Environmental Assessment

Environmental Monitoring Report

Bi-Annual Report July to December 2016 Loans 2560/2843-GEO

GEO: Road Corridor Investment Program–Tranches 1 and 3

Construction Supervision of Kobuleti Bypass Road

Prepared by DOHWA Engineering Co. Ltd., Korea for the Roads Department of the Ministry of Regional Development and Infrastructure of Georgia and the Asian Development Bank.

This environmental monitoring 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.

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.

N 2-12/159 159-2-12-2-201701091046 09/01/2017

To: Mr. Ari Kalliokoski Transport Economist Transport and Communication Division Central and West Asia Department Asian Development Bank

Dear Mr. Ari,

The Roads Department of Georgia provides you with BAEMR for construction of Kobuleti Bypass Road (Lot -2) – July-December, 2016.

Please be informed that BAEMR document was revised by RD and regional Environmental Safeguards Consultant of ADB - Keti Dgebuadze.

Please see attached file, for your and Zehra Abbas’s (CEF) final clearance and disclosure.

Sincerely,

Irakli Khergiani

Vice-Chairman of Roads Department Republic of Georgia Roads Department of Georgia Asian Development Bank, Loan No. 02560-GEO Road Corridor Investment Program

BI-ANNUAL ENVIRONMENTAL MONITORING

REPORT

Loan No. 02560 – GEO JULY – DECEMBER 2016

REPUBLIC of GEORGIA: ROAD CORRIDOR INVESTMENT PROGRAM – PROJECT 1, CONSTRUCTION SUPERVISION OF KOBULETI BYPASS ROAD

FINANCED BY THE ASIAN DEVELOPMENT BANK

Prepared by:

DOHWA Engineering Co., Ltd. Korea

For:

Roads Department of the Ministry of Regional Development and Infrastructure of Georgia

Endorsed by:………………………………… ……Date:…………………….. Mr. Irakli Khergiani (Deputy Chairman)

Bi-annual Environmental Monitoring Report (July-December 2016) DOHWA Engineering Co., Ltd. Korea

Republic of Georgia Roads Department of Georgia Asian Development Bank, Loan No. 02560-GEO Road Corridor Investment Program

TABLE OF CONTENTS

EXECUTIVE SUMMARY AND CONCLUSIONS i PART I: INTRODUCTION 2 PRELIMINARY INFORMATION 2 1.1 Project Background and Objective of the Environmental Monitoring Activity 2 1.2 The Project Area 3 1.4 Project Progress for the Reporting Period 6 1.5 Changes in Project Organization and Environmental Management Team 9 PART II: ENVIRONMENTAL MONITORING 11 2.1 Framework for Environmental Monitoring 11 2.2 Summary of Performed Environmental Monitoring Activities 13 PART III: ENVIRONMENTAL MANAGEMENT 16 3.1 Environmental Management Plan (EMP) 16 3.2 Site Inspections and Audits 16 3.2.2 Results of Monitoring and Audits 17 Choloki Campsite 17 Ochkhamuri Campsite 17 Laituri Campsite 17 Bobokvati Campsite 18 Chakvi Campsite 18 3.2.3 Monitoring of Road Construction Sites 18 3.2.4 Monitoring of Tunnel Construction Sites 18 3.2.5 Monitoring of Quarry Sites 18 3.2.6 Visual Assessment of the Rivers and Waters Stream Environment 19 3.2.7 Actions Taken to Reflect the Findings of ADB Mission during the Reporting Period 22 3.2.8 Evaluation of HSE Documentation and Record Keeping 25 3.2.9 Evaluation of General Occupational Health and Safety Practices 25 3.2.10 Impact on Biodiversity 25 3.3 Non-Compliance Notices 25 3.4 Corrective Action Plan 27 3.10 Consultations and Complaints 29 3.10.1 HSE Issues Reported through the Grievance Redress Mechanism (GRM) Process 29 3.10.2 Health and Safety Issues, raised by the Local Government Institutions 29 3.10.3 Trainings 29 ANNEXES 30

Bi-annual Environmental Monitoring Report (July-December 2016) DOHWA Engineering Co., Ltd. Korea

Republic of Georgia Roads Department of Georgia Asian Development Bank, Loan No. 02560-GEO Road Corridor Investment Program

List of Figures

Figure 1: Location Map of the Project 5 Figure 2: Environmental Monitoring Work Coordination Set-Up 10

List of Tables

Table 1: Baseline Information for the Project Road 4 Table 2: Construction Progress since Commencement of Construction up to Date within the Scope of Lot-2 6 Table 3: Environmental Aspects for the Management and Monitoring 11 Table 4: Ambient Air Quality Guidelines in Georgia 13 Table 5: IFC Noise Level Guidelines 13 Table 6: PM Measurements (average values in mg/ m3) at Selected Sites for Jul–Dec 2016 14 Table 7: Noise Measurements (Average) at Selected Sites in Lot 1 for Jul-Dec 2016 14 Table 8: Potable/Ground Water Quality Measurements in Campsites (Aug, Nov 2016) 15 Table 9: Surface Water Quality in Lot 2 Rivers (November 2016) 16 Table 10: The Schedule of Conducted Audits and Monitoring in Kobuleti during the Reporting Period 17 Table 11: Observed HSE Issues and Recommendations of Environmental Specialists 20 Table 12: Action Plan and Mitigation Measures for the Upcoming Period 23 Table 13: Correspondence about the Improvement of Non-compliances Issues 26 Table 14: Corrective Action Plan 27 Table 15: Recommendations to Address HSE Issues 28

Bi-annual Environmental Monitoring Report (July-December 2016) DOHWA Engineering Co., Ltd. Korea

Republic of Georgia Roads Department of Georgia Asian Development Bank, Loan No. 02560-GEO Road Corridor Investment Program

EXECUTIVE SUMMARY AND CONCLUSIONS

1. A segment of the East–West Highway between Azerbaijan and Georgia and part of the Poti–Batumi–Sarpi road along the western coast of the country known as Adjara Bypass Project is being constructed by the Government of Georgia under loan financing from the Asian Development Bank. The Project was determined to be a Category A environmental project for which an EIA was processed. The total road length is around 45 km, mostly 2-lane (except in the vicinity of the Makhinjauri tunnel where it is connecting to existing 4-lane) with a number of bridges, culverts, retaining walls, and tunnels. Currently, out of the 4 Contract packages, Contract 1 construction work has been completed, and Contract 2 is actively being constructed with Sinohydro Company (China) as the Contractor and supervised by Dohwa Engineering Co., Ltd. (South Korea) as the Engineer.

2. Within the framework of the project’s environmental management, the supervision tasks consist of continuous monitoring by the CSC (the Engineer), environmental monitoring and management of project implementation and assistance in ensuring the implementation of environmental management practices at each stage of the construction. The environmental monitoring is to be carried out by an International Environmental Specialist with the support of domestic environmental specialists. The specialists will develop an environmental auditing protocol for the construction period, formulate a detailed environment monitoring and management plan (EMMP), regularly supervise the environmental monitoring, and submit periodic reports based on the monitoring data and laboratory analysis reports. The specialist will also develop a program for hands on training of contractor’s staff in implementing the EMMP.

3. During this current monitoring period, a number of environmental and safety issues were observed by the monitoring team and brought to the attention of the Contractor for corrective measures. During the Environmental Monitoring and Inspection Audit carried out in July- September, 2016 and September, 26 accordingly, which was attended by the head of Environmental Division of the Roads Department of Georgia Mr. G. Sopadze and International and Regional Specialists of the ADB Mr. Jeffrey Bowyer and Mrs. K. Dgebuadze respectively, some environmental, health and safety (EHS) issues were observed which are generally categorized as follows: (i) Main road and access roads; (ii) Camp sites (iii) quarry site, (iv) crushing plant, (v) Rivers crossing the main road (vi) general safety concerns, (vii) Documentation and record keeping requirements.

4. Following the inspections of the environmental specialists, an Environmental Action Plan was drafted for the implementation of necessary measures, which is shown in table #11.

Bi-annual Environmental Monitoring Report (July-December 2016) DOHWA Engineering Co., Ltd. Korea Republic of Georgia Roads Department of Georgia Asian Development Bank, Loan No. 02560-GEO Road Corridor Investment Program

PART I: INTRODUCTION

PRELIMINARY INFORMATION

1.1 Project Background and Objective of the Environmental Monitoring Activity 5. The Republic of Georgia, with its 3.72 million people (as per January, 2016), is bounded on the north by Russia and the Caucasus mountain range, to the south by Armenia and Turkey, to the west by the Black Sea and the east by Azerbaijan. With reference to ADB’s Project Data Sheet (PDS)1, the Government of Georgia is intending to develop the subregional multi-corridor to make the most of the country’s locational advantage as a transit hub for the Caucasus and for Euro-Asia road transport, particularly by providing a more efficient route for Turkey and Armenia related traffic. This sub-regional multi-corridor will also ensure Government's new strategic vision of the transport network security. The PDS identifies important of development objectives for an efficiently functioning multi-corridors such as (i) reduction of the cost of subregional and international transport, benefiting both the local economy and the economy of the subregion, and thereby stimulating the development of Euro-Asia trade links; (ii) the subregional multi-corridors also serve as principal domestic corridors linking the major cities, ports and tourist centers; (ii) and their development will enhance economic growth through more efficient passenger and freight transport, while enhancing safety.

6. In the ADB’s Report Recommendation to the President (RRP, September 2009)2 the development potentials of the East-West Highway between Azerbaijan and Georgia have been highlighted, with the ports of Poti and Batumi as the exit points in the Black Sea. These ports also serve the same function to the Agrak–Kapan–Yerevan–Bavra road in Armenia with two southern sections in Georgia. A major segment of this trade and tourist route is the 81 km Poti – Batumi – Sarpi road along the western coast of the country. This road segment, mostly located in the Adjara Autonomous Republic, is a key highway for international transit route in Georgia and a major link to beach resorts in Batumi and Kobuleti. During the tourist season, this road experiences a high volume of traffic and significant increase of accidents.

