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World Bank Document DATE OF RECEIPT: ADAPTATION FUND PROJECT ID: (For Adaptation Fund Board AFB/PPRC.22-23/5 Secretariat Use Only) Public Disclosure Authorized PROJECT/PROGRAMME PROPOSAL TO THE ADAPTATION FUND PART I: PROJECT INFORMATION Project/Programme Category: Regular project Country: Armenia Title of Project/Programme: “Artik city closed stone pit waste and flood management Public Disclosure Authorized pilot project” Type of Implementing Entity: NIE Implementing Entity: “Environmental project implementation unit” SA Executing Entity: Ministry of Nature Protection of RA Amount of Financing Requested: 1,435,100 (in U.S Dollars Equivalent) Public Disclosure Authorized Public Disclosure Authorized 1 Table of Contents PART I: PROJECT INFORMATION 1 PROJECT BACKGROUND AND CONTEXT 5 PROJECT OBJECTIVES 14 PROJECT COMPONENTS AND FINANCING: 15 PROJECTED CALENDAR 22 PART II: PROJECT JUSTIFICATION 23 A. PROJECT COMPONENTS 23 B. PROJECT ECONOMIC, SOCIAL AND ENVIRONMENTAL BENEFITS 59 C. ANALYSIS AND COST-EFFECTIVENESS OF THE PROJECT 68 D. CONSISTENCY WITH NATIONAL/SUB-NATIONAL STRATEGIES, PROGRAMS & OTHER RELEVANT INSTRUMENTS 78 E. COMPLIANCE WITH RELEVANT NATIONAL TECHNICAL STANDARDS AND ESP OF THE AF 81 F. DUPLICATION OF PROJECT WITH OTHER FUNDING SOURCES 87 G. LEARNING AND KNOWLEDGE MANAGEMENT 88 H. CONSULTATIVE PROCESS UNDERTAKEN DURING PROJECT PREPARATION 89 I. JUSTIFICATION FOR REQUESTED FUNDING / FULL COST OF ADAPTATION REASONING 94 J. SUSTAINABILITY OF PROJECT OUTCOMES 95 K. OVERVIEW OF ENVIRONMENTAL AND SOCIAL IMPACTS AND RISKS RELEVANT TO PROJECT 99 PART III: IMPLEMENTATION ARRANGEMENTS 102 A. ARRANGEMENTS FOR PROJECT IMPLEMENTATION. 102 B. MEASURES FOR FINANCIAL AND PROJECT RISK MANAGEMENT. 104 C. MEASURES FOR ENVIRONMENTAL AND SOCIAL RISK MANAGEMENT 105 D. MONITORING AND EVALUATION ARRANGEMENTS 111 E. RESULTS FRAMEWORK FOR THE PROJECT 112 F. PROJECT ALIGNMENT WITH RESULTS FRAMEWORK OF THE AF 117 G. DETAILED BUDGET WITH BUDGET NOTES 121 H. DISBURSEMENT SCHEDULE 127 PART IV: ENDORSEMENT BY GOVERNMENT & CERTIFICATION BY IE 128 A. RECORD OF ENDORSEMENT ON BEHALF OF THE GOVERNMENT 128 B. IMPLEMENTING ENTITY CERTIFICATION 128 ANNEXES ANNEX 1: Questionnaire ANNEX 2: List of Participants ANNEX 3: Maps ANNEX 4: Extract from the Decree of Artik City Community Council 2 List of Tables TABLE 1: ANNUAL MEAN TEMPERATURE AND PRECIPITATION CHANGES FROM 1929-2012 RELATIVE TO THE 1961-1990 AVERAGE CHANGES ........................................................................................................................................................................................... 6 TABLE 2: PROJECTED CHANGES IN ANNUAL AND SEASONAL AVERAGE TEMPERATURES IN ARMENIA COMPARED TO THE AVERAGE FOR 1961-1990 0C ............................................................................................................................................... 11 TABLE 3: CHANGES IN ANNUAL AND SEASONAL PRECIPITATION IN ARMENIA COMPARED TO THE AVERAGE OF 1961-1990 MM ............. 12 TABLE 4: RESULTS OF THE STUDY OF LAND QUALITY INDICATORS IN THE COMMUNITIES INCLUDED IN THE PROGRAM ............................... 37 TABLE 5: LANDS SUBJECT TO IMPROVEMENT BY COMMUNITIES ................................................................................................................. 37 TABLE 6: THE QUANTITY OF MINERAL, ORGANIC FERTILIZERS AND SEEDS PER YEAR ................................................................................... 39 TABLE 7: CLASSIFICATION OF MUDFLOW STREAMS IN THE TERRITORY OF ARTIK CITY ACCORDING TO MASS COMPOSITION ...................... 45 TABLE 8: SOCIAL COMPOSITION OF SURVEY PARTICIPANTS ........................................................................................................................ 57 TABLE 9: PARTICIPANTS’ RESPONSES TO QUESTIONS INCLUDED IN THE QUESTIONNAIRE ........................................................................... 57 TABLE 10: PREFERRED TOPICS PER COMMUNITIES ..................................................................................................................................... 58 TABLE 11: COMPARATIVE ANALYSES OF ENVIRONMENTAL AND COST-EFFECTIVENESS OF IMPLEMENTING MEASURES ............................... 71 TABLE 12: CODES AND TITLES OF THE FIELDS OF ACTIVITY IN STANDARDIZATION ACCORDING TO THE CLASSIFIER OF STANDARDS OF RA.86 TABLE 13: RISK CATEGORIZATION AND INITIAL BASELINE ASSESSMENT OF THE PROJECT ......................................................................... ..99 TABLE 14: FINANCIAL AND INSTITUTIONAL RISKS AND MITIGATION MEASURES ...................................................................................... 104 TABLE 15: ENVIRONMENTAL AND SOCIAL RISK ASSESSMENT AND MANAGEMENT .................................................................................. 