Non Technical Summary

Dnepropetrovsk City Council, Executive Committee European Bank of Reconstruction and Development (EBRD)

Completion of metro construction in Dnipropetrovsk city

NON-TECHNICAL SUMMARY PART 1

June 2012

CONFIDENTIAL

COMPLETION OF METRO CONSTRUCTION IN DNIPROPETROVSK CITY NON-TECHNICAL SUMMARY PART 1

CONTENTS:

PART 1. NON-TECHNICAL SUMMARY PART 2. ENVIRONMENTAL AND SOCIAL IMPACT ASSESSMENT (ESIA) PART 3. ENVIRONMENTAL & SOCIAL ACTION PLAN PART 4. STAKEHOLDER ENGAGEMENT PLAN

CONTENTS OF PART 1

1. INTRODUCTION ...... 5 1.1 PRECONDITIONS ...... 5 1.2 PROJECT DESCRIPTION...... 6 1.3 DESCRIPTION OF OBJECT LOCATION ...... 7 1.4 PROJECT PHASES ...... 8 1.5 CONSTRUCTION PLAN ...... 9 1.6 CONTRACTOR AND CONTROL OF CONSTRUCTION PHASES...... 10 2. METROPOLITAN OPERATIONAL PROCEDURES...... 10 2.1 GENERAL INFORMATION ...... 10 2.2 WATER AND POWER SUPPLY ...... 11 2.3 ANALYSIS OF THE OPERATION TECHNOLOGY OF THE SUBWAY ...... 12 2.4 METROPOLITAN DECOMMISSIONING ...... 12 3. ENVIRONMENTAL PREREQUISITES...... 13 3.1 GEOLOGY, SEISMOLOGY AND HYDROGEOLOGY ...... 13 3.2 SURFACE WATER...... 15 3.3 CLIMATE AND AIR ENVIRONMENT ...... 16 3.4 NOISE AND VIBRATION ...... 16 3.5 PROTECTED AREAS ...... 17 3.6 CULTURE, HISTORY, ARCHEOLOGY ...... 17 3.7 TRANSPORTATION...... 18 3.8 SOCIAL AND ECONOMIC ENVIRONMENT ...... 19 3.9 LAND OWNERSHIP...... 20 3.10. EMPLOYMENT OF POPULATION ...... 20 3.11 WORK SAFETY AND HEALTHCARE AT THE EXISTING METROPOLITAN...... 20 4. ENVIRONMENTAL AND SOCIAL IMPACT...... 20 4.1 AREAS AND STAGES OF IMPACT ...... 20 4.2 CONSTRUCTION PHASE...... 21 4.3 OPERATION PHASE ...... 27 4.4 ENVIRONMENTAL AND SOCIAL IMPACT ASSESSMENT DURING THE PHASE OF DECOMMISSIONING ...... 30 5. SUMMARY TABLES OF ENVIRONMENTAL AND SOCIAL IMPACT OF THE PROJECT METRO STATIONS ...... 31

This document is issued by the Company under its General Conditions of Service accessible at http://www.sgs.com/terms_and_conditions.htm . Attention is drawn to the limitation of liability, indemnification and jurisdiction issues defined therein.

Any other holder of this document is advised that information contained hereon reflects the Company’s findings at the time of its intervention only and within the limits of Client’s instructions, if any. The Company’s sole responsibility is to its Client and this document does not exonerate parties to a transaction from exercising all their rights and obligations under the transaction documents. Any unauthorized alteration, forgery or falsification of the content or appearance of this document is unlawful and offenders may be prosecuted to the fullest extent of the law.

COMPLETION OF METRO CONSTRUCTION IN DNIPROPETROVSK CITY NON-TECHNICAL SUMMARY PART 1

ANNEXES: # Name 1. Equatorial principles 2. Sheet of background concentration and the climatic characteristic of Dnepropetrovsk 3. Background values of noise level 4. The general plan of a building site of a shaft №14 5. The situation scheme II of starting section of I stage of underground in Dnepropetrovsk 6. Results of dispersion calculation of polluting substances in atmospheric air at building without background values 7. The general layout of 1 stage of the underground 8. Underground slit 9. The general layout of the projected metro stations 10. The general layout of the projected underground 11. The population and places of employment

COMPLETION OF METRO CONSTRUCTION IN DNIPROPETROVSK CITY NON-TECHNICAL SUMMARY PART 1

PROJECT OFFICERS Company Person Position STATE ENTERPRISE Kalinin V. V. Director “DNIPROPETROVSK Shyienko V. V. Chief project engineer PLANNING AND RESEARCH INSTITUTE OF Shram O. A. Project officer RAILWAY TRANSPORT OF UKRAINE”

LIST OF ARCONIMS

PR Performance requirements PLL Permissible level limit SCS State construction standards SE «DBDMC» State enterprise “Dnipropetrovsk board of directors on metropolitan construction” SE “DM” State enterprise “Dnipropetrovsk metropolitan” EBRD European Bank for Reconstruction and Development PUC Public utility company IFC International Finance Corporation RSSU Radiation safety standards of Ukraine EIA Environmental impact assessment ESIA Environmental and social impact assessment SEP Stakeholder engagement plan NSEPAP Natural and social environment protection action plan SR Sanitary regulations