7. Because of these aforementioned issues and features, the Government of Georgia has decided with ADB’s assistance, to construct the so-called Adjara Bypass Project along the Black Sea in Adjara region. The Project was determined to be a Category A environmental project for which an EIA was processed. The Project will construct a 2-lane new road (45km), except along a 1-km stretch near Makhinjauri tunnel, where it will merge with the existing 4-lane road. In addition, the Project will have a number of new bridges, culverts, retaining walls, and tunnels. The entire project road is packaged into 4 contracts3 for preparation of detailed designs and implementation as follows:

 Contract 1 – Km 0 to Km 12.4 bypassing Kobuleti Town – a new alignment; widening of existing road from Km 31.3 to Km 33 near Makhinjauri tunnel  Contract 2 – Km 12.4 to Km 31.3 bypassing Kobuleti Town – a new alignment  Contract 3 – Km 32.3 to Km 48.470 bypassing Batumi Town – a new alignment

8. For the implementation phase of the project, construction supervision scope has been tendered with the following objectives of ensuring that (i) high quality construction is achieved; (ii) designs are carried out to the appropriate engineering standards; (iii) all work associated with the project are carried out in full compliance with the designs and specifications; (iv) the EA's engineers and domestic consultants receive in-country and international training in

1 ADB-PDS for 41122-023: Loan 2560-GEO: Road Corridor Investment Program – Project 1 (from http://www.adb.org/projects/41122-023/main). 2 ADB. September 2009. RRP – Proposed Multitranche Financing Facility Georgia: Road Corridor Investment Program. 3 Government of Georgia. MORDI-Department of Roads. February 2012. Environmental Impact Assessment. 2

selected areas of tunnel design and construction and pavement design; (v) resettlement, social, environmental, road safety, and monitoring are implemented in accordance with the recommendations of various studies, plans, analysis of the project.4 Contracts 1, 2, are covered in Tranche 1 while Contract 3 will be covered in Tranche 2.

9. As mentioned in the Terms of Reference (ToR) of the Construction Supervision, the environmental aspects would entail environmental monitoring and management of project implementation and assistance in ensuring the implementation of environmental management practices at each stage of the construction. In addition, the environmental specialist will develop an environmental auditing protocol for the construction period, formulate a detailed environment monitoring and management plan (EMMP), regularly supervise the environmental monitoring, and submit periodic reports based on the monitoring data and laboratory analysis reports. The specialist will also develop a program for hands on training of Contractor’s staff in implementing the EMMP5.

1.2 The Project Area 10. The Kobuleti Bypass section is part of the so-called Adjara Bypass Project along the Poti–Batumi–Sarpi road located the western Black Sea coast of Georgia. The project road also forms part of the main road corridor East–West Highway between Azerbaijan and Georgia. Its connection with the Black Sea ports of Batumi and Poti and the tourist beaches in Kobuleti makes this road an important trade and tourism road for Georgia. Information and data on the Project Road has been extensively elaborated in the EIA documents for the project.

11. Focusing on the entire 45 km project road, the first 16 km and the last 4 km of the project road alignment traverses flat terrains of coastal plain with elevations ranging from 0 to 30 m. The rest of the project road runs through a rolling and hilly terrain with elevations ranging from 20 to 192m. In terms of geology, the project area shows manifestation of several tectonical features such as synclines and anticlines, folds and faults. It is underlain by bedrocks which are volcanogenic sedimentary rocks represented mostly by basalts with tuffa, gravellites and marls. The rocks show signs of intense weathering and disintegration due to the wet subtropical climate. As a result the surface strata generally consist of thick deposits of delluvial (loams and clay) and laterites (loam).

12. In terms of climate, the project area falls within the classification of seaside humid subtropical climatic zone with an average rainfall of 2000mm to 2800mm evenly distributed throughout the year, peaking in September and dipping in May. The average monthly temperature ranges from 50C in winter to 22.50C in summer; and the average monthly humidity ranges from 73 to 84%, with dominant northeasterly wind direction. The Project road traverses over four (4) major rivers of length more than 15 km, namely Natanebi, Choloki, Kintrishi, and Chakvistskali; five (5) smaller rivers of lengths between 10 and 15 km, viz. Ochkhamuri, Achkva, Kinkishi, Dehkva, and Korolistskali; and 16 streams.

13. The recognized protected areas near the vicinity of the construction site is the Ispani mire, which is also a RAMSAR wetland site (number 894) located around 350 meters away from the Project road between Km 6 to 12 of Section 1. This wetland has an area of 770 ha and contains two parts – Kobuleti State Nature Reserve (Ispani II, the northern area – 331.25 ha) and Kobuleti Managed Reserve (Ispani I, the south west area – 438.75 ha). The Contractor is aware of this site and special attention is paid to avoid any direct impacts to this protected area.

14. The project’s ecosystem is generally characterized by pastureland with cornfields, rolling lands, and wetlands. There are 55 species of mammals in the area with the bats considered as

4 ADB. 12 March 2010. Outline Terms of Reference for Consultants for Construction Supervision of Tranche I and Tranche II. 5 Ibid. 3

the vulnerable terrestrial mammal. The area is considered also as one of the important sites for Western Palaearctic birds' migration, such as eagle, vulture, falcon, and owl; other fowl species found are duck, crane, grebe, pelican, etc. Out of the 54 species of reptiles recorded in Georgia, about 16 reptiles can be found along the Project alignment. Out of 12 species of amphibians that thrive in Georgia, 10 of them exist in the Project area. In terms of fisheries, there are 47 freshwater and anadromus fish species occur in rivers, and streams of Adjara. The Black Sea salmon (Salmo labrax) is an endemic and anadromus species that migrates up the rivers of Kintrishi, Chakvistskali, Charkha during the spawning season.

15. The baseline environmental information gathered during the drafting of the EIA for the project is as follows:

Table 1: Baseline Information for the Project Road Environmental Aspect Parameter Value Surface Water Quality Total dissolved solids (TDS) 44 to 164 Dissolved Oxygen (DO) concentration 7.6 to 10 Nitrate content 0.18 to 2.16 mg/l Hydrocarbons content less than 0.2 mg/l Groundwater Quality TDS less than 300 mg/l. TDS of spring water near Makhinjauri tunnel 75 mg/l. Bicarbonate as the major anion 36 to 246 mg/l Calcium as the major cation 5 to 56 mg/l Total coliform content in the groundwater wells 1,000 to 2,000 Total coliform in spring water 50,000 Noise Quality Background noise levels 27-32dBA Noise levels at a distance of 25m from the centre of 74dBA the existing Poti – Sarpi road Air Quality Concentrations of dust (PM) 0.025 to 0.89 mg/m3 CO 0.11 to 2.04 mg/m3 3 No2 0.03 to 0.042 mg/m Soil Quality Lead content 8 to 19 mg/kg, Zinc content 58 to 84 mg/kg Cobalt content 10 to 21 mg/kg Copper content 13 to 66 mg/kg Nickel content 17 to 59 mg/kg.

16. The estimated population in 2014 in Adjara Region is around 396,000, consisting of 51% living in urban areas and 49% in rural areas. The ethnic groups are Georgian (97%), Armenian (2%), Russian (0.25%), Greeks, Abkhaz, etc. The most populated city is Batumi, with a population of 161,200. The Gross Domestic Product (GDP) of Adjara was estimated to be GEL 2,039 million, contributing to 8% of the GDP of Georgia. The main industries in Adjara are manufacturing, agriculture and tourism. There are around 41 archeological sites identified near the Project area. A number of cultural monuments were discovered during the archeological expeditions in the ravines of Rivers Choloki, Ochkhamuri, Achkva, Kintrishi, Kinkishi, Chakvistskhali, Korolistskhali and Chorokhi. A map of the Project road with active construction is shown in Figure 1 below.

Active Construction

Figure 1: Location Map of the Project

1.4 Project Progress for the Reporting Period 17. As of the current date, the construction is being carried out on section Km12+400 – Km31+259, bypassing Kobuleti Town. Construction progress since commencement of the works up to date is as follows:

Table 2: Construction Progress since Commencement of Construction up to Date within the Scope of Lot-2 (Source: Monthly Progress Reports, prepared by the Engineer for the Roads Department of Georgia)

No. WORK DESCRIPTION UNIT DESIGN ACTUAL % REMARKS Setting Out and Site Clearance Basic survey and detailed setting out of road and right-of-way: On main road km 18.858 17.094 90.64 On interchanges, junctions and local roads km 8.770 4.740 54.06 Removal and disposal of wire mesh fences m 2,615 2,615 100.00 Cutting of shrubs, uprooting and transportation ha 117 109.98 93.69 1 Demolition of Walls m3 200 55.20 27.6 Tree felling & removal of Trees greater than each 860 142.00 16.51 0.1m in girth Demolition of Buildings m3 7,650 1,042 13.62 Removal & Disposal of Concrete Fences m 300 31 10.33 Earthwork Removal of top soil, loading and transportation m3 265,434 265,434 100.00 Excavation of soil and disposal (suitable for m3 759,655 698,907.78 92.00 embankment filling and unsuitable)

Shaping, leveling and compaction of roadbed 3 m 278,156 245,126.40 88.13 surface Construction of embankment (from quarry to fill) m3 2,490,134 2,490,134 100.00 2 Transport of Stockpiled topsoil and spread on 3 m 134,879 112,966 83.75 embankment slopes Construction of vertical drainage in weak soils m 548,857 308,406 56.19 (PVD) Sand blanket, 1500 mm thick m2 55,553 54,419 97.96

