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3 2~ ~ ~~~~~~E Public Disclosure Authorized Environmente I Assessment Report lVolume 1 Part i: Oblast Public Disclosure Authorized

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Public Disclosure Authorized l

November 2005 NOTE TO FILE: in The following Environmental A sessment Report is one of several that was prepared in support of the Urban Infrastruc re Project for which was under preparation 2005-2006. This is a category project for rehabilitation of various utilities, including under water supply, waste water treat ent, and solid waste. The EAs cover investments variations Component B for Rehabilitatio Investments under the project. Any technical to in the final plans for these sites ill be addressed in the review of the EMPs scheduled works take place in conjunction with t e launch workshop. All subsequently identified with under Component B. must com ly with the preparation of similar EAs in accordance of the Environmental Framework olicy dated November, 2005, before the disbursement the any funds for the specific site. vestments under C. for Energy Efficiency under a Project must comply with the p paration of an abbreviated EA/EMP specified under C. separate Environmental Frame ork Policy prepared specifically for Component Ukraine: Urban In rastructure Project

ENVIRONMENT L ASSESSMENT REPORT

Volume 1 Part

FINAL

r | tovember 2005

Association - Ind strial Waste Management Centre Bakulin, 6 611 6 Kharkiv UKRAINE Tel./fa .: +38 (057) 702 15 78 E-m il: ikoi I PREFACE

U ban Infrastructure Project (Ul Project) and Nistru River/ Protection Pr ject (NR/BSP Project) (GEF s b-project) have been merged into a single Urban In rastructure Project (GEF sub-proj cts are treated under the Ul Project) as their broad er vironmental goals include impro ement of hygiene and health of the population, pr vision of low-cost and sustainabl water supply and sanitation delivery services, and i provement of environmental con tions in Ukraine, with a special focus on the Nistru Ri er and Black Sea basin as a prior y region.

W thin the framework of this integ ted project, the EA Consultant is responsible for pr paration of: * Environmental Framework Poli y (EFP); * Environmental Assessment (E )

E ivironmental Framework Policy D T e Environmental Framework Poli document reflects key provisions of environmental p licies adopted by Ukraine and th World Bank, the results of their comparative review, a d demonstrates their compatibility pn all major issues.

T e existing methodological frame orks for environmental assessment, developed in U raine and adopted by the WorI Bank, have been reviewed as part of the EFP pi eparation. This review reveals a ry close similarity of these frameworks, with only few rrinor inconsistencies, which ha not been encountered in the preparation of e vironmental assessments for sele ted investment projects.

E nvironmental Assessment

T e Environmental Assessment d cuments, presented in this submission, have been p epared according to the World B nk environmental policies (OP4.01) and procedures, vyhich are compatible with the Law of Ukraine "On Environmental Review" and the EIA- r( lated State Construction Stand rd DBN A.2.2-1-2003 "The Environmental Impact A ssessment Content and Compositi n for Construction Projects" (Kyiv, 2004).

T here have been numerous chan s in the list of proposed projects, which should be s bject to environmental assessme . The most recent list of projects, provided to the EA Consultant and dated 12 Octobe 2005, appears to be different from the initial list. ircluded in the Terms of Reference of P t the same time, the Environment Assessment studies were carried out for a number cther projects/locations, included i the expert's findings/e-mails dated 13 May, 11 June, 1 August and 26 August, 2005 (Iv no-Frankivsk, and towns in Kharkiv Oblast: Kupyansk, I ium, Chuguev).

ccording to above mentioned, the resent report consists of two volumes: * Volume 1 - preliminary s -projects identified for inclusion under Ul project (according to the list dated 12 October, 2005). * Volume 2 - addition sub-proj ts reviewed according to expert's findings.

1 he general content of Final EA Re ort is given below. CONTENTS

2 IN TRODUCTION REHABILITATION OF PU ING STATIONS OF THE SIVERSKY DONETS- 6 DONBASS CANAL, OPERF ED BY THE STATE WATER UTILITY "UKRPROMVODOCHERM T" 6 1.1. Current Situation 14 1.2. Proposed Investment Proj cts 1.2.1. Rehabilitation of Water Pum ing Capacity of the Siversky Donets - Donbass 14 Canal, Operated by the Ukr romVodCherMet Utility 16 1.3. Analysis of Potential Envi pnmental Impacts 1.3.1. Physical Impacts 16 1.3.2. Social Impact 18 19 1.4. Review of Alternative Opt ns 20 1.5. Environmental Managem t Plan 1.5.1. Brief Description of Key Enr onmental Issues 20 1.5.2. Mitigation Plan 20 1.5.3. Monitoring Plan 20 21 2 REHABILITATION OF TER SUPPLY AND WASTEWATER SERVICES, OPERATED BY THE STA MUNICIPAL WATER UTILITY "DONETSK OBLAST VODOKANAL" 21 2.1. Current Situation 2.2. Proposed Investment Pro ts 2.2.1. Water Supply: Purchase of ater Meters, Flow Regulators, Well Pumps, Booster 38 Pumping Stations, High-PrE sure Pumps and Reverse Osmosis Installations 2.2.1.1. Purchase of Water eters for Apartmental Houses 38 2.2.1.2. Purchase of Press e Regulation Units (Pressure Reducing Valves and Air 39 Stands) for all 23 0 WSWRF 2.2.1.3. Purchase of Well P mps for 9 ODWSWRF 39 2.2.1.4. Purchase of Boost Pump Stations and High-Pressure Pumps of Various 40 Capacity 2.2.1.5. Purchase of Rever e Osmosis Installations for Groundwater Treatment 40 2.2.2. Wastewater Collection and reatment: Purchase of Air Blowers, Pumps and Mobile 40 Sludge Dewatering/Packa g Plants 2.2.2.1. Purchase of Air Bl ers for 16 ODWSWRF 40 2.2.2.2. Purchase of Sewa Pumps of Varying Capacity for 12 ODWSWRF 41 2.2.2.3. Purchase of Mobil Sludge Dewatering/Packaging Plants 41 2.2.3. Water Supply and Wastew er Treatment: Purchase and Installation of Sodium 41 Hypochlorite Production PI t 42 2.3. Analysis of Potential Env onmental Impacts 2.3.1. Physical Impacts 42 2.3.2. Social Impact 43 44 2.4. Review of Alternative Op ons 45 2.5. Environmental Manage, nt Plan 2.5.1. Brief Description of Key E ironmental Issues 45 2.5.2. Mitigation Plan 45 2.5.3. Monitoring Plan 45 INSTITUTIONAL ISSUES 46 48 I. PUBLIC CONSULTATIO CONCLUSIONS 49

50 NNEX A - Materials on Public Consult tions IN RODUCTION

D netsk oblast is located in South- astern part of Ukraine. In the southwest, the area b rders with Zaporizhzhia and Dnip petrovsk Oblasts, on the Northeast - with Lugansk East - with Rostov Cblast, which is a Russian territory. Southern part of O last, on the 2 o last borders with Azov Sea. Thb area of the oblast - 26.5 thousand kM , which c nstitutes 4.4% of the total area of t ie country.

Total population of oblast is 4.95 mi ion (approximately 10% of the total population of the c untry). Population density is 191 person/kM2, 90% of which lives in the cities and to nships. Population density in Dc etsk oblast is the highest in Ukraine. Also, it is the o last with highest percentage of ur n population.

O last is divided into 18 districts. T re are 49 cities and towns in the oblast. The largest are Donetsk (above 1 million peo le), ' and Makeevka (above 500 thousand p ople), Gorlovka, and ' laviansk. There are 1120 villages in the oblast.

D netsk oblast is one of the most industrially developed oblasts in Ukraine. There are m Dre than 2000 industrial enter rises (800 of which are the major enterprises), s ecializing in coal mining, ene y generation, heavy machinery production and c nstruction materials. More than 00 mineral deposit sites are in exploitation in the o last.

H gh concentration of industry, eveloped agricultural sector and wide transport in rastructure, as well as high popul tion density create a significant impact on biosphere - pi obably the highest not only within e Ukraine, but also all over Europe.

D onetsk oblast is one of the most nvironmentally "tense" regions in Ukraine. The most a ute problems in oblast are the issues of the air and water pollution, as well as a cumulation of industrial (often haz rdous) wastes, especially from the mining industry.

T e city of Donetsk is an administr tive, economic and cultural centre of Donetsk oblast. Conetsk is located on the border Kalmius river. It is located on intersection of major r ilroads and highways. There is a airport in the city. There are 9 districts in the city - B udenovskiy, Voroshilovskiy, Kali skiy, Kievskiy, Kirovskiy, Kujbyshevskiy, Leninskiy, Petrovskiy and Proletarskiy.

T e city territory is 35834 ha, 232 ha are built up territories; 18223 ha are vegetated a eas.

y the beginning of 1990, the cit population constituted 1,1 million people and had a t ndency to increase as a result population migration from the rural areas and other r gions. At present, there is a tende cy to decrease in total population.

According to historical data, the ci was established at the end of 17th century, when a s ttlement of settled Cossacks wa founded, named "Alexandrovskaya sloboda". Further evelopment of the city was conne ted with discovering and beginning of mining of coal eposits in 1820. In 1869, as a, result of merge of several miner's settlements at Alexandrovsky mine, working settl ment Yuzovka was founded. Donetsk was officially amed as a city in 1917. Since 24 it did bear a name Stalino. It was renamed as lonetsk in 1961. T e city can be described as a mult purpose centre. Leading industries are: coal mining, m tallurgy, heavy machinery prod ction, chemical, coke-chemical, building materials production, light industry, as well as f od - processing industry.

T e city is also of great cultural imp rtance: Donetsk Scientific Centre of the Academy of S iences, educational and research i stitutes, theatres and cinemas are located there.

T ere are architectural monuments Donetsk: theatre (1935-40, architect Kotovsky), the c vered market (1961, architect K. Ieldman), the house of the design organizations, the hi h-rise building ,,Trilistnik", and so the monuments: V.I. Lenin, T.G. Shevchenko, ", epokornie", Eternal Glory to the S viet soldiers and victims of German fascist terror, an ot elisk in honour of the economist a d publicist V.V. Bervi.

D netsk has a centralized gas di ribution system, as well as supply of liquid gas in c ntainers. It is primarily used for co king.

2! C imate

D )netsk oblast is located within the continental climatic area of the moderate zone, with cc Id and not snowy winter, hot and ry summer. The average temperature for January is fr m - 40C on the Azov Sea cost to 7.80C in Debal'tsevo area; average temperatures for J ly are correspondently +21, +230 . Duration.of a frost-free period is 160-170 days. The s lm of active temperatures is 2900 31500C.

0 D ration of a period with tempe tures above +10 C is around 170 days. Annual p ecipitation varies from 375 mm Azov Sea coastline to 556 mm on Donetsk range. A ove 70-80% of annual precipita on amount occurs during warm period of the year. S ow cover is not significant (10 19 cm) and unstable. Among the adverse climatic p rameters - winter thawing perio , icings, deep frost penetration with the absence of s ow cover, spring frosts, dry winds which bring frosts in the winter and rains and frequent fc gs in the summer. Donetsk oblast elongs to droughty, very warm agro-climatic zone.

Physical and Geographic Descrip ion of the Region

T ie Donetsk Oblast is located wit n the Central Steppe area. The regional topography c mprises the Donetsk, Azov Sea, d Central Russian Highlands, and the Dniepro, Black Sea and Donetsk Lowlands. The rea has been severely affected by various human a tivities, with numerous mining wa e dumps, quarries, ancient burial grounds, etc.

The variety of topographic forms s resulted in the diverse soil pattern, with the land s rface of the area being affected b progressive erosion.

There are over 110 rivers in the D etsk Oblast, draining into the Black Sea and/or Azov r cea. Of that, 47 rivers have the le gth of over 25 km. The rivers draining the Azov Sea c tchment basin include the Siv ky Donets River with tributaries (Kasenny Torets, Eakhmut, Krasiva, Borova, Aidar, L pan, Derkul etc.), Kalmius, Grusky Elanchik, Mius and Hrynka. The rivers of the Black S Basin include the Samara and Vovcha Rivers with Even the largest ri rs of the Donetsk region are classified into the small t eir tributaries. 2 rver category, with mean annual fl w discharge rate being at 1-2 I/s per km . The water riineralisation is generally high (ov 1-2 g/l) due to the negative precipitation/evaporation ra io and strong impact of mining wa ers, with the total hardness being as high as 30 mg- e iv/l.

T e regional deficit of available wat r resources is covered by flow diversions from the Si ersky Donets River via the Siversi Donets-Donbass Canal.

T ere are many floodplain lakes, rainly in the Siversky Donets River valley, and the Sl iviansk system of saline water Ia es, developed as a result of surface suffosion (the V isovo, Repne and Slepne Lakes).

T e region's recreational potential comprises the scenic landscapes of the Donetsk M untain Ridge, mineral water sourc s, and medicinal mud present in the lakes.

G ology and Hydrogeology of the rea

T e geological and tectonic structur in the area of the Donetsk Oblast is very complex. Its F4 Ccntral and eastern areas are foun d upon the Donetsk Folded Formation, the western C a ea represents a transition zone etween the Donbass Region and Dniepro-Donetsk L wland, and the southern area oc upies the southern slope of the Ukrainian Crystalline S ield.

T e first and second parts of the onetsk Oblast represent the surface of the Donetsk P ateau, affected by erosion and enudation processes, founded upon the Hercynian f Ided formation. The third part lie within the area of the Azov Sea Coastal Highland, b sed upon the Precambrian Cryst line Shield, and the Azov Sea Coast Lowland, based u on the Neogene strata. The onetsk Folded Formation represents a complex a ticlinorium system, comprising a ick layer of metamorphosed Palaeozoic sedimentary d posits, arranged in anticline and synclinal folds, overlain with the Permian and Meso- N eozoic deposits in the subsided eas. The area geology is dominated by coal beds of C arboniferous age, with thickness r ging between 10 to 12 km. These beds represent the rrajor coal-mining target. They are erlain with the Lower Carbon limestone and dolomite s rata, and the chalk and marl ro s of the Cenomanian/Turonian age. Limestone and d )lomite strata are exploited to pr ide raw material for the metallurgical industry. The e traction technique features an op n-quarry process, with the quarries being over 100 m d ep. The Quaternary deposits co prise Aeolian/Diluvium loess deposits, being 5-15 m d ep.

.@a T he geology of the Azov Sea Co t area comprises granites, covered by sedimentary d sposits on the slopes. The ba rocks are overlain with the superficial deposits, c nsisting of loess in the locations f water divides, and sand/pebble in the river valleys. T he base rocks outcrop in many pla es, representing weathered surfaces.

The Donetsk Oblast occupies a we ern part of the Donetsk Hydrogeological Area, limited by the Dniepro-Donetsk artesian b in in the north and the fractured-rock aquifers of the l krainian Crystalline Shield in tho south and south west. The water contained in the f actured crystalline rocks is slightly aline, with the mineralisation ranging between 1 g/l to 3 g/l. The productivity of wells drille into these aquifers is generally low, from 1 I/s to 5 I/s.

iroundwater present in sedimenta deposits widely vary in both - quantity and quality. 1 he upper part of geological cross- ection can be characterized by the presence of fresh- and slightly saline waters. In the sal ised rock formations of perm deposits, salt brines are vfidespread.

4 T e fractured chalk and marl aquif( rs of the Cenomanian/Turonian age, as well as the L wer Carbon limestones are most saturated with water. These aquifers are utilized for w iter supply of many settlements an industrial enterprises.

A a whole, Donetsk oblast ca be characterized by technogenically disrupted g oundwater dynamics, caused by g oundwater use for water supply, mining industry, etc. T e restructuring of coal mining ind stry has lead to termination of mine waters removal in rr any cases, which often causes ele| fation of groundwater level and flooding. Therefore, to rE duce these negative effects, leak es from water supply and sewerage networks should b reduced to a maximum possibl extent through rehabilitation and modernization of w ter supply and sewerage facilities

T e current geo-morphological st ucture has been mainly shaped by the tectonic rrovements that occurred during e Neogene and Quaternary periods. The Donetsk P ateau, which represents a signific nt landscape feature, is dissected by numerous deep e osion valleys with the depth of up 150-200 m. F 1. REHABILITATION OF PUM ING STATIONS OF THE SIVERSKY DONETS- DONBASS CANAL, OPE RATED BY THE STATE WATER UTILITY "UKRPROMVODOCHERME,

1.1. Current Situation

. ., ;.s ., w State Water Utility, responsible for centralized water supply (SWU UkrPromVodCherMet) was established in 1930 with the purpose to eliminate water resources deficiency in Donbass. The SWU UkrPromVodCherMet is responsible for centralized water supply of the industries !.&l ;4 - i j-,_ ;X_4 minir-ng and smelting industry, other and population of Donetsk oblast. Figure 1 represents a viewof a headquarters building.

legal 4a 4 ; !i 2 't T SWU UJki-PiorPrVodCherMet acts as a person t is governed by Donetsk oblast state ____ -*> _ _ administration it is state-owned and self- funded ;raterrmrise SWU UkrPromVodCherMet Figure 1.1. Main Building of the SWU Ls xi ruiti-acttvty enterprise with the following "UkrPromVodoCherMet" iDLiSK k nd& c- activity:

. Waterdiversion Wil. r . alEl V. ; l.gions. * Long distancer. ,,r_> * -cr lints and pumping station(s) services: . Centralized -wvate. - ess arnd .vater of cities, settlements, industry. collective t l-ir'ri-tF nl-societies aInid other consumers on a contractual basis; . Preparation f oot -iti,-, t6&f " t and realization of measures aimed at water res- :. . -.