COMPLETION OF METRO CONSTRUCTION IN DNIPROPETROVSK CITY NON-TECHNICAL SUMMARY PART 1

1. INTRODUCTION

1.1 PRECONDITIONS Currently Dnipropetrovsk City Council of People's Deputies (the Company) considers the possibility of investment by the European Bank for Reconstruction and Development (EBRD) for the completion of II launch site of I phase construction of metropolitan line in Dnipropetrovsk. The working project of I phase of Dnipropetrovsk metropolitan railroad was implemented by Kharkiv branch of "Kharkivmetroproekt" of the State PRI "Metrodniprotrans" in 1981. At the moment I launch site is finished - six metro stations are built and on-stream. Since at the time of project development no legislative requirements to environmental terms existed in Ukraine, the existing stations were not subject to environment-oriented measures. The II launch site of I phase consists of three metro stations: "Chkalov Park" ("Teatralna"), "Lenin Square" ("Tsentralna"), "Zhovtneva Square" ("Historical Museum") of total length of 4,017 km. All three stations are located on K. Marx Avenue. The purpose of the non-technical summary report is to provide everyone who might be interested in the Project the information about the benefits of the project as well as the potential consequences and their management. Both the Bank and the Company pursue to demonstrate that the project was executed in accordance with superior international standards rather than just within the limits of basic legal requirements. The Non-technical summary report given and "Environmental, Social Measures and Moni- toring Action Plan (ESMMAP)", "Stakeholder Engagement Plan (SEP)", "Environmental and social impact assessment (ESIA)" attached are published by the Bank and the Company under the formal process of information disclosure and public discussion. The stakeholders and or- ganizations interested may provide their comments and remarks. This Final report is not limited to requirements of Environmental Impact Assessment (EIA) but is supplemented by "Stakeholder Engagement Plan (SEP)". SEP describes how any person interested in the project may notify the Company of their opinion. The metro stations were planned as deep-level in tough and very tough solid rock. Thus, the laying of tillage for tilting tunnels, hauls, stations, vertical shafts is implemented through drill- hole blasting.

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1.2 PROJECT DESCRIPTION Suggested construction In the future the suggested for construction metropolitan line with three stations in Dni- propetrovsk City should solve the problem of increase in passenger flow, of fast and reliable transport connection between industrial and remote residential areas and downtown. This will significantly reduce the number of automobile transport in the city center and, consequently, im- prove the ecological situation. The estimated volume of passenger flow at the project facility is provided for 106 million passengers a year. The normative period of construction of II launch site is 4 years. Metro project must meet current requirements and includes all measures to achieve ener- getic and technologic efficiency that will ensure sustainable use of resources and waste, control of unfavorable environmental factors. During construction, the facility will be equipped with temporary construction sites with accommodation space.

Existing metropolitan The existing metropolitan includes six stations: "Komunarivska", "Svobody Avenue", "Zavodska", "Metalurhiv", "Metrobudivnykiv", "Vokzalna" with total length of 7.08 km. In addition, train sheds were commissioned where electric trains (45 cars) are repaired, serviced and stored and engineering building of the metro with office and accommodation space.

The need for development and alternatives reviewed Passenger traffic in the city is mainly by tramway, buses and trolleybuses. Uneven distribution of functional areas under the condition of separation of the city by water areas of Dnieper River and Samara River leads to high concentration of vehicles and passengers, high-density of routes in the city center, the excess capacity, increase the time of movement between city districts. The capacity of the central thoroughfare of the city - Karl Marx Avenue - is almost exhausted for future prospective. The analysis of existing urban development and operation of city passenger transport in- dicate that in the short term prospective transport service of the public with surface vehicles will

COMPLETION OF METRO CONSTRUCTION IN DNIPROPETROVSK CITY NON-TECHNICAL SUMMARY PART 1

not be able to adequately facilitate the increased passenger flow and confirms the need for development of underground transport. Alternative options of this task can be considered in terms of the following aspects: - the possibility to use other types of transport; - metro lines location; - technology of construction works. Construction of the metropolitan along K. Marx Avenue in Dnipropetrovsk City will im- prove the environmental indices in this district owing to: • reducing the amount of harmful emissions into the air and noise and vibration impact caused by land transport (trams, cars, trolleybuses); • reducing the concentration of oil products in rainwater drains; • releasing of a considerable part of the area from car parking areas with a perspective of their further regulation.

1.3 Description of object location All three metro stations are located in the downtown on Karl Marx Ave. from the square named after Petrovskyi to Gagarin Ave. The subway passes through Kirovskyi, Babushkinskyi and Zhovtnevyi administrative districts of the city. Metro station "Teatralna" is located near the park n. a. L. Globa; metro station "Tsen- tralna" is located in the area of Lenin Square; metro station "Historical Museum" is located near the Historical Museum n. a. Yavornytskyi and Zhovtneva Square. All temporary construction sites are located on Karl Marx Ave. and on the adjustment lo- cality in construction-free zones of the total area of 6.2 hectares.

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Figure 1-1 – Existing and project metropolitan stations in Dnipropetrovsk

According to the Ukrainian legislation metropolitan does not have a sanitary protection zone, and the zone of its influence ranges 50 to 500 m.

1.4 Project phases The proposed time schedule for this project is presented in Table 1-1:

Table 1-1 – Project fundamentals Phase Date 1 2 The decision of the Cabinet of Ministers of March 2011 Ukraine concerning the continued construction of underground in the City of Dnipropetrovsk Submission of ESIA to obtain construction January 2012 permit Obtaining permission for construction of metro Obtained the Resolution of the Council of Min- isters of the USSR No. 456 as of 15.03.1982

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Phase Date 1 2 Initiation of preparation of construction sites Spring 2012 Continuation of construction (normative con- Autumn 2012 (in case of receiving funds) struction period - 48 months) Start of operation of II site of I phase of metro 2015 -2017 line

The schedule is tentative and may vary depending on the timing of funds receipt. Since the project was completed and approved back in the 80s of XX century and no significant changes have been made during subsequent years, at this stage only environmental part of the project is subject to approval.

1.5 Construction plan The General Contractor responsible for building of the designed object will be determined on a tender basis and at present is undefined. The responsibilities of the General Contractor include identifying and organizing the work of designers of construction companies and object commissioning upon turnkey basis. The normative period of construction of the II launch site is 48 months upon condition of sufficient funding. At the stage of construction works, following tasks are to be performed: - arrangement of surface construction sites; - connection construction site buildings to the city water supply and sewage systems, energy supply; - development of metropolitan tunnel; - mounting of construction units and equipment in tunnels, at stations, etc.; - technical equipment and object preparation for proper use; - commissioning.

During construction, the number of workers can vary from 800 to 1800 people. Everyday service will be provided at temporary construction sites (7 pcs.) and in the engineering building.