Laying geotextile, 250 g/m2, in reinforced 2 m 55,533 42,845 77.12 embankment Bridges Construction of Reinforced Concrete Bored Piles (BR #1,#2,#3,#4,#5,#6, ea 1,276 1,228 96.24 #7,#8,#9,#10,#11,#11.1,#11.2) Bridges #1, #2, #4, #5, #6, #7, #8, #9, #10, #11 unit 82 74 90.24 Construction of Raft/Cap Foundations Bridges #1,#2,#4,#5,#6,#7,#8,#9,#10, #11 unit 164 144 87.80 Construction of Pier Columns Bridges #1,#2,#4, #5,#6,#7,#8,#9, unit 82 72 87.80 3 #10,#11 Construction of Cross Beams Bridges #1,#2,#3,#4,#5,#6,#7,#8,#9, #10,#11,#11.1,#11.2 Construction of Abutments unit 30 27 90.00 bodies, Wing & Back Wall

Bridges #1,#2,#3,#4,#5,#6 Concreting of cast-in- 3 m 2,721 2,721 100.0 situ reinforced slab Bridges #1, #2, #3, #4, #5, #6, #7, #8, #8A, #9 #10 & #11. Installation of Pre-Cast Concrete m 6,052 6,052 100.0 Sidewalk

No. WORK DESCRIPTION UNIT DESIGN ACTUAL % REMARKS

Bridges

Bridges #1, #2, #3 and #4 Installation of 3 m 207 207 100.0 transition slabs Bridge #7 #8 & #10 Cast In-Situ Concrete Slab m 1,440 1,440 100.0 Commenced

Bridge #9 Cast In-Situ Concrete Slab m 1,180 90 7.63 (MSS) Sept. 2016 Commenced Bridge #11 Cast In-Situ Concrete Slab m 920 920 100.0 (MSS) May 11, 2015 Reinforced Concrete Culverts/Underpasses Pipe culvert (pre-cast), d = 1.5 m unit 40 40 100.0 4 Box culvert (pre-cast), 2.5 x 2.5 m, 4.0 x 2.5 m unit 16 14 87.50 Cast-in-situ box underpass, 5.0 x 6.0 m, 4.0 x Corrugated unit 14 14 100.0 4.0 m Pipe #32 Tunnels (Tunnel #1) Tunnel Excavation (Category II-III &V) by rockheader, by drilling & blasting, and by 100m3 615.31 411.38 66.86 excavator(0.5m3 capacity) Soil Installation and removal of temporary support 3 282.57 73.18 25.90 100m Vehicle/ Operation of Roadheader 851.80 360.50 42.32 hr Explotation of bulldozer with 108 horse power for Vehicle/ 22.44 21.49 95.77 collecting rocks and other operatiions hr Removal of Soil ton 104,513.29 104,513.29 100.0 Works on Spoil Area 1000m3 29.37 23.84 81.18 Installation of Permanent Steel Frames ton 261.71 168.89 64.53

Applying of Normal Shotcrete in the Main tunnel 2 100m 157.17 56.08 36.68 (t = 5,10&20cm, C20/25) Applying of Normal Shotcrete in the Main tunnel 2 100m 86.06 30.30 35.21 (t = 25&28cm, C28/35) Wire Mesh (100 X 100 X Ø4.8) ton 56.24 42.19 75.02 Equipment for applying shotcrete (cement Vehicle/ 1,456.86 1,456.86 100.0 canon) hour 5 Removal of fallen shotcrete ton 2672.23 2,166.07 81.06 Drilling of Boreholes, applying of Anchorage ton 35.53 0.96 2.70 (Ø25) Installation of Waterproofing 100m2 78.10 78.10 100.0 Laying of the PVC Pipe (Ø150) m 107.58 107.58 100.0 Laying of the perforated PVC Pipe (Ø150) m 510.00 510.00 100.0 Laying of the perforated galvanized steel tube m 472.00 472.00 100.0 (Ø200x6) Lining of the tunnel arches and walls with cast-in- 3 100m 26.36 22.85 86.68 situ concrete (C28/35) Grouting of mine rocks 100m3 8.62 8.62 100.0 Boring of holes D=60~125 in soil , Depth 100m 355.23 173.88 48.95 6~13,5 m Installation of Pipes in the Opening D=Ø114mm 100m 190.44 114.96 60.37 Soil grouting with cement m-400 and water glass m 35,523 17,323.00 48.77 Ventilation shift 874.29 614.30 70.26 Electric Lighting shift 874.29 837.68 95.81 Tunnel works service with the personnel on duty shift 874.29 819.68 93.75 Base concrete (C16/20) 100m3 0.63 0.63 100.0

No. WORK DESCRIPTION UNIT DESIGN ACTUAL % REMARKS Tunnels (Tunnel #1)

Grating block concrete (1500x1500x400), fill 2 100m 21.58 17.17 79.54 improvement Installation of reinforcing framework ton 118.64 118.64 100.0 Laying of the PVC Pipe (Ø200) m 40.00 40.00 100.0 Laying of the galvanized steel pipe (Ø200, m 80.00 80.00 100.0 t=0.4mm ) Applying of subgrade and correcting layer using 3 m 56.44 56.44 100.0 crushed stone Earth anchor construction(Φ105, Φ12.7mm x 4 ea 947.00 763.00 80.57 strand, L=10,12&14m) Tunnel No. 2 Excavation of Soil, Category II by Excavator of 3 1000m3 183.49 165.55 90.22 0.5m capacity Removal of Soil ton 165,138.26 152,167.14 92.15 Asphalt Pavement

Asphalt Pavement – Main Road

Provide and Construct Granular Subbase, 3 m 70,127 63,392.82 90.40 320mm thick

Provide and Lay Granular Base Course, 2 m 181,014 166,373.08 91.91 Compacted thickness 150mm

Provide and Apply Prime Coat as specified 2 m 173,378 155,557.64 89.72 including preparation of surface

Provide and Lay Bituminous Base, compacted 2 m 172,678 151,693.34 87.85 thickness 100mm

Provide and apply Tack Coat as specified 2 m 343,422 307,503.31 89.54 including preparation of surface

Provide and Lay Asphalt Binder Course, 2 m 171,703 150,331.74 87.55 compacted thickness 40mm.

Provide and Lay Asphalt Surface Course, 2 m 171,155 155,363.97 90.77 compacted thickness 40mm Asphalt Pavement – Ramps at Intersection

Provide and Construct Granular Sub-base, 3 m 22,807 6,851.96 30.04 6 260mm thick Provide and Lay Granular Base Course 2 m 64,514 15,821.69 24.52 Compacted thickness 150mm Provide and apply prime coat as specified incl. 2 m 60,609 17,013.49 28.07 preparation of surface

Provide and Lay Bituminous Binder Course, 2 m 60,253 16,372.29 27.17 compacted thickness 100mm

Provide and apply Tack Coat as specified 2 m 58,899 20,664.90 34.42 including preparation of surface

Provide and Lay Asphalt Surface Course, 2 m 59,757 20,566.74 34.42 compacted thickness 40mm Gravel Pavement – Service road for local transport Provide and Construct Granular Sub-base, m3 3,089 2,530.87 81.93 200mm thick

Provide and Lay Granular Base Course 2 m 12,885 10,616.23 82.39 Compacted thickness 150mm

Provide and apply Tack Coat as specified 2 m 24,577.36 24,577.36 100.0 including preparation of surface

Provide and Lay Bituminous Binder Course, 2 m 11,826 10,530.22 89.04 compacted thickness 60mm

No. WORK DESCRIPTION UNIT DESIGN ACTUAL % REMARKS

Asphalt Pavement Provide and Lay Asphalt Surface Course, m2 13,694.45 13,694.45 100.0 compacted thickness 40mm Granular Materials for shoulder

Provide, Lay and Compact Granular Material for 3 m 15,540 1,278.36 8.23 shoulders Gravel Pavement – Local Road

Provide and Construct Granular Leveling Layer 3 m 1,180 1,162.45 98.51 for Local Roads

1.5 Changes in Project Organization and Environmental Management Team 18. Environmental monitoring is overseen by the Roads Department, through a special unit called the Resettlement and Environmental Protection Unit. This unit reviews the EIAs and EMPs related to the Roads Department projects and perform monitoring of compliance of the contractor’s performance with the approved EMPs, EIAs, environmental standards and other environmental commitments of the contractor. Environmental monitoring in the field is among the work scope of the Engineer (DOHWA), and the tasks of actual monitoring is undertaken by international environmental specialist and two (2) national environmentalists. Spot surveys and assessments of environmental situations and conditions of the project site were conducted to ascertain compliance of the Contractor to the EIA’s EMP. Variances from the established baseline environmental parameters were noted and brought to the attention of the Contractor for corrective measures. Whenever necessary, certain modifications on the work program were recommended to assure compliance on the part of the Contractor (Sinohydro Company, China).

19. The Contractor had assigned an environmental, health and safety Director who would be responsible for environmental compliance based on the project EMP (found in the EIA). Likewise, the Contractor has to come up with its own EMP which served also as their guide for their own self-monitoring of the construction’s environmental aspects. This is to ensure an efficient monitoring activity at all times.

20. Environmental issues arising from the construction activities should immediately be brought to the attention of the construction supervision team to coordinate efforts in order to immediately mitigate impacts, protect the environment, and safeguard the health and welfare of the local communities. All these are to be conducted within the framework of the overall construction management and supervision. Aspects in the environmental monitoring are reported in a monthly, quarterly and bi-annual basis to the RD (PIU) and ADB. The applied environmental monitoring work coordination set-up for the Project road is represented in Figure 2 below.

