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Sevan-Hrazdan Cascade Hydropower System Rehabilitation Project Environmental and Social Compliance Audit Report Project Number: 46941 March 2013 ARM: Sevan-Hrazdan Cascade Hydropower System Rehabilitation Project Prepared by DG Consulting Ltd for International Energy Corporation This environmental and social compliance audit report 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 “Term of Use” section of this website. ENVIRONMENTAL AND SOCIAL REVIEW REPORT SEVAN-HRAZDAN CASCADE REHABILITATION PROJECT REPUBLIC OF ARMENIA Final Version 41134_R2_Eng October 2012 DG Consulting Ltd 5 Shevardenidze Street, 0177, Tbilisi, Georgia; Reg No 205 280 998; Tel: +995 322 397 301; +995 599 500 778; e-mail: [email protected] 41134_R2_Eng Page 2 of 57 Signatures chapter Prepared by: The present Report is prepared by DG Consulting Ltd Project Manager – David Girgvliani Revision Table chapter Revision # Revised Part of Document Reason of Revision DG Consulting Ltd 41134_R2_Eng Page 3 of 57 TABLE OF CONTENTS 1 Nature of the Project ................................................................................................................................ 5 1.1 Introduction ........................................................................................................................................ 5 1.2 Description of the Proposed Project ................................................................................................... 6 2 The Existing Company/Facility Conditions and Area of Influence ............................................................. 8 2.1 Overview of IEC organizational structure............................................................................................ 8 2.2 EHS Organization and Management ................................................................................................... 8 2.3 SH Cascade Facilities Description and Planned Rehabilitation.......................................................... 10 2.3.1 Sevan HPP...................................................................................................................................... 10 2.3.2 Hrazdan HPP .................................................................................................................................. 11 2.3.3 Argel HPP ....................................................................................................................................... 12 2.3.4 Arzni HPP ....................................................................................................................................... 13 2.3.5 Kanaker HPP .................................................................................................................................. 13 2.3.6 Yerevan HPP1 ................................................................................................................................ 14 2.3.7 Yerevan HPP3 ................................................................................................................................ 15 2.3.8 Diversion System of Seven-Hrazdan HPP Cascade ........................................................................ 15 2.3.9 Power evacuation and auxiliary infrastructure ............................................................................. 17 2.3.10 Summary of Planned Rehabilitation Works .................................................................................. 17 2.4 Project Area of Influence................................................................................................................... 18 3 Regulatory requirements ........................................................................................................................ 20 3.1 National Regulatory requirements .................................................................................................... 20 3.2 Applicable EBRD and ADB requirements and standards ................................................................... 23 4 The Company’s Environmental Performance .......................................................................................... 25 4.1 Corporate environmental policies and management ....................................................................... 25 4.2 Compliance to National Regulatory Requirements ........................................................................... 26 4.3 Pollution prevention and abatement ................................................................................................ 28 4.3.1 Reservoir Management ................................................................................................................. 28 4.3.2 Management of oils and lubricants ............................................................................................... 29 4.3.3 Management of Lead/acid batteries ............................................................................................. 31 4.3.4 Material /waste management ...................................................................................................... 32 4.3.5 SF6 management ........................................................................................................................... 33 4.4 Potential Adverse Impact on Environment ....................................................................................... 34 5 The Company’s Occupational Health and Safety Performance ............................................................... 36 5.1 Key Occupational Health and Safety Issues ...................................................................................... 37 5.1.1 General safety on sites .................................................................................................................. 37 5.1.2 Safety in operation and maintenance of power equipment ......................................................... 39 5.1.3 Lifting equipment .......................................................................................................................... 40 5.1.4 Pressure Systems........................................................................................................................... 41 DG Consulting Ltd 41134_R2_Eng Page 4 of 57 5.1.5 Confined Spaces ............................................................................................................................ 41 5.1.6 Working at heights ........................................................................................................................ 41 5.1.7 Management of works under water ............................................................................................. 42 5.1.8 Safety Signs ................................................................................................................................... 42 5.1.9 EHS issues related with contracts ................................................................................................. 43 5.1.10 Workplace Environment ............................................................................................................... 44 5.1.11 HR Policy ........................................................................................................................................ 44 5.1.12 Safety Records ............................................................................................................................... 45 5.2 Fire Protection and Major Accidents Control .................................................................................... 46 6 External Social Performance and Management ...................................................................................... 48 6.1 Potentially Affected Communities .................................................................................................... 48 6.2 Community Health, Safety and Security ........................................................................................... 48 6.3 Emergency Preparedness and Response .......................................................................................... 50 6.4 Involuntary Resettlement & Displacement ....................................................................................... 51 6.5 Impact on Vulnerable Groups ........................................................................................................... 52 6.6 Impact on Cultural Heritage .............................................................................................................. 53 6.7 External Stakeholder Engagement .................................................................................................... 53 7 Conclusions and Recommendations ....................................................................................................... 54 7.1 Summary of Regulatory Compliance and Key Impacts, Risks and Liabilities ..................................... 54 7.2 Non-Technical Summary of the Findings .......................................................................................... 57 7.3 Stakeholder Engagement Plan .......................................................................................................... 57 7.4 Environmental and Social Action Plan/Corrective Action Plan ......................................................... 57 FIGURES Figure 2.2.1 Corporate organization Chart ........................................................................................................
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