I addition. the . c .- . ., 'A ' ;

* Water quaitv -* jSn!.sing 'i i[, ' " a water quality research P5 laboratory 1e:lio1 .r . -'-. i: Jlcur- dorrwenlafio-r performance of research, . ~adjustment ne¢-ill-l,,., iipr ...... rs 1 .... e. ''tet'.. pOsx. . at'tl- . Developme* w i :. Id oll- 0 r ' ictivities, land inventory; . Carrying ou, e' . -o . Metal mould:-{ vi . Manufactuln;:m .. - ,res. valves. equalisers. air cocks, IP 't e'

s of 01 o. - sions, which cannot act s "legal pc . . .. ed by the general director f the enta'iIVherMet,, is presented in Ffigure .;--- SWU "UkrF omVodCherMet>

co oo CDo 0 > :>>E c E U

Uz cc e cnt enterpriseo _ E > co -C " - _~~~~~~~~~~~~~~~~~=70 Z 1 t>~~~~~~~~~~~1 > equipment,eccm Up to o 0 ~~~CZ) 0Z CZE

. District branches - structural sub visions of SWU seUkrlPromVodChenestr o k

aCR),

CD -- I- c]) " ) --> ~ ~

ar co b codct b a specia d n on w Z - si segent- C~~~~~~~~ 0.-'0 - CZccitacertifcate an-d c 4- C~~~~~)~~~OC

Figure 1.2. Organizationa~ Structure of SWU "UkrPromVodCherMet>>

Tie enterprise consists of:

deelpeCentral mechanical b,ythe expert repair of wor CZ entepiehops (CMRW), Insuatin which work areE in chargeo chneleerec of providing the spare parts, necessary for repai f non-standard equipment, manufacturing of valving equipment, etc. Up to date, esign-budget documentation and hermetic sealing methodology, intended for insul ion of channel at emergency segments are developed works for channel emergency segments are MR ~by the. ~experts ~ of~ the ~enterprise.agrcutu Noomchilvso* IVLnsulationmaaeetrnh(NvM) to be conducted by a speci divers and construction workers brigade without interruption of water delivery se ices. * Donbassvodoremont (DBVR), vhich carries out special repair-construction works on water supply facilities and water ipeines' Design-budget documentation and hermetic sealing methodology, intended r insulatin of channel at emergency segments are developed by the experts of thi enterprise. Insulation works for channel emergency segments are to be conducted b a special divers and construction workers brigade. * Central control-research and esign and survey water laboratory, which controls the activities of 20 water I~ oratories, located on filtering plants in Gorlovsky operational department of wate supply and wastewater removal facility ODWSWRF and having corresponding accre itation certificates. • Novomichailovskoe agricultur I management branch (NovAMB). * Gorlovsky ODWSWRF, which, as established on July lst, 2004, in the framework of the program "Donbass Water" n the basis of property complex of the communal enterprise "Vodokanal" (the towri of Gorlovka), provides water supply and wastewater removal services for the town of ( orlovka.

A so, there are 8 structural sub visions of SWU "UkrPromVodCherMet,, - district bi anches, which carry out water tre tment services and its transportation into dry regions ol oblast. Namely, these are:

S aviansk district branch, which the main branch of SWU , p ovides population, industry and a icultural sector of the towns of Slaviansk, Kramatorsk a id Druzshkovka with potable a d service waters. This branch carries out water tr nsportation through Siversky Do ts-Donbass Canal in order to provide dry regions of t e oblast with water. At presen there are the following main water supply and h drotechnical structures are at the alance of Slaviansk district branch:

. nd Donetsk water main with the ength of 61 km and total productivity of 373 thousand 2 3 m3/day and two filtering plants w h total productivity of 270 thousand m /day; . Beliansk water main with produc vity of 14 thousand m3/day; . a segment of the Siversky Done -Donbass Canal with a length of 23.8 km; . 2 groundwater intake facilities ith 104 artesian wells with total productivity of 197 thousand m3/day; 3 . 14 pumping stations with total pr ductivity of 205.5 thousand m /hour; . 3 water reservoirs with total cap ity of 445.81 million mi3; . hydroelectric power plant with pr ductivity of 3680 kW.

segment of a Siversky Donets- onbass Canal, maintained by the Slaviansk district b ranch, is presented in Figure 1. . One of the pumping stations, maintained by the Slaviansk district branch is present in Figure 1.4.

Chasovoyarsky district branch, which maintains corresponding water supply and hydrotechnical constructions, provi es population, industry and agricultural sector of the t wns of Artemovsk, Dzerzhinsk, nstantinovka, and Chasov Yar with potable and service waters. This branch so carries out water transportation through Siversky I onets-Donbass Canal. A 45.8 kr long segment of a channel, 5 water mains with total l ngth of 200.7 km, Belokuzmiinov ky groundwater intake facility with 45 artesian wells, having total productivity of 13.8 tho sand m3/day, 2 filtering plants with total productivity of 3 E0 thousand m3/day, 8 pumping st ons with total productivity 8.8 thousand m /hour and 2 v ater reservoirs with total capacity 3.9 million m are also maintained by Chasovoyarsky cistrict branch.

N - - -

lA ~~~t-<

Figure 1.3. The Siversky Donets- )onbass Canal Section Operated by the Slaviansk District Branch

t _ 1ti F _t .N Dzershins -

Figure 1.4. PumpSinqrstationetN 1-as(Level SecioOperated by the SlavianskDitc

orlovskydistrh~ ~ ~ Dsti:

te ¼, F- Xlants withi pr ductivity of 201 thousand mJ'hou and a water reservoir with capacity of 5.6 million m- are also maintained by Gorlovsky di trict branch. Arched junction of the Siversky Donets - D nbass Canal r-,air.-lined b, the C orlovsky ciist!IcI tiianch is presented in Figure 1.5.

' .

~~....._......

Figure 1.5. Arched Junction of t he Siversky Donets - Donbass Canal. Gorlovsky District Branch

E nakievo district branch r..3h raintainss .crresponcding .vater supply anr-o h drotechnical roristructions p ., - 6 towns, . Dornetsk oblast. namely Enakieveo T rez, Shakhte-sk Snezshnce DL1Lai tsevo KiovSkoe with potable and service v aters. 3 filterinog Dlants with :t a p'oductivity o' 450 thousand rn'7hour. 9 pumping

'- ' reservrir's with total s ations with total uroductivity * '> thousarr - water c pacity of 25.5 mnillion m arc] ! atc-- ma!ns with total ength of '287'. km arc also

aintained by Fnakievo distritt j-l v- i

Nakeevsky district branch hvh- .de;s popul,ac inm)usy i.-d agriciltural sec tot .- t e towns of Makevka Hartsyzc. iysk uZgreCl /'1a;Ihd-a anovkoParitele'rmopnovk'Prld vyith potable and service waters i km cong segieni - SiverskV Donets Donbass.

1san p rclav stationr Canal, 2 filtering plants Io't !otal . Ititt\- f 300 thouv day 9c with total productiMtv 1t1 9 -hc, ., ' . -i -II- total capacty 5 .8 million m Ind .ate-~an* 'i ; 't '-.St' t''trnr'n ' Nlakeevsky d 1i'.z-

Conetsk distri tnra-cn I c nstructions ''t -- Y asinovatayva, I particular !. ttousandm IM M ater rese'- s ation.

Krasnoarme.:; s rvice watE-.,- E obropolie , b anch msrrlw- p imping stations with total produc vity of 17.8 thousand m3/hour, 488.7 kilometres of w ter mains and water reservoir with total capacity of 25 million m3.

M ariupol district branch, whi h maintains corresponding water supply and h drotechnical constructions, provid s population, industry and agricultural sector of the tc wn of Mariupol with potable an service waters. In particular, this district branch rraintains 2 filtering plants with tot| I productivity of 290 thousand m3/day, 13 pumping s ations with total productivity of 1 thousand m3/hour, 2 water reservoirs with total c pacity of 105.6 million m3 and wat r mains with total length of 211 km.

Water is delivered from t e Siversky Donets river t rough Siversky Donets- Donbass Canal and f rther, through Juzshno- ,,_ _ Donbassky water main to _ IVariupol. Along the way, -S water is elevated 260 m -s - , h gh, which is executed -- *Aiththe help of 6-level - s stem of pumping - s ations. A snapshot of : S versky Donets-Donbass . Canal is presented on Figure 1.6. Fl ure 1.6. The Siversky Donets-Donbass Canal

The Siversky Donets river, 20 wate storage reservoirs and more than 100 artesian wells -s rve as water supply sources for WU "UkrPromVodCherMet>,". 2 million m3 of potable vAater and 0.4 million m3 of servicc water are daily provided to the consumers by SWU <"" is holding a monopoly for centralized water -s pply services.

As of 01.10.2005, SWU " Uk romVodCherMetP," maintains water supply and hydrotechnical structures with a t tal value of basic production assets constituting 1 E billion UAH, in particular:

. The Siversky Donets-Donbass anal the main source of water supply Vrf Onrneisk oblast, with a length of 132 k . throughput capacity of 37 - 43 m-/secorv -j c- average discharge of 1106 milli m-year;M . 17 water reservoirs with a total v )lume of 665,1 million m', 3 . 17 water filtering plants with a d sinQ! . ._L ity of 2 79 million m /day.

5 pumping stations and 23 water U' r etworks with a total length of 20> - niaintained in order to provid , ater supply services to consurne r- " UkrPromVodCherMetb also ma atw,- ')ower supply and dispatcher-tecr-.~-: gi. c ommunication installations, electrc tfr r?otection and transportation units. The - c. onetsk oblast water supply by SW . S-P'oamVodCherMeto is presented !n, i~~~~~~~~~~~~~~~~~~~~~~r---- D Z I'1 r,I - -

F gure 1.7. The Layout of teDnsk Oblast Water Supply System Operated by the SWU" krPromVodCherMeto

A, of 01.01 .2005, there are 90 umping stations with 75 among them performing supply srvices nd having total productivity of 39957.6 thousand CE ntralized water 500 ml/day. There are 17 filtering sta ons in the system with productivities of 5 to m3/day. There are 94 wate reservoirs within the centralized water supply system thousand of with capacities of 400 to 10000 ~.Total length of a water distribution network G rlovsky ODWSWRF constitutes 1 72 km. a T iere are 687 pipeline connections water mains and 43279 pipeline connections to wter distribution network of Gorlov ODWSWRF. 7 In order to provide pumping station , working on a channel, with stable energy supply, sub-stations for 110/1 0 kV and 3 sub-stations for 35/6 kV are maintained. 18 el actric on el ctric transformers for 100-35 kV ith total power capacity of 437.8 MVA are installed these substations. Total length of e!ctric power transmission lines is 45.2 km.

Tie terms of operation of electric e uipment on a channel have exceeded the normative electric tE rms 1.5 times. This causes freq ent failures of equipment: 17 large vertical rrotors had two major repairs each,' other motors had one major repair each. power last 4 years, because of ing, windings of three 3/6kVarout of four installedminaied21 During elcticsu-saton fr 1010kV lnd3 ubsttinsfo in the trA nsformers 110/10 kV, with 20 M A power capacity were damaged. In particular, y ar 2000, one of the transformers id undergo a major overhaul. Morally and physically in equipment is being operated by. For example, there are oil switchers installed o solete on s itching centres, which are out o production for several decades already; isolation rIlay protection switches has dried p, etc. T ere is a system of scheduled pre entive maintenance repairs across the energy utility u it, however, it does not guarantO uninterrupted energy supply and thus, continuous w ter delivery by the pumping statio s system.

In accordance with acting legislatio ,tariffs for water supply services, provided by SWU << krPromVodCherMet,, are regula d by the State. However, under current conditions a d tariffs, SWU ",UkrPromVodCher et>> in the year 2004 had negative profits.

S ructure of expenditures, incurred y SWU "UkrPromVodCherMet> for centralized water s pply services for the 9 months of e year 2005 can be presented as follows:

. electric energy expenses- 53.5% . employee wages - 12.3%; . social insurance deductions - 4. %; . amortization - 1 1%; equipment repairs - 8.3%; S * tax deductions - 0.7%; * security guarding expenses - 20/ . additional materials and spare p rts- 0.9%, * fuel costs - 1.5%, . services of other organizations - 1.4%, . expenses for cleaning materials- 1.8%, . other expenses - 2%.

As can be seen from the above o arating cost information, energy expenses is a major p rt of the cost price for water supp services. Because of the increased tariffs for electric e ergy, expenses for water supply ervices are also continuously increasing. In response tz this matter, energy-saving poli y (rehabilitation of water mains, optimal hydraulic c nfiguration of a water supply nel ork (pipeline and pump characteristics), increase of e ergy efficiency of the equipme t, introduction of multi-tariff water meters, etc.) is i troduced at the enterprise. Redu ion of electric energy cost fraction will allow to reduce t e total cost of water supply servic s.

sof5 01.09.2005, there were 5939 eople employed by the enterprise. 1.2. Proposed Investment Proje|

T e proposed water supply rq abilitation project for the State Water Utility "L krPromVodCherMet" comprises th following components:

1.2.1. Rehabilitation of Water Pu ping Capacity of the Siversky Donets-Donbass Canal, Operated by the Ukr romVodCherMet Utility

T is project component involves th replacement of the Level 1-4 Rising Pumps serving t e Siversky Donets-Donbass Can , with the total cost of 26 million USD, which will be u ed to finance both domestic and e ternal purchases.

T e project investment components ire presented in Table 1.1.

T ble 1.1. Investment Project Co ponents

| CostItem Proportion of the Total st, % ______P roje ct C o 1 Design and investigation works 6.4 2 Preparatory works (old equi ent dismantling, basement 2.3 preparation for new pumping stati ns) 3 Purchase of 1_1pump units 70.9 4 Installation of purchased pump un s _ 17.7 5 Testing and commissioning of new installed equipment 2.7 Total: 100

Tie planned duration of implement tion phase, including the purchase of new equipment, p ased decommissioning of old p mping equipment, installation and commissioning of n w equipment, is 50 months. The roposed project involves the phased replacement of 1 1 pump units (Rising Levels 1, 2 3 and 4), handling flows conveyed by the Siversky onets-Donbass Canal. Table 1.2 contains the list of pumps proposed to be replaced u der the project.

able 1.2. List of Pumps to be Re laced

Pump Units Phase 1 Phase 2 Phase 3 Level 1 pump unit 2 1 1 Level 2 pump unit 1 1 _ Level 3 pump unit 1 1 1 Level 4 pump unit ____ _ To, I for a Phase 5 4 2 ______Grand Total 11 __

I is proposed to purchase the follo ing equipment:

* Level 1 pump station: the req irement is for four pump units, including the provision for the replacement of pump ur ts No. 1,4, and 5 at the Canal WPS No. 1. The latter three units have the followin characteristics: capacity W=6,548 kW, flow rate Q=26,700 m3/h, head H=80 m) The fourth replacement target is the speed-regulated pump unit No. 7 at the Canal PS No. 1a, with the following characteristics: flow rate Q=10,000 m3/h, head H=80-1O im). Level 2 pump station: two p mp units are required, including one unit (flow rate 0=26,700 m3/h, head H=80 m) o replace the speed-regulated pump unit No. 4 at the

14 Canal WPS No. 2; and the sec nd one (capacity W=6,974 kW, flow rate Q=10,000 m3/h, head H=80-100 m) to repla e the pump unit No. 7 at the Canal WPS No. 2a. 5.- . Level 3 pump station: three pi mp units are required, including two units (capacity W=3,210 kW, flow rate Q=24,00( m3/h, head H=75 m) to replace pump units No. 1 and 3 2 at the Canal WPS No. 3, anc one unit (W=5,63 kW, Q=18,000 m /h, H=56 m) to . replace pump unit No. 8 at the C nal WPS No. 3a. . Level 4 pump station: two p p units are required, including one unit (capacity W=1,376 kW, flow rate Q=18,0 m3/h, head H=24 m) to replace pump unit No. 2 at 3 the Canal WPS No. 4, and an ther one (W=765 kW, Q=10,000 m /h, H=24 m) to replace the speed-regulated pu unit No. 4 at the Canal WPS No. 4a.

T ie estimated cost of new pump un .s is 18.7 million USD (11 pump units, 1.7 million USD et ich).

. It is planned that the UkrPromVodC ierMet Utility will contribute to the financing of certain p oject costs.

;l PeT expected annual energy s; ing, resulting from the replacement of pumping e luipment, is estimated at 75,062,0 0 kW per year with pump unit efficiency being at least 90%.

I P 1.3 Analysis of Potential Enviro mental Impacts

In line with the World Bank EA pq icy and procedure, the proposed project and all its c ,mponents are classified into the e vironmental category B'

1.3.1. Physical Impacts

T e proposed investment project i volves the replacement of Level 1-4 water pumps o erated in the system of the Si ersky Donets-Donbass Canal, including the design in estigations, purchase of efficien pumping equipment, preparatory works associated w th the dismantling of old pump , preparation of basements for new pumps, and ir stallation of new pumps at the exi ing WPS sites.

T ie implementation of proposed p ject would ensure a significant reduction in energy c sts, reflected in the customer t iffs, as well as improvement of service quality and r( liability, and overall environmenta! performance of the Siversky Donets-Donbass Canal s5fstem.

T ie planned activity would mainly c nsist of works associated with the replacement of old ir efficient pumps with new energy-e icient units, to be carried out within the existing pump s ation buildings. These works are t likely to affect the existing ecological equilibrium in tl e locations of existing WPS, r would it cause any environmental pollution or d terioration. The potential physica impacts of the proposed investment project are likely t be insignificant, being limited to t dismantling/installation phase.

