GEORGIA ELECTRICITY TRANSMISSION NETWORK DEVELOPMENT PROJECTS

Environmental and Social Impact Assessment Volume 5 Physical Environment Document 5.2 Project Component Assessments Prepared for: GSE

SLR Ref:901.12.1 Version No: 2 – Final – Disclosure Authorized June 2020 Georgian State Electrosystem (GSE) Environmental and Social Impact Assessment SLR Ref No:901.12.1 Volume 5 Physical Environment, Document 5.2 Project Component Assessments June 2020

BASIS OF REPORT

This document has been prepared by SLR Consulting Limited with reasonable skill, care and diligence, and taking account of the manpower, timescales and resources devoted to it by agreement with GSE (the Client) as part or all of the services it has been appointed by the Client to carry out. It is subject to the terms and conditions of that appointment.

SLR shall not be liable for the use of or reliance on any information, advice, recommendations and opinions in this document for any purpose by any person other than the Client. Reliance may be granted to a third party only in the event that SLR and the third party have executed a reliance agreement or collateral warranty.

Information reported herein may be based on the interpretation of public domain data collected by SLR, and/or information supplied by the Client and/or its other advisors and associates. These data have been accepted in good faith as being accurate and valid.

The copyright and intellectual property in all drawings, reports, specifications, bills of quantities, calculations and other information set out in this report remain vested in SLR unless the terms of appointment state otherwise.

This document may contain information of a specialised and/or highly technical nature and the Client is advised to seek clarification on any elements which may be unclear to it.

Information, advice, recommendations and opinions in this document should only be relied upon in the context of the whole document and any documents referenced explicitly herein and should then only be used within the context of the appointment.

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Georgian State Electrosystem (GSE) Environmental and Social Impact Assessment SLR Ref No:901.12.1 Volume 5 Physical Environment, Document 5.2 Project Component Assessments June 2020

CONTENTS

ACRONYMS

PREAMBLE

LANDSCAPE AND VISUAL ...... 1 1.1 Component A - Tskaltubo to Akhaltsikhe and on to the Turkey border south of Vale ...... 1 1.2 Component B - Ozurgeti to Zoti HPP and Connection from Ozurgeti to the Paliastomi Line .. 10 1.3 Component C1 –Nenskra to Mestia ...... 17 1.4 Component C2 – Lajanuri Connections to Kheledula HPP, Oni HPP and Tskaltubo ...... 24 1.5 Component D – Reinforcement of the transmission infrastructure in Kakheti ...... 33

HYDROLOGY, GEOLOGY AND GEOHAZARDS ...... 41 2.1 Component A Tskaltubo to Akhaltsikhe and on to the Turkey border south of Vale ...... 41 2.2 Component B - Ozurgeti to Zoti HPP and Connection from Ozurgeti to the Paliastomi Line .. 49 2.3 Component C1 –Nenskra to Mestia ...... 54 2.4 Component C2 – Lajanuri Connections to Kheledula HPP, Oni HPP and Tskaltubo ...... 60 2.5 Component D – Reinforcement of the transmission infrastructure in Kakheti ...... 69

DOCUMENT REFERENCES

FIGURES

ACRONYMS ...... III

PREAMBLE ...... VIII

FIGURE 1 COMPONENT A - SAIRME LINE ...... 42

FIGURE 2 COMPONENT A - TAO LINE ...... 43

FIGURE 3 COMPONENT B PALIASTOMI LOOP AND GURIA LINE –FROM THE WEST ...... 50

FIGURE 4 COMPONENT B PALIASTOMI LOOP AND GURIA LINE –FROM THE NORTH ...... 51

FIGURE 5 COMPONENT C1 – MESTIA LINE ...... 55

FIGURE 6 COMPONENT C2 – ONI HPP LINE ...... 61

FIGURE 7 COMPONENT C2 – KHELEDULA HPP LINE...... 63

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Georgian State Electrosystem (GSE) Environmental and Social Impact Assessment SLR Ref No:901.12.1 Volume 5 Physical Environment, Document 5.2 Project Component Assessments June 2020

FIGURE 8 COMPONENT C2 – LECHKHUMI LINE, NEW DERCHI LINE, LAJANURI HPP LINE AND EXISTING IMERETI LINE – VIEW FROM SOUTH ...... 65

FIGURE 9 COMPONENT C2 – LECHKHUMI LINE , NEW DERCHI LINE, LAJANURI HPP LINE AND EXISTING IMERETI LINE – VIEW FROM NORTH ...... 66

FIGURE 10– COMPONENT D – GURJAANI AND AKHMETA LINES ...... 71

APPENDICES Appendix A Photographs Illustrating Aspects of the Landscape Baseline Context of Each Component.

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Georgian State Electrosystem (GSE) Environmental and Social Impact Assessment SLR Ref No:901.12.1 Volume 5 Physical Environment, Document 5.2 Project Component Assessments June 2020

Acronyms Acronym Description

AA Appropriate Assessment AC/DC Alternating current/direct current AD Anno Domini (also known as Common Era) AMSL Above mean sea level AOP Protected Designation of Origin APA Agency of Protected Area AIS Air insulated switchgear ASL Above Sea Level BC Before Christ (also known as Before Common Era) BCoW Biodiversity Clark of Works BD Bird Directive [BIO-N] Measure number N committed in Volume 3 Biodiversity of the ESIA Report BP British Petroleum [CC] Environmental and social management actions under the responsibility of the Contractor relevant to both substations and transmission line CCTV Closed circuit Television CENN Caucasus Environmental Network CESMP Construction Environmental and Social Management Plan CH Critical Habitat CHS Community Health and Safety CLOs Community Liaison Officers [CO] Construction CSE Cable Sealing End dB(A) Decibels (A weighted) [DD] Detailed design EBRD European Bank for Reconstruction and Development EIA Environmental Impact Assessment EHS Environmental, Health and Safety ELF Extremely Low Frequency

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Georgian State Electrosystem (GSE) Environmental and Social Impact Assessment SLR Ref No:901.12.1 Volume 5 Physical Environment, Document 5.2 Project Component Assessments June 2020

Acronym Description

EMF Electromagnetic Fields ENTSO European Network of Transmission System Operators’ for Electricity EPC Engineering-Procurement-Construction E&S Environmental & Social ERS External Relations Stakeholder ESHS Environment, Social, Health and Safety ESIA Environmental & Social Impact Assessment ESMP Environmental & Social Management Plan ESMS Environmental and Social Management System EU European Union FAO Food and Agriculture Organisation of the United Nations [GC] Government of Georgia E&S management actions GE00000X Candidate Emerald Site identifier GEL Georgian Lari GEOSTAT National Statistics Office of Georgia GIP Good International Practice GIS Gas insulated switchgear GLAC Guide to Land Acquisition and Compensation GLVIA United Kingdom Guidelines for Landscape and Visual Impact Assessment GRC Grievance Resolution Committee GRM Grievance Resolution Mechanism GSE Georgian State Electrosystem GVWR Gross Vehicle Weight Rating ha hectare HD Habitats Directive HDV Heavy Duty Vehicle HGV Heavy Goods Vehicle HPP Hydropower Project H&S/HS Health and Safety HSMS Health and Safety Management System

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Georgian State Electrosystem (GSE) Environmental and Social Impact Assessment SLR Ref No:901.12.1 Volume 5 Physical Environment, Document 5.2 Project Component Assessments June 2020

Acronym Description

HVDC High Voltage Direct Current [HYD-N] Measure number N committed in the Hydrology, Geology and Geohazards Assessment in Volume 5 Physical Environment of the ESIA Report Hz Hertz IAS Invasive Alien Species IBA Important Bird Area ICNIRP International Commission on Non-Ionizing Radiation Protection IDP Internally Displaced Persons IFC International Finance Cooperation IFC PS IFC Performance Standards ILO International Labour Organization JSCNH Developer of Nenskra HPP Key Biodiversity KBA Area KfW KfW Development Bank kHz Kilohertz km Kilometre KM Kilometre markers along each proposed transmission line kV Kilovolt L&V Landscape and visual LARCF Land Acquisition and Resettlement Compensation Framework LNK Lower Namakhvani LVIA Landscape and visual impact assessment [LVIA-N] Measure number N committed in the Landscape and Visual Assessment in Volume 5 Physical Environment of the ESIA Report m Metre MEPA Ministry of Environmental Protection and Agriculture mASL Metres above sea level MCP Management of Change Procedure MLARO Municipal Land Acquisition and Resettlement Office MoESD Ministry of Economy and Sustainable Development

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Georgian State Electrosystem (GSE) Environmental and Social Impact Assessment SLR Ref No:901.12.1 Volume 5 Physical Environment, Document 5.2 Project Component Assessments June 2020

Acronym Description

MoF Ministry of Finance MVA Mega volt-ampere MW Megawatt NACHP National Agency for Cultural Heritage Preservation of Georgia NACRES Centre for Biodiversity Conservation and Research NAPR National Agency of Public Registry NBSAP The 2nd National Biodiversity Strategy and Action Plan NGO Non-Governmental Organisation NOI Noise ESMP action NOx Oxides of nitrogen NP National park NTS Non-Technical Summary [OC] Owner Construction ESMS management actions OHL Overhead line [OP] Operation PAH Project Affected Household PAP Project Affected Person(s) PBF Priority Biodiversity Feature PCBs Polychlorinated Biphenyls PDO Protected Designation of Origin PPE Personal Protection Equipment PR EBRD Performance Requirement PRRC Property Rights Recognition Commission PS KfW Performance Standard RAP Resettlement Action Plan RMT Resettlement Management Team RoW Right of way SEP Stakeholder Engagement Plan

SF6 Sulphur hexaflouride [SOC-N] measure number N committed in Volume 4 Social of the ESIA Report

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Georgian State Electrosystem (GSE) Environmental and Social Impact Assessment SLR Ref No:901.12.1 Volume 5 Physical Environment, Document 5.2 Project Component Assessments June 2020

Acronym Description

SPAB Special Protection Area for Birds TMP Traffic Management Plan TYNDP GSE’s Ten Year Network Development Plan of Georgia UK United Kingdom UNECE United Nations Economic Commission for Europe UNESCO United Nations Educational, Scientific and Cultural Organization UNK Upper Namakhvani VSC Valued Social Components WHO World Health Organisation WHS World Heritage Site

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Preamble This document is the Physical Environment component assessment of the Georgian Electricity Transmission Network Development projects (Project). It forms Volume 5 of the Environmental and Social Impact Assessment (ESIA) Report. The Project being developed by the Georgian State Electrosystem (GSE) comprises the construction of new and in some cases rehabilitation of existing transmission lines and substations. In summary, the Project is formed into 5 geographical component areas (Project Components), Components A, B, C1, C2 and D. Each new or rehabilitated line and substation is given a Project name which is used throughout the documents. The following table provides an overview of the Project Components and the Project names.

Component Line description Project name

A - Tskaltubo to Akhaltsikhe and on to Turkey border at Vale: Samtskhe- - 500kV Tskaltubo to Akhaltsikhe Substation Sairme line Javakheti - 400kV Akhaltsikhe to Turkey border (and on to Tortum in Turkey) Tao line & Imereti - Extension to the existing Akhaltsikhe Substation Akhaltsikhe extension B - Guria Ozurgeti to Zoti HPP and connection from Ozurgeti to the Paliastomi line: - 110kV Ozurgeti to Zoti HPP powerhouse - 220kV Ozurgeti to Paliastomi loop in connection Guria line - 110/220kV Ozurgeti Substation Paliastomi loop Ozurgeti Substation C1 - Nenskra to Mestia: Svaneti - 110/220/500kV Nenskra Substation Nenskra Substation - 110kV Nenskra Substation to Mestia HPPs Mestia line - 500kV Kavkasioni loop in loop out to Nenskra Substation Kavkasioni loop - 220kV Nenskra substation to Nenskra HPP powerhouse Nenskra HPP underground cable line C2 – Racha Lajanuri connections to Kheledula HPP, Oni HPP and Tskaltubo: Lechkhumi - 110/500kV Lajanuri Substation Lajanuri Substation & Imereti - 220kV Lajanuri to Oni HPP Oni HPP line - 220kV Lajanuri to Kheledula HPP Kheledula HPP line - 500kV Lajanuri to Tskaltubo Lechkhumi line - 220kV Rehabilitation of the existing 220kV Derchi line from Lajanuri to New Derchi line Tskaltubo, with new connections into Namakhvani Cascade HPP - 220kV Lajanuri Substation to Lajanuri HPP Lajanuri HPP line D - Kakheti Reinforcement of the transmission infrastructure in Kakheti: - 110/220kV line from Gurjaani to Telavi, constructed on 220kV towers Gurjaani line - 110kV line from Telavi to Akhmeta, constructed on 220kV towers Akhmeta line - 110kV loop to Tsinandali Tsinandali line - 110kV loop to Mukuzani Mukuzani line