ADB Gov’t of Georgia MORDI

RD (PIU)

Resettlement and Environment Protection Unit

Construction Supervision DOHWA-Team Leader

Construction Supervision DOHWA SINOHYDRO International Environmental Project Manager Specialist Domestic Environmentalists

SINOHYDRO HSE Director

Figure 2: Environmental Monitoring Work Coordination Set-Up

PART II: ENVIRONMENTAL MONITORING

21. As stated in the Environmental Monitoring Plan of the EIA Report6 the Contractor should undertake quarterly parametric monitoring of (i) noise and vibration; (ii) surface water quality; (iii) drinking water quality; and (iv) air quality.

22. Actually, air quality and noise parametric monitoring is carried out on the monthly basis, vibration level in case of necessity, but surface water quality monitoring in case if rivers are effected due to bridge construction activities.

2.1 Framework for Environmental Monitoring 23. With reference to MFF 0034-GEO: Road Corridor Investment Program – Environmental Assessment and Review Framework7, it is stated that “an EMP will be part of the overall project monitoring and supervision, and will be implemented by the Contractor with oversight from the Supervision Consultant (the Engineer) and PMU. Progress on the preparation and implementation and compliance of an EMP (Contractor’s EMP) will be included in the periodic project progress reports. Specific monitoring activities defined in the IEEs or EIAs and EMPs will be carried out by the contractor and monitored by the PMU. RD will submit reports on EMP implementation to ADB for every six months to Category A and B sensitive projects and annually for Category C projects”.

24. The environmental monitoring and management activities for the project is based on the Environmental Impact Assessment (EIA) Reports drafted for the project road component namely the Environmental Impact Assessment Report. ADB Loan No. 2560-GEO: Road Corridor Investment Program (Tranche 1)—Kobuleti Bypass, Kobuleti–Batumi Section and Batumi Bypass Design Project. This EIA report applies to the sections where construction is on- going. Based on the EIA’s EMP the environmental concerns which need to be monitored and managed are as follows:

Table 3: Environmental Aspects for the Management and Monitoring Environmental Aspect Subtopics Frequency & Location 1. Protection of Flora 1.1 Endangered species Along the entire road section – twice 1.2 Vegetation clearance a month. 2. Protection of Fauna 2.1 Construction activities Along the entire road section – twice 2.2 Poaching a month. 3. Protection Fisheries 3.1 Construction of Bridge Substructure At the bridges: #2 (Riv. Achkva), #4 3.2 Construction works in the rivers and on the (Riv. Kintrishi), #5 (Riv. Kinkisha), surrounding lands. #7-#8 (Riv. Dekhva), #11 (Riv. Chakvistskali) – once a month. 4. Waste Management 4.1 General Waste Campsites: Choloki, Ochkhamuri, 4.2 Spoil Laituri, Bobokvati, Chakvi – once a 4.3 Hazardous Waste month. 5. Fuels and 5.1 Fuels and hazardous goods. Campsites: Choloki, Ochkhamuri, Hazardous Goods Laituri, Bobokvati, Chakvi – once a Management month. 6. Water Resources 6.1 Hazardous Material and Waste Campsites and surface water near Management 6.2 Discharge from construction sites bridges: #2, 4, 5, 7, 8, 8.1, 9, 11 – 6.3 Construction of Bridges/drainage structures once a quarter. in streams/rivers 6.4 Soil Erosion and siltation 6.5 Construction activities in water bodies 7. Drainage 7.1 Excavation and earth works, and Along the entire road section – once Management construction yards a month. 7.2 Fresh road cuts may immediately trigger intensive erosion during construction and

6 Government of Georgia. MORDI-Department of Roads. February 2012. Environmental Impact Assessment. 7 ADB. Updated on December 2011. MFF 0034-GEO: Road Corridor Investment Program—Environmental Assessment and Review Framework. 11

Environmental Aspect Subtopics Frequency & Location drastic increase of sedimentation 7.3 Ponding of water 8. Soil Quality 8.1 Earth filling with borrow material Along the entire road section – once Management 8.2 Storage of hazardous and toxic chemicals a month. 9. Top Soil 9.1 Land clearing and earth works Along the entire road section – once Management Plan a month. 10. Topography and 10.1 Land clearing and earth works Along the entire road section – once Landscaping a month. 11. Borrow Areas 11.1 Degradation of borrow areas Quarries at the territories of Vil. Development & Zeda Sameba and Vil. Shuagele – Operation once a month. 12. Air Quality 12.1 Construction vehicular traffic At the bridges #1 - #11.2, tunnels #1 Management 12.2 Construction machinery and #2 – once a month. 12.3 Construction activities 13. Noise and Vibration 13.1 Construction vehicular traffic At the bridges #1 - #11.2, tunnels #1 Management 13.2 Construction machinery and #2 – once a month. 13.3 Construction activity 14. Road Transport and 14.1 Construction vehicular traffic Along the entire road section – once Road Traffic a month. Management 15. Construction Camp 15.1 Siting and Location of construction camps Construction sites – every week Management 15.2 Construction Camp Facilities 15.3 Disposal of waste 15.4 Fuel supplies for cooking and heating purposes 15.5 Site Restoration 16. Cultural and 16.1 Construction activities near religious and There was no necessity in Religious Issues cultural sites monitoring 17. Worker Health and 17.1 Anthrax Construction sites – every week Safety 17.2 Best practices 17.3 Water and sanitation facilities at the construction sites 17.4 Trainings

25. In addition, the following laws and regulations are also considered and used as legal and regulatory framework related to road construction activities of the Contractor:

(i) On Waste Management: (i) Approval of the rules of collection, storage and neutralization of the wastes of preventive treatment establishments” 16 August of 2001, 300 (“Georgian Legislative Messenger” N90 24/08/2001) (ii) “Approval of arrangement of polygon/grounds for disposal of solid household wastes and adoption of sanitary rules and norms” 24 February, #36 (Georgian Legislative Messenger #17, 07.03.03) (ii) Georgian Law on Ambient Air Protection (iii) Law of Minerals, 1996 (iv) Wildlife Law, 1996 (v) Law of Georgia “On the System of the Protected Areas, 1996 (vi) Law of Georgia on creation and management of Kolkheti protected areas (vii) Law of Georgia ‘On the Red List and Red Book’, 2003 (viii) Law of Georgia on Cultural Heritage, 2007 (ix) Environmental Standards and Norms: (i) Ambient Air Quality Norms; (ii) Noise Standards; (x) Law of Georgia “On Waste Management”, 2015;

26. For the ambient air quality, the guidelines are as shown below:8

Table 4: Ambient Air Quality Guidelines in Georgia Maximum Admissible Concentrations Parameter (MAC) mg/m3 Averaging Time Nitrogen Dioxide (NO2) 0.085 30 minutes 0.04 Annual Sulfur Dioxide 0.5 30 minutes 0.05 24 hours Carbon Monoxide 5.0 30 minutes 3.0 24 hours Soot (PM) 0.5 30 minutes 0.15 24 hours

27. Also in terms of the noise quality standards for residential areas ADB requires that the WB/IFC EHS guidelines are followed. According to the IFC, noise impacts should not exceed the levels presented in Table 5 or result in a maximum increase in background levels of 3 dB at the nearest receptor location off site.

Table 5: IFC Noise Level Guidelines

One hour Laeq (dBA) Receptor Daytime Nighttime 07:00 – 22:00 22:00 – 07:00 Residential; institutional; educational 55 45 Industrial; commercial 70 70

2.2 Summary of Performed Environmental Monitoring Activities 28. Within the previous six (6) months, from July to December 2016, the Engineer’s two (2) domestic environmentalists have been performing environmental monitoring as outlined in the EIA Report. The results of the monthly monitoring were incorporated in the Chapter “Environment” of the Engineer’s monthly reports.

29. Primarily the environmental monitoring activities at various locations at the worksites focused on (i) the quality of atmospheric air; (ii) the quality of drinking water and river water; (iii) the condition of soil; (iv) flora and fauna; (v) the condition of construction equipment and transport; (vi) waste management; and (vii) worker safety, general hygiene and sanitation.

30. The Contractor carried out instrumental measurements for air quality and noise from January to June, 2016. Measurement of surface water and groundwater quality was carried out in March and May, 2016. Water quality measurements should be carried out on a quarterly basis, especially for groundwater in camp sites as this has direct impact on the health of the work personnel. The monthly environmental parameter measurements and observations are summarized below.

(i) Air quality – Particulate matter only (PM); Due to the relatively low intensity of traffic and construction equipment and lack of residential settlements near to the project road no measurements conducted for Sulphur Dioxide, Nitrogen Oxide, and Carbon Monoxide. It is worth to mentioned, that the mentioned is the reason why the test on heavy metal concentration in the soil is not carried out.

8 Government of Georgia. MORDI-Department of Roads. July 2012. Environmental Impact Assessment Road Corridor Investment Program (Tranche 1) Kobuleti Bypass, Kobuleti-Batumi Section and Batumi Bypass Design Project. 13

The average PM measurements for the last six months construction campsites and construction sites monitored during the reporting period in 2016 indicate that the concentrations are below the threshold levels.

