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Georgian Water Project Corporate Safeguards Audit Report July 2020 Georgia: Georgian Water Project Prepared by ERM Environmental Resources Management SRL (ERM Romania) for the Asian Development Bank. This corporate safeguards 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 “Terms of Use” section of this 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. Environmental and Social Gap Analysis Report Corporate Environmental and Social Management System of the Georgia Global Utilities JSC and Georgian Water & Power Subproject Audit 9 July 2020 Project No.: 0558790 The business of sustainability Document details The details entered below are automatically shown on the cover and the main page footer. PLEASE NOTE: This table must NOT be removed from this document. Document title Environmental and Social Gap Analysis Report Document subtitle Corporate Environmental and Social Management System of the Georgia Global Utilities JSC and Georgian Water & Power Subproject Audit Project No. 0558790 Date 9 July 2020 Version 1.2 Author ERM Company Name Georgia Global Utilities JSC Document history ERM approval to issue Version Revision Author Reviewed by Name Date Comments Draft 1.0 ERM Iulia Luta Elena- 22 June Draft to Company Daniela 2020 and ADB Afrenie Final 1.1 ERM Iulia Luta Elena- 3rd July 2020 Final to Company Daniela and ADB Afrenie Final 1.2 ERM Iulia Luta Elena- 9 July 2020 Final, addressing Daniela second round of Afrenie comments, to Company and ADB www.erm.com Version: 1.2 Project No.: 0558790 Company: Georgia Global Utilities JSC 9 July 2020 Signature Page 9 July 2020 Environmental and Social Gap Analysis Report Corporate Environmental and Social Management System of the Georgia Global Utilities JSC and Georgian Water & Power Subproject Audit Elena-Daniela Afrenie Iulia Luta Romania & Poland Country Manager Project Manager ERM Environmental Resources Management SRL (ERM Romania) 145 Calea Victoriei, 8th floor Victoria Center, District #1, 010072 Bucharest, Romania © Copyright 2020 by ERM Worldwide Group Ltd and/or its affiliates (“ERM”). All rights reserved. No part of this work may be reproduced or transmitted in any form, or by any means, without the prior written permission of ERM. www.erm.com Version: 1.2 Project No.: 0558790 Company: Georgia Global Utilities JSC 9 July 2020 ENVIRONMENTAL AND SOCIAL GAP ANALYSIS REPORT TABLE OF CONTENTS Corporate Environmental and Social Management System of the Georgia Global Utilities JSC and Georgian Water & Power Subproject Audit TABLE OF CONTENTS Signature Page ............................................................................................................................................ 3 TABLE OF CONTENTS .......................................................................................................................... I List of Tables ................................................................................................................................................ i List of Figures ............................................................................................................................................... i Acronyms and Abbreviations ........................................................................................................................ ii 1. EXECUTIVE SUMMARY .............................................................................................................. 1 2. INTRODUCTION .......................................................................................................................... 4 2.1 Background .................................................................................................................................... 4 2.2 Applicable Standards ..................................................................................................................... 4 2.3 Limitations...................................................................................................................................... 5 3. DESCRIPTION OF THE COMPANY, ITS OPERATIONS AND ACTIVITIES ............................. 6 3.1 Overview of the GGU structure ...................................................................................................... 6 3.2 Overview of the subproject covered by the E&S Assessment ....................................................... 7 3.2.1 Water supply system ..................................................................................................... 7 3.2.2 Wastewater collection system ....................................................................................... 1 3.2.3 Description of the activities under ADB use of proceeds .............................................. 1 4. OVERVIEW OF THE APPROACH AND METHODOLOGY FOR THE GAP ANALYSES ......... 4 4.1 Desktop Review ............................................................................................................................. 4 4.2 Virtual Management Interviews ...................................................................................................... 4 4.3 Reporting ....................................................................................................................................... 7 5. E&S GAP ANALYSES FINDINGS ............................................................................................... 8 5.1 Commentary on eligibility of the Project for ADB Funding ............................................................. 8 5.2 ADB Project Categorization ........................................................................................................... 8 5.3 Reputational risk assessment ........................................................................................................ 9 5.4 Presentation of E&S Findings ...................................................................................................... 10 5.4.1 Environmental and Social Assessment and Management .......................................... 10 5.4.2 Labour and working conditions ................................................................................... 26 5.4.3 Health and Safety ....................................................................................................... 27 5.4.4 Involuntary Resettlement ............................................................................................ 34 5.4.5 Biodiversity Conservation and Sustainable Natural Resource Management .............. 36 5.4.6 Indigenous peoples ..................................................................................................... 36 5.4.7 Physical Cultural Resources ....................................................................................... 37 5.5 E&S Gaps Identified .................................................................................................................... 37 APPENDIX A LIST OF DOCUMENTS REVIEWED ............................................................................. 18 APPENDIX B EXTERNAL FACTORS REVIEW .................................................................................. 47 List of Tables Table 5-1 ADB Project Categories relevant for the assessed renewable assets ............................ 8 Table 5-2 ADB Project Categorisation ............................................................................................. 9 Table 5-3 E&S Findings Table ......................................................................................................... 1 List of Figures Figure 3-1 Water production and release scheme ............................................................................ 1 www.erm.com Version: 1.2 Project No.: 0558790 Company: Georgia Global Utilities JSC 9 July 2020 Page i ENVIRONMENTAL AND SOCIAL GAP ANALYSIS REPORT TABLE OF CONTENTS Corporate Environmental and Social Management System of the Georgia Global Utilities JSC and Georgian Water & Power Subproject Audit Figure 5-1 GGU ESMS structure ..................................................................................................... 11 Figure 5-2 GGU Management Organisation ................................................................................... 13 Figure 5-3 GGU Technical Department Organisation ..................................................................... 15 Figure 5-4 E&S Management Staffing ............................................................................................. 16 Figure 5-5 GGU Covid 19 response ................................................................................................ 34 Acronyms and Abbreviations Name Description ADB Asian Development Bank CAP Corrective Action Plan CLS Core Labour Standards EDFIs European Development Finance Institutions EFR External Factors Review EHS Environmental, Health and Safety E&S Environmental & Social ESMS Environmental and Social Management System GGU Georgia Global Utilities GWP Georgian Water and Power HPP Hydropower project HS Health & Safety ILO International Labour Organisation km Kilometre kV Kilovolt MW Megawatt SPS Safeguard Policy Statement ToR Terms of Reference WF Wind Farm www.erm.com
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