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Georgian State Electrosystem (GSE) Environmental and Social Impact Assessment SLR Ref No:901.12.1 Volume 5 Physical Environment, Document 5.2 Project Component Assessments June 2020

Component Line description Project name

- Rehabilitation and extension of 110kV Akhmeta Substation Akhmeta Substation - Rehabilitation and extension of 110/220kV Telavi Substation Telavi Substation - Rehabilitation of 110kV Tsinandali Substation Tsinandali Substation - Rehabilitation and extension of 110kV Mukuzani Substation Mukuzani Substation - Rehabilitation and upgrade of 110/220kV Gurjaani substation Gurjaani Substation

The ESIA Report is formed of a number of volumes and documents, as follows: − Volume 1 – Non Technical Summary; − Volume 2 –Project Definition – including Project introduction, need and alternatives and project description; − Volume 3 – Biodiversity: o Document 3.1 Biodiversity Project-wide Assessment o Document 3.2 Biodiversity Project Component Specific Assessment o Document 3.3 Biodiversity Figures o Document 3.4 Biodiversity Appendices − Volume 4 – Social – including assessments on people, communities, the economy, cultural heritage and Electromagnetic Fields (EMF): o Document 4.1 Social Project-wide Assessment o Document 4.2 Social Project Component Specific Assessment − Volume 5 – Physical Environment– including assessments on landscape and visual, noise, air quality: o Document 5.1 Physical Environment Project-wide Assessment; o Document 5.2 Physical Environment Project Component Specific Assessment (this Report); − Volume 6 – Stakeholder Engagement Plan (SEP); − Volume 7 – Land Acquisition, Resettlement and Compensation Framework (LARCF); − Volume 8 – Environmental and Social Management Plan (ESMP): o Document 8.1 Project-wide ESMP; o Document 8.2 Transmission Lines ESMP; o Document 8.3 Substations ESMP.

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Landscape and Visual

1.1 Component A - Tskaltubo to Akhaltsikhe and on to the Turkey border south of Vale

1.1.1 Component A Baseline Landscape The proposed route of the Sairme line between Tskaltubo and Akhaltsikhe crosses a diverse landscape. The northern end of the proposed Sairme line lies to the south of Tskaltubo and west of Kutaisi. The transmission line would cross the landscape in a southerly direction before heading east to the Akhaltsikhe Substation. The 400kV Tao line would head west from the Akhaltsikhe Substation, generally parallel to the Sairme line before diverging from this near Akhaltsikhe and heading south west towards the border with Turkey. The northern most part of the proposed Sairme line (to KM25) crosses a relatively low lying landscape associated with the Rioni Valley. This is a settled landscape with the transmission line routed between a series of villages. The western edge of Kutaisi, the largest settlement in the vicinity of this proposed transmission line, lies to the east (KM0 to KM10). Around the settlement pattern is a patchwork of small regular shaped fields, typically used for growing crops and enclosed by scrub and tree belts. Between the settlements the landscape is more open, comprising grassland with occasional small areas of woodland. Other notable components of this landscape include the former Kutaisi Airport (east of KM4) on the western edge of Kutaisi and the River Rioni (KM19/KM20). South of the river, the landform rises, though it continues to be a relatively settled landscape. A network of villages and dispersed properties occupy the valley sides and slopes, surrounded by a small scale field system that is enclosed by scrub and trees (to KM31). There is an increasing amount of woodland cover, particularly on the steepest slopes and highest land. South of Saprasia and Dzulukhi (KM31), the landform continues to rise and the landscape becomes increasingly remote. The settlement pattern diminishes and a sense of wildness prevails. The landform is mountainous, forming part of the Lesser Caucasus Mountains, rising to over 2,500m above sea level (ASL). The rugged landscape is wooded in places, particularly in the area south of Dzulukhi, but in other places grassland is the primary land cover, giving rise to an open landscape. Part of this landscape is designated as Borjomi-Kharagauli National Park, located some 2.3km to the east of the proposed route. The southern part of the Sairme line (from KM74), and also the eastern part of the Tao line (KM0 to KM12) cross a settled agricultural landscape. The settlement pattern is less dense than that found near Kutaisi, with small villages positioned on lower slopes and within valleys. The field pattern comprises a mix of small rectangular fields and terrace systems stepping down the hillsides. Tree cover is generally greater on the lower slopes and within the bases of the valleys, with elevated land typically being more open and unenclosed. To the west of Klde (KM12), up to the Turkish border the Tao line crosses a more intensively used agricultural landscape. The field system is generally larger, with no scrub or tree belts forming boundaries. Parts of this landscape are uncultivated, particularly the higher ground and land cover comprises grassland with occasional areas of scrub. The Tao line would be routed parallel with the existing 400kV Meskheti line. There are numerous cultural heritage assets within the landscape associated with Component A. While the potential impacts on these are addressed in the Cultural Heritage sections of Document 4.2, Volume 4 Social, they also have relevance to this assessment in relation to the potential value associated with the landscape. The western region of Georgia is rich in archaeology associated with occupation since at least the Bronze Age, including the village of Abatsumani (approximately 4km north of KM78 of the Sairme line) and the city of Vani

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(approximately 10km west of KM23 of the Sairme line). Cultural heritage sites in the vicinity of Component A include a number of ruined complexes/fortresses, churches, and monasteries. The routes of the proposed Sairme and Tao transmission lines and the location of the Akhaltsikhe Substation do not cross or lie within any landscapes that are recognised for their value by any form of character based designation. However, the Borjomi Kharagauli National Park lies to the east and north of the proposed transmission lines. The sensitivity of the landscape in which Sairme line, Tao line and substation extension would be located is variable. The settled and urban fringe landscapes to the west and south of Kutaisi are of relatively limited value and susceptibility. This is a result of the human influences on the landscape and limited scenic quality. However the combination of valleys and wooded upland landscapes through which the transmission line would be routed between Amaghleba and Shoka (i.e. across the Little Caucuses Mountains) (KM24 to KM74 of the Sairme line) gives rise to a scenic landscape, with a sense of wildness and remoteness, resulting in higher value and susceptibility to the Project. The presence of the Borjomi Kharagauli National Park is also a reflection of these landscape characteristics and its higher value and susceptibility. The southern sections of the Sairme line, the Tao line and Akhaltsikhe Substation extension are routed through/located within a working agricultural landscape, which already contains existing transmission lines, limiting its susceptibility and value. Overall, it is considered that the landscapes associated with the northern and southern parts of the Sairme line, the Tao line and the substation extension are likely to be of medium/low to low sensitivity and the landscape associated with the central part of the Sairme line is likely to be of medium/high sensitivity. Visual Photographs that illustrate aspects of the baseline context for the route of Component A are included in Appendix A. There is a relatively high concentration of settlement pattern at the northern end of the proposed Sairme line, around the western fringes of Kutaisi and to the northern bank of the River Rioni. The closest settlements to the Sairme line to the north of the Rioni River include Ternali (KM0), Maghlaki (KM3), Mitsatsieli (KM6), Kopitnari (KM7), Partskhanakanevi (KM10), Meskheti (KM9), Mukhiani (KM11), Gegut (KM14)i, Patiketi (KM16), Opshkviti (KM16) and Tkachiri (KM18). To the south of the River Rioni, the landform influences settlement pattern, with the rising ground quickly reducing the density of development. To the south of the river, either side of the proposed Sairme line are the settlements of Amaghleba (KM23), Kveda Bzvani (KM26), Zeindari (KM23), Kveda Gora (KM25), Inashauri (KM27), Saprasia (KM30) and Dzulukhi (KM31). Between Dzulukhi and Shoka (KM74), where the proposed transmission line crosses mountainous and wooded terrain, settlement pattern is very sparse. Settlement pattern in the vicinity of the southern part of the Sairme line, both between Shoka (KM74) and Akhaltsikhe Substation and then along the proposed Tao line up to the border with Turkey is relatively limited. Residential properties are typically concentrated the valleys and lower lying landscapes, including Nakurdevi (Sairme line KM76), Tsakhnistskaro (Sairme line KM80), Ani (Sairme line, KM83) and Persa (Tao line, KM4). The road network pattern generally matches that associated with settlements. There is a concentration of road infrastructure at the northern end of the Sairme line and the southern part of the Tao line, with an absence of routes between Dzulukhi (KM32) and Shoka (KM74), where the proposed transmission line crosses mountainous and wooded terrain. The proposed transmission line crosses several roads that radiate from Kutaisi (such as Kutaisi-Khoni Samtredia (KM3)), together with roads that are routed parallel with the River Rioni (including the E60 motorway (KM13)). To the south of the River Rioni the proposed Sairme line crosses the Bagdati-Vani-Dapnari road (KM22), before the route passes into more elevated undulating land where the road network is smaller in scale. The southern part of the Sairme line and the Tao line mainly cross minor roads that connect villages. The exceptions to this are the Kutaisi-Baghdati-Abastumani-Benara road (crossed by the Sairme line, KM78) and the Batumi-Akhaltsikhe road (crossed by the Tao line, KM25).

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Other transport infrastructure crossed by or in the vicinity of the proposed transmission lines includes railway lines that lie to the east of Kutaisi, including the routes that connect Kutaisi with Tskaltubo (KM2), and Kutaisi with Samtredia (KM11). The Tao line lies close to the railway that extends to the west of Akhaltsikhe. In addition, the former Kutaisi Airport lies to the east of the proposed Sairme line (KM4). Borjomi-Kharagauli National Park forms the main area for recreational uses close to the proposed project infrastructure in Component A. This area is promoted for nature conservation value, scenic qualities and recreational potential. The National Park includes a number of trails that are promoted for hiking. Horse tours also take place within the National Park. The proposed Sairme line also crosses the River Rioni (KM20), which is used for kayaking and rafting. Key visual receptors within the Study Area comprise the residents of settlements and dispersed properties, together with people using the local transport infrastructure (include road networks) and people engaged in outdoor recreation in the Borjomi-Kharagauli National Park and along the River Rioni. For the purpose of this assessment, residents and people engaged in outdoor recreation are likely to be of high or medium/high sensitivity, and users of transport infrastructure of medium/low to low sensitivity to the proposed development.

1.1.2 Component A Impact Assessment Potential Visibility The proposed Sairme and Tao transmission lines would be clearly visible new elements, noting that the Tao line would be located parallel to the existing Meskheti line. The Sairme line would use towers that are typically approximately 50m tall and the Tao line would use towers that are typically approximately 34m tall. The landscape between Tskaltubo and the rising ground to the south of the River Rioni is open and relatively flat. Vegetation and buildings would provide some restrictions to views. However, it is expected that the transmission line would be a visible element in this agricultural and urban fringe landscape. South of the River Rioni, where the landform rises and the transmission line would cross the Lesser Caucasus Mountains, the towers would still be potentially visible over a wider area. However the nature of the landform is expected to result in this pattern of visibility being fragmented, with the ridges truncating sight lines. In addition vegetation, particularly the extensive woodland cover, would have considerable influence over actual visibility of the towers, including from locations within the Borjomi-Kharagauli National Park. The Sairme line to the south of Shoka (KM74), together with the Tao line, cross an open and undulating agricultural landscape and would be visible elements in the landscape. This visibility would be greatest on the higher ground, while views from the valleys would be more limited. The extension the Akhaltsikhe Substation would be positioned on the ridge above Zikilia and Tsinubani. There would be relatively distant views from surrounding high ground, but potential visibility from the settled valleys would be more limited by intervening landform. However, the proposed extension would be relatively small in the context of the existing substation. Landscape Impacts The analysis of the baseline has identified important potential sensitivities. A large proportion of the proposed Sairme transmission line crosses an undeveloped, upland landscape, parts of which are wooded. While no part of the landscape crossed by the Sairme or Tao line or associated with the substation site is designated specifically for its landscape character, the Borjomi-Kharagauli National Park lies 2.3km at its nearest point to the east and north of the Sairme line. The likely sensitivity of the landscape to the Project is variable. The landscapes associated to the north and south of the high mountain ridge are likely to be of medium/low to low sensitivity and landscape associated with the central part of the route likely to be of medium/high sensitivity. Both the construction and operational phases would result in changes to the landscape along the length of the two transmission lines and at Akhaltsikhe Substation. The Project would introduce a number of