31. A PC-3A Respirable dust detector was used to measure the particulate data collected.

3 Table 6: PM Measurements (average values in mg/ m ) at Selected Sites for Jul–Dec 2016 Location Permeable limit Jul Aug Sep Oct Nov Dec 1 Choloki Campsite 0.5 0.025 0.021 0,021 0.022 0.031 0,025 2 Ochkhamuri Campsite 0.5 0.026 0.021 0,023 0.023 0.028 0,021 3 Laituri Campsite 0.5 0.033 0.031 0,018 0.027 0.031 0,029 4 Bobokvati Campsite 0.5 0.020 0.019 0,017 0.026 0.023 0,022 5 Chakvi Campsite 0.5 0,029 0.030 0,027 0,029 0,033 0,032 6 Bridge #1 0.5 0.023 0.021 0,016 0.023 0.024 0,021 7 Bridge #2 0.5 0.020 0.019 0,017 0.021 0.021 0,021 8 Bridge #3 0.5 0.019 0.019 0,017 0.019 0.020 0,020 9 Bridge #4 0.5 0.018 0.018 0,019 0.020 0.022 0,022 10 Bridge #5 0.5 0.021 0.020 0,017 0.019 0.021 0,020 11 Bridge #6 0.5 0.021 0.019 0,020 0.022 0.024 0,023 12 Bridge #7 0.5 0.019 0.019 0,018 0.020 0.020 0,021 13 Bridge #8 0.5 0.020 0.021 0,020 0.019 0.027 0,023 14 Bridge #81 0.5 0.021 0.022 0,015 0.023 0.025 0,024 15 Bridge #9 0.5 0.021 0.019 0,020 0.036 0.035 0,034 16 Bridge #10 0.5 0.019 0.020 0,019 0.021 0.024 0,024 17 Bridge #101 0.5 0.018 0.019 0,028 0.023 0.030 0,025 18 Bridge #11 0.5 0.021 0.021 0,028 0.029 0.028 0,025 19 Bridge #11.1 0.5 0.022 0.020 0,019 0.021 0.020 0,021 20 Bridge #11.2 0.5 0.022 0.022 0,023 0.033 0.033 0,033 21 Tunnel #1 0.5 0.027 0.019 0,019 0.024 0.033 0,033 22 Tunnel #2 0.5 0.024 0.021 0,019 0.021 0.023 0,024

(ii) Noise Level – only sites with active construction was taken for noise measurements. Noise measurements were carried out in July-December 2016. Measurement data is listed in table 7 below.

32. A Hengsheng HS-5633 noise detection meter was used to collect the decibel readings.

Table 7: Noise Measurements (Average) at Selected Sites in Lot 1 for Jul–Dec 2016 (dB) Location Permeable limit Jul Aug Sep Oct Nov Dec 1 Choloki Campsite 75–80 62.3 62.1 54.1 55.3 51.7 53.1 2 Ochkhamuri Campsite 75–80 63.6 59.5 60.7 62.6 59.6 57.2 3 Laituri Campsite 75–80 68.3 65.6 57.3 61.5 62.0 61.1 4 Bobokvati Campsite 75–80 54.7 52.8 54.3 59.8 58.2 57.8 5 Chakvi Campsite 75–80 66.1 64.9 61.9 63.6 62.7 63.9 6 Bridge #1 75–80 62.0 61.5 60.4 61.8 61.4 60.3 7 Bridge #2 75–80 59.1 56.0 57.7 60.3 55.7 54.0 8 Bridge #3 75–80 58.3 55.6 53.5 53.6 53.6 54.0 9 Bridge #4 75–80 57.8 55.8 49.3 51.8 51.9 52.5 10 Bridge #5 75–80 58.4 57.7 48.6 51.5 53.6 53.5 11 Bridge #6 75–80 62.3 60.6 51.0 54.4 56.0 54.6

Location Permeable limit Jul Aug Sep Oct Nov Dec 12 Bridge #7 75-80 60.8 59.1 51.1 52.4 52.7 53.9 13 Bridge #8 75-80 56.3 58.1 59.5 57.6 57.8 59.6 14 Bridge #81 75-80 56.1 56.6 48.0 53.4 55.6 57.0 15 Bridge #9 75-80 60.1 53.0 58.3 59.1 59.8 62.0 16 Bridge #10 75-80 59.0 58.3 57.7 57.1 59.0 58.6 17 Bridge #101 75-80 64.2 61.8 59.3 61.8 61.4 60.5 18 Bridge #11 75-80 68.8 64.7 62.5 61.8 61.3 62.8 19 Bridge #11.1 75-80 56.7 55.3 53.8 55.3 55.4 54.8 20 Bridge #11.2 75-80 57.2 58.5 60.3 61.8 63.2 63.8 21 Tunnel #1 75-80 67.9 64.7 59.4 63.3 63.4 63.6 22 Tunnel #2 75-80 57.4 57.5 53.6 55.3 54.6 57.3

(iii) Ground Water Quality – Ground water samples were obtained from the three campsites and tested for potable water quality parameters in March and May of 2016. Due to the conversation of the Bobokvati campsite laboratory test of potable water has not been carried out. The Contractor has not submitted laboratory test results of potable water from the Chakvi campsite #5. The Contractor was instructed to submit laboratory test results of potable water from Chakvi campsite.

In the list it is shown laboratory test results of potable water from Choloki Campsite, which was carried out on November 7, 2016. Laboratory test result of Laituri and Ochkhamuri Campsites are taken from first half of 2016 (due to the limited personnel working on the mentioned Campsites, potable water is delivered in bottles and there was no water measurement carried out).

33. The water quality measurements indicate that all parameters were within acceptable limits. The results are summarized in Table 8.

Table 8: Potable/Ground Water Quality Measurements in Campsites (August, November 2016) Acceptable Parameter Limits Standard Choloki Laituri Ochkhamuri Odor 2 units ISO6658 0 0 0 Taste 2 units ISO6658 0 0 0 Color 15° ISO7887 20° 10° 10° Turbidity 3.5 units ISO7027 1.5 0.3 0.5 pH 6.0-9.0 ISO10523 8.28 7.45 8.05 Chloride 250 mg/l ISO9297 23.52mg/l 29.4mg/l 31.36mg/l Ammonia NH3 2.0 mg/l ISO11905.1 1.5mg/l <0.05 <0.05 Nitrite (NO2-) 0.2 mg/l GOST4192 <0.03 <0.003 <0.003 Nitrate (NO3-) 50.0 mg/l GOST18826 1.0 <0.1mg/l 0.001mg/l Total Iron (Fe) 0.3mg/l ISO6332 0.17±0035mg/l <0.04mg/l <0.04mg/l Total Copper (Cu) 2.0 mg/l ISO8288 0.01mg/l <0.002 mg/l <0.001mg/l Arsenic (As) 0.01mg/l GOST4152 0.005 <0.005 <0.005 Lead (Pb) 0.01mg/l ISO8288 0.002 0.003 0.002 Dry residue (TDS) 1000-1500 mg/l GOST18164 160.0mg/l 160.0mg/l 80.0mg/l Permanganate index 3.0 mg/O2/l ISO8467 2.20 mg/O2/l 4.95 mg/O2/l 1.80 mg/O2/l (COD) Calcium mg/l ISO7980 40 22 Magnesium mg/l ISO7980 8.0 7 Sodium mg/l ISO9964.1-93 18.0 6 2- Sulfates(SO4 ) mg/l GOST4389-72 2.0 <2.0 Mesophylic aerobic and 37°- ≤20 CFU ISO6222 37°c- 10 40 20 facultative anaerobic 22°- ≤100 CFU 22°c- 15 80 100 microorganism (in 100ml) Coliform in 300ml ISO9308 No No No 15

Acceptable Parameter Limits Standard Choloki Laituri Ochkhamuri Ecole In 300ml ISO9308 No No No Fecal In 250ml ISO7899-2 No No No Salmonella In 100ml ISO6340 No No No

(iv) Surface Water Quality – Surface water samples were obtained from two locations in five rivers crossing the Lot 2 area and tested for selected surface water quality parameters in November 2016. Water samples have been tested from the Riv. Chakvistskali and Riv. Shuaghele. Due to the bridge works have already been completed the Contractor did not consider it necessary to carry out laboratory testing. The analytical results of the samples collected (see Table 9) indicate that the water quality parameters were within the regulated limits for all five rivers.

Table 9: Surface Water Quality in Lot 2 Rivers (November 2016) Acceptable Riv. Chakvis Parameter Limits Standard Tskali Riv. Shuaghele Odor 1 unit ISO6658 0 (none) 0 (none) Color 25° ISO 7887 30 30 Turbidity 3.5 units ISO 7027 14.0mg/l 8.4mg/l Rigidity mg.eq/l GOST 4151-72 0.78 0.78 pH 6.5-8.5 ISO10523 7.99 7.62 2- Sulfates(SO4 ) mg/l GOST4389-72 9.0 8.0 Chloride Cl- 300mg/l ISO9297 16.66mg/l 14.7 Ammonia and mg/l GOST4192-82 <0.05 <0.05 ammonium iodine Nitrate NO2- 0.08-3.3mg/l GOST 4192 <0.001 <0.001 Nitrate NO3- 40-45mg/l GOST18826 2.0mg/l 2.5 mg/l Dissolved Oxid mg /O2/ l Collection of Shitskova 0.78 0.80 p..50 .P -2 Total copper (Cu) 0.3mg/l ISO 6332 0.07mg/l 0.06 Arsenic (As) 0.05mg/l GOST 4152 0.005 0.02 Magnesium (Mn) 1mg/l GOST4974 0.0035mg/l 0.004 Permanganate 4-6mg/O2/l ISO8467 2.31mg/O2/l 2.55 Index (COD) Dry particles (TDS) 1000mg/l GOS18164 76.0mg/l 72.0 Polyphosphates mg/l GOST18309-72 0.012 0.018

PART III: ENVIRONMENTAL MANAGEMENT

3.1 Environmental Management Plan (EMP) 34. The Environmental Management Plan (EMP) was designed to avoid, reduce, or at least minimize the adverse environmental impacts that could result from the activities during the implementation and operation of the project. As per the Technical Specification 3001.1 ENVIRONMENTAL MANAGEMENT PLANNING, “The Contractor shall provide a detailed site- specific (or section-specific) Environmental Management Plan (EMP) which will be based on: (1) Generic/standard EMP structure and mitigation measures for the road construction; (2) Site/section-specific EMP requirements provided by the Employer in his EIAs. Hence, one major requirement is that the Contractor should produce his own EMP appropriate for the project and to be checked by the Engineer’s environmental specialist.