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The General Contractor and executor of construction works will also be obliged to organ- ize the construction process in view of environmental priorities described.

1.6 Contractor and control of construction phases Management of early phases of construction is assigned to the SE "DBDMC". Operational management structure of metropolitan is developed. SE "DM", which has a system of work safety management, healthcare and environmental protection, is responsible for the metro operation. Surveillance and control of construction phases will be further fulfilled by SE "DBDMC". After determining the General Contractor, following responsibilities will be assigned: crea- tion a service of operational management of work safety, healthcare and environmental protection during construction.

2. METROPOLITAN OPERATIONAL PROCEDURES 2.1 General information Metropolitan is a means of transport for public conveyance within the city. Passenger flow after commissioning of II site of I phase will total to 106 million people/year and will grow by 9.6 times in comparison with the present index. The project provides for arrangement of: – three metro stations: "Chkalov Park" ("Teatralna"), "Lenin Square" ("Tsentralna"), "Zhovtneva Square" ("Historical Museum"); – 12 construction sites and basic sites (temporary); – six shafts No. 11-16; – three main line tunnels; – three inclined (escalator) tunnels; – three underground halls. Metro station "Teatralna" comprises: – three escalators (2 downward direction, 1 upward direction or vice versa); – passages 5 m wide; – stairway at the level of the outdoors; – service rooms; 10

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– elevators for physically challenged people. Metro station "Tsentralna" comprises: – service rooms; – four escalators (2 downward direction, 2 upward direction); – passages 6 m wide; – stairway at the level of the outdoors; – three separate exits; – elevators for physically challenged people. Metro station "Historical Museum" comprises: – service rooms; – four escalators (2 downward direction, 2 upward direction); – passages 5 m wide; – stairway at the level of the outdoors; – three separate exits; – elevators for physically challenged people. Trains headway is 6-10 minutes, depending on the time of the day. The service rooms include: accommodation space, staff rooms, first aid post, pantries, power control rooms, repair room, transportation room, ticket office, escalators machinery room and other. Raw materials are not used during metropolitan operation.

2.2 Water and power supply When operating the metropolitan, water is only used for domestic needs. The service consumption of water by one station is 4.0 m 3/day and is provided by the existing municipal water supply system located near the station and owned by Public Utility "Dni- provodokanal". The total volume of water consumption by II site of the metropolitan will amount to 12 m3/day for domestic purposes. Domestic waste drain in the amount of 4.0 m 3/day from one station will be discharged into the existing sewer collector, located near the station, and cleared at the city wastewater treatment plants owned by "Dniprovodokanal".

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Heating of stations is provided for from the existing city heating networks or by using electric heaters. Power supply of stations is provided for by unitized transformer substations powered by OJSC "Oblenergo".

2.3 Analysis of the operation technology of the subway During the metro stations, operation there will be no pollutant emissions into the atmosphere. Noise and vibration level on the ground surface in the area of residential buildings will be within the standard values, because the constructed subway is deep-level (40-70 m depth). The General Contractor and operating company have a system of work safety and healthcare (safety supervisor) and environment protection (environmental engineer). At present, the environment protection systems of companies are not certified in accordance to the international standard ISO 14000, but in general, they abide by this standard.

2.4 Metropolitan decommissioning The metro operation cycle will amount to 100-150 years. Depending on future changes in the market of transportation services (invention of a more competitive type of transport), compliance with appropriate rules of operation and emergencies will determine the actual operation cycle of the metro line. If case of a decision on decommissioning of the metro, coordination with local authorities will be initiated and the details of this procedure will be specified. At present, there is no possibility of accurate identification of procedures of the metro decommissioning, as this process is remote in time and today it is impossible to determine the plans and methods to carry out this work. After completion of construction of I metro phase, temporary construction sites will be de- commissioned in turn. All machinery, mechanisms and mobile facilities will be transferred to future subway construction sites. All structures will be dismantled and removed for storage and processing to specific companies. The effect of construction sites decommissioning on the city population will be negligible.

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3. ENVIRONMENTAL PREREQUISITES 3.1 Geology, seismology and hydrogeology Metropolitan - is an underground structure, so the geological environment has exceptional value in its construction. In the geological cross-section to a depth of 80.5 m 23 engineering-geologic elements (EGE) were detected including: – modern sediments (EGE-1 - sand, loam, slag, rubble, debris, industrial waste - thickness - 0.3 - 5.3 m; EGE-2 - sandy or loamy black soil - thickness of 0.2 -1.6 m); – alluvial-talus sediments (EGE-4 – sandy loam, clay loam, loam - thickness 0.3 m - 7.8 m); – alluvial sediments (EGE-5 - gray, light-gray and bright-yellow quartz with occasional streaks of sand and anisomerous sandy loam - thickness 1.3 - 16.7 m); – fluvioglacial sediments (EGE-15a - heterogeneous sandy gravelly substance containing gravel and boulders of rocks with sand and clay filler - thickness 3.6 - 5.9 m); – eluvial-diluvial and eolian-diluvial (loess complex); in this range following EGEs have been detected: – upper quaternary sediments - loess sandy loam from yellow to yellow-brown and brown and sandy loam - light-yellow, yellow, brown-yellow (black-sea – EGE-7, dofinivka – EGE-8, bursk - EGE-9, vitachevsk - EGE-10, udaysk - EGE-11, pryluky - EGE-12); – medium quaternary sediments – loess sandy loam from yellow to yellow-brown and brown; brown loess sandy loam, dark-brown, black-brown (tiasminsk - EGE-13, kaidaksk - EGE- 14, dniprovsk - EGE-15, zavadovsk - EGE-16); – lower quaternary sediments – lithological sandy loam and loam, red-brown, green- brown, sandy lots (martonoshsk - EGE-17); – neogene sediments - gray clay, light gray, green-gray, intensely sandy lots (with slots and streaks of sand), sand of bright colors from light-gray to rusty-yellow, fine sand with numerous thin layers and streaks of green-gray clay (sarmat - EGE-18, poltava - EGE-19); – paleogene sediments – unevenly sandy clay with streaks and layers of sand (kharkiv - EGE-20); – weathering crust of crystalline rocks (kaolin, gruss-debris soils, sand-gruss-debris soils) - neogene sands of poltava layer; sarmat clay; kaolin of white, light-gray and green-gray 13