Local geology: no adverse effect are likely to arise due to the fact that all pumping e :uipment subject to replacement i located within the existing WPS buildings (WPS's No. 1 1-a, 2, 2-a, 3, 3-a, 4, 4-a), i.e. in olation from the surrounding geological environment, a id the equipment sizes and con ruction works involved are not likely to produce any a dverse impact. The proposed proj t does not entail any additional land acquisition.

I Vater resources: the overall pr zct impact will be positive as a result of improved e vironmental safety of local wa r bodies, achieved through the rehabilitation and ir nprovement of water supply systn elements. Another significant benefit relates to the ir iproved control and minimization the potential for accidental releases due to failures in t e canal operation.

P Iso, the proposed project would h Ip reduce water losses in the transmission system of t e Siversky Donets-Donbass Can

Ambient air: no adverse impacts re likely to arise, since all works associated with the r habilitation of water pumping stati ns do not involve any harmful emissions. l xisting utilities/infrastructure: verall impact is likely to be positive, since the iinplementation of proposed reh ilitation measures would significantly improve the cperational reliability of pumping apacity operated in the Siversky Donets-Donbass system and reduce energy costs d to higher efficiency of new pumping equipment.

OP4.01 Eni/)mn(F,ud 4 Ta ble 1.3. Energy-Saving Target , Planned to be Achieved by the UkrPromVodCherMet t tility as a Result of Pump Capacity Rehabilitation in the S versky Donets-Donbass System

Actual Actual yearly Expected yearly Expected level Proposed capacity f energy Proposed energy of energy Eana Canal's replacement pumps demand, new pump consumption saving as a n nes WPS targets operatI thousand capacity, after result of pump (pumps) sueltan tkW/h kW replacement, replacement, ______usly, kVl thousand kWh thousand kWh No.1 No's. 1,4,5 21828 191213 6548 3 un. (115,035); ______~~~~~~2un. (38,031)- 30661 Nol1a I No.7 ____7487 Total for Level 1 W 'S 191213 160552 No.2 No.4 _7974 11 No.2a No.7 23076 202146 6974 3 un. (130928); 20654 ______2 un. (42590) Total for Level 2 W 'S 202146 181492 No. 3 No's. 1, 2 7040 _ 61670 3210 56239 11I No. 3a No. 8 | 6877 60242 5563 48732 16941

_____ Total for Level 3 W S 121912 104971 IV _ _No. 4 | No.2 | 1876 _ 16433 1376 12054 6806 No. 4a | No. 4 T11042_ 9128 765 6701 Total for Level 4 W 'S 25561 18755

__ TOTAL: | 11 540832 465770 75062

T e above estimate is based on the ata available in the operational control service of the U rPromVodCherMet Utility. Accord g to this estimate, the energy efficiency is expected to increase from 81% to 90%, and the level of energy saving, starting from the Project Y ar 3, is expected to be at 26.0 m lion kWh, to achieve the highest level of 75.1 million k\ h by the Project Year 6. The ac eved reduction in energy costs would release funds, re uired for loan repayment, without ny increase in water tariffs.

Tle implementation of proposed pr ect would help reduce the costs of repair and spare p rts, improve the technical state o canal elements and water quality as received at the fil ration plants, and minimize the po ntial for adverse effects associated with accidents. OIly new pumping equipment will b installed, to be supplied from the manufactures with al relevant documents, describing t ir environmental performance characteristics.

L cal climate, flora and fauna: iven that the proposed project does not entail any a ditional land allocation, and will implemented in the built-up area, there will be no a ditional loss of habitat, and no da age to vegetation cover in the surrounding area will FM b incurred. 1. .2. Social Impact

T e replacement of 11 old and obsolete pumps at the WPS's operated by the U rPromVodCherMet Water Utility would provide significant social benefits due to i proved reliability and constancy f water supply service in the Donetsk Oblast, to be ac hieved through the introduction f energy-saving technologies and equipment. The e pected reduction in energy co umption (by 75 million kWh/year) would provide si gnificant savings, estimated at 5 0,000 UAH per year. Additional savings would be a hieved as a result of reduced w er losses. It is expected that the money required to rE pay the loan will be released by t se savings, and no increase in customer tariff will be rE quired.

T 1e improved level of operation an maintenance of the Siversky Donets-Donbass Canal, a well as better quality of water t atment, transmission and distribution service, would iprove the social, epidemiologic I and environmental situation in the region, and c ntribute to the implementation of nergy-saving practices in the municipal sector.

T he proposed project does not enta any involuntary resettlement and will not produce any a Jverse effect on the regional cultul 1I assets.

;~~~~~~~~~~~~~~~~~ 1.. Review of Aiternative Optio s

A continuing 'status quo' scenario wil result in:

* The inability to ensure the sustai able water supply service in the Donetsk Region with the existing pumping capacity of the Siversky Donets-Donbass Canal system, especially in the light of regiona development prospects in industry, agriculture and municipal sector; . The inability to implement energ saving strategies, aiming to reduce the energy costs associated with the operation an maintenance of the Siversky Donets-Donbass Canal and water supply system in gene a; . The inability to achieve a reducti n in energy cost per product (potable and technical water) unit; . The need in increasing the I vel of water tariffs for the UkrPromVodCherMet customers.

T e proposed project solutions are based on the modern energy- and resource-saving p actices, which have proved very seful in Ukraine and abroad. The implementation of p oposed project is seen as the st feasible way of improving the reliability of water s rvice and preventing further det rioration of environmental and social situation and hi man health in the region.

T ie proposed rehabilitation of Level 1-4 water pumping stations represents an urgent step th at needs to be made to improve t water transmission capacity of the Siversky Donets- D nbass Canal, ensure the environ entally safe operation of water supply system in the D Dnetsk Region, and minimize th potential for accidents that may result in negative ei vironmental consequences.

g

19 - 1.. Environmental Managemen Plan 1.5.1. Brief Description of Key En ironmental Issues

T e results of this environmental as essment indicate that the implementation of proposed in vestment project would not pr duce adverse impact on the adjacent industrial, a! ricultural and municipal infrastru ture, surface and underground utilities; recreational a eas and cultural assets.

It is expected that the proposed reh bilitation measures for the existing pumping capacity o the Siversky Donets-Donbass Ca al will provide significant environmental benefits.

1 5.2. Mitigation Plan

T e proposed investment project i olves the rehabilitation of water pumping capacity of tt e Siversky Donets-Donbass Can system, as well as a suite of energy- and resource- ; si lving improvements.

T e ultimate objective of this proje t is the rehabilitation of existing pumping capacity of t e Siversky Donets-Donbass Cana that would ensure the stable and reliable operation of %ater supply service in the region, and energy-saving improvements that would result in ir proved quality and reduced co, of service, as well as minimized potential for the a verse environmental impacts.

The proposed performance targets clude:

*. 1 Adequate level and quality of w ter supply service provided to customers, particularly the population. 2 Reduction in specific energy aiid resource consumption in the operation of water transmission and distribution se /ice. 3 Reduction in water losses, both otable and technical. 4. Constancy of service. 5. Improvements in the quality of t water put into supply, to ensure that existing potable standard is met. 6. Improved environmental safety f the Siversky Donets-Donbass water transportation system.

1.5.3. Monitoring Plan

I he monitoring programme will nee to be introduced and implemented by the Borrower to ensure compliance of all propos d rehabilitation activities with existing sanitary and environmental standards.

/,t this stage, there is no provision f r the independent monitoring to be carried out by non- covernmental organisations.

(liven that the proposed works ill not affect the environmental media, no detailed rionitoring programme ha been developed at this stage. 2. REHABILITATION OF WA ER SUPPLY AND WASTEWATER SERVICES, OPERATED BY THE STATE UNICIPAL WATER UTILITY "DONETSK OBLAST VODOKANAL"

2.. Current Situation

T e State Oblast Municipal Utility (S MU) "Donetsk Oblast Vodokanal" was established in A ril, 1966. The main source of r w water for the Donetsk Oblast Vodokanal is the Si versky Donets - Donbass Canal.

D netsk Oblast Vodokanal provides water supply and sewerage services for 33 towns, 55 to Nnships and 26 villages. Daily a erage water delivery to consumers constitutes 412 th Dusand m3 , including 50 thousand n from privately owned sources. Total actual delivery c pacity of wastewater treatment pla ts is 174 thousand m3/day.

Tl e total length of water supply netv ork of Donetsk Oblast Vodokanal is 7770.6 km; there are 115 pumping stations. It is round 571 thousand consumers. Donetsk Oblast V dokanal provides a variety of se vices. Except for water supply and sewerage utility sE rvices, it also provides:

. diagnostics of pipelines and oreholes, using television probes, floating digital diagnostic probes (for sewer coll ctors) and self-propelled video devices for inspection of pipelines; . sanitation and facing with a cem nt-sandy solution of steel pipelines with diameters of 426-1020 mm; . trenchless dismantling of pipelin along with installation of new pipes; . design, maintenance, assembly, adjustment and alignment works on measuring and water meter devices; . potable water quality control, as elIl as surface water and groundwater quality control; . wastewater quality control; . calculation of MAC (Maximum Al owable Concentrations) of pollutants, discharged into sewerage network and natural re ervoirs; . consulting, expert-analytical, info mation, scientific-research and marketing services; . installation of measuring devices, . installation, repair and adjustme of chlorinator devices, ventilation installations and air turbo-blowers; m metrological consulting services with the use of metrological flow meter device for research, testing, certification an checking of flow meters and water counters; . determination of leaks in pipelin with use of the acoustic equipment.

D netsk Oblast Vodokanal provide water supply and sewerage services to three groups o consumers:

1St group - population (living in dwellings of any pattern of ownership), fruit farming societies; * 2nd group (non-industrial) - inst utions and organizations, which are financed from budget funds, dairy and ba ing industry, communal enterprises, and those enterprises, which, along with th ir primary activity, deliver heat energy and hot water to population, agricultural consur ers, etc. * 3rd group (industrial) - any other nterprises and organizations. G Dneral level of reimbursement at th | Donetsk Oblast Vodokanal" has decreased in recent y( ars, as a result of increased cost of energy, higher expenses for employees' c (mpensation, etc. Addition of new inits to existing water supply and sewerage networks h, is lead to an increase of expenses or their maintenance and refurbishment.

T e Donetsk Oblast Vodokanal act as a legal entity of community property and has the fc llowing structure:

. 23 operational departments (SR ,E), providing water supply and sewerage services in settlements of Donetsk oblast; . data processing centre (Donetsk . maintenance management depa ment (Enakievo); . motorized transport division (Do tsk).

T e Donetsk Oblast Vodokanal", rE oresented by its 23 structural departments, provides po pulation and industry of Donet k oblast with potable water. The Donetsk Oblast V dokanal" buys potable water fro,n State Water Utility (SWU) "UkrPromVodCherMet" (E8% of the total water supply) and Jelivers it to consumers across Donetsk oblast. Some s ructural departments use ground, ater as an additional source of water supply, which c nstitutes 12% of the total.

K.acHbiA nilMaH Donetsk Oblast Vodokanal consists of 23 operational departments of water supply

&2Y2i_I¢fli. AHCK'2 and wastewater removal facility

_o__ e__TeM0I (ODWSWRF), which provide 0s . OMtzTaHTconsumers in Donetsk oblast KHCKKnacHaFIae-VflhlMi1TDI 1HIC with water supply and

~ !%AB , EH_ _ sewerage services. HOiBoaoBia AIwooBCKoe Cen,Aoso ,9 ,' oX Existing ODWSWRF's VP coverage areas do not coincide rOKfl" 0 ii 0oK8Ti" Yo H with administrative-territorial

flOKV4aeBCK & divisions of Donetsk oblast. BonHoBaxa* CTaOo6eC er,e Locations of the Donetsk TenbMaHOBO Oblast Vodokanal Utility and its 23 operational departments are HoB013OBCK shown in Figure 2.1.

igure 2.1. SMWU "Donetsk Obla t Vodokanal" and its 23 operational depa ments D scription of ODWSWRF's Opera ing within the Donetsk Oblast Vodokanal Systemii

Al deevka ODWSWRF

A, deevka operational department f water supply anci vastewater remO\vi . I.: e tablished in 1993.

S jrface water resources. Avd evka ODWSWRF purchases water tcm 9W "L krPromVodCherMet". Water, whic is stored in the reservoir, is directed t,- th ough the city distribution network.

G roundwater resources. There is groundwater tield, called 'Brooklin WE;a1L( !,vJ+r cL rrently not in operation, because q on-going reconstruction.

Water delivery into the distributio network. Water is delivered to the town m_-)Avrd th ough the pipeline (D=800 mm), hich is connected to the right line of the wmatler Fn hir ( =1200 mm), owned by SWU "U rPromVodCherMet" Total length of a vwaler!- n twork is 112.2 km. Daily water c isumption by the town of Avdeevka is 18).. thousarnc' Capacity of a water reservoir i: 4000 mn' Anniual sanitationi and disinfectionr+ !r r servoir are performed.

I lules for industrial sewage -- ischarge into the sewer ; etwork on ODWSWRF were . (stablished in 2003. The rules L .ere agreed with 'asinovatskaya district anitary-Epidemiological .$tation and Donetsk regional cological inspection.

ewage treatment. Vastewaters are directed on a ewage treatment plant OAO Avdeevka by-product coke - lant" which provides !vastewater treatment services or Avdeevsk ODWSWRF. A hoto of a wastewater umping station, maintained y Avdeevka ODWSWRF is gure 2.2 Wastewater pumping station hAkir resented in Figure 2.2. Avdeevka A nvrosievka ODWSWRF

S rface water resources: There ar no surface water resources.

G oundwater resources: There a e 12 artesian wells, which form 4 water - intake fa ilities. Total production rate of the e water - intake facilities is 5000 m3/day. Each water- in ake facility has a 2nd level pumpi g station, water reservoir, built-in chlorination units, w ich utilize liquid chlorine.

'Aater delivery into the distribu ion network: Water is delivered to the town of A nvrosievka from a water intake fa ility #1, located in Leninskoe village (5 artesian wells w h total production rate of 2400 m /day and Beloyarovskoe water intake facility (3 a esian wells with total productio rate of 1800 m /day. To the Novoamvrosievskoe to nship water is delivered from th water intake facility #2, located in Krasnovka village artesian wells with total productio rate of 400 m3/day). To the township of Kuteynikovo w ter is delivered from the water int ke facility # 3 (1 artesian well with production rate of 4 0 m3/day). There are sanitary Fotection zones established around all water-intake f cilities and artesian wells. ODWS RF owns 159.3 km of water mains and distribution li es.

I dustrial wastewaters: The sew network of the town of Amvrosievsk is self-flowing, tt ere are no wastewater pumping ations (WPS). Total length of a network is 13.4 km. S werage network of Novoamvro evskoe township has total length of 8.7 km. It is r presented by self-flowing and pres ure sewers.

\ astewater treatment: Treatmen of municipal and industrial sewage of the town of A nvrosievka is conducted at the se age treatment plant #1 with design capacity of 11000 3/day. Sewage treatment plant ha a 2-level design, including mechanical and biological tr atment. Liquid chlorine is use for sewage disinfection. Treated wastewaters are d scharged into a Sukhoy Log valle connected to M. Elanchik river. Actual productivity of w stewater treatment plant is 2300 3/day.

T eatment of municipal and indus ial wastewaters in Novoamvrosievskoe township is c nducted on sewage treatment lant #2 with design capacity 900 m3/day. Sewage tr atment plant has a 2-level des gn, including mechanical and biological treatment. T eated wastewaters, after secon ary settling tanks, are discharged into Dolzhikova v Illey, connected to Krynka river. A tual productivity of this wastewater treatment plant is 8 0 m3/day. Liquid chlorine is used r sewage disinfection.

Artemovsk ODWSWRF

General characteristics:

* Total length of water pipelines 760 km, 3 * Annual productivity - 7491.2 th usand m3 , which includes 6333.9 thousand m - for population. * There are 297 (one per apartm nt building) water meters installed, * There are 18410 (per house or apartment) water meters installed.

-14 ; *Ji] ;, , # , gl Urgent issues: r-A 3:' - ;i 4water t 3Eof pipelines are in emergency situation, degree of -._wear1 - exceeds 50°O.

. - Surface water resources:

There are no surface water resources for Artemovskoe i *L __ODWSWRF | it purchases potable water in C;hasovoyarskoe utility of -~ SWU (UkrPromVodCherMet",", after filtering stations. The source - A. "N >s< of waler+ | ,is the Siversky Donets W -a,---4jr. , ,t,-1 Fw _St- i Donlba-ss CrXana

1 igure 2.3. The Boiler House at t e WwTP Site in Artemovsk

Groundwater resources. Tt, . - rtemIoVir -ind Klesheevsky water-intake facilities with total r,d; ti'. of 122001r, riaV

T e town of C'hasov Yai 1'i' I' * Br !. rr-'Q.I3sky water-intake f cilities with total productivity 1 A5.)