3.2 Site Inspections and Audits 35. As a matter of protocol, site inspections were conducted on various environmental aspects of the project and form part of the Monthly Progress Report. Regular inspections were undertaken by local environmental specialists. During the inspections, several environmental health and safety issues were observed and noted. These issues were subsequently brought to the attention of the Contractor’s personnel as well as discussed following the “Auditing Protocol”

and EMMP. The main HSE issues observed were generally concerning with the improper storage of material in camp sites, waste management, slope wash out due to abundant precipitation, rehabilitation of operated quarry sites.

36. Table 10 below shows the schedule of conducted audits and monitoring by PIU and SC during the reporting period.

Table 10: The Schedule of Conducted Audits and Monitoring in Kobuleti during the Reporting Period Kobuleti Site visit Organization Date 1 Site audit PIU/RD and DOHWA environmental specialists 04.07.2016 2 Site audit DOHWA environmental specialists 22.07.2016 3 Site audit DOHWA environmental specialists 02.08.2016 4 Site audit DOHWA environmental specialists 15.08.2016 5 Site audit DOHWA environmental specialists 05.09.2016 6 Site audit PIU/RD and DOHWA environmental specialists 26.09.2016 7 Site audit DOHWA environmental specialists 04.10.2016 8 Site audit DOHWA environmental specialists 17.10.2016 9 Site audit DOHWA environmental specialists 28.10.2016 10 Site audit DOHWA environmental specialists 08.11.2016 11 Site audit DOHWA environmental specialists 17.11.2016 12 Site audit DOHWA environmental specialists 06.12.2016

37. During the Environmental Monitoring, a number of HSE issues (non-compliances) were noted and brought to the attention of the Contractor. The Contractor’s HSE Director joined local environmental specialists on-site inspections carried out along the road stretch under construction, camp sites, and quarry sites. An Environmental Action Plan was drafted and mitigation measures were jointly discussed to be implemented within the specified time frames. A summary of the identified issues is presented in the ensuing Table 11.

38. The results of the monitoring carried out in accordance with EMP procedures, which covers the Environmental situation of reports of third and fourth quarters of 2016 is presented in the chapters below:

3.2.2 Results of Monitoring and Audits 39. Sanitary hygienic condition of the campsites Choloki, Ochkhamuri, Laituri, Chakvi is satisfactory, but at the same time some issues/non-compliances were revealed:

Choloki Campsite EHS issues and non-compliances Corrective measures  There is a large number of used tires  Used tires should be delivered to the accumulated at the camp site; haulage service and the place, liberated from the waste should be restored;  Existing channels at the entrance of the  Ditch should be cleaned from the waste Site are full of used tires and construction and construction waste should be waste made up of rubber and steel; delivered for the utilization or on a dump site. Ochkhamuri Campsite EHS issues and non-compliances Corrective measures  There are construction materials and  Construction and household waste household waste accumulated on site; should be delivered to the dump site; Laituri Campsite EHS issues and non-compliances Corrective measures  Sedimentation basin of the Crushing Plant  Basin should be cleaned from the silt and is full of silt and cannot perform its deepened. Silt should be disposed to the 17

function. The water inside the channel is Dump Site; contaminated due to this fact and the  Household waste should be disposed to water passes into Riv. Natanebi; the Dump Site on time.  Large volume of household waste is accumulated. Bobokvati Campsite EHS issues and non-compliances Corrective measures  Useable and useless construction  Useable construction material should be material are scattered on the territory of organized and useless one should be campsite; disposed to the Dumpsite;  Drivers of the concrete mixer, are  Washing of the mixers and pouring of the discharging water used for the washing of contaminated water into the slopes the cars right on the slope at the border of should be prohibited strongly. the camp, which is located near Riv. Contaminated water should be poured Dekhva. into the existing sedimentation basins, which should be cleaned permanently. Chakvi Campsite EHS issues and non-compliances Corrective measures  Basin of the Crushing Plant is full of silt  Sedimentation Basin of the Concrete and cannot perform its function in normal Plant should be cleaned from the silt and way. deepened. Silt should be disposed to the Dump Site.

3.2.3 Monitoring of Road Construction Sites 40. The following non-compliance issues have been revealed duting construction activities of the road:

EHS issues and non-compliances Corrective measures  Some places on the slopes, where there  Those places on the slopes, where, we are identified facts of ravine formation, have identified the facts of ravine are not covered with the top soil and formation, should be covered with the top backfilled with the sand-gravel; soil and backfilled with the sand-gravel.  Logs of the trees cut during the  Logs of the trees, which are scattered construction activities are not disposed along the Design Road, should be into the Dump Site. transported into the Dump Site.

3.2.4 Monitoring of Tunnel Construction Sites 41. The following non-compliance issues have been revealed duting construction activities of the Tunnel:

EHS issues and non-compliances Corrective measures  First portal of Tunnel No.1 is full of  First portal of Tunnel No.1 has to be household waste, especially back sides cleaned from the residential waste. It of the Office and Rest room; should be collected and transported into the Dump Site;

3.2.5 Monitoring of Quarry Sites 42. The following non-compliance issues have been revealed duting monitoring of sand gravel quarry:

EHS issues and non-compliances Corrective measures  The Contractor did not start re-  Contractor has to start Re-Cultivation cultivation works of the Quarry near the works of the Quarry near Vil. Zeda Vil. Zeda Sameba. Sameba according to the Quarry Re- Cultivation Plan, submitted by the  In Vil. Shuagele, Contractor has only Contractor. levelled surface of the Quarry and did  In order to restore Natural Habitats, not restore natural habitats. Contractor has to plant bushes and trees and in case of necessity transport Top- Soil there and seed grass as well.

43. In order to solve revealed environmental problems, action plan of EHS non-compliances has been worked out which will be handed over to the Contractor. See table #12.

3.2.6 Visual Assessment of the Rivers and Waters Stream Environment 44. Following rivers were assessed

pk Name of the River Bridge #2 pk 16+20 Achkva Bridge #4 pk 44+84 Kintrsihi Bridge #5 pk 54+21 Kinkishi Bridge #7 pk 68+60 Dekhva Bridge #8 pk 81+73 Dekhva Bridge #8a pk 108+37 Shuagele Bridge #11 pk 170+44 Chakvistskali

45. Environmental condition, identified during monitoring of the rivers under the Bridges Visual assessment revealed during monitoring of rivers and water flows on Lot-II.

Condition Environmental Issues Dekhva pk Dekhva pk Condition Achkva Kintrsihi Kinkishi 68+60 81+73 Shuaghele Cahkvistskali Coastal Erosion Weak – weak weak Moderate Weak Weak Weak (Northern part) Moderate Coastal Erosion Weak – weak weak Moderate Moderate weak Moderate (Southern part) Moderate Sedimentation/ Weak – Moderate Moderate Moderate Moderate weak Moderate Precipitation Moderate Construction waste Abs Abs Abs Moderate Weak Moderate Moderately high

Household waste (Iron, weak weak weak Moderate Moderate Weak Moderate Plastics etc)

46. Recommendations for the improvement of the Rivers’ condition and environmental protection:

 Removal of the household waste from the above mentioned rivers (under Bridge areas).  Removal of the construction waste from rivers at pk68+60; pk81+73; pk108+37; pk170+44.  The logs of the cut trees are scattered on the right side of Riv. Dekhva- pk68+60. They should be removed.

Table 11: Observed HSE Issues and Recommendations of Environmental Specialists

(A) Main Road Sections

EHS Issues Recommended Mitigation Measures Response Time Progress Waste management issues in campsites Surface and potable water laboratory test are not carried out  The Contractor should conduct laboratory testing of November– Executed surface and potable water December, 2016 Water is used irrationally at Chakvi campsite and first portal of  The Contractor has to ensure timely closing of Permanent control Partially executed Tunnel #1 water taps during filling up water tanks at Chakvi campsite and first portal of Tunnel #1. Used tires and other construction waste are not disposed from  Contractor has to ensure disposal of used tires and October, 2016 Partially executed the territory of construction campsites construction waste from the territories of campsites (scrap is disposed) Revised Waste Management Plan is not submitted as per  Contractor shall prepare and submit new Waste October, 2016 Not executed Georgian law “on Waste Management” (which was entered in Management Plan as per Georgian law “on Waste force since January 15, 2015) Management” Quarry re-cultivation at Vil. Zeda Sameba has not yet  Contractor shall immediately start restoration of October, 2016 Not executed commenced quarry located at Vil. Zeda Sameba All those places of embankment slope where ravine formation  Places where ravine formation has started should October, 2016 Not executed has been identified, have not been filled with sand-gravel be filled with sand gravel and covered with topsoil material and top soil Grass seeding is not carried out at cut and embankment  Seeding of grass and planting trees and bushes at September– Not executed slopes, which is considered in the technical specifications cut and embankment slopes in accordance with the October, 2016 technical specifications Series 3000-3004 Seeding of grass and planting bushes at cut slopes retained by  It is necessary to seed grass and plant bushes at September– Not executed the gabion walls are not carried out cut slopes October, 2016 Logs of cut trees due to the construction activities are scattered  Logs of cut trees shall be disposed to the dumpsite October, 2016 Not executed at roadside and not disposed to the dumpsite. Cut tree near and cut trees transported to the campsite territory bridge #6 is not transported to the Bobokvati construction camp. Concrete mixers are not washed accordingly byusing  Washing of concrete mixers shall be carried out in Regularly Partially executed sedimentation traps and contaminated water is discharged on accordance with the requirements of environmental the ground near Riv. Dekhva, which may use contamination of norms. river water. There is no ventilation system at the first portal of Tunnel #1  Restoration of ventilation system in portal #1 of October, 2016 Partially executed which may cause danger to the health condition of the labor Tunnel #1 Workers are equipped with protective masks There is no biological or other type of restroom/toilet arranged  Arrangement of bio or other type restroom/toilet ASAP Not executed for workers

