation team in a field visit near the Geranboy raion in October 2002. The excessive amounts of water applied infiltrate below the plant root zone to raise the groundwater table, leaching the soil of much of its nutrients and residual agro-chemicals.

Water measurement in the irrigation system is rudimentary or non-existent. Much of the system operates without gauges or hydroposts for water measurement; in many areas water control structures are dilapidated or non-functioning. Until July 2002 the irrigation service fee was based on the estimated use of water as calculated using imgation normns because in many instances the actual volume could not be measured as a result of dysfunctional or non-existent gauges or hydroposts. The new fee system, established in June 2002, charges a uniform price for water per hectare without taking into consideration which crop is raised or how much water is required for its imgation. This results in extraordinary inequities (e.g., the difference between rice and wheat that require about 30,000 m3/ha and 3,000 m3/ha, respectively) and removes any incentive for economnsing on water use. The IDSMIP will begin to rectify this situation by installing hydroposts throughout the system and rehabilitating control structures in project areas.

In some instances , irrigation canals also serve a significant number of households with their domestic water supply. This necessitates running the canals throughout the year, again resulting m uinecessary waste.

5.3.2 Under-Pricing of Water and Irrigation Resources. One of the key problems associated with the inefficient use of water in Azerbaijan in general, and in the agriculture sector in particular, is the unrealistic pricing of this scarce resource. The ratio between the actual cost of

' Johnson, op cit 2 E.g, Cholbeshdaly WUA, Sabirabad Raion IDSMIP First Mission Report, Project Preparation, Diagnostic Survey, Annex 2 (Irrigation Infrastructure), October 2002

5 01/03/03 Draft water to SAIC and the irrigation service fee charged to WUAs is roughly 10:1 to 15:1. The water fees have been actually reduced in the recent years: according to SAIC data', in 1997 the price of imgation water in Sabirabad and Beylegan raions was 17.2 and 7.7 AZM/m3. When corrected for dollar equivalency rate, these prices would mcrease by 13.7 percent. The grossly inadequate user fees collected by SAIC do not allow proper maintenance or replacement of malfunctioning hydraulic components, contributing to further deterioration of the irrigation distribution system. Energy blackouts are ubiquitous, resulting in rather frequent - and unpredictable - pump outages. The blackouts result from insufficient generation potential combined with the poor state of the power distribution network. For instance, in one well-documented case2, a pump was out of order for over 18 days in a penod of seven months. In addition to failure of the water distribution system to deliver water without pumping to all farmers downstream, the unpredictable outages induce the upstream farmers to apply water very liberally, so as to avoid crop failure due to future outages. This leads, in turn, to a very low irrigation efficiency with significant loss of water to salinised aquifers and/or to drainage collectors where water quality is very low.

5.3.3 The Need for Integrated Water Resources Management. The wasteful application of water resources, frequently subjected to geographic and temporal shortages due to natural supply fluctuations, as well as sectoral conflicts and poor mnanagement often result in water shortages at the tail ends of the imgation systems. This scarcity results in land fallowing and often compels farmers to utilise drain collector water for irrigation purposes, with potentially adverse effects on soil properties, soil and crop contamunation, and risks to the health of both livestock and human consumers. In addition, it curtails river base flows to the disadvantage of ecosystems that critically depend on the availability of wetlands for their sustenance. The loss of access to water reserves in the upper reaches of rivers draining Ngomo-Karabakh to the Kura- Araz plain may induce a greater demand for and unsustainable abstraction of groundwater in the foothills of the Lesser-Caucasus. With steady population growth, gradual recovery of mdustrial activities, and ultimate recovery of produce markets in the neighbouring countnes, this scarcity will soon become an impediment to rural economic development. It may be even further exacerbated once the 1967 Samur River water distribution agreement between Russia and Azerbaijan becomes a subject for renegotiating the water sharing formula.

Recognising Azerbaijan's need for a national integrated water resources management strategy, the EA recommends that the World Bank undertake development of such a strategy with the key institutions of national govemment and the range of relevant stakeholders3 . Such strategy should identify the critical policy and institutional reforms, as'well as the timeframe for effecting such reforms, necessary to establish an effective system of integrated water resources management for the country. One approach would be to establish a non-sectoral entity to assess the water needs of the country and set priorities for water allocation, applying appropnate fiscal and regulatory measures. Subsidies for water and power should be gradually eliminated and replaced by a focused social welfare policy. To accommodate the existing and/or growing demand of non-agricultural sectors (e.g., domestic consumption, industnal use, fishenes, and preservation of habitats) while expanding the potential for higher crop yields (e.g., by irrigation of lands that are fallow), measures to increase irngation efficiency should be introduced. These include installing effective sediment filters at major water headworks, gradual substitution of the open canals system with piped conveyances, and providing fiscal incentives and technical training for water conservation (e.g., by training for higher on-farm application efficiency and, in the longer term, through the gradual introduction of pressurised irrigation).

' Table 2.17, EA and Monitoring, op cit. 2 Gizlagaj Pump Station, Salyan Raion; Sam H. Johnson III, op. cit 3The World Bank has initiated this effort with its "Towards a Water Resources Management Strategy for Azerbaijan" (draft final report December 2002) but much remains to be done to develop and implement a national strategy.

6 01/03/03 Draft

Furthermore, water availability for a larger variety of uses will increase by assigning a higher national priority to improving their quality. Sewage treatment plants will need to be refurbished and constructed, and the treated effluents should then be applied to non-edible crops (e.g., cotton). Regional agreements with the neighbouring countnes should be pursued to curtail discharge of untreated industrial effluents and domestic sewage into the Kura and Araz Rivers, and appropnate resources should be allocated by the Government of Azerbaijan to address domestic point sources of pollution. Introduction of proper management techniques of agro- chemicals would reduce some of the non-point source pollution of watercourses and the Caspian Sea, contributing to the revival of the once lucrative fisheries sector. Finally, a comprehensive survey of subsurface water resources, their flow and annual recharge should be launched to establish sustainable levels of abstraction of groundwater. This resource should be harnessed primarily into supplying potable, piped-in water to the rural population, to replace poor quality waters that are currently abstracted for domestic use from nvers as well as irrigation and drainage conveyors. 01/03/03 Draft

6. ENVIRONMENTAL MANAGEMENT AND MONITORING PLAN

6.1 Objective of the EMMP

The objective of this Environmental Management and Monitonng Plan (EM\VMP) is to identify the environmental screening and review process, capacity-building and momtoring activities that will be undertaken, as well as the institutional arrangements that will be set up, during implementation of the IDSMIP to ensure that the environmental and social management principles and practices identified by the EA are incorporated into project activities and that any potential adverse environmental impacts are either eliminated or minimised. The EMMP also establishes an implementation schedule for undertaking these activities and indicates their costs included in the project budget.

6.2 Environmental Screening and Review of Sub-Projects

As noted above, the demand-driven nature of the IDSMIP means that the exact number and location of the specific infrastructure rehabilitation sub-projects to be financed by the project have yet to be determined, therefore, the EA, is of necessity limited to identifying generic impacts for infrastructure rehabilitation in the project areas identified and specifying generic preventive actions and mitigation measures for these impacts. In order to ensure that the appropriate preventive actions and mitigation measures are applied to specific sub-project rehabilitation sites on a case-by-case basis, therefore, the EMMP includes the following environmental screening and review procedures.

6.2.1 Objective of the Environmental Screening and Review Procedures. The objective of the environmental screening and review procedures is to review the individual infrastructure rehabilitation sub-projects proposed for financing for the purpose of identifying and addressing (preventing or rmnimising) the site-specific potential adverse environmental and social impacts. Where potential impacts identified through this process are mnnor, they should be addressed using the appropnate generic preventive actions and mitigation measures identified in the EA; more sigruficant impacts may require additional review by the MENR (as explained below) and implementation of specifically identified preventive actions and mitigation measures.

6.2.2 Sub-projects Subject to Environmental Screening and Review Procedures. All of the infrastructure rehabilitation sub-projects to be financed by the IDSMIP are subject to these environmental screening and review procedures. For the most part, these sub-projects will be rehabilitation of existing on-farm irrigation distribution and drainage systems (and some critical, associated off-farm systems) within the areas under the management of participating WUAs (i.e., canal and drain cleaning, canal lining, and rehabilitation and construction of hydraulic and water measunng structures, etc). However, the sub-projects may also include related drilling or rehabilitation of irrigation wells and boreholes, renovation of pumping stations, and limited rehabilitation of critical higher order systems, including headworks (i.e., Barahmtepe) and other abstraction works (see Table 6. 1).

Table 6.1 IDSMIP Sub-Projects Subject to Environmental Screening and Review

Anticipated Types of Sub-Projects Sub-Project Sites Identified

Rehabilitation of on-farm irrigation canals and Sites managed by 40 WUAs in project raions to drainage systems be determined based on eligibility criteria

Rehabilitation of off-farm imgation canals and Sites to be determined based on relation to on-

8 01/03/03 Draft drainage systems farm rehabilitation works

Irrigation wells (boreholes, artesian, etc.) Sites to be determined

Pumping stations, other hydraulic works Sites to be determined

Headworks, other abstraction works Barahmtepe headworks, other sites to be deterrnined

With limited exceptions (i.e., off-farm infrastructure, pumping stations, headworks), only sub-projects proposed by WUAs participating in the institutional development component of the project will be considered, and the eligibility of such sub-projects will be based on established technical, financial, institutional and environmental cntena. The environmental cnterion the EA suggests using for determining the eligibility of sub-projects is as follows:

No infrastructure construction/rehabilitation sub-project will be financed by the IDSMIP if it involves any of the following activities: (i) construction of significant new irrigation distnbution or drainage systems, (n) significant increase in the withdrawal of water from surface water sources, (iii) conversion of wetlands or other natural habitats for agricultural purposes through drainage or other means.

6.2.3 Use of Sub-Project Screening Checklists. Environmental screening will be incorporated into the regular project preparation cycle for sub-projects under the IDSMIP. Screenmg will begin with the identification and preparation of the sub-project proposal, followed by review and approval by the PIU, and end with execution of the sub-project by contractors under the supervision of PIU technical staff.

At the sub-project identification stage, the proposer (in most cases an eligible WUA), with the assistance of PIU technical staff and local environmental authonties as needed, will complete an environmental screening checklist (see Annex E). The checklist is designed to help identify potential environmental impacts, suggest the appropnate preventive actions and mitigation measures specified in the EA, and tngger (where necessary) further environmental review under the MENR EIA procedures.

6.2.4 PIU Review and Approval. The PIU will ensure that all sub-projects have properly completed environmental screening checklists and confirm their accuracy by means of a site inspection before approving execution of a sub-project under the IDSMIP.

Where the environmental screening checklist suggests the need for appropnate preventive actions or mitigation measures in location, design, construction or operation of a sub- project, the PIU will ensure that the appropriate preventive action or mitigation measure has been identified and that the actions or measures are followed in execution of the sub-project.

Where the environmental screening checklist triggers further environmental review under the MENR EIA Handbook, the PIU will ensure that the appropriate EIA document is completed and delivered to the MENR for review and that execution of the sub-project awaits approval by the appropriate MENR authonties. The PIU will assist the proposer in the provision of any additional information needed to facilitate MENR review.

6.2.5 MENR Review and Approval. Under the EIA Handbook all development projects with potential environmental impacts are required to comply with the environmental

9 01/03/03 Draft review requirements. The extent and depth to which these requirements are applied, however, depend on the severity of the potential environmental impacts, a decision that is made by MENR authorities in consultation with appropriate experts.

The vast majority of individual IDSMIP sub-projects (i.e., rehabilitation of existing imgation distribution and drainage systems), because they are small in scale and limited in impact, should not require formal MENR review. The generic preventive actions or mitigation measures identified in the EA should be used to address potential environmental impacts in these cases. However, a few significant sub-projects (e.g., the Barahmtepe headworks, pumping station renovation) may require MENR review and approval. For these sub-projects the PTU will ensure that the proposer prepares the necessary EIA document and submits it to the MENR for review and approval.

Under the ETA Handbook, MENR has three months in which to review and evaluate the sub-project EIA document and provide its decision to the proposer with appropriate conditions to ensure protection of the environment. MIENR could either approve the sub-project on the condition that its mitigation measures are followed or disapprove the sub-project because of the nature of the environmental impacts.

6.2.6 Field Supervision. The PIU technical staff will monitor execution of all IDSMIP sub-projects to ensure that environmental considerations are incorporated, i.e., that appropriate EA-recommended preventive actions or mitigation measures are employed or that MENR-required mitigation actions are taken.

6.2.7 Sub-Project Completion and Monitoring. Once a sub-project has been completed, PIJ technical staff will certify that the appropnate preventive actions or mitigation measures have been executed and that any IENR-required conditions have been met. The PITJ's monitorng and evaluation unit also will monitor compliance with environmental requirements and the environmental impacts of the sub-project, and include the results in regular project reports.

6.2.8 Revision of Procedures. These procedures will be penodically reviewed and, as needed, revised on the basis of supervision experience and monitonng results.

6.3 Environmental Monitoring Program

As part of its overall responsibility for execution of the IDSMIP, the PIU will perform the regular monitonng and evaluation of project activities and periodic reporting required by the World Bank. The PIUJ will also be responsible for the environmental and social monitoring activities identified above as part of the preventive actions and mitigation measures proposed to address any potential adverse impacts. Under the RIDIP, the PIU began an environmental monitoring programme for the lakes and wetlands in the project area (Lakes Ag-gel and Sarisu); this monitoring will be continued under the IDSMIP. Further, the PIUJ will perform the additional monitonng activities identified in Table 6.2 below. In order to perform these environmental monitorng and evaluation functions for the project, the PIU will maintain its environmental specialist and contract additional technical support as needed.

6.3.1 Monitoring Environmental Screening and Implementation of Preventive Actions and Mitigation Measures. The PIU will routinely monitor implementation of the project's infrastructure rehabilitation sub-projects (i.e., tracking preparation, approval, and execution). It will also be responsible for monitonng compliance with environmental screening and review requirements and implementation of any preventive actions or mitigation measures

10 01/03/03 Draft required, either by the PrU or the MENR, as a result of environmental screening. This monitoring will entail reviewing environmental checklists for all sub-projects approved and penodically making site visits to verify that the appropriate preventive actions and/or mitigation measures have been implemented. The PIU also will conduct random evaluations of a sample of sub- projects to determine the effectiveness of the environmental screening and review procedures and impacts of sub-projects on the surrounding environment.

Furthernore, the PIU will periodically monitor a set of specified indicators of environmental and social/health impacts of the IDSMIP (see below). These indicators will include water quality, incidence of water-related diseases in the project communities, and measures of biodiversity. Additional indicators will be developed and incorporated into the monitonng program over the life of the project.

This environmental and social monitonng will be incorporated into the overall IDSMIP project monitoring plan required by the World Bank as part of project performance. The results of such monitoring will be recorded and maintained by the PIU throughout the life of the project. The PIU will report the results of its environmental monitoring program in the bi-annual progress-reports it submits to the Bank; Bank supervision missions will review the results of the monitoring program on a regular basis.

6.3.2 Monitoring Environmental and Social Indicators. In addition to the project process monitoring and evaluation described above, the PIU will monitor the environmental and social indicators identified in the analysis of preventive actions and mitigation measures. The purpose in monitoring these indicators is to determine, to the extent possible, the direct and indirect environmental and social impacts of project activities and, where necessary, make appropnate corrections to project activities in order to prevent or lessen adverse impacts. The proposed environmental and social indicators, as well as the responsibility and schedule for monitonng them, are shown in Table 6.2. A more detailed discussion of each of these indicators is found in Section 5.

Table 6.2 IDSMIP Environmental and Social Monitoring Program

EENX IRO I t N.T,,Fi~\ND SO - Q~O-N JNG; tSCHEDULE, -

CONSTRUCTION, OPERATION, AND MANAGEMENT:

Compliance with EMMP and environmental management guidelines for contractors - Site inspections PIU Once prior to, during and upon completion of construction Management of sediment - Data on extent of sediment contamination PIU Once before construction, follow up where needed AGRICULTURAL SOILS.

Soil and channel erosion - State of all field canals/drains/linings/hydraulic WUA (PIU) Monthly during irrigation structures season - Number of 'illegal' connections to canals WUA (PIU) Monthly dunng irrigation season Waterlogging and salinisation of soils - Data on subsurface water level and quality PIU (WUA) Twice each irngation - Soil salinity levels PIU (WUA) season 01/03/03 Draft

BIODIVERSITY AND HABITAT:

Sensitive wetland ecological monitoring PIU programme' (Ag-gel, Sarisu) - water levels Weekly - pH, EC, temperature Weeldy - inflow discharge Weekly - outfall discharge Weekly - water quality Semi-annually - plant survey Annually - wildlife survey Semi-annually

Water quality (1) and quantity (2) in collectors PIU Semi-annually (I) discharging into sensitive wetlands Weekly (2)

Important habitats identified on project farms PIU Site assessment at all - indicators for the implementation of site-specific (local environmental participating WUAs; preventive/mitigation measures (to be defined authorities) follow-up inspection together with the measures) annually SOCIAL AND PUBLIC HEALTH:

- Health statistics on incidence of water-related PIU (MoH) Annually diseases in project areas from State Statistical Committee or MoH distnct offices

6.3.3 Monitoring Implementation of the EMMP. In addition to the monitoring of environmnental screening and implementation of mitigation measures described above, the PIU will monitor its own implementation of the EMMIP and report'the results periodically to the Bank. The objective of this monitoring is to ensure that overall implementation of the various components of the EMMP (i.e., sub-project screening and review, implementation of preventive actions and mitigation measures, capacity building and training, and environrnental monitonng) is following the proposed schedule, and that the PIJ is tracking the environmental impacts of the project. Tracking the impacts would facilitate making any mnid-course corrections necessary to ensure sound environmental management in the project areas. Table 6.3 displays the proposed performance indicators the PIU will use for this momtoring.

Table 6.3 Monitoring Implementationl of the EMMP

-EMMP Activities Performance Indicators Environmental Screemng and Review of Sub-Projects -- Percentage of sub-projects with completed checklists -- Percentage of sub-projects complying with preventive actions /mitigation measures -- Days of PRU assistance provided to WUAs in checklist completion -- Percentage of sub-projects submitted to MENR -- Percentage of projects rejected Capacity Building and Extension/Training Program -- PIU environmental capacity -- Number of months of service of environmental specialist/environmental consultants -- Environmental extension/training -- Number of extension/training sessions/beneficiaries trained Environmental and Social Monitoring Program -- Environmental and social indicators monitoring -- Number of indicators established and monitored

'This is already included in RIDIP monitoring programme for RIDIP implementation penod

12 01103103 Draft

6.4 Environmental Capacity Building and Training Programme

In order to ensure proper implementation of the environmental screening and review procedures and resulting preventive actions and mitigation measures, the IDSMIP will carry out environmental capacity building and extension/training activities.

6.4.1 Capacity Building in the PIU, WUAs, and SAIC. The IDSMIP will ensure adequate environmental assessment and management capacity within the PITJ by both providing training to PIU management and technical staff and employing an environmental specialist for the project as was done under the RIDIP. The environmental specialist will work full-time, report directly to the project manager, and oversee the various environmental and social aspects of the project (see proposed terms of reference in Annex F). The project also will provide appropriate technical training, including study tours, to the environmental specialist in the particular skills needed to perform his project environmental oversight functions effectively. In addition, specialised technical support will be provided to the environmental specialist, through national and international environmental consultants, to ensure that sound environmental management practices are mainstreamed in the infrastructure rehabilitation components of the project. These consultants will be used to enhance the environmental capabilities of the PIU in specific techmcal areas (to be identified), such as environmental assessment, good practice prevention and mitigation measures, environmental monitoring, etc. Necessary monitoring equipment will also be provided in order to support implementation of the environmental screening and monitoring activities under the project.

In addition, in order to build environmental sensitivity and capacity among the project l5eneficiaries, the IDSMIP will ensure that the WUAs participating m the institutional development component of the project each designate an environmental counterpart for the e.iMronmental specialist in the PIU. The purpose of the WUA counterpart is to provide a point of contact for the PIU environmental specialist during the project, to raise awareness within the WUA with respect to environmental and resource management issues, and to ensure that environmental considerations (preventive actions, mitigation measures, monitoring indicators) are observed in execution of any infrastructure rehabilitation works within the areas managed by the WUAs. Under the direction of the PIU environmental specialist, the IDSMIP will provide environmental training and other capacity building to the WVUA counterparts and through them reach the other WVJA members and the rural population in general. The IDSMIP will also make available technical assistance, in the fonn of national and intemational consultants (as mentioned above) as needed, to ensure that the WUA counterparts manage their project-related environmental functions properly.

In order to ensure adequate environmental impact assessment and monitorng capacity within the SAIC, the IDSMIP should build ties to the World Bank's ongoing Urgent Environmental Investment Project (UEIP). Under the UEIP's capacity-building component, the project will train MENR officials, at both the national and local levels, in environmental impact assessment and environmental monitoring. The IDSMIP should work with the UEIP to ensure that such training addresses the assessment and monitoring of impacts of agnculture/irrigation projects and that MENR staff in the raions where the project will operate have undergone such training. To the extent practicable, the IDSMIP should also see that appropriate officials from SAIC, at both the national and local levels, have access to such training, either as part of the UEIP's programme or separately under the IDSMIP. In addition, the IDSMIP will provide the SAIC with access to national environmental experts, as needed, durng the project. These experts will work, under the direction of the P11 environmental specialist, with the appropriate officials within SAIC (e.g., the Department of Science, Design and Expertise) to

13 01/03/03 Draft provide technical assistance and training in environmental screening and impact assessment, integrated water resources management, environmental monitoring and evaluation, etc. (to be determined). Among other thmgs, the national experts will support SAIC in developing appropriate environmental screening and review procedures for project infrastructure rehabilitation activities and in updating the "Construction Norms and Rules for Reclamation Systems and Works," which date from 1986.

6.4.2 Environmental Training for the PIU, VUAs, and SAIC. As noted above, under the supervision of the PIU environmental specialist, the IDSMIP will provide national and international experts to deliver a range of technical training on environmental issues to PIU management and staff and to central and field office staff in SAIC. The objective of this training is to build the capacity in the PIU and in these other institutions to ensure effective implementation of the requirements of this EA/EMMIVP in particular, as well enhance environmental assessment and natural resources management capabilities in Azerbaijan in general.

The training will cover environmental awareness; national policy and legalregulatory requirements; environmental assessment guidelines and techniques; socio-economic impact surveying and analyses; species monitonng and evaluation; management of sensitive habitats; integrated water resources management; and and semi-arid ecosystem planmng and management; and other participatory training on specific environmental issues identified durng the project. The training will be delivered by the national and international consultants identified above, as well as by other providers, including qualified private sector firms and NGOs. This program also will include training trainers to provide extension services to the WUAs and their rural communities and providing refresher courses from time to time in all of the'topics identified.

The IDSMIP also will provide basic (less technical) training to the designated environmental counterpart and interested members of the WUAs and the project communities. The objective of this training is to raise the level of general environmental awareness in the WUAs and rural communities and to begin to build interest and capacity in integrated environmental management and protection of community resources. Ultimately, the training will build support for the environmental screening and monitonng programs, which originate at the WUA and cormmunity level. A sumnmary of the environmental training program provided by the I1)SMIP is shown in Table 6.4.

Table 6.4 LIDSMIP Environmental Training Programme

Intended Training Content Format Input Preparation Frequency Funding Audience Time Source PIU. Environmental awareness Half-day seminar 0.5 day 2 0 days Twice IDSMIP Management and (policy, regulations) durng Technical Staff project

Environmental Environmental screenung, impact One-day workshop 1.0 day 3 0 days IDSMIPr Specialist analysis

Overview of specific preventive One-day workshop 1 0 day 2.0 days [DSMIP actions/ mutigation measures (water management, habitat protection, sub-projects)

Environmental monitoring Half-day workshop 0 5 day 2 0 days " IDSMIP practices SAIC/Field Staff Environmental awareness Half-day seminar 0 5 day 2 0 days Twice IDSMIP durnng Environmental screening, impact One-day workshop I 0 day 3.0 days project D)SMIP/ analysis UEIP

14 01/03/03 Draft

Good practices, preventive actions One-day workshop I 0 day 2 0 days IDSMIP and mitigabon measures

Environmental mormtormg Half-day workshop 0.5 day 2.0 days IDSMIP/ practices UEIP WJUA Environmental awareness Half-day seminar 0.5 day 2 0 days On demand I:DSMIP Environmental Counterparts, Environmental screening, impact One-day workshop 1.0 day 3.0 days On demand IDSMIP Interested WUA analysis and Comunumty Members Good practices, preventive actions One-day workshop 1.0 day 2.0 days On demand IDSMIP

and mitigation measures I _I_I _ _

6.4.3 Agricultural Extension Services for Farmers. The analysis of the baseline situation and potential IDSMIP impacts (see Sections 4 and 5) identified needs for agncultural extension and training on several topics. This strengthening of farmer capacities is essential to sustainably improve agricultural productivity and prevent many of the potential adverse impacts of more intensive agricultural production. Furthermore, it is important that basic training to farmers is provided as and when the irrigation systems on their lands are rehabilitated. Access to affordable agricultural extension services should also be ensured throughout and beyond project implementation.

Proposed IDSMIP WUA training activities under the institutional development component (see Section 4.1.1) will include training on irrigation management issues and thus cover some of the identified needs. The topics on which additional agricultural extension/trainmg is required include the following: * Integrated Pest and Production Management' (IPPM); * Proper agro-chemical management practices, including approprnate methods of - * application, storage and waste disposal; ' Water-saving irrigation techniques (e.g., spnnkler- and drip imgation); * Erosion prevention (e.g., proper tilling, irrigation furrows); * Soil management techniques and maintenance of soil fertility (e.g., salt leaching, crop rotation, organic manure); * Vector control techniques; * Safe drinking water practices.

At present, agricultural extension and traming services in Azerbaijan are poorly developed. Some research activities and related dissemination of results are undertaken by the nine recently established Regional Agro-Science Centres (RASCs) of the Ministry of Agriculture but their extension capacities are very limited. No other larger-scale extension service providers are currently operating in the areas to be affected by the ISDMIP.

The World Bank's ADCP supports the provision of extension services in Azerbaijan2 . The infornation and advisory services component of this project (US$ 10 million in total) includes a sub-component of extension services and also funds information campaigns on agricultural issues. Phase one of ADCP activities started in 2000 and wqll be completed in

For more details on IPPM, see http //lwww fao.orgiWAICENT/FAOINFO/AGRICLTLT!AGP/ACGPP/IPM/,ipmff02 programrnes/02a htm 2 The project currently covers four regions Ganja (ralons Gazaksh, Agstafa, Tovuz, Shamkir, Kedabek, Dashkesan, Khanlar and Samur), Sheki (raions Belakan, Zagatala, Gakh, Sheki and Oguz), Beylagan (raions Beylagan, Imishli, Agjabedi, Fizuli - activities to start in 2003) and Masalli (raions Dzhaulabad, Masalli, Yardymly, Lerik, Astara and Lenkoran - to start in 2003) and Nakhicevan (raions Sarur, Babek, Sabuz, Culfa and Ordubad)

15 01/03/03 Draft

2004/2005. A second phase is likely to follow, and a third phase is planned for 2006-09. Relevant project activities include: o Training courses for farmers. About 100 training modules for two-day workshops have been prepared on such topics as water losses, effective water use, and prevention of soil salinisation. These training sessions are organised by private advisors (PA) contracted by the project; o Technical advice and technology demonstration to farmers through extension groups, individual advisory services and demonstrations; o Nation-wide information campaigns on "Pesticides Application and Ecological Balance" and "Legal and Economic Basis of Water Use and Effective Water Management" (launched in 2002), as well as on pest control for potatoes and grain crops, respectively (planned); o Dissemination of agriculture-related information, including on irrgation issues, through printed publications and radio/TV broadcasting.

The component is implemented (i) at the central level, by an Extension Support Centre (ESC) in Baku responsible for contracting Master Trainers and managing information campaignsi; and (ii) at the regional level, by Regional Advisory Centres (RAC), responsible for contracting PA to carry out farmer training and other activities in their area. Monitoring results so far are very positive, e.g. a total of 70,000 farmer contacts (June 2002).

Co-operation between the ISDMIP and the ADCP would provide a cost-effective solution for ensuring access to high quality extension services required under the proposed project. Therefore, the IDSMIP should seek to ensure that under the second phase of ADCP the information and advisory services component* is extended to the raions to be covered by ISDMIP2. At the same time, the ADCP extension and information programmes, including the monitonng activities, should be reviewed to ensure that the needs identified above are adequately covered. This applies, in particular, to health-related issues which are not currently included in the ADCP. Where necessary, additional training should be provided to master trainers, prnvate advisors and other ESC/RAC personnel and the training methods should be adjusted to effectively reach the target groups3. Concerming monitoring, besides access to extension, it should assess the adoption of the recommended practices. The IDSMIP should also ensure that ADCP extension and training services are provided prior to or inmmediately upon the start of planned ISDMIP infrastructure rehabilitation activities. The selection of topics for the training sessions should continue to be primanly demand-driven but adequate coverage of the above-mentioned topics should be ensured by providing, if necessary, additional sessions in the villages concerned.

6.5 Implementation Arrangements

Responsibility for implementation of this EMM will be shared among the PrU, SAIC, and MENR. The PIU will have overall responsibility for implementation of the IDSMIP and will ensure that the EMMP is fully integrated into implementation of the project, including monitoring and reporting as required by the World Bank. The PIU will ensure that all rehabilitation sub-projects undergo environmental screening (and MENR review where necessary) and monitor their implementation of required preventive actions and mitigation measures. The

' The Centre employs a National Specialist on WUAs. 2 ADCP is already planning to investigate the existence of potential private contractors that could provide advisory services throughout the country

For example, women play a central role on the provision of drinking Nvater for the family and related training should thus be targeted to them.

16 01/03/03 Draft

PIU will also work closely with SAIC and MENR in carrying out their environmental monitoring and training programs.

SAIC and MENR will oversee implementation of the EMMvIP by the PIU, with the former supporting the PFU in its work with local SAIC offices and WUAs and the latter supporting the PIU in its review of potential impacts of the rehabilitation subprojects and in environmental quality monitoring. SAIC will also manage the national experts contracted to provide technical assistance and training to SAIC staff and field offices.

Finally, the WUAs, through their environmental counterparts, will ensure that environmental considerations are incorporated into their activities, not only in the rehabilitation of irrigation infrastructure but in improved water and soil resources management among their members.

6.6 Implementation Schedule

Implementation of this EMMP will begin with review and refinement of the environmental monitoring and capacity building and training/extension programmes identified by the EA in the first quarter after project effectiveness. The PIU then will undertake implementation of the capacity building and monitoring programmes and begin the screening and review process for rehabilitation sub-projects (expected to start in the second year of the project), continuing these activities throughout the life of the project.

Training activities will take place throughout the life of the project, on the basis of identified needs, with scheduled training for PIU and SAIC staff occurring early in project implementation, followed by training programmes with the WUAs and in the local communities. Such training would be revisited, updated, and delivered a second time during the project to the PFU and SAIC personnel and on an as needed basis to the WUAs over the life of the project. The national and international consultants dedicated to the PIU and the national environmental experts financed for the SAIC will be part-time for the life of the project.

The monitoring program for environmental screening will run continuously for the life of the project, while periodic monitoring will be used to evaluate the impacts of mitigation measures and track baseline environmental conditions in the project area.

The proposed schedule for implementing the various components of the EMMP is shown in Table 6.5 (to be completed during the next mission with PIU and preparation team).

Table 6.5: EMMP Implementation Schedule

t t Major EMMPActMties" 1 Q" 2'QQ r sQi; 2 Q 3rQ 'Y`4 Q' Y y3r _ - ~~-Y1 Vi VI Yl' Y 2,~ '2- ~Y2 -Y2,, 'Y3 '3~, y 3,, ;Y3'

Environmental Screening and Review of Sub-projects . -- PIU review (MENR as needed)

Capacity Building and Training Programme -- PIU environmental specialist t

-- WUA environmental 4 - 1 ' counterparts . -- National/international consultants * : ______.__.

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-- National experts

-- Training PIU

-- Trauimg: WUA

-- Extension Services (ADCP)

Environmental Monitoring Program -- Ecological monitonng from RIDIP -- Environmental/social indicators new to IDSMIP

6.7 Proposed Budget and Funding Sources for EMMP Implementation

The estimated costs of implementing the various components of this EMMP are displayed in Table 6.6. The costs are broken down in terms of personnel expenses (i.e., the full- time environmental specialist and part-time national and international consultants), monitonng programme costs (i.e., extension of the RIDIP ecological monitoring for four additional years, as well as the additional ecological and social monitoring in the IIDSMIP), training costs (i.e., preparation and delivery, training materials, and incidental meeting arrangement costs), and equipment (i.e., additional analytical equipment for environmental monitonng and office equipment).

The IDSMIP will finance most of these items, but the project should make every effort -to ensure that the Government shares some of the expenses that support Government functions (e.g., momtoring by the MoH) and that related World Bank projects finance some of the activities where appropriate (e.g., extension advisory services by the ADCP, training for SAIC personnel by the UEIP). These costs will be included in the total costs of the IIDSMIP and will be financed with funds from the World Bank credit. No additional costs are envisaged as a result of the EMMP.

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Table 6.6: IDSMIP Budget for EMMIP Implementation

'EiNLNP Cornponen Quanltih-- nic Rale Cost .---.: ;- .; . ~ ~ -: - Utis$ Personnel: PIU Environmental Specialist (4 additional years*) 48 m** 600 /m 28,800 Consultants (national/international, part-ti me) - national experts for SAIC (1 m/year) 6 m 1,000/m 6,000 - national consultants for PIU (I m/year) 6 m 1,000/m 6,000 - intemational consultants for PIU 2 m 15,000/m 30,000

Monitoring Programme.

- extension of RIDIP ecological monitoring 60,000 programme (4 additional years*) - additional ecological and social monitoring in 77,500 IDSMIP (experts, sampling, lab analysis) - review of monitoring programme data 6,000

Training Programme.

- preparation and delivery (workshops, etc.) 12 m 1,000/m 12,000 - materials and supplies 2,000 - meeting arrangements 2,000 Equipment, Matenals:

office (equipment, maps, space digital mapping, 25,000 --. supplies, etc.) - monitoring (analytical equipment, lab analyses, 20,000 EC/pH meters, h/m gauges, gauge boards, etc.)

Small-scale environmental investments (e g, fish 30,000 protection nets, planting/rehabilitation of shelter belts) TOTAL 305,300

* first two years covered by RIDIP ** person months of labour

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APPEND1X:

BASELINE DATA

Table A-1. Kura River: Concentrations of Dissolved Matter (mg/I), Mid-November, 1998

Sampling Point No. #1 #2 #3 #4 #5 #6 #7

Kura River, Yevlakh Mallakend Javad Talish Ali- Salyan Neftecala Measurement Point Bayramli

Component Dissolved Oxygen (DO) 9.03 8.01 7.52 7.67 7.16 7.59 7.33 pH 8.15 8.49 8.39 8.37 8.48 8.49 8.44 Ca42 49.2 56.5 38.5 69.2 70.8 71.9 65.5 Mg+2 20.1 18.4 18.4 24.3 26.3 24.0 29.8 NH4 0.07 0.09 0.06 0.10 0.11 0.11 0.10 NO2 0.023 0.023 0.076 0.020 0.023 0.033 0.033 NO3 2.66 1.88 2.61 5.48 6.19 5,41 3.51 Na + K' 60.4 49.0 70.7 47.9 54.8 44.9 38.9 1 HC0 3 167.3 137.3 194.2 167.8 170.9 169.5 150.8 C1- 26.0 27.5 20.1 48.3 57.0 48.5 40.0 SO4-2 151.6 159.1 127.4 158.5 169.3 169.5 177.3 Total Ions 477.9 450.1 472.0 521.6 555.4 513.9 506.0 3 P04 0.004 1.004 0.09 0.005 0.007 0.008 0.007 Si 4.9 4.7 5.7 5.2 6.9 6.2 7.2 Zn4 2 N/D* 1 3 4 1 3 CU42 2 1 3 4 5 5 0 Oil Products 0.02 0.01 0.03 0.01 0.006 0.03 0.02 Pesticides DDT 0.0018 N/D 0.006 N/D N/D N/D N/D Hexachlorane 0.0015 N/D 0.002 N/D N/D N/D N/D Heptachlorane 0.007 N/D 0.001 N/D N/D N/D N/D Phenol 0.02 0.002 0.004 0.003 0.005 0.005 0.002 *N/D Not Determined

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Table A-2. Samur River, Average and Maximum Concentrations of Dissolved and Suspended Matter (mg/i) Pre-1986

Sampling Location 0.5 km below the 5 km above outlet to confluence of Usuxchay Caspian River, Lagestan Dag estan Property Average Maximum Average Maximum Dissolved Oxygen (DO) 6.88 9.64 7.57 9.17 BOD5 0.89 1.63 1.28 1.59 COD 7.9 14.0 7.3 11.2 Ammonium Nitrogen (NH4) 0.09 0.21 0.33 0.91 Nitrite (NO 2 ) 0.006 0.012 0.016 0.026 Nitrate (NO3) 0.71 0.87 0.52 1.01 Total Phosphorous 0.047 0.076 0.054 0.116 Oil products 0.10 0.23 0.10 0.28 Phenol 0.001 0.003 N/D N/D Surfactants 0.014 0.054 0.009 0.043 Copper 0.003 0.009 0.009 0.025 Zinc 0.001 0.006 0.002 0.012 Aluminum 0.006 0.015 0.006 0.007 Manganese 0.009 0.032 0.008 0.013 Titanium 0.009 0.018 0.009 0.011 Suspended particles 1065 2531 1943 7771 c, Radioactive chlororganic 0.0068 0.017 0.0058 0.020 y,'Radioactive chlororganic 0.0040 0.0083 0.0042 0.011

21 01/03/03 Draft

Table A-3. River Qudyalchay, Average and Maximum Concentrations of Dissolved and Suspended Matter (mg/i) Pre-1986

Sampling Location 0.5 km above the town of 0.5 km below the town of Quba Khachhmaz Property Average Maximum Average Maximum Dissolved Oxygen (DO) 7.56 10.75 5.05 7.99 BOD5 0.76 1.81 1.70 2.90 COD 4.6 5.5 13.5 22.3 Anmnomum Nitrogen (NH4) 0.05 0.08 0.08 0.12 Nitrite (NO2) 0.006 0.014 0.020 0.073 Nitrate (NO3) 0.62 1.24 1.04 1.99 Total Phosphorous 0.070 0.128 0.102 0.132 Oil products 0.001 0.03 0.001 0.07 Phenol 0.003 0.008 0.008 0.015 Surfactants 0.023 0.054 0.043 0.094 Copper 0.003 0.005 0.005 0.008 Zinc 0.003 0.012 0.004 0.009 Alunmnum 0.007 0.010 0.005 0.008 Manganese 0.007 0.020 0.005 0.014 Titanium 0.010 0.020 0.010 0.020 Suspended particles 271 838 215 498 ax, Radioactive chlororganic 0.0002 0.0020 0.0010 0.0110 y, Radioactive chlororganic 0.0015 0.0160 0.0022 0.0123 Benzoic acid 0.6 1.3 2.0 2.8 Furfural (C5 H4 02) 0.24 0.45 0.36 0.48

22 01/03/03 Draft

Table A-4. Soil Characteristics of the Qusar Foothills Area, SAC'.