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Georgian State Electrosystem (GSE) Environmental and Social Impact Assessment SLR Ref No:901.12.1 Volume 5 Physical Environment, Document 5.2 Project Component Assessments June 2020 industrial/utilitarian structures to the landscape and result in the construction of tracks, temporary compounds and the clearance of vegetation. However, it is anticipated that access to the Tao line will generally be via exiting access tracks to the Meskheti line. Potential impacts on specific landscape receptors during the construction phase would arise due to the loss of landscape features/elements. This would comprise changes to the landscape resulting from construction activities as well as the presence of construction equipment. For the transmission line, this would comprise vegetation clearance at tower locations and along the route of the overhead conductors to accommodate transmission line clearances, depending on the height of nearby trees (see Section 3 Volume 2 Project Definition). Vegetation clearance may also be necessary to enable access for construction equipment. In addition, it is estimated that eight residential structures (four of which are abandoned or uninhabited) would need to be demolished along the length of the overhead lines. Installation of the transmission lines would have a relatively limited geographical extent and influence and would be short-term in nature (lasting less than 16 months and 12.5 months for the Sairme and Tao lines respectively) within the construction period; however, the clearance corridor would remain for the life of the Project. The impacts of Component A on the landscape would vary. At the northern end of the Sairme line the landscape is already strongly influenced by human activities. This gives rise to a settled and, in places, urban fringe landscape. The landscape to the south of the high mountain ridge is also influenced by human activity, evident in the large scale, open agricultural landscape. Within these areas, the potential impacts of the transmission lines and substation extension on the landscape are likely to be moderate or moderate/minor, and not significant. However, the central part of the Sairme line crosses an undeveloped upland landscape, and the introduction of the transmission line would contrast with this, and is likely to result in a high or high/moderate and significant impact. However, it is unlikely that a significant impact would occur in relation to the landscape within Borjomi-Kharagauli National Park. This is due to the combination of the separation distance and the influence that woodland cover is likely to have on intervisibility. Visual Impacts The proposed transmission lines and (to a much lesser extent) the substation extension would also have potential impacts on visual receptors. The greatest potential for visual impacts is at the northern and southern ends of the Sairme line and Tao line respectively. This corresponds with the settlement pattern and, therefore, where the greatest concentrations of people are found. In these areas the baseline context, including existing structures would reduce the relative change, but there is potential for significant impacts to occur, especially for local residents. Where the Sairme line would cross the undeveloped, upland landscape there are very few visual receptors. This is a scenic, remote and tranquil landscape. There is no notable settlement pattern and there is limited human activity, with the exception of isolated and seasonal herder’s huts. Where people do experience the changes resulting from the Project in this upland landscape these have the potential to be significant due to the contrast with the baseline. For receptors such as people visiting the Borjomi-Kharagauli National Park, the separation distance and limited visibility due to a combination of landform and vegetation is likely to restrict or prevent potential visual impacts on visitors.

1.1.3 Component A Mitigation Landscape and visual considerations were an integral part of the evaluation of alternatives and also route selection. This is discussed in more detail in the alternatives assessment in Section 2 of Project Definition (Volume 2). This process considered the qualities and characteristics of the landscape along different potential routes, together with potential impacts on visual amenity and cumulative effects with existing overhead lines. A range of mitigation measures could be implemented in relation to the proposed transmission lines and substation extension. Some of these are specific to or more relevant to landscape or visual impacts. However, on the whole measures that assist the integration of the structures and restoration of disturbed areas will help

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Georgian State Electrosystem (GSE) Environmental and Social Impact Assessment SLR Ref No:901.12.1 Volume 5 Physical Environment, Document 5.2 Project Component Assessments June 2020 to reduce both landscape and visual impacts. Section 2.5 of Document 5.1 sets out the mitigating measures that are applicable on a project-wide basis. Component specific mitigation is described below. The design status of the Project means that further specific mitigation may become apparent as the design is finalised. Overhead lines Should the alignment be refined prior to construction, consideration should be given to ensure that the distance between the transmission line and Borjomi-Kharagauli National Park is not reduced. This is to ensure that the transmission line does not result in a greater impact on this designated landscape and the people visiting it. Special precautions are also necessary for the section of the Sairme line that passes through the remotest area of the route, KM55 to KM59. As set out with the Biodiversity Project Component Assessment (Document 3.2), construction activities should be restricted in this section to minimise the footprint of the Project in this remote and natural environment. All other sections of the route have been impacted by human intervention. Measures here would include restricting the construction of access tracks, borrow pits, construction compounds, workers’ accommodation camps and any other activity which would result in the removal of vegetation and soils. Mitigation requirement − [L&V-9] During detailed design, the distance between the Sairme line and the Borjomi-Kharagauli National Park should not be reduced. − [L&V-10] Construction works through the central part of the Sairme line (KM55-KM59) should not include the construction of access tracks, borrow pits, or construction compounds. This landscape should be protected as much as possible by using low impact methods of construction which are limited to tower locations only. Substation extension There are no site-specific mitigation measures proposed for the Akhaltsikhe Substation Extension. The site is not located in a sensitive landscape and there are no views to nearby residential areas that would warrant screening i.e., landscape planting.

1.1.4 Component A Cumulative Assessment Associated Facility - Tskaltubo Substation The potential combined impacts with Tskaltubo Substation would be localised, affecting landscape and visual receptors to the west of Kutaisi. The relatively limited scale and extent of the substation will limit these impacts. The impacts associated with both the Sairme line and Tskaltubo Substation would be associated with an area that is already influenced by other urbanising features and elements, which would limit the extent of additional change and impact. This project has been the subject to an ESIA study1 in accordance with the World Bank Environmental and Social framework. Additionally, as the developer is GSE, and as there is an ESMP in place, GSE is able to align mitigation approaches between the projects in order to minimise effects where practically possible. No significant effects are predicted to occur and no specific additional mitigation need has been identified as a result of the combined impact of these projects.

______1 http://documents.worldbank.org/curated/en/936691555995020541/pdf/Environmental-Impact- Assessment.pdf

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− [L&V-11] GSE to ensure co-ordination between construction contractors on Component A, Component C2 and the Tsalktubo – Jvari Transmission line, including Tskaltubo substation, on implementation of mitigation for the reinstatement of construction areas

Cumulative development - Tskaltubo to Jvari 500kV transmission line The Jvari-Tskaltubo 500kV transmission line is routed in a different direction to the proposed Sairme transmission line (and Component C2 lines), and this transmission line has been the subject of a similar alternatives and routing assessment to this Project. The key area where cumulative landscape and visual impacts are most likely to occur is between Maghlaki and Ternali. Existing urbanising influences are likely to limit potential impacts, although combined the two projects will adversely affect the landscape to the west of Kutaisi and views seen by local residents and road users. As the two projects are routed in different directions from Tskaltubo Substation the extent of these potential adverse cumulative impacts would be limited. No specific additional mitigation need has been identified as a result of the combined impact of these projects. Akhaltsikhe to Batumi 220kV transmission line The Akhaltsikhe to Batumi line has been constructed during the course of the assessment. There is the potential for cumulative impacts resulting from the Tao line in combination with the 220kV Akhaltsikhe-Batumi transmission line. The northern part of the Tao line (up to KM25) would be routed parallel with the Akhaltsikhe-Batumi transmission line. Combined, these transmission lines would result in greater physical disturbance to the landscape, albeit in a concentrated area which is good practice for transmission line routing compared to spreading the impact out wide across the landscape. The transmission lines would be routed through an open agricultural landscape, with limited urbanising features or elements, where the changes to the landscape and visual amenity would be apparent and therefore, the impacts would be considered significant. However, where the Tao and Akhaltsikhe-Batumi transmission lines diverge (KM25), the potential for cumulative effects would quickly diminish as the lines separate. No specific additional mitigation need has been identified as a result of the combined impact of these projects.

1.1.5 Component A Transboundary Impacts The Tao line would end at the border between Georgia and Turkey. Initial appraisal work has reviewed potential route options between the border and Tortum within Turkey. The potential route options cross land used for agriculture as well as relatively elevated/mountainous terrain. Some of these landscapes, particularly those that are more mountainous have scenic qualities and the presence of a new overhead line would adversely affect landscape character, particularly where it would contrast with undeveloped, more remote characteristics. The settlement pattern is relatively limited, however, potential routes are likely to pass near towns and villages, from which the overhead line is likely to be visible. The overhead line is also likely to be visible from the road network in this part of Turkey. Significant landscape and visual impacts are likely to occur in relation to this overhead line. However, the nature and level of these impacts would depend on the route that is selected. − [L&V-12] GSE shall liaise with TEAS regarding the routing of the transmission lines to share approaches on routing of the line and the design principles adopted for the Project.

1.1.6 Component A Summary of Impacts and Mitigation Commitments The table below provides a summary of the landscape and visual impacts of Component A.

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Impact Producing Phases Assessment of significance without mitigation or Commitments Management Action factor compensation where the mitigation or Key Mitigation, Compensation or

compensation measure is

High Hi Moderate M Low Lo Management measures addressed in the ESMP

[+] positive, [-] negative impacts

Likelihood, Magnitude, Extent, Duration

Operation

Predictedresidual Construction

Landscape fabric

Vegetation ✓ ✓ M [-] Permanent [L&V--10] Construction works M ESMP Document 8.1 loss/removal Sections 5.3.10 Vegetation loss would occur along the route through the central part of the of the overhead line, access tracks, at the Sairme line (KM55-KM59) should not ESMP Document 8.2, substation extension and construction include the construction of access sections 3.2.1, 4.2.1 compounds. Clearance would be repeated tracks, borrow pits, or construction ESMP Document 8.3, during the operational phase. compounds. This landscape should sections 3.2.1, 3.3.1, 3.6.1, be protected as much as possible by 3.7.1 using low impact methods of construction which are limited to tower locations only. [L&V-11] GSE to ensure co- ordination between construction contractors on Component A, Component C2 and the Tsalktubo – Jvari Transmission line, including Tskaltubo substation, on implementation of mitigation for the reinstatement of construction areas

Landscape character

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Presence of ✓ ✓ Hi [-] Permanent [L&V-9] During detailed design, the Hi ESMP Document 8.1 transmission distance between the Sairme line and Sections 5.3.10, 5.3.6 Permanent change to landscape character. lines/substation the Borjomi-Kharagauli National Park Impact will be greatest in undeveloped, more ESMP Document 8.2, extension and should not be reduced. remote areas. sections 3.2.1, 4.2.1 access tracks [L&V-10] Construction works through ESMP Document 8.3, the central part of the Sairme line sections 3.2.1, 3.3.1, 3.6.1, (KM55-KM59) should not include the 3.7.1 construction of access tracks, borrow pits, or construction compounds. This landscape should be protected as much as possible by using low impact methods of construction which are limited to tower locations only. [L&V-12] GSE shall liaise with TEAS regarding the routing of the transmission lines to share approaches on routing of the line and the design principles adopted for the Project.

Visual amenity

Changes in view ✓ ✓ Hi [-] Permanent [L&V-9] During detailed design, the Hi ESMP Document 8.1 for residents distance between the Sairme line and Sections 5.3.10, 5.3.6 Permanent change to views seen by local the Borjomi-Kharagauli National Park residents. The level of effect will vary based ESMP Document 8.2, should not be reduced. on the relationship between a specific local section 3.2.1, 4.2.1 and the Component. [L&V-10] Construction works through ESMP Document 8.3, the central part of the Sairme line sections 3.2.1, 3.3.1, 3.6.1, Changes in views ✓ ✓ M [-] Permanent (KM55-KM59) should not include the M for road users 3.7.1 Permanent change to views seen by road construction of access tracks, borrow users. The lower sensitivity of the receptor pits, or construction compounds. This would reduce the likely level of effect. landscape should be protected as much as possible by using low impact methods Changes in views ✓ ✓ Hi [-] Permanent of construction which are limited to M for people tower locations only. Permanent change to views seen by people engaged in Final – Disclosure Authorized Page 8

Georgian State Electrosystem (GSE) Environmental and Social Impact Assessment SLR Ref No:901.12.1 Volume 5 Physical Environment, Document 5.2 Project Component Assessments June 2020 recreation engaged in outdoor recreation. Assessment is moderate due to the relatively limited presence of recreational uses focussed on the appreciation of the landscape.

