Government of Georgia Asian Development Bank Initial Environmental Examination Report Project Number: 44183 May 2011 Georgia: Regional Power Transmission Enhancement Project The Initial Environmental Examination is a document of the Borrower. The views expressed herein do not necessarilyThe views representexpressed those herein of ADB’s are those Board of of theDirectors, consultant Management, and do notor staff, necessarily and may representbe preliminary those in of ADB’s naturemembers,. Board of Directors, Management, or staff, and may be preliminary in nature. CONTENTS I. EXECUTIVE SUMMARY 1 II. INTRODUCTION 3 A. Overview 3 B. Scope and Objective of the IEE 3 C. Report Structure 4 III. POLICY LEGAL AND ADMINISTRATIVE FRAMEWORK 4 A. ADB Policies 4 B. Legal and Institutional Framework of Georgia 4 IV. DESCRIPTION OF PROJECT 12 A. Introduction 12 B. Location 12 C. Technical Components 14 D. Construction 15 E. Associated Facilities 16 V. DESCRIPTION OF ENVIRONMENT (BASELINE DATA) 16 A. Physical Resources 16 B. Biological Resources 19 C. Economic Resources 22 D. Social and Cultural Resources 24 E. Infrastructure 24 VI. ANTICIPATED ENVIRONMENTAL IMPACTS AND MITIGATION MEASURES 25 A. Introduction 25 B. Location Impacts 25 C. Design Impacts 27 D. Construction Impacts 29 E. Operation and Maintenance Impacts 32 VII. ANALYSIS OF ALTERNATIVES 33 VIII. INFORMATION DISCLOSURE CONSULTATION AND PARTICIPATION 33 A. Consultation Undertaken 33 IX. GRIEVANCE REDRESS MECHANISM 35 A. Introduction 35 B. Type of Grievances 35 C. Submission of Grievance 35 D. Grievance Resolution Process 36 E. Confidentiality and Anonymity 37 X. ENVIRONMENTAL MANAGEMENT PLAN 37 3 A. Introduction 37 B. Overall Institutional Framework for Project Implementation 37 C. Institutional Framework for EMP Implementation 38 D. Environmental Mitigation and Monitoring Matrices 38 E. Environmental Safeguards Capacity Assessment and Institutional Strengthening Requirements 45 F. Environmental Management and Monitoring Costs 46 XI. CONCLUSION AND RECOMMENDATION 47 A. Findings and Recommendations 47 B. Conclusion 48 XIII. APPENDIX 1 49 A. Stakeholder Consultations in v. Khorga, Khobi rayon 49 B. Public Consultations in v. Khorga, Khobi rayon 50 4 ABBREVIATIONS ADB - Asian Development Bank APA - Agency of Protected Areas CEMP - Construction Environmental Management Plan EA - Executing agency EBRD - European Bank for Reconstruction and Development EIA - Environmental Impact Assessment EMP - Environmental Management Plan ESIA - Environmental and Social Impact Assessment GoG - Government of Georgia GRL - Georgia Red List GSE - Georgia State Electrosystem IEE - Initial Environmental Examination IEEE - Institute of Electrical and Electronics Engineers IMO - Independent Monitoring Organization KNP - Kolkheti National Park LARP - Land acquisition and resettlement plan NEA - National Environmental Agency NGO - Non-governmental organization PCB - polychlorinated biphenyl PIU - Project Implementation Unit (within GSE) SCADA - Supervisory Control and Data Acquisition SPS - Safeguard Policy Statement (of ADB, June 2009) TL - Transmission line UNFCCC - United Nations Framework Convention on Climate Change USAID - Unites States Agency for International Development WB - World Bank 1 I. EXECUTIVE SUMMARY 1. The Asian Development Bank (ADB) is providing technical assistance to the Government of Georgia (the Government) to support Georgia State Electrosystem (GSE) in assessing the viability of options to enhance power transmission capacity through various hardware and physical infrastructure improvements to rehabilitate and strengthen power transmission within Georgia, as well as provide the potential to eventually export power within the region. 2. The Regional Power Transmission Enhancement Project (the Project) comprises three main components: (i) substation rehabilitation and improvements (ii) construction of a new Khorga 220/110 kV substation and iii) consulting services. Only component ii) involves activities that could have an impact on the environment. 3. The proposed 220/110 kV Khorga Substation will be an important addition to the transmission system in western Georgia. It will guarantee stable transmission of energy produced at Enguri hydropower station to the western region of Georgia, especially also to the Poti industrial zone and to Turkey through Batumi substation. In addition it will help stabilize transmission power flows providing additional event redundancy and lowering the incidence of outages. Khorga substation will eventually be connected to the planned 500/220 kV substation in Jvari via a double circuit 220 kV transmission line. Jvari substation in turn, is one of the main components of the Black Sea Transmission Network Project scheme and the Georgian transmission grid as a whole. 