Soil Group Soil Location Slope (%) Grain Depth Salinity, Melioratio Crop Nam Properties to Alkalinity n Needs Suitability e Soil GW, Thickness, Saturation (m) (m) Capacity, (m3 /ha) Non- High 2-10 Clay to clay Tenths None Terracing Most suitable limy elevations of loam, of to prevent for field brow nver fans, Shallow to sometimes meters erosion crops. Some, n to foothllls moderately gravely clay only for light deep, some loam; some Stone perennials grayi Primarily, on eroded to w/ deep lime removal sh the nght bank severely horizon, brow of the SAC, eroded slightly stony Fertilizing n some also on surface the left bank Between 1400-1600 and 2900- 3700 II Grass Central 2 Sandy clay 3 - 5 < lg/l Drainage Suitable for land portion of loam In places, all regional grayi alluvial - N/D 2800-3100 slightly Agro- crops sh colluvial fans alkaline techmcal brow Clay to heavy measures n to clay loam, to improve solon some gypsum productivit etz salts y

______3 70 0 _ _ _ _ III Grass Lower 2 Non-salme to 3 - 10 1-3g/l, Drainage Suitable for land alluvial - slightly Slightly all regional to colluvial N/D saline, clay saline at Agro- crops non- plain loam and shallow technical limy clay depth measures grass land 3500-3800 IV Grayi Central part 1 - 4 Slightly I - 3 3-lOg/l Leaching Following sh of the alluvial saline to and Slightly melioration, brow fans of the N/D slightly less salme to Manure suitable for n to Cagacukcay, alkaline clay than 1 sligltly and all regional light Velvehcay loam and alkaline fertilizing crops grayl and sandy clay sh Devejicay loam brow Rivers n 3500- 4000 Alluvial fans of the 3 - 25g/1 Gilgilcay, Clay loam Slightly- to Atacay and and sandy 5 - 10 Moderately

Compiled from Section 4 1, Samur Apsheron project in Azerbaijan, Feasibility Study, SEYAS-SUIS Consortiumn (year'), using local soil properties termiology

23 01/03/03 Draft

Tugcay clay loam - saline and Rivers and alkaline Light old terraces 3500 -4000 grayi of the sh Caspian Sea brow n to light brow n

V Grass Alluvial fans N/D Clay, sandy Betwee 1-I Og/l Drainage N/D land of the Agcay, clay, clay n less to Qaracay, and N/D loam and than 1 Leaching grass Velvelecay clay and 1 - with large land- Rivers 3 amount of swa 3100-3450 water mp (10,00m 3 /ha) VI Salin Lowlands 0-2 Clay loam to 1 - 3, Between Drainage Suitable for e and between clay and 3 - 10 and cereals, alkali alluvial fans; N/D 10 >25g/l Application vegetables ne coastal plain Mostly, 3100 l of gypsum and fodder grass and alluvial - 3800, but to reduce following land, depressions up to 4500 alkalnity melioration light of old brow Caspian Sea Leaching n to terraces with very brow large n amount of water (24,000 - 30,000m 3 l______/ha) VII Prirm Coastal plain N/D Sandy texture N/D N/D Measures Vmeyards tive and against and fig sand depressions N/D 720 wind orchards y soil between sand erosion dunes Sprinkler/ drip irrigation Note: N/D - No data.

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Table A-5. Prevalence (in % of the Total Irrigated Area) of Saline and Alkaline Soils, Kura- Araz Plain1

Parameter District Property Imishli Saatli Sabirabad Beylegan

Lrrigated area (ha) 45,856 54,096 65,267 52.801

Drained area of 44.7 100 100 71.4 the irrigated area

Salinity of <0.1 98.2 irrigation water 1.0 - 2.0 100 100 100 1.8 (g/l), in % of total >2.0 - - - - Salinity Non saline 49 25 56.5 63.4 classification of Slightly 40 58.3 33 31.8 irrigated soils Moderately 7.8 15.9 6.8 4.2 (%) Highly 3.2 0.7 3.7 0.6 Alkalinity Neutral 26.1 100 classification of Slightly 51.3 - irrigated soils Moderately 22.5 - (0/0) & highly Classification of Good 34.8 0.2 0.5 52.8 irrigated soils by Adequate 43.7 82 86 38.2 GW depth and Inadequate 21.5 17.8 13.5 10.6 salinity (%) Note: Soil salinity follows USDA soil suitability classification. Not saline - < 0.25 g/100 g soil; slightly saline - 0.25 to 0.50 g/100 g soil; moderately saline - 0.50 to 1.0 g/100 g soil; and hlghly saline - > 1.0 g/100 g soil.

While different figures are presented in other reports (e g, RIDIP Feasibility Study, Section 4 1, op. cit ), the proportions arc generally upheld. The differences are probably the result of a combination of dynamic factors (i e, changes with time) and insufficient sampling coverage at any point in time

25 01/03/03 Draft

Sources for Biodiversity Text (Section 3):

Caspian Sea Biodiversity Strategy and Action Plan, final draft, July 2002. Prepared by Fauna and Flora International for the Caspian Environment Programme at website http ://www.caspianenvironn-ent.org/bsap.lhtm

Conservation Internationalwebsite at hrtp:./wlAvw biodiversitv,hotspots.ore/

Krever, V.; Zazanashvili. N.; Jungius, H: Williams, L; Petelin, D. (eds.): Biodiversity of the Caucasus Ecoregion. An Analysis of Biodiversity and Current Threats and Initial Investment Portfolio. WWF. 2001.

Wildworld TerrestrialEcoregions website at http:1/1www. nationalgeogracphiccoin!

Sources for Biodiversity Text (Section 4):

Birdlife Internationalwebsite at httP://vw1v.birdhife.org/

CaspianEnvironment Programme:Azerbaijan National Shore Profile at CRTC for Integrated TransboundaryCoastal Area Management and PlanningDepartment of Environment, Marine Environment Research Bureau website http://www.caspianenvironn-ent.org/itcamp/azeri.lit

CES ConsultingEngineers Salzgitter GnmbH: Environmental assessment and monitoring in the project areas of the Samur-Aspheron Canal and Main Mill Mugan CollectorDrain. FinalReport, March 2000. (referred to as RIDIP EL4-2 above)

CES Consulting Engineers Salzgitter GmbH: EnvironmentalImpact Assessment on RIIDIA II, November 1999 (referred to as RIDIP EIA above)

Chemonics International Inc.: Biodiversity Assessment for Azerbaijan. Task Order under the Biodiversity & Sustainable Forestry IQC (BIOFOR), February 2000 at website http://www.biofor. com/documents/Azerbaijan-Biodiversity-Report.pdf

Ecological Baseline Report, Baseline Appendix to the Environmental and Social Assessment (Azerbaijan) of the Baku-Thilisi-Ceyhan Oil Pipelineproject t http):/ilv/ww.caspiandcivelopnzenitanaZexvpolt.conz/BTCI/en&iesial. asp

National Strategyfor the Preservationof Biodiversity at http:wwviv.wgrida.no!

Republic of Azerbaijan: Brief report prepared by Azerbaijan to the 8th Conference of the Contracting Parties to the Convention on Wetlands (18-26.11.2002) at website http://www.ramsar.org/cop8_nrs_azerbaian_briefreport2.pdf

UNEP- WCMC Nationally DesignatedProtected Areas at http://www. unep-wcmc. orgi

26 ANNEXES

A. POLICY/LEGAL FRAMEWORK FOR ENVIRONMENTAL MANAGEMENT IN AZERBAIJAN - APPLICABLE LEGAL AND REGULATORY REQUIREMENTS

B. BIODIVERSITY AND PROTECTED AREAS

C. WATER QUALITY AND SOIL CONDITIONS

D. PUBLIC CONSULTATIONS

E. ENVIRONMENTAL SCREENING CHECKLIST

F. TERMS OF REFERENCE FOR PIU ENVIRONMENTAL SPECIALIST

G. GUIDELINES FOR CONSTRUCTION AND MANAGEMENT PRACTICES 01/03/03 Dmft

ANNEX A

POLICY/LEGAL FRAMEWORK FOR ENVIRONMENTAL MANAGEMENT IN AZERBAJAN

1[. Introduction

Background. The World Bank is in the process of preparing a proposed Irrigation Distribution System and Management Improvement Project (IDSMIP) in Azerbaijan as a follow- on to the existing Rehabilitation and Completion of Irrigation and Drainage Infrastructure Project. As currently proposed, the IDSMIP would provide support for development of Azerbaijan's emerging waster user associations (WUAs) and undertake selective rehabilitation and improvement of irrigation and drainage infrastructure. The initial Integrated Safeguard Data Sheet for the IDSMIP classified it as a Category "B" project (requiring partial assessment), triggerng the Bank's safeguard policies for environmental assessment, safety of dams, and projects m international waters. An environmental assessment (EA) of the proposed project is scheduled to be completed by the end of 2002.

Assignment. As part of the preparation for conducting the EA, this report assembles readily available information on the policy/legal framework for environmental management in Azerbaijan, specifically reviewing and describing relevant national policies, laws and regulations governing environmental quality, management of water resources (including national and international water bodies), public health and safety. It also includes relevant international conventions on environmental management to which Azerbaijan is a party and significant bilateral agreements on water sharing (as available).

Methodolo&. The information on Azerbaij an's policy/legal framework described in this report was gathered over the course of meetings with officials in the executive and legislative branches of the Government of Azerbaijan' and in discussions with a local environmental law non-governmental organisation.2 Additional information was also drawn from the review of two recent donor-financed environmental project reports on environmental and natural resources management legislation in the region.3 These efforts produced sufficient information to provide a general overview of the policy/legal framework for environmental management in Azerbaijan, particularly as it might be relevant to the proposed irrigation project. The information necessary to provide a more comprehensive description of the framework, however, was either unavailable in English or unobtainable during the mission.

II. National Environmental Policy

A. National Environmental Concept (Agenda 21)

Probably the first statement of national environmental policy for the newly independent Republic of Azerbaijan was the National Environmental Concept prepared by the State Committee for the Environment following the UN Conference on Environment and Development in Rio de Janeiro in 1992. Based on the principles of the Agenda 21 program adopted at this conference, the Azerbaijan National Environmental Concept identified a number of national priorities and general directions with the goal of implementing measures to improve the environment. These can be summarised as follows:

* Protection of the biosphere * Continuous utilisation of natural resources * Decrease and disposal of waste * Rational use of energy * Reduction of risk associated with human activity

The National Environmental Concept served through much of the 1990s as a blueprint for the policies and actions of the State Committee for the Environment, as the impetus for enactment of a number of laws promoting environmental protection and sustainable development, and as guidance for the environmental activities financed by the United Nations Development Programme under Agenda 21 in Azerbaijan.

B. National Environmental Action Plan (NEAP)

Prepared from 1996-1998 with assistance from the World Bank, the NEAP of Azerbaijan represents one of the most recent articulations of national environmental policy and identification of the country's environmental priorities and intended actions. In his Forward to the NEAP, Vice-Prime Minister Abid Shariffov announced the Government of Azerbaijan's commitment to environmental reform (see Box 1).

Box I Government of Azerbaijan's Commitment to Environmental Reform, ... At this stage of the country's- development- the issue-of natural rcsource management is' of paamodnt_l ,importance for the nation. The- disastrous environniental situation miherited, from the 'former Soviet Union is affecting every aspect of the country's life and presenting a clear threat- to ihe health and well-being of its :popuia'tion., The Govcmment of Azerbaijan is committed t6oimproving environmental conditions, in the country, and it'has- included the environ'ment as one of the primary concerns of:the reform agenda. Unfortunately, econio'mic, social, -and-institutionaLconstraints-inhibit-the-counfrv-'s-abilit.v_to-address-the-troblems-DromDtl.v_arld-effectivel.v.-n- 01/03/03 Draft policy and investment decisions in the agriculture, water supply and sanitation, and energy sectors.

Box 2 Key Environmental Problems and Action Priorities

Water Quality. Water resourccs are critical for the country's economy. Water resources are limited and losses during distribution are high - reaching 50 percent in agnculture, which accounts for 70 percent of total water usage.... Degradation of Agricultural Lands, Loss of Forestry and Biodiversity. About half of the country's land resources are being used for agriculture. Some 1.2 million ha is affected by high salinity; many soils are exhausted by years of poor agricultural practices and policies; and many areas are damaged by erosion. Loss of productive land in some locations is resulting in increased pressure on fragile lands and resources in other locations.... (Executive Summary, NEAP, 1998)

C. Statements of the President of Azerbaijan

The President of the Republic of Azerbaijan, Heydar Aliyev, has underscored the importance of environmental protection and natural resources management to the future of the Azerbaijan Republic. Recognising the legacy of natural resource exploitation without environmental concern left behind by the former Soviet Union, the President appreciates the dauntmg challenge that environmental stewardship presents his Government in the transition period to a market economy with weak financial resources available (see Box 3). Committed to addressing the environmental priorities of the country, the Government of President Heydar Aliyev has actively sought intemational collaboration in the environmental arena, encouraging technical assistance and investments from the international financing institutions, bilateral donors, and the private sector.

Box 3 Statement from the Office of the President of Azerbaijan on Ecology and Health Protection

Transition to market economy must exert a positive influence, as a whole, on the efficiency of exploitation of resources, as well as on the state of enviroTnent But in the very period of transition the ecological situation is becoming even more aggravated. Among the factors polluting the environment in the republic must be mentioned the worn out equipment and obsolete technology, discarded oil industry equipment scattered throughout the Apsheron Peninsula, continuing to pollute the environment and deforming the landscape. Very critical is the problem of recultivation of land polluted with oil. That's why protection of environment and questions of ecology have become fonnming the state policy. Based on the principles adopted by the world community, in a short penod of time a number of fundamental documents, namely, "Ecological Conception of the Azerbaijan Republic" and the "Law on Protection of Nature and Use of Natural Resources" have been drafted and ratified in the republic. Unfortunately, solutions to ecological problems are being carried out under the present circumstances of an economic crisis and acute budget shortages. It is evident that the necessary financing to resolve ecological problems is not available . . (Office of the President of the Republic of Azerbaijan, Official Home Page, 2002) 01/03/03 Draft

A.Overview of the Legal Framework Constitution. Adopted in 1995, the Constitution of the newly independent Republic of Azerbaijan recognises the importance of environmental protection among the pnncipal human and civil rights and freedoms it establishes for the people of Azerbaijan. Article 39 guarantees the people's right to live in a healthy environment, to acquire environmental information, and to secure compensation for environmental damage: Every Person shall have the right to live in healthy environment. Everybody shall have the right to collect information on environmental situation and to get compensation for damage rendered to the health and property due to the violation of ecological rights. (Article 39) All subsequent environmental legislation is grounded in this constitutional right to the maintenance of environmental quality, to access to environmental information, and to environmental equity. Legislation. Since its independence Azerbaijan has made important stndes in enacting environmental legislation. Table 1 presents an overview of the legal framework for environmental management, identifying the pnncipal laws and the date of their enactment, as well as indicating the legal authority provided and the Government institution charged with implementation. As the table indicates, the last decade (especially the last five years) has seen the adoption of a number of significant environmental management and public health laws. These laws, which cover the full range from environmental protection to natural resources management to public health and safety, establish a fairly comprehensive framework for environmental management in the country. The most relevant among these for the proposed irrigation project, of course, are the Law on Environmental Protection (1999), the Water Code (1997), and the Law on Amelioration and Irrigation (1996). These laws are included in the annex and descnbed in more detail in the following. B. Environmental Protection Laws In recent years Azerbaijan has enacted an array of new environmental protection laws, including a new Law on Environmental Protection, a Law on Atmosphere Air Protection, a Law on Industrial and Household Wastes, and a Law on Pesticides and Agro-chemicals. As a rule, these laws require further legal acts, decrees, and regulations, to permit effective implementation of their provisions. In most cases some but not all of these decrees and regulations have been promulgated. A brief description of these laws and their relevance to the proposed project follows. Law on Environmental Protection (1999). Azerbaijan updated its basic environmental protection framework law from 1992 with adoption of the Law on Environmental Protection in 1999. Intended to determine the legal, economic and social grounds of environmental protection, the stated purpose of the law is to ensure protection of the ecological balance, prevent harmful impacts from economic and other activities, conserve biological diversity, and promote rational utihsation of natural resources. The law recognises the state's nghts and responsibilities in the area of environmental protection, including setting national policy and strategic measures for its imnlementntinn dieve1lninr envirnnment2l narmc nnrl re-mintinn- randliwtlnc envirnnmentql Table 1

Overview of Legal Framework for Environmental Management in Azerbaijan

Constitution/Laws/Decrees Date Authority/Mandate Implementing Agency Constitution of the Republic of Azerbaijan 1995 Right to a healthy environment, to environmental information, and Government of Azerbaijan (Article 39 on Environment) to compensation for environmental damages Law on Atmosphere Air Protection 2001 (not available in English) Ministry of Ecology Law on Specially Protected Natural Areas and 2000 Authority for designation, management, and use of protected Ministry of Ecology Objects natural areas and protected natural resources Law on Technical Safety 2000 Authority for regulating potentially dangerous activities and Ministry of Ecology hazardous substances Decree on Approval of Rules for Determining 2000 (not available in English) Ministry of Ecology Water Protected Zones Law on Environmental Protection 1999 Framework law for environmental protection, authority for Ministry of Ecology environmental standards, monitoring, economic incentives, impact assessmcnt and public awareness Law on Ecological Safety 1999 Authonty for restriction of economic and other activities with Ministry of Ecology potential for environmental damage Law on Wildlife 1999 Authority for management, use and preservation of wildlife, Ministry of Ecology including endangered species, and their habitat Law on Water Supply and Waste Waters 1999 (not available in English) State Amelioration and Irrigation Committee Law on Industrial and Household Wastes 1998 Authority for regulating the generation, treatment, and disposal of - - industnal and household wastc -- Law on Fisheries 1998 (not available in English)

Decree on Regulations for Standards on Water 1998 (not available in English) State Amelioration and Use and Water Protection Irrigation Committee Water Code 1997 Authority for regulating the use and protection of water resources State Amelioration and (surface water bodies and groundwater) Irrigation Committee Forest Code 1997 Authority for regulating the protection and use of forest resources State Forestry Committee Law on Pesticides and Agro-chemicals 1997 Authority for registration, testing, and regulation of pesticides and agro-chemicals Law on Amelioration and Irrigation 1996 Authority for planning and management of land improvement and State Amelioration and irrigation activities Irrigation Committee Law on Sanitary and Epidemiological Welfare 1992 Framework law for national health programs, authority for air, Ministry of Health water, and food quality standards; momtonng programs 01/03/03 Draft

The law contains provisions for controlling public and private utilisation of natural resources, authonsing the establishment of limits and quotas and requiring special licenses for such utilisation by commercial activities. The law also requires maintenance of a cadastre of natural resources and establishment of a monitoring system for the environment and natural resources. In terms of economic regulation of environmental protection, the law authorises the use of economic incentives for environmental management, fees for utilisation of natural resources, and fees and fines for environmental pollution. To ensure ecological balance, the law authorises the establishment of environmental quality standards, discharge and emission lImits to control the range of environmental impacts. The law identifies specific ecological requirements concerning agricultural and land reclamation activities (Article 42). Furthermore, the law sets out specific requirements with respect to "ecological expertise" for the purpose of complete assessment of the environmental impacts of "economic and other activities" (discussed in more detail below). The law recognises and promotes environmental awareness, education, and information. Finally, the law provides for compensation for damages caused by violation of environmental legislation and authorises such violations to be resolved by the courts.

As the primary environmental protection law governing "economic and other activities" in Azerbaijan, the requirements of the Law on Environmental Protection will apply to the rehabilitation activities of the proposed project. Thus, it will be necessary to determine which decrees and implementing regulations necessary for execution of the law's various provisions have been promulgated. Certainly the proposed project must comply with Article 42's ecological requirements for agricultural and land reclamation activities, as well as the "ecological expertise" requirements for EA of the individual rehabilitation sub-projects financed by the project.

Handbook for the Environmental Impact Assessment Process in Azerbaiian (1996). Adopted in 1996 under authority of the Law on Environmental Protection of 1992, the EIA Handbook, which continues in force under the new Law on Environmental Protection of 1999, establishes the Government's policies and procedures with respect to environmental assessment of economic and other activities that are likely to have environmental impacts. Specifically, the Handbook identifies the types of activities subject to EA review (i.e., all private and public sector development proposals), the roles and responsibilities of applicants and Government organisations (the new Ministry of Ecology and Natural Resources) in the process, opportunities for public participation in the process, and cost recovery for the administrative costs of the EA process according to the "user-pays" principle.

The requirements of the EIA Handbook apply to the types of infrastructure rehabilitation to be financed by the proposed project. Therefore, individual, site-specific EAs may be required for each of the rehabilitation and improvement sub-projects undertaken under the Irrigation and Drainage Infrastructure Rehabilitation component of the proposed project.

Law on Atmosphere Air Pollution (2001). Azerbaijan adopted its first air pollution control law in 2001. (not available in English during mission) It is unlikely that any of the requirements of the air pollution law will apply to the rehabilitation activities financed by the proposed project.

Law on Industrial and Household Wastes (1998). Azerbaijan enacted this waste management law in 1998, setting Government policy with respect to protecting the environment from industrial (including agriculture and hazardous) and household (including non-hazardous) wastes. Based on specified principles, includmg protection of public health and the ecological balance, the law authonses government regulation, including norms and standards, of all aspects of collection, transportation, treatment and disposal of waste. Further, the law requires compliance with these standards, including special consent, during the design, construction and reconstruction of enterprises, plants and facilities that generate waste. Finally, the law authorises control of the import, export and transit transportation of waste through Azerbaijan, prohibiting the import and shipment of waste that cannot be treated safely.

9 01/03/03 Draft

While it is not clear that the necessary implementing regulations and standards have been adopted for implementation of the waste law, any waste generation and disposal resulting from the rehabilitation of irrigation works under the proposed project will be subject to the requirements of this law.

Law on Pesticides and Agro-chemicals (1997). Adopted in 1997, the Law on Pesticides and Agro-chemicals provides the legal framework for regulation of agricultural pesticides and agro- chemicals (including fertilisers, chemical agents, plant growth regulators, etc.). The law applies to pesticides and agro-chemicals both produced in Azerbaijan and imported from abroad, requiring testing and registration as well as compliance with regulatory controls on their production, import and export, packaging and labelling, storage and transportation, application and disposal. It authorises the Government to investigate agro-chemical soil contamination, set quality standards for agricultural food products, supervise pesticide and agro-chemical activities, and enforce legislative requirements.

Since the proposed project will not finance the purchase or application of any pesticides or other agro-chemicals, it is unlikely that any of the requirements of the pesticide and agro-chemical law will apply to activities financed by the project.

C. Natural Resources Management Laws

In recent years Azerbaijan has also strengthened its laws and codes for management and conservation of the country's natural resources, including new Water and Forest Codes, and Laws on Specially Protected Areas, Wildlife, Fisheries, and Amelioration and Irrigation. As with the environrmental protection laws, these laws require further legal acts, decrees, and regulations, to permit effective implementation of their provisions, and some but not all of these decrees and regulations have been promulgated. A brief description of these laws and their relevance to the proposed project follows.

Water Code (1997). Approved in 1997, the Water Code provides the framework for regulating the protection and use of water resources in Azerbaijan, including surface and subsurface waters, boundary water bodies, and the Azerbaijan sector of the Caspian Sea. To this end, the Code establishes the institutional arrangements for management of the use and protection of water resources. Specifically, the Code authorises the Government to determine policy for the use and protection of water resources, promulgate the rules for use of water resources, perform monitoring of water bodies, and provide for economuc regulation (fees for use) of water resources. The Code authorises "state ecological examination" (EA) of any projects for building and reconstruction of facilities affecting the condition of water resources. Further, it recognises different types of water resources uses, from agriculture to potable water to recreation and sport, and establishes the procedures for permutting these uses of water resources.

The Code describes the rights and obligations of water users and details the requirements for the use of water resources as: potable and service water sources; for health treatment, resort, recreation and sports purposes; for agricultural needs; for industrial and hydro-energetic purposes; for transport needs; for fishing and hunting; and for specially protected water resources. Furthermore, the Code provides for the protection of water bodes from pollution, silting, and depletion, as well as for the establishment of water protective zones. For economic regulation of water use, the Code authonses the charging of fees for the use of water. Finally, the Code establishes liability for violating the water laws of the country and the nght to compensation for damages caused by the violation of water legislation.

Law on Specially Protected Natural Areas and Obiects (2000). Building on the protected areas provisions of the Law on Environmental Protection, the new Law on Specially Protected Natural 10 01/03/03 Draft

Areas and Objects (presumably resources) provides the framework for organisation and preservation of specially protected natural areas and specially protected natural resources in Azerbaijan. The law bases the organisation and preservation of natural resources on the pnnciples of protecting biological diversity and natural ecology, promoting rational utilisation and scientific study of natural resources, and encouraging public participation and international co-operation in the field. To this end, the law defines the types of specially protected natural areas (e.g., natural reserves, parks, monuments) according to their purpose and utilisation, as well as various categories according to their mternational, national, and local importance. The law also specifies the limitations on utilisation, the legal procedures for ensuring preservation, and the land surveying and monitoring requirements for areas and resources covered by the law.

A national system of specially protected natural areas and resources has been established in Azerbaijan and any potential adverse impacts on these natural areas or natural resources from proposed project activities will have to be carefully reviewed to ensure compliance with the requirements of this law. Just as the existing irrigation project includes construction activities that have potential impacts on a number of specially protected resources, the proposed project will need to determine whether its rehabilitation of irrigation and drainage infrastructure may have potential impacts on designated protected areas or natural resources.

Law on Wildlife (1999). Although Azerbaijan has signed the UN Convention on Biological Diversity, it does not have legislation on biodiversity as such. The Law on Wildlife enacted in 1999 serves this purpose in establishing the legal pnnciples for utilisation and preservation of wildlife (and their habitats) in the country. Defining wildlife broadly and specifying its ownership by the nation, the law establishes the basic prnciples and institutional responsibilities for management of the utilisation and preservation of wildlife. It defines and regulates the types of utilisation of wildlife (e.g., hunting, fishing, research), as well as the duties of wildlife users. The law also establishes the framework for preservation of wildlife (including wildlife habitat and migratory routes), requinng expert ecological evaluation for activities that may have harmful effects on wildlife resources, protecting rare and .endangered species of wildlife, and setting requirements for registration, inventorying, and monitonng of wildlife resources. Finally, the law establishes a system of fees for utilisation of wildlife resources and penalties for illegal activities and violations of wildlife legislation.

Although the irrigation rehabilitation activities of the proposed project are unlikely to affect the wildlife resources (or their habitats) protected by this law (except in the case of wildlife in any specially protected areas that may be potentially affected), the project should ensure that the EAs performed for individual rehabilitation sub-projects include the expert ecological evaluation of potential impacts on wildlife required by the law.

Law on Amelioration and Irrigation (1996). The pnmary legal authority governing the irrigation and drainage infrastructure rehabilitation activities contained in the proposed project is the Law on Amelioration and Irrigation of 1996, which establishes the legal framework for activities in the field of land amelioration and irrigation. The law establishes the Government's institutional structure for management of the sector and defines its authority to include, among other things, setting national policy for the sector; implementing the national legislation; planning ameliorative and imgation measures; establishing standards, normns and rules; and registering information on and monitonng irrigated and ameliorated lands.

To ensure compliance with appropriate standards and technical requirements, the law specifies Government examination (including ecological examination) of amelioration and irrgation construction and rehabilitation projects (Article 18): "State ecological examination in the field of amelioration and irrigation shall be carried out in accordance with the legislation of Azerbaijan Republic on environment protection and ecological examination." Furthermore, the law expressly requires that all ameliorative and irrigation measures comply with the requirements of environmental and natural resources legislation (Article 22): 01/03/03 Draft

Ameliorative and irrigation measures should not result in deterioration of environment conditions. Ameliorative and irrigation measures shall be carried out following requirements of land, water, forest legislation of Azerbaijan Republic and the legislation of Azerbaijan Republic on environment protection, on land lots, on flora and fauna. (Article 22)

The law also specifies that the use of water in amelioration and irrigation systems shall be govemed by the water legislation (Water Code) and that water charges should be introduced to encourage efficiency and reimburse Government expenditures for water supply.

The proposed project will have to comply with all of the provisions of the Law on Amelioration and Irrigation, observing in particular the requirements of Articles 18 and 22 on ecological examination and environmental legislation, respectively.

Forest Code (1997). (not available in English)

Law on Fisheries (1998). (not available in English)

Law on Water Supply and Waste Waters (1999) (not available in English)

D. Public Health and Safety Laws

Azerbaijan has also recently revisited its public health and safety laws, enacting the Law on Sanitary and Epidemiological Welfare, the Law on Protection of Public Health, the Law on Ecological Safety, and the Law on Technical Safety. As with the environmental protection and natural resources management laws, these laws require further legal acts, decrees, and regulations, to permnit effective implementation of their provisions. It remains to be determined if these decrees and regulations have been promulgated. A brief description of these laws and their relevance to the proposed project follows.

Law on Sanitary and Epidemiological Welfare (1992) (not available in English)

Law on Protection of Public Health (1997) (not available m English)

Law on Ecological Safety (1999j. To address issues of human life, health, and safety and ecological balance, Azerbaijan enacted the Law on Ecological Safety in 1999. The law establishes ecological safety as a priority in implementing the country's development strategy and promotes international collaboration to this end. The law establishes the institutional arrangements for management of ecological safety and assigns responsiblhties for implementing measures to protect ecological safety. The law defines the Governnent's rights and obligations in the area of ecological safety as well as the rights of citizens and public associations. The law authorises the restriction of economic and other activities that threaten ecological safety and the removal of dangerous environmental impacts.

It is unlikely that the proposed project will pose any concerns in terms of ecological safety and therefore will not have to worry about compliance with the requirements of this law.

Law on Technical Safety (2000). Building on the Law on Ecological Safety, the Law on Technical Safety establishes the framework for regulation and control of dangerous activities and objects (presumably substances). The law authorises the establishment of technical safety requirements for the design, construction and operation of potentially dangerous facilities, the protection of employees from potentially hazardous substances; investigation of the causes of hazardous substance emergencies; establishment of technical safety expertise; and requirements for risk insurance for those operating potentially dangerous activities.

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It is unlikely that the proposed project will pose any concerns in terms of technical safety (operation of dangerous facilities or management of hazardous substances) and therefore will not have to worry about compliance with the requirements of this law.

IV. International Conventions and Agreements on Environmental Resources Management

As with its legal framework, Azerbaijan inherited a number of international conventions and agreements on environmental resources management from the former Soviet Union, but again in the decade since independence Azerbaijan has played an active role in intemational collaboration on environment through intemational conventions and agreements. Moreover, Azerbaijan's national environmental legislation specifies that the terms and requirements of international conventions and agreements take precedence over the terms and requirements of national law and regulations.

A. Overview of intemational conventions and agreements

Table 2 presents an overview of selected international conventions and agreements on environmental resources to which Azerbaijan is a party. The list of conventions and agreements is intentionally limited only to those with potential relevance to the proposed irrigation rehabilitation project (i.e., environmental resources/water sharing and management conventions and agreements). The table identifies the convention or agreement and the date Azerbaijan ratified it and provides a bnef description of its mandate.

B. International Environmental Conventions

As Table 2 indicates, Azerbaijan has signed many of the international environmental conventions developed by the world community over the last several decades. The ones of most relevance to the proposed irrigation project are those addressing transboundary waterways, biodiversity, migratory species, and wetlands. Azerbaijan ratified the principal conventions addressing these issues in 2000.

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Table 2

Overview of Selected International Conventions and Bilateral Agreements on Environmental Resources Management To Which Azerbaijan is a Party

Conventions Date Mandate .______. __ Ratified Protection and Use of Transboundary Watercourses and International 2000 Framework for managing and protecting transboundary surface waters and Lakes (Helsinki, 1992) ground waters; preventing and reducing water pollution Convention on Biological Diversity (Rio de Janeiro, 1992) 2000 Framework for conservation and sustainable use of biodiversity; equitable sharing of benefits ansing from use of genetic resources Conservation of Migratory Spccies of Wild Animals (Bonn, 1979) 2000 Framework for research, conservation and management of migratory species of wild animals Convention on Wetlands of International Importance (Ramsar, 1971) 2000 Framework for national action and intemational co-operation on conservation and wise use of wetlands and their resources Convention to Combat Desertification (Paris, 1994) 1999 Framework for national measures and international partnerships to combat desertification in and and semi-arid lands Intemational Trade in Endangered Species of Wild Fauna and Flora 1998 Framework for control of the international trade in species of wild animals and (CITES) (Washington, 1973) plants Environmental Impact Assessment in a Transboundary Context 1991 Framework for planning and conducting environmental impact assessments for (Espoo, 1991) projects likely to have significant adverse impacts across national boundaries Bilateral Agreements

Collaboration on Pilot Project on Monitoring and Assessment in the 1997 Collaboration to protect the Kura River basin from pollution and to promote the Mtkvan/Kura River Basin (Azerbaijan-Georgia) rational use of water resources Collaboration in Environmental Protection (Azerbaijan-Georgia) 1997 (not available in English)

Protocol on Water Resources Usage (Azerbaijan-Georgia) 1997 (not available in English)

Protocol on Sharing Samur River Water Resources (former Soviet 1967 Agreement outlining a 75-25 percent division of the water resources of the Samur Union: Republics of Azerbaijan-Dagestan) River between Republic of AzerbaUjan and Autonomous Republic of Dagestan Agreement on Sharing Aras River Water and Hydropower Resources 1963 Agreement recognising equal rights of both parties to water and energy resources (former Soviet Union-Iran) of Aras River

13 It remains to be determined, however, how effectively Azerbaijan has undertaken national implementation of these intemational conventions, through legislation, decrees, or regulations, and thus with which specific requirements the proposed project may have to comply.

C. Bilateral Agreements

Azerbaijan has signed a number of recent bilateral agreements with neighbounng Georgia on water usage, environmental monitoring and protection. These include an Agreement on Collaboration on a Pilot Project on Monitoring and Assessment in the Mtkvari/Kura River Basin (1997), an Agreement on Collaboration in Environmental Protection (1997), and an Agreement on Water Resources Usage (1997). (Unfortunately, these agreements were not obtainable.)

Azerbaijan also inhented several bilateral agreements on water shanng from its days in the former Soviet Union. During the 1940-50s the former Soviet Union entered into a number of bilateral agreements with neighbouring Iran, including a 1963 agreement (and subsequent sub-agreements) on economic and technical co-operation that dealt with development and utilisation of water and hydropower resources on the Aras River, which is the border between Iran and Azerbaijan. The terms of the agreement, which is still in effect today, recognise the equal rights of both parties to the water and energy resources generated by the Aras River. Execution of the agreement is directed by a bi-national commission established to oversee management of the Aras River reservoir, hydro-power generation, and water sharing between the two countries.

In another bilateral agreement, the former Soviet Union endorsed a protocol adopted by the Commission on the Samur River Water Division in 1967 on the sharing of the water resources of the >, Samur River, the border between the two Soviet Republics of Azerbaijan and Dagestan. The 1967 j protocol, which is still in effect, gives Azerbaijan a 75 percent share of the water and authonses the ,Mmnistry of Irrigation and Waster Use of Azerbaijan to oversee execution of the agreement. The Samur River is the source of water for the Samur Apsheron Canal and for much of the irrigated land in the north of the country. The Government of Azerbaijan would like to conclude a new bilateral agreement continuing this same division of the water resources of the Samur River.

These bilateral agreements set the parameters for the water resources available for much of the irrigated agriculture of Azerbaijan and, depending on the final sites identified for imgation and drainage rehabilitation, may have implications for the proposed project.

V. Conclusions

As this overview of the policy and legal framework for environmental management in Azerbaijan has indicated, the World Bank's proposed IDSMIP will have to comply with a number of legal requirements and standards contained in the environmental, water management, and public health and safety laws. The exact nature and extent of these requirements will have to be determined during the EA to be conducted for the proposed project and reflected in the Environmental Management Plan to be developed for project implementation. Thus the Environmental Management Plan should ensure compliance with Azerbaijan's legal and regulatory requirements as well as the Bank's environmental and other safeguard policies. 01/03/03 Draft APPLICABLE LEGAL AND REGULATORY REQUIREMENTS Based on the Report Prepared by Mr Samir Isayev, Local Consultant on the EA Team

RELEVANT REQUIREMENTS FROM TH1E LAW ON ENVIRONMENTAL PROTECTION (1999)

Implementing Regulations Setting Discharge Limits and Water Quality Standards

"RULES ON THE PROTECTION OF SURFACE WATER FROM POLLUTION BY WASTE WATER"

These rules were approved by Azerbaijan Republic State Comrmittee on Ecology and Control on Natural Resources Utilisation of January 04.1994.