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1.2 Component B - Ozurgeti to Zoti HPP and Connection from Ozurgeti to the Paliastomi Line

1.2.1 Component B Baseline Landscape Component B crosses two key landscape types, the settled agricultural landscape to the south of Ozurgeti and the elevated landscape that comprises part of the Adjara Imereti ridge. The Paliastomi loop and Ozurgeti Substation would be located within the settled agricultural landscape. This is a relatively low lying landscape, at approximately 100m ASL. The land is primarily used for pasture and growing arable crops. The River Bzhuzha, a tributary of the River Gubazeuli, extends to the south of Ozurgeti. Low density residential development roughly follows the courses of these rivers comprising the settlements of Likhauri, Kyachalati, Zemo Makvaneti and Gogieti. The proposed Ozurgeti Substation lies to the west of Sajavakho-Chokhatauri-Ozurgeti-Kobuleti road. The site comprises undeveloped agricultural land. The Paliastomi loop also crosses undeveloped agricultural land, terminating to the west of a river south of Naruja. To the east of Likhauri (KM5) and Kvachalati (KM3), the Guria line would initially cross an elevated and partly wooded landscape (up to KM18). This landscape is predominately unsettled, giving rise to a sense of wildness and remoteness. The landform is mountainous, forming part of the Lesser Caucasus Mountains and Adjara Imereti ridge, rising to over 2,000m ASL. Beyond KM18 near to Gomismta, the landscape becomes more open, comprising an upland grassland landscape with occasional wooded slopes in the vicinity of Bakhmaro. At KM33 woodland cover becomes more prevalent, before, at the eastern end, the route drops into the valley to the west of Zoti. Whilst the eastern end of the proposed Guria line is routed across the unsettled, wooded valley sides, the valley floors include the settlements of Chkhakoura, Kvabagha and Zoti, together with associated small scale agricultural land uses. The Cultural Heritage section of Volume 4 Social, identifies that no sites of cultural heritage interest have been identified within the 500m buffer zone defined for the proposed development. The landscape is not recognised for its value by any form of character based designation. The settled, agricultural landscape in which the western parts of Project Component B would be located is of relatively limited value and susceptibility. This is a result of the human influences on the landscape and limited scenic quality. However, the combination of valleys, wooded upland landscape and upland grassland landscape through which the majority of the Guria line would be routed does gives rise to a scenic landscape, with a sense of wildness and remoteness, resulting in higher value and susceptibility to the Project. Overall, it is considered that the landscape to the south of Ozurgeti (between KM0 and KM5 and the Paliastomi line) is likely to be of medium/low sensitivity, while the landscape between Likhauri (KM5) and Zoti (KM46) is likely to be of medium/high sensitivity. Visual Photographs that illustrate aspects of the baseline context for the route of Component B are included in Appendix A. There is a relatively high concentration of settlement pattern at the western end of Project Component B, around the southern fringes of Ozurgeti. As well as Ozurgeti itself, the closest settlements at the western end of Project Component B include Kvachalati (KM3), Likhauri (south of KM5), Zemo Makvaneti (north of KM5), and Gogieti (north of KM6). To the east of Likhauri (KM5) the landform and forestry land cover influences settlement pattern, with the rising ground quickly reducing the density of development. The next settlement to be passed is Gomismta which is located to the south of the line between KM18 to KM21. Towards the eastern end of the Guria line

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Georgian State Electrosystem (GSE) Environmental and Social Impact Assessment SLR Ref No:901.12.1 Volume 5 Physical Environment, Document 5.2 Project Component Assessments June 2020 route are settlements within the valleys, including Bakhmaro and some small outlying settlements between KM32 and KM40, Chkhakoura (west of KM44), Kvabgha (north of KM46) and Zoti (east of KM46). The road network pattern generally matches that associated with settlements. There is a concentration of road infrastructure at the western end of Project Component B, i.e. between KM0 to KM4 of the Guria line, with roads extending from the southern edge of Ozurgeti towards surrounding settlements. The two larger routes that would be crossed by the Guria line are the Sajavakho-Chokhatauri-Ozurgeti-Kobuleti (KM0) and Ozurgeti-Shemokmedi-Gomismta roads (KM12). There are few routes between Gomismta (KM18) and to the east of Bakhmaro (KM32), though there are some remote access tracks that connect Gomismta and Bakhmaro. The proposed Guria line crosses the Chokhatauri-Bakhmaro road that provides access to Bakhmaro to the east of the settlement (KM39). The Guria line would terminate at the Zoti HPP Powerhouse, close to the road between Kvabgha and Zoti (KM46). The uplands that the proposed Guria line crosses between Likhauri and Zoti comprise a scenic landscape with wild qualities. However, it appears that the use of this land for recreation is generally limited. The exception to this is at Bakhmaro, which forms a popular tourist destination during the summer months. Key visual receptors within the Study Area comprise the residents of settlements and dispersed properties, together with people using the local transport infrastructure (include road networks) and people engaged in outdoor recreation around Bakhmaro. For the purpose of this assessment, residents and people engaged in outdoor recreation are likely to be of high or medium/high sensitivity, and users of transport infrastructure of medium/low to low sensitivity to the Project.

1.2.2 Component B Impact Assessment Potential visibility The proposed Paliastomi loop and Guria line would be clearly visible new elements. The Paliastomi loop would use towers that are typically approximately 50m tall and the Guria line would use towers that are typically approximately 37m tall. The Paliastomi loop, together with the western end of the transmission line between Ozurgeti and Zoti (up to the ridge between Likhauri and Gogieti, i.e. KM0 to KM5) cross a landscape that is relatively flat, open and low lying. Vegetation and buildings would provide some restrictions to views. However, it is expected that the transmission lines would be visible elements in this agricultural and urban fringe landscape. To the west of the ridge between Likhauri and Gogieti (beyond KM5) the landform rises and the Guria line would cross part of the Lesser Caucasus Mountains. The towers would be potentially visible over a wide area. However, the nature of the landform in the mountainous landscape is expected to result in this pattern of visibility being fragmented, with the ridges truncating sight lines. The extensive woodland cover would have considerable influence over actual visibility of the towers in places. However, where the Guria line crosses the upland grasslands the landscape is more open and as consequence visibility would be greater. Within the Gubazeuli river valley, near Zoti, the landform would contain potential visibility, although there would be views from both the valley sides and along the base of the valley. The proposed Ozurgeti Substation would be positioned in the relatively flat agricultural landscape referred to above. The transformers within the substation would be approximately 5m tall and the terminal towers approximately 37m tall. While it would be a new element, the vertical scale of the substation is likely to mean it is only particularly visible from the immediate surroundings. Landscape Impacts The analysis of the baseline has identified important potential sensitivities. A large proportion of the proposed Guria line crosses an undeveloped, upland landscape, parts of which are wooded. No part of the landscape crossed by the proposed transmission lines or associated with the substation site is designated specifically for its landscape character. The likely sensitivity of the landscape to the Project is variable. The landscape

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Georgian State Electrosystem (GSE) Environmental and Social Impact Assessment SLR Ref No:901.12.1 Volume 5 Physical Environment, Document 5.2 Project Component Assessments June 2020 associated with the western parts of Project Component B is likely to be of medium/low sensitivity and landscape associated with the eastern part of the route likely to be of medium/high sensitivity. Both the construction and operational phases would result in changes to the landscape along the length of Paliastomi loop, the Guria line and at Ozurgeti Substation. It would introduce a number of industrial/utilitarian structures to the landscape and result in the construction of tracks, temporary compounds and the clearance of vegetation. Potential impacts on specific landscape receptors during the construction phase would arise due to the loss of landscape features/elements. This would comprise changes to the landscape resulting from construction activities as well as the presence of construction equipment. For the two transmission lines, this would comprise vegetation clearance at tower locations and along the transmission line to accommodate the right of way. Vegetation clearance would be much greater for the Guria line due to wooded sections along parts of the line. In contrast, between Gomismta (KM18) and Bakhmaro (KM32), the line would largely cross grassland, with less vegetation clearance as a consequence. The Paliastomi loop crosses agricultural land meaning tree cover and, therefore, vegetation clearance requirements, would be much less. Vegetation clearance may also be necessary to enable access for construction equipment. Installation of the transmission lines would have a relatively limited geographical extent and influence and would be short-term in nature (lasting less than 12 months) within the construction period, however, the clearance corridor would remain for the life of the Project. The impacts of Project Component B on the landscape would vary. The landscape crossed by the Paliastomi loop and western end of the Guria line (KM0 to KM5) is already influenced by human activities. This gives rise to a settled and, in places, urban fringe landscape. Within this area the potential impacts of the transmission lines and substation on the landscape is likely to be moderate or moderate/low, and is unlikely to be significant. However, much of the Guria line crosses an undeveloped upland landscape, and the introduction of the transmission line would contrast with this, and is likely to result in a high or high/moderate and significant impact. Visual Impacts The proposed transmission lines and substation would also have potential impacts on visual receptors. The greatest potential for visual impacts is generally associated with the Paliastomi loop, the substation and at the western end of the Guria line (up to approximately KM7 to KM8 south of Gogieti). This corresponds with the settlement pattern, and, therefore, where the greatest concentrations of people are found. In these areas the baseline context, including existing structure would reduce the relative change, but there is potential for significant impacts to occur, especially for local residents. Where the Guria line would cross the undeveloped, upland landscape there are relatively few visual receptors. However, the Guria line would be routed within 500m of Gomismta and in close proximity (within 50m) to some outlying houses near to Bakhmaro. This is a scenic, remote and tranquil landscape. However, where people do experience the changes resulting from the Project in this upland landscape these have the potential to be significant due to the contrast with the baseline. At Bakhmaro, which is used as a summer tourist destination, the Guria line has been routed near the ridge above the settlement and has the potential to comprise a prominent feature in the landscape. However the overhead line has been routed away from the edge of the settlement, where the intervening landform and vegetation is likely to limit potential visibility.

1.2.3 Component B Mitigation A range of mitigation measures could be implemented in relation to the proposed transmission lines and Ozurgeti Substation. Some of these are specific to or more relevant to landscape or visual impacts. However, on the whole measures that assist the integration of the structures and restoration of disturbed areas will help to reduce both landscape and visual impacts. Section 2.5 of Document 5.1 sets out the mitigating measures

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Georgian State Electrosystem (GSE) Environmental and Social Impact Assessment SLR Ref No:901.12.1 Volume 5 Physical Environment, Document 5.2 Project Component Assessments June 2020 that are applicable on a project-wide basis. Component specific mitigation is described below. The design status of the Project means that further specific mitigation may become apparent as the design is finalised Overhead lines Should the alignment be refined prior to construction consideration should be given to maintaining the distance between the Guria line and Bakhmaro to ensure that the local landform and woodland cover could be used to maximise the screening of the transmission line. Mitigation requirement [L&V-13] During detailed design, should the alignment of the Guria line alter in the vicinity of Bakhmaro this should be evaluated carefully to ensure the local landform and woodland cover are used to maximise the screening of the transmission line. Substation There are no site-specific mitigation measures proposed for Ozurgeti Substation. Given its location and setting and the lack of residential areas around the substation, there is no need for screening or specific landscape planting other than reinstatement of any planting removed from its perimeter. Site reinstatement is covered in the Project-wide mitigation (Physical Environment, Document 5.1).

1.2.4 Component B Cumulative Assessment Associated Facility – Zoti HPP The presence of the Guria line together with Zoti HPP would result in a greater degree of infrastructure development in the valley with associated vegetation clearance. Whilst the impact of the Guria line on landscape and view is considered to be significant the potential combined impacts with Zoti HPP would primarily occur only in relation to the powerhouse. There are residential properties within the landscape surrounding the powerhouse and people living in these properties may experience increased visual impacts as a result of both developments. The landscape and visual impacts of the Zoti HPP project will be limited to the footprint of the project which comprises the dams and weirs and powerhouse. Other landscape impacts could be any stockpiles of excavated material. According to the EIA2 prepared for this project, the Zoti project will have some localised visual impacts on local communities. The EIA also concludes, and corresponds to the findings of this study, that the landscape within the river valley is not considered to be sensitive and on that basis no significant landscape effects are expected due to the Zoti HPP project. The Zoti project does acknowledge that the most significant impact will be during construction and to mitigate this, there will be a programme of reinstatement and tree planting to minimise effects. GSE should liaise and work with the developer of the Zoti HPP so that the reinstatement works can be co-ordinated and implemented. − [L&V-14] GSE shall co-ordinate and liaise with the developer of the Zoti HPP project regarding the reinstatement works and replanting requirements of construction areas used by the Zoti HPP project and the Guria line. Associated facility - 110kV Anaseuli/Kobuleti line loop-in/loop-out This is a short section of Enegro-pro transmission line which passes next to the newly proposed Ozurgeti substation. The short loop-in / loop-out will have a very small footprint and whilst it will add further transmission lines to the landscape, it is a modified landscape with capacity for transmission lines. Whilst there is a cumulative effect it is not considered to be significant. ______2 https://www.grpc.ge/media/1004029/2019/06/11/2cb3f0611065a5f41b251c2bf7ced147.pdf

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Associated facility - 110kV Chakhvi /Batumi 1 line loop-in/loop-out The same conclusion can be drawn for the Anaseuli to Kobuleti line loop-in / loop out as set out for the Anaseuli to Kobuleti line. In combination with the Ozurgeti substation and the Anaseuli to Kobuleti line and with the Guria line and Paliastomi loop, there will be significant change to the landscape. As described previously, the landscape surrounding the Ozurgeti substation is undeveloped agricultural land with few properties. It is not a particularly sensitive landscape and whilst the Project would result in some significant impacts to a limited number of properties, its position minimises the visual impacts on the wider community of Ozurgeti and surrounding areas.