T he town of Seversk -Kir,- .-. 4-i rCuknovaiskv ,a1ei- irtake4 'acilities, with total p oductivity of 3200 rn 'day

\ ater delivery into the distributio network:

. The town of Artemovsk. 't ir i--i .re(Jo Ptrrlugh thr -atears into Western and Eastern distribution points F : eithe. >el fc'wi r-I niroped) into the water distribution system of the I'.d

* The town of Chasov Yarn :. 1i .ar diS itFit e sro.&curce to the 2nd level pumping statior and '' - !\ K -uthinto distribution system of the 'A' The town of Seversk .*.ater distribution point, and fi} '' t. t ,v *.^t, (* ' '6

\fastewater '-ro:0 i-t_aln- capacity - 5 36.7 thous' 'rces V Inovakha ODWSWRF

V lnovakha ODWSWRF performs ater supply services for settlements of di strict, delivering water from Velik Anadol'skaya filtering station. The water is provided by SWU "UkrPromVodCherMet".

S irface and groundwater resour es: There are no potable surface and groundwater re sources at Volnovakha ODWSW

Water delivery into the distributio network: Water is delivered into distribution system oi a town, townships and villages alc r,g three main directions:

* The town of Volnovakha, Bli shniy township, Octiabr'skoe and Kirovskoe villages are provided with drinking water through the water main V-Anadol' (FS) - Volnovaha -HMF Donskoe. * Townships Olginka, Novotro skoe, villages Pol'noe, Juzshno-Donbasskaya, and MarLNIS are provided with d nking water through the water main V-Anadol' (FS) - I Novotroitskoe. * Townships of Vladimirovka ind Blagodatnoe are provided with drinking water through the water main V-An do' (FS) - Ugledar.

T tal length of water distributio network, be!onging to Volnovakha ODWSWRF c nstitutes 289.15 km. The length o a water main is 35.75 km.

Ir dustrial and municipal waste aters: Volnovakha ODWSWRF is responsible for tr nsportation and treatment of w stewaters with a total volume of 1406.6 thousand 3 3 3 - /year, in particular 1289.5 thousa d m - municipal wastewaters and 117.1 thousand m industrial wastewaters. Total len h of the sewerage network is 102.5 km. The main *- se wer's total length is 35.6 km.

T e town of Volnovakha has a co bined sewerage system; all wastewaters (rainstorm w ater, industrial and municipal wast water) are transported and treated jointly.

Dzerzhinsk ODWSWRF

S urface water resources: Dzerz, ynsk ODWSWRF receives potable water from two w ater mains of Chasovoyarsky distri t branch of SWU "UkrPromVodCherMet":

3 . Gorlovka - Dzerzhinsk, throught e water main with D=900mm, Q=21000 m /day. . Donetsk water main - Dzerzhinsl filtering station, Q = 3000 m3/day.

Croundwater resources: There s a water-intake facility "Krasnie kolodtsy", Q = 48 ry 3/day. Water-intake facility has thri e wells with depths of 28, 32 and 40 meters, pumping sl ation, water reservoir with capacity of 500 m3 , chlorination facility, located at the pumping s ation. Total productivity is 1300 m /day. Actual water usage is around 48 m3/day, which is 4% of the design capacity. The eason for the gap between design capacity and the a tual rate of water use is an emerc ency condition of water well buildings and equipment: oily one well is actually working, as f 1.08.2003.

M'ater delivery into the distrib tion network. Water consumption by population, c nstitutes 82% of the total, consur lrDtion by the industry - 18% of the total. Total length of d stribution network, operated by th ODWSWRF - is 478.6 km, namely 15 % of pig-iron

2l pi es and 85% of steel pipes. The a erage age of the pipes is 20-60 years. Because of a hi h degree of wear the leakage arm unt is high. It is estimated, that the level of losses is 35%.

In dustrial and municipal wastewa ers. All wastewaters from the territory of. a town are d livered to a wastewater treat ent plant, where mechanical and full biological w stewater treatment is conducte . Treated wastewaters are discharged into Krivoy T rets river. There is a 100.5 km Df sewer networks (5% of pig-iron pipes, 47.5% of c ramic pipes, 35.5% of reinforced oncrete pipes and 12% of steel pipes). Among them, 8. km is fully amortized and 3.2 rm needs replacement. There are three wastewater p mping stations within the system.

R les for industrial sewage disck rge into the sewer network were designed by the O DWSWRF and enacted by the de ision of Dzerzhinsk town council on 20.11.2002 and N vgorodskiy township council on 1 .02.2005.

D mitrov ODWSWRF

S rface water resources: D itrov ODWSWRF is receiving water from K asnoarmeyskoe district branch of WU "UkrPromVodCherMet".

G oundwater resources: There ar no groundwater resources in exploitation.

V ater delivery into the distributi n network: Potable water is delivered to distribution s stem through the system of wate mains and pumping stations. Total length of a water d tribution network is 267.7 km, w re 9% - pig-iron pipes, and the rest are steel pipes. T e age range of the pipes is 20-6 years. Because of a high degree of wear, there is a h h level of losses due to leaks in t e system. On average, degree of water losses is 35% o the total.

l dustrial and municipal wastew ters: Industrial wastewaters constitute around 6% of t e total volume of wastewaters, hwever, these waters are much more contaminated, t an municipal ones. At present, m or part of industrial wastewaters is discharged into the s werage system of a town wit out a primary treatment, except for wastewaters, c ntaining dangerous contaminant . Enterprises, producing such wastewaters, conduct p imary treatment of these waste aters on local wastewater treatment plants, which a lows discharge of these wastewat rs into the sewerage system of a town, in accordance w th the Rules for industrial wastewE ers discharge into municipal sewerage system.

V astewater treatment: All wast waters, originated from towns of Krasnoarmeysk, Rodinskoe and Dimitrov, are tran ported through the system of sewer networks and wastewater pumping stations onto mmon sewage disposal plant, where mechanical and f 11 biological wastewater treatme t is conducted, with further discharge of treated wastewaters into the Kazenniy Tore river. Dobropolie ODWSWRF

S rface water resources: Pota ;le water is delivered to the towns of Belitskoe, Belozerskoe and a township of No) odonetskoe from Krasnoarmeyskaya filtering station, b flonging to the district branch of S NU "UkrPromVodCherMet"; to the town of Dobropolie fr Dm Krasnoarmeyskoe district bra ch of SWU "UkrPromVodCherMet", as well as from I cal sources.

Groundwater resources: The tom 1i of Dobropolie is served by the Zolotoy Kolodets, Annovka and Larino water-intake faLilities. The Aleksandrovka township is served by the Aleksandrovskiy water-intake facility

. Water-intake facility "Zolotoy K lodets" is located in the basin of a river Kazenniy Torets, includes 11 artesian wels with total productivity of 780 m3/hour and two water reservoirs with capacities of 30011 m3 and 6000 m3 .

* "Annovskiy" water-intake facility, located on the right slope of a river Byk, includes 2 .. wells with productivity of 81 m3/h ur and a reservoir with capacity 500 m3 .

. "Larino" water-intake facility incl ldes two wells with productivity of 80 m3/hour and a reservoir with capacity of 100 m3

. "Aleksandrovskiy" water-intake f cility is located in 2 km to the west of the bottomland of Samara river, includes 2 well with productivity of 60 m3/hour and a reservoir with capacity of 1000 i 3.

V later delivery into the distributio network: Potable water is delivered to the reservoirs ir the towns of Belitskoe, Dobro Iolie, Belozerskoe, townships Novokuznetskoe and A leksandrovka, where it is partially i i ixes with groundwater, and is delivered to consumers a terwards (water supply service is c Dnducted 16 hours/day).

li dustrial and municipal waste aters: Wastewaters, discharged into surface water bodies, are treated to a degree, ne -essary to exclude possibility of negative influence on re ceiving waters. Municipal wast Naters undergo both - mechanical and biological tr eatment. Wastewaters are also d sinfected in order to avoid bacterial contamination of tl e receiving waters.

F-A FRules for industrial sewage disct arge into the sewer network: Wastewater discharge irito sewer networks is conducted ir accordance with the "Rules of wastewaters discharge i to municipal and industrial sewer networks of the settlements served by Dobropol'sky water supply and sewerage facility , approved by the decree # 94 of Dobropol'sky City Council, enacted on 26.02.03, the t( n of Dobropolie. D zkuchaevsk ODWSWRF

S rface water resources: 1 T e source of water supply is the water utility "Ciorodskie reservuary" k t (v ater is delivered from the - w ter mains owned by SWU r .{ , krPromVodCherMet" _7 t rough the pipeline with D- 5 0 - 600 mm. It came into s rvice in 1967, design I c ipacity - 2000 m3/day. j

Groundwater resources. S hevchenkovsky water- f i ake facility - 3 artesian IAells(2 are in operation: 3A, 1_,% 5 3A and 1 is for backup: ' 6 3A). Central water-intake f cility - 3 artesian wells. _1 Figul 2.4. Water Tank Building in Dokuchaevsk

\Fater delivery into the distributi n network: D.,huc,haevsk ODWSWRF sells potab!e %ater to population and industry Dokuchae\.sk lovrn townships of Aleksandnnovka Yasniy and Elenovka and Dokucha vsk farm. Dokuchaevsk ODWSWRF- maintains water s ipply networks with total length of 68.5 km kvhere tie length of watet mains is 42 4 kml)

V/ater mains:

. Shevchenkovsky water main is nstructed ul slee: pin'es w.Nith g!arnpte' D- :4C6 nmin has a total length of 9 km. It wa commIssioned '- 974. . Central water main is construct d of steel pipes ith diaieX- ! iJ -r- t total length of 3 km. It was com issioned inr 962 . Elenovka water main is made o steel pipes with ;-.!.-.mOW .j- n r length of 12.9 km. It was commi ioned in 1982

Clistribution and delivery of water to c onr)stn t oFi : network, made of steel and pig-ir pipes ti-; vr ti Average diameter for the water sup Iy rpt-. liters per second. lidustrial and municipal waste ters wastewaters from its consumers an p :

Rules for industrial sewage dis harge ntFc ho -.P w. . I okuchaevsk ODWSWRF and ap re\cv - lo. 376 and by Elenovsk township ouirc-

V astewater treatment: There are . Dokuchaevsk wastewater treatm, nt plant with productivity of 9600 m3/day and . Elenovsk wastewater treatment F ant with productivity of 700 m3/day.

- Druzshkovka ODWSWRF

S rface water resources: ODWSV RF receives potable water from the second Donetsk w ater main from Slaviansk district br .nch of SWU "UkrPromVodCherMet".

Groundwater resources: Seven a itesian wells of Raisky water intake facility are not in o eration since 1999.

\'ater delivery into the distribL tion network: ODWSWRF provides water supply se rvices for the town population (59.5 thousand people) and industries, located at the town te rritory. There are two pumping sti ions. Total length of the water supply network is 330 k n. There are also 4 water reservoir in the system.

Ir dustrial and municipal waste liaters. Wastewaters from population and industry (ii dustrial wastewaters constitute .7% of the total volume) are delivered to the town w astewater treatment plant. After teatment, wastewaters are discharged into Kazenniy T retz river. There are 6 wastew iter pumping stations in the system. Total length of s werage network is 113.5 km.

Rules for industrial sewage discl arge into the sewer network were approved by the d acision No. 304 of Druzshkovka tol iln council on 09.04.2003.

\Fastewater treatment. There is a inechanical and biological wastewater treatment at the p ant.

Enakievo ODWSWRF

Surface water resources: 98.5% c I water is the water, purchased by Enakievo C DWSWRF from Enakievo district branch of SWU "UkrPromVodCherMet".

Groundwater resources: In order to reduce shortage of potable water in most remote a eas groundwater resources (wate from capping wells) are used:

. Capping well #1 is located on 1e right bank of Bulavin river, the town of Enakievo, TIR Tikhaya st. Depth of a well - 5 n ters, productivity - 62.5 m3 /hour. . Capping well #2 is located on I:e right bank of Bulavin river, the town of Enakievo, Pogranichnaya st. Depth of a we I is 7 meters, productivity - 62.5 m3 /hour. . Capping well #3 is located at th( area of Enakievo ponds. Depth of a well is 4 meters, productivity - 54.2 m3/hour. This well is not currently operational.

\fater delivery into the distributicin network: Daily water consumption by the town and a I adjacent townships is in a range Cf 78-82 thousand m3 .

I idustrial and municipal wastew iters: Wastewater removal and discharge of treated e Ffluents is carried out by the enterr ise on the basis of permission for special water usage # Ukr.Don-2165 as of 27.06.02, iss - ed by the State administration of environmental and n atural resources management i i Donetsk oblast. Collection of wastewaters from c )nsumers and their delivery to a \, astewater treatment plant is carried out through both - s If-flowing and pressure sewers, u ing wastewater pumping stations. R sles for industrial sewage disch rge into the sewer network are determined by the ru es for wastewater collection, appr ved by the decision of Enakievo executive committee 72 as of 21.05.03.

Mastewater treatment: Was waters from the towns of Enakievo, J zshnokommunarovsk and waste ters from local industry are directed to wastewater 3 tr atment plant #1, located in the wn of Enakievo, with productivity of 56000 m /day. 3 A tual daily volume of treated wa ewaters is within the range of 18-21 thousand m . astewaters from the town of Ugle rsk, the townships of Aleksandrovskiy and Bulavinka a d from local industry are directed o wastewater treatment plant #2, located in the town o Uglegorsk, with productivity 10000 m3/day. Actual daily volume of treated w stewaters is within the range of 2 00-3200 m3 .

K nstantinovka ODWSWRF

S urface water resources: ODWS RF receives potable water from the second Donetsk water main from Chasovoyarskiy di rict branch of SWU "UkrPromVodCherMet".

Croundwater resources: Belokuz inovskiy and Belgorodskiy water supply sources.

\rater delivery into the distributi n network: Total length of a water supply network is a ove 540 km. Network consists steel, pig-iron, composite and polythene pipes with d ameters ranging from 600 to 50 m. There are also six water pumpin? stations within t e system. The daily volume of wa Lr delivered to consumers is 31000 m . The volume of a water reservoir is 6000 m3 .

Iidustrial and municipal wastew ers: Sewerage system of a town consists of a sewer n twork (more than 140 km of f ro-concrete, pig-iron, steel and ceramic pipes with d ameters ranging from 150 to 8 0 mm), seven wastewater pumping stations and a v astewater treatment plant with de gn capacity of 40000 m3/day.

Vfastewater treatment: Wastewat treatment plant is equipped for a full mechanical and a biological wastewater treatment Disinfection of effluents is conducted before their c ischarge into Krivoy Torets river, u ing liquid chlorine. K asnoarmeysk ODWSWRF

S Lrface water resources: Currer ly, the main water supply source for the town of K asnoarmeysk is the 3rd le el water supply pumping station of SWU LlkrPromVodCherMet".

G oundwater resources: There ar no groundwater resources.

'ater delivery into the distributio network: Water is delivered through the three water rrains into the distribution system f a town. Total length of a water supply network is 2 30.5 km. It includes 63.1 km of wa r mains, 160.8 km of street networks and 56.5 km of ir ner quarter networks. There are 1 water pumping stations in the system, in particular, 9 -i i Krasnoarmeysk and 2 - in Rodin koe.

I rdustrial and municipal wastew ers: Total length of a water supply network is 137.1 k n. There are 1946 sewer shafts, main latches and also 50 latches on a wastewater p jmping station. There is no wastev ater treatment plant.

Krasniy Liman ODWSWRF

Surface water resources: There a no surface water resources.

Groundwater resources: There ar 36 wells operated by the Krasniy Liman ODWSWRF

rater delivery into the distributio network: After the 1st level pumping station, water is d Blivered into the water reservoir a d further - to the 2nd level pumping station. After the 2 d level pumping station, water is elivered into the distribution system of a town. There a e three operational water pumpi stations. Total length of a water main - 140.3 km, a verage monthly volume of water d ivered to the consumers - 131000 m3 . lIdustrial and municipal wastew ters: Total length of sewerage network is 113.1 km. T here are 16 wastewater pumping tations. Waste waters consist of municipal sewerage a nd wastewaters from railroad indu ries of a town.

Fules for industrial sewage disc arge into the sewer network are complied with by t e town industry.

V astewater treatment: Wastewa Drs are directed to wastewater treatment plant with productivity of 10000 m3/day, equi ped with mechanical and biological treatment units. Chlorination is performed before thE discharge into the river. r ovoazovsk ODWSWRF c urface water resources: There a e no surface water resources.

roundwater resources: There a e 8 artesian wells, located on the territory of a town nd neighbouring villages. Water elevated by deep pumps; replacement and major c verhaul of pumping equipment is c mpleted.

%laterdelivery into the distributi n network: Water is delivered into the water supply retwork of a town through the watr main with diameter D=300 mm and total length of 6

km. In ustrial and municipal waste aters: Wastewater discharge and the following trE atment are carried out at a biol, agical wastewater treatment plant, which is located be hind the town borders.

R les for industrial sewage disch rge into the sewer network were enacted in August 2C 03.

W astewater treatment: All wastew ers undergo treatment and filtration. Storage pond is a art of a system.

N vogrodovka ODWSWRF

Si rface water resources: The main source of water supply for the town of K asnoarmeysk is the 3rd level water Dumping station of SWU "UkrPromVodCherMet".

G oundwater resources: There ar no groundwater resources.

Water delivery into the distributio network: Water is delivered through the three water m ains into the distribution system f a town. Total length of a water supply network is 2 0.5 km. It includes 63.1 km of wa r mains, 160.8 km of street networks and 56.5 km of in ner quarter networks.

In dustrial and municipal wastew er: Total length of a water supply network is 137.1 kr n. There are 1946 sewer shafts, main latches and also 50 latches on a wastewater pi jmping station. There is no waste ter treatment plant. There are 6 wastewater pumping st ations. In particular: 5 stations in rasnoarmeysk and 1 station - in Rodinskoe. There is n wastewater treatment plant.