General conditions

The present "Rules" were drawn up in accordance with "Fundamentals of Azerbaijan Republic legislation on public health" and "Fundamentals of Azerbaijan Republic Water Code". These rules purpose the prevention and elimination of the existing pollution by waste water the water bodies such as rivers, brooks, water reservoirs, lakes, ponds and artificial canals are using for domestic- drinking water supply.

Water reservoirs and waterways (water bodies) are considered as the polluted if water composition indices and its properties were changed under direct or indirect influence of production activity and domestic use, and this water became partly or completely unsuitable for one of kind of water use. Water pollution criterion is water quality deterioration in consequence of changing its organoleptic properties and the appearance of harmful substances to the human health, animals, birds, fish, forage and food organisms depending on the type of water use, as well as water temperature rnse, changing the conditions for normal vital functions of water organisms. Suitability of composition and properties of surface water using for domestic-drinking water supply is determined in compliance with the requirements and regulations are stated in present "Rules".

It is prohibited to make the leaks (spills) to the water bodies from oil pipelines, product pipelines, oil-fields, as well as the discharge of untreated wastewater, ballast water and the leakage of other substances from water transport.

It is prohibited to discharge the following types of wastewater to the water bodies:

- Wastewater that can be eliminated by using an efficient technology, maximum use in the systems of recycling water supply or zero-discharge productions; - Wastewater containing valuable waste, which can be utilised at this or at others enterprises; - Wastewater containing industrial raw materials, reagents, semi-products, finished products of the production in quantities exceeding the fixed standards of process loss; - Wastewater containing substances for which the maximum allowable concentrations are not established; - Wastewater that can be used for irrigation in agriculture under observance of sanitary requirements taking into consideration their composition and local conditions.

It is prohibited to discharge wastewater to the water bodies that are declared by Azerbaijan Republic legislation as the reserves. The requirements to the conditions of wastewater discharge in water bodies are stated in this "Rules" applies on the following:

- Existing water outlets of all kinds industrial and domestic wastewater from populated areas, detached residential and public buildings, as well as, municipal, medical-prophylactic, transport

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facilities, collective and state farms, industrial enterprises, including mine water, wastewater from water cooling, hydraulic ash removal, oil production, as well as waste water from irrigated and drained agricultural areas, including the areas are cultivated by pesticides and others wastewater from any facilities; - To all designed wastewater outlets for facilities are under construction, reconstructed and expanded, as well as the enterprises at which the production technology is changed; - To all designed sewerage outlets for populated areas and detached residential and public buildings.

The conditions of wastewater discharge to the water bodies are determined taking into consideration: - The level of possible mixture and dilution wastewater with water of water body on the path from the point of wastewater discharge up to design (control) section line of the nearest points that are intended for domestic-drinking water consumption, recreational and fish industry; - The water quality in water reservoirs and waterways are above the points are designed to the wastewater discharge.

The agencies on regulation of water protection and water consumption establish admissible quantity of harmful substances in wastewater (limits for wastewater discharge and concentrations of impunties containing in wastewater) at examination of the conditions for wastewater discharge to the water bodies, taking into account the development prospects for each facility. At that, the calculation is carried out in accordance with requirements are stated in present "Rules" to the water composition of water bodies are using for domestic-drmking consumption, recreational and fish industry.

The license for wastewater discharge to the water bodies from working enterprises remains valid during 3 years and then it should be renewal. The license for wastewater discharge to the water bodies from projectible enterprises should be revised in case if the conditions of water use are changed at-the area of water body receiving wastewater from projectible enterprise.

The agencies on regulation of water protection and water consumption have a right, in case of change of water use conditions at the water body, namely: the construction, which is not previously provided for new enterprises, changing intensity of flow or changing hydrological regime as a result of previously not provided for increase in water consumption for irrigation and other aims, the change of technological regime at the enterprises or other reasons, which entail previously not provided for change in quantity, composition and properties of wastewater, as well as the appearance new points for domestic-drinking water consumption, recreational and other reasons - to reverse the decision about discharge wastewater or to change previously approved requirements to the conditions of wastewater discharge for given enterprise taking into account a new situation at the water body in accordance with Azerbaijan Republic Water Code.

Technical conditions for wastewater discharge to the water bodies.

Drawing up of the project for sewerage system, purification, neutralisation and wastewater decontamination should be based taking into account:

- Quantity, composition and wastewater discharge regime; - Water body sanitary condition at the area of projectible facility; - Sanitary situation above and below of the point is intended for wastewater discharge from this facility; - Use of water body for domestic-drinking water supply and satisfaction of recreational need of the population as well as fish industry and other aims at present and in the future; - Officially adopted regulations for these "Rules" are suitable to the categories of water consumption

The water users should provide the carrying out of necessary investigations for study of the harmful level for substances containing in wastewater at the absence of fixed regulations to the

16 01/03/03 Draft beginning design works. Water users should give also bases to the maximum allowable concentrations for such substances in water correspondingly the nature and category of water consumption.

The possibility and practicability should be considered dependmg on specific local conditions during the decision of issue concerning sewerage system, punfication and wastewater neutralisation for industrial enterprise:

- The use of wastewater in the recycling water supply system for enterprises or shops; - The use of the purified and neutralised domestic wastewater in technical water supply system for enterprises or shops; - The use of wastewater from some enterprises for technical water supply of the other enterprises or shops; - The combined purification and neutralisation of wastewater from the canalised enterprise with wastewater from other enterprises for given region; - Independent discharge and purification of industrial wastewater from separate enterprises or shops in case if it facilitates the realisation of the recycling water supply system, recovering valuable materials from wastewater or their purification, decontamination and neutralisation.

It is necessary to provide for the set up of special adjusting tanks when industrial wastewater can be abruptly changed by the composition and quantity in time or under periodical (volley) discharge of highly concentrated wastewater. The place for wastewater discharge should be located at the downstream of river. This place should be also removed from the border of given settlement and all places of its water consumption taking into account the possibility of contra flow under strong winds and changing operation regime of hydroelectric power plant. Special devices for sampling and calculation of incoming wastewater should be provided for the system of wastewater discharge to the water body. Suitable automated devices for monitoring of water discharge, composition and wastewater properties should be provided if it is necessary.

Submission to the approval of the conditions for wastewater discharge to the water bodies.

The conditions for wastewater discharge is subject to the approval in accordance with established procedure with regulatory agencies on the water consumption and water protection, sanitary- epidemiological services and fishery protection in the followng cases:

- operating objects; - projectible and reconstructing objects; - at increasing efficiency of enterprises or production technology change that entail the changes in composition and quantity of wastewater.

The conditions for wastewater discharge to the water bodies should be subject to the approval in the following cases: - during the selection site and its official confirmation to the construction of enterprises, facilities and other objects that influence on water state; - dunng the examination of issue about reconstruction (upgrade) of enterprise or changing production technology; - dunng the consideration of technical and detailed design of sewerage system, purification, neutralisation and decontamination wastewater from new object and reconstructing (upgrading) enterprise; - during the examination of an issue about conformity of the conditions for wastewater discharge from any operating object.

The following documents should be subject to the approval during the site selection and its official confirmation for new object or reconstruction of existing:

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- the documents are describing: object; its productive capacity; quantity, composition and properties of wastewater that will be discharged to the water body; the location of water outlet; the level of specific harmful impurities in wastewater; availability of known methods for purification, neutralisation and decontamination of wastewater; availability of known methods to the utilisation and extracting various substances from wastewater and their use as well as if it is necessary the carrying out special investigations for justification of the project; - the documents are describing: sanitary state of the water body; its hydrological regime; the presence of wastewater outlets are located above the supposed place for wastewater discharge from given object; the composition and properties of water at this place; the presence of wastewater outlets are located between projectible outlet and nearest water consumption station; nearest water consumption stations for drinking, domestic and fish industry; prospective conditions for water body utilisation (possibility of the change of hydrological regime and appearance of new water users) are supported by official data.

The following documents should be submitted to the approval during project approval or examination of the issue about conformity of the conditions for wastewater discharge from operating object:

- the documents are confirming developmental work of the issues regarding utilisation of wastewater from enterprises in recycling water supply, and in case of unsatisfactory solution of the recycling water supply issues the materials define more exactly the technology and other conditions of the object that lead to the wastewater discharge to the water reservoir or waterway; the wastewater quantity is needed to the discharge; the nature of water reservoir or waterway in relation to hydrological, sanitary and fish industry; the calculated (control) stations for water consumption; - the documents are confirming developmental work of possibility for utilisation wastewater at other enterpnses are located at this region or use of wastewater from other enterpnses for techmcal water supply of given enterprise; - the calculated data are confirming that during wastewater discharge the composition and properties of water at -design (control) stations of the water body will meet the regulation requirements are stated at present "Rules"; - the diagram, type, efficiency of treatment facilities, the main design characteristics and expected technical efficiency (at percentages and absolute concentrations) of projectible (reconstructed, updated) and operating facilities for purification, neutralisation and decontamination of wastewater; - other local conditions are discovered during design and operation as well as the conditions are corrected at the project or in process of operation - the matenals are confirming the need of using in the production technology of a new reagents and materials.

The implementation of all requirements and conditions that were introduced by regulatory body at the stage of site selection during preliminary approval are verified during project approval. The deviations from earlier agreed conditions are caused by unforeseen consequences during project development should be noted in detail and these deviations should be separately recorded at the project that is submitted to the approval.

The following is subject to the approval by regulatory agencies on water consumption and water protection:

- all works are carrying out within water bodies on: dredging, deepening and cleanng watercourse, construction of bottom trenches, pipe subway, product pipelines, preparation to the start-up of hydraulic structures and passing water through these facilities, extraction of mmneral products, drags operation and water reservoirs construction; - coastal facilities placement for receiving wastewater, ballast water and wastewater from ships; 18 01/03/03 Draft

- main class of the ships are intended to the use for collecting wastewater from water transport objects with the purpose of prevention of products leakage from product pipelines, as well as main class of the ships are intended to the disposal of oil products from water surface and all class of ships of water transport. Assessment Criteria of Water PoBlution.

Maximum allowable concentrations Sanitary- Limiting index of domestic water Fish-farm water No. Name of ingredients insalubrity use use No less than 1 Dissolved oxygen General requirements No less than 4,0 4,0/6,0 Total biochemical No more than 2 oxygen demand General requirements 3,0/6,0 No more than 3,0 3 Iron, Fe3 Organoleptic 0,5 4 Copper, Cu2+ Organoleptic, toxicological 1,0 0,001 5 Nitnte ions, N02- Toxicological - 0,08 (0,02N) 6 Nitrate ions, NO2- Sanitary-toxicological 10,0 N 40,0 (9,lN) Ammonium saline, General sanitary, 7 NH2 toxicological 2,0 0,5 8 Phenols Organoleptic, fish-farm 0,001 0,001 Synthetic Surface 9 Active Substances Organoleptic, toxicological 0,5 0,1 10 pH value General sanitary 6,5-8,5 6,5-8,5

11 Magnesium Sanitary-toxicological, _ 40,0 12 Chloride ions, Cl- Sanitary-toxicological 350,0 300,0 13 Sulphate ions, S042- Sanitary-toxicological 100,0 100,0 14 Calcium, Ca Sanitary-toxicological 180,0 15 Mineralisation General requirements 1000 16 Oil products Organoleptic, fish-farm 0,3 0,05 17 Nickel, Ni+ Sanitary-toxicological 0,1 0,01 18 Cobalt, Co2+ Sanitary-toxicological 1,0 0,01 19 Titanium, T1+4 General sanitary 0,1O' 20 Bismuth, Bi+3 Sanitary-toxicological 0,5 21 Molybdenum, Mo2 + Sanitary-toxicological 0,5 5 22 Vanadium, V Sanitary-toxicological 0,1 _ 23 Lead, Pb+2 Sanitary-toxicological 0,03 24 Chromium, Gr+3 Sanitary-toxicological 0,5 Sanitary-toxicological, 25 Chromium, Gr+6 Organoleptic 0,1 0,001 26 Mercury, H '+ Sanitary-toxicological 0,005 27 Furfurol Organoleptic 1,0

Article 42. Environmental Requirements for the Operation of Industrial, Energy, Transportation, and Communications Systems and Agricultural and Irrigation Systems

1. Industrial, energy, transportation, communications, and agricultural systems and comnmunication, and agricultural and irrigation systems shall incorporate pollution control systems, health buffer zones, and environmentally sound technologies and meet specific environmental requirements. They must be equipped with effective waste treatment and management systems, utillse efficient fuels and natural resources in an economical and efficient way, and include environmental safeguards. 19 01/03/03 Draft

Implementing Regulations/Decrees with Specific Environmental Requirements:

CHAPTER VIII ENVIRONMENTAL REVIEWS

Article 50. Environmental Review

Environrmental review is defined as determnation of the potential adverse impact of human economuc activity on the environment and determnination of the compliance of economic activity with environmental standards and requirements for prevention and forecasting purposes.

Official environmental reviews of the Azerbaijan Republic shall be conducted by the proper executive authorities and civic organisations.

Article 51. Official Environmental Review.

1. Official environmental reviews shall be conducted by the proper executive authonties.

2. Official environmental review procedures shall be governed by the law.

3. The production and distribution of manufactured goods and foods, the performance of services and work, and the importation of said goods, work, and services into the Azerbaijan Republic shall be prohibited without a favourable official environmental review opinion concerning the items subject to review.

4. Any project involving the use of mineral resources shall be subject to a geological review in accordance with the procedures prescnbed by law prior to an environmental review.

5. An official environmental review opinion is an enforceable official act, and non-compliance with its requirements may be the subject of litigation.

Article 52. The Purpose and Objectives of an Official Environmental Review.

1. An official environmental review shall be organised and conducted by the proper executive authonties to determine the completeness and accuracy of environmental impact assessments, compliance with applicable safety regulations, and the effectiveness of the proposed environmental safeguards for industrial and other activities.

2. An official environmental review is designed to establish rules essential for environmental protection and prevent decisions that may have an adverse environmental impact.

3. The objectives of an official environmental review:

3.1. Determunation of the magnitudes of the environmental hazards of industrial and other activities that may now or in the future directly or indirectly impact the environment and public health;

3.2. Assessment of the compliance of the planned economic and other activities with the requirements of the law and public health codes;

3.3. The suitability and quality of the proposed environmental safeguards;

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Article 53. The Basic Principles of Official Environmental Reviews

Official environmental reviews shall be based on the following principles:

1. The requirements of international law;

2. A combination of legality, scientific validity, transparency, environmental, social, engineering, technical, planmng, economic and other principles; l 3. A comprehensive socio-environmental-economic assessment of the impact of economic and other activities;

4. Guarantees of the right of all people to good environmental conditions for their health and well-being;

5. An emphasis on the importance of the protection and preservation of the ecological balance, gene pool, and biological diversity for present and future generations;

6. The presumption of the potential risk of uncontrolled nature use;

7. The prediction of potential emergencies;

8. Environmental impact assessments shall be considered an integral part of social development.

Article 54. The Subjects of Official Environmental Reviews

The subjects of official environmental reviews are as follows:

1. All types of documentation related to the development and use of the country's and industries' productive assets;

2. Feasibility studies, projects, environmental impact assessments (EIAs) of industrial facilities and complexes, including the construction (reconstruction, renovation, and installation of equipment) and liquidation of joint ventures with forelgn legal entities and individuals;

3. Documentation related to the production and importation of new equipment, technologies, products and materials;

4. Drafts of environmental law, statutes and legal, procedural, and technical documents;

5. The condition of the environment as a result of industrial or other activities;

6. Environmental conditions in a region and different natural components and complexes (ecosystems);

7. The environmental sections of draft agreements and contracts related to the use of the natural resources of the Azerbaijan Republic.

Article 55. Funding of Industrial Projects and Responsibilities of Client.

1. Funding for the projects enumerated in Article 53 of this Law shall only be permitted after projects have been approved by an official environmental review.

2. The client and preparer of the project documentation shall be responsible for:

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2.1. submitting the documents enumerated in Article 53 of this Law to the official environmental review board; 2.2. prepanng the documents submitted in accordance with official environmental review requirements; 2.3. funding and perforrung work (additional research, measurements, sampling, analyses etc.) required by the official environmental review board; 2.4. funding the official environmental review; 2.5. providing any information deemed necessary for the work of the review board (panel, expert) at its request.

Article 56. Funding of Official Environmental Reviews.

1. Funding sources and procedures for the organisation and conduct of official environmental reviews shall be designed to ensure:

1.1. the impartiality of the review from the standpoint of the parties concerned; 1.2. the conditions for development and improvement of official environmental review;

2. Official environmental reviews shall be funded from the national budget and by the client.

Article 57. Execution of the Decisions of the Official Environmental Review Board and the Accountability of the Reviewers.

Senior officials, officials, and other employees of organisations, enterprises and companies shall be held accountable by law for complying with the official opinion of an official environmental review board. Decisions contrary to said opinions shall be considered invalid and unenforceable.

Officials and other employees of an official environmental review board shall be responsible for the accuracy, adequacy and completeness of their decisions.

Article 58. Civic Environmental Reviews.

1. Civic organisations and other groups of people may conduct civic environmental reviews.

2. The organisational forms and powers of civic organisations in the field of civic environmnental reviews shall be governed by law.

3. Civic environmental review opinions shall be informative and deliberative in nature.

STATE ENVIRONMENTAL IMPACT ASSESSMENT AND THE LEGISLATION REGULATING ENVIRONMENTAL IMPACT ASSESSMENT PROCESS.

The Azerbaijan Republic legislation provides for the carrying out of the following expertises dunng the implementation of the projects relating to the construction and reconstruction of land-reclamation and irrigation systems:

* State ecological expertise (including fish-farm expertise) is carried out by the Ministry of Ecology and Natural Resources in accordance with Azerbaijan Republic " Law on Environmental Protection" No. 678-IG of June 8, 1999, articles 50-57 and the decree of the President of Azerbaijan Republic "Regarding application of the Azerbaijan Republic Law on Environmental Protection" item 2, No. 173 of August 4, 1999. Fish-farmn expertise is also a constituent part of the state ecological expertise in accordance with Azerbaijan Republic "Law on fishery" article 28, No. 457 of March 27, 1998;

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o The state technical expertise of the projects for the purpose of compliance with reclamation and other water standards, technical conditions and requirements is carried out by the State Committee on Melioration and Water Industry; o The construction expertise of the projects for the purpose of compliance with construction rules, standards, technical conditions and requirements is carried out by the State Committee on Architecture and Urban Planning.

State ecological expertise of the projects relating to the construction or reconstruction of the industrial and other objects that are able to influence upon the water body conditions is carried out in accordance with Azerbaijan Republic Water Code article 27 for the purpose of compliance with suitable standards, technical conditions and requirements.

Azerbaijan Republic Ministry of Ecology and Natural Resources carries out the state ecological expertise in accordance with the degree of the President of Azerbaijan Republic "Regarding application of the Water Code" No. 685 of March 13, 1998. Environmental impact assessment is a constituent part of the State ecological expertise. Legal basis of environmental impact assessment process in Azerbaijan Republic is a state (guide) on environmental impact assessment.

Fish-farm expertise of the project documents relating to the construction or reconstruction of the industrial and other objects that are able to influence upon the fish-farm water bodies is carried out with the purpose of compliance with suitable standards, technical conditions and requirements. Fish-farm expertise is obligatory to the following construction work projects are located at the zone of mfluence upon the water bodies having fish-farm significance:

o The mining operations; the carrying out of geological prospecting, blasting, dnlling, dredging operations; the construction of underground structures; the installing of cables; the assembling of underwater pipelines and termunals to the transportation of gas, oil products and chemical products; o The construction and assembling of industrial, domestic, municipal water-discharge, water reservoirs, sewerage plants, reclamation and irrigation networks; o The construction and reconstruction of other objects are determined by the appropriate executive power. o Fish-farm expertise of enterprises, constructions and other objects, which are able to influence upon the state of water bodies, is a constituent part of the State ecological expertise. o Waterworks facilities are constructed at the water bodies having fish-farm significance can operate at the observance of the following conditions: o The installing of fish-lifting plants on the frame of water dam to the providing of fish passage towards the spawning places; o The storage in water reservoirs of the required water level during the periods of growth, spawning and wintering fish resources; the supply of hydro-technical, water-intake and water- discharge plants as well as irrigation systems by fish protection plants; o Avoiding water-intake and water-discharge plants at the places of spawning and wintering as well as young fish accumulation.

There is not in Azerbaijan's legislation any legislative acts, rules and standards are regulated the implementation of the State Ecological expertise except for the above-stated.

AZERBAIJAN'S LEGISLATION ON THE REGULATION OF THE STATE TECHNICAL (AMELIORATION) EXPERTISE ACTIVITY.

According to the Azerbaijan Republic "Law on Amelioration and Irrigation" article 18 (No.1 16-lG of June 5, 1996), the State expertise of the projects relating to the construction or reconstruction of the melioration and imgation systems for the purpose of compliance with corresponding standards,

23 0 1/03/03 Draft technical conditions and requirements, is carried out by the appropriate body of executive power in the field of melioration and irrigation.

The State ecological expertise in the field of melioration and irrigation is carried out in accordance with Azerbaijan Republic legislation on environmental protection and ecological expertise. According to the degree of the President of Azerbaijan Republic "Regarding application Azerbaijan Republic Law on amelioration and irrigation" No. 492 of September 14, 1996, the State Amelioration and Irrigation Committee designates an executive power agency carrying out the State expertise of the projects relating to the construction and reconstruction of melioration and irrigation systems.

The decision of Azerbaijan Republic Cabinet of Ministers No.197 of September 28, 1998 determines "The rules on the carrying out of the State expertise of the location of the proposed sites to the construction of enterprises, plants and other facilities that are able to influence upon the water conditions and the approval of their construction projects", in accordance with Azerbaijan Republic Water Code, Article 94 and the degree of the President of Azerbaijan Republic "Regarding application of the Azerbaijan Republic Water Code" No. 685 of March 13, 1998.

These rules embrace the protection of Azerbaijan Republic water reservoirs from chemical, bacteriological, radioactive, mechanical, thermal and magnetic pollution and they direct to the normal operation of the water sources for buildings and plants that are under constructing, reconstructing, equipping by modem equipment as well as the punfication and decontamination of removal wastewater on optimal scheme and properly. Legal action of these rules covers industnal and house building, reconstruction and a new construction that are able to influence upon the Caspian sea, underground and surface water reservoirs quality.

The preparation of approval documents that are needed to the determination of construction place and the provision of ground areas are designed for the construction.

These rules cover the consistency and procedure that are needed to the preparation of corresponding documents. Corresponding executive powers provide, according to these rules, the ground areas are needed to the new constructions that are able to influence upon the Azerbaijan Republic water resources quality in accordance with Land-Laws. Corresponding executive powers give permission to the provision of ground areas only after obtaining the approval of amelioration and irrigation, hydro-meteorology, environmental, geological, public health, agriculture, fish-farm and transportation authonsed bodies. The documents on provision of ground area and technical standards to the construction of body, which is able to influence upon the water conditions, are valid for the standard time is needed to the design and construction.

The rules for approval of projects that influence water conditions and carrying out of the State expertise.

The approved project documents should be submitted to the State expertise for the construction, which influence water conditions and the documents should meet to the following characteristics:

* The compliance with technical justification of the construction, primary requirements and technical conditions have been given by the State controlling unit that take the resources conservation as a basis during approval of the proposed ground area to the construction of enterprise, building and plants; * The fulfilment of city-planning, engineenng-geological, environmental protection and other requirements durng submission of the selected construction ground area to local executive power approval; * The requirements are provided for the legislation.

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RELEVANT PROVISIONS FROM THE LAW ON AMELIORATION AND IIRRIGATION (1996)

Article 18. State Examination of Amelioration and lrrigation Systems Construction and Rehabilitation Projects

To identify conformuty of amelioration and irrigation systems construction and rehabilitation projects to the appropriate standards, technical conditions and requirements state examination shall be carried out by the relevant bodies of the executive power on amelioration and irrigation.

State ecological examination in the field of amelioration and irrigation shall be carried out in accordance with the legislation of Azerbaijan Republic on environment protection and ecological examination.

Article 22. Ecological Requirements for Ameliorative and Irrigation Measures

Ameliorative and irrigation measures should not result in detenoration of environrment conditions.

Ameliorative and irrigation measures shall be carried out following requirements of land, water, forest legislation of Azerbaijan Republic and the legislation of Azerbaijan Republic on environment protection, on land lots, on flora and fauna.

RELEVANT PROVISIONS FROM THE WATER CODE (1997)

Article 27. The State Ecological Examination of Projects Concerning the Building and Reconstruction of Facilities Affecting the Condition of Water bodies

The State ecological examination shall be held by relevant executive authorities according to the rules stipulated in the legislation of the Azerbaijan Republic in order to determrine whether such projects are in conformity with relevant standards and technical conditions and requirements.

Article 28. The State Supervision over the Use and Protection of Water bodies

The State supervision over the use and protection of water bodies shall ensure the compliance with:

o the rules for the use and protection of water bodies; o limits on the use of water; o sanitary-hygienic, ecological, hydro-geological, hydrological, technological and meteorological standards, rules and norms in the area of the use and protection of water bodies; o conditions of the use of areas belonging to water protection zones; o other standards and requirements set forth in the water legislation of the Azerbaijan Republic.

The rules for the implementation of the State control over the use and protection of water bodies shall be established by relevant executive authorities.

Article 29. Normalisation in the Area of the Use and Protection of Water bodies

Normalisation m the area of the use and protection of water bodies shall consist in the determrining of limits on the use of water and in the development and adoption of sanitary-hygienic, ecological, hydrogeological, hydrological, technological and meteorological standards, rules and norns in the area of the use and protection of water bodies.

25 01/03/03 Drft The rules of the normnalisation in the area of the use and protection of water bodies shall be established by relevant executive authonties

SANITARY RULES AND STANDARDS No. 2.1.4.559-96

Dnnking water Hygienic requirements for water quality for centralised drmlcing water supply systems. Quality control.

Table 1

Indices Measurement units Standards Thermo-tolerant coliform bactena Bacterna number in 100 rnl Absence Total coliform bacteria Bactena number in 100 ml Absence Conmnon microbial number Number of forming bactenum colonies No more than 50 Colifages Plaque forrmng unit in 100 nmd Absence Spores of sulphite-reducing clostndies Spores number in 20 ml Absence Cysts of lamblies Cysts number in 50 1 Absence

Table 2

Indices Measurement Standards Danger index Danger units (maximum class I allowable concentrations), no ______.______J j m ore than . ._ _ Generalised indices Hydrogen ion exponent pH units Within 6 - 9 (pH value) Total Mineralhsation 1000 (1500) (solid residual) Total hardness _mmol/l 7 0 (10 0) Permanganante oxidation mg/il 5 0 Oil products (total) mg/l 0 1 Synthetic surface active mg/i 0 5 substances, anionic-active Phenol index mg/l 0 25 Non-organic substances Aluminium (Al') mg/l 0 5 Sanitary-technical 2 Barium (Ba2 +) mg/I 0 1 Sanitary-technical 2 Beryllium (Bef) mg/l 0 0002 Sanitary-technical 1 Bonum (B, total) mg/l 0 5 Sanitary-technical 2 Iron (Fe, total) mg/l 0 3 (1 0) Sanitary-technical 3 Cadrmum (Cd, total) mg/l 0 001 Sanitary-technical 2 Manganese (Mn, total) mg/l 0 1 (0 5) Organoleptic 3 Copper (Cu, total) mg/l 1 0 Organoleptic 3 Molybdenum (Mo, total) mg/i 0 25 Sanitary-technical 2 Arsenic (As, total) mg/l 0 05 Sanitary-technical 2 Nickel (Ni, total) mg( 0 1 Sanitary-technical 3 Nitrate (by NOfl mg/I 45 0 Organoleptic 3 Mercury (Hg, total) mg/l 0 0005 Sanitary-technical 1 Lead (Pb, total) mg/l 0 03 Sanitary-technical 2 Selenium (Se, total) mg/l 0 01 Samtary-technical 2

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Strontium (Sr2) mg/l 7.0 Sanitary-technical 2 2 Sulphates (S04 ) mg/l 500.0 Organoleptic 4 Fluorides to the climatic areas: mg/l 1.5 Sanitary-technical 2 I-II Fluorides to the climatic areas: mg/i 1.2 Samtary-technical 2 m Chlorides (Cl-) mg/I 350.0 Organoleptic 4 Chromium (Cr +) mg/l 0.05 Sanitary-technical 3 Cyanides (CN-) mg/l 0.035 Sanitary-technical 2 Zinc (Zn2+) mg/i 5.0 Organoleptic 3 Organic substances Lindane mg/l 0.002 Sanitary-technical 1 dichlorodiphenyltrichloroethane mg/l 0.002 1Sanitary-technical 2 2.4-D mg/l 0.03 Sanitary-technical 2

Table 3

Indices Measurement Standards Insalubrity index Danger units (maximum class allowable concentrations) no more than Residual free chlorne mg/l Within 0.3-0.5 Organoleptic 3 Residual bound chlorine mg/l Within 0.8-1.2 Organoleptic 3 Chloroform (during water mg/l 0.2 Sanitary-technical 2 chlorination) Residual ozone mg/ 0.3 Organoleptic Formaldehyde (durng water mg/l 0.05 Sanitary-techmcal 2 ozonisation) Polyacrylamide mg/l 2.0 Sanitary-technical 2 Activated silicon acid (by Si) mg/l 10.0 Sanitary-technical 2 3 Polyphosphates (by P04 -) mg/l 3.5 Organoleptic 3 Residual quantities of alumium- mg/l See indices for containing and ferrugmous "Aluminium" coagulants and "Lead" in table 2.

Table 4

Indices Measurement units Standards, no more than Odour Points 2 Flavour Points 2 Colour Degrees 20 (35) Turbidity Turbidity units by fuirmazine) or 2.6 (3.5) _lmg/I (by kaoin) 1.5 (2.0)

Table 5

Indices Measurement units Standards Insalubrity index General oe-radioactivity Becquerel/l 0.1 Radioactivity General 3-radioactivity Becquerel/l 1.0 Radioactivity

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DRINKING WATER HYGIENIC REQUIREMENTS AND QUALITY STANDARDS State Branch Standard 2847-82

Present standards are applied to the drnking water supplied by centralised domestic-drinking systems of water-supply, as well as centralised water supply systems that supply simultaneously the water for domestic-drinking and technical purposes. These standards establish the hygienic requirements and control for drinking water quality. The present standard is not applied to the water at non-centralised use of local sources without distributing network of the pipes.

1. Hygienic requirements. 1.1 Dnnking water must be safe in epidemic relation, harmless by chemical composition and it must have favorable organoleptic properties. 1.2 Water quality is determned by the composition and properties of water at coming into the water- supply network; at the water intake points of external and intemal water-supply network.

1.3 Microbiological indices of water 1.3.1 Water safety in epidemic relation is determined by total number of micro-organisms and bactena number of the intestinal bacillus group. 1.3.2 Drimking water must meet the requirements by microbiological indices that are indicated at table 1.

Table 1. Name of index Standard Testing method Number of micro-organisms in 1 ml3 of water, no 100 By the State Branch Standard (SBS) more than No. 18963-73 Bacteria number of the intestinal bacillus group in 3 By (SBS) No. 18963-73 1 1 of water (coli index), no more than

1.4 Toxicological indices of water 1.4.1 Toxicological indices of water quality characterise the safety of its chemical composition and they include the standards to the following substances: * encountered in natural water; * added to the water dunng treatment process in the form of reagents; * incipient as a result of industrial, agncultural, domestic and other pollution of water supply sources. 1.4.2 Chemical substances concentration are encountered in natural water or added to the water during its treatment must not be exceed the standards are indicated in table 2.

Table 2. Name of index Standard Testing method Residual alummnium (Al), mg/l, no more than 0.5 By SBS No.18165-81 Beryllium (Be), mg/I, no more than 0.0002 By SBS No.18294-89 Molybdenum (Mo), mg/I, no more than 0.25 By SBS No.18308-72 Arsenic (As), mg/I, no more than 0.05 By SBS No.4152-81 Nitrates (NO)3, mg/l, no more than 45.0 By SBS No.18826-73 Residual polyacrylamnde, mg/l, no more than 2.0 By SBS No.19355-85 Lead (Pb), mg/I, no more than 0.03 By SBS No.18293-72 Selenium (Se), mg/l, no more than 0.001 By SBS No.19413-89 Strontium (Sr), mg/I, no more than 7.0 By SBS No.23950-80 Fluorne (F), mg/l, no more than, for climatic area: I and II 1.5 By SBS No.4386-81

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Fluonne (F), mg/I, no more than, for climatic area: III 1.2 | By SBS No.4386-81 Fluorine (F), mg/1, no more than, for climatic area: IV 0.7 By SBS No.4386-81

1.5 Organoleptic indices of water 1.5.1 The indices providing favorable organoleptic properties of water include the standards for substances: o encountered in natural water; o added to the water during treatment process in the form of reagents; o incipient as a result of industrial, agricultural, domestic and other pollution of water supply sources. 1.5.2 The concentrations of chemical substances, which influence on the organoleptic properties of water, are encountered in natural water or added to the water during treatment process must be not more the standards are indicated m table 3.

Table 3. Name of index Standard Testing method Hydrogen ion exponent, pH 6.0 - 9.0 It is measured using any pH-meter having glass electrode with precision of measurements no more than 0.1 pH Lead (Fe), mg/I, no more than 0.3 By SBS No.4011-72 Total hardness, mg- equivalent/I, no more than 7.0 By SBS No.4151-72 Manganese (Mn), mg/l, no more than 0.1 By SBS No.4974-72 Copper (Cu2+), mg/I, no more than 1.0 By SBS No.4388-72 3 Residual polyphosphates (PO4 -), mg/l, no more 3.5 By SBS No.18309-72 than Sulphates (S04--), mg/I, no more than 500 By SBS No.4389-72 Solid residual, mg/I, no more than 1000 By SBS No.18164-72 Chlorides (Cl-), mg/I, no more than 350 By SBS No.4245-72 Zinc (Zn2"), mg/I, no more than 5.0 By SBS No.18293-72

Notes: It is permitted to the water pipes supplying water without special treatment by the approval with sanitary-epidemiologicalservices: solid residual is up to 1500 mg/l; total hardness is up to 10 mg- equivalent/l; lead is up to 1 mg/l; manganese is up to 0.5 mg/l. Sum total concentrations of chlorides and sulphates is expressed in parts of maximum allowable concentrationsfor each of these substances are taken separately not must be more 1.

1.5.3 Organoleptic water properties must meet the requirements indicated in table 4.

Table 4. Name of index Standard Testing method Odour at 200C and at heating up to 60°C, numbers, no more than 2 By SBS No.3351-74 Taste and flavour at 20'C, no more than 2 By SBS No.3351-74 Colour, degrees, no more than 20 By SBS No.3351-74 Turbidity by standard scale, mg/l, no more than 1.5 jBy SBS No.3351-74 Note. It is permitted by the approval with sanitary-epidemiologicalservices, growth watercolour is up to 350 and turbidity (duringfloodperiod) is up to 2 mg/l are.

1.5.4 Water must not contain water organisms that can be detected by naked eye and it must not have a filn on the water surface. 1.5.5 The concentrations of chemical substances are not indicated in tables 2 and 3, but containing in water as a result of industrial, agncultural and domestic pollution must not exceed the maximum allowable concentrations adopted by the Ministry of Health of USSR for water of water reservoirs used 29 01/03/03 Draft

for domestic-drinking and cultural-domestic (recreational) water consumption, according to organoleptic and sanitary-toxicological characteristics, as well as the radiation safety standards RSS-76.

2. Water quality control. 2.1 The institutions having the centralized systems of domestic-drinking water supply and water pipes that are used simultaneously to the domestic-drinking and technical purposes, to control on constant basis of the water quality in water pipe at the places of water intake before coming to the water network, as well as at the distributing network in accordance with the requirements stated in present issue. 2.2 Sampling methods are camed out in accordance with SBS No.24481-80 and SBS No.18963-73. 2.3 The laboratory-industrial control at the places of water intake is carried out in accordance with requirements of SBS No. 2761-84; the list of indices is submitted to the sanitary-epidemiological service approval taking into consideration the local natural and sanitary conditions. * Water analysis to the water pipes with underground source of water supply is carried out no less than 4 times (by year seasons) during first year of exploitation, and in future - no less than 1 time per year in the most unfavourable period according to the results of observations are obtained during first year. * Water analysis to the water pipes with surface source of water supply is carried out no less than 1 time per month. 2.4 Laboratory-industrial analysis of water quality is carried out by microbiological, chemical and organoleptic indices before coming to the water network. 2.4.1 Microbiological analysis is carried out by the indices are indicated in table 1. Water analysis must be carried out at the water pipes with underground source of water supply at the absence of decontamination: * no less than one time per month - at population size up to is 20.000 mans; * no less that two times per month - at population size up to is 50.000 mans; at decontamination: - one time per week - at population size is up to 20.000 mans; * 3 times per week - at population size is up to 50.000 mans; * every day - at population size is more than 50.000 mans; Water analysis must be carried out at the water pipes with surface source of water supply; * no less than one time per week and every day during spring-autumn periods - at population size is up to 10.000 mans; * no less than one time a day - at population size is more than 10.000 mans. 2.4.2 The concentrations of residual chlorine and residual ozone are determined during the control of water decontamination by chlorine and ozone at the water pipes with underground and surface sources of water supplyno less than 1 time a hour by SBS No.18190-72 and SBS No.18301-72. 2.4.3 The residual chlonne content in water after the reservoirs of pure water must be withm the limits that are indicated in table 5.

Table 5. Residual chlorine Residual chlorine The time is necessary to the contact of chlorine with concentration, mg/l water, min no less than 1. Free 0.3 - 0.5 30 2. Bound 0.8 - 1.2 60 Note: The control is carrying out by sub-point 1 atjoint presence offree and bound chlorine, and at the free chlorine concentration is more than 0.3 mg/l

2.4.4 It is permitted the super-standard concentration of residual chlorine in water sometimes and by instructions or approval with sanitary-epidemiological service. 2.4.5 The concentration of residual ozone must be 0.1 - 0.3 mg/l after mixture chamber at providing the contact time is no less than 12 mm during water ozonisation with the purpose of decontamination. 2.4.6 The places of introduction and chlonne dozes are submitted to the approval with units of sanitary- epidemiological service, if it is necessary to the struggle against biological biofouling.