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grains of quartz and gruss of bedrock (dispersed area - EGE-21, gruss-debris soils - EGE-22, clod-eluvial - EGE-23); – archean-proterozoic complex of crystalline rocks - microcline granite, plageogranite, quartz rock and kaolin zones (EGE-24). Construction work will be conducted mainly in the rock at a depth of 40-70 m from the ground surface. The rocks contain igneous rocks represented by tartan lower-medium-proterozoic granites (gneisses, amphibolites, migmatite) and the most common plageogranite of upper proterozoic, include quartz and kaolin zones. The composite of tartan granite: quartz - 25%, microcline - 20-40%, plagioclase - 20-45% biotite - 1-6%, muscovite - 1-3%. Radioactivity of these granites is 20-25 mR/hour. The composite of plageogranite: quartz - 20-32%, plagioclase - 45-60%, muscovite - 2- 6%, apatite - 1%, sphen - 2%. Radioactivity of these granites is 15-18 mR/hour. Five aquifers underlay along the metro construction line: – aquifer in upper and middle quaternary alluvial-diluvial and alluvial sediments diluvial – depth varies from 1.4 m to 5.3 m; – aquifer in the upper-lower quaternary alluvial-diluvial and eolian-diluvial loess sediments - depth varies from 2.7 m to 31.6 m; – aquifer in poltava layer sediments of neogene – depth varies from 16.5 m to 36.1 m; – aquifer in kharkiv layer sediments of paleogene – depth varies from 10.5 m to 20.5 m; – aquifer of residual soil and fractured zone of crystalline rocks - piezometric levels set at depths 35.6 - 50.0 m. The main in underground construction is the aquifer of residual soil and fractured zones of crystalline rocks. The characteristic feature of the hydrological conditions is widespread of fracture water in precambrian crystalline rocks. Aquifers and complexes are hydraulically interconnected, have common sources of supply and discharge area. The degree of saturation in fractured zones of crystalline rocks depends upon fracture intensity and the degree of colmatation and is distinct in irregularity of both vertical cross-section and square.

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The coefficient of water conductivity is 3.5-10.4 m 2/day, which confirms heterogeneity and water conductivity of soil both in depth and by square. The maximum specific capacity rates 34- 157 m 3/day. Maximum water flow to bottom-hole may amount to 15-50 m 3/year. The level of groundwater along the underground route varies from 1.4 m to 20.1 m. The chemical composition of fracture water is distinct in volatility. Its variability is ex- plained by a hydraulic connection with overlying aquifers. By mineralization type water is mixers are from hydro-sulphate-chloride to chloride-hydrocarbonate-sulphate. Mineralization varies from 0.78 g/l to 1.97 g/l. The temperature of fracture water is unstable and varies from 9.80 oC to 14.20 oC. Typi- cally, the temperature decreases in depth. The main supply of aquifer complex is due to infiltration of precipitation in areas of high hypsometric position of crystalline rocks covered with a low thickness of quaternary sediments outside the described area. In addition, extra supply is due to flow from the overlying aquifers in places with no confining beds.

3.2 Surface water The main source of surface water in the city is the Dnieper River, which flows at a distance of 600-1000 m to the north parallel to the subway. Hydrological regime and water quality in the Dnieper River will not change due to construction of the subway. Water quality according to some parameters (suspended substances and biological indi- cators) does not meet the quality standards for drinking water. The normalization of these parameters to compliance with the Ukrainian standards is conducted at water treatment plants that are governed by the SE "Dniprovodokanal". During construction and operation of underground structures, water pumping from underground aquifers (radii of pressure sinks are much smaller than the distance to the channel water of Dnieper), will have no negative impact upon surface water.

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3.3 Climate and air environment The climate in Dnipropetrovsk City is conditioned upon to the influence of air masses that come from the Atlantic, the Arctic Basin or formed over large areas of Eurasia and is character- ized by the following parameters: - average maximum temperature of the hottest month (July) is 26.7°C above zero; - average temperature of the coldest month (January) is 5.5°C below zero; - wind speed with exceedance frequency of 5%: 10-11 m/s; - average precipitations per year - 513 mm; - number of foggy days per year - 44; - average humidity per year - 74%. The thickness of snow cover is 10-50 cm Systematic monitoring of air pollution in the city has been conducted since 1967 at four fixed stations located with the aim to characterize air quality in different parts of the city (station No. 10 - in the park on the Dnieper riverbank, station No. 11 - at Ostrovskyi Square, station No. 12 - in a residential area, station No. 13 - in an industrial area). The main air pollutants are suspended substances, carbon monoxide and nitrogen dioxide. According to the letter No. 09.01/72 of 05.10.2011 of Dnipropetrovsk Meteorological office, background concentration of pollutants in the atmosphere in the construction area is as fol- lows: carbon monoxide - 3.49111 mg/m 3 (0.698 PLL); nitrogen dioxide - 0.13044 mg/m 3 (0.652 PLL); sulfur dioxide - 0.0129 mg/m 3 (0.026 PLL); iron - 0.016 mg/m 3 (0.4 PLL); manganese and its compounds - 0.004 mg/m 3 (0.4 PLL); soot - 0.06 mg/m 3 (0.4 PLL).

3.4 Noise and vibration To determine the background level of noise along Karl Marx Ave. from the metro station "Vokzalna" to the metro station "Historical Museum" the City Sanitary and Epidemiological Sta- tion performed laboratory measurements (Protocol No. 56 of 07.10.11). The results show, that taking into account an amendment of +10 dB, which is approved for the adjacent residential territory of the first line of main streets of city significance, the equivalent sound level at all points of measurement amount 69-76 dB and exceed the permissible limit (65 dB) by 3-11 dB, and maximum noise level amounts 75-82 dB and exceed the permissible limit

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(80 dB) by 1-2 dB in the housing area of K. Marx Ave. 30, 33. The main sources of noise at the construction site are technological equipment and vehicles. The noise level is 60 dB. But since background values exceed the permissible limit, any work on the construction site will cause noise levels higher than the normative.

