53118-001: Livable Cities Investment Project for Balanced Regional

Draft Initial Environmental Examination Project Number: 53118-001 August 2021 Georgia: Livable Cities Investment Project for Balanced Regional Development Package LCIP-CW-15 Rehabilitation of the Central Part of Velistsikhe Village, Gurjaani Municipality Prepared by the Municipal Development Fund and Ministry of Regional Development & Infrastructure, Government of Georgia for the Asian Development Bank. This draft initial environmental examination is a document of the borrower. The views expressed herein do not necessarily represent those of ADB's Board of Directors, Management, or staff, and may be preliminary in nature. Your attention is directed to the “terms of use” section on ADB’s website. In preparing any country program or strategy, financing any project, or by making any designation of or reference to a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area. CURRENCY EQUIVALENTS (as of 11 June 2021) Currency units – United states Dollars (USD) USD 1.00 = GEL 3.1559 WEIGHTS AND MEASURES ha – hectares km – kilometers km² – square kilometers m – meters m3 – cubic meters mm – millimeters NOTE In this report, “$” refers to US dollars ABBREVIATIONS ADB - Asian Development Bank AASHTO - American Association of State Highway and Transportation Officials CSC - Construction Supervisory Consultant DIN - Deutsches Institut für Normung EA - Executing Agency EARF - Environmental Assessment and Review Framework EHS - Environmental, Health and Safety EAC - Environmental Assessment Code EIA - Environmental Impact Assessment EMoP Environmental Monitoring Plan EMP - Environmental Management Plan ERP - Emergency Response Plan EU - European Union IEE - Initial Environmental Examination IA - Implementing Agency IFC - International Finance Corporation IUAP - Integrated Urban Action Plans GEO - Georgia GRC - Grievance Redress Commission GIS - Geographic Information System GoG - Government of Georgia GRM - Grievance Redress Mechanism HSP - Health and Safety Plans LARF - Land Acquisition and Resettlement Policy Framework LARP - Land Acquisition and Resettlement Plan LCIP - Livable Cities Investment Program MDF - Municipal Development Fund MPC - Maximum Permissible Concentrations MRDI - Ministry of Regional Development and Infrastructure MoEPA - Ministry of Environmental Protection and Agriculture MESD - Ministry of Economy and Sustainable Development MPC - Maximum Permissible Concentration NACHP - National Agency for Cultural Heritage Preservation NEA - National Environmental Agency PCRs - Physical Cultural Resources PIU - Project Implementation Unit PWD - People with Disabilities REA - Rapid Environmental Assessment SanN&R - Sanitarian Norms and Rules SPS - Safeguard Policy Statement SSEMP - Site-Specific Environmental Management Plan SWMCG - Solid Waste Management Company of Georgia TRTA - Transaction Technical Assistance WMP - Waste Management Plan WWTP - Wastewater Treatment Plant TABLE OF CONTENTS EXECUTIVE SUMMARY 1 A. Project Rationale, Impact, Outcome and Outputs 1 B. Environmental Categorization and Environmental Due Diligence 2 C. Conclusions and recommendations 3 INTRODUCTION 5 A. Background 5 B. Purpose of the Initial Environmental Examination 6 POLICY, LEGAL AND ADMINISTRATIVE FRAMEWORK 7 A. Country Environmental Safeguard Policies 7 B. International Environmental Agreements and Applicability to LCIP 22 C. ADB Safeguard Policy Statement’s Environmental Requirements 23 D. Compatibility between Country’s and ADB Safeguard Policy 26 E. Administrative Framework 34 DESCRIPTION OF THE PROJECT 35 A. Reconstruction and Rehabilitation of Buildings 36 B. Rehabilitation of Central Street and Square Near Theater 38 C. Rehabilitation of Recreational Park 39 D. Construction of Bus Station 41 E. Wastewater Treatment 41 F. Drainage Network 45 ANALYSES OF ALTERNATIVES 47 BASELINE ENVIRONMENT 49 A. General Description 49 B. Geology, Geomorphology and Hazardous Geological Processes 50 C. Climate and Air Quality 50 D. Noise 55 E. Vibration 58 F. Hydrology 59 G. Soils 62 H. Biological Environment 65 I. Socio-Economic Environment 69 J. Infrastructure 70 K. Education 70 L. Cultural heritage 70 M. Tourism 73 ANTICIPATED ENVIRONMENTAL IMPACTS AND MITIGATION MEASURES 74 A. Methodology 74 B. Summary of Activities and Anticipated Impacts 74 C. Required Environmental Documents 77 D. Air quality 77 E. Noise and Vibration 78 F. Water quality 80 G. Soil Quality and Topsoil Management 82 H. Biological Environment 82 I. Waste Management 84 J. Traffic 87 K. Impacts on Archaeological and Cultural Heritage Sites 88 L. Health and Safety Risks for Local Community 90 M. Occupational Health and Safety Risks 92 N. Construction Camps 93 O. Above plans will be approved by the Engineer prior