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2.5 Chemical analysis of water is carried out by the indices are indicated in tables 2 and 3 (with the exception of residual quantities of reagents), as well as by item 1.6. The list of indices and sampling frequency are submitted to the approval with units of sanitary-epidemiological service taking into consideration local natural and sanitary conditions. 2.5.1 Laboratory-industrial control of reagent residual quantities and disposal substances during water purification in water pipes by special methods is carried out depend on the nature of purification in accordance with the schedule is approved by sanitary-epidemiological service, but no less than 1 time a shift. 2.6 Organoleptic indices, are indicated in table 4, are determned at the analysis of all samples (with the exception of the residual chlorne and ozone samples) are taken from the water pipes that use water from underground and surface sources. 2.7 Laboratory-industrial control in distributing network is carried out by the followmg indices: coli- index, total number of micro-organisms in 1 m13, turbidity, colour, odour, taste and flavour of water. The repeated sampling with additional investigations at the presence of bacteria namely - the indices of fresh faecal pollution by SBS No.18963-73, mineral nitrogen containing substances by SBS No.4192-82 and SBS No.18826-73, chlorides by SBS 4245-72 must be carried out at the detection of mrcrobial pollution above the permitted standards with the purpose of discovering the pollution reasons. 2.7.1 Sampling at the water distributing network is carried out from: the street water intake installations characterised the water quality in main water pipe lines, more high and dead end parts of street water distributing network. Sampling is carried out also from taps of internal water pipe network of all buildings that have pumping and local elevated tanks. 2.7.2 Total amount samples to the analysis at the stated places of water distributing network must be submitted to the approval with units of sanitary-epidemiological service and meet the requirements are indicated in table 6.

Table 6. Total number of customers, persons Minimum number of samples are taken from distributing water network, per month Up to 10.000 2 Up to 20.000 10 Up to 50.000 30 Up to 100.000 100 More than 100.000 200

Mandatory check samples after repair and reconstruction of the waterpipe and distnbuting network are not including in the total number of samples. 1 2.8. The State sanitary inspection of water quality is taken from the centralized systems of domestic- drinking water supply is carned out in accordance with programme and within term that are established by local units of sanitary-epidemiological service.

Chapter 8

The Use of Water Bodies for Agricultural Needs

Article 51. Using Water Bodies for Agricultural Needs

Water bodies shall be used for agricultural needs in the manner established for general and special purposes, provided that the limits on the use of water are observed. Water bodies shall be used for agricultural needs on the basis of internal economy and general system plans.

Article 52. Internal Economy Plans on the Use of Water

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Internal economy plans on the use of water shall be developed by users of water. Internal economy plans on the use of water shall be approved by relevant executive authonties according to the established rules. Internal economy plans on the use of water shall take account of the water needs of all water consumers, irrespective of the type and form of ownership.

Article 53. General System Plans on the Use of Water

General system plans on the use of water shall be developed on the basis of irrigation systems of regional and Republican importance. General system plans on the use of water shall be developed by the users of water bodies on the basis of internal economy plans and contracts on the use of water. General system plans on the use of water shall be approved by relevant executive authorities according to the established procedure. Contracts on the use of water shall be concluded between users of water bodies and water consumers. Contracts on the use of water shall set forth the location and quantity of water granted for use, the term of the contract, mutual obligations of the parties and other relevant information.

Article 54. Changing the plan on the Use of Water

A plan on the use of water may be changed with the agreement of authorities that have approved such plan in the following cases: Water shortage; Weather changes and changes in irrigation standards or areas to be irrigated; Cancelling by water consumers of the use of water allocated to them according to the plan; Other such cases determined by relevant executive authorities.

Inhemergency cases users of water bodies may change the plan on the use of water and suspend water supply. They must immediately inform water consumers and relevant executive authonties that have approved the plan on relevant actions.

Water not supplied may later be compensated depending on the condition of water sources.

Article 55. Using water reservoirs located in areas belonging to owners and users of land for agricultural needs

Agricultural enterpnses, farirs and other legal entities and physical persons shall have the right to use springs, underground water supply pipes and other natural water sources located in land areas used or owned by them and install reservoirs and other water economy facilities on such sources according to the rules stipulated in the legislation.

Such legal and physical persons shall have the right to carry out, in land areas granted for their ownership and use for agricultural purposes, large-scale land improvement works or the re-organisation and liquidation of the land improvement works performned, according to the rules established by relevant executive authorities for the use and protection of waters.

Article 56. Using Waste Waters for the Agricultural Needs

Waste waters may be used for agncultural needs subject to the agreement of relevant executive authorities.

Article 57. Irrigation of wood strips and wood seedling areas

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The irrigation of wood strips and wood seedling areas shall be carried out according to the rules for using water bodies for agriculture needs.

Article 58. Determining of Areas to be Used for Driving and Watering Cattle and as a Passage for Transport Means

It shall be prohibited to move cattle through channels and other hydro-techmcal devices and drive tractors, agricultural vehicles and transport means through areas that are not allocated for relevant purposes. Watering cattle in rivers, channels and other surface reservoirs shall be allowed only in areas allocated for this purpose or if there are specially made watenng sites.

Areas allocated for driving transport means and agricultural vehicles, and for moving and watering cattle shall be determined by relevant executive authorities and special sign-posts (signs) shall be placed in such areas.

Roads for driving cattle shall be provided with water subject to the conditions and rules deternined by relevant executive authonties.

Implementing Regulations/Decrees with Specific Environmental Requirements:

The use of water bodies for wastewater discharge is provided in Azerbaijan Republic Water Code, Article 77. According to this article, the State Amelioration and Ingation Committee and the Ministry of Ecology and Natural Resources give pernission to the use of water bodies for discharge of industrial, municipal, domestic, drainage and others wastewater in prescnbed by Azerbaijan Republic legislation manner. The regulations for water bodies use to the wastewater discharge are established by the same organmsations.

Wastewater discharge to the water bodies is permitted only in cases when such discharge can not lead to the increasing contaminant concentrations in these water bodies above the fixed standards. In addition, water bodies users must punfy the wastewater up to the fixed standards. Wastewater discharges to the water reservoirs that are used as the sources of dnnking water are strongly prohibited.

The decision of Azerbaijan Republic Cabinet of Ministers No. 206 of October 15, 1998 about "Rules on regulations for utilisation and protection of water bodies" and "Rules on preparation and application of water consumption limits" based on the Azerbaijan Republic Water Code, article 22 and the decree of the President of Azerbaijan Republic "Application of Azerbaijan Republic Water Code" No. 685 of March 13, 1998 specifies the regulations on water consumption limits. This document implies also the regulations on the preparation and acceptance of the standards relating to the hygiene and sanitary conditions, environment, hydrology, hydro-geology, technology, meteorology in the area of utilisation and protection of water bodies.

According to the "Rules on regulations for utilisation and protection of water bodies", the State Amelioration and Irrigation Committee controls the rules on utilisation and protection of the surface water bodies; the Ministry of Ecology and Natural Resources controls the rules and regulations for utilisation and protection of the underground water, Caspian sea in Azerbaijan's segment as well the standards and regulations relating to the environment, technology, hydrology and meteorology; the Ministry of Health controls the regulations and standards relating to the hygiene and sanitary conditions of the water bodies.

According to the "Rules on preparation and application of water consumption limits", the water consumption limits are calculated and realised for satisfaction of population needs in drinking water, domestic water, medical treatment, spa treatment, public health and etc. as well as for satisfaction of agnculture, industry, construction, transport, fish industry and others state and social needs. 33 01/03/03 Draft

The consumption limits for water taken from surface water bodies to the satisfaction of agricultural needs, are based on the instructions of the Ministry of Ecology and Natural Resources, and these limrts are prepared and put into practice by the State Amelioration and Irrigation Committee and its appropriate departments. The regions in which have not surface water resorces or there is shortage of these resources, but there is sufficient quantity of underground water then such water uses first of all for satisfaction of population needs in drinking and domestic water.

The limits for using underground water resources are prepared and realised by the Ministry of Ecology and Natural Resources taking into account the resources conservation. Water consumption limits must take into account the water losses in each mainline, inter-economic and intra-economic canal. Water consumption limits for satisfaction agricultural needs through mainline and interregional canals are approved by the State Committee on Amelioration and Water Industry and its appropnate departments. Water distnbution is prepared and realised by the appropriate departments of the State Amelioration and Irrigation Committee in accordance with the approved water consumption limits. The quantities of water are taken from canals and supplied to the water users through water-distributing stations are determined at these stations by the water-meters. The improvements and corrections can be done in water consumption limits depending on both climatic conditions and quantity of water in irrigation stations. These improvements and corrections are carried out by the organisation that approved water consumption limits.

Azerbaijan Republic Cabmet of Ministers specifies the allowable standards of detrimental effect to the water bodies on the basis of Azerbaijan Republic Water Code, article 89 and the decree of the President of Azerbaijan Republic "Application of Azerbaijan Republic Water Code" No. 685 of March 13, 1998.

THE RULES, DECISIONS AND REQUIREMENTS ON ENVIRONMENT PROTECTION ARE ADOPTED IN ACCORDANCE WITH ARTICLE 42, PART 1 TO THE OPERATION OF IRRIGATION SYSTEMS AND AGRICULTURE.

According to the Azerbaijan Republic Water Code Article 94, the following requirements should be satisfied in order to protect the environment during the new construction or reconstruction of existing enterprises, plants and in case if the other facilities are being designed, constructed, upgraded, put into operation as well as at using new technologies:

* the accounting of water is taken from water bodies and discharged to the water bodies, * the water protection from pollution, clogging and depletion, * the prevention of water detrimental effect, * the limitation of waterlogged soils up to minimally necessary level, * the soils protection from salinisation, flooding or desertification, * the conservation of favorable natural conditions and landscape, * the creation of conditions to the protection and reproduction of fishes, freshwater animals, as well as the plants (to the water reservoirs are suitable for fish-farm).

Design work to the constriction of enterprises, plants and other facilities that influence on the water state should be developed taking into consideration the possibility of using water bodies to the recreational and sport purposes. The accounting of water is taken from water bodies and discharged to the water bodies is carrying out on the basis of the Azerbaijan Republic Cabinet of Ministers decision "Rule on the approval of intra- economic water consumption plans and general-system water consumption plans" No. 206 of October 15, 1998. The use of water is taken from irrigation systems and other water industry bodies is carrying out according to the intra-economnc water consumption plans and general-system water consumption plans.

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Intra-economic water consumption plans are drawn up taking into consideration the water requirements of water users.

Intra-economic water consumption plans should include the following:

o the quantity of irrigation lands, o the structure of sown areas, o the irrigation regime and time for irrigation, o the efficiency of intra-economic water canals, o the soil-reclamation condition of sown areas and o the data about water reserves

Water users submit the intra-economic water consumption plans to the approval by local district irrigation institutions. Then these plans are ratified by local executive power. General-system water consumption plans are drawn up by local district imgation institutions jointly with local rural institutions in accordance with sowing forecast and irrigation regimes. These plans are corrected on the basis of intra-economic water consumption plans.

General-system water consumption plans consist of the data are stated in intra-economic water consumption plans. In addition to this, the information about main and intra-economic canals as well as main water intake facility flow quantity, the efficiency of mntra-economic water canals and general- system water canals should be stated at the general-system water consumption plan.

General-system water consumption plans are ratified by:

o the district irrigation institutions to the irrigation systems having district importance; o the State Amelioration and Irrigation Committee at Azerbaijan Republic Cabinet of Ministers to the irrigation systems having republican or inter-district importance.

Water consumption plans and contracts on water consumption are drawn up on their basis are the mam documents regulating the relations between water users and district irrigation institutions. Rights and duties of both water users and district irrigation institutions are stated in the contracts on water consumption. According to these contracts, the district Irrigation institutions supply with water to the water users in accordance with the intra-economic water consumption plans in proper time and in the required quantity. Water users fulfil in accordance with plan the irrigation and improvement of the irrigation equipment. In addition, they maintain the equipment.in workable condition.

Water protection from pollution, clogging and depletion is regulated by Azerbaijan Repubhc Water Code, articles 81 - 93 as well as vanous legal standard acts are adopted on their basis. According to the Water Code, article 81, all water (water bodies) must be protected and conserved from the change of their physical, chemical, biological properties; decreasing natural ability to the purification. In addition, the water must be protected and conserved from pollution, clogging, depletion and other negative factors that are able to give rise to the violation of water hydrology and hydrogeology regimes as a result of this the populahon health can be deteriorated, fish reserves can be decreased and water supply conditions can be worsen.

Water protection zones are established for the purpose of the conservation of water bodies according to the environmental requirements, and to the prevention of surface and underground water from pollution, clogging, depletion as well as to the conservation of the fauna and flora. Water protection zone is an area abutted on a water body area. Water protection zone has the established special regime, to the protection and utilisation of natural resources are located on the water body as well as to the realisation of other economic activity.

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The coastal protection stnps determine the borders of water protection zones. The soil cultivation and planting, deforestation, the placement of stock-raising farms, camps, cemeteries, landfills as well as recreational, sport, hunting facilities and fish-farms, port and hydro-engineering facilities are prohibited within coastal protection strips.

"Rules on the dimensions, borders and utilisation of coastal protection strips and water protection zones" was adopted by the decision of Azerbaijan Republic Cabinet of Ministers No. 56 of March 24, 2000. The dimensions of water protection zones and coastal protection strnps are deternined according to these rules. Minimum width of water protection zones starting with river head and along its length is determined for separate parts by the following way:

* If the length is up to 10 km, then width is 50 m; If the length is in the range 10 - 50 km, then width is 100 m; * If the length is in the range 50 - 100 km, then width is 200 m; * If the length is in the range 100 - 200 km, then width is 300 m; * If the length is in the range 200 - 500 km, then width is 400 m; * If the length is more than 500 km, then width is 500 m.

The radius of water protection zone must be no less than 50 m starting with river head. Minimum width of water protection zones to the lakes and water bodies is the following:

* If water area is up to 2 ki 2, then the width is 300 m; * If water area is more than 2 kin2, then the widthis 500 m.

The dimensions of water protection zones to the marshes are located at the river head and to other -marshes are formed in the basin of water reservoirs are determined similar to the lakes and water bodies. Minimum width of water protection zones that are located along main and inter-economic canals and collectors are determined depending on their canal capacity in the following way:

* If canal capacity is up to 3 m3/sec, then width is 5 m. * If canal capacity is in the range 3 - 10 m3/sec, then width is 10 m. * If canal capacity is in the range 10 - 30 m3/sec, then width is 25 m. * If canal capacity is in the range 30 - 50 m3/sec, then width is 60 m. * If canal capacity is in the range 50 - 100 m3/sec, then width is 100 m.

The dimensions and borders of water protection zones -that are located within cities and other settlements are determined on the basis of approved overall plaining. Minimum width of coastal protection strips to the rivers, lakes, water reservoirs bodies and other water bodies is determined in the following way:

The types of agricultural lands The width of coastal protection strips depending on slope grade of the areas that abut on the water bodies abutting to the water bodies At negative slope At slope grade up to 30 At slope grade more grade and at than 30 absences of slope grade Sown area 25 50 80 Pasture, grassland 25 35 50 Forest, wayside 35 40 80

Width of coastal protection strips to the water reservoirs having fish economy importance is determined no less than 100 m and it does not depend on the area slope and other properties.

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The following is prohibited at the water protection zones: o the use of aviation to the dispersion of pesticides as well as chemical substances to the combating agricultural pests and weeds; o the use of dung channels to the fertilising soil; the placement of stock-raising farms, cemeteries and landfills; o the placement of fertiliser and pesticide tanks as well as playgrounds; o the construction and placement of oil products storage, mechanical shops, automobile and technical service centres, the storage to storing wastewater; o the placement of gardens and melon plantations if the width of coastal protection strips is less than lOOm and the slope grade of the areas abutting to the water bodies is more than 30; o the carrying out archaeological excavations, blasting operations, earthwork, drilling, as well as the construction of pipelines, cables and other communications, the placement of social and other facilities without the design documentation that was approved by the water regulatory body.

It is allowed to carry out forestry works in the forests are located on the territory of water protection zones if these works relate to the support of water protection zones. In addition to the above-stated, the following is prohibited at the coastal protection strips: ploughing-up of the lands, sowing, deforestation, pulling up the trees and bushes by the roots; fertiliser usage; the placement of seasonal and permanent tent cities, gardens and melon plantations as well as giving lands to the special construction work; moving motor vehicles and tractor (excluding special motor vehicles); other activity categories excluding the cases that are specified by Azerbaijan Republic Water Code.

The placement of water supply, sport, fishing and hunting facilities as well as waterside structures is permitted at the coastal protection strips, according to the existing legislation. Water protection zones of water bodies that are used as drinking water sources and spawning are declared as a special conserved area in accordance with Azerbaijan Republic legislation. According to the Water Code, article 83, the lands are located on the territory of water protection zones can be devolved on the use by natural and juridical persons in accordance with the procedure is established by Azerbaijan Republic lands-laws and Water Code and after approval of corresponding executive powers. The authorities of State Amelioration and Irrigation Committee and the Ministry of Ecology and Natural Resources exercise the state control on the execution of regime on the protection and utilisation of natural resources that are located on the territory of water protection zones, as well as economic activity of natural and juridical persons.

Water Code article 84 determines the requirements on the protection of water bodies from pollution and clogging. The following is prohibited to the naturai and juridical persons whose economic activity is able to influence on the water quality:

o the discharge of industrial, domestic and other waste to the water bodies; o the pollution and clogging of water bodies by lubricants, wood, chemical, oil and other industrial products as a result of technical and technological defects; o the pollution and clogging of water reservoirs, snow and ice cover, glacier surface by the industrial and domestic waste as well as oil products; o the water pollution by radioactive and toxic chemical substances.

According to the Water Code, article 86, the forest shelter-belts is established in accordance with Azerbaijan Republic legislation. These forest shelter-belts are placed around the water bodies in order to conserve the favorable water regime of the rivers, lakes, water reservoirs, canals, collectors, underground water and other water bodies as well as to protect: the water reservoirs from silting, the soil from water and wind erosion, the biotope conditions of water animals from worsening, and for decreasing unnecessary surface water flow as well as for other purposes. 37 01/03/03 Draft

The authorities of the State Amelioration and Irrigation Committee exercise control to the protection of forest shelter-belts. These authorities have a right to stop or prohibit the activity leading to the deterioration of water bodies. According to the Water Code article 92, the Cabinet of Ministers and water users should undertake corresponding measures in order that to prevent and eliminate the consequences of the following:

* overflow and flood, * destruction of dams and other coast-protecting structures, * soil erosion, soil salinisation and swamping * fornation of gullies, mudslides and floor convergence, mudflow and other negative effects.

All these measures should be undertaken in order to prevent the detrimental effect on the water, to limit the under flooding soils up to minimally necessary level, to protect the soils from salinisation, flooding or desertification, to conserve favorable natural conditions and landscape. Special commissions can be established by corresponding executive powers in definite cases provided for by the Azerbaijan Republic legislation in order to prevent and eliminate the consequences of water detrimental effect. The decisions are taken by these commissions within of their responsibilities are obligatory for the natural and juridical persons. The corresponding executive powers and municipalities organise at the territory of administrative districts the works on prevention and elimination of emergency situation is produced as a result of the flood and strong mudflows. Water users should take part in case of arising natural disaster or an emergency at the water bodies in the actions that are directed to the prevention of water detrimental effect and elimination of the consequences of such effect. These actions are realised by approval of corresponding executive powers and municipalities.

It, is prohibited (with the exception of sanitary, hydro-engineering and amelioration measures that are met with approval of the Ministry of Ecology and Natural Resources) to carry out the following:

* To create the piles at the rivers, tributaries and canals or to block the water flow as well as to empty the water from lakes and coastal lakes; To contaminate the snow and ice cover of water reservoirs by radioactive and toxic chemical substances, wood and petroleum refining products as well as to discharge their waste into the water reservoirs; * To collect the soil are dug during the dredging and bottom cleaning works at the spawning and fish wintering places * The carrying out of the following measures are prohibited with the purpose of the protection of water bodies having fish importance from pollution, clogging and shallowing: * To construct the dams or to reconstruct the destroyed dams at the spawning places without approval of the Azerbaijan Republic Ministry of Ecology and Natural Resources and the State Amelioration and Irrigation Committee; * To construct the collectors at the rivers, tributaries and canals or impounding dams as well as to empty the water from lakes and bays with the exception of the cases when sanitary, hydro-engineering and melioration measures are carried out with approval of the Azerbaijan Republic Ministry of Ecology and Natural Resources and State Amelioration and Irrigation Committee; * To collect the soil are dug during the dredging and bottom cleaning works at the spawning and fish wintering places

The creation of conditions to the protection and growth of fishes, other water animals and plants (to the water bodies having fish-farm importance).

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According to the Azerbaijan Republic "Law on Fishery" article 23, natural and juridical persons carrying out the activity relating to the design, construction, reconstruction and utilization of the enterpnses, plants and other objects that can lead to the negative influence on the fish biotope as well as natural and jundical persons carrying out the activity at the fish-farm water bodies and coastal strip (zones) should create favorable conditions to the protection, growth, migration and wintering of the fish resources and to ensure inviolability of biotope. The water user rights at the water bodies or their separate parts having important significance to the growth, reproduction and protection of valuable fish species and other water animals and plants can be restricted in favour of fishery. The list of such water bodies and restriction procedure on water consumption are determined by the Ministry of Ecology and Natural Resources and the State Committee on Melioration and Natural Resources. According to the Azerbaijan Republic "Law on Fishery" article 24, the discharge of industrial, municipal, domestic, drainage and other waste water into the water bodies having fish importance is permitted in accordance with the procedures are established by Azerbaijan Republic Water Code. Permussible standards of detrimental effect on the water bodies having fish-farm significance are determined on the basis of allowable limit of man's (anthropogenic) impact that does not lead to both change in water body ecosystem and quantity of pernissible limit to the harmful substances are draining or coming to these water bodies or catchment basin. "Permissible standards of detrimental effect to the water bodies having fish-farming importance" are provided for the decision of Azerbaijan Republic Cabinet of Ministers No. 146 of September 6, 1999. These standards are drawn up on the basis Azerbaijan Republic Water Code and the Azerbaijan Republic "Law on Fishery". These standards have the purpose to prevent the pollution of water bodies having fish-farming importance by waste and wastewater. According to the "Permissible standards", the water bodies are considered as the polluted if they come to the state, which is partly or completely unsuitable to the existence and development of fish resources -and other organisms in consequence of the change of composition and water properties because of direct or indirect influence of waste and wastewater. Water pollution criterion is the deterioration of water properties as a relust of the change of organoleptic properties and presence of harmful substances to the fish and other organisms (including organisms having forage and hunting importance) in the water, as well as the increase of water temperature leading to the change of normal conditions to the vital functions of water orgamsms. The composition and quality of water is suitable to the using in fish-farm are determined on the basis of "Permussible standards" and requirements.

The following is prohibited on the basis of "Permissible standards":

o To discharge all types of wastewater to the water bodies without approval of the State Amelioration and Irrigation Committee (to the surface water bodies), the Ministry of Ecology and Natural Resources (to the underground water bodies), as well as sanitary- epidemiological and fishery protection agency; o To discharge the wastewater containing the pollutants with unidentified permissible limits to the water bodies; o To discharge any wastewater to the spawning and fish wintering places; o To discharge the waste and all types of wastewater to the water bodies having the status of state reserve and designed for the research works.

Technical conditions and requirements of wastewater discharge in the water bodies as well as the observance of these conditions are regulated by present rules. Water bodies are divided into two categories on the basis of "Permissible standards" by importance to the fish-farm:

o First category - Water bodies are used to the rehabilitation, growth and the conservation of valuable fish species that are characterised by high oxygen sensitivity; o Second category - Water bodies are used to other purposes of fish-farm.

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The water body category importance to the fish-farm is determined by the fishery protection agency taking into account prospective development of fish-farm and fishery. The composition and properties of water bodies are receiving the wastewater and natural water, should meet the requirements of fish-farm at each point is established by the fishery protection agency within 500 m distance from discharge place. The possibility of wastewater discharge in the parts of water bodies are situated near to the places of mass spawning and fish wintering as well as the junction conditions of wastewater with water of fish-farm body are determined by the fishery protection agency. The composition and properties of water in water bodies that are used for fish-farm purposes, permissible density limits of harmful substances in the water of water bodies having fish- farm importance should not exceed the standard indices are given at the Annexes No.1 and 2 of "Permissible standards".

Annex 1. GENERAL REQUIREMENTS FOR THE COMPOSITION AND PROPERTIES OF WATER IN WATER BODIES THAT ARE USED FOR FISH-FARM PURPOSES

Water consumption category. Water bodies are used for Water bodies are used for The indices of composition rehabilitation, growth and other fish-farm purposes. and properties of water in conservation of valuable fish species water basin or flow. that are characterised by high oxygen sensitivity Suspended matters The quantity of suspended matters in comparison with natural water should not exceed the stated limit 0. 25 mg/ 10.75 mg/l Natural mineral substances If the quantity of natural mineral substances exceeds 30 mg/l at average level of water in the basin, then it is permitted the increasing of their quantity in water basin within the limits of 5%. It is prohibited to discharge the suspended matters with deposition rate exceeding in water flow 0.4 mrn/sec, and in water reservoir - 0.2 mm/sec.

Floating mixtures (substances) The films of oil products, oil, fats and other mixtures should not be detected on the water surface.

Color, odor and taste Water should not have the odour, taste and colour are able to influence on the fish meat.

Temperature Water temperature should not exceed 50C in comparison with natural temperature. Water temperature should not exceed in summer 200C and in winter 50C for fish species living in relatively cool water, and for other water basins - summer 28 0C, in winter 80C Dissolved oxygen It should be no less the following indices: 6.0 mg/l 4.0 mg/l summer it should be no less 6.0 mg/l for samples are taken up to 12 a.m. to all water basins. Hydrogen ion exponent (pH) It should be within the limits of 6,5-8,5. Blochemncal oxygen demand Total water demand in oxygen (20 0C) should not exceed 3.0 mg/I. (BOD) The wastewater discharge does not change blochemical demand of water in oxygen is possible in case of decreasing in winter the quantity of dissolved oxygen at the water bodies of first category in 6.0 mg/I, and at the water bodies of secondary category in 4.0 mg/I. Toxic substances It is prohibited the presence in water the substances having direct or indirect detrnmental effect to the fish and other water organisms, as well as their forage resources. 40 01/03/03 Draft

Annex 2. THE LIST OF PERMISSIBLE LIMITS OF HARMFUL SUBSTANCES IN WATER OF WATER BODES HAVING FISH-FARM IMPORTANCE.

No Name of substances Limnt index Permissible density limits (mg/l) 1. Ammonia Toxicological 0,05 2. Benzol _ 0,5 3. Boric acid 0,1 4. Hexachloran _ It is prohibited 5. Dissolvan _ 0,9 6. Cadmium (Cd ) 0,005 7. Cobalt (Co'+) _ 0,01 8. Bituminous varmish _ 5,0 2 9. Magnesium (Mg +) _ 50,0 10. Copper (Cu2+) _ 0,01 11. Arsenic _ 0,05 12. Detergent compound MIL-6 (the mixture of - sulfonate, sulfonol and white spirit DB) 0,5 13. Nickel (Ni +) _ 0,01 14. Oxidated butync acids _ 3,9 15. Pyror400 _ 0,005 16. Polyvinylacetate (emulsion) 0,3 17. Proxamal 385 _ 7,5 18. Petrolatum _ 6,5 19. Polychloroprene _ It is prohibited 20. Lead (Pb-+) _ 0,1 21. Tarry matters are washed from conifers _ Less than 2,0 22. Sulfonate on kerosene basis - 0,5 23. Sulfonol NP-5 0,5 24. Sulfonol chloride _ 0,1 25. Sulfonol NP-1i 0,2 26. Sulfonol NP-3 _ 0,1 27. Tannins - Over 10,0 28. Natnum tetroborate _ 0,05 29. Free chlorine (Cl-) - It is prohibited 30. Zinc (Zn2 ) _ 0,01 31. Straw oil _ 0,01 32. Technical dichlorodiphenyltrichloroethane - It is prohibited 33. Dichlorodiphenyltnchloroethane in straw oil - It is prohibited 34. Dynatrium salt of monoalkylfosiccine acid on the - 0,2 basis of secondary alcohols and anhydride 35. Foam resinous varmish _ 1,0 36. Natnumaleincolophony _ 0,01 37. Carbon sulphide _ 1,0 38. Sulfonate with synthme basis (sodium salt of - alkylsulfonate acid) 1,0 39. Anuncolophonyo chloroacetate _ 0,001 40. Cyanides - 0,05 41. Arnmonium chloride (NH4 +) _ 1,2 42. Ammonium sulphate (N-) _ 1,0 43. Ammonium nitrate (NH 4 ) _ 0,5

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44. Ammonium perchlorate (NH4-) 0,008 45. Trichlorfon _ It is prohibited 46. Formnalin _ 0,25 47. SP-7 (special paste - polyethyleneglucole ether) - 0,3 48. SP-10 (special paste - polyethyleneglucole - alkylphenol ether) 0,5 49. Alkylsulfonate Sanitary- I___ toxicological 0,5 50. Primary alkylsulfonate 0,2 51. Carbomol Organoleptic 1,0 52. Metazin _ 1,0 53. Chromolan _ 0,5 54. Diproxamrin 157 _ 3,2 55. Xylene _ 0,05 56. Styrene 0,1 57. Toluene _ 0,5 58. Proxanol 305 _ 6,3 59. Dynatrium salt of monoalkylfosiccine acid - _ nonsoapy detergent (paste) 2 on the basis of 0,2 secondary products 60. Polyglucole ethers 0,3

61. Hardener (condensation of mixture products of - dicyandiamide and crystals 10% copper acetate added to the formaldehyde) 0,5 62. Sulphospmnts (nonsoapy detergent 2) 0,1 63. Neutralized black contact 0,01 64. AB chemicals 1,0 65. Synthetic latex In fish-farms 1,6 66. Oil and oil products 0,05 67. Phenols 0,001 68. Entobacteria Generally sanitary 10,0

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USSR STATE COMMITTEE ON CONSTRUCTION ISSUES

Moscow 1986

CONSTRUCTION NORMS AND RULES

RECLAMATION SYSTEMS AND WORKS

7. PREPARATION OF RECLAIMED LANDS FOR AGRICULTURAL USE

7.1. The designing of reclamation systems requires implementation of cultivation/technical works, construction layout of the surface and capital washing.

7.2. Depending on the natural features of reclaimed lands, the following types of cultivation/technical works must be completed: clearance of sites from bushes and trees, grubs and under-surface timber; levelling of hassocks; liquidation of moss hards; clearance of soils from stones at the depth up to 0.4 meters; preliminary tillage; and surfacing.

7.3. At the time of cultivation/techmcal works, the following must be observed:

- conservation of the grounds' humus layer; - separate storage of cleared bushes and trees, as well as stones beyond the right-of-way for power transmission and communication lines, railway and highways, as well as the near-the-channel lines for further use; - placement of piles of bushes and trees on the site that is not flooded by spring waters.

7.4. The preliminary tillage must include cutting of the layer, deep and full cutting of the divot, grass- type vegetation, and small wood tailings.

7.5. Construction layout of lands must ensure the following:

- equal humrdification of soil at the time of water application, and reduction of waste of the water for infiltration into underground layers; - acceleration of derivation of surface, ground and underground waters at the time of reclamation; - conditions for mechanisation of water application and treatment of agricultural crops.

7.6. For different methods of water application, the Construction layouts of irrigated lands must be as follows:

- inclined plane for submersion (rice fields); - horizontal plane for application of water along trenches and lines; - liquidation of certain slides and elevations for overhead irrigation.

The accuracy of layout of imgated lands must be not less than 5 centimetres, and not less than 3 centimetres for nce fields.

7.7. The construction layout for drained lands, as a rule, needs to be designed for liquidation of slides and elevations with dept or height of more than 5 centimetres, in accordance with paragraphs 3.50, 3.51.

7.8. The construction layout of lands should be designed without preliminary skimming of a fertile layer of lands, if the tnms and mounds do not have significant impact on fertility of the soil. In other cases the humus layer of the soil should be skimmed in advance and then restored. 43 01/03/03 Draft

Rehabilitation measures must be envisaged to increase fertility of the soil, which was reduced as a result of layout works.

7.9. If within the reclaimed area there are saline lands, which cannon be nnsed at the time of operation of the irrigation system, provision must be made for thorough rinsing of such lands.

7.10. Where necessary, the following preliminary land cultivation measures should be taken: liming of acid soil; application of phosphontes; application of organic and mineral fertilisers; application of gypsum to saline soils; sowing of grasses at the time of creation of meadows.

8. ENVIRONMENTAL PROTECTION

8.1. When reclamation systems and works are designed, the following requirement needs to be followed:

- locate the reclamation systems and works, taking into account the environmental significance of natural objects located in the area that is brought under cultivation; - reuse the waste and drainage waters; - create special engineering constructions or works and carry out required activities (water treatment, anti-erosion, forest protection, fish protection, fish-ways, animal crossings over channels and pipelines that are located on the surface), taking into account the agricultural production technologies; - discharge of water from reclamation systems must be carried out in accordance with the ;"Rules on protection of surface waters from waste waters contammnation", which are approved by the Ministries of Water Resources, Health, and Fisheries of the USSR.

8.2. The boundarnes of reclamation systems, construction sites, driveways, and location of water intakes and outlets should be identified by taking into account the following:

- complex territorial schemes of environmental protection, schemes of protection of waters and small rivers; - boundanes of existing preserves, wild life sanctuaries, areas (water areas) of highly protected flora and fauna species, objects of natural heritage and their protection status; - data on habitation and migration of valuable, endangered and highly protected flora and fauna species, and the protection status; - data on habitation, places of massive concentration (breeding, nursery and wintenng grounds) and migration of commercial species of flora and fauna.

8.3. Natural objects (water, soil, air, flora, and fauna) that are subject to protections must be identified based on the following:

- zoogeographical, hunting, geo-botanical, soil, forestry, hydro-geological characteristics of the area where reclamation systems are located, and that of surrounding temtories within the zone of water-table decline/increase; - ichthyologic, fishery, hydrological, hydro-biological, and hydro-chemical characteristics of the water area in the zone of water source and receiving waters (within the zone covering 2000 meters above and 2000 meters below the water intake and water outlet); - data on sanitary-epidemiological situation; - data on highly protected species of flora and fauna, objects of natural heritage, and preserves that located within the impact zone of reclamation system and works.

8.4. The composition and type of environmental measures, works and installations should be determined based on the data that characterise the existing and forecasted status (by physical, chemical and

44 01/03/03 Drft biological indicators) of natural objects in relation to the type, parameters, and operating conditions of the reclamation system and works.

8.5. The design, standard size and operating conditions of the works or devices should be chosen in accordance with paragraph 4.2, taking into account the biological features of flora and fauna.

FISH PROTECTION MEASURES AND MECHANISMS

8.6. When water intakes are designed at fishery ponds, it is necessary, upon agreement with fisheries conservation entities, to provide for installation of special devices to prevent fish from getting into water intakes.

8.7. Fish traps and fish-ways should be designed in accordance with Construction Norms and Rules 50- 74, 55-79.

8.8. When new reclamation facilities are designed, placed, constructed and launched into operations, as well as when existing reclamation facilities are reconstructed and expanded in fishery ponds, it is required, upon agreement with fisheries conservation entities, to provide for fisheries conservation measures in project layouts and cost estimates; in case of construction of a dam, provision should also be made for measures on full utilisation of water reservoirs for fisheries.

8.9. When designmg and constructing new, or expanding and reconstructing existing irrigation and drainage systems, it is necessary envisage more profound use of water resources for development of commercial fish breeding and increase of valuable fish stocks, upon assignment of the Ministry of Fisheries of the USSR.

FOREST SHELTER BELTS

8.10. Forest shelter belts should be provided for in reclamation systems.

8.11. Depending on natural conditions, the forest shelter belts should be of the following types: field shelter belts, water shelter belts, soil shelter belts, and landscaping shelter belts.

8.12. The area envisaged for creation of forest shelter belts should not be more than 4 % of irrigation area. The area of shelter belts along arterial and distribution channels should be defined depending on the length of the channel and the width of the shelter belt, taking into account the creation of free access to channels for cleaning and repair purposes. The length of the shelter belt requires to be not less than 60% of the channel length.

The area for other groups of shelter belts (along roads, around ponds, near settlements, pumping stations, on lands that are not used for agriculture etc.) shall be defined based on concrete conditions of the object to be covered.

8.13. Forest shelter belts should be placed in two mutually transverse directions:

- axial (mam) - across the winds that are predominant in this area (dry winds that cause dust storms, stormy winds); - cross-sectional (supplementary) - perpendicular to axial ones.

At the time of designing the territory for irrigated lands, it necessary to ensure that the longer sides of crop rotation fields and that of certain imgation sites are located across the direction of predominant winds, or with deflection from that wind directions by not more than 30 degrees.

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8.14. At the ablated slopes with steepness of more than 1.5 degrees, the axial soil and water shelter belts need to be located across the slopes, along the contours, together with general preparation of the area, agro-technical and hydro-technical anti-erosion measures.

8. 15. The distance between field shelter belts needs to be defined depending on the following:

- type of soils (black, chestnut, gray, semi-desert, desert) and the extent of their exposure to erosion; - estimated height of woody species H and range of their effective impact 30H on wind regime; - methods and techniques of water application. In this case, the distance between axial shelter belts should not exceed 800 meters, while the distance between cross-sectional belts should not exceed 2000 meters, and 1000 meters on sandy soil.

8.16. Axial field shelter belts should be made in three lanes, while cross-sectional shelter belts should consist of two lanes. Water shelter belts for protection of arterial channels and their branches should be designed in as three-lane from one side of the channel and as two-lane from each side. The shelter belts along one side of open-type collectors should consist of tree lanes. Shelter belts along large artenal channels and collectors should consist of 4-5 lanes from one or both sides.