1.2.5 Component B Summary of Impacts and Mitigation Commitments The table provides a summary of the landscape and visual impacts of Component B.

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Impact Assessment of significance without mitigation or Commitments Management Action where

Producing compensation the mitigation or

Key Mitigation, Compensation or

factor compensation measure is residual

High Hi Moderate M Low Lo Management measures addressed in the ESMP

[+] positive, [-] negative impacts

Operation Construction

Likelihood, Magnitude, Extent, Duration Predicted

Landscape fabric

Vegetation ✓ ✓ M [-] Permanent [L&V-14] GSE shall co-ordinate and liaise M ESMP Document 8.1 loss/removal with the developer of the Zoti HPP Section 5.3.10 Vegetation loss would occur along the route project regarding the reinstatement of the overhead line, access tracks, at the ESMP Document 8.2, works and replanting requirements of substation extension and construction section 3.2.1 construction areas used by the Zoti HPP compounds. Clearance would be repeated project and the Guria line. ESMP Document 8.3, during the operational phase. sections 3.2.1, 3.3.1, 3.6.1,

3.7.1

Visual amenity

Changes in view ✓ ✓ Hi [-] Permanent [L&V-13] During detailed design, should Hi ESMP Document 8.1 for residents the alignment of the Guria line alter in Section 5.3.10, 5.3.6 Permanent change to views seen by local the vicinity of Bakhmaro this should be residents. The level of effect will vary based ESMP Document 8.2, evaluated carefully to ensure the local on the relationship between a specific local section 3.2.1, 4.3.1 landform and woodland cover are used and the Component. to maximise the screening of the ESMP Document 8.3, Changes in views ✓ ✓ M [-] Permanent transmission line M sections 3.2.1, 3.3.1, 3.6.1, for road users 3.7.1 Permanent change to views seen by road users. The lower sensitivity of the receptor would reduce the likely level of effect.

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Impact Assessment of significance without mitigation or Commitments Management Action where

Producing compensation the mitigation or

Key Mitigation, Compensation or

factor compensation measure is residual

High Hi Moderate M Low Lo Management measures addressed in the ESMP

[+] positive, [-] negative impacts

Operation Construction

Likelihood, Magnitude, Extent, Duration Predicted

presence of recreational uses focussed on the appreciation of the landscape.

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1.3 Component C1 –Nenskra to Mestia

1.3.1 Component C1 Baseline Landscape The Nenskra Substation, together with the western end of Mestia line (KM0 to KM8) and the Kavkasioni loop would be located within or routed through the Nenskra Valley. The substation would be located on undeveloped land within the base of the valley, close to the river. The Kavkasioni loop extends approximately 480m on west side of the Nenskra Valley to the south of the proposed Nenskra Substation. It crosses the settled, lower valley and western slope, terminating where it meets the existing transmission infrastructure. The Nenskra HPP underground cable line would follow the eastern side of the Nenskra valley for approximately 1km before connecting to the Nenskra powerhouse. The Mestia line would also be routed along the eastern side of the valley, gradually climbing the steep terrain before heading east between North Kirari and South Kirari mountains (KM14 to KM19) and then descending towards the Nakra Valley. The route climbs the eastern site of the Nakra Valley then crosses the lower mountain slopes to the north of the Enguri Valley, crossing the multiple side valleys and tributaries that flow towards the River Enguri. The route drops into the Enguri Valley near Shkaleri (KM49) and then follows the Mestiachala Valley to Ushguli (KM57). The Mestia line would cross a mountainous and valley landform, with the highest section being the col (elevation 2700m ASL (KM18)) between North Kirari and South Kirari mountains (3156m ASL and 3226m ASL respectively) in the Nakra Pass. Much of the transmission line would cross elevated terrain, which is also frequently wooded. The land surrounding the proposed transmission line is rugged and mountainous in all directions. The rivers are central and defining elements of the landscape. The valley floors are the focus for human activity, with settlements and infrastructure typically found at these lower elevations. The sides of Nenskra and Enguri valleys (and associated tributaries) are typically wooded, predominately comprising a mix of broad- leaved trees. The lower valley slopes are cultivated close to settlements and used for agriculture. Land uses comprise pasture for cattle and growing crops, including vegetables and fruits. The Enguri valley is predominately rural and overall the settlement pattern is generally limited. There are several towns and villages within the valley (with more detail provided below in relation to potential visual receptors). The nature of the landform means the settlement pattern is concentrated within the valleys, both the main valleys and the adjoining minor valleys. There are numerous cultural heritage assets within the valleys. While the potential impacts on these are addressed in the Cultural Heritage sections of Document 4.2, Volume 4 Social, they also have relevance to this assessment in relation to the potential value associated with the landscape. Monuments which are deemed to be immovable monuments by the Ministry of Culture and Monument Protection of Georgia include a number of churches, towers and cemeteries. The settlements of Kvemo Marghi (KM4), Svipi (KM41), Sidianari (KM48) and Mestia (KM53) are noted for sites of cultural heritage and archaeological value. The landscape is not recognised for its value by any form of character based designation. However, this area forms part of the High Caucasus Mountains and the dramatic landforms, valleys, rivers and other water courses, and land cover gives rise to a landscape that has very recognisable scenic qualities and a sense of naturalness. Its predominately rural character contributes to a tranquil landscape, although this is also influenced by human activity and infrastructure in the valleys. In addition, there are a number of structures and locations within the Study Area that are recognised for their cultural heritage value. While this does not translate directly into landscape value, it is a potential influencing factor in people’s appreciation of it and can also attract visitors. Overall, it is considered that the landscape in the area in which Nenskra Substation and Mestia line, and in particular the Nakra Pass between KM15 and KM20, would be located is likely to be of high value, high susceptibility and high sensitivity, despite the absence of any formal designation.

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Visual Photographs that illustrate aspects of the baseline context for the route of Component C1 are included in Appendix A. Overall the settlement pattern in the vicinity of the proposed Mestia line, Nenskra HPP line, Kavkasioni loop and Nenskra Substation is limited, although this is concentrated in the bases of the valleys. Settlements within the Nenskra valley, in the vicinity of Nenskra Substation, Nenskra HPP line, the Kavkasioni loop and the western end of the Mestia line, include Lukhi (to the south), Lakhami (KM0/KM1), Kvemo Marghi (KM4), Letsperi (Km5), Zemo Marghi (KM6), Kari (KM7) and Sgurishi (KM8). After the Mestia line heads in an easterly direction, it crosses the foothills of the High Caucasus Mountains, a more remote area. It crosses the settled Nakra Valley and further east, several settlements lie in the foothills of the mountains and in the vicinity of the proposed transmission line, including Tsaleri (KM30), Hamashi-Totoleshi (KM32), Paledi (KM33), Khosrari (KM34) and Svipi (KM41). In addition there are several settlements within the Enguri Valley to the south, such as Tsalanari (KM38) and Zeda Luha (KM36). The Mestia line would cross the valley containing Iskari (KM38), then near Ugvali (KM39) and Hedudi (KM41) before crossing the valley containing Ushkhvanari (KM43). Near Leshguani (KM46), the Mestia line would descend into the Enguri Valley and then follow the Mestiachala Valley, passing near Sidianari (KM47), Shkaleri (KM48), Lenashi (KM48), Pechuari (KM48), Mestia (KM53) and Ushguli (KM57). The road network pattern follows the valley landforms, with the road to Nenskra and on to Tita routed through the lower part of the Nenskra Valley. The Zugdidi-Jvari-Mestia-Lasdii road follows the Enguri Valley. There are several more minor roads that connect with these routes, providing access to surrounding settlements. The uplands that the proposed Mestia line crosses along its entire route comprise a scenic landscape with wild qualities. These are widely used for recreation, with many opportunities for walking, and climbing throughout the mountains and foothills. Features within the landscape with potential to draw people, including tourists, include Becho Waterfalls, Koruldi Lakes, and Chalaadi Glacier. There is also a ski resort to the south of Mestia (KM53), with lifts and a mountain-top restaurant. Plans also exist for a trekking route from Mestia that follows the Enguri Valley south, passing through the lower slopes of the Caucus Mountains near to the route of the Mestia line. Some of these areas are reflected by an area which has been identified as a Tourism Development Area. Key visual receptors within the Study Area comprise the residents of settlements and dispersed properties, together with people using the local transport infrastructure (include road networks) and people engaged in outdoor recreation. For the purpose of this assessment, residents and people engaged in outdoor recreation are considered to be of high or high/medium sensitivity, and users of transport infrastructure of medium sensitivity to the proposed development.

1.3.2 Component C1 Impact Assessment Potential visibility The proposed Mestia line, the Kavkasioni loop and Nenskra Substation would be visible new elements in the landscape. However, the towers associated with the 110KV transmission line are typically 37m tall, which would limit their prominence in this large scale landscape. The substation will be positioned in the valley floor, where a combination of the landform and vegetation would limit potential visibility, and again the relative scale of the local landscape would limit the relative prominence of these structures. The Nenskra HPP underground cable line would be a buried cable and would, therefore, not be a visible element in the landscape. The Mestia line would cross the High Caucasus Mountains, following an elevated route on the side of the Nenskra Valley and then to the north of the Enguri Valley. The route that would be taken by the transmission line through this mountainous landform means it would be potentially visible over a wide area. However the nature of the landform is expected to result in this pattern of visibility being increasingly fragmented as the intervening distance increases, with ridges truncating sight lines. In addition, vegetation, particularly the

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Georgian State Electrosystem (GSE) Environmental and Social Impact Assessment SLR Ref No:901.12.1 Volume 5 Physical Environment, Document 5.2 Project Component Assessments June 2020 extensive woodland cover, would have considerable influence over the actual visibility of the towers. Routing the transmission line over the elevated ground is also likely to reduce potential visibility from the settled valley floors, with a combination of the landform and vegetation expected to limit views. The eastern part of the Mestia line (from KM46 to KM58) will be more visible from the settled parts of the landscape as it is routed at much lower elevations and also crosses or is routed near the bottom of the valleys. The Kavkasioni loop would be located on the western lower valley slopes to the south of a small settlement. The landform and vegetation within the valley would constrain visibility, but there would be views up and down the valley and from its slopes.

Landscape Impacts The analysis of the baseline has identified important potential sensitivities. All elements of this Project Component are located in the High Caucasus Mountains and a large proportion of the proposed Mestia line crosses an undeveloped, upland landscape, much of which is wooded. No part of the landscape crossed by the transmission line or associated with the substation site is designated specifically for its landscape character. However, the likely sensitivity of the landscape to the Project is high, especially in the Nakra Pass between KM15 and KM20, due to the characteristics of the baseline mountainous landscape. Both the construction and operational phases would result in changes to the landscape along the length of the Mestia line and the Kavkasioni loop and at Nenskra Substation. It would introduce a number of industrial/utilitarian structures to the landscape and result in the construction of tracks, temporary compounds and the clearance of vegetation. The proposed section of underground cable from Nenskra Substation to the Nenskra HPP Powerhouse would also require some limited vegetation clearance along its length. The installation of the underground cable would have a relatively limited geographical extent and influence and would be short-term in nature within the construction period. However, once installed, vegetation (other than trees or tall shrubs) would be allowed to regrow along the cleared route. The landscape effects of the Nenskra HPP underground cable line are, therefore, not considered to be significant. Potential impacts on specific landscape receptors during the construction phase would arise due to the loss of landscape features/elements. This would comprise changes to the landscape resulting from construction activities as well as the presence of construction equipment. For the transmission line, this would comprise vegetation clearance along the right of way in accordance with the distances out lined in Section 3 of Volume 2 Project Definition. Vegetation clearance may also be necessary to enable access for construction equipment. Installation of the transmission line would have a relatively limited geographical extent and influence and would be short-term (lasting less than a year) and transitory in nature, within the construction period, however, the clearance corridor would remain for the life of the Project. Parts of the 110kV transmission line cross an undeveloped upland landscape, and the introduction of the Mestia line would contrast with this, and is likely to result in a high/moderate and significant impact. The impact of the Mestia line is more likely to be high/moderate rather than high due to the size of the towers, scale of the baseline landscape and the influence of woodland cover on overall intervisibility. Visual Impacts The proposed Mestia line, the Kavkasioni loop and substation would also have potential impacts on visual receptors. The greatest potential for visual impacts is at the western and eastern ends of the Mestia line and also in the vicinity of the Kavkasioni loop and Nenskra Substation. This corresponds with the settlement pattern, and where the greatest concentrations of people are found closest to the proposed infrastructure. In these areas there is potential for significant impacts to occur, especially for local residents.