3.5 Protected areas The closest object of nature reserve fund is Dniprovsko-Orilskyi Wildlife Preservation (ap- proximately 20 km). It was created by the Directive No. 262 of the Council of Ministers of the USSR on September 15, 1990 on the base of the general zoological and ornithological reserves "Taromskyi Ustup" and "Obukhivski Plavni." The metropolitan has no impact on the natural reserve.

3.6 Culture, history, archeology Following recreational areas are adjacent to the construction site: • Park n. a. Lazar Globa - (former – n. a. Chkalov) (Karl Marx Ave., 95); • Park Complex of Zhovtneva Square. The complex includes: Historical Museum, Dio- rama "Battle for Dnieper", Transfiguration Cathedral, Cultural and Exhibition Centre, Memorial Cemetery, Memorial to the fallen defenders of law and order; • Park n. a. T. G. Shevchenko - divided into coastal and island part. Along the construction site in about 600-1000 m Dnipropetrovska Esplanade is located – a landscaped and designed for recreation coastal area of the right bank of the Dnieper River. Dnipropetrovska Esplanade is one of the longest in Europe. Its length is over 20 km. Buildings, monuments of national importance, adjacent to the construction site: • Dnipropetrovsk Drama Theatre n. a. Shevchenko; • State Culture College; • The building of the English Club; • The building of the County hospital; • The house of the Governor; • Dnipropetrovsk National Historical Museum n. a. D. I. Yavornytskyi; • National Mining University;

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• Dnipropetrovsk Regional Council; • Dnipropetrovsk Academic Theatre of Russian Drama n. a. M. Gorky; • The Savior Transfiguration Cathedral; • Dnipropetrovsk Philharmonic Theatre; • Hotel "Astoria"; • The office of the National Bank of Ukraine in Dnipropetrovsk Region, the "House of Katerynoslavskogo Branch of St. Petersburg Commercial Bank" (Lenin Street, 13); • The monument to Maxim Gorky at the intersection of K. Marx Ave .and M. Gorky Street; • The monument to Grygorii Petrovskyi on the so named square, etc. Within the designed construction area no archaeologically significant sites have been identified. No negative impact on the objects of culture, history and architecture will take place.

3.7 Transportation The city transport is represented by trolleybuses and tramlines, as well as a developed network of fixed-route taxi. The tramways include 17 routes with total length of 273 km. The volume of tramway transportation is 145.5 million passengers per year. The buses include 54 routes with total length of 689.7 km., connecting residential areas to each other, to the city center and industrial areas. Remote residential areas are connected with industrial areas and downtown by express bus routes. Bus transportation carries 180.5 million passengers per year. The trolleybuses include 14 routes with total length of 242.2 km. Volume of passenger flow transport be trolleybuses is 83.2 million passengers per year. Dnipropetrovsk Metro operates starting December 29, 1995. Then the first section consisting of 6 stations was built: "Komunarivska", "Svobody Avenue", "Zavodska", "Metalurhiv", "Metrobudivnykiv", "Vokzalna ". The total length of operating line is 7.08 km. In the future perspective, the total length of the first line will total to 11.2 km and will include nine stations. The subway development includes the construction of 80 km tract with three lines. Also located in Dnepropetrovsk are two passenger railway stations (Central and South- 18

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ern), international airport, bus and river stations (central bus station and bus station "Novyi Tsentr”). Bus, tramway, trolleybus routes and commissioned in 1995 I launch site of Dnipropetrovsk Metro cross the city in all directions. Today, they carry about 500 million passengers a year at a length of almost 1.2 thousand km, including through existing subway line, with operating length 7.08 km. - 10 million passengers per year. When operating the underground, transportation of raw materials and other goods is not required.

3.8 Social and economic environment Dnipropetrovsk City, where construction is supposed to take place, is the administrative center of Dnipropetrovsk Region and Dnipropetrovsk City Council. Population of Dnipropetrovsk City as of 2010 was 1.009 million people, density per 1 sq. km - 2457 people. The main industries are metallurgy, metal processing, machinery, electric power. In November 2011, the number of unemployed in the city was 11,869 of people, which is by 1341 of people less than in the same period of 2010. The education level of residents of the City of Dnipropetrovsk – 99,7%. The infrastructure of the city is well developed. There are 160 general schools and 20 universities in the city. The city has a developed network of health care establishments. About 4.5 thousand doc- tors and more than 7 thousand junior medical specialists work in medical and preventive establishments. Medical and diagnostic care is provided by 53 institutions, including private ones. Among other diseases in Dnipropetrovsk Region, the highest frequency is characteristic of respiratory diseases (44%). In Dnipropetrovsk City a tendency of infant mortality is observed increase (in 2010 the increase amounted to 125 children). Table 1-3 shows statistics regarding the number of victims of industrial injuries in Dni- propetrovsk Region per 1000 people:

Table 3-1 – Number of victims of industrial injuries

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in Dnipropetrovsk Region per 1,000 people Year 1990 1995 2000 2005 2008 2009 Number of 5,0 3,9 2,3 1,7 1,3 1,0 injured people

3.9 Land ownership The land for construction sites, halls, passages and station exits (12 pcs. total) is in state ownership. During the construction, the area will be temporarily leased to the State Enterprise "Dnipropetrovsk board of directors on metropolitan construction" (SE "DBDMC"). Documents are under design. After the construction of metro, the land for temporary construction sites will be returned to state ownership.

3.10 . Employment of population The existing underground facilities (stations, depots, offices) employ about 800 people. Of these, engineers constitute 50%, workers - 50%. The average salary is 2067 UAH (200 Euros), representing 93% of the average salary in the City of Dnepropetrovsk (2257 UAH, or 215 Euros). After commissioning of the projected metro stations the number of SE "DM" employees will increase by 250 people.