8.17. When channels are designed outside the irrigated lands or along their boundaries, the shelterbelts should include brushwoods from the heath side.

8.18. The last lane of plantations along channels should be set at the distance not less than 3 meters from the floor of the dam or the slope of the excavation. If the height of the dam (depth of the excavation) exceeds 3 meters, this distance should be increased to 4-5 meters.

The lane of woods shall be located at the distance of 2.5-3 meters from the edge of the troughs, and at 2 meters from the pipelines.

The distance between closed-type collectors and the shelter belts shall be defined in accordance with paragraph 3.76.

8.19. Shelter belts along the boundaries of irrigated lands with intensive soil erosion sites should be designed as multi-lane (4-5 lanes).

8.20. The woods around ponds and water basins should be designed as one, two, or three belts. The first belt (bank reinforcement) needs to be created as two or more lanes of willow bushes in the zone of an estimated water level. The second belt of plantations (wind-braking and draining) should be made of poplars and tree-type willows and placed between the reference marks of the estimated and the highest water levels. The third belt (anti-erosion) should be made of drought-resistant types of trees and placed above the highest water level.

8.21. On the diked areas in river flood plains, multipurpose shelter belts should made of 2-4 lanes of trees (preferably poplars) to be located along the boundaries of those diked areas, as well as the channels of the conductive drainage network.

8.22. The shelter belts on seed-plots, in gardens and vineyards, as well as in tea and citrus gardens should be set as a network of interactive forest lanes: along external boundaries of an irrigated area - 2- 3 lanes; inside an imgated area - 1-2 lanes. The distance between the first lane of garden trees, or that of other plantations, and the shelter belt should not be less than the width of the lanes between the garden trees or other plantations. 8.23. Shelter belts along roads need to be placed at the distance of 2.5-3 meters from the edge of the road ditch. Placement of shelter belts along power transmission and communication lines should be done in accordance with existing norms of construction and operation of those lines. 46 01/03/03 Draft

8.24. The methods and techniques of water application in the shelter belts should be the same as those for irrigated agricultural lands. Creation of additional irrigation network and use of water application techniques exclusively for watering the shelter belts are allowed.

8.25. When the overhead imgation technique is used for agricultural crops, it also needs to be used for watering of shelter belts.

8.26. Liquidation of existing wood-type and bush-type shelter belts and plantations is allowed only if feasible, taking into account their environmental significance.

WILDLIFE PROTECTION

8.27. Special crossings for wild animals should be provided at line structures (channels, pipelines). The design and the number of crossings should be defined based on the data about migration routes, depending on the number and behavioural features of migrating animals.

8.28. Special sites should be set up every 800 meters along arterial channels as drnking-places and way- outs for hoofed animals, in case if they get into the channels.

8.29. Deforestation by using chemical methods in places of mass inhabitation of animals is not allowed.

ANTI-EROSION WORKS

8.30. Depending on the purpose, the types of anti-erosion and hydro-techmncal works may include:

- water-blocking: dike-channels, dike-terraces, impounding dams, groins; - water-guiding: upland channels, dikes and channels for dispersal of concentrated water flows; - water-discharging: steep channels, check drops.

8.31. Anti-erosion works, together with other activities on irrigated and drained lands, should stop the development of a network of ravines, mitigate, and create further conditions for prevention of, erosion processes at the whole irrigated on drained area.

8.32. Designing of anti-erosion hydro-technical works needs to be done, taking into account the minimum allocation of land for these works, and retention of the configuration of crop rotation fields that is convenient for cultivation. Combination of various-purpose works is allowed. The type and design of anti-erosion hydro-technical works should be defined taking into account the requirement of paragraph 4.2.

8.33. The rank of anti-erosion works that protect irrigated or drained lands should be defined in accordance with paragraph 1.7. Maximum estimated water discharge should be determined in accordance with the Construction Norms and Rules II 50-74.

WATER PROTECTION

8.34. Measures and requirements on protection of water and associated natural resources at the time of designing of reclamation systems must be defined based on the schemes of multi-purpose use and protection of water resources, and the schemes of reclamation development of the basin and the region.

8.35. At the time of designing of water reservoirs as sources of water intakes or sinks for return waters within a reclamation system, the water protection measures must be defined in accordance with the Construction Norms and Rules 2.04.02-84.

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8.36. In reclamation systems and surrounding areas, measures should be included to protect the waters from drain and changes in water relationships in protected natural compounds, and to preserve and improve the water relationships and conditions of water use.

8.37. To protect water from pollution, it is necessary to provide for creation of water-conservation forest zones and shelterbelts that are consistent with the general system of protective forestation. Water conservation zones should be created along the banks of ponds, water reservoirs, with retaimng the natural vegetation and introduction of trees and bushes that have economic value and high water- conservation effect.

8.38. Sanitary-hygienic activities should be envisaged to ensure observation of sanitary requirements to the regime (consumption, reserves, levels of surface and underground waters) and quality of water, which are defined by the "Rules on protection of surface waters from waste waters contamination". When water reserves of the reclamation system, or water sources located within the zone of impact of that reclamation system, are used for household/drinking water supply, the requirements on protection of the water source waterworks are defined in accordance with the Construction Norms and Rules 2.04.02-84.

LEGISLATION IS REGULATING ECOLOGICAL MINIMUM OF WATER FLOW.

According to the Water Code Article 90, water discharge (ecological water discharge) is camed out from water reservoirs with the purpose of water bodies conservation in accordance with environmental requirements. This article determnes also the water quantity taken without reduction.

The State Amelioration and Irrigation Committee units detenmne for each water body the quantity of ecological water discharge as well as the water quantity taken without reduction. It is permitted to satisfy the water consumption requirements in water through ecological water discharge.

There are no standard rules for the determnation of water flow minimum in both Azerbaijan Republic and Former Soviet Union legislation.

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ANNEX B

BIODIVERSITY AND PROTECTED AREAS

Contents

B.1 Biodiversity in the Project Area, Report Prepared by Mr Ramiz Tagiyev, Local Consultant in the EA Team B.2 Rare and Endangered Species in the Northern Project Zone B.3 List of English and Latin Species Names B.4 Rare and Endangered Species of Azerbaijan

B.1 BIODIVERSITY IN THE PROJECT AREA

Background, obiective, and scope of the report

Background. The World Bank (WB) is planning to implement an Irrigation Distribution System and Management Improvement Project (IDSMIP) in Azerbaijan. In order to assess possible environmental impacts of the proposed project, the World Bank contracted the Investment Centre of the UN Food and Agriculture Organisation (FAO). The FAO Investment Centre engaged a local biodiversity expert, Mr Ramiz Tagiyev, to assist in the environmental assessment and produce this report.

Objective. The objective of the report is to assist the group of international consultants in collecting and -- analysing the information related to biodiversity and -Protected Areas within the context of the environmental assessment of the proposed irrigation project.

Scope of work. Under overall supervision by the group of international consultants and the environmental specialist of the Project Implementation Unit of the World Bank Rehabilitation and Completion of Irrigation and Drainage Infrastructure Project, the work of the local consultant included (i) identification, location on a map and description of specially protected natural areas and sites in the raions that will be covered by the IDSMIP (Aghjabedi, Beylagan, Zardab, Imishli, Saatli, Sabirabad, Khachmaz, Geranboy, Babek, Sharur), as well as the habitats of important species in those raions, and (ii) an analysis of the previous and current situation of the Lakes Ag-Gol and Sarisu. The study was based on a desk review.

Protected areas in the project zone

Section summary. This section includes identification, mapping (see Map 3) and brief descnption of all areas located in the raions covered by the IDSMIIP, which have the official status of a Nature Reserve or Protected Area or are expected to be granted such a status in accordance with the national legislation on specially protected zones (State Reserve, Protected Area, National Park, etc.).

General definitions. The Ag-Gol and Goy-Gol State Reserves, the Ag-Gol and Korchay Protected Areas, and 42 natural heritage sites, all having the status of specially protected natural zones and sites, are located in the territones of the raions covered by the IDSMIP. The Shah-Dag National Park and the Along-the-Kura State Reserve are expected to be set up. (See Map 3.) Specially protected natural zones and sites are the national wealth of the Azerbaijan Republic, and are of special environmental, scientific, cultural and aesthetic value. The legal framework for establishment and protection of those zones is determined by the Law of the Azerbaijan Republic "On Specially Protected Natural Zones and Sites" (March 24, 2000).

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National Parks - areas that are located within natural complexes of special ecological, histoncal, and aesthetic importance and are entitled to a status of nature protection and scientific research. These areas are used for nature protection, educational, scientific, cultural, and other purposes. Areas of national parks are classified as specially protected natural zones of national significance, and the land within that territory, including water resources, vegetation and animal world, is given to national parks for permanent use.

State Reserves (zapovednik) - areas, which are entitled to a status of nature protection and scientific research, and are created to preserve special and rare natural complexes and to study natural processes and events. Areas of State Reserves are classified as specially protected natural zones of national significance. Special protection regime is applied in these areas.

State ProtectedAreas (zapaznik) - areas that are of special significance for preservation or rehabilitation of natural complexes or that of their components, as well as for maintenance of ecological balance. State Protected Areas may be established on land plots, as provided in the legislation, without taking those land plots from relevant owners, users, or leaseholders of that land.

Natural heritage sites - natural sites of special ecological, scientific, cultural and aesthetic significance. Natural heritage sites include: rare landscapes or elements that are typical for certain geographic zones; valuable forests that represent typical local groups of trees and are distinguished by the occurrence of rare species; areas covered by endemic plants or those under threat of extinction; individual perennial trees; geological discoveries; caves; paleontological sediments; springs; rare lakes; and other sites. Special protection regime is applied to areas where natural heritage sites are located, and their natural condition is preserved. Natural herntage sites may be established on land plots, as provided in the legislation, without taking those land plots from relevant owners, users, or leaseholders of that land. Sites that are referred to as natural heritage, as well as the areas where such sites are located, shall be excluded from economic utilization, and any activity in those areas that disturbs the natural heritage sites shall be prohibited.

Zones that are entitled to special protection status within the raions envisioned for implementation of the IDSMIP, according to the Laws of the Azerbaijan Republic "On Protection of Environment" (dated June 8, 1999, # 678-IQ) and "On Specially Protected Natural Areas and Sites" (dated March 24, 2000, # 840-IQ), are descnbed below.

Aghjabedi and Beylaqan raions. Both the Ag-Gol State Reserve and Ag-Gol State Protected Area are located in the territory of Aghjabedi and Beylaqan raions.

Decree # 130 issued by the Government of Azerbaijan on February 26, 1964 established the Ag-Gol State Protected Area covering 9,173 ha, to protect birds and animals that are settled on lakes in the Kura River valley. After 14 years, Decree # 76 issued by the Government of Azerbaijan on March 2, 1978 established the Ag-Gol State Reserve covering 4,400 ha of the water area of that Protected Area. Later on, based on a Govemment Decree dated December 31, 1987, a 782-hectare land area of the Protected Area was given the status of reserve, so the total area of the State Reserve reached 5,182 ha. The objective of establishment of these special protected areas is to preserve nesting, feeding and wintering grounds of waterfowl and wetland birds, as well as to breed commercial fish species.

The key protected site is the Ag-Gol wetland ecosystem, the birds and animals that are temporarily or permanently settled in this area. 134 species of birds, 22 species of mammals and 12 species of fish are settled in this area. The rare nesting grounds are preserved for settlements of long-legged and web- footed birds, which are of high scientific and practical significance.

Geranboy raion. The Korchay ProtectedArea was created in November 1961 on a 15,000-hectare area located in the terrtory of Khanlar and Geranboy raions. The Protected Area consists of a bigger part (14,500 ha) and an affiliated zone (500 ha), which is located in the area where the Qoshqarchay River

50 01/03/03 Draft falls into the Kura River. The bigger part is 21 km from west to east and 12 km from north to south, while the affiliated zone is 5 km from north to south and 1 km from west to east.

The objective of establishment of this Protected Area is to preserve game animals and birds settled in the area. The area consists of plain-type, hill-type areas and low-height mountains (Bozdaq). As for natural landscape, the area includes wormwood/saline semi-desert, crop fields and hayfields. The following types of vegetative groups are represented: wormwood/saline (64.6 % of the vegetative cover); saline (21.4 %); wormwood (9.1 %) and river bed plantations (2.6 %). The animal world of the zone is represented by gazelles, rabbits, foxes, and wolves, while birds include ptarmigans, partridges, etc. In 1968-1969, 90 gazelles were reported. In early 1990s, 280 gazelles, 180 rabbits, 925 ptarimgans and 370 partridges were reported in the zone.

According to some maps, part of the Goy-Gol State Reserve (northern slope of the Kapaz Mountain) extends to the territory of Geranboy raion. However, other documents show only the territory of Khanlar raion under the Goy-Gol State Reserve.

This area mainly consists of alpine meadows. The Goy-Gol State Reserve was established on July 14, 1965, for the purpose of preserving the rich natural resources of that area of the Small Caucasus - biotic community of protective and climatic/recreational mountainous forests and meadows, as well as valuable animals -, studying the habitat conditions and the ways for their restoration and reproduction, maintaining the original condition of delightful mountainous lakes and rivers, and more efficient use of this area for scientific research activities. The size of the Goy-Gol State Reserve is 7,181 hectares, of which 3,806 hectares are covered with forests.

Khachmaz raion. Creation of Shah-Dag National Park is envisaged among priority environmental measures both in the "Azerbaijan Comprehensive Nature Protection Plan for the period up to 2010", which was approved by the Government of Azerbaijan on September 23, 1988, and in the "National Environmental Action Plan", which was approved on January 1998.

It is envisaged that the National Park (268,000 ha) will be established in northeastern Azerbaijan (raions of Gusar, Guba, Devechi, Khachmaz, Ismayllli, and Shamakhi), and that its area will cover all of the perpendicular belts of the northeastern slope of the Big Caucasus Mountains. This area is very unique for its bio- and landscape diversity, natural, archaeological and histoncal heritage, as well as for its recreation capacities.

Creation of the Shah-Dag National Park represents a two-fold increase in the territory of specially protected areas in the country and a practical step in the fulfilment of obligations assumed in accordance with the requirements of the Convention on Biodiversity.

At present, the project on creation of the Shah-Dag National Park has been approved by the Global Environment Facility (GEF) and is being implemented by the World Bank. During the first stage of the World Bank project, the boundaries of the park will be clarified. Earlier plans on Park boundaries are shown on Map 3.

Zardab raion. The "Azerbaijan Comprehensive Nature Protection Plan for the penod up to 2010", approved by the Government in 1988, envisages the creation of the Along-the-Kura State Reserve on 5,420 ha, for the purpose of protection and restoration of tuqay forests around the Kura River in Barda and Agdash raions, and the unique plantations of "Sultanbud" pistachio trees in the bordering area of Barda and Agdam raions. It was envisaged that this reserve would also include a small part of around- the-Kura forestlands that are located in Zardab raion (near Bichaqchi village).

Natural heritage sites. Perennial trees, valuable woods, and geological (palaeontology) sites are included in the list of natural heritage sites, approved by the Resolution # 167 of the Government of Azerbaijan, dated March 16, 1982, and are protected by the State. There are 42 natural heritage sites

51 01/03/03 Draft located in the IDSMIP raions (see Map 2). The list of natural heritage sites by raion is shown in Attachment 1.

Hunting areas. Sarisu Lake, which is located m the temtory of Sabirabad and Imishli raions, is attached to the country's Military Hunters' Society as a 6,500-hectare hunting area. Sherbet Qobu, Zaharmargol and Boz-Gobu wetland areas, which are located in Imnishli raion, are attached to the Azerbaijan Hunters' and Fishers' society "Azerovchu" as a 2,000-hectare hunting area..

Important species in the pro2ect zone and their habitats

Section summary. This section identifies important species and their habitats m the project zone.

General definitions. According to the Law of the Azerbaijan Republic "On Wildlife" (June 4, 1999), species of fauna that inhabit specially protected zones, water basins, hunting areas and forests of the country, as well as Azerbaijan's sector of the Caspian Sea, are referred to as national-scale natural resources. Based on this law, owners (regardless of the type of ownership) of the land that is inhabited by species of animals and plants included in the Red Book of the Azerbaijan Republic, must comply with the arrangements for protection of those species and create conditions that ensure natural restoration of species.

According to Article 29 of the above-mentioned law, while canying out any activity that has or may have a negative impact on wildlife conditions, individuals and legal entities carrying out such activities have to ensure that habitat, breeding grounds and migration routes of animals are preserved. Moreover, while locating, designing and constructing human settlements, enterprises, facilities, pipelines, roads, power and communication lines, incorporating virgin lands, wetlands, coastal and shrubby areas into economilc use, carrying out reclamation, forestry and geology-prospecting activities, locating pasturelands for livestock, establishing tourist routes and recreation facilities, activities have to be envisioned and implemented aimed at preservation of habitat, breeding grounds and nmgration routes of wild animals, and the inviolability of zoo-ecologically valuable areas has to be ensured. Finally, in the operation of hydraulic installations that may have negative impacts on the habitat of wild animals in water basins, detenmination of hydrological and water consumption regime, as well as other requirements with regard to the protection of wildlife, have to be carried out taking into account the interests of hunting areas and fishenes.

Habitats of important species. It should be noted that the information below is obtained from relevant publications on the regions concerned, since it was impossible to obtain maps with the scale of 1:100,000, and the only maps that could be obtained had the scale of 1:50,000 (dated 1972), which did allow for identifying the type and the composition of the ecosystem of those habitats and that of surrounding areas, and existing situation with threats being imposed on biodiversity.

The list of amphibians and reptiles in the IDSMIP area is given in Attachment 2.

List of plants in the IDSMIP area that are included in the Red Book of Azerbaijan [3]

Name of plant Raion Zardab Geranboy Lotus Branch of Qarasu River White waterlily Branch of Qarasu River Ophrys caucasica Kura lowland Lady orchid Acantlaliinon tenuiflorum --- Town of Naftalan and surroundings

52 01/03/03 Daft T of Borsunlu village Rosa azerbajdzanica --- _--- English yew --- Woodland grape --- _---

According to the Red Book of Azerbaijan, black francolin, black-bellied sandgrouse, saker falcon and great bustard are among on-land-settling birds that winter in the IDSMIP area (Kura-Araz lowlands: raions of Sabirabad, Beylaqan, Zardab, Aghjabedi and Inushli). The list of birds that are related to wetlands of the Kura-Araz lowland is given in Attachment 3.

It should be noted that preservation of tugay forests in the River Kura-related raions within the IDSMIP area is one of the most important issues. Formation of tugay forests in desert and semi-desert areas is connected with rivers. Unlike other woods, tugay forests are particularly nch with dense brushwood and bindweed and mostly impassable. They play an important soil and riverbank protective role. These forests also add to the beauty of the Kura River and serve as shelter for game ammals and birds.

In the past, the whole section of the River Kura that passes through the temtory of the Azerbaijan Republic (900 k1m) was covered with tugay forests. Now only small islands of wood remain. This situation further increases the importance of appropriate preservation of remaining parts of the tugay forest along the River Kura.

The forestry area within Along-the-Kura zone is 63,000 ha (mcluding the Qarayazi State Reserve). Out of this total, 41% (25,000 ha) are covered with forest. The remaining part consists of open woodland or treeless areas (H. Aliyev, M. Khalilov, 1982). Poplar, which represents the major tree type, covers only 8,000 ha of natural forests along the Kura. Thus, the total area of poplar forests (with density above 0.5) is 1,400 ha. Such relatively open woods are located in the forested areas of Agstafa and Agdash raions. Given this, the creation of Along-the-Kura State Reserve (in the temtories of Agdash, Barda and Zardab ralons) under the "Azerbaijan Comprehensive Nature Protection Plan for the period up to 2010", is of current interest.

Ag-Gol Lake

Section summary. Analysis of previous and current situation of the Ag-Gol Lake. The section covers available data over a 20-year period with regard to changes in the water level, water quality, composition of species, anthropogenic and other threats to biodiversity, existing treatment status and its effectiveness.

General. The history of lakes in the Kura-Araz lowlands is connected with the Kura and Araz Rivers. This is also the case with Ag-Gol Lake, which was created as a result of floods on Kura and Araz. As MNngechevir and Araz water reservoirs were built, in 1953 and 1979 respectively, the flows of both rivers became regulated and the flow of floodwaters into Ag-Gol Lake stopped. This changed completely the hydrological regime of the Lake. Now the Lake exists mainly due to water inflow from collectors, and its level changes frequently depending on incormng drainage waters.

Publications provide various data about the size of Ag-Gol Lake. In 1977, the size of the Lake was 5,400 ha, while in 1983 the Lake reached 8,000 ha (1). Current size can be estimated at 4,400 ha, and the volume during high water-level period must be 45 million m3 . The maximum depth is 1.5-2 m; the average depth is 0.6-1 m. The water level in the Lake falls sigificantly by end-summer, while the depth drops to 20-25 cm.

Ag-Gol Lake cannot be viewed as one open water basin. It consists of a group of 8 large lakes (Boyuk Ag-Gol, Kichik Ag-Gol, Shor Gol, Qarabattag, Qushbazari etc.) and numerous small lakes that are

53 01/03/03 Draft linked to each other by water streams. The depth is 0.8-1.8 m in the lakes and can reach 2.5 m in channels.

Ag-Gol joins one collector in the south, and Sarisu Lake in the east (through a siphon under the Main Mli Collector). Ag-Gol Lake belongs to the type of running lakes. Velocity of the water flow is 0.5-0.7 rn/s. There are islands in the area of water basins that are covered with dry reed and other wormwood grasses. The size of those islands varies from 2 to 20 hectares. The system comprising all these lakes represents one site, which is 25 km long from west to east and 1.5-5.0 km wide. By abundance of aquatic plants, the Lake is a self-nourishing water basin [2].

Current protection status and its effectiveness. In order to protect non-migratory and passing birds that settle on and around Ag-Gol Lake, as well as the mammals and the ecosystems they have adapted to (wetlands), the Government Resolution # 130 dated February 26, 1964 established the 9,173-hectare Ag-Gol Protected Area in the territory of Aghjabedi and Beylaqan raions. Later on, the Ag-Gol State Reserve was established on 5,182 ha of the above zone (Government Resolutions dated March 2, 1978 and December 31, 1987 with regard to 4,400 ha and 782 ha respectively).

The Government Resolution # 372 dated October 13, 1987 envisioned, along with several other reserves, the expansion of the Ag-Gol State Reserve's area by additional 2,430 ha in 1987-1990. However, this objective was met only in part (782 ha instead of 2,430 ha).

It should be noted that since the creation of the Ag-Gol State Reserve (1978), the Government allowed commercial fishing in this area, which contradicts the status of a reserve.

The Government Resolution # 168 dated March 26, 1982 "On measures aimed at future development of fishing in freshwater lakes of Azerbaijan" prohibited the discharge of drainage waters into Ag-Gol Lake, and assigned to bring (reduce) the size of the Ag-Gol State Reserve to 4,400 hectares.

In mud-I 980s, the Ministry of Irrigation and Water Resources built a dyke along the perimeter of the Ag-Gol State Reserve, and constructed a spillway (siphon) and regulating locks in order to keep the Lake's water level stable. However, the other part of assignment was not accomplished. The flow of collector/drainage waters into Ag-Gol was not stopped, and the project of "Azerdovlatsulayiha" Institute aimed at shipment of water from Kura River in order to supply the lake with fresh water, was not implemented.

As a result of construction of the dyke in 1985, Ag-Gol Lake was divided into two parts, and a 2,000- hectare zone was separated from the main part. One part of the separated area was drained, while the other part turned into a swamp. Since later on the natural environment gradually began recovering, owing to rain and irrigation waters, the objective to drain the area was not achieved. Salinity in Ag-Gol is 6-7%o, which is common for lakes. Nevertheless, the oxygen content in the Lake's water is not that favorable: not higher than 2.3-6.9 mg on the lake's surface. Maximum content of oxygen in the water is dunng the winter season, while the minimum content is in the summer season.

Vegetative cover. There are 19 types of higher aquatic plants growing in Ag-Gol Lake [10]. The area of Ag-Gol is mainly covered with wormwoods, predominantly southern cane. Cane is represented by widespread and impenetrable plantations where its biomass reaches 9 kg/M2 [8]. Water cane with narrow and small leaves is also widespread. Among typical aquatic plants, water milfoil, fennel pondweed, shining pondweed and common bladderwort are also represented [2]. Currently 65-70% of the site of the Lake is covered with vegetation.

Zooplankton. 44 species of zooplankton are reported in the Lake. Total biomass varies between 0.1-2.9 g/m3.

Zoo-benthos. 122-125 species are found in the Lake. Total biomass varies from 0.7 g/m 2 (1970s) to 1.61g/m2 (1960s). 54 01/03/03 Draft

Ichthyo-fauna. In the past, the ichtyo-fauna of Ag-Gol Lake was very rich due to the Lake's close link with the Kura River. However, since the link with Kura was cut, and collector/drainage waters became the only feeding source, the water in the Lake gradually became saline and this led to a dramatic reduction in the number of fish important for fisheries.

In 1972, 12 species of fish (common carp, bream, pike perch, Caspian roach, wels catfish, Northern pike, tench, asp, rudd, Kura barbel, bulg, mosquito fish) were found in Ag-Gol Lake. It was found out from more recent studies (1980-1993) that Kura barbel and asp no longer occur, however, two commercially important species (Crucian carp and silver carp) and one commercially insignificant species (North Caucasian bleak) of fish have entered the Lake's ichthyo-fauna. Thus, there are 13 species of fish living currently in Ag-Gol [10]. The composition of fish species living in the Ag-Gol Lake is shown in Attachment 4.

Amphibians and reptiles. Amphibians in the Lake area include green toad, marsh frog, European tree frog, and common tree frog whereas reptiles include freshwater terrapin, European pond terrapin, spur- thighed tortoise, scheltopusik, European grass snake and blunt-nosed viper [7].

Ornitho-fauna. The reserve is abundant with bird species (134). Out of these, 89 species are nesting birds. Long-legged (30 species) and flat-beak (24 species) birds are predominant. There are 20 species of birds settled in the area, which are included in the Red Book of Azerbaijan, rare, or under threat of extinction (Attachment 5). There are rare nesting grounds of long-legged and web-footed birds, which are of great scientific and practical interest.

According to 1964-1965 data,- the number of ducks, coots, and sandpipers nesting at Ag-Gol Lake and around it was 30,000-35,000 [14] (Attachment 6). At the time of count carried out in 2002 with participationof scientists, the number of waterfowl was reported to be 69,000.

Mammals are mainly represented by 22 species. The species that are most frequently found are as follows: wild boar, beaver, jackal, wolf, fox, rabbit, badgeretc. (Attachment 7).

Fisheries. In the past, the lakes around Kura River were considered as important fishing sources. These lakes were linked with Kura River and contained rich food reserves. Their water was clean and rich with oxygen. The composition of fish species inhabiting the lakes changed with time due to changes in the River Kura. In these conditions, the fish reproduced well, which led to improvement of productivity of those lakes. The situation now has completely changed. According to statistics, during the last 40-50 years fishing in Ag-Gol Lake has declined by 10-12 tumes (Attachments 8 and 9).

Microbiological Profile of Ag-Gol Lake [8]. Water temperature in the Lake Ag-Gol varies between 6 and 330 C. Salinity of 6-7%o has become common for the Lake. Allochthonous supply of substances does not have a fixed source, and biogenic elements in the water are observed only during the period of decline among higher plants. Thus, in winter season, the concentration of ammonium nitrogen, nitnte nitrogen, and nitrate nitrogen, as well as that of phosphate phosphorus, reaches not more than 0.9, 0.02, 1.9 and 0.70 mg/l respectively. Beginning from early spnng, when underwater vegetation starts developing, the above-water plants suffer from the lack of blogenic elements.

The oxygen situation in the Lake's water is unfavourable for the fauna. On average, the content of oxygen on the water surface is 2.3-6.9 mg/I. As a rule, lack of oxygen is observed during warm months, and losses are frequent in isolated bays.

The total number of micro-organisms in the water of Ag-Gol Lake reaches 39-40 million/ml and changes rapidly from season to season.

It should be noted that, in the summer, the quantity of micro-organisms decreases drastically. Usually, during this period, the biogenic elements disappear from the water, and a general decline in the 55 01/03/03 Draft concentration of dissolved oxygen is observed. Summer indictors of saprophytes are quite typical. In the summer, the reduction in the number of saprophytes is accompanied by an increase of the share of soporiferous bacteria forms. Thus, it is possible to state that Ag-Gol Lake has turned into a dystrophic- type water basin, and that organic substance in it consists of recalcitrant components, mainly higher aquatic vegetation.

Profile of the micro-flora of bottom sediments also reveals that Ag-Gol Lake, by changing its trophic status, has become a typical dystrophic water basin with all characteristics of a swamp-type ecosystem. Suffice it to say that a bacteria enosis of the bottom sediments shows the quantity of methane-generating bacteria to be stable at high levels and to make up 7.5 mnllion/g on average.

Impact of anthropogenic factors on the Lake's fauna (birds, fish). Detenoration of oxygen conditions and the microbiology in the Ag-Gol Lake due to the change in its hydrological regime has adversely affected the fish. As can be seen from fishing statistics, dunng the last 40-50 years fishing in Ag-Gol Lake has declined by 10-12 times (Attachment 8). According to data on count of wetland birds, no impact on the number of birds wintering at the Ag-Gol Lake can be observed (Attachments 6 and 10).

Proposals on improvement of the Ag-Gol Lake's conditions. The conditions of the Ag-Gol Lake are primarily connected with its hydrological regime. In order to improve the hydrological regime, the flow of collector-drainage waters into Ag-Gol should be stopped, and measures should be taken to supply the Lake with fresh water. The Kura River (project of the "Azerdovlatsulayiha"), the Araz River (Orjonikidze Canal), and the Upper Qarabag Canal may be used as the source of fresh water. In addition, in order to regulate the water level at the Ag-Gol Lake, the locks (gates) at the sag pipe, which carries the water of the Ag-Gol Lake under the Main Mil-Qarabag Collector, should be repaired.

Sarisu Lake

Section summary. Analysis of previous and current situation with the Sansu Lake and surrounding swamps. The section covers available data over a 20-year period with regard to water quality, composition of species, protection status, and anthropogenic and other threats to biodiversity.

Water level. Nakhalikhchala Lake is part of the Sarisu Lake system together with Khalfachala, Agchala and other lakes. As a result of regulation of the Kura River hydrological regime, a number of lakes, including Agchala, dried out completely. According to publications from 1960s (Qasimov, 1965), the size of Nakhalikhchala Lake was 3,000 ha, while its depth was 0.5-2.0 m. The dyke that was built in 1971 along the Lake's eastern coast had certain impact on its depth. Now the average level of water in Sansu Lakes is 1.6 m, the maximum level being 2.2 m.

Every year from November to April, water from Ag-Gol mixed with collector/drainage waters flows into the Lake though the Sherbet Ravine. From May to November, almost no water enters the Lake due to the reduction of drainage waters during that period. It should be noted that in July 1962, the Lake Sarisu dried out almost completely, and the rushes were burnt down. Only in the first quarter of 1963, the hollow of the Lake was filled up with water again.

The Lake does not have any current, however, when there is a lot of water in it, the excess waters flow into the Kura River through Mirza-aga Canal. Changes in the water level are typical for Nakhalikhchala (Sarisu) Lake. In the summer, due to intensive evaporation, the water level drops to 70-80 cm (or sometimes more). Hydro-chemical conditions of Nakhahkhchala Lake are very tough and unstable. Salinity is 7-8 °vhile%o the oxygen content is 2.4 - 5.1 mg/l.

Protection status. Nakhalikhchala (Sarisu) Lake is located in the territory of the raions of Sabirabad and Imshh along the right bank of Kura River. Based on the Law of the Azerbaijan Republic "On Wildlife" (June 4, 1999) and existing Regulations "On Hunting Activities in the Temtory of the Azerbaijan Soviet Socialist Republic" (as approved by the Council of Ministers of the Azerbaijan SSR 56 01/03/03 Draft through Resolution # 64 dated February 8, 1983), the Sarisu Lake was attached to the country's Military Hunters' Society as a 6,500-hectare hunting area.

Vegetative cover. Eighteen species of higher aquatic plants are reported in the Lake. These plants are mainly represented by ordinary cane. Typhor angustifolia is widely spread in the shore zone of the Lake. Total biomass of plants is 8.0 kg/m2.

Zooplankton. Publications report 20 organic species for this Lake. A thorough study of the Lake's zooplankton was undertaken in the 1970s. Data from 1976 reported 24 species of zooplankton with an average biomass of 1.2 g/m3.

Zoo-benthos. Data from 1978-1979 reported 122 species in the Lake. l[chthyo-fauna. Publications on the Lake's ichthyo-fauna before the construction of the Mingechevir Dyke reported 21 species of fish in the Lake. Eight species were reported to be commercially significant. Later on, the composition of the Lake's fish stock has changed due to changes in the hydrological conditions.

Ornitho-fauna. The species of birds settling at the Sarisu Lake are typical for the Kura-Araz lowland. The List of these bird species s given in Attachment 3.

The studies that were camed out in February 1996 by Azeri and foreign ornithology experts under the BP/STATOEL program for protection of wetland areas reported about 311,000 waterfowl in the system of Sarisu (Nakhalikhchala) Lake. The report shows that the size of the Sarisu system is 11,147 hectares [12] (Attachment 12). At the time of the count carried out in February 2002 with participation of scientists, the number of birds at the Sarisu Lake was 113,000.

Fisheries. The Sansu Lake is referred to as a water basin significant in terns of fishenes. Productivity of fish was stable during the period when the Lake had a connection to the Kura River. However, dunng recent years, the conditions for reproduction of fish have changed and the fishing declined, since the hydrological regime of the Sarisu Lake-depends on the Ag-Gol Lake. According to statistical data, the fishing at the Sarisu Lake has dropped by 39 times during the last 40-50 years (Attachments 8 and 13).

Impact of anthropogenic factors on fauna (fish, birds). The Sarhsu Lake does not have any current. Although it is located in an area close to the River Kura, it does not receive water from it. The source of water for Sarisu is Ag-Gol, and its hydrological regime thus depends on that of the Ag-Gol. Deterioration of hydrological conditions has first of all affected the fish living m the Sarisu Lake. The fishing declined by 39 times during the last 40-50 years. According to information on the count of wetland birds, no impact has been observed with regard to waterfowl wintering at the Lake.

Proposals on improvement of the Sarisu Lake's conditions. As the Sarisu Lake does not have any current, its hydrological conditions depend on those of Ag-Gol. Measures taken to improve the situation at Ag-Gol will positively affect Sarisu Lake as well. On the other hand, since Sarisu Lake is significant in terms of fisheries and hunting, its status would justify the implementation of other measures to ensure the development of these fields of activity.

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Attachment 1

List of natural heritage sites in the IDSMIP raions

Aghjabedi raion

Perennial trees

Name Quantity Location Descnption Oriental Plane 4 Kagrizli village Diameter: 96 cm Helght: 25 m Age: 100 years Onental Plane 1 Bala-Kagrizli Diameter 180 cm Height: 24 m Age: 350 village years Onental Plane 1 Agabeyll Diameter: 76 cm Height: 24 m Age: 150 village years Oriental Plane 1 Kurdlar village Diameter 140 cm Height: 25 m Age: 300 years Oriental Plane 3 Sarnjali village Diameter 120 cm Height: 23 m Age: 200 years Oriental Plane 2 Sarijali village Diameter 120 cm Height: 23 m Age: 150 ______20______Geyuk_ village__ _rs9 ya__ years Pistachio-tree 20 Geyuk village Diameter: 60 cm Height: 9 m Age: 400 years Pistachio-tree 2 Sarjali village Diameter: 60 cm Height: 7 m Age: 300 years Stone-tree 5 Kurdlar village Diameter: 40 cm Height: 7 m Age: 300 years Stone-tree 1 Boyat village Diameter: 70 cm Height: 9 m Age: 600 years

Beylagan raion

Perenmnal trees

Name Quantity Location Description Ornental Plane 50 Town of Diameter: 70 cm Height: 27 m Age: 50 years Beylaqan Zdanov street Pine-tree 13 Town of Diameter: 60 cm Height: 25 m Age: 50 years Beylaqan Square named after S. Qaziyeva Pistachio-tree I Sharq village Diameter: 76 cm Height: 7 m Age: 500 years

Geranboy raion

Perennial trees

Name Quantity Location Description Pistachio-tree 1 Qizilhajili Diameter: 36 cm Height: 8 m Age: 150 years village Oriental Plane 1 Town of Diameter: 120 cm Height: 35 m Age: 250 Goranboy years Oriental Plane 3 Township Diameter: 250 cm Height: 35 m Age: 500 Hajilar years Oriental Plane I Township Diameter: 160 cm Height: 32 m Age: 400 Hajilar years

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[Oriental Plane 2 Township | Diameter: 360 cm Height: 35 m Age: 600 I ______|H ajilar | years Oriental Plane (22 | Borsunlu | Diameter: 200 cm Height: 25 m Age: 500 ______I |______village years IOriental Plane I2 Oaraqoyunlu I Diameter: 100 cm Height: 25 m Age: 200 village years neriPntal PlanP 1 ChllgiprtivI yeniafir- 1 cnrm IS5picrht m A 20p0O avillage years Oriental Plane 97Towoafaal Diamleter: 140 cmn Height: 23 m Age: 200 village years OrientaiPiane ii Sanbkurdviiiage Diameier: i20 cm Height: 25 m Age: 200 v years Oriental Plane 7 Town of Diameter: 140 cm Height: 30 m Age: 200 Genarboy years Oriental Plane Azizbekovu Diameter: 140 cm Height: 30 m Age: 200 14 1village ears |Onental Plane 4 Qarqujaq |Diameter: 140 cm Height: 30 m Age: 200| l l | ~~~~~~ ~ ~~~~village|'years OnentalPlane1 4 t ~~~~Muzdular Diameter: 140 cm Height: 30 m Age: 200 L~~~Onental~ _ ~_ Pln ~_ _ ~ ~ _ _ ,__villagre _ Ivears_ _ _

Khachmaz rayon

Perennial trees

Name Quantity Location | Description . uriental riane 4 Leaget vilage Diameter: 2/u cm Height: 7u m Age: Duu years Oriental Plane }7 j Mudaffaroba Diameter: 170 cm Height: 37 m Age: 350 ______I vllage I years Oriental Plane 1 | Garadaghly Diameter: 110 cm Height: 27 m Age: 200 I ______I __ _ Ivillage years |OrientalPlane | 2 Chakhchaly Diameter: 120 cm Height: 30 m Age: 250

Babek rayon of Nakhchivan Autonomous Republic (AR)

Geological (paleoontological) units

Name I Quantity Location | Description Old Nakhchivan 14 Nakhchivan Ancient (4000-5000 years) mountain mines salt rmines AR, Douz-dan, | Babek rayon |

Shahbuz rayon of Nakhchivan Autonomous Republic

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Name Quantity Location Descnption Elm (bark) 1 Khok village Diameter: 66 cm Height: 12 m Age: 250 years

Elm (bark) 2 Mahmudkend Diameter: 60 cm Height: 11 m Age: 200 years village Mulberry 1 Jalilkend Diameter: 210 cm Height: 13 m Age: 300 village years

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Attachment 2

List of amphibians and reptiles in the llD SMlP area [71

Species Raion Goranbo Sabiraba Beylaqa Zardab Agjabed Quba Imishli y d n i

Bufo viridis + + + + + + + Hyla arborea + + + + + savignyi Hyla arborea + + + + + schelkownikowi Rana ridibunda + + + + + + + Clemmys caspica + + + + + + + Emys orbicularis + + + + + + + Testudo graeca * + + + + + + + Ophisaurusapodus + + + + + + + Anguisfragilis - + --- Lacerta strigata + + + + Lacerta trilineata + Ophisopa elegans + + + + Natrix natrix + + + + + + Natrix tessellata + + + + + + + Coluberjugularis + + + + + + Coluber tavergieri + + + + Elapha dione + + + Telescopusfallax + + + + Vipera lebetina + + + + + +

* - included in the Red Book of Azerbaijan

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Attachment 3

Birds encountered at major water basins of the Kura-Araz lowland during various periods, pointing out their biotopes as of early 70s 1111

Groups and species Biotopes

Q i A 3 u0 > e~~~~~CA1.