(B) Choloki Camp Site

EHS Issues Recommended Mitigation Measures Response Time Progress Waste management issues in campsites Large amount of used tires are accumulated at the camp  Used tires disposed/sold to outside material October, 2016 Not executed haulers and recyclers. At the backside of canteen household waste is scattered,  Household waste scattered at the backside of September, 2016 Partially executed garbage containers/bins are congested with household waste canteen and congested garbage shall be transported to dumpsite Steel manufacturing plant is contaminated with steel remains  Steel scrap shall be collected and disposed outside September, 2016 executed and dust to steel haulers

EHS Issues Recommended Mitigation Measures Response Time Progress Waste management issues in campsites Garbage containers/bins are congested with household waste  Garbage bins congested with household shall be Regularly Executed regularly cleaned

(D) Laituri Crushing Plant

EHS Issues Recommended Mitigation Measures Response Time Progress Oxygen tanks are scattered on the ground  Oxygen tanks shall be securely placed as per the September, 2016 Executed requirements of technical specifications Sediment traps of crushing plant are full of silt  Sediment traps of crushing plant shall be cleaned. Regularly Executed Silt should be disposed to the fill. Garbage containers/bins are congested with household waste  Garbage bins congested with household shall be Regularly Executed cleaned and garbage shall be disposed to the dumpsite

(E) Bobokvati Camp Site (Lot 2 area)

EHS Issues Recommended Mitigation Measures Response Time Progress General Sanitary Issues Construction waste is scattered at the territory of camp  Territory of camp shall be cleaned from scattered September, 2016 Executed construction waste Garbage containers/bins are congested with household waste  Garbage bins congested with household shall be Regularly Executed cleaned and garbage shall be disposed to the

EHS Issues Recommended Mitigation Measures Response Time Progress General Sanitary Issues dumpsite While washing out concrete mixer, contaminated water is  During wash out of concrete mixers it should be Regularly Partially executed discharged at the territory of River categorically prohibited to discharge contaminated water without discharging through the sedimentation traps Material Storage Issues Used construction material (steel, wood, wires, etc.) were  Materials should be stored in an orderly manner to October, 2016 Not Executed improperly stored at the site. be reused. Useless materials shall be disposed/sold to outside material haulers and recyclers. Useful materials should be stored properly according to types. Big amount of scrap material is accumulated  Scrap Materials should be disposed/sold to outside October, 2016 Not Executed material haulers and recyclers.

(F) Chakvi Camp Site (Lot 2 area)

EHS Issues Recommended Mitigation Measures Response Time Progress General Sanitary Issues Oxygen tanks are scattered on the ground, some of them are  Oxygen tanks should be placed separately from Regularly Not Executed very close to gas tanks, which is very dangerous gas tanks as per technical specifications Batching plant sediment traps are not regularly cleaned  Sediment traps should be regularly cleaned. Taken September, 2016 Executed material should be disposed in the fill. Regularly During filling up water reservoir water tap is not closed on time,  The Contractor has to ensure timely closing of Regularly Executed which causes irrational use of water water taps during filling up water tanks in order to rationally use water resources. Material Storage Issues Used construction material (steel, wood, wires, etc.) were  Materials should be stored in an orderly manner to September – Partially Executed improperly stored at the site. be reused. Useless materials shall be October, 2016 disposed/sold to outside material haulers and recyclers. Useful materials should be stored properly according to types. Big amount of scrap material is accumulated  Scrap Materials should be disposed/sold to outside September – Not Executed material haulers and recyclers. October, 2016

3.2.7 Actions Taken to Reflect the Findings of ADB Mission during the Reporting Period 47. During the Environmental Monitoring and Inspection Audit carried out in July-September, 2016 and September, 26 accordingly, which was attended by the head of Environmental Division of the Roads Department of Georgia Mr. G. Sopadze and International and Regional

Specialists of the ADB Mr. Jeffrey Bowyer and Mrs. K. Dgebuadze respectively, some environmental, health and safety (EHS) issues/non- compliances were observed and appropriate plan for resolution of non-compliances was made which was subsequently shared with the Contractor for execution. The plan is shown in the list #11 below.

Table 12: Action Plan and Mitigation Measures for the Upcoming Period

(A) Road Section km12.4-km31+250, Lot-II Deadline for the Discrepancies of the Health and Safety Issue Recommended Corrective measures implementation Progress Potable water is used irrationally at the first portal of  Ensure closing of tap of potable water while filling with December, 2016 Tunnel #1 water at the first portal of Tunnel #1 Revised Waste Management Plan is not submitted as  Preparation and submission of new Waste Management December, 2016 per Georgian law “on Waste Management” (which was Plan as per Georgian law “on Waste Management” entered in force since January 15, 2015) Quarry re-cultivation at Vil. Zeda Sameba has not yet  Immediately start restoration of quarry located at Vil. Zeda December, 2016– commenced Sameba January, 2017 Some places on the slopes, where it was identified the  Those places on the slopes, where facts of initial ravine December, 2016– facts of ravine formation are not covered with the top formation were identified should be covered with the top January, 2017 soil and backfilled with the sand-gravel. soil and backfilled with the sand-gravel. Logs of the trees cut during the construction activities  Cut trees should be disposed into the Camp Site territories. January, 2017 are not disposed into the Dump Site as well. Cut trees As for the logs of the trees, scattered along the Design are not transported to Chakvi Campsite road, should be transported to the Dump Site. Concrete mixer trucks are not washed out according  Wash out process of concrete mixer trucks shall be carried January, 2017 to the established norms out according to the common ecological requirements Regularly Biological or other type of restroom/toilet is not  Arrangement of biological or other type of restroom/toilet at January, 2017 arranged at the second portal of Tunnel #1 the second portal

(B) Choloki Camp Site Deadline for the Discrepancies of the Health and Safety Issue Recommended Corrective measures implementation Progress There is large number of used tires accumulated on  Used tires and Scrap Metal should be delivered/sold to January, 2017 the camp site. outside material haulers and recyclers.

(C) Ochkhamuri Camp-Site Deadline for the Discrepancies of the Health and Safety Issue Recommended Corrective measures Progress implementation Garbage bins are congested with household waste  Containers/bins shall be cleaned on the regular basis Regularly

(D) Bobokvati Camp-Site Deadline for the Discrepancies of the Health and Safety Issue Recommended Corrective measures Progress implementation Construction waste is scattered at the territory of the  Territory of campsite shall be cleaned from the construction January, 2017 camp waste Regularly Garbage bins are congested with household waste  Containers/bins shall be cleaned on the regular basis January, 2017 Regularly During wash out of concrete mixer trucks,  During wash out of concrete mixers it should be contaminated water is discharged at the adjacent categorically prohibited to discharge contaminated water Regularly territory without discharging through the sedimentation traps

(E) Chakvi Camp Site Deadline for the Discrepancies of the Health and Safety Issue Recommended Corrective measures Progress implementation Usable construction materials are not stored as they  Useful construction materials shall not be scattered on the January, 2017 are scattered on the groung ground, those shall be collected and sorted and stored Basin of the Crushing Plant is full of silt and cannot  Sedimentation Basin of the Concrete Plant should be ASAP perform its function in normal mode cleaned from the silt and deepened. Silt should be Regularly disposed to the Dump Site. During filling up water reservoir water tap is not closed  The Contractor has to ensure timely closing of water taps on time, which causes irrational use of water during filling up water tanks in order to rationally use water January, 2017 resources.

(F) Territory of Laituri Crushing Plant Deadline for the Discrepancies of the Health and Safety Issue Recommended Corrective measures Progress implementation Basin of the Crushing Plant is full of silt and cannot  Basin should be cleaned from the silt and deepened. Silt January, 2017 perform its function. should be disposed to the Dump Site. Regularly Large volume of household waste is accumulated.  Household waste should be disposed to the Dump Site on January, 2017 time. Regularly

3.2.8 Evaluation of HSE Documentation and Record Keeping 48. Contractor has improved production of the Environmental, Health and Safety aspects which are reflected below as well as the pending issues which are yet to be solved.

Positive Intervention Main Environmental, Health and Safety Issues  Scrap material has been disposed for  Restoration of quarry was not yet initiated at the further utilization from each camp site; territory of Vil. Zeda Sameba  Embankment slopes were intensively protected from the wash out;  Waste Management Plan is not prepared for  Test results of parametric measurements further submission to the Ministry of such as air quality and noise level were Environment delivered to the Engineer on time;  Trainings about Environment and Safety  Cut trees at the territory of the road CL403 are issues were regularly conducted for the not stored in Chakvi construction camp site Contractor’s labor;  Each construction camps are equipped with  Laboratory analysis of potable and surface precautionary signs; water are not conducted every quarterly basis.

3.2.9 Evaluation of General Occupational Health and Safety Practices 49. In July-December 2016, no vital accident was identified.

Positive intervention Main Environmental, Health and Safety Issues Warning signs posted at relevant locations (e.g., Gaps between guardrails allow cattle to cross into campsites, road construction sites). road which is creates threat for motor accidents. On-site clinic with first aid medications and a When working in high conditions from the ground, doctor (in Chakvi Campsite). First aid workers do not wear fall protection lanyards (PPE). medications also available at Bobokvati. Restroom sanitary condition was improved - Safety concerns related to electrical safety (e.g., liquid soap box was installed. poor wiring, exposed electrical systems, improper grounding etc.). PPE given to workers to be used during work. No on-site clinic established at Bobokvati Campsite Significant improvement in works wearing PPE yet. especially in camp work sites. Safety meetings held on a regular basis where Some workers ignore PPE during work. safety issues are discussed (every 6 months). Recordkeeping improved. Training on PPE use held for workers.