3.11 Work safety and healthcare at the existing metropolitan State enterprise “Dnipropetrovsk metropolitan” (SE “DM”) has the department of experts in work safety and environmental protection. The procedures of safety compliance meet the requirements of the Ukrainian legislation. The number of accidents in the metro is small. In 2011 there were no accidents.

4. Environmental and social impact 4.1 Areas and stages of impact For ESIA purposes following areas have been defined: 20

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1. The area of direct impact: the estimated size of this area is 50 m from the axis of the subway. Construction and operation of the subway may affect air and water quality, noise and vibration levels. The objects of the potential impacts might include residential houses, local business activities (shops, cafes), workers of cultural and administrative institutions. 2. The area of environmental impact: the estimated size of this area is about 500 m; minor environmental impacts are possible, no very negative impact on the population and biota is an- ticipated. 3. The area of socio-economic impact: the area of socio-economic impact may include Dnipropetrovsk City and the surrounding social and economic objects. As the process of metro construction, its operation and decommissioning are character- ized by different technological parameters, it would be appropriate to separate their environmental analysis.

4.2 Construction phase Atmosphere air In the phase of construction of underground, the main identified sources of air pollution is dust emissions during the production of concrete, drilling and blasting works during underground tunnel laying, welding during installation works in the tunnel and on construction sites, dust and exhaust gases of vehicles, dust during transportation of soil and building materials. The main sources of emissions were summarized in the ESIA. The project includes calculation of pollutants dispersion into the air from the construction site barrel No. 14 to the adjacent houses. The calculation of pollutants dispersion showed that together with the background values no exceeding of standard values in the residential area during the metro construction is expected. Table 4-1 – Summary of permissible level limits (PLL) at the boundary of residential area Substance PLL (mg/m 3) Background Background plus the fore- casted maximum concentration in residential area

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PLL mg/m 3 PLL mg/m 3 1 2 3 4 5 6 Nitrogen peroxide 0,2 0,652 0,13044 0,65266 0,13057 Sulphur dioxide 0,5 0,026 0,0129 0,026033 0,012917 Carbon oxide 5,0 0,698 3,49111 0,69805 3,49136 Hydrocarbon black 0,5 0,4 0,06 0,40022 0,060033 Ferrous oxide 0,04 0,4 0,016 0,428 0,027 Manganese and its 0,01 0,4 0,004 0,52 0,0052 compounds

Also, it is worth paying attention to the fact that the model may be incorrect because of too careful evaluations while estimating the concentration during 20 minutes under the worst weather conditions for the emissions that are on the verge of legally established norms. Concentration of contaminants on workplaces was not defined as during construction, works there are no regular jobs and they are not disorganized. The General Contractor will create a network of monitoring points of the air at the near- est residential buildings during construction. Emissions of greenhouse gases during construction (mainly from transport) total 1.5702 tons/year, which is not essential. Construction of the subway will be conducted in the central part of the city with existing paved roads. Delivery of construction materials (sand, gravel, cement, etc.) and removal of soil from the underground will be carried out by trucks around the clock (if necessary) through the city streets. Routes of transportation of soil (rock) are identified and agreed with Regional State Road Inspection in the letter No. 14/1-749 as of 28.02.2011. Transportation route from the shaft No. 11: Karl Marx Ave. - Gorky St.- Leningradska St. - Plekhanov St. - Lenin Embankment St. – Peremohy Embankment St. - Kosmichna St.- Pratsi Ave. Transportation route from the shaft No. 14: Karl Marx Ave. – K. Liebknecht Str. – Heroiv Stalinhradu St. - Zaporizhia Highway St. - Pratsi Ave. 22

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The end point of the soil removal is the cavin. The project of the cavin backfill will be developed separately. Traffic intensity - 10 cars per hour. When transferring soil and building materials (with KRAZ and KAMAZ trucks, capacity to 10 tons) pollution by dust and exhaust fumes is possible. Vehicle wheels are washed at construction sites. Soil being taken away is moistened and covered. Building materials are covered with tarpaulin. The volume of exhaust gases compared to the flow of cars in the city will be negligible. During blasting operations inorganic dust will be evolved, but provided air curtain, irrigation of the bottom-hole before the explosion, rocks moistening under pressure during loading, water curtain around the bottom-hole outside the zone of gases emission, no dust emissions into the air will take place.

Noise During blasting operations, the level of noise and vibration will be increased. However, as these works are conducted at depths of 40-70 m, on the surface noise will be negligible, and the level of vibration will be within normal limits and lower than the vibration caused by trams and cars (physical studies have been conducted). Noise and vibration level at surface construction sites is lower than the normalized indexes. During transportation of soil and building materials, traffic speed is limited to 30 km/hour to prevent the increase of noise and vibration. During construction works, special measures to reduce noise will be taken. They will be included in the Plan of environmental protection.

Water environment During construction, water is used for domestic purposes of workers and technological needs: dust suppression during blasting operations, concrete production. Water supply for domestic needs in the amount of 50 m 3/day will be provided by the city water supply systems. Water supply for technological needs in the amount of 10 m 3/day will be

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provided by purified underground water collected with trays and stored in reservoirs. There are mobile water treatment facilities designed. Domestic wastewater in the amount of 50.0 m 3/day will be discharged into the city sewerage network. There will be no discharge of technological wastewater. Surface water from construction sites contaminated by petroleum products and suspended substances will be cleansed in compact treatment plants to complete to standard values and drained into the city networks, and further - to the Dnieper River. Water consumption and substances concentrations are listed in the ESIA.

Waste management, flora and fauna Soil excavation will be conducted in closed way. The volume of soil excavated will be 420 thousand m 3. After the explosion, soil will be loaded onto trolleys and transported to bunkers at surface construction sites, from where it will be exported to an agreed place by trucks. Before exportation, all soil will undergo the radiation control. In addition, during construction following waste will be formed: scrap metal, rags, wood waste, construction debris. The volume of waste is specified in the ESIA. The General Contractor will develop and implement a waste management plan during the construction period. Measures will be developed to minimize waste and for its safe storage. Waste will be sorted and reused as much as possible, and the rest will be exported for disposal to landfill by licensed waste carriers or for recycling. Construction will be conducted under ground and in the city center. There will be no impact on flora and fauna.