S IlidovoODWSWRF

S urface water resources: Seli ovo ODWSWRF receives potable water from K asnoarmeysk district branch of WU "UkrVodoChermet". There are water pumping s tions in the towns of Selidovo, rainsk, Gorniak, township Tsukurino (Novoselidovsk p )ultry farm) and in the township striy. 5 pumping stations have a total productivity of 4 ;900 m3/day.

Groundwater resources: Tsurkin kiy water intake facility is part of a water supply s /stem. It consists of 2 artesian we s and a 2nd level pumping station with productivity of 1 300 m3/day.

V 'ater delivery into the distributi n network: Selidovo ODWSWRF sells potable water t population and industry of th towns of Selidovo, Ukrainsk, Gorniak, townships Kurahovka, Ostriy, Vishneviy, Tsuk rino and villages Nikolaevka, Marinovka, Mikhailovka, Z rianoe, Aleksandropolie, lzmailov a and Leninskoe. ODWSWRF maintains water supply n twork with total length of 474.4 k

lrdustrial and municipal wast water: Selidovo ODWSWRF receives municipal Mastewaters from its consumers a d carries out mechanical and biological wastewater t atment on a wastewater treatme t plant. ODWSWRF maintains 8 wastewater pumping s ations in the towns of Selidovo, U rainsk and Gorniak. R les for industrial sewage disc arge into the sewer network were developed by S lidovo ODWSWRF and approved y Selidovo town council on 28.12.02.

W stewater treatment: Selidovo 0 WSWRF maintains 2 wastewater treatment plants wi h total productivity of 30000 m3/da ,in particular:

. Integrated wastewater treatment lant with full mechanical and biological wastewater treatment cycle for the towns of S lidovo, Ukrainsk and Novogrodovka. . Wastewater treatment plant of the town of Gorniak, where full mechanical and biological wastewater treatment iWperformed for wastewaters of the town of Gorniak.

Si viansk ODWSWRF

S rface water resources: The tow of Slaviansk has two sources of water supply:

. Northern and Cherevkovskie wat r reservoirs operated by the district branch of SWU "UkrVodoChermet", containing m ed water from surface and groundwater sources. * Mayaki water-intake facility, whic uses water from the Siversky Donets river, provides water supply services for the are of a railway station.

G oundwater resources: There are no groundwater resources.

Water delivery into the distributio network: As of 01.01.2003, there are 483.7 km of w ter supply network, managed by t Slaviansk ODWSWRF, in particular:

* water mains - 85.2 km, * street networks - 240.6 km, . inner quarter networks - 18.9 km . water service entrances - 139 k . 4 water supply pumping stations, . 11 booster pumping stations, . 670 water supply network shafts, . 132 fire hydrants, . 1210 latches, . "Mayaki" water - intake facility w h filtering station, having design productivity of 12000 m3 /day.

3 T tal water consumption of the tow is on average 30 - 31 thousand m /day. There are 9 268 consumers, which are using -rvices, provided by Slavianskoe ODWSWRF.

I dustrial and municipal wastewat . As of 01.01.2003, there are 120 km of sewerage n twork maintained by Slaviansk 0 WSWRF. in particular:

. sewer collectors - 45.5 km, . street networks - 37.5 km, . inner quarter networks - 25.2 krr . sewer outlets - 11.8 km, . sewer shafts - 935, . sewerage pumping stations - 1 . 4 pressure sewer collectors, deli ering wastewaters to a wastewater treatment plant. W 3stewater treatment: Wastewat r treatment plant has a design capacity of 48000 m /day.

St arobeshevo ODWSWRF

S rface water resources: There ar no surface water resources.

Gr oundwater resources: Water-in Rke facilities of Komsomol'skoe town and Kipuchaya Kr ynitsa are used by Starobeshevo DWSWRF.

Water-intake facility of Komsomol'sk e town.

. well #3 (Depth - 91 m, pump pro uctivity - 120 m3/hour, pressure head - 60 m), . well #5 (Depth - 80.5 m, pump p ductivity - 120 m3/hour, pressure head - 60 m), * well #20 (Depth - 91.6 m, pump roductivity - 120 m3/hour, pressure head - 60 m), , well #35 (Depth - 90 m, pump pr ductivity - 90 m3/hour, pressure head - 60 m). 3 ater-intake facility Kipuchaya kryni a: 3 . well #13 (Depth - 180.5 m, pum productivity - 255 m /hour, pressure head - 30 m), 3 . well #14 (Depth - 114 m, pump oductivity - 255 m /hour, pressure head - 30 m), . well #16a (Depth - 200 m, pump roductivity - 255 m3/hour, pressure head - 30 m),

VWater delivery into the distributio i network: Potable water is delivered to water supply networks of Komsomol'skoe town and townships of Starobeshevo, Rodnikovoe and * K puchaya Krynytsa.

In dustrial and municipal wastew ers: Wastewater pumping station of Komsomol'skoe to wn delivers wastewaters to the lo :al wastewater treatment plant. Wastewater pumping st ation of Starobeshevo township d livers wastewaters to the wastewater treatment plant oi Noviy Svet township.

Wastewater treatment: Wastew ter treatment plant (commissioned in 1954) of K msomol'skoe town performs w stewater treatment of effluents, delivered by the w stewater pumping station of Kom omol'skoe town.

S ezshnoe ODWSWRF

S urface water resources. Grabov koe water reservoir, maintained by Enakievo district bi anch of SWU "UkrVodoChermet" erves as a source of water supply.

Groundwater resources: There ar no groundwater resources.

VI'astewater treatment: Mechani il (sand catchers and primary settling tanks) and b ological (aerofilters and seconda settling tanks) wastewater treatment is applied at the p ant.

Kirovo ODWSWRF

S rface water resources: Kirovo ODWSWRF receives water from Enakievo district b anch of SWU "UkrPromVodCher et" for the town of Kirovo and from Makeevka district b anch of SWU "UkrPromVodCher t" for the town of Zshdanovka. G oundwater resources: There are no groundwater resources.

Water delivery into the distributi n network: Provision of population and industry of Ki ovo town with potable water is ca ried out through 2 water mains with diameters of 400 ar d 500 mm, connecting pumping tations of the 1St and 2nd level. Zshdanovka town is cc nnected to the 1st level pumping s tion in a similar fashion, with water mains of 300 mm ar d 500 mm diameters. Total lengt of water supply network in Kirovo town is 45.66 km (P g-iron and steel pipes) and in Zs danovka town - 52.72 km (pig-iron and steel pipes). A erage age of these pipes is abov 50 years. The level of leakage in the system is up to 5: %.

In dustrial and municipal wastew ters: All wastewaters, received from the towns of Kirovo and Zshdanovka, as well as f om the Kommunar township, are directed through the s5stem of sewers and sewerage pu lping stations to a wastewater treatment plant, where fu I mechanical and biological wast water treatment is performed. Treated effluents are di 3charged to the Krynka river.

R les for industrial sewage disc arge into the sewer network are approved by the S ate environmental and natural re ources management board in Donetsk area. Actual p irameters of wastewaters, discha ed into the Krynka river are in compliance with the e tablished norms.

Mastewater treatment: Design pp cductivity of a wastewater treatment plant - 28.8 th ousand m3/day. In 2004, the actu average daily load constituted 8.22 thousand m3/day.

T l'manovo ODWSWRF

S irface water resources: There a ^ no surface water resources.

G oundwater resources: Water i delivered from the 9 wells of Samsonovsky water in ake facility. Depth of wells - 170- 80 m, productivity - 43.2 m3/hour.

\'ater delivery into the distributio i network: Water is delivered from groundwater wells, Iccated in immediate vicinity of a 2nd evel pumping station. Further, water is pumped to the p imping station of a 3rd level, from where it is directed to water supply networks of the T lI'manovo township and villages of Zaporoszets and Lukovo.

I dustrial and municipal waste Naters: Tel'manovo ODWSWRF is dealing with c llection of municipal and industria (dairy plant) wastewaters.

\ astewater treatment: Mechanica and biochemical wastewater treatment processes are a )plied. In order to remove bacteri I pollution, disinfection of wastewaters is performed. V rastewater treatment plant of Te manovo ODWSWRF consists of mechanical (sand c, itchers and primary settling tank ) and biological (aerofiiters and secondary settling t nks) wastewater treatment units. Disinfection of treated wastewaters is made with cl lorinated lime. Wastewaters are irected to a wastewater treatment plant through the p essure sewer. Tbrez ODWSWRF

Surface water resources: Water spply of the town of and miner's settlements is c rried out by Enakievo district bra ch of SWU "UkrPromVodCherMet" (Enakievo filtering p ant) through Novo-Stozshkovski water distribution point and also by Shakhterskiy CDWSWRF.

Groundwater resources: There is o groundwater resources.

Mfater delivery into the distributio network: Water is delivered to the town through two water mains (D=700 mm) and furth - to 8 pumping stations and to distribution network. Total length of a water distribution n twork is 614.7 km.

rIdustrial and municipal wastew ers: Municipal wastewaters constitute 72% of a total v lume and industrial - 28%. f astewater treatment. There are wastewater treatment plants, carrying out mechanical a d biological wastewater treatm nt, as well as disinfection. Productivity of sewage d sposal plants:

* Wastewater treatment plant of town (commissioned in 1975) has design productivity of 30000 m3/day and actual pro ctivity of 10700 m3/day; * Wastewater treatment plant of" olynskaya" mine (commissioned in 1979) has design productivity of 700 m3/day and a tual productivity of 90 m3/day; * Wastewater treatment plant of "Objedinennaya" mine (commissioned in 1957) has design productivity of 2000 m3/d y and actual productivity of 100 m3/day.

S hakhtersk ODWSWRF

urface water resources: Wat supply of the town of Shakhtersk and miner's s ttlements is carried out by Ena ievo district branch of SWU "UkrPromVodCherMet" ( nakievo filtering plant).

roundwater resources: There is o groundwater resources.

Vfater delivery into the distribut on network: Shakhtersk ODWSWRF provides with v ater supply services the town of Shakhtersk and 3 townships with total population of 7 000 people. Currently there are ' 6.78 km of water supply networks, 3 booster stations aid seven pumping stations are ma ntained by Shakhtersk ODWSWRF. l dustrial and municipal wastew ters: Municipal sewerage services is responsible for c llection of wastewater from local consumers and their treatment before discharge into s rface waters. Currently, 96.1 k n of sewer networks and 7 pumping stations are n aintained by the ODWSWRF.

ules for industrial sewage dis harge into the sewer network are developed by hakhtersk ODWSWRF and are ap roved by decision of Shakhtersk town council NO19 as c 21.01.2004 .

V astewater treatment. There is a unicipal wastewater treatment plant with productivity of 1 0000 m3/day.

-~~~~~~~~~~~~~~~~~, 2.2. Proposed Investment Projec ts

In order to modernize water supply a d wastewater removal systems of Donetsk oblast, in the framework of this project it is pt posed to purchase various kinds of equipment with e timated cost of 22 million UAH ( .4 million USD). Because structural subdivisions of S1 CE cannot act as legal persons (~ eir managers are acting on the grounds of the power of attorney, which has been issue by Donetsk Oblast Vodokanal, information on the n eds in investments for purchasin of various equipment is given for all district branches of Donetsk Vodokanal.

2. 2.1. Water supply: Purchase F Water Meters, Flow Regulators; Well Pumps, Booster Pumping Station High-Pressure Pumps and Reverse Osmosis Installations

2. 2.1.1. Purchase of Water M ters for Apartment Houses

P irchase of water meters with the following diameters is planned: D = 20 mm - 9764 u 1its; D = 25 mm - 583 units; D = 3 mm - 440 units; D = 40 mm - 385 units; D = 50 mm - 144 units; D = 65 mm - 13 units.

T e total number of water meters t be purchased is 11329 units, with a total cost of 3.9 m illion UAH

A deevka ODWSWRF 40 Amvrosievka ODWSWRF 11 A temovsk ODWSWRF 703 V :lnovakha ODWSWRF 51 E zerzhinsk ODWSWRF 2888 Dimitrovo ODWSWRF 113 I obropolie ODWSWRF 585 Dokuchaevsk ODWSWRF 27 Druzshkovka ODWSWRF 32 Enakievo ODWSWRF 516 Konstantinovka ODWSWRF 269 Krasnoarmeisk ODWSWRF 254 Krasny Liman ODWSWRF 140 ODWSWRF 22 Novogrodovka ODWSWRF 438 Selidovo ODWSWRF 355 Slaviansk ODWSWRF 111 Starobeshevo ODWSWRF 2005 Snezshnoe ODWSWRF 266 Kirovskoe ODWSWRF 15 Tel'manovo ODWSWRF 30 Torez ODWSWRF 1516 Shakhtersk ODWSWRF 942

Composition of a metering unit: wa r meter, filter, return valve, pressure reducing valve. Iristallation of water meters in apart ent houses will have a positive effect and will lay the g round for transition to European n ms of water consumption. 2.2.1.2. Purchase of Pressure Regulation Units (Pressure-Reducing Valves and Air Stands) for all 23 DWSWRF's

P ssure reducing unit is utilized r pressure control in the water supply network. It c ntains: latches, filter and a pressu e-reducing valve. Total quantity of pressure reducing ur its of different diameters to be pur based- 142 units, with a total cost of 4.9 million UAH.

Ai stands are installed in order to prevent air accumulation inside the pipelines. Total qL antity of air stands to be purchasc is 80 units (produced by the A.R.I. company), with a to al cost of 167.5 thousand UAH.

E timation of quantity of pressure r ucing units and air stands is presented in Table 2.1.

T ble 2.1. Estimation of quantit of pressure reducing units and air stands

Location of ODWSWRF Pressure reducing Air stands, units, number of units number of units 1 Avdeevka 10 2 Amvrosievka 4 _ 3 Artemovsk 3 3 4 Volnovaha 1 5 Dzerzhinsk 18 1 6 Dimitrovo 1 5 7 Dobropolie 9 12 8 Dokuchaevsk 7 9 9 Druzshkovka 3 10 Enakievo 8 5 11 Konstantinovka 6 10 12 Krasnoarmeisk 4 7 13 Krasny Liman 2 _ 14 Novoazovsk 10 0 15 Novogrodovka . 2 16 Selidovo 0 2 17 Slaviansk 14 10 18 Snezshnoe 22 10 19 Kirovskoe 2 20 Starobeshevo 2 21 Tei'manovo 1 _ 22 Torez 5 4 23 Shakhtersk 9 11

I stallation of pressure reducing its and air stands will allow to monitor the energy c znsumption and reduce the proba ility of pipe ruptures. It will also help to reduce losses o water from pipes and increase th degree of its rational use.

2.2.1.3. Purchase of Well Pu pS for 9 ODWSWRF's

otal quantity of well pumps to be purchased is 63 units, with a total cost of 4.3 million AH, including:

Amvrosievka ODWSWRF - 12. Artemovsk ODWSWRF - 9, Dobropolie ODWSWRF - 6, Dokuchaevsk ODWSWRF - 6, Krasny Liman ODWSWRF - 14,

~~~~~~~~~~~~~~~~~~~~~~~~~~~ I I1 . Novoazovsk ODWSWRF - 7, . Tel'manovo ODWSWRF - 5, , Shakhtersk ODWSWRF - 2, m Starobeshevo ODWSWRF -2.

2. 2.1.4. Purchase of Booste Pump Stations and High-Pressure Pumps of Various Capacity

T e installation on booster pumpinC stations is needed in order to provide uninterrupted w ter supply services, especially in igh - rise buildings. Total number of booster pumping s ations to be purchased - 26 unit , with a total cost of 2.3 million UAH, and 11 high- p essure pumps with a total cost of l .6 million UAH.

2 2.1.5. Purchase of Reverse smosis Installations for Groundwater Treatment

It is planned to purchase 18 inst lations for groundwater desalination with individual p oductivity of 50 m3/day and 9 inst llations with individual productivity 20 m3/day. The list p o proposed locations of these instal tions is presented in Table 2.2.

T ble 2.2. List of Proposed Loc tions of Reverse Osmosis Installations

Location of ODWSWRF Productivity, m3/day Number to be purchased, number of units 1 Amvrosievka 20 6 2 Artemovsk 50 3 3 Dzerzhinsk 50 1 4 Dobropolie 50 1 5 Dokuchaevsk 20 1 6 Enakievo 50 2 7 Konstantinovka 50 4 8 Novoazovsk 50 2 9 Starobeshevo 50 2 10 Tel'manovo 20 2 11 Shakhtersk 50 1

2 2.2. Wastewater Collection and Treatment: Purchase of Air Blowers, Pumps and Mobile Sludge Dewatering/ ackaging Plants iv 2 2.2.1. Purchase of Air Blow rs for 16 ODWSWRF's

New air blowers are required to ptimise the existing wastewater treatment system tt rough replacement of existing e uipment by the equipment of lower capacity. Total q jantity of air blowers to be purch sed - 35 units, with a total cost of 3.1 million UAH, ircluding:

. Amvrosievka ODWSWRF - 2, . Artemovsk ODWSWRF - 3, . Dzerzhinsk ODWSWRF - 2, . Dimitrovo ODWSWRF - 2, . Dobropolie ODWSWRF -2, . Dokuchaevsk ODWSWRF -2, . Druzshkovka ODWSWRF -2, . Enakievo ODWSWRF -3, . Konstantinovka ODWSWRF -2, . Krasny Liman ODWSWRF -2, . Novoazovsk ODWSWRF -2, . Selidovo ODWSWRF -2, . Slaviansk ODWSWRF -2, . Tel'manovo ODWSWRF -2, Torez ODWSWRF -2, . Shakhtersk ODWSWRF -3.

2. .2.2. Purchase of Sewage Iumps of Varying Capacity for 12 ODWSWRF

Ne w sewage pumps are proposed t: be purchased to replace old and inefficient existing ec uipment. Total quantity of sewer F mps to be purchased - 92 units, with a total cost of 2. Imillion UAH, including:

* Artemovsk ODWSWRF - 14, . Dzerzhinsk ODWSWRF -4, * Dobropolie ODWSWRF -8, . Druzshkovka ODWSWRF -6, . Selidovo ODWSWRF -12, * Slaviansk ODWSWRF -20, . Konstantinovka ODWSWRF -6, . Snezshnoe ODWSWRF -2, * Novoazovsk ODWSWRF -2, . Enakievo ODWSWRF -4, * Torez ODWSWRF -6, * Shakhtersk ODWSWRF -8.

E)cpected economic gains from the eplacement of sewage pumps are estimated at 142 th :usand UAH.

2. 2.2.3. Purchase of Mobile S dge Dewatering/Packaging Plants

It s planned to purchase sludge dev tering equipment in order to form mobile workshops, in particular, three mobile systems fr sludge dewatering with productivity 5 - 15 m3/hour. It ould include an NP-15 press ma mine for sludge dewatering and a BCAVPK packaging m chine. These mobile dewaterinc systems are to be used for the groups of closely lor ated towns.

2. 2.3. Water Supply and Waste ater Treatment: Purchase and Installation of Sodium Hypochlorite Produ tion Plant

It is planned to purchase electroly s plant, intended for sodium hypochlorite synthesis fr m sodium chloride. It is planned t produce sodium hypochlorite for all district branches of Donetsk Oblast Vodokanal. The plant is to be located at the territory of Slaviansk O DWSWRF. Design productivity X a plant - 50 kg/hour (1.2 tonnes/day). Sodium h pochlorite is used for disinfectior of both - potable and waste waters. Application of sc dium hypochlorite will allow to reduce concentration of chlorine-organic chemical compounds in treated waters.

41 2.. Analysis of Potential Enviro mental Impacts

In line with the World Bank EA po cy and procedure, the proposed project and all its ccmponents are classified into the e vironmental category 82

2. 3.1. Physical Impacts

T e proposed investment project in Ives the purchase of water meters, to be installed at th apartmental buildings, and w er network pressure controls; replacement of old in fficient pumping equipment; p chase of reverse osmosis units for groundwater tr atment; purchase of equipme for mobile sludge dewatering/packaging plants; p rchase and installation of sodium hypochlorite production system to substitute existing c lorination stage in water/wastewat r treatment processes.

T e improved control of water pre ure in the mains is key to achieving a reduction in w ter losses and ensuring the s stainable use of available water resources. The in tallation of pressure reduction Ives would help maintain the optimal flows in the n tworks, and ensure more efficiE t and continuous control of water supply system or eration. Additionally, the pressure reduction valves will substitute the current practice of fl w regulation by keeping the flow gates half-open, which limits the supply of water to vE vrious customers.

In practice, the works planned und r the proposed rehabilitation project, will consist of m etering and pressure control e uipment installations in various locations of the di tribution network, pump repair a d replacement at the booster stations, installation of hi h-pressure pumps and air blow rs, and will be carried out within the existing work p emises and in the basement floor of apartmental buildings. These works are not likely tc affect the existing ecological equi brium in the locations of existing 23 operational units o. the Donetsk Oblast Vodokanal U"lity, nor would it cause any environmental pollution or d Xterioration.

T e potential physical impacts of the proposed investment project are likely to be in significant, being limited to the dise antling/installation phase.

T e purchase and operation of mo le sludge dewatering/packaging plants will result in a si nificant reduction of sludge slurry olumes.

C enerally, the proposed measures will reduce the potential for accidents, improve the o )erational performance of all distr t water utilities in the region, reduce significantly the e ergy consumption as a result of c reased non-productive losses, which is a significant e onomic and environmental benefi in itself.

L cal geology: no adverse impact are likely to arise, since all rehabilitation targets are I cated indoors, in the Utility works ops or apartmental buildings, being isolated from the I cal geological environment. Due to the scope and nature of proposed rehabilitation works, any adverse impact on the g ology is unlikely.

T e operation of mobile sludge d watering/packaging plants will facilitate a significant r duction in the liquid sludge volu , which are currently generated at an annual rate of

2 P 4.01 Environmental Assessment

4? up to 40,000 tonnes (dry weight), nd the volume of already generated/accumulated sI dge is at about 350,000 tonne . There has been a continuous growth in sludge . ge neration and disposal, placing a ditional demand for land and posing threat to the er vironment. The improved sludg management arrangement will contribute to the imr rovement of local environmental ituation. The dewatered and packaged sludge can be u d in agriculture, tree planting and and restoration.

Water resources: the overall proj ct impact will be positive as a result of improved e vironmental safety of local watr bodies, achieved through the rehabilitation and improvement of water supply syste elements. Another significant benefit relates to the irr proved control and minimization o the potential for accidental releases due to failures in th a canal operation.

A bient air: no adverse impacts a e likely to arise, since all works associated with the re abilitation of water pumping stati s do not involve any harmful emissions.

E isting utilities/infrastructure: verall impact is likely to be positive, since the irrplementation of proposed reha litation measures would significantly improve the o erational reliability of water sup y and wastewater collection/treatment system, and re duce the potential for accidents tht may affect the adjacent utilities/infrastructure

L cal climate, flora and fauna: iven that the proposed project does not entail any a ditional land allocation, and will e implemented in the built-up area, there will be no a Iditional loss of habitat, and no da age to vegetation cover in the surrounding area will be incurred.

23.2. Social Impacts

T e installation of customer meterii devices will provide significant benefits through the in proved control of water consum ion and more sustainable management of available vyater resources. It will provide a sis for a transition towards the optimised water use p actices, to be comparable with the European water consumption rates.

T e stable operation of pumping ca acity and improved control of water pressure will help e iminate the practice of alternate rvice provision to the selected customer groups and s ift towards the continuous se e operation regime. Additionally, the provision of c )ntinuous water service to house Ids living in the upper floors of high-rise buildings will b fully in line with the social equity principle, where the customers pay only on the basis o the service actually provided.

The purchase of reverse osmosis s stem for groundwater treatment will help improve the q ality of water put into supply, whi is especially important in the Donetsk Oblast where s rface water and groundwater so rces in many cases do not meet the potable supply s andard (elevated levels of hardn s, mineralisation, iron, manganese, nitrites, fluorides e c. that may have a harmful effect human health.

The purchase of sodium hypochl ite unit to replace the chlorination process used to d sinfect the potable supplies and sewage effluents will provide significant benefits for h uman health. Currently, the raw ter quality requires a relatively high level of chlorine c osing. Chlorination of the organi -rich raw water is likely to produce unwanted and Fotentially harmful chlorinated h rocarbon compounds in the drinking water. The c hloroform. present in the drinking water at relatively high concentrations, is particularly

4l dangerous, posing a higher risk of cancer disease. The proposed sodium hypochlorite o tion is effective in terms of its disi fection, oxidation, germicidal, antiviral and antifungal ac tion, being safe for the envir nment. In water treatment process, the sodium h pochlorite is used for water disin ection, equipment/pipework treatment (including hot w ter supply equipment), disinfectioi of water treatment equipment (ion exchange, carbon a d membrane filters), as well as :or the removal of iron, manganese, and hydrogen sL lphide. The application of soc ium hypochlorite is very effective in terms of cc ntrolling/minimizing the chlorine le els in the treated water.

Tt e proposed replacement of ma .y existing air blowers operated at the wastewater tr atment plants, to be substitute( with lower capacity air blowers, will enable their c ntinuous operation, resulting in tle improved treatment efficiency and better quality of ef luents discharged into the receivir water bodies. It can be concluded that this measure w 11 help improve the quality o wastewater collection/treatment service without c mpromising the quality of local am ient waters.

Tl e proposed project would impr yve the social, epidemiological and environmental si uation in the region, and contribul to the implementation of energy-saving practices in the municipal sector.

T e proposed project does not entai any involuntary resettlement and will not produce any a( verse effect on the regional cultur; I assets.

2.4. Review of Alternative Optiol s

A continuing 'status quo' scenario wi result in:

* Further deterioration of wate. supply service, provided to population and industries in the region, * Instable operation of wastev%,ter collection and treatment service, poor quality of treatment. T ie proposed project solutions are based on the modern energy- and resource-saving p actices, which have proved very i iseful in Ukraine and abroad. The implementation of p oposed project is seen as the m )st feasible way of improving the reliability of water se rvice and preventing further det Erioration of environmental and social situation and hi man health in the region.

T ie proposed investment project wt I ensure the environmentally safe operation of water s pply system in the Donetsk Regi : n. and minimize the potential for accidents that may p se threat to the environment.

44 2. 5. Environmental Managemenl Plan

2. 5.1. Brief Description of Key En ironmental Issues

T e results of this environmental as essment indicate that the implementation of proposed in vestment project would not pro uce adverse impact on the adjacent industrial, a ricultural and municipal infrastru :ture, surface and underground utilities, recreational a eas and cultural assets.

It is expected that the overall enviro -imental effect of proposed rehabilitation measures for th e Donetsk Oblast Water Utility will e positive.

2. 5.2. Mitigation Plan

T e proposed investment project in,iolves the rehabilitation and upgrade of existing water st pply and wastewater collection/tr iatment infrastructure in Donetsk Oblast, as well as in provement of energy efficiency in the municipal sector. q Key objectives of the proposed pro ct include the upgrade of existing water supply and wastewater collection/treatment cap icities in a manner that ensures the accident-free and e vironmentally sound operation of, iater services, provided to the population and industry in the Donetsk Oblast.

K y performance indicators for the r roposed project include:

1. Adequate level and qualits of water supply service provided to customers, particularly the population. 2. Reduction in specific energy and resource consumption in the operation of water transmission and distribution ervice. 3. Reduction in potable water lo ses. 4. Elimination of intermittent wa r supply practice. 5. The volume of water actually ; upplied fully meets the potable demand. 6. Improvements in the quality of the water put into supply, to ensure that existing potable standard is met. 7. The level of improvement in the living conditions, achieved through better management and control of 1Iaks from sewage networks.

2 5.3. Monitoring Plan

T he monitoring programme will neeI to be introduced and implemented by the Borrower to e sure compliance of all propose rehabilitation activities with existing sanitary and e -vironmental standards.

At this stage, there is no provision fc r the independent monitoring to be carried out by non- g vernmental organisations.

Given that the proposed works \i|l not affect the environmental media, no detailed rr onitoring programme has been de eloped at this stage.

4_1I~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ 3. INSTITUTIONAL ISSUES

V ater supply facilities of Donetsk oblast have a range of unresolved technical and ec onomic problems:

1. Technical condition of the r ain water supply source - the Siversky Donets - Donbass Canal, which is ir service for more than 40 years without a major overhaul, concerns experts: I iere is a continuous annual deterioration of technical condition of hydraulic works of the channel, ongoing process of concrete works destruction, corrosion of met;. I and aging of equipment, resulting in high degree of losses. 2. Absence of an alternative w ter supply source for Donetsk oblast. Termination of construction of the Dniepro-C onbass Canal, where, in second turn of construction, commissioning of a 2-thread i ater pipeline with a 16 m3/s discharge and of several pumping stations for Donetsl oblast was planned. It seems impossible to resume construction in volume of orin nally developed project. Privatisation is under way on this channel. I 3. One feature of the water sur ply system of Donetsk oblast is high water salinity in water storage basins and unc arground sources. 4. Pumping stations, which are currently in operation, are equipped with the out-of- date pumping equipment a id need serious reconstruction. Especially serious problems are associated with the city's water, distribution network. 5. Deterioration of operational c ndition of a water supply service facilities has lead to an increased number of ace idents. In the last four years the accident rate has increased by 12.5%. 6. Increase of an accident rat E and absence of capital investments into a major overhaul of pipelines leads to a major leakages in the water distribution network (on average, up to 35% of the tot I water volume supplied, or 208 million m3 per year or 570 thousand m3 per day). 7. Demands of all categories of consumers, and at first, population demands, are not completely satisfied: 134 sett ements in oblast are importing potable water. 8. Quality of potable water, dl:)ivered to consumers, does not always meet the standards of SanPin. Deteri ration of water quality, especially its microbiological parameters is recorded in any settlements of Donetsk oblast. This can be explained by scheduled dail) interruptions of water supply and imperfection of its purification disinfection techn logies. 9. There are other sources : f water supply in the oblast: fresh water from underground sources, with tc al stock of 200 million m3 and mine waters, with total stock of 1 billion i 3. These Waters can be utilized on a local scale, conditioning that certain investments are avail: ble for such purpose. 10. Actual water consumption in Donetsk oblast makes 950 million m3 , including more than 500 million m3 of potab water. However, there is a tendency to decrease in water consumption (5% ann I decrease) on an oblast scale.

|r order to resolve problems with water supply and wastewater removal services in Donetsk oblast, a "Program for ref rming and improvement of water supply services in Donetsk oblast for the period of 2003 - 2005 with the prospect of development through the y Yar 2010" was started. It was deve pped under the order of Donetsk oblast administration bfl NIGTIGH, Kiev. The actions, p nned in this program can be divided into following d rections:

. Energy-saving measures.

4 ) . Measures on increase of reliabiliIy of a water supply system and its separate elements in settlements. . Measures on reduction of water e)akages. . Measures on water resources ec nomy. . Measures aimed at wider utilizati n of groundwater resources.

rv easures aimed at water quality im rovement.

State Water Utility "UkrPromVodC herMet"

Ir line with its development strategy objectives, the UkrPromVodCherMet Water Utility has rriade significant advances in in roducing the up-to-date technology, applying the a itomatic control systems, and i proving the process logistics. These efforts have e nabled significant resource saving at the company level, with the average staffing of its d strict operational units being lowe by 30-35% than the guideline level.

Since September 2004 through A ugust 2005, the UkrPromVodCherMet Water Utility s c mpleted the occupational safety rtification for all work stations.

Ir 2004, 374 company specialists ok part in the computer training course "Information Science and Computer Equipment".

ir 2004, as part of the introductio and certification of the Quality Management System c, mpliant with the State Standard STU ISO 9001-2001, 78 company specialists were tr ained and qualified as internal aud ors of quality management system.

The UkrPromVodCherMet Water tility's policy has always been to ensure the proper q ality of service, and the compa 's efforts have been recognized and appreciated. In 2 03, the company received the E ropean Quality Award, in 2004 it received the Award f r High Service Quality and Relia lity, and the award of the European Market Research Centre for high professional ach vements, business leadership and contribution to Lkraine's integration into the lobal economic system. In March 2005, the LkrPromVodCherMet Utility receiv d the Ukrainian National Rating Diploma "Ukraine: Eest Companies" for continuing orin ntation towards the customer's interests, promotion of d ynamic development and significait contribution to the national economy development.

State Municipal Water Utility "Doi etsk Oblast Vodokanal"

The present investment project prol osal has been prepared on the basis of the results of t te Theoretical Study and Developi ent of Mathematical Simulation Model of the Existing V/ater Supply and Distribution S stem, which covered all 23 district water utilities, operating within the Company's sys m.

,,~~~~~~~~~~~~~~~~~~4 4. PUBLIC CONSULTATIONS

