Asian Development Bank (ADB)

Project Number: 2437-AZE

Bi-Annual Environmental Monitoring Report

Azerbaijan: Power Transmission Enhancement Project financed by Asian Development Bank (ADB)

Compiled by: Ecology and Environmental Protection Division of “Azerenerji” JSC

This report does not necessarily reflect the views of ADB or the Government of Pakistan; ADB and the Government cannot be held liable for its contents.

Azerenerji JSC: Bi-annual Environmental Monitoring Report

Loan number: 2437- AZE 2014

Azerbaijan: Power Transmission Enhancement Project Asian Development Bank

2

Prepared by: Ecology and Environmental Protection Division of “Azerenerji” JSC

Baku, Azerbaijan 2014

CONTENTS

Part I Construction activities and Project progress 3

Part II Environmental Monitoring. 5

Part III Environmental and Social Management. 6

Consultation during the Project Implementation 7

3

Part I Construction activities and Project progress

This report sets out project status on funded objectives by marking the progress in environmental and social issues made up during the second half of 2013. As -Khirdalan transmission line - of about 280 kilometers, providing the main regions of Azerbaijan Republic with electricity since 1946 – is aging, new power transmission infrastructure is required to meet the energy demands. To manage this responsibility, The Azerbaijan Transmission Line Enhancement Project (LOAN NUMBER 2437-AZE) was launched in order to meet the recent technical experience in development, engineering, procurement, construction, operations and maintenance of transmission system by replacing the existing TL connecting the Absheron power station to Mingachevir Hydropower Plant in environmentally safe and effective manner.

Construction of "Mingachevir HPP-Absheron" TL is divided into following units:

220 kV Aghsu-Absheron double-circuits TL

Under this section, the construction has been completed. The relief on the route is plain and mountainous terrain. There is steppe and sparse shrubs on the area. No ground waters were found all along the route in the level of foundations. Route of new TL crosses Aghsu, and Absheron municipal regions.

220 kV Agdash- double-circuits TL

Under this section, the construction activities are in completion stage. The topography of the area is flat terrain.

4

220 kV Mingachevir HPP - Agdash SS TL

Construction activities in 220 kV Agdash SS are in finalization stage. Construction of 220 kV TL route passes through the districts of Mingachevir and Agdash. The relief is lowland plain. There is steppe grassland and sparse shrubs on the area. During the first half of the reporting period mainly stringing works were being continued through the districts of Mingachevir and the assembly of towers was in completion process. The progress of works was improved during the reporting period.

The Status of the Absheron Substation The following activities took place in the project units:

330 kV Switchyard  Installation and connection of one voltage transformer  Testing of fire fighting system  Commissioning

220 kV Switchyard Absheron 5-6 (D14-D15) bays

 Connection of Line Traps in the shifted D14-D15 bays, the main function of which is to present high impedance at the carrier frequency band while introducing negligible impedance at the power frequency. The high impedance limits the attenuation of the carrier signal within the power system by preventing the carrier signal from being: . dissipated in the substation . grounded in the event of a fault outside the carrier transmission path . dissipated in a tap line or a branch of the main transmission path

Shifting and design of 6 LMU’s on D14-D15 bays in order to provide efficient protection against high voltage power effect and transient voltage picks, ensure high level of safety for staff and protection for the power line carrier equipment.

Transformer 3 (AT3)-Hovsan (D11-D10 bays) 5

 Shifting and design of Siemens Circuit breakers for advanced monitoring techniques with increased accuracy and protection functionality.  Shifting of line traps from D06 (Absheron 7) to D10 bay  Testing of cables  Gravelling and cable channel works

The Status of the Agdash Substation

Control building

Installation and cabling activities are carried out in accordance with international standards. Works in Control building are in finalization process.

220/110 kV switchyard

Engineering, erection and civil works are in completion stage. Testing and commissioning works are being continued.

Part II Environmental Monitoring.

Azerenerji JSC is committed to deliver excellence in the operation and maintenance of transmission line networks by means of project support services; operations and maintenance support; detailed design of transmission lines; OPGW specification and project management; technical, environmental and social investigations; landowner liaison and other related project activities. As of 1st January 2014, construction activities are completed and followed by preparation activities for testing and commissioning. In Gubakhalilli village of region, Khosrov village of Aghdash region, region, also Sumgayit Sanaye Govshag part, stringing works have been completed, overhead lines are set for testing in order to avoid interferences on the grid and ensure reliability of supply and conformity with design specifications. 6

Only in few project units, mainly in Mingachevir, assembly of towers, stringing the conductors to the gantries remains in finalization process. Activities are undertaken only during daytime. The main remaining works involve testing and control activities. As most of the work is done manually instead of heavy equipment, environmental impacts such as noise and emissions to atmosphere are avoided.

Audits and network reviews, quality assurance reviews, testing and control operations are being continued to ensure uninterrupted and efficient electric service and adequacy of overhead lines to withstand the specified design load. Assessment of facility unit conditions in accordance with environmental requirements is carried out on a regular basis in order to provide safe and reliable operations.

The qualitative characteristics of atmosphere in the construction area and outside are monitored by “Azerbaijan Scientific-Research and Design–Prospecting Power Engineering Institute” LTD on regular basis and investigated by Ecology Department according to the Technical task and additional survey. During the construction activities since the beginning of the project measurement results showed that: noise and CО2 quantity in the Construction area and environment is within the framework of norms. CO gas remains in the framework of norms in the environment. Majority of works are carried out manually instead of heavy equipment, which in its turn minimizes environmental impacts such as noise and emissions to atmosphere.

Part III Environmental and Social Management.

As harvesting period was ended from June 15 2013, and technical part of works was in completion process, there were no interruptions in activities during the first half of reporting period. Near Qaramaryam village land was left for fallow period and finalization activities were continued as required.

7

Testing and control operations were continued and mainly finalized until the planting season has started. Any considerable social issues were recorded during the reporting period. Local people are involved in temporary works as a support for low-income residents. Since now a number of meetings were carried out continuously on project site and nearby areas with Local authorities, municipalities and people living in nearby areas regarding the status of completion works, environmental and social issues. During the reporting period any environmental constraints, considerable social issues and community concerns were identified. Harvesting season started in October, during the second half of the reporting period. Depending on weather and geographic location, harvesting period was finished in November, 2013 and with the beginning of winter season, land was left for fallow period. During the fallow period testing and network reviews, quality assurance and other activities continued as required.

Consultation during the Project Implementation

As works are in completion process, consultations are being carried out continuously on project site and nearby areas. The main consultations took place on 8th, 15th and 21st of August in Goychay, Qaramaryam village and in Agdash, Arab and Shamsabad villages where people living in nearby areas, workers, and representatives of local municipalities were informed about the completion works during project implementation stages.

At the moment, any potential environmental and social issues were identified including land use, public health and safety (potential impact on low-income populations), sensitive plants and animals, soil erosion, wildlife and water resources. Residents, workers, representatives of local municipalities and local people are given information about the finalization issues of project implementation, next steps and project outcomes.

8

In accordance with ISO 9001:2008 and ISO 14001:2004 Standards, Waste management Plan, Pollution Prevention Plans and management procedures procedures have been prepared and are being adopted in all subordinate bodies. Azerenerji JSC requires implementation of these procedures also from its Contractors (Azenco JSC) and sub-contractors.

9