3.2.10 Impact on Biodiversity 50. In July-December 2016, no negative impact on flora and fauna has been identified. No cases of poaching have been fixed.

51. During construction process, several trees have been cut. Part of the cut trees were stockpiled on the territory of Bobokvati campsite temporarily but part of them are yet to be transported to Chakvi campsite.

3.3 Non-Compliance Notices Correspondence about the Improvement of Non-compliances Issues

52. In the second half of 2016, Contractor has received following letters regarding the problematic environmental issues identified during the Environmental Monitoring. See Table No.12.

Table No.13: Correspondence about the Improvement of Non-compliances Issues Letter # Date Subject Summary The Contractor was informed that new law “on waste been initiated, which required Regarding Waste management” had 0252 29.07.2016 inventarization of waste, preparation of waste management Management Plan plan and agreement of the mentioned plan with the Ministry of Environment and Protection of Natural Resources Sadimentation trap of Tunnel is not cleaned. Household waste is not placed in the container bins, at the backside of the Regarding Ecological 0298 01.09.2016 building there are empty tanks scattered, which should be condition of Tunnel #1 disposed and utilised. Contractor was instructed to solve these issues. Response to the Contractor was given permission to cut trees within the RoW 0299 01.09.2016 Contractor’s letter #141 according to the Specifications. (regarding cutting trees) Contractor was instructed to start seeding of grass and planting bushes as the most suitable period for the mentioned Regarding seeding grass 0340 30.09.2016 action is September-October. Contractor was instructed to and planting bushes carry out seeding and plantins in accordance with the Specifications Series 3000. Contractor was notified about the environmental issues which Regarding Environmental 0341 30.09.2016 were revealed during environmental monitoring in August, issues 2016 and was requested to immediately resolve the issues. Regarding EMP during Contractor was instructed to submit Bi-annual Environmental 0380 14.11.2016 construction Report before December 20, 2016 Contractor was supposed to complete recultivation of quarry in Vil. Khutsubani as per his submitted plan, which has not yet 0381 16.11.2016 Employer’s claim according to GCC 2.5 been done. He was instructed to start restoration works as soon as possible. Contractor was instructed to take stock of waste, prepare Regarding Waste 0385 10.12.16 waste management plan and agree it with the Ministry of Management Plan Environment. Remark: Mainly, communication with the Environmental Specialists of the Contractor was done during joint audits and Weekly Meetings.

3.4 Corrective Action Plan 53. The Contractor failed to fulfill corrective measures of environmental health and safety issues on the timely manner which is reflected in the Table No.13.

Table 14: Corrective Action Plan Status of Implementation the Impacted objects Problems Mitigation Measures date activities Mentioned Quarries should There is no Quarry re- be re-cultivated ASAP January Not Quarry Sites cultivation done in Vil. Zeda – according to the submitted February 2017 executed Sameba territory re-cultivation plan Grass should be seeded and plants planted on the At many places of cut slopes. Places with construction road, Slopes of Cuts and ravine formation should be March April Not embankment slope are – Embankments filled with the sand gravel 2017 executed gullied. Cut slopes are not material, compacted, planted with grass covered with the top soil and seeded with the grass. Timber logs should be There are logs of cut trees transported into the dump Not Road Sections scattered along the January 2017 site or handed over to the executed construction road labor as firewood. There are used tires Remains of used tires accumulated in Choloki; should be collected and There are construction disposed for reuse and waste and accumulated in January Not Camp Sites other remains should be – each construction camp site; February 2017 executed disposed to the dumpsite; Sedimentation traps are full Sedimentation traps shall of sediment which cannot be cleaned in regular basis. function appropriately Sedimentation Channels near Sedimentation Channel is Sedimentation Basin shall January 2017, Not Concrete Batching full of silt and cannot be cleaned on the regular afterwards executed plants, Tunnel No.1 function accordingly. basis. regularly and in Laituri Basins should be cleaned and Disinfected on the Ground and Drinking water basins, are regular basis. Lab tests of January March, Not surface water not cleaned on the regular – the surface and potable 2017 executed condition basis. water should be carried out on time In some cases, household It is necessary to remove January 2017, Construction and Not waste from construction waste from the Camp-Site afterwards household waste executed camps are removed lately. territories regularly. regularly It is necessary to take stock of waste, prepare waste management plan and Waste Management Waste Management Plan Not agree it with the Ministry of December 2016 Plan has not been prepared executed Environment and Protection of Natural Resources of Georgia

54. Above mentioned issues are reflected on the Pictures (See Appendix No.1).

55. Recommendations for the Environmental, Health and Safety issues which failed to be executed are reflected in the non-compliances and compliances corrective action plan – Table No.12.

56. For the pending issues further recommendations are as follows:

Table 15: Recommendations to Address HSE Issues Recommendations Responsible Party Main Road (Lot 2) Sections of the Project road where wash out processes have started Contractor to perform physical should be filled with sand and gravel and covered with topsoil; For interventions; stabilizatiton of cut and embankment it is necessary to seed grass on Engineer to monitor progress. slopes of embankment and plant bushes on slopes of cut; Trees cut for construction of Project road should be transported and Contractor to perform physical stored at Bobokvati and Chakvi Campsites on temporary basis; As for interventions; tree logs that are dumped at almost every section of Project road should Engineer to monitor progress. be transported to the dumpsite; Gutter for avoiding water from the carrieageway should be constructed at Contractor to perform physical particular sections in order to prevent erosion; interventions; Engineer to monitor progress. Sections of road where big amount of dust is accumulated due to Contractor to perform physical movement of the Contractor’s heavy equipment should be regularly and interventions; intensively watered. Engineer to monitor progress. Camp Sites (Choloki, Ochkhamuri, Laituri, Bobokvati and Chakvi) Used material (scrap metal, tires etc.) should be hauled offsite for Contractor; recycle/beneficial reuse on a regular basis. The territory freed from the Engineer to perform weekly inspections used material should be organized accordingly; Waste management according to the requirements of ECP #1 of Contractor; Environmental Management Plan. Burning of waste material at the Engineer to perform weekly inspections campsites must be stopped according to requirements of Environmental Management Plan. Waste material dumped in the channels must be taken out and Contractor; transported for utilization or to the dumpsite; Engineer to perform weekly inspections Used material (scrap metal, tires etc.) should be hauled offsite for Contractor; recycle/beneficial reuse on a regular basis. Records of material hauled Engineer to perform weekly inspections offsite for recycling and/or beneficial reuse should be maintained; At Bobokvati campsite spillage of water from the mixers (during washing Contractor; the mixers) on the slope must be stopped. Polluted water must be spilled Engineer to perform weekly inspections in existing sediment trap. Sediment trap must be cleaned regularly; Sediment traps for concrete plant at Chakvi Campsite and crushing Plant Contractor; in Laituri must be cleaned. Sediment must be taken in the fill. Engineer to perform weekly inspections Quarry Sites Re-cultivation of the quarrysite at the territory of vil. Zeda Sameba must Contractor; commence in accordance with quarry restoration plan submitted by the Engineer to perform inspections before Contractor; and after restoration and check the compliance with restoration plan With the purpose of restoration natural habitates at the former territory of Contractor; quarrysite in vil. Shuaghele trees and bushes must be planted. If Engineer to perform inspections before necessary the Contractor must spread topsoil, seed grass and etc. restoration Bridge construction at the rivers At bridge #9 construction site waste bins and containers must be Contractor; supplied for collection construction waste and trash. Engineer to perform weekly inspections Tunnels Construction waste and trash accumulated at the territory of the first Contractor; portal of tunnel #1 must be collected and transported to the landfill. Engineer to perform weekly inspections At the second portal of Tunnel #1 temporary rest rooms and biological or Contractor; other type of toilet shall be arranged for workers. Engineer to perform weekly inspections HSE Documentation and Recordkeeping The following documentation/records should be initiated and maintained Contractor; on site: Engineer to perform monthly inspections - Log of used material (tires, scrap metal etc.) hauled offsite for reuse/recycling. - Vehicle maintenance and accident records (already initiated but must be maintained).

3.10 Consultations and Complaints 3.10.1 HSE Issues Reported through the Grievance Redress Mechanism (GRM) Process 57. No complaint has been received by the GRM during the second half of 2016.

3.10.2 Health and Safety Issues, raised by the Local Government Institutions 58. Based on the information provided by the Supervision Service of Department of the Environmental Protection of Ajara, there has not been identified any violation of Administrative Code of Georgia in the second half of 2016.

3.10.3 Trainings 59. In the second half of 2016 the following trainings have taken place:

 In the monthly report of the Contractor chapter “Health, Safety & Environment” it is mentioned that trainings are regularly conducted concerning the mentioned issues.  Training on the topic “environmental aspects during construction and rehabilitation of highwyas” was conducted for the road specialists of the supervision team in July.  Training materials on the following topics were prepared by the Environmental Specialist: “reaction during incidents vulnerable to health” and “reaction during traffic accident”. The mentioned material was handed over to the Georgian Environmental and Safety Specialist Mr. L Jincharadze in order to conduct training.

PART IV – Action Plan for the Next Period

 Preparation of Company Waste Management Plan for Lot 2 (according to new GEO legislation) to be submitted to MoENRP (Ministry of Environment and Natural Resources Protection of Georgia) for approval – December, 2016.  In terms of the defined action plan for the mitigation measures to be undertaken during the next period please see table 11.

ANNEXES

I. PROJECT PHOTOS

Bi-annual Environmental Monitoring Report (July-December 2016) DOHWA Engineering Co., Ltd. Korea