In accordance with the World Ban requirement, the public consultation process was or anized as part of the environm ntal assessment, in order to discuss the proposed ur an infrastructure development p ojects with various stakeholder groups in Donetsk. T lis public consultation involved two stages.

T e first public consultation was h Id in October 2005, the second one - in November 2 05. For the Utility UkrPromVodC irMet, the first public consultation was combined with th 3 second public consultation of Do etsk Oblast Vodokanal.

In the friendly atmosphere of the meeting, attendees raised and discussed various qL estions, which are detailed in t Minutes of Consultation Meeting, annexed to the pr esent EA Report.

A ditional information on public con Itation process can be found in the Annex A. 11 ONCLUSIONS

Ir the light of the present study, it c be concluded that the proposed rehabilitation project f r the UkrPromVodCherMet Wat r Utility, that includes the rehabilitation of pumping c pacity (replacement of the Level 1-4 pumping units) of the Siversky Donets-Donbass Canal, operated by the UkrPromV CherMet Utility can be promoted to the next project p reparation stage based on the pos ive outcome of the environmental assessment.

The results of this environmental as essment indicate that the implementation of proposed irivestment project would not pr duce adverse impact on the adjacent industrial, agricultural and municipal infrastr ture, surface and underground utilities, recreational areas and cultural assets.

Eased on the analysis of existing ituation, it can be concluded that there is an urgent need in implementing the proposed ater supply/wastewater system rehabilitation projects f r the State Municipal Utility "Done k Oblast Vodokanal", including:

. Water supply: purchase of mea uring and pressure regulation equipment; purchase of well pumps, booster pumping equipment and high-pressure pumps; purchase of reverse osmosis treatment equi ment; * Wastewater collection/treatme : purchase of air blowers, sewage pumps, mobile sludge dewatering/packaging u ts to handle sludge generated at the WwTP sites; * Water supply and wastewater c Ilection/treatment: purchase and installation of sodium hypochlorite production unit.

1he EA results indicate that the oposed project can be promoted to the next project =reparation stage.

I is expected that the proposed reiIbilitation measures for the existing water supply and astewater collection/treatment sy em in the Donestk Oblast will provide significant Environmental benefits.

49) a.

A inex A - Materials on PublI Consultations

S)

I~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ Th. Need for Public Consultation

Ac ording to the requirements of the orld Bank and Ukrainian legislation, it is necessary to donsult project-affected groups an local nongovernmental organizations (NGOs) about the project's environmental aspects a d to take their views into account when performing En! ironmental Assessment (EA) of i vestment project on municipal infrastructure. Thus, ge eration of positive attitude on all tages of projects is the necessary requirement for the project performance.

Or anisation of Public Consultatio s

Acc ording to Terms of References, the Consultant (IWMC) has organized the public cor sultation process in the following ay:

1. 'Fwo public consultations for each roject location were carried out: * The first public consultat n - the purpose of this consultation was to present the planned project, reviev the EA outline and schedule, Terms of Reference, and to solicit from affecte groups and local NGOs any environmental issues they consider to be a priorit and they wish to see addressed in the EA report. * The second public cons ltation - the purpose of this consultation was to present the results of EA w ,rk, discuss positive and negative impacts of planned project, to review the dra EA document to insure that the issues identified in the first public consultatio have been properly addressed and resolved to the satisfaction of locally affec d groups and NGOs.

rhe main objectives of public cons Itations were as follows: * To make the EA project tra isparent and open for the public; * To discuss various issues and concerns with project-affected groups, to familiarize pubic with poter ial negative impacts and problems during realization of investment projects; * To have feedback from c mpetent bodies and local project-affected groups during the EA process on tential positive and negative impacts.

2. To invite local stakeholders, the laces and dates of two public consultations were an iounced in local/oblast new apers, followed by the telephone and fax co nmunications. Key participants ar * Loan Recipients (Municipal Utilities); * Key field institutions; * Key research organization and organizations performing Environmental Impact Assessment (EIA); * Local state administrations * State authorities (enviro mental authorities and sanitary epidemiological service); * NGOs; * TV, radio stations, newspa ers.

3. Responsible persons (from IWM and Grant Recipients) were appointed for each loc ation.

4. The following information material were prepared for each consultation * Agenda; * Information on the project distribution material:

.~~~~~~~~~~~~~~5 -

-~~~ I * Press-release for mass-mr dia.

5. Records of consultations were c refully documented, including the lists of attending Persons, pictures/photos, and minut s of each consultation meeting.

6 All comments and opinions o participants were taken into account during the p eparation of EA reports.

P jblic consultations in Donetsk blast were conducted according to the approved p ogramme.

P ublic Consultations in Donetsk

T e First Public Consultation

1 A working meeting with the pot tial borrower (Donetsk Oblast Vodokanal) to discuss key organizational issues was h d, where the date and venue were discussed and the 1st Consultation Meeting Prepar tion Plan was agreed. It was decided to hold the first public consultation meeting on 5 October, 2005, at the conference hall of Donetsk Oblast Vodokanal.

2 The announcement of the meeti g was published in the oblast newspaper "Zhizn" on 21 October 2005, No. 151 (Attac ment 1).

3 The meeting agenda (Attachm it 2), distribution material (Attachment 3) and press- release (Attachment 4) were pre ared.

4 The minutes of the 1 st consultat pn meeting were maintained (Attachment 5), pictures are made (Attachment 6).

5 Mass-media have reflected th event in their news programmes and publications (Attachments 7, 8).

The Second Public Consultation

7he Second Public Consultation for nvestment projects at the Donetsk Oblast Vodokanal

1 A working meeting with pot ntial borrowers (Donetsk Oblast Vodokanal and UkrPromVodCherMet Water Util y) to discuss key issues relating to the organization of the second consultation meetin was conducted, where the meeting date and venue were discussed, and the 2nd Co sultation Meeting Preparation Plan was agreed. It was decided to hold the second pub c consultation meeting on 11 November, 2005, at the conference hall of Donetsk Obla t Vodokanal. For the Utility UkrPromVodCherMet, the first public consultation was co bined with the second public consultation of Donetsk Oblast Vodokanal; the secon public consultation for UkrPromVodCherMet was conducted on the 29-th of Nove ber.

2. The meeting date and venue re announced in the oblast newspaper "Zhizn" on 8 November 2005, No. 160 (Attac ments 9).

3. The Meeting Agenda (Attach ent 10) and press-release (Attachment 11) were prepared. 4. The minutes of the 2 nd consultetion meeting were maintained (Attachment 12), and pictures (Attachment 13) were m de. 5. Mass-media have reflected the event in their news programmes and publications (Attachment 14).

T/ ie Second Public Consultation for nvestment projects in UkrPromVodCherMet

a) For the second public consultat on for State Water Utility UkrPromVodCherMet was conducted on the 29-th of Noverr ber.

b) The meeting date and venue wE -e announced in the oblast newspaper "Zhizn" on 24 November 2005, No. 170 (Attach ents 15).

c) The Meeting Agenda (Attachn ent 16) and press-release (Attachment 17) were prepared.

d) The minutes of the 2nd consultE tion meeting were maintained (Attachment 18), and pictures (Attachment 19) were m de.

e) Mass-media have reflected the event in their news programmes and publications (Attachment 20).

C nclusions

A set of very important and interesti ig issues/comments/opinions were identified/received as a feed-back from interested an( project-affected groups, in particular, potential loan re cipients, NGOs and general publ c. All comments have been taken into account and pr operly addressed during the prepa iation of EA reports.

T e feedback received from the pu :lic consultations has proved invaluable in assessing the following aspects of the propose I projects:

* Compliance of planned inv stment projects with the Ukrainian environmental legislation and regulations; * Completeness of available infc rmation on the current environmental situation; * Current environmental permitti lg status of each proposed project; * Completeness of available i iformation on the potential environmental impacts associated with the proposed i ivestment project implementation; * Adequacy of proposed mitiga: on measures in terms of ensuring the environmental safety and sustainability; * Acceptability of potential envirt nmental impacts and environmental feasibility of each proposed project; * Need for additional enviro mental information or clarification of available environmental data.

T le positive response received fror various stakeholder groups shows the high level of irTportance and urgency, associatt d with the implementation of proposed projects in D netsk City and Oblast. These inv Estment projects are expected to significantly improve e isting situation in water supply (re habilitation of water pipelines, construction of booster st tions, etc.), waste water collectiol /treatment (rehabilitation of municipal sewer network.

53~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ m unicipal wastewater treatment pl nt and sewage pumping stations) sectors:- Due to pt irchase of laboratory equipment f r analysis and control, the institutional capacity of an in plementing agency will be strengtr ened. The proposed projects would contribute to the irT provement of municipal infrastruc ure, quality of life and environmental situation in the re gion.

T ie projects will not cause involunt resettlement of population.

T ie potential physical impacts of pi posed projects on local geology, climate, air quality, fa una, water bodies, soil, vegetatio cover, and existing utilities/infrastructure, are likely to b insignificant and will be limited to he construction phase.

5 4 TJ Pe firstPublic consultation- 25 ctober. 2005

Attachment 1

Translation Announ ment in the Newspaper S urce: the Oblast newspaper "Zhi , 21 October 2005, No. 151(2937)

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Agenda The First blic Consultation Meeting 5 October, 2005 (13 Univ rsitetskaya str., Donetsk)

11.00 A out proposed investment projects d their importance for Ukraine

11.20 A. Kuzin - Scientific Director of IWMC A out EA, TOR on EA, requirement of WB and Ukrainian legislation to EA performance, a out the structure of EA Report

1 .40 A out the importance of investment p jects for Donetsk

1 .00 A out planned investment projects in Donetsk in the domain of water supply and wastewater tr atmentlcollection

12.20 0 estions, comments, discussion Attachment 3 Translation

I formation material

* I the framework of EA process of in stment projects on development of urban infrastructure ai med at improvement of hygiene and health of the population and improvement of e vironmental conditions, sustainabl water supply and sanitation delivery services, energy- se iving.

KEY ACTIVITY AREAS:

* Rehabilitation of water supply stem; * Rehabilitation of wastewater cq lection/treatment system.

Ir Donetsk Oblast, the following proj cts are proposed:

* Rehabilitation of Pump Statio * Replacement of Pumping Equi ment; * Installation of pressure reducti n vales; * Purchase and installation of w ter meters.

It is expected that proposed projects vill demonstrate their significant social benefits, resulting fr Dm the improvements in existing w er supply and wastewater collection/treatment systems. These projects will contribute to th improvement of environmental situation in the region, p ovide access to better quality s rvices, and result in reduced energy costs of these s slrvices.

PUBLIC CONSULTATION

2 October 2005 - review the A outline and schedule, Terms of Reference, and iclentification from affected groups a local NGOs any environmental issues they consider to be a priority and they wish to see ad ressed in the EA report h ovember 2005 - review the draft E document. Head: Scientific Direction IWMC Kuzin Alexander Contact person: Utkina Kateryna Tel/fax.: (057) 702 15 78 E-mail: akousine @mail.ru

58 Attachment 4

Translation

Press Release

T day, on 25 October 2005 at th conference hall of Municipal Utility Donetsk Oblast V zdokanal, the first public consultatio on the WB investment projects on urban infrastructure w s conducted. Key investment are s: rehabilitation of water supply, wastewater and solid w iste management systems.

A cording to WB requirements, a roposed project may be implemented only after EA p ocess. EA must be conducted acc ding to the WB procedure and relevant requirements of U rainian legislation.

T e generation of positive public al itude at all stages is a key requirement for proposed p ojects. It is planned to conduct two ublic consultations in order to ensure that the identified is ues have been properly address d and resolved to the satisfaction of locally affected g oups and NGOs. It is planned to h /e feedback from local population, corresponding points fc r meeting with representative of loc I population and NGOs will be organized.

T e consultation process has been i itiated by the Association Industrial Waste Management C ntre (the Consultant responsible I r EA preparation) and Municipal Utility Donetsk Oblast V dokanal.

S9 Attachment 5 Translation

Minutes (No. 1) of the,F rst Public Consultation on WB U an Infrastructure Project

D netsk 25 October 2005

Pl ce - Conference Hall, Municipal tility Donetsk Oblast Vodokanal (13 Universitetskaya st ., 8300 Donetsk Ukraine, Tel./fax: 5-52-12, 304-51-70).

O ganizers - Association Industrial aste Management Centre, Municipal Utility Donetsk 0 1last Vodokanal.

Cl airman - Kuzin A.K., Scientific Dir ctor of IWMC

Ce -chairman - Eremenko G.G. H d of Electrical-Mechanical Service, Municipal Utility D netsk Oblast Vodokanal.

S cretary - Muravskaya O.V. - pecialist on PR, Municipal Utility Donetsk Oblast V dokanal.

C ordinator on public relations- nchar N.V.

4t persons were present. Registratio sheets are available at the IWMC office.

1. Kuzin A.K., Scientific Director of WMC - told about WB Urban Infrastructure project that is implemented in Kharkiv, Odess Chernihiv, lvano-Frankivsk and Donetsk cities. He told about activities planned in Done k City, about Loan Recipient, EA process, TOR and schedule. He gave preliminary a essment of existing situation. He told about IWMC in general.

2. Abuzyarov l.K., Deputy Head of State Department of Ecology and Natural Resources - informed about key problems in ter supply and waste water sectors in Donetsk city and Donetsk oblast, underlined the fa of great losses of water (in particular, in Gorlovka town losses are about 50 %), told abo the necessity to normalize loadings on water networks and energy saving. He also unde ned the necessity to purchase and install water meters He said that proposed projects w jId improve decision-making process.

3 Stepovoi Yu.l., Director of Muni pal Utility, Slavyansk town - described the situation in Slavyansk town and problems wi pumping equipment. In particular, equipment in SPS N5 (constructed in 1988) has rea ed the end of operation life. Due to change of pumping equipment there is great energy siving.

4 Dolbeshenko A.A., Director of Mnicipal Utility, Druzhkovka town - told about Ukrainian- Dutch project in the domain of m nicipal services (the main aim is economical effect due

60 to reduction of energy consumpti(: n), underlined the importance of WB loans for the city development. The Utility has t e experience of the whole project process (from . preparation of documentation till t ie implementation). The key priorities are improvement of water supply and treatment of d linking water and waste water treatment.

r 5. Bachinskiy V.T., Director of Mun Icipal Utility, Avdeevka town - told about poor state of pipelines, underlined the necessity to rehabilitate the water supply networks and to reduce water consumption and to purchas flushing equipment.

6. Oleinikova G.M., Director of Arte novsk branch of NGO MAMA-86 (NGO responsible for social assessment) - underlined the necessity to consider the problems with potential increase of tariffs due to project i plementation. She underlined that this issue was the most important for the population.

7. Berezin V.B., Director of EcC ilogical-and-Cultural Centre Bakhmat - expressed dissatisfaction to the public cons ltation carry-out. He said that more scientists, NGO representatives and businessme . should have been participated. He also said about some problems with tender perfor .iance in separate cases.

8. Shkurko N.D., Chief Engineer oI Municipal Utility, Dokucaevsk town - informed about necessity to use pressure regulati : n equipment for reduction of water consumption.

9. Maslak V.N., General Director of Ounicipal Utility Donetsk Oblast Vodokanal - described the situation with the investment project implementation, underlined the importance of loans for the rehabilitation of vater supply system. Due to project implementation, measures on rehabilitation of w ter supply system will be implemented, energy losses will be reduces, water consumptic l control and accounting will be introduced, the existing system will be improved. He told bout Energy-Saving Fund (created due to cooperation with Holland) and that city admini trated supported and was interested in the investment project implementation. He und lrlined the importance of information distribution to population.

C 3mments:

Oleinikova G.M., Director of Artemovsk branch of NGO MAMA-86 - proposed to create permanent Supervision , ommittee. Answer: Maslak V.N., General Director of Municipal Utility Donetsk Oblast Vodokanal - agreed. It is planned to conduct open ( iscussion of project with interested persons, information will be given on we-site, after r egotiations and additional consultation with WB experts the final list of investment projE cts will be compiled.

1 ).Benoit Plaige, Head of TACIS project "Solid Municipal Waste Management in Donetsk Oblast" - told about similar projec s in Moldova. The duration of such projects is large, the negotiation and preparation procE ss is quite long and includes performance of technical. economical assessment, tender oil equipment and service. etc.

1 Maslak V.N., General Director f Municipal Utility Donetsk Oblast Vodokanal - gave information on financial issues. R ayment is planned to be made due to reduction of non- 6 I production losses: installation o meters (at present losses in multi-stored apartment buildings are 7-14%) and energy saving (it is planned to reduce energy consumption on 50 %). Vodokanal specialists h yve obtained international certificated and have great experienced - their knowledge will be useful for project implementation. Detailed calculations were made for 23 departments on Municipal Utility Donetsk Oblast Vodokanal. It is not planned to in: ease tariffs for population.

1 2.Kuzin A.K., Scientific Director o f IWMC - thanked all participants for attention, promised to address all identified issues in EA Report, invited to cooperation during performance of proposed projects. He announce( that the second public consultation would take place on 10-11 November, corresponding . dvertisement would be published in newspaper.

Signatures: Chairman Secretary Coordinator on public relations

6 2 .ttac.hment 6

Pictures

r __.N*'7"tI'__T Abuzyarov I.K., Deputy Head of S ate Department of Ecology and Natural Re.

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Kuzin AX. Scientific Director of MIWM( : -t -w

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Maslak V.N., General Directo| of Municipal UJtility D)onetsFwv- It.^Vodokanal

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rnhr2 Oleiiko- G I r?zt Benoit Pi ige. Hteaad it ,- Ject "Solid Municipal W ste Management it. Donetsk Oblast

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Pub-lic Attachment 7 Summary