Podiceps cristatus ZP G Podiceps nigricollis ZP G Podiceps ruficollis ZP G Pelecanusonocrotalus ZP G Pelecanuscrispus ZP Phalacrocoraxcarbo ZP Phalacrocoraxpygmaeus Z G Ardea cinerea ZP G Ardeola ralloides P G Ardeapurpurea P G P Bubulcus ibis P G P Egretta alba P G Egretta garzetta P G P Nycticorax nicticorax P G Ixobrychus minutus G Botaurus stellaris ZP P Ciconia ciconia P Platalealeucorodia P G Plegadisfalcinellus P G Phoenicopterusroseus ZP Cygnus cygnus ZP Cygnus olor ZP Anser anser Z Z G Z Anser albifrons Z Z Anser erythropus Z Z Z Ufibrenta nrficollis Z Z Z Tadornaferuginea Z Z Z G Tadorna tadorna Z Z G G Anasplatyrhynchus Z Z G Anas crecca Z G Z Anaspenelope Z Z Z Anas strepera Z Z Z Anas acuta Z Z Z Anas angustirostris Z G Z Anas querguedula P P Z Netta rufina Z Z G Aythyaferina Z Z Aythya nyroca Z Z G

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Aythyafuligula Z Aythya marina Z Bucephalla clangula Z Oxyura leucocephala Z Mergus merganser Z Mergus serrator Z Mergus albellus Z Neophron perehopterus P+ Z Z -Cypsfulvu P+ Z Aegypius monachus P+ Aquila rapax P+ P+ Aquila clanga G Aguila pomarina G Circus cyaneus P P Circus pygargus P P Circus aeruginosus GZ Haliaetusalbicilla P+ Milvus horschun P+ Buteo Buteo P G Accipiter nisus P+ Z Pandion haliaetus P P Falco tinnunculus P P G Falcosubbuteo P P Falcoperegrina P P Coturnix coturnix P Francolinusfrancolinus O 0 Grus grus Z Anthropoides virgo Z Crex crex Z Porzanaporzana 0 Porzanaparva 0 Rallus aguaticus 0 Gallinula chloropus 0 Porphyrioporphyrio 0 Fulicaatra Z 0 Otis tetrax Z Burhinus oedicnemus Charadriusdubius G G Vanellus vanellus PZ PZ Vanellochettusia leucura G Himantopus himantopus P G Recurvirostraavosetta P G Haematopus ostralgus P ZP Trigna ochropus P ZP Trigna glazeola P ZP Trigna nebularia P ZP Trigna totanus P Z Trigna rythropus P P Trigna stagpatilis P P Trigna hypoleucos P G Trigna cinerea P P Phalaropuslobatus P P Philomachuspugnax P . 63 01/03/03 Draft

Calidrisminutus P Calidristemminchii P Calidristestacea P P Calidrisalpina P P Limicolafalcinellus P P Lymnocryptes minimus Z Z Gallinago gallinago Z Z Scolopax rusticola P P Nimenius arguata P P Limosa limosa P P Lareolapratincola G Glareolanordmanni P P Larus argentatus Z Larus ichthyactus Z Larus ridibundus ZP P Larus genel P Larus minutus P Chlidiniashybrida G Chlidoniasleucoptera G Chlidoniasnigra G Gelochelidon nolotica G Chlidoniashybrida G G Sterna albifrona G G Columba livia Z Z P Columba palumbus p p Streptopelia turtur P G Cuculus canorus G G Otus seops G Glaucidium passerinum P P Thene noctua P P Asio flammeus P Z Alcedo atthis 0 0 Merops apiaster P P Merops supereiliosus P Coraciasgarrulus P+ P+ G Upupa epops G P G Apus apus P P+ Dendrocopus syracus Z 0 Dendrocopos major 0 Dendrocopos medium 0 Dendrocopos minor 0 Alauda arvensis ZP Galerida cristata ZG Calandrellacinerea ZG Melanocorypha calandrea ZG Riparia rzparia P Hirundo rustica P Delochon urbica P Picapica Z Corvus corone GZ Corvus frugilegus GZ Cjrvus monedula Z Pariscoerulens Z 64 01/03/03 Draft

Parusmajor Z Paruspalustris Z Panurus biarmicus 0 Tpoglodytes troglodytes Z Muscicapa striata P G Oenanthaoenantha GP Turdus merula Z Turdus pilaris Z P Acrocephalus arundi 0 Acrocephalus schoeneba 0 Erythopyga galactots P P G Erethacus rubecula Z Motacilla alba P P Motacillaflava P P Lanius minor P G Lanius cristatus P G Lanius excubutor Z P Pastorroseus P P Emberiza schoen GZ Fringillocoelebs P P Z Carduelis cardielis P P Z Passer montanus P P P Passer domesticus P P

Note: 0 - non-migratory, G - nesting, P - passing, Z - wintering, P+ - casual fly-in

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Attachment 4

Species of fish living in the Ag-Gol Lake

Species According to 1967- According to 1980-1993 1972 studies studies 1. Cyprinus carpio + +

Abramis brama orientalis + + Stizostedion lucioperca + + Rutilus rutilus caspicus + + Silurus glanis + + Esox lucius + + Tinca tinca + + Aspius aspius + Sardinius erythropthalmus + + Barbus cyri + Pungitiusplatigaster + + Gambuzia affinis affinis + + Carassiuscarassius + Hypophthalmichtys molitrx + Alburnus charusinihohenacheri --- + Total 12 13

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Attachment 5

Rare and endangered birds settled in the Ag-Gol State Reserve

Species Type of settlement Status Pelecanus onocrotalus Wintering/migratory Number is reducing Pelecanus crispus Wintering/migratory Rare, number is reducing Platalealeucorodia Nesting/migratory Rare, number is reducing Ciconia nigra Casual fly-in Under threat of extinction Phoenicopterusroseus Wintering/mngratory Number is reducing Cygnus olor Wintering/migratory Rare, number is reducing Rufibrenta ruficollis Wintering/migratory Rare, under threat of extinction Anas angustrirostris Wintenng/migratory/nestmg Rare, number is reducing Pandion haliaetus Migratory Rare, number is rapidly reducing Haliaectus albicilla Migratory Rare, number is rapidly reducing Aquila rapax Migratory Rare, number is reducing Falco cherrug Wintering/migratory Rare, number is reducing Falco peregrinus Wintering/nesting Rare, number is reducing Francolinusfrancolinus Non-migratory Rare, number is reducing Porphyrioporphyrio Non-mngratory Rare Otis tetrax Wintering/migratory Number is reducing Chettusia gregaria Passing Rare, number is reducing Glareolanordmanni Nesting/migratory Rare Pterocles orientalis Nesting/wintenng/mugratory Number is rapidly reducing Vanellochettusia leucura Nesting Rare, number is reducing

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Attachment 6

Number of wetland birds nesting at the Ag-Gol Lake

Species Years 1961 1962 1963 1964 Anas strepera 1053 396 153 684 Aythyaferina 525 600 420 900 River ducks 2390 3970 1350 1640 Sea ducks 1370 980 Fulica arta 1800 6210 1390 4760 Porphyrioporphyrio 670 550 760 300 Platalealeucorodia 5320 Ardeidae 6820 Phalacrocoraxpygmaeus 2000 Total 6438 11726 5443 24404

Number of wetland birds wintering at the Ag-Gol Lake

Species Years 1961 1962 1963 1964 1997 1998 1999 2000 2001 Nov Dec Nov Jan Jan Jan Jan Jan Jan Anser 2840 1650 579 726 2. 3200 3300 3500 1600 Anser 600

Anser 8400 11400 8300 3600 10500 - - - - erythropus Rufibrenta 4200 4800 4500 3300 - - - - - ruficollis 1120 1880 1700 120 580 600 650 750

River 6380 26100 10190 8990 - - - - - ducks Sea ducks 1800 3120 1080 1140 2540 420 470 750 1100 Fulica arta 1100 6520 20400 2630 37500 17500 26500 28000 31000

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Attachment 7

Number of animals settled in the Ag-Gol State Reserve

Species Years 1997 1998 1999 2000 Wild cat 3350(?) 320 370 385 Badger 175 180 185 190 Wolf 32 35 40 45 Fox 770 780 810 840 Rabbit 1600 160(?) 1670 1680 Hedgehog 12 18 23 Wild pig 320 450 327 330 Jackal 410 - 470 512 Beaver 9200 9500 9700 9840 Water sable 20 22 25 27 Partridge 780 880 850 870

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Attachment 8

Fish catches on the Lakes Sarisu (Nakhalikhchala) and Ag-Gol (100 kg)

Years Sarisu (Nakhalikhchala) Ag-Gol 1953 3518 1954 1445 1955 1950 1956 418 400 1957 674 638 On average 1601 207,6 1958 685 418 1959 479 367 1960 100 670 1961 869 600 1962 444 749 On average 515,4 560,8 1963 679 1964 354 678 1965 210 436 1966 308 566 1967 566 596 On average 287 582,8 1968 557 456 1969 868 444 1970 763 695 1971 604 741 1972 1422 528 On average 842,8 572,8 1991 741 1009 1992 289 144 1993 159 168 1994 84 77 1995 180 92 On average 290,6 290,8 1996 33 39 1998 90 46 1999 150 100 On average 91,0 64,3

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Attachment 9

Species and volumes of fish caught in the Lake Ag-Gol (100 kg)

Fish species Ag-Gol 1996-1999 1981-1985 1991-1995 1996-1999 Cyprinus carpio 7.7 21,9 33,6 14,7 Silurus glanis 12.3 47,4 52,2 0,3

Stizostedion lucioperca --- 4,0 --- 8,0

Abramis braama orientalis ------2,0 Rutilus rutilus caspicus 41.3 5.6 94,0 58,3 Esox lucius 23.7 240,4 110,2 1,0

Hypophthalmichtys molitrx ---

Aspius aspius ------

Tinca tinca ------

Carassiuscarassius 23.5 --- 30,2 Other 23.8 4,0 Total 132 518 331 76,3

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Attachment 10

Number of wetland birds at the Ag-Gol Lake

Bird species Years 1997 1998 1999 2000 2001 Anas platyrhynchos 15300 12500 13000 13500 14000 Anas strepera 2800 1700 1800 2700 2800 Anas clypeata 4300 2300 2400 2800 3000 Anas acuta 4100 1200 1300 1400 1600 Anaspenelope 1550 740 750 820 920 Anas crecca 17000 7500 7600 8500 9000 Tadorna tadorna 3850 580 600 650 750 Tadornaferruginea 4380 1200 1300 1400 1470 Anser anser 3600 3200 3300 3500 1600

Anser erythropus 10500 --- ___----- Aythyafuligula 7200 1300 1400 1600 1700 Phoenicopterus roseus 10500 220 270 Aythia marila 2540 420 470 750 1100 Aythiaferina 8670 1100 1200 1300 1400 Aythia nyroca 1540 470 520 640 730 Netta rufina 4500 2300 2400 2600 2800 Cygnus cygnus 1270 570 610 830 870 Cygnus olor 530 210 230 380 310 Fulicaatra 37500 17500 26500 28500 31000 Otis tetrax 4500 ------Chettusia gregaria 6200 450 470 530 680

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Attachment 11

Fish species inhabiting the Lake Nakhalikhchala (Sarisu)

Species According to studies According to studies According to studies 1939-1962 1967-1972 1980-1993 3. Cyprinus + + + carpio

Stizostedion lucioperca + + Silurus glanis + + + Abramis braamaorientalis + + + Esox lucius + + + Rutilus rutzlus caspicus + + + Aspius aspius + + Pelecus cultratus + + Abramis sapa + --- + Sardinus erythrophtalmus + --- + Blicca bjoerena + + + Tinca tinca + + + Barbus cyri + + + Acipenser stellatus + Aczipenser nudiventris + Acipenzer guldenstadte + persicus Leucaspius delineatus + + + Alburnus charusini --- + + hohenacheri Cobitis taenia + + + Pomatoschistus caucasicus + + + Gambuzia affinis affinis + + + carassiuscarassius ------+ Percafluviatilis --- + hypophthalmichtys molitrx ------+ Pungitiusplatigaster + + + T[ otal 21 16 20

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Attachment 12

Results of the bird counts at the Sarisu Lake, winter 1996

Species Total estimate Great grested grebe (Podiceps cristatus) 1 Black-necked grebe (Podiceps nigricollis) 662 Little grebe (Tachybaprus ruficollis) 429 Dalmatian pelican (Pelecanus crispus) 12 Pygmy cormorant (Phalacrocoraxpygmaeus) 1158 Bittern (Butaurus stellaris) 14 Great white egret (Egretta alba) 1 Mute swan (Cygnus olor) 22 Whooper swan (Cygnus Cygnus) 13 Greyla goose (Anser anser) 700 White fronted goose (Anser albifrons) 40 'White fronts Sp. 41 Mallard (Anas platyrhynchos) 933 Gadwall (Anas strepera) 1114 Wigeon (Anas Penelope) 3100 Teal (Anas crecca) 27661 Shoveler (Anas clypeata) 550 Shelduck (Tadorna tadorna) 2 Ruddy shelduck (Tadornaferruginea) 55 Red-crested pochard (Netta rufina) 151250 Tufted duck (Aythyafuligula) 80 Pochard (Aythyaferina) 97250 White-headed duck (Oxyura leucocephala) I Marsh harrier (Circus aerugiosus) 2 Little bustard (Tetrax tetrax) 586 Water rail (Rallus aguaticus) 2 Purple gallinula (Porphyrioporphyrio) 114 Moorhen (Gallinula chloropus) I Coot (Fulica atra) 24826 Curlew (Nuimenius arguata) 181 Redshank (Trigna tetanus) 229 White-tailed plover (Chettusia leucura) 3 Total 311034

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Attachment 13

Species and volumes of fish caught in the Sarisu Lake (100 kg)

Species Sarisu (Nakhalikhchala) 1938-1942 1967-1972 1981-1985 1991-1995 1996-1999 Cyprinus carpio 4462 345,5 62,5 4,2 7,7 Silurus glanis 496 120,6 90,2 37,4 12,3 Stizostedion 456 55,3 11,0 3,8 lucioperca Abramis braama 238 61,6 4,0 orientalis Rutilus rutilus 110 123 131 60,6 41,3 caspicus Esox lucius 229 196 511,2 141,4 23,7

Hypophthalmichtys ------molitrx

Aspius aspius ------

Tinca tinca --- 1,4

Carassiuscarassius ------2,2 23,5

Other 38 ------23,8 Total 5582 902 811 250 132

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Attachment 14

BIRD SPECIES AND NUMBERS ON THE LAKES AROUND THE KURA RIVER (DEC 1997 AND JAN 1998) [10]

Species Biotopes Deep Shallow Reeds Podiceps ruficollis 70 14 + P.nigricollis 12 4 + P.cristatus 48 33 + Pelecanusonocrotalus* 8 33 + P.crispus* 8 --- + Phalacrocoraxcarbo 83 8 18 Ph.pygmaeus* 40 32 13 Ardea cinerea 4 __ Egretta alba 53 __ E. garzetta 48 Botaurus stellaris 14 --- Nycticorax nycticorax 6 + Phoenicopterusroseus* 4 --- Cygnus olor* 18 4 --- C.Cygnus 4 13 Anser anser 80 40 A.albifrons 42 16 A.erythropus* 14 4 __ Tadornaferruginea 106 158 T.tadorna 92 112 ___ Anasplatyrhynchos 2800 1160 _ A.Penelope 360 148 --- A.crecca 1800 665 __- A.clypeata 930 200 --- A.strepera 400 250 A.acuta 940 240 __ Marmaronettaandustriostris* 8 2 A.gurguedula 330 164 Netta rufina 381 183 Aythyaferina 120 16 --- A.nyroca* 130 14 A fuligula 48 21 --- A.marila 63 33 --- Bucephala clangula 93 42 Oxyura leucocephala* 7 ------Mergus merganser 130 M.serrator 165 _ --- M.albellus 43 32 Circus aeruginosus + Porzanaporzana + Rallus aguaticus +

Gallinula chloropus --- _--- 1300

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Attachment 15 Bibliography

1. H. Aliyev, Kh. Hasanov "Protecting the Nature", 1993 2. Status of Environmental Protection in the Azerbaijan Republic. UNDP, 1997 3. Red Book of the Azerbaijan Soviet Socialist Republic, 1989 4. G. Hasanov "State reserves of Azerbaijan", 1987 5. State Report on the Status of Environment and Nature Protection Activities in the Azerbaijan Republic, 1993 6. "Azerbaijan", 1998 7. A. Alekperov "Amphibians and Reptiles of Azerbaijan", 1978 8. A. Mansurov, M. Salmanov "Ecology of Kur River", 1996 9. D. Tuayev "Catalog of Birds of Azerbaijan", 1996 10. A. Qasimov "Biology of Lakes Around Kur River", 2001 11. D. Tuayev, V. Vasilyev "Profile of Ornitho-Faunaof Major Water Basins and SurroundingAreas in Kur-Araz Lowland", 1972 12. D.Reynter, T.Aavak and E.Sultanov. Conservation of Wetland reserves in Azerbaijan, 1996. 13. 0. Abdurakhmanov "Freshwater Fish of Azerbaijan", 1962 14. P. Aga-zade, M. Jabbarov and S. Chemyavskaya "Contribution of State Reserves of Azerbaijan", Second Edition, 1997 (V. Vinogradov "Biological Resources of Wetland Hunting Areas of Mil Steppe: Productivity and Prospects of Economic Use) 15. M. Akhmedov "Fish and Biological Basis of Fisheries in Changing Conditions of Lakes in Kur- Araz Lowland: Adjiqabul, Aqqel, Naxalixchala", dissertation, 1966 16. Fauna of Azerbaijan, Volume VI. Birds (Non Passeriformes), 1977 17. I. Safarov, V. Olisayev "Forests of Caucasus", 1991 18. R. Beme, A. Kuznetsov "Birds of Open and Near-Sea Areas of the USSR", 1983 19. A. Ivanov "Catalog of Birds of the USSR", 1976

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B. 2 RARE AND ENDANGERED SPECIES IN THE NORTHERN PROJECT ZONE1

Mammals

Caucasian wild cat

Birds

Black francolin Black grouse Black-winged pratincole Black-winged stilt Dalmatian pelican Eurasian spoonbill Great bustard Imperial eagle Pallid harrier Pied avocet Purple swamphen Pygmy cormorant Sociable plover Steppe eagle White-fronted goose White-headed duck White pelican Whooper swan

Reptiles

Spur-thighed tortoise

Amphibians

Caucasian common toad

Fishes

Brown trout Caspian lamprey Pike perch White-eyed bream

Source: CES Consulting Engineers Salzgitter GmbH. Environmental assessment and monitoring in the project areas of the Samur-Aspheron Canal and Main Mill Mugan Collector Drain. Final Report, March 2000 78 01/03/03 Draft

B. 3 LIST OF ENGLISH AND LATIN SPECIES NAMES

Common English Name Latin Name

FLORA

Alexandrian laurel DanaeY racemosa Almond spp. Amygdalus Artemisia spp. Artemisia spp Ash spp. Fraxinus spp

Barberry spp. Berberis spp Beech spp. Fagus spp Bernuda-grass Cynodon dactylon Biberstein mountain tulip Tulipa biebersteiniana Black poplar Populus nigra Bramble spp. Rubus spp Bulbous meadow grass Poa bulbosa L. Bulrush spp. Scirpus spp Bur-medick Medicago minima Buttercup spp. Ranunculus spp

Camel prickle Alhagipseudoalhagi Caper bush Capparisspinosa Cattail spp. Typha spp Caucasian hombeam Carpinus caucasica Caucasian pine Pinus kochiana Caucasian rhododendron Rhododendron caucasicum Chestnut-leaved oak Quercus castaneifolia Common bladderwort Utriculariavulgaris Common glasswort Salicorniaeuropaea Common reed Phragmites australis Couch-grass Triticum repens Black hawthom Crataegus melanocarpa

Curly pondweed Potamogeton crispus

Downy oak Quercus Pubescens

Elm spp Ulmus spp English yew Taxus baccata

Feather grass spp. Stipa spp Fennel pondweed Potamogeton pectinatus Fescue spp Festuca spp Field maple Acer campestre Fir spp. Abies spp

Galingale Cyperus lancastriensis Georgian oak Quercus iberica Glabrose liquonce Glycyrrhiza glabra Glasswort spp. Salicornia spp Grass spp. Poa spp Gray poplar Populus hybrida Greenbriar spp. Smilax excelsa 79 01/03/03 Draft

Hazel Corullus avellana Hawthorn Crataegusmonogyna Hombeam Carpinusbetulus

Ivy Hedera helix

Juniper spp. Juniperus spp

Kochia spp. Kochia spp

Lady orchid Orchispurpurea Linden spp. Tilia spp Long-thorned oak Quercus pedunculiflora Lotus Nelumbo nucifera

Maple spp. Acer spp Medlar Mespilus germanica Milk thistle Silybum marianus Milk vetch spp. Astragalus spp Mint spp. Mentha spp Mugwort Artemisia vulgaris Mulberry spp. Morus spp

Oak spp. Quercus spp Oleaster Eleagnus angustifolia Orache spp. Atriplex spp Oriental beech Fagus orientalis Oriental oak Quercus variabilis Oriental plane Platanus orientalis

Pedunculate oak Quercus robur Persian parrotia ParrotiaPersica Pistachlo Pistacia mutica Pine spp. Pinus spp Pomegranate Punica granatum Pondweed spp. Potamogeton spp Poplar spp. Populus spp Pnckly thrift spp. Acanthalimon spp Purple loosestrife Lythrum salicaria Reed spp. Phragmites spp Rose spp. Rosa spp

Sainfoin spp. Onobrychis spp Saltwort spp. Salsola spp (S. nodulosa, S. ericoides, S. denroides, etc.) Seablight Suaeda maritima Sea club rush Bolboschoenus maritimus (L) Palla Sea lavender Limonium carolinianum Shining pondweed Potamogeton lucens Smooth-leaved elm Ulmusfoliacea Spiny Paliurusspina-christi Spruce spp. Picea spp Stranglewort Cynanchum acutum Sun spurge Euphorbia helioscopia Sweet chestnut Castaneasativa 80 01/03/03 Draft

Tamarisk spp. Tamarix spp

Vardim oak Quercus longipes

Wall barley Hordeum leporinum Water cress Rorippa nasturtium-aquaticum Water-milfoil Myriophyllum spicatum Water-pepper Polygonum hydropiper White poplar Populus alba White waterlily Nymphaea alba Whorled leaf water rnilfoil Myriophyllum verticcaliatum Wild jasmine Jasminumfruticans Willow spp. Salix spp Wing nut Pterocaryapterocarpa Woodland grape Vitis sylvestris Wormwood Artemisia absinthium

Yellow bluestem Botriochloa ischaemurn

FAUNA

Birds

American black vulture Coragyps atratus

Bam swallow Hirundo rustica Bearded tit Panurusbiarmicus Bittem Botaurusstellaris Black-bellied sandgrouse Pterocles orientalis Black-billed magpie Picapica Black-crowned night-heron Nycticorax nycticorax Black francolin Francolinusfrancolinus Black grouse Lyrurus tetrix Black-headed gull Larus ridibundus Black-necked grebe Podiceps nigricollis Black stork Ciconia nigra Black-tailed godwit Limosa limosa Black tern Chlidonias nigra Black vulture Aegypius monachus Black-winged pratmcole Glareola nordmanni Black-winged stilt Himantopus himantopus Blue-cheeked bee-eater Merops superciliosus Blue tit Paruscaeruleus Broad-billed Sandpiper Limicolafalcinellus Brown Shrike Lanius cristatus

Calandra lark Melanocorypha calandra Carrion crow Corvus corone Cattle egret Bubulcus ibis Caucasian black grouse Tetrao mlokosiewiczi Caucasian snowcock Tetraogallus caucasiacus Chaffinch Fringillacoelebs Chukar Alectoris chukar 81 01/03/03 Draft

Collared pratincole Glareolapratincola Common blackbird Turdus merula Common buzzard Buteo buteo Common coot Fulica atra Common crane Grus grus Common goldeneye Bucephala clangula Common cuckoo Cuculus canorus Common greenshank Tringa nebularia Common kingfisher Alcedo atthis Common pheasant Phasianuscolchicus Common pochard Aythyaferina Common redshank Tringa totanus Conmmon sandpiper Tringa hypoleucos Common shelduck Tadorna tadorna Conmnon snipe Gallinagogallinago Common swift Apus apus Common wood-pigeon Columba palumbus Corrnorants Phalacrocoracidae Corn bunting Emberiza calandra Comcrake Crex crex Crested lark Galeridacristata Curlew Numenius arquata Curlew sandpiper Calidrisferruginea

Dalmatian pelican Pelecanus crispus Demoiselle crane Anthropoides virgo Dunlin Calidrisalpina

Egret spp. Egretta spp Egyptian vulture Neophron percnopterus Eurasian bee-eater Merops apiaster Eurasian kestrel Falco tinnunculus Eurasian hobby Falco subbuteo Eurasian hoopoe Upupa epops Eurasian jackdaw Corvus monedula Eurasian oystercatcher Haematopus ostralegus Eurasian pygrny owl Glaucidiumpasserinum European robin Erithacus rubecula Eurasian scops owl Otus scops Eurasian sparrowhawk Accipiter nisus Eurasian spoonbill Platalealeucorodia European turtle-dove Streptopelia turtur Eurasian wigeon Anas Penelope Eurasian woodcock Scolopax rusticola European roller Coraciasgarrulus

Ferruginous duck Aythya nyroca Fieldfare Turdus pilaris Finsch's wheatear Oenanthefinschii

Gadwall Anas strepera Garganey Anas querquedula Glossy ibis Plegadisfalcinellus Golden eagle Aquila chrysaetos Goldfinch Cardueliscarduelis 82 01/03/03 Draft Goosander Mergus merganser Graylag goose Anser anser Great bittem Botaurus stellaris Great black-headed gull Larus ichthyaetus Great bustard Otis tetrax Great cornorant Phalacrocoraxcarbo Great crested grebe Podiceps cristatus Greater flamingo Phoenicopterusroseus Greater scaup Aythya marila Great reed warbler Acrocephalus arundinaceus Great spotted woodpecker Dendrocopos major Great tit Parus major Great white egret Egretta alba Green sandpiper Tringa ochropus Green-winged teal Anas crecca Grebes Podicipedidae Grey heron Ardea cinerea Grey partridge Perdixperdix Griffon Gypsfulvus Gull spp. Larus spp Gull-billed tern Gelochelidon nilotica

Heron spp. Ardea spp Herring gull Larus argentatus House sparrow Passerdomesticus House-martin Delichon urbica

Ibises Threskiornithidae Imperial eagle Aquila heliaca Isabelline wheatear Oenanthe isabellina

Jack snipe Lymnocryptes minimus

Lanrnergeier Gypaetus barbatus Lark Alaudidae Lesser grey shrike Lanius minor Lesser kestrel Falco naumanni Lesser short-toed lark Calandrellarufescens Lesser spotted eagle Aquilapomarina Lesser spotted woodpecker Dendrocopos minor Lesser white-fronted goose Anser erythropus Little bittern Ixobrychus minutus Little bustard Tetrax tetrax Little crake Porzanaparva Little egret Egretta garzetta Little grebe Podiceps ruficollis Little gull Larus minutus Little owl Athene noctua Little nnged plover Charadriusdubius Little stint Calidrisminutes Little Tern Sterna albifrons Long-legged buzzard Buteo rufinus

Mallard Anas platyrhynchos Marbled teal Marmaronetta angustirostris 83 01/03/03 Draft Marsh harrer Circus aeruginosus Marsh sandpiper Tringa stagnatilis Marsh tit Paruspalustris Middle spotted woodpecker Dendrocopos medius Montagu's harrier Circuspygargus Moorhen Gallinula chloropus Mute swan Cygnus olor

Nightingale Luscinia megarhynchos brehm Northern harrier Circus cyaneus Northern lapwing Vanellus vanellus Northern pintail Anas acuta Northern shrike Lanius excubitor Northem shoveler Anas clypeata Northern wheatear Oenanthe oenanthe

Osprey Pandionhaliaetus

Pallid harrer Circus macrourus Partridge Alectoris kakelik Peregrine falcon Falcoperegrinus Pheasant spp. Phasianusspp Pied avocet Recurvirostraavosetta Purple heron Ardea purpurea Purple swamphen Porphyrioporphyrio Pygmy cormorant Phalacrocoraxpygmaeus

Quail Coturnix coturnix

Red-billed chough Pyrrhocoraxpyrrhocorax Red-breasted goose Branta ruficollis Red-breasted merganser Mergus serrator Red-capped lark Calandrellacinerea Red-crested pochard Netta rufina Red-necked phalarope Phalaropuslobatus Reed bunting Emberiza schoeniclus Rock bunting Emberiza cia Rock dove Columba livia Rock sparrow Petroniapetronia Roller Coraciasgarrulus Rook Corvusfrugilegus Rosy starling Pastorroseus Ruddy shelduck Tadornaferruginea Ruff Philomnachuspugnax Rufous bushchat Erythropygia galactotes

Saker falcon Falco cherrug Sand martin Riparia riparia See-see partridge Ammoperdix griseogularis Sedge warbler Acrocephalus schoenobaenus Short-eared owl Asioflamineus Skylark Alanda arvensis Slender-billed gull Larus genei Smew Mergus albellus Sociable plover Chettusia gregaria 84 01/03/03 Draft

Spotted crake Porzanaporzana Spotted eagle Aquila clanga Spotted flycatcher Muscicapa striata Spruce siskin Spinus spinus Squacco heron Ardeola ralloides Starling Sturnus vulgaris Steppe eagle Aquila nipalensis Stone curlew Burhinus oedicnemus

Tawny eagle Aquila rapax Temminck's stint Calidris temminchii Terek sandpiper Tringa cinerea Tree sparrow Passermontanus Trumpeter finch Bucanetes githagineus Tufted duck Aythyafuligula

Water rail Rallus aquaticus Whiskered tern Chlidonias hybrida White-fronted goose Anser albifrons White-headed duck Oxyura leucocephala White pelican Pelecanusonocrotalus White stork Ciconia ciconia White-tailed eagle HaliacetusAlbicilla White-tailed plover Chettusia leucura White-throated robin Iraniagutturalis White wagtail Motacilla alba White-winged black tern Chlidoniasleucoptera Whooper swan Cygnus cygnus Winter wren Troglodytes troglodytes

Yellowhanimer Emberiza citrinella Yellow wagtail Motacillaflava

Mammals

Brown bear Ursus arctos Brown hare Lepus europaeus Brown rat Rattus norvegicus

Caucasian hamster Mesocricetus auratus Caucasian leopard Pantherapardus ciscaucasia Caucasian red deer Cervus elaphus maral Caucasian wild cat Felis silvestris caucasica Chamois spp. Rupicapraspp Common wood mouse Apodemus sylvaticus Coypu Myocastor coypus

East Caucasian tur Capra cylindricornis Eurasian badger Meles meles Eurasian otter Lutra lutra European wild cat Felis silvestris schreber

Goldenjackal Canis aureus Grey wolf Canis lupus 85 01/03/03 Draft Gunther's vole Mzcrotussocialis

Hare spp. Lepus spp House mouse Mus musculus

Lynx Felis lynx

Marbled polecat Vormela peregusna Mouflon Ovis musimon

Persian gazelle Gazella sulgutturosa Porcupine spp. Hystrixindica Pygmy white-toothed shrew Suncus etruscus

Red fox Vulpes vulpes Red-tail sanderling Meriones erythrourus Reed cat Felis chaus Roe deer Capreolus capreolus

Stone marten Martesfoina Striped field mouse Apodemus agrarius Stnped hyena Hyaena hyaena

West Caucasian tur Capra caucasica Wild boar Sus scrofa Wild goat Capra aegagrus

Reptiles and amphibians

Armenian viper Vipera raddei Balkan green lizard Lacerta trilineata Blunt-nosed viper Vipera lebetina

Caspian green lizard Lacerta strigata Cat snake Telescopusfallax Caucasian common toad Bufo bufo verrucosissima Caucasian parsley frog Pelodytes caucasicus Caucasian salamander Mertensiella caucasica Caucasian viper Vipera kaznokovi Common tree frog Hyla arboreaschelkownikowi

Dahl's whip snake Coluber najadum Dione snake Elaphe dione

European grass snake Natrix natrix European pond terrapin Emys orbicularis European tree frog Hyla arboreasavignyi European water snake Natrix tesselata

Freshwater terrapin spp. Clemmys caspica

Gecko Gymnodactylus caspius Green toad Bufo viridis

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Large whip snake Coluberjugularis

Marsh frog Rana ridibunda

Scheltopusik Ophisaurusapodus Slow worm Anguisfragilis Snake-eyed lizard Ophisops elegans Spur-thighed tortoise Testudo graeca

Western boa Eryxjaculus

Fish

Asp Aspius aspius

Barbel spp. Barbus brachycephalus Belica Leucaspius delineatus Blackbrow Acanthalburnus microlepis Bleak spp. Pelecus cultratus Bream Abramis brama orientalis Brown trout Salmo trutta linnaeus Bulg Pungitiusplatygaster

Caspian lamprey Caspiomyzon wagneri Caspian roach Rutilus rutilus caspicus Chanari barbel Barbus capito Chub Leuciscus cephalus Common carp Cyprinus carpio Common crab Cancerpagurus Crucian carp Carassiuscarassius

Kua sturgeon Acipenser guldenstadtipersicus Kura barbel Barbus lacerta cyri

Mosquito fish Gambusia affinis affinis Murtsa barbel Barbus mursa

North Caucasian bleak Alburnus charusini Northern pike Esox lucius

Pike perch Stizostedion lucioperca

Redfin perch Percafluviatilis Rudd Scardiniuserythrophthalmus

Silver carp Hypophthalmichthys molitrix Spined loach Cobitis taenia Star sturgeon Acipenser stellatus Sturgeon spp. Acipenser nudiventris

Tench Tinca tinca Transcaucasian goby Pomatoschistus caucasicus

Wels Catfish Silurus glanis 87 01/03/03 Draft

White bream Blicca bioerkna White-eyed bream Abramis sapa bergi

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B. 4 RARE AND ENDANGERED SPECIES OF AZERBAIJAN'

Mammals

23 Common Name Species ARDB IUCN

Mediterranean Horseshoe Bat Rhinolophus euriale + VU Greater Horseshoe Bat Rhinolophusferrumequinum Lr/cd Lesser Horseshoe Bat Rhinolophus hipposideros VU Mehely's Horseshoe Bat Rhinolophus mehelyi VU Barbastelle bat Barbastellabarbastellus VU Bechstein's bat Myotis bechsteini VU Geoffroy's Bat Myotis emarginatus VU Lesser Noctule Bat Nyctalus leiseri Lr/nt European Free-Tailed bat Tadarida teniotis +, U Schreiber's Long-Fingered Bat Miniopterus schreibersi +, U Lr/nt Caspian Tiger Pantheratigris virgata +, U Striped Hyaena Hyaena hyaena +, U Eurasian Lynx Felis lyns orientalis + Leopard Felispardus tullianus +, U Wild Cat Felis libica caudata + Red Manul Otocolobus manulferrugineous+, U Lr/nt Caspian Seal Phoca caspica VU Marbled Polecat Vormela peregusna +, U Persian Gazelle Gazella subgutturosa +, U Lr/nt Chamois Rupicapra rupicapracaucasica + VU Wild Goat Capraaegagrus aegagrus +, U VU E. Caucasian Tur Capracylindricornis VU Argali Ovis ammon +, U VU Mouflon Ovis orientalisgmelinii VU Long-tailed Marmot Marmota caudata Lr/nt Persian Squirrel Sciurus anomalus Lr/nt Armenian Birch Mouse Sicista armenica CR N. Birch Mouse Sicista betulina Lr/nt Calomyscus urartensis' Lr/nt Snow Vole Chionomys nivalis Lr/nt Harvest Mouse Micromys minutus Lr/nt Fat Dormouse Myoxus glis Lr/nt