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The Nenskra HPP underground cable line would be a buried cable so would have no above ground features and therefore once constructed would have no visual effects. The construction effects of the cable would be short term and limited in spatial extent and would result in few visual effects from nearby properties particularly as vegetation is likely to provide screening of the construction works. As a result it is not considered to result in a significant visual effects during construction subject to soils and vegetation within the cable corridor being restored to enable the corridor to blend in with the surrounding environment. Where the transmission line would cross the undeveloped, upland landscape there is potential for fewer visual receptors. However, this is a scenic, remote and tranquil landscape that is promoted for outdoor activities such as walking, climbing and skiing. Where people do experience the changes resulting from the proposed development in this upland landscape these have the potential to be significant due to the contrast with the baseline.

1.3.3 Component C1 Mitigation A range of mitigation measures could be implemented in relation to the proposed Mestia line, the Kavkasioni loop and Nenskra Substation. Some of these are specific to or more relevant to landscape or visual impacts. However, on the whole measures that assist the integration of the structures and restoration of disturbed areas will help to reduce both landscape and visual impacts. Section 2.5 of Document 5.1 sets out the mitigating measures that are applicable on a project-wide basis. The design status of the Project means that further specific mitigation may become apparent as the design is finalised. The Contractor should provide landscape screening to the Nenskra substation where possible to reduce its visibility in the landscape of the Nenskra valley. This would be undertaken using native species as specified by the Biodiversity Project Component Assessment (Document 8.2). As highlighted in the impact assessment, the landscape of the Nakra Pass between KM15 and KM20 is high quality and visual impacts here to users of this environment would be significant. It is important that for the remote section of the Nakra Pass where there is limited evidence of human impact that construction activities are restricted to limit the visual impacts of the Project. As set out in the Biodiversity Project Component Assessment (Document 3.2), construction activities should be restricted in this section to minimise the foot print of the Project in this remote and natural environment. All other sections of the route have been impacted by human intervention. Measures here must include restricting the construction of access tracks, borrow pits, construction compounds, workers’ accommodation camps and any other activity which would result in the removal of vegetation and soils and which could leave a lasting impact on the landscape. Mitigation requirement − [L&V-15] The Nenskra substation as part of the site reinstatement works of the substation perimeter would be subject to landscape screening of the substation infrastructure to minimise its visual impact within the Nenskra valley. − [L&V-16] Construction works through the Nakra Pass on the Mestia line (KM15-KM20) should not include the construction of access tracks, borrow pits, or construction compounds. This landscape should be protected as much as possible by using low impact methods of construction which are limited to tower locations only. − [L&V-17] Reinstatement of soils and vegetation (In accordance with the planting restrictions above the cable) to restore the cable corridor of the Nenskra HPP line must be undertaken so that the corridor blends into the surrounding environment.

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1.3.4 Component C1 Cumulative Assessment Associated facility – Nenskra HPP The presence of the power line together with the Nenskra HPP development3 would result in a greater degree of infrastructure development in the Nenskra valley with associated vegetation clearance and visible construction works. Nenskra HPP powerhouse and some associated works, including a new haul road and spoil disposal areas, and the western end of the Mestia line (KM0 to KM8), the Kavkasioni line and Nenskra HPP underground cable line are located in the same parts of the Nenskra valley and, therefore, would result in cumulative impacts for landscape and visual receptors. It is recommended that GSE co-ordinates with the Nenskra HPP developer regarding vegetation clearance and reinstatement to minimise impacts on the local landscape. − [L&V-18] GSE shall co-ordinate and liaise with the developer of the Nenskra HPP project regarding the reinstatement works and replanting requirements of construction areas used by the Nenskra HPP project and the C1 transmission lines. However, the main dam structure and reservoir associated with the Nenskra HPP development are located further up the Nenskra valley, separated from the closest part of the Mestia line by approximately 5km. In addition, intervening landform between the Mestia line and the dam of the Nenskra HPP scheme is likely to reduce the extent to which the two developments would be seen in combination. In addition the works in the Nakra valley will comprise the water intake and access road. The water intake will be over 5km north of the route of the proposed Mestia line, again limiting inter-visibility between the two projects. Cumulative development – 500kV Jvari to Nenskra and 110kV Enguri valley to Nenskra valley transmission lines There would be potential landscape and visual impacts resulting from Component C1 in combination with the Jvari to Nenskra line and the new 110kV Nenskra valley transmission lines. As the route of the Jvari to Nenskra line is yet to be defined the nature of these potential cumulative impacts cannot be precisely defined at present, although GSE can ensure this is developed to minimise landscape and visual impacts as far as possible. However, this transmission line in the Nenskra valley combined with the Project and the recently constructed 110kV line would add further physical structures in the landscape, and this would likely result in a significant effect on the Nenskra valley landscape. − [L&V-19] GSE to develop the 500kV Jvari to Nenskra project in accordance with EBRD Performance Requirements or equivalent IFI standards and GIP good international practice

Cumulative developments – Nenskra valley HPP projects – Lakhami and Tita The impacts of the Project are regarded to be significant, which principally visual impacts within the Nenskra valley. These two HPP projects would add further development to the Nenskra valley, albeit on a much more limited scale and in locations with relatively limited spatial overlap. Both projects are unlikely to result in significant landscape and visual effects and the likely cumulative effects combined with Component C1 is not considered to significantly increase the effects of the Project, which are reported in this assessment. Cumulative Developments – Svaneti HPP projects – Nakra, Dolra, Mestiachala, Khudoni The Mestia line has the potential to interact with these projects which are at varying stages of development. For Nakra, the Mestia line passes close by one of the run of river weirs and together the projects would add to

______3 http://nenskra.ge/en/reports/

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Georgian State Electrosystem (GSE) Environmental and Social Impact Assessment SLR Ref No:901.12.1 Volume 5 Physical Environment, Document 5.2 Project Component Assessments June 2020 localised visual impacts. The Dolra project4 is located some distance upstream from the Mestia line and, therefore, could only interact cumulatively where a transmission lines passes or connects into the Mestia line. In a similar way to Nakra, this impact would be limited to the valley floor, where vegetation is more limited and where agriculture and infrastructure, such as roads, are present. Therefore, whilst there is the potential for cumulative effects, the cumulative effect of the Mestia line is not considered to be significantly increased from that presented in the assessments. For Mestiachala HPP, the Mestia line connects into the Kakhari substation which is the same substation that the Mestiachala HPP project connects. This connection to the Kakhari substation is already constructed and the HPP plant is operating. The location of the substation is outside Mestia in a location screened by vegetation and landform and, therefore, cumulative landscape and visual impact of the two projects, at the location of the substation, are not considered to have a significant visual effect. It is also noted that the Mestia line does not pass near any of the other infrastructure associated with the HPP project and does not give rise to any cumulative impacts. The final HPP plant which has been considered in the cumulative assessment is the Khudoni HPP project, which has long been talked about in Georgia but which has not been brought forward for development. Whilst an EIA project was completed in 20135, the project is not understood to be progressing at this time and is unlikely to be constructed at the same time as this Project. Therefore, no construction phase cumulative impacts are expected. There are also no specific details regarding the grid connection and the proposals being put forward by GSE may also in the future influence the grid connection routing, with a possible connection into the Nenskra substation. Such a grid connection would add further transmission lines to the Nenskra valley and the Enguri valley, but the landscape of the two valleys would substantially change in any case because of the reservoir being formed. This would have a far greater change on the landscape than the addition of a new transmission line. In conclusion, if these two projects came forward there would be a substantial change of the local landscape which would be regarded as a significant landscape effect.

1.3.5 Component C1 Summary of Impacts and Mitigation Commitments The table below provides a summary of the landscape and visual impacts of Component C1.

______4 http://hydropower.ge/user_upload/Dolra_1_Pre-Feasibility_Study_Compressed_File.pdf http://hydropower.ge/user_upload/Dolra_2_Pre-Feasibility_Study_Compressed_File.pdf http://hydropower.ge/user_upload/Dolra_3_Pre-Feasibility_Study_Compressed_File.pdf 5 https://transelectrica.com/project_reports.htm

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Impact Assessment of significance without mitigation or Commitments

Producing compensation

Key Mitigation, Compensation or factor High Hi Moderate M Low Lo Management measures

[+] positive, [-] negative impacts

Operation Construction

Likelihood, Magnitude, Extent, Duration Predictedresidual

Landscape fabric

Vegetation ✓ ✓ M [-] Permanent [L&V-16] Construction works through M loss/removal the Nakra Pass on the Mestia line Vegetation loss would occur along the route (KM15-KM20) should not include the of the overhead line, access tracks, at the construction of access tracks, borrow substation extension and construction pits, or construction compounds. This compounds. Clearance would be repeated landscape should be protected as much during the operational phase. as possible by using low impact methods of construction which are limited to tower locations only. [L&V-18] GSE shall co-ordinate and liaise with the developer of the Nenskra HPP project regarding the reinstatement works and replanting requirements of construction areas used by the Nenskra HPP project and the C1 transmission lines.

Landscape character

Presence of ✓ ✓ Hi [-] Permanent [L&V-15] The Nenskra substation as part Hi transmission of the site reinstatement works of the Permanent change to landscape character. lines/substation substation perimeter would be subject Impact will be greatest in undeveloped, more extension and to landscape screening of the substation remote areas. access tracks infrastructure to minimise its visual impact within the Nenskra valley. [L&V-13] Construction works through the Nakra Pass on the Mestia Line (KM15-KM20) should not include the construction of access tracks, borrow pits, or construction compounds. This landscape should be protected as much as possible by using low impact methods of construction which are limited to tower locations only. [L&V-17] Reinstatement of soils and vegetation (In accordance with the planting restrictions above the cable) to restore the cable corridor of the Nenskra HPP line must be undertaken so that the corridor blends into the surrounding environment. [L&V-19] GSE to develop the 500kV Jvari to Nenskra project in accordance with EBRD Performance Requirements or Final – Disclosure Authorized Page 23

Georgian State Electrosystem (GSE) Environmental and Social Impact Assessment SLR Ref No:901.12.1 Volume 5 Physical Environment, Document 5.2 Project Component Assessments June 2020

Impact Assessment of significance without mitigation or Commitments

Producing compensation

Key Mitigation, Compensation or factor High Hi Moderate M Low Lo Management measures

[+] positive, [-] negative impacts

Operation Construction

Likelihood, Magnitude, Extent, Duration Predictedresidual

equivalent IFI standards and GIP good international practice .

Visual amenity

Changes in view ✓ ✓ Hi [-] Permanent [L&V-15] The Nenskra substation as part Hi for residents of the site reinstatement works of the Permanent change to views seen by local substation perimeter would be subject residents. The level of effect will vary based to landscape screening of the substation on the relationship between a specific local infrastructure to minimise its visual and the Component. impact within the Nenskra valley. Changes in views ✓ ✓ M [-] Permanent [L&V-16] Construction works through M for road users Permanent change to views seen by road the Nakra Pass on the Mestia Line users. The lower sensitivity of the receptor (KM15-KM20) should not include the would reduce the likely level of effect. construction of access tracks, borrow pits, or construction compounds. This Changes in views ✓ ✓ Hi [-] Permanent landscape should be protected as much M for people as possible by using low impact methods Permanent change to views seen by people engaged in of construction which are limited to engaged in outdoor recreation. Assessment recreation tower locations only. is moderate due to the relatively limited presence of recreational uses focussed on the appreciation of the landscape.

