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United Nations Development Programme Project Document Project title: Sustainable Cities in Turkmenistan: Integrated Green Urban Development in Ashgabat and Awaza Country: Implementing Partner: Management Arrangements: Turkmenistan State Committee for Environmental National Implementation Modality Protection and Land Resources of (NIM) Turkmenistan UNDAF/Country Programme Outcome: Outcome 2.2: Environmentally sustainable use of natural resources contributes to effectiveness of economic processes and increased quality of life UNDP Strategic Plan Outputs: Output 1.3: Solutions developed at national and sub-national levels for sustainable management of natural resources, ecosystem services, chemicals, and waste. Output 1.5. Inclusive and sustainable solutions adopted to achieve increased energy efficiency. UNDP Social and Environmental Screening Category: UNDP Gender Marker: Low Risk GEN1 Atlas Project ID/Award ID number: 00081872 Atlas Output ID/Project ID number: 00091000 UNDP-GEF PIMS ID number: 5452 GEF ID number: 9279 Planned start date: Planned end date: September 2017 August 2023 LPAC date: TBD Brief project description: Population growth and economic development have led to rapid expansion of cities in Turkmenistan over the past two decades, most notably in the capital city of Ashgabat and the resort zone of Awaza on the Caspian Sea. This growth has had an increasing negative environmental impact – resource consumption, waste, local air and water pollution, and emissions of greenhouse gases (GHG). Ashgabat and Awaza have already embraced some measures to manage this impact. But there remains much untapped technical potential to decrease the volume and impact of private vehicle traffic in all cities, further expand efficient street lighting, reduce waste and increase recycling, and introduce “green” practices to hotels. 1 | P a g e The development challenge of the project is to measurably reduce the negative impacts of urban growth in Turkmenistan while also advancing social and economic development goals. To this end, the project will provide technical assistance, institutional and policy support, organization and development of programs, and promotion of behavioral change, all in conjunction with national priorities and specific needs articulated by the Government. Measures introduced in Ashgabat and Awaza will yield significant GHG emissions reductions and social benefits in themselves, while also creating a basis for replication elsewhere in Turkmenistan. Financing Plan GEF Trust Fund USD 6,060,046 UNDP TRAC resources USD 100,000 (1) Total Budget administered by UNDP USD 6,160,046 PARALLEL CO-FINANCING (all other co-financing that is not cash co-financing administered by UNDP) Government USD 57,000,000 (2) Total co-financing USD 57,000,000 (3) Grand-Total Project Financing (1)+(2) USD 63,160,046 Signatures Signature: print name below Agreed by State Date/Month/Year: Committee for Environmental Protection and Land Resoures Signature: print name below Agreed by UNDP Date/Month/Year: 2 | P a g e I. TABLE OF CONTENTS I. Table of Contents ............................................................................................................................................... 3 II. Development Challenge ..................................................................................................................................... 4 III. Strategy .............................................................................................................................................................. 6 IV. Results and Partnerships.................................................................................................................................... 9 V. Feasibility ......................................................................................................................................................... 18 VI. Project Results Framework .............................................................................................................................. 23 VII. Monitoring and Evaluation (M&E) Plan ........................................................................................................... 26 VIII. Governance and Management Arrangements ................................................................................................ 31 IX. Financial Planning and Management ............................................................................................................... 33 X. Total Budget and Work Plan ............................................................................................................................ 35 XI. Legal Context ................................................................................................................................................... 41 XII. Mandatory Annexes ......................................................................................................................................... 42 Annex A. Multiyear Work Plan ............................................................................................................................... 43 Annex B: Monitoring Plan....................................................................................................................................... 45 Annex C. Evaluation Plan ........................................................................................................................................ 51 Annex D. GEF Climate Change Tracking Tool at Baseline ........................................................................................ 52 Annex E. Terms of Reference for the Project Board and the Project Manager...................................................... 53 Annex F. UNDP Social and Environmental Screening Template ............................................................................. 59 Annex G. Environmental and Social Management Plan (ESMP) ............................................................................ 60 Annex H. UNDP Project Quality Assurance Report ................................................................................................ 61 Annex I. UNDP Risk Log .......................................................................................................................................... 62 Annex J. Calculations of Potential Energy Savings and GHG Emissions Reductions ............................................... 67 Annex K. Additional Agreements ............................................................................................................................ 85 XIII. Additional Annexes .......................................................................................................................................... 93 Annex L. Gender Mainstreaming Analysis and Action Plan ..................................................................................... 94 Annex M. Co-financing letters .................................................................................... Error! Bookmark not defined. 3 | P a g e II. DEVELOPMENT CHALLENGE A nation of approximately 5.3 million citizens, Turkmenistan is in southwestern Central Asia, between the Caspian Sea and the Amu-Darya River. Turkmenistan is bordered by Kazakhstan to the north, Uzbekistan to the northeast and east, Afghanistan to the southwest, and Iran to the south. The population of Turkmenistan is growing by approximately one percent per year. The country is also undergoing a steady shift toward greater urbanization, with an increasing proportion of citizens living in cities. Figure 1 shows the increase in total population and urban population of the country between 2000 and 2014. Figure 1. Total Population Growth and Urban Population Growth in Turkmenistan, 2000-2014 6 51 50 5 Total population 49 4 48 Urban population 3 people) 47 Urban Urbanpopulation (percentof total) 2 population 46 (% of total) Total population and total urban population of population and (millions total urban Total population 1 45 - 44 2000 2002 2004 2006 2008 2010 2012 2014 The most notable recent urban growth in Turkmenistan has taken place in two distinct locales – the capital city of Ashgabat and the new resort zone of Awaza on the Caspian Sea. Ashgabat’s population has increased by about 70 percent in the last 15 years, from about 524,000 in the year 2000 to more than 900,000 in 2014. This population growth has triggered the creation of several new developed areas, many major new public and residential building projects, and expansion of associated infrastructure. Notably, the city is currently creating facilities and upgrading infrastructure in preparation for hosting the 5th Asian Indoor and Martial Arts Games in September 2017. Just eight years ago, Awaza was a modest beach town with minimal infrastructure or services beyond rest and recreation for local residents. Then, President Gurbanguly Berdymuhamedow articulated his vision for creation of a world-class tourist resort at Awaza. Since being designated in 2007 as a national tourist zone, Awaza has undergone rapid development, with the construction of more than 30 hotels and other lodging facilities, parks, recreation facilities, and accompanying infrastructure, including roads, a new gas-fired power plant, a desalination plant on the Caspian Sea, a sewage treatment plants, water supply networks, and a full renovation of the airport at 4 | P a g e the nearby city of Turkmenbashi. Awaza is also being promoted as a potential spot for headquarters for corporations