Reproduced from Chemonics International Inc.: Biodiversity Assessment for Azerbaijan Task Order under the Biodiversity & Sustainable Forestry IQC (BIOFOR), Febniary 2000 (available on website http://www biofor com/documents/Azerbaijan-Biodiversity-Report.pdf). 2 Red Book of Azerbaijan 31 = Indeterminate, R= Rare; En = Endangered; En/Ex = Endangered/Extinct Lr/nt Lower threat/near threatened, Lr/cd Lower threat/conservation dependent, VWi Vulnerable; CR Cntically endangered, EN Endangered, DD Data deficient; NE Not evaluated 89 01/03/03 Draft

Birds

Common Name Species ARDB1 IUCN

White Pelican Pelecanus onocrotalus +, U Dalmatian Pelican Pelecanus crispus +, U VU Eurasian Spoonbill Platalealeucorodia + Pygmy Cornorant Phalacrocoraxpygmaeus Lr/nt Black Stork Ciconia nigra U Greater Flamingo Phoenicopterus roseus +, U Mute Swan Cygnus olor + Bewick's Swan Cygnus bewickii +, U Red-breasted Goose Branta ruficollis +, U Ferruginous Duck Aythya nyroca VU Marbled Teal Marmaronettaangustirostris +, U VU White-headed Duck Oxyura leucocephala VU Osprey Pandion haliaetus +, U White-tailed eagle Haliaeetusalbicilla +, U Lr/nt Northern Goshawk Accipiter gentilis + Shikra Accipiter badius + Steppe Eagle Aquila rapax +, U Impenal eagle Aquila heliaca +,U VU Golden eagle Aquila chrysaetos +, U Lammergeier Gypaetus barbatus +, U Black (Monk) Vulture Aegypius monachus Lr/nt Pallid harrier Circus macrourus Lr/nt Short-toed Eagle Circaetusgallicus +, U Saker Falcon Falco cherrug +, U Peregrine Falcon Falco peregrinus +, U Lesser Kestrel Falco naumanni VU Caspian Snowcock Tetraogallus caspius +, U Caucasian Snowcock Tetraogallus caucasicus + Black Francolin Francolinusfrancolinus +, U Pheasant Phasianuscolchicus + Caucasian Black Grouse Tetrao mlokosiwiczi +, U Lr/nt Purple Gallinule Porphyrioporphyrio +, U Comcrake Crex crex VU Great Bustard Otis tarda +, U VU Little Bustard Tetrax tetrax +, U Lr/nt Houbara Bustard Chlamydotis undulata +, U Sociable Plover Chettusia gregaria +, U White-tailed Plover Vanellus leucurus + Black-winged Pratincole Glareola nordmanni + Black-bellied Sandgrouse Pteroclesorientalis + White-throated Robin Iraniagutturalis + Sombre Tit Paruslugubris + Trumpeter Finch Rhodopechys gitadineus +

Reptiles

Species ARDB' IUCN

'I = Indeterminate; R= Rare; En = Endangered; En/Ex = Endangered/Extinct Lr/nt Lower threat/near threatened; Lr/cd Lower threat/conservation dependent; VU Vulnerable, CR Critically endangered, EN Endangered; DD Data deficient, NE Not evaluated 90 01/03/03 Draft

Testudo graeca iberia +,U VU Testudo horsfieldii VU Emys orbicularis Lr/nt Agama ruderata +, U Phrynocephalushelioscopus U Mabuya aruata + Abiepharus bivittatus + Elaphe longissima U Elaphe situla DD Natrix megalocephala VU Phyncolamus melanocephalus U Vipera kaznakovi EN Vipera xanthina U

Amphibians

Species ARDB IUCN

Triturus vulgaris + Triturus cristatus + Pelobates syriacus U Pelodytes caucasica U Bufo verrucosissimus + Hyla arborea Lr/nt

Fish

Species ARDB IUCN

Acipenser guldenstaedti EN Acipenser nudiventris EN Acipenserpersicus EN Acipenser stellatus EN Huso huso EN Alosa pontica DD Clupeonella cultriventris DD Barbus cyclolepis DD Caspiomyson wagneri + Salmofario + Abramis sapa bergi + Pelecus cultratus + DD Lucioperca marine + Rutilusfrisii DD Sabanjewia aurata DD Stenodus leucichthys leucichthys EN Stenodus leucichthys DD Syngnathus nigrolineatus DD Stizostedion marinum DD

1I = Indeterminate, R = Rare; En = Endangered, En/Ex Endangered/Extinct Lr/nt Lower threat/near threatened; Lr/cd Lower threat/conservation dependent; VWi Vulnerable, CR Crtically endangered; EN Endangered, DD Data deficient, NE Not evaluated 91 01/03/03 Draft

Azerbaijan Species on IUCN Red List of Threatened Plants

Family Species Status'

Alliaceae Nectaroscordum tripedale I Nectaroscordum dioscoridis I Orchidaceae Ophrys caucasica I Ophrys oestrifa I Himantoglossumformosum I Cruciferae Pseudoresicariadigitata I Labiatae Stachys talyschensis En/Ex Rosaceae Pyrus raddeana I Umbelliferae Smyrniopsis aucheri I Compositae Cladochaetacandidissimus I Steptorhamphus czerepanovii I Leguminosae Vavilova formosa I Astralagus bakuensis I Graminae Triticum araraticum I Secale vavilovii I Stipa pellita I Buxaceae Buxus colchica I Polygonaceae Calligonum bakuense I Liliaceae Fritillariagrandiflora I Lilium ledebourii I Gentianaceae Gentiana lagodechiana R Iridaceae Iris acutiloba En Iris cam illae I Iris iberica I Hyacinthaceae Ornithogalum arcuatum I Ornithogalum hyrcanum I Pinaceae Pinus brutia var. eldarica R Primulaceae Primulajuliae I

I = Indeterminate; R Rare; En = Endangered, En/Ex = Endangered/Extinct

92 01/03/03 Draft ANNEX C

WATER QUALITY AND SOIL CONDITIONS

DIAGNOSTIC STUDY IN THE PROJECT AREAS SELECTED FOR THE IRRIGATION NETWORK MODERNISATION PROJECT IN AZERBAIJAN

ENVIRONMENTAL ASSESSMENT

Report Prepared by Dr Mammed Yakhya Asadov, Local Expert on the EA Team

TABLE OF CONTENTS

ABBREVIATIONS AND ACRONYMS

INTRODUCTION

1 BRIEF INFORMATION ON LAND AND WATER RESOURCES IN AZERBAIJAN AND THEIR USE

2 INFORMATION ABOUT NATURAL-CLIMATIC, HYDRO-GEOLOGICAL AND RECLAMATION CONDITIONS OF PROJECT AREAS

2.1 "Shanhk" Farm, Agjabedi Distnct 2.2 "Cholbeshdall" Farm, Sabirabad District 2.3 "Godakqobu" Farm, Zardab District 2.4 "Borsunlu" Farm, Goranboy District 2.5 "Qahramanli" Farm, Beylaqan District 2.6 "Yeni Hayat" Farm, Quba Distnct

3 QUANTITY AND QUALITY OF SURFACE AND SUBSURFACE WATERS IN THE PROJECT AREAS

4 DISTRIBUTION OF WATER AT THE HYDRO-ENGINEERING COMPLEXES THAT SERVICE THE AREAS UNDER STUDY I

4.1 Distribution of Water at the Mmgechevir Water Reservoir 4.2 Mil-Mugan Hydro-Engineering Complex 4.3 Bahramtapa Hydro-Engineering Complex

5. ENVIRONMENTAL WATER FLOWS

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ABBREVIATIONS AND ACRONYMS

1. MENR Ministry of Ecology and Natural Resources

2. CIWR Committee for Irrigation and Water Resources

3. SLCC State Land and Cartography Committee

4. SSC State Statistics Committee

5. ASRIHEI Azerbaijan Scientific-Research Institute for Hydraulic Engineering and Imgation

6. "Azdovsutaslayiha" Azerbaijan State Water Facilities Design Institute

7. ASRIWP Azerbaijan Scientific-Research Institute for Water Problems

8. CRO Chemically required oxygen

9. SS Synthetic surfactant

10. HMXI Hydrogeological Meliorative Service Department

Introduction

Economic constraints that emerged in all sectors of the national economy since Azerbaijan regained its independence in 1991 and entered a transition towards market economy, have also affected the sector of irrigation and water resources. On the other hand, agricultural reforms camed out in our country led to change in the form of ownership over land and to liquidation of kolhozes, sovhozes and other agricultural enterprises that had been active for many years. As a result of these reforms, 14 % of the irrigable lands of the country were left under state ownership, while the remaining 7% and 79% were given to municipalities and for private ownership, respectively. The size of average land plot per farm was 3-114 hectares in the private sector and 126-1,623 hectares in state-owned farms. At the same time, inter-farm irrigation facilities that used to be owned by the agricultural entities that were liquidated as a result of reforms, have deteriorated due to lack of maintenance and are facing the danger of total collapse, including 51,000 kilometers of canals, 24,000 kilometers of collector-drainage system, 68,000 water development facilities and other installations. Based on the Cabinet of Ministers Decree # 43 from March 15, 2000, the Committee for Irrigation and Water Resources has begun taking over those facilities, and this work is now under finalization.

Last year, a certain scale of repair/rehabilitation works was done at those facilities, using allocations from the state budget. A set of urgent measures needs to be taken in order to bring those facilities into a good shape and make them operable. Constraints in the state budget do not allow for full-scale implementation of such works. Therefore, additional sources of financing are sought to make the irrigation and water facilities operable, including inter-farm imgation and drainage networks.

Studies that are funded by a World Bank grant are being carried out to assess technical condition and rehabilitation needs of inter-farm imgation networks at 6 farms in various distncts of the country, as well as that of the main systems, which supply water to those farms.

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The objective of this report is to collect data on quality and volume of water at water sources used for irrigation, hydro-geological condition of soil and other information m order to assess the environmental impact of repair/rehabilitation works to be conducted at farms.

Research, database and archive information of CIWR and its subordinated agencies ASRIHEI, ASRJWP, and "Azdovlatsutaslayiha", as well as that of the MENR, was used during collection of data.

1. BRIEF INFORMATION ON LAND AND WATER RESOURCES OF AZERBAIJAN AND THEIR USE

About half of the whole territory of Azerbaijan, 4.2 million hectares, consists of lands that are suitable for agriculture. Major portion of these lands is located in plain-arid zones of the country that are notable for their warm climate and low amount of precipitation (200-300 nmm a year). Constant irrigation measures need to be taken and the effectiveness of these measures needs to be upgraded in order to produce high and stable agricultural yield on these lands.

At present, there are 1.45 rmillion hectares of land in the country that are supplied with fixed engineering irrigation and collector-drainage networks and are now equipped for imgation. Ninety percent of agncultural product is collected from these irrigated lands only.

Soil and climatic conditions allow for increasing the total size of irrigated lands in Azerbaijan to 3.0-3.5 million hectares. However, scarcity of water resources complicates implementation of this task. At present, average annual shortage of water in the country is 3.7 billion cubic meters, while in low-water years shortage reaches 4.75 billion cubic meters. If we also take into account the required abstractions of water from nvers for fisheries, sanitary and other purposes, the volume of water shortage will be even higher.

A set of reclamation works has been carried out on 609,700 hectares of irrigated land; 281,300 hectares were supplied with open-ditch drainage network, while the remaining 328,400 hectares were provided with closed drainage system (Register on reclamation condition of irrigated lands of the Azerbaijan Republic as of January 1, 2001).

Surface water resources of the country are 32 cubic kilometers. During dry years this volume drops down to 23 cubic kilometers. Only 10 cubic kilometers, or 30% of these water resources originate in the country's own territory, while the remaining portion comes from neighboring countnes.

Considenng Azerbaijan's scarce water resources, it is quite important to use existing water resources efficiently and with thriftiness in order to achieve sustainable development of agriculture under market-economy conditions.

For this purpose, modem irrigation equipment and technologies should be broadly used along with implementation of engineering works at the irrigation canals, which cause losses of irrigation water.

It should be noted that major portion of the inter-farm canals (72% of the total length) are built in trenches, unlined. Therefore, the biggest water losses happen in those inter-farm irrigation networks within imgation canals. Only 9.5% of these are lined concrete canals and gutters. Closed drainage networks account for 18.5%.

The total length of the inter-farm collector-drainage network is 24,800 kilometers, including 6,130 kilometers (24.7%) of open water collectors and 18,720 kilometers (75.3%) of primary drains.

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According to CIWR, by the end of 2001 there were 551 Water Users Associations (WUAs) dealing with issues of water supply covering 46% of the total irrigated area, or about 628,000 hectares of arable lands.

As a result of long-lasting draught dunng recent years, in 1999-2000, 135 water reservoirs of the country with total storage capacity of 21.5 billion cubic meters managed to accumulate only 50% of their total storage capacity, or 24% of their effective storage capacity. These volumes were used for water supply to the population and livestock, and partially for irrigation of agricultural crops. Since 1989, it has been impossible to accumulate full volume of water at the Mingechevir Water Reservoir.

In addition to water shortage, the River Kur was exposed to severe contamnation of water in the tributaries that enter its basin in the territories of Armenia and Georgia. Four hundred and fifty mullion cubic meters of untreated waste waters is discharged annually into the basin of the River Kur from the territories of these countries.

In 1991-1999, 10-16 billion cubic meters of water was taken annually from water reserves; ground water accounted for 0.45-1.40 billion cubic meters of this volume. Water losses at the time of transportation of waters that are taken from natural sources make up 2.74.4 billion cubic meters, or 22- 28% of the overall water abstracted. Agnculture represents the major water user. Thus, of the total water consumed, 56-75% is used for agriculture, 20-25% for industry, while the remaining portion is used to meet demand for household and drinking water.

2. INFORMATION ABOUT NATURAL-CLIMATIC, HYDRO-GEOLOGICAL AND RECLAMATION CONDITIONS OF PROJECT AREAS

2.1. "Shanlik" Farm, Agjabedi District

Agjabedi is located in plains of Mil and Qarabag of the Kur-Araz lowlands. The district has plain landscape. Area's surface was formed by continental-alluvial and sea deposits. Climate is mild warm and dry subtropics. Average monthly temperature is 1.2 - 1.70C in January and 25-260C in August. Amount of annual precipitation is 300-350 mm. River network in the territory of the district is sparse. The River Kur passes along the district's northeast boundary (about 45 kilometers), while the Qarqar River flows in its central part. Upper Qarabag canal flows through the middle of the district. There are saline lakes in the area. The district's territory has gray-grasslands. There are saline lands in the central part of the distnct. The Aqgol State Reserve is located on the east of the district.

The territory of the "Shanlik" Farmn located in the north part of Agjabedi distnct, close to the center. The territory of the farm mainly has a flat shape; the slope of the land surface is 0.0046-0.014 and is changing from northwest towards southeast. Micro, macro and mezo-rehef also can be seen on small areas.

Mechanical composition of the lands is represented by heavy clayey soil in the upper layer and by light clayey soil and sandstone in some places. In the lower layers, clay and sand layers replace each other. As a result of joint impact of soil materials, the following subtypes of gray-grasslands are spread in the area: dark gray-grasslands, gray-grasslands, and light gray-grasslands. Main water- physical indicators of gray-grasslands in shown in Table 2.1 below.

Table 2.1. Main water-physical indicators of soils at the "Shanlik" Farm

Thickness of reported Density, g/cm 3n| Density of solid phase Porosity, % layer, cm Tlcm g

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0-30 1,32 2,40 45,0 30-50 1,44 2,64 45,5 50-75 1,64 2,84 48,6 75-100 1,47 2,63 44,1

Reclamation condition of lands in the area varies. There are sulphate-chloride and chloride salt lands with 0.9-1.56% salinity.

In general, mechanical composition of gray-grasslands is of alluvial kind, the volume of physical clay is 46-80%. The amount of humus in the sowing layer is 2.01-2.42%, and it rapidly declines downward along the profile. Information about mechanical and chemical composition of these soils is given in Table 2.2.

Table 2.2. Mechanical and chemical composition of soils of the "Shanlik" Farm

Depth, Hygroscopic Mechanical Humus Total main As a share of total main cm moisture % composition, % elements elements absorbed % mm (fractions, absorbed %/)) (mg per 100 <0,001 <0,01 g of soil) Ca Mg Na 0-32 8,4 30,16 30,16 55,92 43,78 58,93 38,78 2,29 32-92 8,3 40,76 40,76 81,04 42,29 81,87 16,98 1,15 92-130 8,7 22,72 22,72 59,60 45,34 79,89 19,08 3,53 130-160 8,4 30,20 30,20 78,52 45,25 72,48 25,98 1,54 160-191 8,3 33,28 33,28 58,72 48,60 72,55 23,21 1,24

According to information of HMXI, out of the total 1952-hectare area of the former "Nizamn" kolhoz that is now under the "Shanlik" Farm, 1472 hectares have ground waters at 2-3 meters depth. At the same time, ground waters with level of mineralization at 3-5 g/l covered 1888-hectare area. Of these lands, 1866 hectares were non-saline lands. By the depth and salinity level of ground waters, the reclamation condition of 1392 hectares of irrigated lands was satisfactory. Information about depth and degree of muneralization, as well as about reclamation condition of soil at the "Shanlik" Farm and neighboring areas, is shown on pictures 1-3, based on the 1:10000 scale maps prepared by HMXI.

2.2. "Cholbeshdali" Farm, Sabirabad District

The temtory of Sabirabad district covers the plains of Mugan, Shirvan and partially Mil in the Kur-Araz lowlands. The district's territory also covers the conflux of the Kur and Araz rivers. The district has a semi-dry mild warm semi-desert and steppe-type climate. Average annual air temperature is 12-140C, and 26.50C in July - the warmest month. Annual precipitation is about 300 mm. The Kur and Araz rivers flow through Sabirabad district and interflow on its territory. One part of the 67-sq. m lake Sarisu operating as a hunting area is located in the territory of this district. Irrigation canals (Mursali, Sabir etc.), and Main Shirvan Collector go through the north part of the district. Collectors along the River Kur originated from the territory of this distnct. Gray-grasslands are widely spread in the district area.

The "Cholbeshdali" Farm (former "Azerbaijan" kolhoz) is located in the south-east part of North Mugan. The farms total area is 3010 hectares, including 2133 hectares of irrigated land. The territory of the farm mainly has a flat shape; the slope of the land surface is 0.0046-0.01 and is changing from north-west towards south east. The farm's lands are irngated through Sabir and Gumush canals that are fed by the River Kur and Mursali and take water from the Bahramtapa hydro-engineering complex on the River Araz. During low-water periods in the Araz River, the water to Sabir canal is pumped from the River Kur. The length of inter-farm canals on the imgated lands of the farm is

97 01/03/03 Draft approximately 90 km; about half of them are covered canals made of concrete. Primary open drains with total length of 19.7 kilometers and water collectors with total length of 29.3 kilometers were built up in the territory of the farms. Wheat, cotton, forage and vegetables are the main crops cultivated on the territory of the "Cholbeshdall" Farm.

According to information from HMXI, out of the total 1993-hectare area of the former "Azerbaijan" kolhoz that is now under the "Cholbeshdali" Farm, 597 hectares have ground waters at the depth of 1.5-2.0 meters, while 1204 hectares have ground waters at the depth of 2.0-3.0 meters. At the same time, ground waters with level of mineralization at 1-3 g/l are spread on 651 hectares, while ground waters with level of mineralization at 3-5 g/l and above 5g/l cover accordingly 1190-hectare and 147-hectare land plots; 1882 hectares of these lands are non-saline lands. By the depth and salinity level of ground waters, the reclamation condition of 1691 hectares of irrigated lands was satisfactory. Lands with different extent of sulfate-chloride type of salinity cover about 300 hectares of the farn's territory. The amount of solid residue in these lands reaches 0.8- 1.6%. In the farm's territory, the density of soils in the upper 1-meter layer is 1.36 g/cubic cm., density of solid phase is 2.80 g/cubic cm, and the field water storage capacity limit is 43.4%. Information about depth and degree of mineralization of ground waters, as well as about reclamation condition of soil at the "Cholbesdali" Farm and neighboring areas, is shown on maps 4-6.

2.3. "Godakqobu" Farm, Zardab District

Zardab district is located on the south-west of the Shirvan plain. The district's area consists of plains, and its main part locates below the sea level. The district has a climate with warm summer and mild winter. The amount of precipitation is low the level of evaporation is high. Average annual air temperature is 14-14.50C. The warmest month is July (average temperature is 26-27 0C), while the coldest month is January (average temperature is 1,2-1,30C). The amount of annual precipitation is 258- 341 mm. The fewest rainfalls happen in summer, while the largest amount of rainfalls appears in spring and fall seasons. The River Kur flows along the south and south-west borders of the district. Main Shirvan collector and Lower Shirvan collector pass through the territory of Zardab. Altitude of its territory above the sea level vanes between 2.2-6.8 meters. Surface of the area is relatively flat; it has the slope of 0.0052-0.018, which changes from north to south.

By its lithological content, the area has sandy and clayey soils. Density of solid phase of these soils varies between 2.25-2.71 g/cubic cm. Sandstones are mainly formed by alluvial deposits of the River Kur. The density of those is 1.13-1.58 g/cubic cm, while the density of solid phase is 2.66- 2.82 g/cubic cm. Clayey soils are more widespread. Traces of gypsum can be observed in these soils. Density of those soils in a layer with depth of 0-5 meters is 1.17-1.45 g/cubic cm, while the density of solid phase is 2.72-2.88 g/cubic cm. Clayey fractions are mainly seen in depressions of the relief. The depth of pressurized (artesian) waters is 80-100 m, in some cases the depth is up to 300 m. The total irigable area of the "Godakqobu" Farm (former "Zardab" kolhoz) is 1400 hectares. Out of this site, 1135 hectares are irrigated lands. These lands are irrigated by water supplied by pumping from the River Kur.

There are different degrees of salinity of soil in this area. The impact of ground water in the overall genesis of soils is big, and soil is of hydromorphic type. There are grassland-steppes, light grasslands, dark grasslands, wetlands and saline lands in the area. The amount of humus does not exceed 2.0%. Reclamation condition of lands is diverse; there are slightly, medium and severely saline lands in the area. The level of salinity in the upper 1-meter layer of saline lands is 2-3% and sometimes reaches 4-5%. The most widely spread are sulphate and chloride salinity. According to information from H4XI, in 1990s out of the total 2021-hectare area of the former "Zardabi" kolhoz, 1097 hectares have ground waters at the depth of 1-1.5 meters, while 924 hectares have ground waters at the depth of 1.5- 3.0 meters. At the same time, ground waters with level of runeralization at 3-5 g/l and above 5g/l accounted for 550 hectares 901 hectares respectively. Out of these, 600 hectares were non-saline lands, 324 hectares were slightly saline, while 1097 hectares were medium saline lands. Based on the depth and salinity level of ground waters, the reclamation condition of 1097 hectares of irrigated lands is 98 01/03/03 Draft unsatisfactory. Information about depth and degree of mineralization of ground waters, as well as about reclamation condition of soil at the "Godakqobu" Farm and neighboring areas, is shown on maps 7-9.

2.4. "Borsunlu" Farm, Goranboy District

Goranboy district is located 7 kilometers from the "Goran" railway station and 327 kilometers from Baku. The district is located in the Ganja-Qazakh plain on the bank of the Goran River. The surface is mainly flat (south-east end of the Ganja-Qazakh plain). South and south-west part of the district covers the north-east foot of Small Caucasus (up to 1000 meters height). Outer part of the area is occupied by the central part of the Bozdag Range (about 400-500 meters high) (Ganja Bozdagi), which lies along the south shore of the Mingechevir Water Reservoir. In some places, the surface is cut by ravines and valleys. Palaeogene and Neogene deposits are spread in mountam areas, while Recent deposits are spread in plains. The area has a unique deposit of medicinal oil (Naftalan).

The climate in the plain is mild warm and dry subtropic, and is relatively milder than in the south and south-west parts. Average temperature in January is 1,50C-10C, in July 26,50C-220C. Annual precipitation is 300-600 mrn. Rivers (Kurak, Goran, Korchay etc.) in the area relate to the basin of the River Kur and are broadly used in irrigation. There are brown and dark brown soils in the plain, and dark brown and grayish brown soils in the south. Main vegetative cover is represented by wormwoods and semi-desert plants. Water reservoirs (Safikurd, Hazirahmadli, Shikhlar etc.) were created in the district.

The total area of irrigated lands at the "Borsunlu" Farm (former "October" sovhoz) is 2200 hectares. These land plots are irrigated from Borsunlu canal in the River Kurakchay (flowing 17 kilometers from the farm); water is supplied to 1000 hectares by pumping water to 300 meter height from Qarabag canal. In addition, the farm used to operate 14 sub-artesian wells. At present, 5 of these are used for imgation purposes. The farm has inter-farm trench canals with total length of 50.9 kilometers. Most of these canals became silted and irrigation capacity of those has dropped.

2.5. "Qahramanli" Farm, Beylaqan District

Beylaqan districts is located m the south of the Mil plain on the Azerbaijan-Iranian border. The surface of the district's area consists of the plain with a slope towards north-east and east. North- east part of the area is below the sea level. The area has a mild semi-desert and dry-steppe type of climate with dry summer. Average air temperature in January is 1.80C, and in July, 260C. Annual amount of precipitation is 300 mm. The River Kur flows on the north-east border of the district, while the River Araz flows from the south-east of the district. Grayish soils and gray-grasslands are widespread in Beylaqan district.

The area of irrigated lands at the "Qahramanli" Farm (former sovhoz # 3) is 1733 hectares. These lands are provided with collector-drainage network. The farm's lands are imgated with water of Khan Qizi canal, which takes water from the Mil-Mugan hydro-engineering complex. The total length of inter-farrn canals is 40.4 kilometers; only 1.0 kilometer is coated with concrete. Information about mechanical composition of lands at the "Qahramanh" Farm is given in Table 2.3.

2.3. Mechanical composition of lands of the former sovhoz # 3 in Beylaqan district (fractions, %)

Depth, cm Size of fractions, nmun Total Clay 1-0,25 0,25-0,05 0,05-0,01 0,01- 0,005- <0,001 fractions Index, 0,005 0,001 %_ 0-25 0,1 1,9 29,3 15,2 25,7 27,8 68,7 40,7 25-50 0,4 8,6 22,9 15,7 24,8 28,6 69,1 41,4 50-75 0,5 25,3 20,0 6,2 18,9 29,1 54,2 53,7

99 0 1/03/03 Draft

75-100 0,4 21,2 35,6 10,3 17,6 14,9 42,8 34,8 100-125 0,6 6,1 28,1 8,5 20,3 36,4 65,2 55,8 125-150 0,2 36,7 26,4 4,7 19,1 12,9 36,7 35,2 150-175 0,4 18,1 32,7 5,3 22,3 21,2 48,8 43,4 175-200 0,9 11,3 36,4 8,1 23,3 30,0 61,4 48,9 200-225 0,1 17,1 33,0 5,6 19,0 25,2 49,8 50,6 225-250 0,50 40,3 16,4 8,3 19,3 15,2 42,8 35,5

0-25 0,5 16,9 25,9 11,0 24,7 41,0 56,8 37,0 25-50 0,5 27,2 30,1 9,3 19,5 13,4 42,2 31,8 50-75 0,5 31,3 30,4 3,8 22,7 11,3 37,8 29,9 75-100 0,7 34,7 22,4 7,6 20,5 14,1 42,2 33,4 100-125 0,8 20,2 23,6 9,8 22,5 22,9 55,2 41,5 125-150 - 12,6 20,2 7,1 28,2 31,9 67,2 47,5 150-175 0,8 17,0 20,6 8,1 24,7 28,8 61,6 46,8 175-200 0,6 14,5 22,6 9,5 24,6 28,0 62,1 45,2 200-225 0,8 17,9 22,4 8,7 26,8 23,4 58,9 39,7 225-250 0,6 15,0 23,7 8,8 20,2 31,7 60,7 52,2

2.6. "Yeni Hayat" Farm, Quba District

Quba district is located on the north-east of the Greater Caucasus. Surface of the area is mainly mountains. North-east end of the distnct reaches the Samur-Davachi lowland. The distnct's south-west border lies through the crest part of the Main Caucasus range (from mountain Tufandag to Durbar Mountain). The ranges Qaytarqoga, Yan and Qaynarcha being cut by river valleys lie in parallel to the Main Caucasus range on the north-east. Altitude of the area is approximately from 100 meters (in the lowland) up to 4,206 meters (Mountain Tufandag). There are Jurassic, Cretaceous, Neogene and Recent deposits spread over the area. Mineral deposits: gravel, sand, clay. The area has nuneral springs (Qonaqkand, Yerfi, Khaltan etc.).

Climate is nmld warm with dry summers in the plain and in the bottom part of mountains, and cold and humid in the uplands. Average temperature in January is 1°C in the plain and in the bottom part of mountains and -14 0C in the uplands. Average temperature in July is 240C and 2,5-2°C, respectively. Annual precipitation is 300-1500 mm. There are recent glaciers at the mountain Tufandag (Qudyal, Qarachay, Valvala etc.). Rivers are part of the Caspian basin. Mountain grasslands, brown mountain forests, and brown-type soils are spread m the area. Alpine and sub-alpine meadows cover big area in the mountain part. These are used as summner pasturelands. Further down, there are broad-leaved mountain forests (oak, pistachio-trees etc.). Meadows and brush-woods are widely spread in the plain areas and in the bottom part of mountains. Forest area is 48,000 hectares.

The area of irrigated lands at the "Yeni Hayat" Farm is 1136 hectares. These lands are supplied with water from water-receiving facility on the River Qudyalchay through 17-kilometer long concrete-coated canals. Inter-farrn canals consist of 11.4 kilometers of trench canals and 105.8 kilometers of closed network (asbestos and steel pipes). Lands of the "Yeni Hayat" Farm as satisfactory from hydro-geological and reclamation points of view.

3. VOLUME AND QUALITY OF SURFACE AND SUBSOIL WATERS IN THE PROJECT AREAS

Rivers of Azerbaijan are part of Caspian basin, which is one of the largest standing basins Due to diversity of climate and landscape of the area, the nvers of the country differ from each other by network density and water levels. The River Kur, largest river in the country, as well as in the rest of Caucasus, accumulates in its basin the waters of the bigger part of the area lying between the mountain ranges of the Greater and Lesser-Caucasus.

100 01/03/03 Draft

The Kur River is the largest river in Azerbaijan, as well as in the whole Caucasus. Its total length is 1515 kilometers. The part of the river that flows through the territory of Azerbaijan is 900 kilometers. Water-collecting area of the Kur River is 188,000 square kilometers (86,000 square kilometers if the Araz River is not taken into account). The Kur River originates in the territory of Turkey at a 2741-meter altitude.

Average annual water flow of the Kur River near Sabirabad area is 590 cubic meters/second. Its annual flow has the following breakdown: 59-69% in spring, 10-14% in summer, 12- 16% in autumn, and 9-15% winter. Average annual water flow upstream from the Mingechevir Water Reservoir is 401 cubic meters/second. In that area, the highest and lowest flow for the Kur River were reported as 2,420 cubic meters/second and 61 cubic meters/second, respectively. The River Kur, including the nvers, which are part of its water-collecting basin, plays big role in the country's economy; its waters are broadly used for shipping, power-generating and irrigation purposes.

The second largest river of Azerbaijan - the Araz River- is the branch of the River Kur. The Araz River originates in the territory of Turkey at a 2600-meter altitude. The length of the river is 1072 kilometers, the water-collecting area is 102,000 square kilometers. The basin of the Araz River alone is larger than that of the River Kur. The Araz River reaches the Kur-Araz lowland at the altitude of 78 meters above the sea level and, after a 140-kilometer distance, it flows into the Kur River near the town of Sabirabad, at the altitude of 16 meters above the seal level. The level of water flow in this section is 290 cubic meters/second. The water of the Araz River is rich with dissolved mineral salts. This is explained by the presence of highly dissolvable layers in the river basin.

The lower part of the Samur River flows along the Azerbaijan-Russian Dagestanian border. The Samur River originates from mountains of the Greater Caucasus range. Water-collectmg area of the river is 5000 square kilometers. The nver's length is 216 kilometers. Average annual water flow is 44.6 square meters/second. The 'annual volume of the river's flow is 1406.5 rnillion cubic meters; suspended sediments - 2.6 nmllion tons. The river's water is broadly used for irrigation activities. The largest canal on the nver - Samur-Absheron Canal - is of national significance.

Table 3.1 presents information about flow in the rivers, which supply irrigation water to project areas. Tables 3.2-3.6 contain information about quality of the rivers Kur and Araz. Table 3.7 provides data about quality of the Samur-Absheron canal. Tables 3.8-4.1 provide information about composition of collector waters.