105 TABLE 16: TIME FRAME FOR THE GRIEVANCE REDRESS MECHANISM ....................................................................................................... 110 List of Figures FIGURE 1: DEVIATIONS OF AVERAGE ANNUAL AIR TEMPERATURE IN ARMENIA FROM THE AVERAGE VALUES FOR 1961-1990 ............... 6 FIGURE 2: DEVIATION OF SUMMER (A) AND WINTER (B) TEMPERATURES IN ARMENIA IN 1935-2012 FROM THE AVERAGE VALUES FOR 1961-1990 ..................................................................................................................................................... 7 FIGURE 3: DEVIATION OF ANNUAL AVERAGE PRECIPITATION IN ARMENIA FROM THE AVERAGE OF 1961-1990 ................................. 8 FIGURE 4: NUMBER OF EXTREME HYDROMETEREOLOGICAL EVENTS (FROST, HAIL, HEAVY RAINFALL AND STRONG WINDS) OBSERVED IN ARMENIA IN 1980-2012 .................................................................................................................................... 9 FIGURE 5: DISTRIBUTION OF ANNUAL AVERAGE TEMPERATURE IN ARMENIA IN (A) 1961-1990 AND (B) PROJECTIONS FOR 2071-2100, RCP 8.5 SCENARIO ......................................................................................................................................................................... 12 FIGURE 6: DISTRIBUTION OF ANNUAL AVERAGE PRECIPITATION (MM) IN ARMENIA IN (A) 1961-1990 AND (B) PROJECTIONS FOR2071- 2100, RCP 8.5 SCENARIO .............................................................................................................................................................. 13 FIGURE 7: WIND ROSE FOR ARTIK CITY ...................................................................................................................................................... 45 3 Acronyms AF Adaptation Fund ESP Environment and Social Policy RA Republic of Armenia FNC First National Communication SNC Second National Communication WMO World Meteorological Organization UNFCCC United Nations Framework Convention on Climate Change MENR Ministry of Energy Infrastructures and Natural Resources EPIU Environmental Project Implementation Unit NGO Nongovernmental organization GEF Global Environment Facility STAR System of Transparent Allocation of Resources EIA Environmental Impact Assessment EPIU Environmental project implementation unit KfW German Development Bank PMB Project Management Board IE Implementation Entity NIE National Implementing Entity AFB Adaptation Fund Board M&E Monitoring and Evaluation AOP Annual Operating Plan QSR Quarterly Status Reports AMR Annual Management Reports OPM Operations and Procedures Manual GAP Gender Action Plan PMU Project Management Unit KM Knowledge Management 4 Project Background and Context Shirak province (marz) administrative district where the project is envisaged to be implemented is located in the north-west of the Republic of Armenia bordering Turkey in the west and Georgia in the north. “Arpi lake” national park is located in this marz. The climate of the marz is mountainous with cool summers and severe and long winters. Annual precipitation is 500-600 mm. The absolute minimum temperature in Armenia was recorded in this area which was -46˚C. Shirak marz in known for its reserves of tufa, pumice, and limestone mines, especially Artik region which is located in the southern part of the marz. The region is located on the volcanic plateau and foothills and is known for its favorable conditions for grain crop and livestock development. For years exploited stone pits have had negative impact on the environment. Previously, more than 60% of the total volume of construction stone products of the country was produced in Artik and its adjacent communities. Many mines were closed due to reduction of construction stone consumption volumes; however, no conservation and reclamation works of these closed mines have been carried out thus causing many environmental problems. Hundreds of hectares of agricultural and natural landscapes were degraded and lost its natural way of restoration due to the exploitation of mines. Dust through strong winds and solid remnants through snowmelt and rainfall spread over great distances polluting natural agro landscapes. As a result, there is a decrease in the yield of agricultural crops, crop quality, and adaptation level of natural landscapes to climate change. Another problem is increasing the frequency of severe floods in the last 20 years, which is due to the spring temperatures that are not typical for the region. If until 1980s the air temperature reached 20-250C within one and a half months, now it is rising quickly and unevenly. As a result, this accelerates snowmelt causing the emergence of strong floods. The negative impact of such climate change is also lies
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