to the beginning of Cumulative and Transboundary Impacts 94 INFORMATION DISCLOSURE, CONSULTATION AND PARTICIPATION 95 A. Stakeholder Consultations 95 B. Grievance Redress Mechanisms 95 ENVIRONMENTAL MANAGEMENT AND MONITORING PLAN 100 A. Environmental Management Plan (EMP) 100 B. Environmental Monitoring Plan (EMoP) 119 CONCLUSIONS AND RECOMMENDATIONS 125 A. Conclusions 125 B. Recommendations 127 Annex A. Impact Assessment Criteria 129 Annex B. esults of the inventory of trees and plants in the study area 138 Annex C. Minutes of Online Meetings with Stakeholders 171 Annex D. Rapid Environmental Assessment (REA) 179 Annex E. NACHP Confirmation Letter on Approval of the Envisaged Works 187 LIST OF TABLES Table 1 Applicable GoG Environmental Legislation and Specific Requirements for LCIP 7 Table 2 Ambient Air Quality Standards 14 Table 3 Georgian Standards for Noise Levels 15 Table 4 Applicable Noise Level Guidelines Per IFC EHS Guideline 16 Table 5 Applicable Work Environment Noise Limits Per IFC EHS Guidelines 16 Table 6 Georgian General Admissible Vibration Values 16 Table 7 AASHTO Maximum Vibration Levels for Preventing Damage 17 Table 8 Max. Admissible Concentrations of Various Substances and Elements in Soils 17 Table 9 Potable Water Criteria 18 Table 10 Applicable Standards for Surface Water Quality 18 Table 11 Water Quality Requirements by Water Use Category 19 Table 12 Indicative Values for Treated Sanitary Sewage Discharges 20 Table 13 Clearances and Permissions Required 21 Table 14 International conventions and treaties and Applicability to LCIP 22 Table 15 Comparative Analysis of Government and ADB Safeguard Requirements 26 Table 16 Quality requirements for (treated) wastewater 43 Table 17 Technical characteristics of biological treatment 44 Table 18 Air quality measurement results 51 Table 19 CO2 Measurement Results 51 Table 20 Dust (PM2,5; PM10) Measurement Results 52 Table 21 Noise measurement results 55 Table 22 Vibration measurement results 59 Table 23 Water sampling results in selected wells and Tchermiskhevi River 60 Table 24 List of taken samples 62 Table 25 Sampling methodology description 63 Table 26 Results of chemical analysis of soil mg/kg 64 Table 27 Anticipated site-specific impacts of the project 75 Table 28 Worker’s safety aspects 92 Table 29 Environmental Management Costs 105 Table 30 Environmental Management Matrix 107 Table 31 Environmental Monitoring Plan 120 Table 32 Impact assessment criteria for noise and vibration 129 Table 33 Impact assessment criteria for water 130 Table 34 Impact assessment criteria for soil 131 Table 35 Impact assessment criteria for geological environment 132 Table 36 Impact assessment criteria for the biological environment 133 Table 37 Impact assessment criteria for the visual/landscape environment 134 Table 38 Impact assessment criteria for the social environment 135 Table 39 Impact assessment criteria for the historical-cultural monuments 137 LIST OF FIGURES Figure 1 Project direct and indirect impact areas 35 Figure 2 Plan of the buildings to be rehabilitated within the project 37 Figure 3 Existing situation and render of Velisthikhe local administration office 37 Figure 4 Current situation and proposed render of the Square near the Theatre 38 Figure 5 Current situation and render of central street of the village 38 Figure 6 Current situation and render of the Theater of the village Velistsikhe 39 Figure 7 Drawing of central park of Velistsikhe 40 Figure 8 Existing appearance of the central park of Velistsikhe 40 Figure 9 Render of the pavilion 41 Figure 10 Biological treatment plant 42 Figure 11 Location of the planned wastewater treatment plants 42 Figure 12 Distance between planned WWTPs and the nearest residential house 45 Figure 13 Existing situation of the area for WWTP construction 46 Figure 14 Location of village Velistsikhe 49 Figure 15 15-minute dust (PM2,5) test in the park 52 Figure 16 15-minute dust (PM2,5) test nearby Church street 53 Figure 17 15-minute dust (PM10) test nearby Church street 53 Figure 18 15-minute dust (PM2,5) test nearby the proposed WWTP 54 Figure 19 15-minute dust (PM10) test nearby the proposed WWTP 54 Figure 20 12-hour uninterrupted noise level graph in the park 55 Figure 21 3-hour (9:00 -12:00) noise level graph near Church street 56 Figure 22 9-hour (12:00 – 21:00) noise level graph near Church street 56 Figure 23 12-hour uninterrupted noise level graph near the proposed WWTP 56 Figure 24 Nearby Church street 57 Figure 25 Nearby the proposed WWTP 57 Figure 26 VM-6380 Digital 3-Axis Vibration Meter Piezoelectric Sensor 58 Figure 27 Map of the vibration measurement locations 59 Figure 28 Water sampling locations 61 Figure 29 Greater horseshoe bats (Rhinolophus

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