Table 3.1. Information about flow (m3 /s) in the rivers that supply irrigation water to project areas

Months Avern Year II V _1 VI V il i i xi annual 1 11 111 IV I Vl I VlIVl IX I Xl Il flow

The Kur River - Mingechevir Hydro Power Plant Distance from outlet - 605 km, water-collecting area - 62,600 s . km 1990 225 344 244 123 171 224 287 282 188 179 185 214 222 1991 249 389 298 186 166 189 282 261 169 149 160 153 221 1992 181 197 202 242 218 101 218 226 139 137 141 156 180 1993 230 309 450 267 203 318 268 283 174 168 220 372 272 1994 431 417 426 402 160 186 229 259 149 162 181 203 267 1995 164 176 191 185 202 221 256 231 138 138 124 200 186 1996 159 186 347 268 183 188 225 200 148 184 126 177 199 1997 402 433 306 20 117 75 239 279 203 195 225 328 350 1998 324 366 352 214 179 191 240 237 165 180 217 261 244 1999 214 170 237 185 148 150 174 178 119 147 311 342 198

101 01/03/03 Draft 2000 T309 T217 1220 166 135 144 169 157 [94 116 1283 134 179 2001 288 79 90 85 110 100 126 150 117 94 134 152 119

The Kur River - Zardab Distance from outlet - 391 kIn, water-collecting area - 76,000 se km 1990 315 154 319 244 322 274 307 344 274 271 252 300 281 1991 303 471 427 285 272 270 322 345 262 218 275 277 311 1992 252 280 308 376 381 281 300 297 245 266 275 274 295 1993 340 406 532 423 354 326 338 300 282 264 312 433 359 1994 505 536 589 562 387 343 358 352 287 333 321 357 411 1995 304 294 306 296 295 330 297 307 293 270 281 306 298 1996 318 295 476 419 272 260 273 333 333 221 223 257 307 1997 402 430 402 277 231 280 338 346 267 242 280 378 323 1998 447 473 435 342 324 312 312 341 204 301 297 336 335 1999 335 299 337 314 279 229 229 227 221 226 409 477 299

The Kur River - Surra Distance from outlet - 206 kin, water-collecting area - 178,000 sq . Ia 1990 419 500 419 598 668 299 262 307 284 326 312 338 394 1991 331 468 614 726 372 277 282 318 296 216 402 417 393 1992 413 342 381 439 506 614 354 312 338 473 500 521 433 1993 646 625 730 680 1043 1124 405 391 351 346 545 766 638 1994 817 813 854 928 784 467 397 366 355 388 562 684 618 1995 520 560 573 532 533 482 352 365 323 333 404 481 455 1996 487 478 569 596 286 256 254 249 230 191 209 281 340 1997 519 560 573 520 515 471 350 367 319 329 401 478 450 1998 739 776 633 424 366 326 274 324 482 493 299 445 465 1999 517 561 573 508 497 460 348 369 316 325 399 475 446

The Kurakchay River - Chaykand

______Distance from outlet - 82 kmn, water-collecting area - 198 sq. km 1990 1 40 1.77 2.38 7.03 8.31 6.10 3.87 2.51 2.06 1.87 1.56 1.43 3.36 1991 1.12 1.11 1.51 3.45 5.14 6.36 3.84 2.50 2.06 0.73 0.77 0.76 2.45 1992 1.12 1.11 1.52 3.44 5.12 6.35 3 81 2.49 2.06 1.87 1.56 1.44 2.66 1993 1.12 1.12 1.52 3.43 5.10 6.34 3.79 3.32 1.70 1.29 1 56 1.45 2.64 1994 1.13 1.12 1.27 2.73 3 87 5.55 3.76 2.47 2.06 1.86 1.72 1.54 2.42 1995 1.25 1.18 1.57 2.59 5.59 6.13 1.90 2.06 2.15 2.14 1.84 1 60 2.50 1996 1.78 1.40 1.68 2.87 2.16 6.10 2.93 2.78 2.26 1.94 1.46 2.23 2.47 1997 0.51 1 24 2.14 4.44 4.73 4.97 5.69 2.41 2.12 1.45 1.21 2.73 2.80 1998 1.21 1.33 1.28 2.91 4.15 3.06 1.83 1.39 1.30 1.22 0.98 0.99 1.80 1999 1.03 0.97 1.01 2.44 4.71 5.14 4.83 2.42 2.43 2.16 1.90 1.73 , 2.56

The Kurakchay River - Dozular Distance from outlet - 69 km, water-collecting area - 439 sq. km 1990 1.97 2.32 2.79 7 90 7.70 6.21 3.49 2.90 2.97 2.55 2.44 2.18 3.79 1991 2.26 2.17 2.40 3.58 5.83 8.57 3.14 2.37 1.61 1.14 1.24 1.36 2.97 1992 1.44 1.75 1.76 3.41 4.58 8.13 11.2 4.01 3.16 3.01 2.79 268 3.99 1993 2.25 2.28 3.10 6.03 7.78 10.6 4.55 4.37 2.85 2.26 1.68 1.81 4.13 1994 1.97 1.70 2.19 4.02 7.97 10.4 6.24 1 3.72 3.62 2 .55 2.61 2.65 4.14 1995 2.45 2.74 3.28 4.99 5.35 9.31 6.79 3.42 3.02 3.92 3 39 2.85 4.29 1996 2.06 2.23 2.35 4.48 6.02 7.79 5.36 2.60 1.52 1.12 0.66 0.55 3.06 1997 1.07 1.41 1.36 3.50 6.37 6.92 7.38 2.62 2.32 1.82 1.66 1.23 3.14 1998 115 1.09 1.49 3.07 5.65 4.99 2 76 4 13 1.51 2.14 2.13 2.05 2.68 1999 2.87 1.58 1.49 2.93 5.67 5.58 4.78 3.36 5.23 4.35 , 4.99 4.90 3.98 102 01/03/03 Draft

The Qudyalchay River - Qiriz Distance from outlet - 67 km, water-collecting area - 426 sq. km 1990 2.74 2.76 3.11 5.91 17.4 17.0 7.25 5.52 4.46 3.97 3.98 3.61 6.47 1991 2.73 2.82 3.16 4.69 15.4 21.3 7.83 4.88 3.85 2.85 3.43 2.86 6.32 1992 2.69 2.69 2.84 4.05 8.28 19.7 19.5 10.5 6.09 8.33 5.86 4.96 7.96 1993 4.39 4.10 5.09 6.52 19.5 37.3 27.5 12.4 9.64 5.73 4.33 3.71 11.68 1994 3.97 2.38 2.80 5.47 10.5 14.9 9.79 5.57 4.03 3.49 3.12 2.47 5.71 1995 2.54 2.55 2.94 5.38 9.0 13.9 11.1 6.89 5.15 4.65 3.89 3.30 5.94 1996 2.65 2.75 2.94 3.98 5.41 5.41 4.02 2.02 3.16 3.72 3.21 2.73 3.50 1997 3.17 2.16 2.93 7.41 8.29 12.5 15.7 11.9 11.2 7.48 4.72 3.24 7.56 1998 2.79 2.44 3.30 4.29 9.85 7.96 7.24 7.40 6.84 6.19 4.59 3.57 5.54 1999 3.55 3.74 5.16 7.63 9.13 8.06 5.12 6.54 9.31 5.27 3.41 2.75 5.81

103 Table 3.2. Quality indicators of waters of the River Kur at the Talish village section (based on within-year section)

Year of Composition of main ions, mg/l Solid Dissolved Oil Zinc sampling residue oxygen produ SS Phenol Iron Copper inc Ca Mg2 Na+K Cl S0 4 HCO3 mg/I mg/l 02 ct min 1980 48.0 29.0 65.0 60.0 160,1 237,9 600,0 7,9 - 0.01 0.0 Traces 0.025 0.001 mm 1987 68.4 28.9 149.5 105,1 287,7 189,8 834,9 6.5 0.08 0.19 0.001 0.015 0.0050 0.005 max 1980 100.0 76.0 235.0 100,0 288,2 360,8 1160,0 9.9 - 0.158 0.001 0.012 0.0040 0.0014 max 1987 117.3 63.0 230.8 106,6 488,1 250,8 1227,0 8.4 0.20 0.86 0.028 0.050 0.0080 0.0100

Table 3.3. Dynamics of mineral content of the Kur River's water (Town of Salyan section) Distribution of mineral content within a year ml/g Aver. Periods ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~annual Periods I II III IV V VI VII vIII IX X XI XII mineral content 1946-1950 428,5 510,8 381,1 436,9 318,7 339,6 390,0 393,0 456,4 434,2 440,2 463,4 416,0 1951-1955 450,7 536,9 417,9 485,5 375,5 385,5 380,4 425,0 460,5 460,5 484,1 478,5 445,1 1956-1960 485,5 576,3 589,0 554,6 450,0 486,0 525,3 484,2 468,0 480,0 520,0 488,0 507,7 1961-1965 516,4 615,5 615,4 584,9 521,5 580,6 540,5 512,4 500,8 500,5 530,4 560,5 642,6 1966-1970 600,2 675,4 748,5 695,5 644,7 621,5 610,8 600,5 560,4 534,8 520,5 598,7 642,7 1971-1975 647,6 760,0 881,3 788,1 868,0 741,2 677,7 691,9 640,6 626,9 634,6 728,7 724,0 1976-1980 950,4 896,5 927,5 894,5 890,5 812,5 820,0 789,5 765,8 729,5 705,8 768,3 829,2 1981-1985 1026,6 1311,0 1352,2 1085,6 1148,6 893,1 912,7 794,8 906,7 897,6 914,6 851,0 1107,8 1986-1988 1203,9 1358,0 1360,1 1270,5 1249,0 1084,8 1084,8 1025,4 988,5 964,5 968,4 932,0 1257,5 Source: A. Abdullazade, 1989 (for both tables) 01/03/03 Draft

Table 3.3. Hydro-chernical composition of the Kur River's water at the Mingechevir Water Reservoir (1996-2001)

Amount of ions: mg/I and mg-equiv Total Season Mineral hardness Season HSO3 Ci SO4 Mg Na+K content mg-

______m g/i equiv/1 1 2 3 4 5 6 7 8 9 10 M 14~27 17 8 68,2 48 5 203 4 8 2,34 0,5 1,42 2,4 1,67 0,19 302,3 4,07 M2 143.0 210 2160 57, 17,0 80,0 534 4,2 Mx 2,3 0,6 4,5 2,8 1,4 3,2 5342

Aver. 16,6 22,4 120A 367, 12.2 680, 409,7 2,83 2,64 0,63 2,28 1,86 1,0 2,72 ______

Min Mm i 4 22 8 61 8 2,2!1836 9 21 3 24 2 374 33,5942327,4 2,62 0,64 1,29 1,84 1,75 0,96 Ma 158,6 23,5 171 7 58 9 14 8 69,5 0 M 2,60 0,66 3,58 2,84 1,22 2,78 495 4,06 22,7 Ave r .Ae. 151L32,48 0,64 113.52,36 66,33,3 0,8410,2 3351,34 397,5375 4,1441

Mi 8 22 1 101,9 26~4 33 0 18 288 40 Mmi n 81,37 0,62 2,12 1,32 2,72 0,07 268,8 4,04

Max 41, 33,8 1260 363 32.0 370 486 44 2,31 0,95 2,66 1,81 2,63 1,48 Aver. 147 6 21,9 87 3 5 17 8,1 40,3 356,9 3,25 2,42 0,62 1,82 2,58 0,67 1,61 Min 1104 204 95,0 52,7 19,1 35 314 42 Mu 1,8 0,57 1,98 2,63 1,57 0,15 301,4 4,20

E ~~~1422 21,0 1907 69,9 9,8 650 486 43 2 Max 4986__3 2,33 0,59 3,98 3,49 0,81 2,6 498,_4,3

Aver. 146,A 24,0 128$0 56,0 9,8 52.8 417,0 3,6 Aver______2,40 0,68 2,67 2,79 0,81 2,1 417,0 3,

Table 3.5. Hydro-chemical features of the Kur River's water at the Mingechevir Water Reservoir mg/l

Seas ndicator pH 02 NO2 NH4 NO3 Fe SiO 2 P0 4 Min 8 7 0,0 0,0 0,1 0,0 0,0

= Max 8,5 24 0,45 0,0 1,5 0,9 7,4 0,05

Average 8,05 12 0,015 - - 0,0 0,1 0,05

Min 8,1 1,5 0 0 - 0 0 0

. Max 8,4 13,4 0,26 0,13 - 0,8 8 0,03

se Average 8,4 7,4 0,095 - - 0,24 4 0,01

105 01/03/03 Draft

Mm 6,0 0 0,03 - 0 2,4 0 1 Max 8,7 18,6 0,234 0,19 - 0,54 7,3 0,038 co Average 8,7 13,6 0,077 - - 1,4 5,3 0,005

Mm 7,65 5,3 0 0,013 - 0 1 0 2 Max 8,4 12 0,104 1,07 - 0,75 6,6 0,025

< Average 7,65 8,9 0,02 1,0 - 0,02 1,0 -

106 01/03/03 Draft

Table 3.5 Hydro-chemical composition of the rivers Kur and Araz

Amount of ions, mg/l Total Total N° Locations Date mineral hardness HCO3 Cli S04 Ca Mq Na+K content mg- mg/l equiv/l THE RIVER KUR

1 Place where the river 2.VNII.1995 183 71.0 580 70.1 18.2 291.7 1194 5.0 flows into the reservoir 2 Mingechevir Water 24.X.1995 183 53.2 246 60 24 115 681.2 5.0 Reservoir 3 Town of Yevlakh 24.X.1996 183 60.3 288 60 24 137.5 752.8 5.0 4 Town of Qazakh 27.X.1996 213.5 53.3 247 60.1 46.6 78.5 701.0 7.0 5 Town of Agstafa 27.X.1996 274.5 117.1 452.1 110.2 54.7 180.5 1189.1 10.0 6 Town of Salyan 5.XI.1996 244 135.0 370.2 80 72 137.5 938.7 10.0 7 Town of Salyan 9.XI.2001 183.0 70.7 245.2 60 36.5 102.5 687.9 6.0 8 Poylu . 1.IV.1997 305 88.7 370 130 36 142.5 1072.7 9.5 9 Town of Qazakh 18.XJI.2000 T83 27.0 170.7 80.2 6.1 70.5 537.5 4.5 10 Town of Shamkir 18.XII.2000 183 43.7 160.4 80.2 12.2 64.3 543.8 5.0 11 Town of Sabirabad, exit 3.VI.2001 213.5 67.5 288 60.1 30.4 147.5 807.0 5.5 12 Town of Sabirabad 3.VI.2001 213.5 71.0 288 60.1 30.4 150.0 813.0 5.5 13 Town of Sabirabad 9.XI.2001 183 67.5 248.9 60.0 36.5 102.0 697.9 6.0 14 Town of Sabirabad 16.Xi.2001 183 50.4 193 70.1 24.3 73.5 594.3 5.5 15 Town of Ali-Bayramhl 9.X.2001 244 77.4 232.4 60.1 48.6 100.5 763,0 7.0 16 Mingechevir Water 28.IX.2001 183 47.2 82.3 60.1 24.3 26.0 422.9 5.0 Reservoir 17 Mingechevir, exit 28.IX.2001 183 45.4 139.8 50.1 30.4 54.7 533.8 5.0

107 01/03/03 Draft

THE RIVER ARAZ

1 Fizuli district 8.XI.2001 244 141.6 272.0 60.1 54.7 154.0 926.4 7.5 2 Bala-Bahmali village, 8.XI.2001 244 144.8 248.9 60.1 54.7 144.0 896.5 7.5 Fizuli distnct 3 Town of Sabirabad 16.XI.2001 305 225.8 577.3 150.1 79.0 234.0 1571.2 14.0

.1.1 Table 3.6 Hydro-chemical features of waters of the Kur and Araz rivers

Suspen Oxyge IAm lmn SlcuPop Sampling place Date pH ded n BT05 nmu Nitrite Nitrate Iron Ilm Situ Copper Phosph CRO K2 ~~~~~~~~fractionconditi nmum jum m orus

THE KUR RIVER

Mingechevir I Water 2 08.95 7.5 0 08 0 1 6.5 0.05 0.01 6.5 0 008 Reservoir, 0.04 15.6 entrance Mingechevir 2 Water 2 08 95 7.6 0.08 0.05 6.8 0.05 0.08 6 5 0.006 0.01 18 2 Reservoir, exit 3 Yevlakh t. 24 10.96 7.8 0 2 0 1 . 8.4 0.1 0.008 6 3 0.004 0 01 16 5 4 Qazakh t 27.10.96 7.4 0 2 0 05 7.6 0.1 0.01 7.0 0.006 0 01 17.5 5 Agstafa River 27.10 96 7 5 0 2 0 05 8.3 0.2 0.01 5.7 0.007 0.01 18 5 6 Salyant 5 11 96 7.6 0.2 005 8.2 0.1 001 5.6 0.005 001 168 7 Salyan t. 9 11 01 7.8 260 7.9 2 1 2 0 0.005 0 12 0.25 0 12 7.3 0.05 0.06 15 0 8 Yevlakh t , 1.04 97 7 6 0.02 0.05 6 5 0.25 0 01 6 5 0.008 0.01 18.6 PoyluI 9 Qazakh t 18 12 00 7 8 280 0.1 0.05 4 5 0 01 0 18 9 7 0 14 0 04 18.6 10 Shamkir t 18 12.00 7.6 290 0.1 0 05 3.60 0 01 0 2 5 8 0 1 0.07 20.1 I I Sabirabad tt 3 07 01 270 8 1 1.9 0.01 0.2 4.8 0 05 0.009 4.5 0 009 0.02 24 8 12 Sabirabad t 3.07 01 235 7 8 2 2 0 01 0 08 4 9 0.1 001 6 0 0.008 0 02 16.0 13 Sabirabad t. 9 11 01 7 6 270 8 0 1 9 0 4 0.01 0 18 0 25 0 05 7 2 0 13 0.06 24.0

108 01/03/03 Draft

14 Sabirabad 16.11.01 7 8 270 8.64 1.25 0 08 0 005 1.7 0.1 0 05 5.6 0 008 0.04 26 6 15j Ali-Bayramli 9 1001l 8.0 165 8.0 2.5 0.005 0 008 4.5 0 05 0 007 4.2 0.005 0 01 28 161 Mingechevir 28 09 01 7 8 36 7.68 1.53 0.08 0.05 2.0 0.07 0.05 3 0 0.05 0.05 28 j entran ce ______17 Mingechevir 28.09 01 7 8 38 0.08 0.01 1.0 No 0.14 4.0 0.005 0.04 25 e x it ______I______THE ARAZ RIVER

18 Sabirabad t. 16.11.01 7.6 130 8.06 1.95 0 08 0.01 1 0 0 25 0 005 11.5 0.01 0.04 20 6 19 Fizui district 8.11.01 7 7 155 7.9 1.9 0.08 0 01 3.2 0.051 0.05 10.5 0.07 0.06 24 0

-~BaIa-BahmaliI 20I village, Fizuli 8.11.01 7.9 9 811 2 0 0.08 4 0 2.4 0.05 0.05 10.5 0.07 0.06 16.0

Table 3.7. Quality indicators of water in rivers within Samur-Absheron zone

Nitro Floati Dissol gen Nitnt Nitrat Oil Place of Year ng ved BT05 CR0 Amm e e Phosp prd Pheno Surfa Copp Zinc Mang Titani sampling fracti oxyge onium nitrog nitrog horus prod I ctants er anese urn ons n Nitrit en en

Samur 1983 3190 9.58 1.32 12.50 0.186 j0.023 0.393 0.111 N/A 0.002 0.01 1 N/A N/A 0.003 0.012 River 1984 1746 9.12 1.70 9.10 0.680 0.009 1.140 ,0.031 0.08 0.004 0.013 0.010 0.003 0.016 0.010 1985 135 9.37 0.65 8.0 0.150 0.004 0.570 0.039 0.13 0.002 0.0 0.005 0.010 0.005 0.008 Usuxcha 1986 1065 9.64 0.89 7.90 0.090 0.006 0.400 0.047 0.10 0.001 0.014 0.003 0.001 0.009 0.009 y village 1987 1412 10.18 0.94 3.30 0.080 0.005 0.550 0.045 0.03 0.001 0.0 0.003 0.003 0.005 0.008 1989 1033 10.07 1.30 5.20 0.240 ,0.007 0.510 0.033 0.04 0.001 0.0 0.004 0.010 N/A N/A 1990 816 9.35 1.35 4.30 0.160 0.005 0.580 0.028 0.04 0.001 0.005 0.002 0.004 N/A N/A Qusarcha 1983 538 11.0 1.07 6.50 0.010 0.008 0.543 0.064 0.01 0.006 0.031 0.003 0.002 0.004 0.015 yRiver 1984 854 11.34 10.72 4.40 0.120 0.004 0.360 10.048 0.0 0.002 0.029 0.004 0.005 10.003 0.002 1985 494 10.16 0.67 2.60 0.140 0.004 0.400 0.042 0.0 0.002 0.035 0.004 0.002 0.003 0.008 Quzun 1986 401 9.64 1.50 N/A 0.060 0.011 0.450 0.069 0.0 0.004 0.029 0.005 0.003 0.004 0.021 village 1987 222 9.41 0.63 4.80 0.03 0.008 .5 0.082 0.01 0.00 008 005 0.002 0.005 0.005

109 01/03/03 Draft

Qudyalc 1983 448 11.48 0.71 5.60 0.037 0.006 0.629 0.034 0.0 0.005 0.032 0.003 0.004 0.005 0.010 hay 506 11.33 0.90 7.30 0.045 0.009 0.670 0.043 0.02 0.008 0.034 0.004 0.005 0.006 0.016 River 1984 508 10.14 0.14 4.80 0.120 0.005 0.520 0.046 0.02 0.003 0.031 0.003 0.005 0.008 0.015 663 10.40 1.10 7.60 0.110 0.005 0.710 0.051 0.07 0.005 0.035 0.005 0.010 0.006 0.013 1 kn up 1985 342 10.57 0.69 3.50 0.100 0.009 0.610 0.051 0.0 0.004 0.031 0.004 0.003 0.006 0.010 0.5 km 433 10.08 1.0 5.60 0.120 0.011 0.680 0.065 0.01 0.009 0.035 0.007 0.004 0.003 0.008 down 1986 241 10.75 0.78 4.60 0.050 0.006 0.620 0.070 0.01 0.003 0.023 0.003 0.003 0.003 0.008 from the 346 9.78 1.14 6.80 0.070 0.006 0.920 0.083 0.01 0.006 0.030 0.004 0.005 0.007 0.010 town of 1987 698 9.95 0.76 5.50 0.030 0.005 0.360 0.087 0.0 0.002 0.012 0.007 0.003 0.005 0.004 Quba 821 9.43 1.04 7.00 0.040 0.007 0.500 0.113 0.02 0.003 0.017 0.009 0.005 0.005 0.005 Note: all indicators are given in ml/g. NA- information is not available

Table 3.8. Chemical composition of collector waters

Name of collector Years Mineral Ion composition, mg-equiv/l Ion composition, mg-equiv/l content HCO3 Cl S04 Ca Mg Na+K HCO3 Cl S04 Ca Mg Na+K g/l m g______First Near-Kur Collector 1995 13,94 4,5 176,0 58,3 26,0 78,0 142,8 1,9 73,7 24,4 10,9 30,2 58,9 (Sabirabad) 1996 11,15 4,1 185,4 60,2 21,9 67,0 101,7 2,1 66,1 31,9 11,1 35,3 53,6 1997 12,52 4,3 160,0 52,2 24,2 76,2 116,0 2,0 73,9 24,1 11,2 35,2 53,6 1998 14,68 6,1 196,0 53,5 36,0 90,0 129,6 2,4 76,7 20,9 14,1 35,2 50,7 Mil-Qarabag Collector 1995 4,9 5,8 18,6 47,5 10,0 13,0 47,9 6,3 26,3 67,4 14,1 18,3 67,6 (home part - Goranboy) 1996 7,81 5,0 35,5 80,1 1,2 34,0 85,5 4,1 29,5 66,4 1,0 28,2 70,8 1997 5,50 4,3 27,4 53,8 11,0 23,0 51,5 5,1 32,0 62,9 12,8 20,9 60,3 1998 5,26 5,0 28,6 49,2 8,5 21,5 52,0 5,1 34,9 60,0 10,4 26,2 63,4 C-1-2 (Beylaqan) 1995 12,72 7,7 116,0 79,3 11,0 28,0 164,0 3,7 57,1 39,2 5,4 13,7 80,1 1996 12,25 3,1 108,0 84,6 10,0 31,0 155,1 1,3 55,0 43,1 5,0 15,8 79,2 1997 9,42 9,3 104,0 43,5 26,0 31.) 98,4 5,1 66,9 28,0 16,7 19,9 63,3 1998 16,3 9,2 196,0 78,4 26,0 60,0 195,6 2,5 69,5 28,0 9,2 21,3 69,9 C-1-1 (Imishli) 1995 6,55 3,5 4,0 41,3 15,0 34,0 59,8 3,2 58,8 38,0 13,8 31,3 54,9 1996 6,66 4,9 58,0 45,5 16,0 29,0 63,4 4,5 53,5 42,0 14,8 26,7 58,5 1997 6,1 4,5 60,0 36,9 14,0 27,0 59,4 3,5 59,7 36,8 13,9 26,9 39,2 1998 5,36 6,3 39,2 38,4 11,2 6,0 66,0 6,8 47,1 46,1 13,5 , 7,2 I 79,3 Lower Shirvan Collector 1995 11.33 5,3 136,0 134,7 17,0 53,0 206,0 1,9 49,3 48,8 6,2 19,2 74,6

110 01/03/03 Draft

(Zardab) 1996 13,48 6,2 100,0 108,6 13,0 46,0 155,1 2,7 46,6 50,7 6,1 21,4 72,5 1997 13,79 5,8 58,0 147,7 12,0 40,0 159,3 2,6 27,4 70,0 5,1 18,9 76,0 1998 11,62 5,9 146,0 75,8 21,0 67,0 139,7 2,58 64,1 33,3 9,3 29,4 61,3 C-5 (Agjabedi) 1995 9,40 3.30 123,5 38,6 8,0 25,0 132,4 2,0 74,7 23,3 4,8 15,1 80,1 1996 9,11 6,0 68,0 75,1 17,0 51,0 81,1 4,0 45,6 50,4 11.4 34,2 54,4 1997 7,51 2,0 42,2 74,6 15,5 34,3 69,0 1,7 35,5 62,8 13,1 28,8 58,1 1998 10,05 4,9 70,0 80,5 5,0 14,0 136,4 3,1 45,1 51,8 3,2 9,0 87,8 Second Near-Kur 1995 12,87 5,4 150,0 65,5 28,0 84,0 108,9 2,0 67,9 29,6 12,7 38,0 40,3 Collector (Sabirabad) 1996 10,06 4,0 136,0 63,8 25,0 65,0 114,2 2,0 66,6 31,2 12,2 31,8 55,9 1997 11,03 2,2 134,0 51,8 22,0 58,0 108,4 1,2 71,1 27,5 11,7 30,8 57,5 1998 12,12 5,7 138,0 63,2 25,0 77,0 104,9 1,7 66,7 30,5 12,1 37,2 50,7

Table 3.9. Quality of water in collectors located in Beylaqan and Agjabedi zones

Chloride hazard Antipov-Karatayev; Irrigation coefficientu Amount of natrium, Na, Relatively/potentially Amount of magnesium ~~~~~~~~~~S04 ~~~~~~~~~~~~~~Cl+0,5K )Ka+ M3 _ c (K,) % absorbed natrium, SAR Mg, % CK, Ha + O,23)K

-~ Actua Allow Actua Allow Actua Allow Actua Allow Actuia o ~~ ~ Allow Actua Water Allow Water Water Water Water able I able 1 able 1 able 1 able I able 1I W o gradat figure Qai gradat figure Qai gradat figure Qualit gradat figure Qai gradat figure Qai gradat figure Qui ions s Low ions s ' ions s ions s ions s ions s Low 2,8uGoda5,94 Unsui suitab 2,04 C-3 1,41 <2 5,0 satisfa 32,83 le 2,84 Good 52'94 table 15,96 le 2,04 | unsati ctory _> 60 <10- > 50 sfacto Unsati Unsui good Uusui > i <10 u C-2 7,37,,32 1,26 sfacto 60 71,10 20302 Bad % 89,12 Unsui 20 unsuit < 1,0 0 C-l2l 1,2013,00unsuitab ctory 31,22 utable Unsuit table unsuit 732 able unsuit a >18y - able 10-18 able able able 2,0- Low abeSul 2 Good | unsuit u5s C-2-1 3,23 6,0 3,47 satisfa 70,55 Uuissati s ati3sfa <5 87,84 Un2ui28,52 unut0,41 us satisfa cto ~~< 60 table fa 1,3 ctory 1,0 ab satisfactory % ~~~ctory %suitab suitab C-- 1,20 coy 13,00 Sts suab 31,22 Seuit 18 2,03 Good suitab 90,00 Unsui le 6,97 suitab le 2,07 si 1-1-1 18 ' actory le bad1 le table le C-2- good 10 tis20 tUnsui 15 utb25 112 1,58 1020 actisy 26,92 Suea 2,21 Good 66,67 tal 01/03/03 Draft

Table 3.10. Chemical composition of water in sub-artesian wells of Goranboy district

Well # g/l / mg-equiv HCO3 Cl S0 4 Anion Ca Mg Cation Na + K Solid residue pH total Total g/l 1 0.116 0,951 0,329 35,55 0.140 0,060 12,00 0,542 2,100 6,8 1,90 26,80 6,85 7,00 5,00 23,55 2 0.116 0,934 0.387 3626 0,140 0,072 13,00 0,535 2,070 6,8 1,90 26,30 8,06 7,00 6,00 23,26 3 0,116 0,986 0,428 38,61 0,140 0,072 13,00 0.589 2,260 7,0 1,90 27,80 8,91 7,00 6,00 25,61 4 0,134 1,136 0 625 47,23 0,200 0.144 22,00 0,580 2,690 7,2 2,20 32,00 13,03 10,00 12,00 25,23 5 0,134 1.143 0,559 46,06 0.200 0.108 19,00 0,622 2,580 6,8 2,20 32,20 11,66 10,00 9,00 27,06 6 0.207 0,440 1.152 39,80 0 200 0,156 23,00 0.386 2,450 7,0 3,40 12,40 24,00 10,00 13,00 16,80 7 0,171 0.036 0 082 5,51 0.040 0,024 4,00 0.037 0,360 7,2 2,80 1,00 1,71 2,00 2,00 1,51 8 0,165 0.312 0,617 24,36 0,140 0.036 10,00 1,480 6,8 2,70 8,80 12,86 7,00 3,00 14,36 9 0 189 0.114 0.691 20,70 0,160 0,036 11,00 0.223 1,250 6,8 3,10 3,20 14,40 8,00 3,00 9,70 10 0,201 0,114 0,535 17,64 0,060 13,00 1,060 7,0 3,30 3,20 11,14 8,00 5,00 4,64 11 0.348 0,043 0.510 17,53 0,160 0.048 12,00 0.127 1,030 7,2 5,70 1,20 10,63 8,00 4,00 5,53 12 0366411 15,57 0.200 0,048 14,00 , 1,040 7,4 6,00 1,00 8,57 10,00 4,00 1,57

112 01/03/03 Draft

Table 3.11. Chemical composition of water in sub-artesian wells of Agjabedi district

Well g/l / mg-equiv HCO3 Cl S04 Anion Ca Mg Cation Na + K Solid residue pH total total g/l 1 0.207 0,050 0.222 9,43 0.080 0,024 6,00 0.079 0,630 6,8 3,40 1,40 4,63 4,00 2,00 3,43 2 0.057 0,560 16,56 0 060 0,024 5,00 0,266 0,960 7,0 3,30 1,60 11,66 3,00 2,00 11,56 3 0p244 0.039 0 527 16,07 0.080 0,036 7,00 0,209 1,100 74 4,00 1,10 10,97 4,00 3,00 9,07 4 0.262 0.057 0,345 12,80 0,100 0,036 8,00 0.110 0,820 7,2 4,30 1,60 7,20 5,00 3,00 4,80 5 0,268 0.099 0.329 14,06 O 100 0 036 8,00 0139 0,780 7,4 4,40 2,80 6,86 5,00 3,00 6,06 6 0 457 0,064 0,411 17,87 0.120 0,024 8,00 0.227 1,200 7,0 7,50 1,80 8,57 6,00 2,00 9,87 7 0,201 0.131 0,798 23,63 0.180 0.072 15,00 0.198 1,200 7,0 3,30 3,70 16,63 9,00 6,00 8,63 8 0,146 0.053 0,115 6,30 0,040 0.036 5,00 0,030 0,380 7,2 2,40 1,50 2,40 2,00 3,00 1,30 9 0,250 0,105 0,321 13,78 0,120 0.072 12,00 0,041 0,870 7,2 4,10 3,00 6,68 6,00 6,00 1,78 10 0.268 0.071 0,296 12,57 QJ20 0.036 9,00 0.082 0,620 6,8 4,40 2,00 6,17 6,00 3,00 3,57 11 0.354 0.057 0.428 16,31 0 40 0,084 14,00 0.053 0,970 6,8 5,80 1,60 8,91 7,00 7,00 2,31 13 032 0,035 0,280 10,63 0,080 0,048 8,00 0,060 0,580 7,0 3,80 1,00 5,83 4,00 4,00 2,63 14 0,256 0.021 11,31 0,080 0.060 9,00 0,680 7,2 4,20 0,60 6,51 4,00 5,00 2,31

113

01/03/03 Draft

4. DISTRIBUTION OF WATER AT HYDRO-ENGINEERING COMPLEXES THAT SERVICE THE AREAS UNDER STUDY

4.1. Distribution of water at the Mingechevir Water Reservoir

The Mmgechevir Water Reservoir, which was designed for over-year regulation, was established in 1953 in the territory of Mingechevir district, in the area where the River Kur crosses the Bosdag Mountain. Water supply source of the reservoir includes the rivers, Kur, Qanikh (Alazan) and Qabirri.

The total volume of the reservoir at a normal filling level (83 meters) is 15730 mullion cubic meters. Due to withdrawal of water to the Upper Shirvan Canal, the inactive storage capacity of the reservoir at the level of 68 meters is 8051 million cubic meters, while the active storage capacity is 7679 million cubic meters. The length of the water reservoir is 70 kilometers, the maximum width at the normal level is 18 kilometers. The maximum depth at the normnal level is 75 meters; the length of the coast lme is 247 kilometers. The area of water surface at the normal filling level is 605 square kilometers. With approximately estimated 116 million cubic meters of rainfalls accumulated in the Mingechevir Water Reservoir, 410 million cubic meters of water evaporates from its surface during a year. Two arterial canals - Upper Qarabag and Upper Shirvan canals - take water from the Mmgechevir Water Reservoir.

The Upper Qarabag Canal was launched into operation in 1958. The water to the canal is taken in front of the dam of the Mingechevir Hydro Power Plant, from the right bank of the Kur River. Withdrawal of water to the canal is done through Upper Portal main unit located at a 59-meter bottom level in the Mingechevir Water Reservoir and the Lower Portal main units at the end of the 1072-meter long tunnel (diameter 4.9 meters).

The length of the Upper Qarabag Canal, which goes though a land trench, is 172.4 kilometers. Normal water flow is 113 cubic meters/second; maximum flow is 138 cubic meters/second. The canal supplies water to 150,000 hectares of land in the Qarabag zone with a portion of it in the Mugan zone.

Repeated discharge of thermnally ennched water from AZDRES into the Upper Qarabag Canal led to development of various aquatic plants in the water section of the canal. As a result of this, the water-carrying capacity of the canal dropped by 20-30 percent.

The Upper Shirvan Canal was launched into operation in 1958. The Upper Shirvan Canal, which goes through a land trench, takes water from the Main Unit at the Khanabad Dam of the Mingechevir Water Reservoir. The Main Unit receives water through the 2.9-kilometer long canal in the Mingechevir Water Reservoir. The length of the Upper Shirvan Canal is 122.2 kilometers. Normal water flow is 78 cubic meters/second; maximum flow is 90 cubic meters/second. The canal supplies water to 100,000 hectares of land in the Shirvan zone. Information about inflow and outflow water flow at the Mingechevir Water Reservoir is provided in Tables 4.1-4.4.

115

01/03/03 Draft

Table 4.1. Historical information on water discharged from the Shamkir Water Reservoir to the Mingechevir Water Reservoir

cubic meters/second MONTHS Annual Averag flow, Year e annual million Jan Feb March April May June July Aug Sep Oct Nov Dec flow cubic meters 1991 399 230 285 475 330 320 203 61 99 101 194 213 242 7653 1992 242 304 381 354 355 498 249 133 97 176 314 250 279 8818 1993 287 346 245 640 678 595 239 112 104 103 235 278 322 10157 1994 265 288 206 416 318 149 70 81 79 133 192 144 195 6157 1995 207 303 330 320 170 119 161 83 113 172 221 275 206 6501 1996 198 210 269 356 265 293 215 227 86 176 186 198 223 7046 1997 201 174 394 357 592 409 276 130 143 187 266 235 280 8847 1998 243 185 201 219 367 477 155 157 175 257 157 582 239 7561 1999 164 113 123 164 485 332 276 28 34 138 253 403 209 6609 2000 269 188 284 298 151 225 340 140 78 159 219 130 207 6520 2001 172 142 113 217 195 153 137 171 184 201 277 138 175 5519

117 01/03/03 Draft

Table 4.2. Information on water flowing from the Alazan River into the Mingechevir Water Reservoir

cubic meters/second MONTHS Annual Avera flow, ge million >-~ Jan Feb March April May June July August Sep Oct Nov Dec flow cubic meters 1991 72 91 132 164 197 174 108 74 79 75 107 77 113 3564 1992 70 82 124 178 164 179 153 126 79 155 81 73 122 3847 1993 66 76 98 196 214 301 163 122 98 87 102 67 133 4194 1994 66 52 92 178 265 177 113 56 73 65 99 89 110 3467 1995 82 83 112 146 130 II 64 55 72 87 85 75 92 2901 1996 76 86 120 158 147 146 97 70 52 58 73 52 95 2996 1997 56 76 90 139 139 165 142 89 106 112 89 67 106 3343 1998 52 47 95 150 207 124 84 80 83 64 52 61 92 2901 1999 35 32 44 97 164 126 78 54 98 89 91 72 82 2586 2000 77 68 82 129 150 214 85 54 87 147 86 67 104 3274 2001 54 70 112 187 203 136 77 57 62 51 43 51 92 2901 01/03/03 Draft

Table 4.3. Information on flow of water taken from the Mingechevir Water Reservoir through the Upper Qarabag Canal

Cubic meters/second

YEAR MONTHS AVERA s ~~~~~~~~~~~~~~~~~~~GE ______~~~FLOW Jan Feb March April May June July August Sep Oct Nov Dec 1991 60 70 80 80 85 107 109 110 60 75 65 60 80 1992 55 60 75 80 85 110 112 112 65 70 70 65 80 1993 65 75 72 83 67 65 104 113 80 74 82 60 78 1994 55 55 62 70 69 85 113 111 83 66 70 70 75 1995 70 74 86 94 84 97 100 97 69 65 65 65 80 1996 60 60 75 60 90 88 83 80 53 50 50 50 67 1997 62 65 75 68 70 107 105 103 35 55 55 55 73 1998 55 55 88 93 75 87 106 100 60 60 60 60 75 1999 60 95 95 95 95 106 106 106 65 65 65 65 85 2000 65 35 75 97 100 102 106 105 79 64 60 60 79 2001 60 60 80 80 90 100 106 90 65 80 80 65 80

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Table 4.4. Information on flow of water taken from the Mingechevir Water Reservoir through the Upper Shirvan Canal

Cubic meters/second YEAR MONTHS AVERA S GE FLOW Jan Feb March April May June July August Sep Oct Nov Dec 1991 30 35 29 37 42 57 81 73 30 30 34 22 42 1992 30 42 40 53 59 60 73 73 28 26 35 50 47 1993 30 30 50 73 60 60 74 70 30 30 35 31 48 1994 31 32 55 60 45 60 70 74 35 32 35 25 46 1995 19 40 55 50 60 59 78 -81 46 32 35 40 49 1996 40 40 45 34 49 65 74 47 21 13 23 22 39 1997 25 15 27 41 68 61 60 62 21 23 30 45 40 1998 30 25 43 56 62 57 72 64 33 39 41 35 46 1999 20 25 37 41 43 51 78 68 25 25 32 29 39 2000 24 23 36 49 54 49 53 34,6 13,6 21 19,7 16 33 2001 17,4 17 21,5 39,5 45,5 47,8 54,1 45,7 31,1 34 38,9 26,3 35

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121 01/03/03 Draft 4.2. The Mld-Mugan hydro-engineering complex

The Mil-Mugan hydro-engineering complex was launched into operation in 1972. The hydro- engineering complex was designed for joint use (Azerbaijan and Iran) of regulated flow of the Araz River and for supply of water to 200,000 hectares of imgated lands in the territories of both countries, including 120,000 hectares in Fizuli, Beylaqan, Agjabedi, Agdam and Imishli distncts of the Azerbaijan Republic.

Concrete water-keeping dams with total length of 2.8 kilometers were built at the headrace. This hydro-engineering complex supplies water to crop areas in Fizuli, Beylaqan, Agjabedi, Imnshli and Agdam district through the Main Mill Canal, Upper Mil Canal, and the new Khan Qizi Canal.

The Main Mil Canal was launched into operation in 1976. The canal is coated with concrete. Water is taken from the Mil-Mugan hydro-engineering complex. The canal covers 40,000 hectares of irrigated lands. Flow - 80 cubic meters/second. Length - 37.2 kilometers.

The Upper Mil Canal was launched into operation in 1985. The canal services 20,000 hectares of irrigated crop areas of Fizuli and Beylaqan districts. Flow - 30 cubic meters/second. Length - 20.3 kilometers. The canal is completely concrete-coated.

The new Khan Qizi Canal was launched into operation in 1985. The canal is coated with concrete. The canal covers 60,000 hectares of irrigated lands of Beylaqan, Agjabedi and Agdam districts. Flow - 40 cubic meters/second. Length - 51.0 kilometers. The canal was erected along the old Khan Qizi Canal.

The old Khan Qizi Canal (Govur Canal). Govur Canal is the oldest irrigation canal, which was built in IV-VI centunes in the Mil plain and extended from the Araz River to the Qarqarchay River. Only in 1924, a new canal named after Orjonikidze (which is now the old Khan Qizi) was built based on the bed of the Govur Canal. As a new concrete-coated Khan Qizi Canal was built, the supply of water through that canal to Agjabedi - district was stopped, and it is now servicing Beylaqan district only.

The canal takes water by natural flow from the Araz River near Aimrzeyitli village of Beylaqan district. Length of the land canal is 64 kilometers; water-intake capacity at the inlet is 45 cubic meters/second. In the past, the canal supplied water to 46,000 hectares of crop area in Beylaqan and Agjabedi districts. At present, the canal supplies water only to 34,000-hectare area in Beylaqan district. Currently, this land canal takes only 8- 15 cubic meters/second from the Araz River, since it joined the Main Mill Canal and receives water mainly from the Mil-Mugan hydro-engineering complex.

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Table 4.5. Information on water distnbuted at the Mil-Mugan hydro-engineenng complex in 1996