1.4 Component C2 – Lajanuri Connections to Kheledula HPP, Oni HPP and Tskaltubo

1.4.1 Component C2 Baseline Landscape Component C2 would be routed within and close to the Rioni and Tskenistskali valleys, to the north of Kutaisi. The proposed infrastructure that would follow the Rioni Valley (Oni HPP line, Lechkhumi line and New Derchi line) is typically routed over the upland landscapes to the side of the valley. There are occasional river crossings, e.g. near Zhoneti (KM30 of the Lechkhumi and KM32 of the New Derchi)) and Zogishi (KM0 of the Lechkhumi, New Derchi and Lajanuri HPP lines and KM3 of the Lajanuri HPP line), and also between Mukhli and Akhali Chordi (KM39 to KM49 of the Oni HPP line), towards Oni. This is also the case with the proposed infrastructure in the Tskhenistskali valley, with much of the Kheledula HPP line routed along the valley side and elevated landscape to the east of the valley. Both the Rioni valley and Tskhenistskali valley comprise steep-sided landforms. In the lower sections, in the vicinity of Zhoneti, Sakire and Namakhvani the landform typically rises to over 500m on the western side of the Rioni valley and towards 700m on the eastern side. Further north the elevation of the landform is typically

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Georgian State Electrosystem (GSE) Environmental and Social Impact Assessment SLR Ref No:901.12.1 Volume 5 Physical Environment, Document 5.2 Project Component Assessments June 2020 higher still, rising to over 800m and in places 1000m. Higher summits of between 1,500m and over 2,000m lie to the west of Tvishi and Korenishi and also to the north of Tsageri and Ambrolauri. The rivers are central and defining elements of the landscape. Lajanuri Reservoir also forms a focal point (KM5 of both the Kheledula HPP line and Oni HPP line), and there are proposals for additional reservoirs proposed such as the Namakhvani HPP in the Rioni River valley. The valley sides are typically wooded, predominately comprising a mix of broad-leaved trees including oak, sweet chestnut, hornbeam, lime, alder and maple (together with other species in lesser numbers). There are also areas where coniferous species, including pine and spruce, are more prevalent. The lower valley slopes are cultivated close to settlements and used for agriculture. Land uses comprise pasture for cattle and growing crops including vegetables, fruits and corn. In addition, households within the valleys use a ‘permit of forest use’ for collecting fruit and mushrooms. Other notable land uses within the valley include vineyards in the vicinity of Tvishi, Oncheishi and Derchi, together with Georgian traditional field beekeeping. The Rioni and Tskenistskali valleys are predominately rural and the settlement pattern is generally limited. There numerous towns and villages within the Rioni valley (with more detail provided below in relation to potential visual receptors). However the settlement pattern within the Tskenistskali valley is much more limited. Town and villages are typically located towards the base of the main valleys and the adjoining minor valleys. However, the settlement pattern frequently extends up the valley sides. There are also several settlements that are established on more elevated land e.g. Tsagera (KM2 of both the Lechkhumi and New Derchi lines). There are numerous cultural heritage assets within the valleys. While the potential impacts on these are addressed in the Cultural Heritage sections of Document 4.2, Volume 4 Social, they also have relevance to this assessment in relation to the potential value associated with the landscape. Monuments which are deemed to be immovable monuments by the Ministry of Culture and Monument Protection of Georgia include a number of churches, fortresses, monasteries, towers and a complex of caves. In addition, a number of other structures and archaeological sites within the Rioni valley are noted for their cultural heritage value. The landscape is not recognised for its value by any form of character based designation. However, the combination of landform, rivers and other watercourses, and land cover gives rises to a landscape that has scenic qualities and a sense of naturalness. Its predominately rural character also gives rise to a tranquil landscape. There are areas of ecological interest in the landscape surrounding the site, including the proposed Racha Emerald Site and the proposed extension to the Samegrelo Emerald Site, but these are designated for ecological purposes and not for their landscape. However, as protected sites they do reflect areas that lack human intervention and therefore represent natural and often wild landscapes that represent particular sensitivities. In addition, there are a number of structures and locations within the Study Area that are recognised for their cultural heritage value. While sites/areas of ecological and heritage value do not translate directly into landscape value, they are potential influencing factors in people’s appreciation of it and can also attract visitors. Overall, the landscape in the area in which the proposed development would be located is likely to be of medium/high value, high susceptibility and high/medium sensitivity. Visual Photographs that illustrate aspects of the baseline context for the route of Component C2 are included in Appendix A. The principal settlements within the Rioni and Tskenistskali valleys include: − For the Kheledula line: Gagulechi (KM8), Lajana (KM10), Naghomari (KM18), Gvimbrala (KM23) and Khopuri (KM25/26); − For the Oni HPP line: Zeda Chkvishi (KM12); Pirveli Tola (KM17); Khvanchkara (KM22): Ghviara (KM27), Dzirageuli (KM31), Ambrolauri (KM32);

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− For the Lechkhumi line: Tsagera (KM2); Zhoneti (KM 30); Kvilishori (KM 34); − For the New Derchi line: Tsagera (KM2); Tvishi (close to the end point of the link to the Upper Namakhvani powerhouse); Sachkheuri (KM12 to KM15); Rioni (KM31); and Zarati (KM31); and − For the Lajanuri HPP line: Alpana (KM3, at the end point). However, note that there are numerous other settlements within the valleys, together with dispersed residential properties. The primary route through the Study Area is the Kutaisi-Alpana-Mamisoni Pass. This road closely follows the course of the River Rioni, generally routed close to the base of the valley. Higher up the Rioni Valley, at Alpana this primary route splits, with one route continuing to follow the River Rioni and the other, the Alpana to Tsageri Road heading north. North of Tsageri, the Kutaisi-Tskaltubo-Tsageri-Lentekhi-Lasdii road continues through the Tskhenistskali valley positioned to the west of the proposed Kheledula line. Routes that connect with roads provide access to settlements within the valleys. There are some recreational uses within the valley, although these are relatively limited. There are way marked footpaths in the vicinity of Tvishi that are available for use, including those on Khvamli Mountain. Cyclists use the Kutaisi-Alpana-Mamisoni Pass. The River Rioni is also used to some extent for kayaking and rafting. Key visual receptors within the Study Area comprise the residents of settlements and dispersed properties, together with people using the passes and local roads. For the purpose this assessment, residents and people engaged in outdoor recreation are likely to be of high or medium/high sensitivity and road users of medium to low sensitivity to the proposed development.

1.4.2 Component C2 Impact Assessment Potential Visibility The proposed transmission lines and Lajanuri Substation that form part of Project Component C2 would be visible new elements in the landscape. With towers that have a standard height of approximately 50m the 500kV Lechkhumi line between Lajanuri and Tskaltubo transmission would be the most visually prominent element of this component. The smaller, proposed 220kV transmission lines (the Kheledula HPP line, the Oni HPP line, Lajanuri HPP line and the New Derchi line) would also be visible elements, but the lower tower height would reduce their prominence. Note that the New Derchi line would comprise a replacement transmission line rather than completely new infrastructure. This will utilise the same accesses and clearance corridor where possible, thereby reducing potential change to the landscape and therefore also potential landscape and visual impacts. The Lajanuri Substation is positioned where a combination of the landform and (to a lesser extent) vegetation would limit potential visibility, and again the relative scale of the local landscape would limit the relative prominence of these structures. The transmission lines would cross elevated landscapes that form peripheral parts of the High Caucasus Mountains. All the transmission lines frequently take an elevated route rather than follow the valley sides. Where the transmission lines are routed over the mountainous landform they would be potentially visible over a wide area. However the nature of the landform is expected to result in this pattern of visibility being increasing fragmented as the intervening distance increases, with ridges truncating sight lines. In addition vegetation, particularly the extensive woodland cover would have considerable influence over actual visibility of the towers. Routing the transmission line over the elevated ground is also likely to reduce potential visibility from the settled valley floors, with a combination of the landform and vegetation expected to limit views. The key exceptions to this are the section of the proposed Kheledula HPP line in the Tskenistskali Valley north of Mazashi (KM26), and also the eastern end of the proposed Oni HPP line in the Rioni Valley to the east of Mukhli (KM39 to KM49). Where routed towards the bases of the valleys, the landform would contain potential

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Georgian State Electrosystem (GSE) Environmental and Social Impact Assessment SLR Ref No:901.12.1 Volume 5 Physical Environment, Document 5.2 Project Component Assessments June 2020 visibility. However this also means that the transmission lines, particularly the route of the Oni HPP line through the eastern part of the Rioni Valley, will be positioned in more settled landscapes and closer to towns and villages and also the roads that provide access. The Lajanuri Substation would be positioned within the Rioni Valley. The landform would help contain potential visibility, although there would be views from the valley sides, and also along the valley in both directions. Vegetation within the valley is also likely to provide some restrictions to potential visibility of the substation structures. However, the substation would occupy a relatively elevated position on the side of the valley meaning it is likely to comprise a conspicuous element in the landscape. Landscape Impacts The analysis of the baseline has identified important potential sensitivities. All elements of this component are located in peripheral parts of the High Caucasus Mountains and a large proportion of the proposed transmission lines cross undeveloped, upland landscapes, much of which is wooded. No parts of the landscapes crossed by the transmission lines or associated with the substation site are designated specifically for its landscape character. The likely sensitivity of the landscape to the proposed development is high/medium due to the characteristics of the baseline landscape. Both the construction and operational phases would result in changes to the landscape along the length of the transmission lines and at Lajanuri Substation. The Project would introduce a number of industrial/utilitarian structures to the landscape and result in the construction of tracks, temporary compounds and the clearance of vegetation. However, the disturbance to the landscape is likely to less in relation to the New Derchi line as this would replace the existing infrastructure and the Leckhumi line and Lajanuri HPP lines where these are close to the original Derchi line which is to be replaced. Potential impacts on specific landscape receptors during the construction phase would arise due to the loss of landscape features/elements. This would comprise changes to the landscape resulting from construction activities as well as the presence of construction equipment. For the transmission lines, this would comprise vegetation clearance at tower locations and along the route of overhead conductors to accommodate transmission line clearance corridors of 75m or 60m for the proposed 500kV and 220kV transmission lines respectively. Vegetation clearance may also be necessary to enable access for construction equipment. Installation of the transmission lines would have a relatively limited geographical extent and influence and would be short-term and transitory in nature (lasting less than 18 months) within the construction period, however the clearance corridor would remain for the life of the Project. The majority of the transmission lines cross undeveloped upland landscape, and the introduction of the transmission lines would contrast with this, and are likely to result in result in high or high/moderate and significant impacts. The multiple potential crossings of the valleys, including the spans across the Lajanuri Reservoir (KM5 f both the Kheledula HPP line and Oni HPP line) would be conspicuous elements and would cut across the grain of the landscape. The number of overhead lines around the Rioni valley (both sides of the valley) to the south of Lajanuri Substation means this infrastructure has the potential to become a key characteristic of this landscape. However, it should be noted that the New Derchi line would comprise replacement infrastructure rather than completely new development. Potential landscape impacts associated with the Lajanuri Substation are likely to be more localised. However, the relatively prominence of this element on the valley side means it could comprise a conspicuous element in the landscape. The specific landscape impacts associated with the substation have the potential to be high/moderate or moderate due to the relative scale of the baseline landscape. Visual Impacts The proposed transmission lines and substation would also have potential impacts on visual receptors. All the transmission lines that make up Project Component C2 are routed in part through or cross settled parts of the valleys. There are numerous settlements throughout these valleys and it is likely that residents will experience Final – Disclosure Authorized Page 27

Georgian State Electrosystem (GSE) Environmental and Social Impact Assessment SLR Ref No:901.12.1 Volume 5 Physical Environment, Document 5.2 Project Component Assessments June 2020 the changes resulting from the proposed development. The greatest potential for visual impacts is likely to be associated with the Lechkhumi line. The largest towers would be associated with this transmission line and therefore it is likely these would be the most visually prominent, especially where the transmission line crosses the valley landforms, noting the potential for tall towers to be required where the Lajanuri Reservoir is crossed. The places where there would be concentrations of overhead lines in the vicinity of the Lajanuri Substation and either side of the Rioni Valley are likely to be particularly visually conspicuous. All transmission lines that make up Project Component C2 have the potential to result in significant visual impacts, especially for local residents. The exception to this would be the New Derchi line due it comprising replacement rather than new infrastructure. Where the transmission lines would cross the undeveloped, upland landscape there is potential for fewer visual receptors. However these are scenic, remote and tranquil landscapes that are promoted for outdoor activities such as walking, climbing and skiing. Where people do experience the changes resulting from the proposed development in these upland landscapes, these have the potential to be significant due to the contrast with the baseline. However, note that the New Derchi line and Lechkhumi lines would either replace or be routed close the existing overhead line infrastructure, which would be replaced by the proposed development, which would reduce the relative visual change. The proposed Lajanuri Substation is positioned away from the existing settlement pattern. The visibility of the substation is also expected to be contained to some extent by the valley landform and surrounding vegetation. However, the substation would be positioned on a relatively elevated part of the valley side potentially making it a conspicuous new element with the potential to result in significant impacts, especially in combination with the associated overhead lines.

1.4.3 Component C2 Mitigation The component C2 lines have been developed to avoid the most scenic landscapes. This was considered as part of the Alternatives Analysis which is reported in Section 2 Volume 2 Project Definition. Specifically, the key landscapes avoided included: − Proposed Racha Emerald Site; − Khvamli Mount, a landscape feature well known with trekkers, which is located to the west of the Rioni River; and − Proposed extension of the Samegrelo Emerald Site to the north west. A range of mitigation measures could be implemented in relation to the proposed transmission lines and Lajanuri Substation. Some of these are specific to or more relevant to landscape or visual impacts. However, on the whole measures that assist the integration of the structures and restoration of disturbed areas will help to reduce both landscape and visual impacts. Section 2.5 of Document 5.1 sets out the mitigating measures that are applicable on a project-wide basis. The design status of the Project means that further specific mitigation may become apparent as the design is finalised. Whilst much of the Lajanuri Substation site could be screened due to landform, the Contractor should provide landscape screening to the Lajanuri substation where possible if there is visibility of the substation to nearby residential receptors. This would be undertaken using native species as specified by the Biodiversity Project Component Assessment (Document 8.2). Mitigation requirement − [L&V-20] The Lajanuri Substation as part of the site reinstatement works of the substation perimeter would be subject to landscape screening of the substation infrastructure to minimise its visual impact to nearby residential receptors, if screening due to landform is insufficient, as agreed with GSE/the Implementation Consultant.