Ne spaper Publication

S urce: the Oblast newspaper "Zhiz 1', 3 November 2005, No. 158(2944)

WB is Going to Gis Investments for "Voda Donbassa"

T e article is devoted to proposed in estment projects in Donetsk. Due to lack of funding the pr gramme "Voda Donbassa" is not erformed. In the framework of WB projects Municipal U ility Donetsk Oblast Vodokanal s going to implement various measures aimed at irTprovement of water supply and istewater treatment/collection services, replacement of e uipment, etc. Benefits (in particu r, in the domain of energy-saving) from the projects p Xrformance are described. The first ublic consultation is discussed. Conclusion - proposed p ojects are very necessary and publi consultation is very important for population.

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Attachment 8

In ernet subscription Municipal Utility Donetsk Oblast odokanal plans to take a WB loan for water supply optimi ation in Donetsk Oblast Summary

Tt e main topic is first public cons tation in Donetsk. Proposed investment projects are de scribed and the necessity to c duct public consultation in the process of project implementation is underlined.

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Attachment 9

Translation Announ ement in the Newspaper

S urce: the Oblast newspaper "Zhiz , 8 November 2005, No. 160

11 November 2005, at 11.00 in conference hall of Municipal Utility onetsk Oblast Vodokanal A dress: 13 Universitetskaya str., 8300 Donet th a public consultation for discussio on investment projects on the rehabilitation of water s pply and wastewater in Donetsk blast, Draft EA Reports will be conducted. Interested p( rsons are welcome. AUI, I-,U'1 u .Nao UWi AflOCKOJ1bKy CePeL bUXI g HU:~ALd CdI , Ju VI I1L-.... 1UHubid nlufy. HViOgHFO 0. 4jCsi KcyiLWgOKYMeHT, KOTOpbIM TpyAHO Ha3B Tb Hanpqx~eHHO pa6OTaeT, HY)K(HOCKa3aTb, HTOAP CyYQOTbMO)$HO TOJ1bKO O0HY K acMCBABC~O 04(Hyio ta- 6Iog*eToM. HaC3TOTrog6bthlOqeHbHenpOCTbIM. B memopaH- -nlonuTonorH ohueLqaIOT, YTO nlapTri4 te- gyMe,O0KOTOPOM Mbl roBopWfli eCTE [V/'I KToanpe- nlO3Baf0 peLLIB, BW[L/1MC, inpo6n Emy ruOHOB pa3AeflwhaCb Ha Asa fnarepsi -x )H- KpawLeHWW nOn1MTmieCKVWX pernpeccLui lPOTWB ponlpWRTLe B "3aKpbIToM1 Bli AeHb6o iaS- cepoarOpOB if nw6epanoB. Ce6.q Ob1 Or 0- LJ1OeHOBHaweLi napTLlA. 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H.ATO - nlpa liHBA, _ITaeBaC.A. LtL1aHoB- OAHH mec4CLOcoMRB BbLXIxL lbW fc, Attachment 10 Translation

Agenda The Second ublic Consultation Meeting in the Framework of EA ocess for Proposed Investment Projects on the Urba Infrastructure Development

11 00 0 ening A. uzin - Scientific Director of IWMC

11 10 In estment Projects on the Urban lnfr structure Development E YL. Shestakov - Chief Engineer of M icipal Utility Donetsk Oblast Vodokanal 11 .30 At out experience of installation of ne pumping equipment, the necessity to dewatering the sI idge YL .Stepovoi - Director of Slavyansk j dokanal 11.40 A out the necessity to replace pump g equipment and meters, expected effect due to their in tallation A. Dolbeshenkov - Director of Druzhk ka Vodokanal

11.50 A out the necessity to demineralis underground waters, use of hypocloride for water di, infection, dewatering of sludge, m ile units N. Zotov - Director of Information Ce r of Donetsk Oblast Vodokanal

1 9 .00 A )out the general situation in water s pply and wastewater sector N Nasonkina - Head of Chair in Don ss National Academy of Construction and Engineering

1 .10 Sl ort characteristics of public relatio in Donetsk Oblast Vodokanal N Gonchar - Head of Department of ontrol and Record Keeping

1 .15 P; rticipation of population in decisi ns making on plan of water supply and wastewater se ctors development, exemplified by oledar Town o Oleinikova - NGO MAMA-86, Arte ovsk Branch 12.30 A out EA results, Final EA Report, p ential positive and negative impacts A Kuzin - Scientific Director of IWM

S :ate Water Utility Ukrpromvodch met - announcement on the EA process rD.

Attachment 11 Translation Press Release

Today, on 11 November 2005, in the ...KDCHbf4nlMaH conference hall of Municipal Utility Donetsk Oblast Vodokanal (address: ) Universiteskskaya str., 13 Donetsk, tel./fax: ADYKKOBKal 305 52 12, 304 51 70), the public 0o6DnbeI wflTelWMlOBCK consultation on WB investment projects on St i-;,c1a"1T-.iC,Ba urban infrastructure was held. Key areas of a acHo aT>o OB K investment are the rehabilitation of water ~L.BO QiOBh80 AsaeesKa KM supply and wastewater collection/treatment ) 0 r e o systems. The potential loan recipient is lft so :Y nMunicipal Utility Donetsk Oblast Vodokanal FOKnl" oHI9iKaHan T (provides services for 33 towns, 55 urban

c ?BcK villages and 26 small villages). J01ow4aeeCK ,JYIO CToeSC AMB0Do M BOnHOIaX The Municipal Utility Donetsk Oblast

TenbMaHoBO Vodokanal consists of 23 municipal utilities which provide services for population in

H ;evwoe-, Donesk City and Oblast. For technical modernisation of water supply .- _ and sewage systems It is planned to p rchase and install various equip nt (total amount is 22 min UAH = 4.4 mln USD). As s ructural units of Municipal Utility onetsk Oblast Vodokanal are not juridical persons, irformation on investment resou es for purchase of equipment is compiled for Conetsoblvodokanal in general.

According to the WB requirement the EA is required for the proposed project, to be p epared according to the WB proce ures and Ukrainian legislation requirements.

I raft EA Reports have been prepa d for all proposed projects. The analysis of proposed p ojects demonstrates their significa t social benefits, resulting from the installation of water nieters in apartment buildings (resul - water saving and rational use of water), improvements i existing water supply and wastew ter collection/treatment systems. Stable work of pumps v ill allow to provide water supply se ices during 24 hours. Installation of new air blowers will c use improvement in waste w er treatment. These projects will contribute to the ir provement of environmental sit tion in the region, provide access to better quality s rvices, and result in reduced ener costs of these services.

The proposed projects will not c use involuntary resettlement. Their potential physical irnpacts on local geology, climate, ai quality, fauna, water bodies, soil, vegetation cover, and eKisting utilities/infrastructure are c nsidered to be minor and limited to the construction p hase.

c ince the generation of positive publ attitude on all stages is a key requirement for proposed projects, the EA results are presente to general public.

-7I Attachment 12 Translation Minutes (No. 2) of the Secon Public Consultation Meeting in the framework of investme projects on urban infrastructure development

D netsk 11 November2005

Pl ce - conference hall of Donetsk blast Vodokanal (address: Universiteskskaya str., 13 D netsk, tel./fax: 305 52 12, 304 51

0 ganizers - Association Indust ial Waste Management Centre, Municipal Utility D )netsoblvodokanal, Water Utility Uk PromVodCherMet.

9 CCiairman- Zotov N., Director of In prmation Center of Municipal Utility Donetsk Oblast V dokanal.

S cretary - Muravskaya O., speciali t on PR of Municipal Utility Donetsk Oblast Vodokanal;

C vordinator on public relations - onchar N., Head of Department of Control and Record K eping.

31) persons were present. Registratio sheets are available at the IWMC office.

A enda: a Presentation and discL sion on the Report of EA on "Modernisation of water supply-waste water collection/tr atment systems of Donetsk Oblast Vodokanal Municipal Utility". b Presentation and discu sion of TOR on EA conducting on the proposed project "Rehabilitation of pumping cap cities of Siversky Donets-Donbass Canal, State Water Utility UkrPromVodCherMet".

L. Presentation and discussi on the Report of EA on "Modernisation of water supply-waste water collect n/treatment systems of Donetsk Oblast Vodokanal pt- Municipal Utility".

1. Kuzin A., Scientific Director of IWMC - informed about performed EA in the framework of Ul Project. Acq rding to WB requirements the potential impact on the following environmental co ponents were studied: geology, water resources, atmospheric air, microclim e, vegetation cover, flora and fauna, technogenic environment. Also social imp cts were studied. Results of analysis have shown that negative impacts are not exp ted due to implementation of projects.

2. Shestakov Yu., Chief Engin r of Municipal Utility Donetsk Oblast Vodokanal - told about the direction of invest nt. Water meters are necessary for the control of water consumption and rational ter use. Installation of units for regulation of water pressure, replacement of p mps and other equipment will provide water supply services during 24 hours, red e water losses and energy consumption. 3. Stepovoi Yu. Director of Si |ansk Vodokanal - told about the experience with modernisation of SPS 5. RepI ement of equipment has reduced energy consumption. He told about the problems wi wastewater treatment plant: at present the area of 11 hectares is filled with sludge a d15500 m3 of sludge is stored of sludge plants.

4. Dolbeshenkov A., Director of Iruzhkovka Vodokanal - told about their experience of pumps replacement. He paid ttention to the fact that net cost of water is higher than the tariff and specific costs fo energy is 60 % of tariff. The developed energy-saving programme will allow to redu e energy consumption from 2 mln kWh/year to 1 min kWh/year. Installation of energ meters will allow to introduce energy accounting.

4 5. Zotov N., Director of Informat n Center of Donetsk Oblast Vodokanal - told about proposed projects in details underlined the necessity to purchase and install electrolysis unit for sodium hypochlorite (location - Slavyansk Town) and for demineralisation of undergrou waters and mobile units for sludge dewatering.

6. Nasonkina N., Head of Ch in Donbass National Academy of Construction and Engineering - described the xisting situation n the domain of water supply and wastewater treatment/collecti in Donbass Qblast: poor state of pipeworks, frequent breaks, low efficiency of pi mps (about 40%), low drinking water quality. She underlined the necessity to i stall units for de-ironing and softening of water and treatment from nitrates.

7. Gonchar N., Head of Depa ment of Control and Record Keeping - told about performed PR activity, web-sit of the Utility and its structure.

8. Oleinikova G., NGO MAI -86, Artemovsk Branch - told about population participation in the elaboratior of development plan for Soledar Town in the domain of water supply and wastewat r. She demonstrated the poster on environmental protection.

Presentation and discussio of TOR on EA conducting on the proposed project "Rehabilitation of pumpi capacity of Siversky Donets-Donbass Canal, UkrPromVodCherMet Munic al Utility".

1. Alipov A., First Deputy Dire tor of State Water Utility UkrPromVodCherMet - told about their wish to participat in the Ul project. They plan to perform investment projects on the amount of 2 mlnI USD on the purchase and instalment of pumping equipment. The proposed pri ects will improve efficiency and energy-saving and will give positive effects.

2. Prishepa L., Deputy Chief E ineer of State Water Utility UkrPromVodCherMet - told about the utility and that the ost of equipment was install 48 years ago. Municipal Utility UkrPromVodCherMet c nsumes about 80 million kWh per month and expected annual energy-savings are est nated to be at about 75 million kWh. 3. Cherkasova T., Financial Dire tor of State Water Utility UkrPromVodCherMet - told about financial issues of reco struction and modernisation of equipment of Siversky Donets-Donbass Canail. Cos for energy are about 50% of the total costs. Replacement of 4 pumps will 9 e economy of about 75 million kWh per year.

4. Abuzyarov I., Deputy Head f State Department of Environmental Protection and Natural Resources - underline positive environmental impacts of the projects. Due to projects implementation trans r to modern approaches is expected. Energy-saving and costs reduction will cause nprovement in environmental aspects.

5. Kuzin A., Scientific Director of IWMC - thanked everybody for attention and invited to cooperate and discuss results in the future. He said that he was very pleased to see such interest from public. He id that further information would be given on the next stages of project preparation. e announced that the second public consultation for the projects for UkrPromVodChe Met would take place after completion of EA and corresponding information wo be given in newspaper.

S gnatures: C iairman S )cretary C ordinator on public relations Attachment 13 Pictureb

liz i

Zotov N., Director of Infor ation Center of Donetsk Oblast Vodokanal

Shestakov Yu., Chief Enginee of Municipal Utility Dcnetsk Oblast Vocf'L -- _ -- tt ,4:2s"t,...... ~~~~~~~~~-----

Nasonkina N., Head of Chair in~ Donbass National Academy of Constructe Engineering

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AIipov A. First Deuy Dire or of State Wtr Ultility UJkrPromnVodChereR Attachment 14

Int rnet subscription The Second Public Consulta on have begun with new project presentation

Summary

Th 3 main topic is second public cons Iltation in Donetsk on the EA of proposed investment pr jects. Proposed projects are descr bed and benefits from their implementation are given. New project of State Water Utility U rPromVodCherMet is described and great interest of pu lic is underlined. General informati n on EA is presented.

* O Th 9 second public consultation - Ukr mVodCherMet

Attachment 15

Translation Announ ment in the Newspaper

SC urce: the Oblast newspaper "Zhizn , 24 November 2005, No. 170

29 November 2005, at 10.00 at the conference hall of State Water tility "UkrPromVodCherMet" Ac dress: 85 Artem street, Donetsk the public consultation for discussio on investment projects on the rehabilitation of water p mping capacity of the Siversky onets-Donbass Canal will be conducted. Interested pe rsons, NGOs and specialists are w come. " qHcHR$fHDOUf~f X HU :,'. r

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Attachment 16 Translation

Agenda The Second Public Consultation Meeting in the Framework of EA rocess for Proposed Investment Projects on the Urba Infrastructure Development Investment project 'Rehabilitation of pumping capacity of Sivers Donets-Donbass Canal"

101.00 0: ening A Kuzin - Scientific Director of IWM P1.10 Ir vestment Project "Reconstruction pumping stations on Siversky Donets-Donbass Canal", TDR A Orlov - General Director T Cherkasova - Economics Director

1 .30 P inciples and approaches to evalu; ion of technical state of equipment and hydro-technical u its on Siversky Donets-Donbass C nal V Didenko Deputy Director, the Sive ky Donets-Donbass Canal Operating Unit

10.45 A :out the effectiveness of introducti n of new pumping equipment on pumping stations on S versky Donets-Donbass Canal .Kharaptovich - Chief power engin r l.Borysov - Director of Slavyansk D trict Utility

1 1.15 About the Environmental Assessme I. %buzyarov- Deputy Head of State epartment of Environmental Protection

1.30v Irpact of project implementation on ater supply in Oblast .Ermakov - Deputy Head of Housir and Municipal Service Management Company

11.45 Frinciples of PR on UkrPromVodCh Met N.Berezin - Head of Technical Dep: ment

12.00 E iscussion

12.15 ,About EA results, potential positive nd negative impacts P.Kuzin - Scientific Director of IWM Attachment 17 Translation Press Release

T day, on the 29-th of November, 20 5 at 10.00 in the conference hall of State Water Utility UI rPromVodCherMet (address: Arte a str., 85 Donetsk), the public consultation on WB in\ estment project "Rehabilitation of umping capacity of Siversky Donets-Donbass Canal" wE s held. The Utility was created p 1930 for elimination of water resources deficit in D nbass. The Utility provides wat supply services for mining-and-smelting complex, in lustries, municipal sphere and pop ation in Donetsk Oblast.

In the framework of proposed inve ment projects it is planned to purchase and install p mping equipment (total costs - ab t 26 min.USD) for reconstruction of pumping station of L vel 1, 2, 3 and 4 of Siver ,y Donets-Donbass canal. As structural units of U rPromVodCherMet are not separ e juridical persons (the heads are acting on basis of le ers of attorney), information of eeds and requirements in investment resources is c piled for the Utility in general.

S4 Attachment 18 Translation Minutes of the Secon Public Consultation Meeting in the framework of investme projects on urban infrastructure development State Water tility UkrPromVodCherMet

DC netsk 29 November 2005

Pl ce - conference hall of UkrPromV dCherMet (address: Artema str., 85 Donetsk, tel./fax: 33 2-34-89, 304 21 62).

Or ganizers - Association Industri Waste Management Centre, State Water Utility US rPromVodCherMet.

Ct airman- Orlov A., Director of Stat Water Utility UkrPromVodCherMet.

Sc cretary - Suprunenko E., Enginee Technical Department of UkrPromVodCherMet;

C ordinator on public relations -B qezin N., Head of Technical Department.

5C persons were present. Registratio sheets are available at the IWMC office.

1. Orlov A., Director of St e Water Utility UkrPromVodCherMet - gave short haracteristics of the Utility and it activity. Siversky Donets-Donbass Canal (exploitation as begun in 1958) canal is ploited by the Utility. One investment projects is plementing now. Clearance an repair of open canal bed was performed without hutdown of the canal. This activi has caused the reduction in water losses on 40000 n3/day. Taking into account the gr t energy intensity, replacement of pumping equipment ill be the next important project. ue to project impiementation the energy saving will be achieved (up to 75 mln kW/hour r year). Total costs are 26 min USD, implementation Ieriod is 5 years, pay-back period i 10 years. Repayment of credit will be performed due to lconomy of costs. Environmental i pacts are positive.

2. Cherkasova T., Economic Director - characterised financial aspects of the roposed investment project. The oject is very topical due to great energy intensity and ,onstant increase of energy price the price has been increased in 2 times from 1999 - rom 12 up to 22 kopeiki for 1 k /hour). Implementation of project will allow to obtain Dconomy of 3 min USD in a year. hus, the repayment of credit will be performed due to esource saving. There is no nec sity to increase tariffs. The credit will be taken in the mount of about 25 mrn US and about 1 mnl USD will be co-financed by JkrPromVodCherMet. The repaym nt amount (taking into account bank rates) will be 39 lnin USD. Taking into account the onomy in the amount of about 54 mnl USD, the project s very attractive and the Utility m have the possibility to perform repayment before due Jate.

3 Berezin N., Head of Techni I Department - informed about technical policy aimed at energy saving. He explained so e technical moments and features of pumping stations, gave base for the necessity to reh bilitate stations. He characterised proposed project and i s main stages: design works,ep paration and disassembling works, installation and alancing and commissioning. The roject will be implemented during 5 years (2006-2010). ender on equipment purchase will b conducted. The key demands for the equipment are igh efficiency (on 20 % more than installed equipment, thus no less than 90 %) and high erformance reliability (up to 25 yea s without repair).

4. Didenko V., Deputy Directo the Siversky Donets-Donbass Canal Operating Unit - xplained key principles on evaluat n of technical state of equipment and hydro-technical nits on Siversky Donets-Donbass anal. The key task for the Utility is to perform non-stop vork of the canal. Quality manage ent system was introduced on the Utility and is covered il processes of water supply. The proposed project was discussed on technical meeting nd councils. The project impleme ation will allow to have high performance reliability and revent great ecological problems d emergency situations in Donetsk Oblast.

5. Kuzin A., Scientific Directo of IWMC - informed about performed EA in the ramework of Ul Project. According WB requirements the potential impact on the following nvironmental components were tudied: geology, water resources, atmospheric air, nicroclimate, vegetation cover, fl a and fauna, technogenic environment. Also social mpacts were studied. Results of analysis have shown that negative impacts are not xpected due to implementation of rojects.

S gnatures: C airman S cretary C ordinator on public relations

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Attachm-ent 19 Pictures

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