4. To comply with ADB’s requirements for environmental assessment an Initial Environmental Examination has been prepared for the Khorga substation. The IEE: assesses the existing environmental conditions in the project area; assesses the proposed location, design, construction and operation activities and evaluates their potential impacts; proposes appropriate mitigation and monitoring measures that are incorporated into an Environmental Management Plan that when implemented will ensure that potential adverse impacts are avoided or minimized so that residual impacts are reduced to acceptable levels. 5. The IEE is based on secondary sources of information, field inspection and information gathered during community and stakeholder consultations. 6. The proposed substation site is located at Khorga village in Khobi rayon (district) of the Samegrelo Region in West Georgia. The site comprises 13.5 hectares (ha) of flat, low-lying agricultural land that forms part of an expansive agricultural area which has been under cultivation for many years. As such the area has relatively low biodiversity value. 7. Overall the Regional Power Transmission Enhancement Project will generate only minor environmental impacts that can be reduced to acceptable levels through implementation of practical mitigation measures normally associated with internationally recognized good engineering practice. Key findings of the IEE are summarized below. i. No significant natural habitats will be affected by the Khorga substation development due to its location within an area where the natural habitat has been highly modified by recent agricultural activities and human settlement. ii. The Khorga substation site has been selected to avoid environmentally sensitive areas, villages, settlements and religious and cultural/heritage sites and to avoid significant social impacts and costs associated with land acquisition and resettlement iii. The impact of the substation site on agricultural land is limited and comprises the loss of 13.5 ha of low lying state-owned land that has hitherto been leased informally to local farmers. Compensation for the loss of agricultural production by informal lessees will be paid to project affected people according to the Land Acquisition and Resettlement Plan. iv. An Environmental Management Plan (EMP) has been prepared and will be implemented during all phases of project implementation. The EMP identifies the potential environmental impacts arising from the project along with a corresponding schedule of mitigation measures to reduce the impacts to acceptable levels. It also includes the institutional arrangements for implementing the EMP to ensure its effectiveness. 8. It is considered that the project will contribute positively to the economic development of the Adjara region through: i. Improved functionality of the national grid ii. Improved reliability and security of power supply to the region iii. Meet the increased power demand of Poti industrial zone and the region iv. Guarantee transmission of energy to Turkey 9. The IEE, including the EMP is considered sufficient to meet the environmental safeguard requirements for the Regional Power Transmission Project. Therefore, further more detailed assessment by way of an Environmental Impact Assessment is not required for this project. 3 II. INTRODUCTION A. Overview 10. Since 2002 the Government of Georgia (the Government) has made it a priority to rehabilitate key infrastructure (energy, transport, water, and rural facilities) and the Government has substantially increased investments in these sectors with the support of various development partners including Asian Development Bank (ADB), European Bank for Reconstruction and Development (EBRD), United States Agency for International Development (USAID), and the World Bank (WB). 11. The Asian Development Bank (ADB) is providing Technical Assistance (TA) to the Government of Georgia (the Government) to support Georgia State Electrosystem (GSE) in assessing the viability of options to enhance power transmission capacity through various hardware and physical infrastructure improvements to rehabilitate and strengthen power transmission within Georgia, as well as provide the potential to eventually export power within the region. 12. The Regional Power Transmission Enhancement Project (the Project) comprises three main components: (i) substation rehabilitation and improvements (ii) construction of a new Khorga 220/110 kV substation and iii) consulting services. 13. A feasibility study is currently being undertaken and requires preparation of safeguards assessments, including preparation of an Initial Environmental Examination (IEE) in respect of the Khorga substation component. Implementation of the