Pollution of ground and underground water The potential risk of the plan is radiation contamination of soil and its flood and possible slump due to irrigation by water and sewage leakage from utilities at the haul between "Tsen- tralna" and "Museum" stations. The project envisages measures to minimize these risks.

The maximum level of natural radiation of granites is 25 mR/hour or 1.42 mSv/year or 0.16 mSv/hour or 0.22 mGy/hour (RSSU-97, Annex 10, Table 10.1).

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According to SP 2.6.1-799-99, radiation control of working places is to be done selec- tively, because radiation exposure of workers is 1.42 mSv/year (less than 2 mSv/year, p. 5.1.4) and according to p. 5.2.2 it does not exceed the average values for the population irradiation from natural sources. According to NBC V 1.4.-1.9-97, table 1, the permissible level of radiation for objects of residential, industrial and transport purposes (group I) shall not exceed 0.26 mGy/hour (in our case this value is 0.22 mGy/hour) or 30 mR/hour (in our case this value is 25 mR/hour). For places of soil disposal – bottom-hole filling (group 4) power of radiation dose ab- sorbed is not standardized. Since natural granite radiation parameters are within the regulations, mitigation measures are not needed. According to the document ANL/EA/CP-100491, developed by the International Commis- sion on Radiation Protection (ICRP), for soils derived from drilling the limiting level of radiation is 47.5 mR/hour, which does not contradict with Ukrainian standards. Construction activities could potentially cause emissions of pollutants into soil and underground water. Potential sources of contamination include the import of contaminated building materials and accidental discharge of hazardous materials. Measures will be taken to prevent the import of contaminated materials on site. Potentially polluting materials (fuel, oil, cement) will be safely stored with the means of localization of spills and dispersal. In addition, adequate work procedures will be implemented to minimize the risk of accidental discharge during delivery on site and exporting from it.

Landscape and view impact Construction works on the surface will include fencing construction sites with high non- transparent fence, creating shaft pits, working shafts, earthworks, transport movement. At night construction sites will be lighted. These actions will have a negative impact on the landscape character and a negative visual impact on the downtown. A high fence, which will reduce the site visibility, will reduce this negative impact. Underground construction works will not affect the landscape.

Transport

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The impact of land transport and transportation is outlined in the sections about air and noise. Delivery of materials and removal of soil from construction sites will be fulfilled by trucks. All materials that can evolve dust will be moisturized (sand, gravel, granite) or tightly hermeti- cally packed (cement). Therefore, there will be no emissions into the air during transportation. Road transportation will be conducted through city streets with traffic flow up to 1,000 cars per hour. Therefore, additional 10 cars per hour may not substantially affect the number of road accidents in the city.

Social sphere The phase of construction of three underground stations provides for 800-1800 workplaces that will positively affect the employment situation, income level of population and, hence, the intensity of turnover in Dnipropetrovsk City. Changes in the demographics of the city in this case are possible due to migration of workers from the nearby settlements. After determination of the General Contractor, it will be- come known whether foreign workers will be involved. At the stage of underground construction, negative effects on health of workers may be caused by pollutants in the atmosphere and irrigation of tunnels. To reduce/prevent the risk it is mandatory to follow the standards of environmental protection. The need for temporary buildings and structures for residential purposes we be fulfilled by installing inventory trailers and using the existing residential buildings. Household and office buildings will be equipped with internal plumbing, sewage, heating and electric lighting.

Management of construction workforce Potential impacts related to construction workforce, especially not local, includes stress among construction workers and local communities. The stress among construction workers may be caused by lack of space for recreation and entertainment, long working day, cramped accommodations and remoteness of the family. The stress among local communities can be caused by the influx of predominantly male workers, crime increase, infectious diseases among workers, reduced safety and alcohol abuse.

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However, as construction takes place in the city with a developed infrastructure, these impacts are minor and controllable.

Health and safety of the community The impact on community health can be caused by physical and psychological effects of constant noise and vibration from transport and degradation of air quality during construction of the subway. Measures to reduce the impact and help control the level of influence will be introduced, including regulation of types and routes of transport, traffic intensity, irrigation of dust forming cargos and regular monitoring of noise levels and air quality, and assessing of the impact of vi- brations onto residential objects.

Land acquisition, relocation and socio-economic issues During construction, no physical movement of buildings will be necessary, but tramways, trolleybuses and communication networks (water, sewerage, gas, electricity) will require transferring. Construction of the metro will not affect any houses directly, so there is no need in residents resettling. Construction will affect the land, but it belongs to the state and will be executed in full compliance with national requirements and the requirements of the EBRD. During construction and operation, no loss of access rights will take place.

Social investment Today the company has not developed a strategy of corporate social responsibility. Given the potential expansion of its sphere of influence and power, it is provided for social investment program development and formalization. Details of any funds, areas of attention and applications processing will be published in order to coordinate expectations.

4.3 Operation phase Atmosphere air

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During operation of the project metro stations no emissions of pollutants and greenhouse gases to the atmosphere will take place. Therefore, impact on the air is only determined by noise and vibration. But as the source of noise and vibration is located at a considerable depth, at the ground surface the noise will not be heard, and the level of vibration will be within normal limits and lower than that of surface transport (tramways and cars). The existing metro has the permission for emissions from depot No. 1210100000-82 as of 07.06.2007 for five years. Additional emissions permits are not required. Also, there is the limit on the existing waste No. 341 as of 14.06.2010. Due to commissioning of three subway stations, the waste limit will be upgraded.

Water environment The source of drinking water for underground facilities is the city water supply system, which provides for laying of the water input of Ø100 mm to one of the halls of each station. The quality of drinking water in Ukraine is standardized by GOST 2874-82 “Drinking water”. The provision of these indexes is guaranteed by the SE "Dniprovodokanal". Water consumption for each new station will be 4 m 3/day. Hot water is provided for by electrical heater. Domestic wastewater at each station will be collected into sewage tanks. From these drains the wastewater will be sent to the city sewer by pumping stations. Consumption - 4.0 m3/day. The buildings of project metropolitan are to be equipped with drainage devices fitted to remove household water (washing of stations, halls, span tunnels) and underground water, which may leak due to violation of waterproofing treatment. The volume of underground water may amount to more than 1000 m 3/year. Waste water contaminated with oil products and suspended substances will get to sludge traps bonded to collect sediment and oil products located at each station. From water drainage facilities water is discharged into the urban network of rain water. The concentration of pollutants in domestic sewage and runoff from drainage facilities meet the requirements of the Ukrainian legislation. Surface runoff is not formed in the operation of the subway.

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Waste management, flora and fauna In the underground operation a small number of following waste is formed: household waste, sediment and oil products from sludge traps, fluorescent lamps. Waste management, recovery and processing will be governed by waste management plans of the enterprise. For storing and moving waste standards of waste management in Ukraine will be applied. Areas of temporary storage of waste will be established and sealed con- tainers will be used, which will provide reliable isolation of waste. The area near stations exit will be arranged; playgrounds with hard surface and curbs will be provided. In the underground operation in the downtown there will be no the impact on flora and fauna. In a radius of 3 km from the location of underground facilities no protected areas are located and flora and fauna listed in the Red Book.

Pollution of ground and underground water Contamination of land in the operation of the subway will not take place. Ground water contaminated with suspended substances and petroleum products that may leak into the tunnels and underground stations will be treated at each station in sludge traps bonded with the requirements of the Ukrainian legislation. Hazardous substances are stored and used at the stations according to regulations and in compliance with all precautions.

Landscape and view impact During operation of the metro, the impact on landscape and visual impact will be positive, because the design of subway exits will comply with the architectural style of the city.

Social sphere During operation of the metro additional 250 work places will be provided that will positively affect the employment situation in the City of Dnepropetrovsk. During operation phase of the underground there will be no negative impact on public health.

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The metro staff will be provided with normal working hours, which may not exceed 40 hours per week, accommodation spaces, room for meals will be provided, etc. The project provides work places with: • drinking water; • sewage system; • hot water supply. • electric heating, ventilation and air conditioning. For the socially vulnerable population the designed subway stations are provided with ramps, handrails, lifts (elevators). To provide healthcare of workers and passengers each subway station will be equipped with first aid post with a set of necessary medicines.

4.4 Environmental and social impact assessment during the phase of decommissioning Metropolitan Currently total operation period of the metro is not determined, but it is expected that it will be 100-150 years. After the decision on the metro decommissioning a plan of decommissioning procedure will be developed, which will be agreed with the relevant authorities. Due to the fact that decommissioning will take place in many years, now it is not possible to determine what technologies will be used and what the appropriate plan will be. The most likely is subway conservation.

Depot and construction sites In the absence of a decision to use a particular methodology it is impossible to define in detail and assess the potential environmental impacts during decommissioning. However, in general, during this kind of works, impacts on the environment are similar to impacts during construction, so the proposed mitigating measures are the same as for the construction phase. Levels of dust evolved during decommissioning can exceed the level of dust emissions during construction because of "aggressive" nature of buildings demolition (eg. breaking of concrete and masonry).

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Measures to reduce the environmental impact will be similar to those used during construction. Like on construction phase, the use of appropriate mitigation measures should reduce the amount of dust and the duration of its emission. Network of collection of surface water and water from washing the wheels will be pre- served as long as possible to reduce the number of potential contaminants that may get into the territory of depots, construction sites, city roads. There is a potential risk that contaminants that got into soil due to leakage or dispersions during operation can be discharged into environment during demolition. Either these will be blown by wind in the form of dust or they will get into the groundwater. However, it is expected that any incident during the construction sites operation will be localized; substances will be removed from soil and restored during spill or dispersion. If during decommissioning significant areas of contamination will still be found, the soil must be removed and disposed at an appropriate hazardous waste landfill. The noise levels related to decommissioning works will be within acceptable norms and will be temporary. Measures to reduce noise will be included in the decommissioning plan. The decommissioning plan will include waste management plan, which will define the strategy of waste minimizing, storage, handling, treatment, reuse, recycling and disposal for each waste type defined. During decommissioning of construction sites, the transport system is used intensively to export equipment and building structures, but it will be for a limited period of time (2-3 months). Therefore, the impact of transport during decommissioning will be negligible. When decommissioning the impact on the landscape will be positive, because structures and fence will be dismantled and the sites will be refined (arrangement of flowerbeds, lawns, planting trees and bushes).

5. Summary tables of environmental and social impact of the project metro stations In the Table 5-1 below the evaluation data is summarized. The system of environmental impact assessments is based upon data about the potential impacts after the implementation of measures aimed at their reduction. Using a clearly defined set of criteria is not considered appropriate because it does not allow to clearly compare the impacts on various aspects of the environment. The used assessment of environmental impact is presented below: 31

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Table 5-1 – Summary of key residual impacts during project realization

ter

a Soil ment ment tions w areas Grade Grade Waste Waste Traffic Traffic Hygiene Hygiene vibration Protected Protected territories territories economic Land Land con- Noise and and Noise Air quality Air quality Social and and Social demnation Categories Categories Landscape Landscape Flora, fauna fauna Flora, and and environ- Recreational Recreational Underground Underground Surface water Surface Sewage water water Sewage and Historical cultural attrac- cultural 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 During construction ■■■ ■■ х х ■ х х х х х х х х х ● х х х х х х + ++ During operation ■■■ ■■ ■ х х х х ● х х х х х х х х х х + х х х ++ During decommissioning ■■■ ■■ х х ■ х х х х х х х ● х х х х х х х + х ++ Environmental impact of the designed object was estimated by the following levels: ■■■ – extremely unfavorable; ■■ – moderate unfavorable; ■ – minor unfavorable; ● – zero; + – favorable at the local level; ++ – favorable at the regional level.