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1.4.4 Component C2 Cumulative Assessment Associated facility - Namakhvani HPP

The Namakhvani HPP project is proposed to consist of two new dam structures which will have a significant effect on the Rioni River water level. Based on details previously released for public consultation, the Upper dam, with integrated powerhouse, would be a 55m high concrete gravity dam, creating a reservoir of 1km². A Lower dam would be a 99m high dam, creating a reservoir of 4.8 km². The main powerhouse for this dam is located 7.5 km downstream of the Lower dam. The New Derchi line which connect into both the Upper and Lower dam with loop-in / loop-out connections. The changes to the Rioni River valley landscape due to the hydropower project will be locally significant, particularly the visual impacts in proximity to the dam. The two dam structures are, however, located in narrow gully sections of the river and this minimises the views of the dams. The new reservoirs created by the scheme will also significantly change the landscape. The addition of the New Derchi line will add to the industrial feel of the project particularly at the powerhouse locations. However, the transmission lines combined with the hydropower project occurs over a very small footprint of the project and whilst both projects represent change in the landscape, the cumulative effect does not result in a significantly greater landscape and visual change, recognising that the transmission line has a significant effect on local landscape and views for nearby receptors.

Associated facility – Kheledula HPP The main infrastructure associated with the Kheledula HPP project is located within a narrow tributary valley of the Tskenistskali River. The Kheledula HPP ESIA6, which was undertaken to comply with the EBRD Performance Requirements, concludes that there will be no landscape and visual impacts due to its location in an isolated valley. In practice, there will be a change to the landscape and some visual impacts in the Tskenistskali River valley. The changes to the landscape will be very localised and whilst the changes are to a remote and scenic landscape the changes are confined. The addition of the Kheledula HPP line connecting into the Kheledula HPP powerhouse will have a localised landscape and visual impact, which will be significant for those travelling through the valley for a limited spatial extent due to the meandering nature of the Tskenistskali River. Whilst in parts the valley landscape is scenic, there is already evidence of landscape change due to road construction and an existing 35kV distribution transmission line in the valley. This reduces the overall sensitivity of the landscape and the severity of the cumulative effect. Associated facility – Oni HPP There is limited information on the design details of the Oni HPP but a run of river hydropower project on the Rioni River in Oni is likely to be a significant structure and result in significant changes to the river. This is likely to have some significant changes to the surrounding landscape within the valley. Such landscape features are a key part of a hydropower development. Given its general location and the open nature of the Rioni River at this point, the project could have some significant visual impacts on nearby communities. Like other hydropower schemes of this scale, there is limited scope for mitigating the landscape and visual effects, other than some architectural treatment of the external facades of structures, such as the powerhouse.

______6 https://www.ebrd.com/work-with-us/projects/esia/kheledula-hpp.html

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The individual effects of the Oni HPP and the Oni HPP line are likely to result in significant landscape and visual effects. The Rioni River valley is wide at this point and the transmission line will have a far lower impact on the landscape change than the hydropower project. The addition of the transmission line will not result in a significant difference to the landscape compared to if only the hydropower project was to be developed.

1.4.5 Component C2 Summary of Impacts and Mitigation Commitments The table below provides a summary of the landscape and visual impacts of Component C2.

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Impact Assessment of significance without mitigation or Commitments Management Action where

Producing compensation the mitigation or

Key Mitigation, Compensation or factor compensation measure is High Hi Moderate M Low Lo Management measures addressed in the ESMP

[+] positive, [-] negative impacts

Operation Construction

Likelihood, Magnitude, Extent, Duration Predictedresidual

Landscape fabric

Vegetation ✓ ✓ M [-] Permanent [L&V-20] The Lajanuri Substation as part M ESMP Document 8.1, loss/removal of the site reinstatement works of the section 5.3.10 Vegetation loss would occur along the route substation perimeter would be subject of the overhead line, access tracks, at the ESMP Document 8.2, to landscape screening of the substation substation extension and construction section 3.2.1 infrastructure to minimise its visual compounds. Clearance would be repeated impact to nearby residential receptors, if ESMP Document 8.3, during the operational phase. screening due to landform is insufficient, sections 3.2.1, 3.3.1, 3.6.1, as agreed with GSE/the Implementation 3.7.1 Consultant.

Visual amenity

Changes in view ✓ ✓ Hi [-] Permanent [L&V-20] The Lajanuri Substation as part Hi ESMP Document 8.1, for residents of the site reinstatement works of the section 5.3.10 Permanent change to views seen by local substation perimeter would be subject residents. The level of effect will vary based ESMP Document 8.2, to landscape screening of the substation on the relationship between a specific local sections 3.2.1 infrastructure to minimise its visual and the Component. impact to nearby residential receptors , ESMP Document 8.3, Changes in views ✓ ✓ M [-] Permanent if screening due to landform is M sections 3.2.1, 3.3.1, 3.6.1, for road users insufficient, as agreed with GSE/the 3.7.1, 4.5.1 Permanent change to views seen by road Implementation Consultant.. users. The lower sensitivity of the receptor would reduce the likely level of effect.

Changes in views ✓ ✓ M [-] Permanent M for people Final – Disclosure Authorized Page 31

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Impact Assessment of significance without mitigation or Commitments Management Action where

Producing compensation the mitigation or

Key Mitigation, Compensation or factor compensation measure is High Hi Moderate M Low Lo Management measures addressed in the ESMP

[+] positive, [-] negative impacts

Operation Construction

Likelihood, Magnitude, Extent, Duration Predictedresidual engaged in Permanent change to views seen by people recreation engaged in outdoor recreation. Assessment is moderate due to the relatively limited presence of recreational uses focussed on the appreciation of the landscape.

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1.5 Component D – Reinforcement of the transmission infrastructure in Kakheti

1.5.1 Component D Baseline Landscape All the elements that make up Component D are located on the southern side of the upper valley associated with the River Alazani. The valley is elevated, at between approximately 300m and 400m ASL, but broad in profile and gently sloping. It is surrounded by rising ground that forms peripheral parts of the High Caucasus Mountains, including the Tsiv-Gombori Range. These elevated landscapes accentuate the valley landform and there are wide open views to the mountains. The river comprises a key feature in the landscape and is surrounding by areas of woodland, which contrast with the open agricultural land found throughout much of the valley. The valley itself is up to 20km wide and has a settled and cultivated landscape. Settlement is concentrated on the southern side of the valley and comprises a series of towns and villages at the base of the rising ground, along the A42 road. Agriculture is the primary land use with a mix of vineyards, pasture and arable crops. The valley is located within a noted wine growing area, which draws visitors, as well as forming a notable land use. The rising landform that surrounds the valley provides a sense of enclosure. The steep terrain means settlement on the slopes is very limited. The mountains are typically wooded, although fingers of agricultural land extend into this woodland on the lower slopes. There are numerous cultural heritage assets within buffer zone used for the cultural heritage assessment. While the potential impacts on these are addressed in the Cultural Heritage sections of Document 4.2, Volume 4 Social, they also have relevance to this assessment in relation to the potential value associated with the landscape. Several sites of cultural heritage interest have been identified in relation to Component D, including a number of ruined and operating churches, together with several cemeteries. The settled valley landscape in which elements that make up Component D would be located is of relatively limited landscape value, with no landscape designations. Susceptibility is limited by the human and urbanising influences, including existing power transmission infrastructure. However, the views to the Caucasus Mountains and wide open view contribute to the character of the valley and tall vertical structures have the potential to affect this relationship. The mountain fringes that surround the broad valley are of greater value and susceptibility to change due to their greater scenic quality. However, existing transmission line infrastructure along the southern fringes of the valley forms an established part of the baseline including lines and towers (varying between 20 to 30m in height) which are to be replaced by the Project. In addition, there are further overhead lines within other parts of the valley. Overall, the broad valley associated with the River Alazani is likely to be of medium/low sensitivity, while the surrounding mountain fringes are likely to be of medium/high sensitivity. Visual Photographs that illustrate aspects of the baseline context for the route of Component D are included in Appendix A. There is a relatively high concentration of settlement pattern along the southern edge of the Alazani valley, with a ribbon of development along the route of the A42. Multiple settlements lie close to the elements that make up Component D, and include: − For the Gurjaani line: GurjaaniKM0); Chumlaki (KM4); Zegaani (KM8); Velistsikhe (KM9); Mukuzani (KM10); Vazisubani (KM12); Vachnadziani (KM17); Akura (KM20); Vanta (KM21); Bushesti (KM23); Kvemo Khodasheni (KM25); Tsinandali (KM26 to KM27); Kisiskhevi (KM29); and Telavi (KM31 to end);

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− And for the Akhmeta line: Telavi (KM0 to KM7); Qarajala (KM10); Ikalto (KM12); Atskuri (KM17); Arashenda (KM18), Kistauri (KM24 to KM27), Sachale (KM28/KM29); Akhmeta (KM30 to KM34); and Khorbalo (KM33).

The road network corresponds strongly with the settlement pattern, with the A42 road lying roughly parallel with Component D throughout its length, albeit the Akhmeta line crosses this road to the east of Kistauri (KM19). The Akhmeta line would also cross the A38, which crosses the Tsiv-Gombori Range, to the west of Telavi (KM8). Component D also crosses roads that lie at the periphery of settlements. The Gurjaani line lies roughly parallel with the railway line between Telavi and Gurjaani. There appears to limited recreational use of the Tsiv-Gombori Range to the south west of Component D. However, there are a number of churches, together with a monastery and basilica positioned on the north east facing slopes of this ridge. These buildings take advantage of the elevation afforded by this rising ground to occupy a prominent position and people visit them for worship and to appreciate these buildings and their context. Key visual receptors within the Study Area comprise the residents of settlements and dispersed properties, together with people using the local transport infrastructure (i.e. road networks and rail) and people visiting churches and similar structures positioned on the northeast facing slopes of the Tsiv-Gombori Range. For the purpose of this assessment, residents and people visiting locations on the edge of the Tsiv-Gombori Range are likely to be of high or medium/high sensitivity, and users of transport infrastructure of medium/low to low sensitivity to the proposed development.

1.5.2 Component D Impact Assessment Potential Visibility The new proposed transmission lines that form part of Project Component D would be visible new elements, particularly from locations in the open agricultural landscape to the north. However, they will replace existing infrastructure limiting the extent and nature of any change that would result. The replacement of the existing transmission lines will also comprise visible new elements and as they will be diverted from the existing routes, the visibility of these will differ in places from the existing transmission lines, which will subsequently be removed. These will comprise 220kV transmission lines with towers that are typically 50m tall, compared with the 20 to 30m height of the existing towers. However the fact that the proposals will replace existing towers, together with the urban context of parts of the route will limit the relative change. In addition vegetation and buildings around the settlements will also help to restrict potential visibility. The rehabilitation/extension of the substations that comprise part of Project Component D will be locally conspicuous elements. All the substations are positioned on the edges of settlements. Therefore potential visibility will be most pronounced for residents that live closest to the substations. However, wider visibility would be limited by a combination of urban form and vegetation. In addition, the proposed works at the substations are expected to be relatively minor (particularly at Gurjaani, Tsinandali and Mukuzani) and/or seen in the context of the existing structures that form an established part of the baseline. Landscape Impacts The analysis of the baseline has identified potential sensitivities. However, the elements that make up this component are located on the edge of a settled valley that is already influenced by human activity. The landscape that surrounds the valley forms peripheral parts of the High Caucasus Mountains, including the Tsiv- Gombori Range. Overall, it is considered that the broad valley associated with the River Alazani is likely to be of medium to low sensitivity, while the surrounding mountain fringes are likely to be of medium/high sensitivity. Both the construction and operational phases would result in changes to the landscape along the length of the sections of transmission line and at the substations proposed for rehabilitation and/or extension. The Project

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Georgian State Electrosystem (GSE) Environmental and Social Impact Assessment SLR Ref No:901.12.1 Volume 5 Physical Environment, Document 5.2 Project Component Assessments June 2020 would replace and/or extend a number of industrial/utilitarian structures that already form an established part of the baseline landscape and may also result in the construction of occasional new tracks and temporary compounds. There may also be some clearance of vegetation, but as much of the overhead lines that form part of Component D cross an agricultural landscape the extent of vegetation loss is likely to be limited. There is also a short section of underground cable proposed close to Tsinandali, Kisiskhevi and Kvemo Khodasheni (Gurjaani line KM26 to KM29). Potential impacts on specific landscape receptors during the construction phase would arise due to the loss of landscape features/elements. This would comprise changes to the landscape resulting from construction activities as well as the presence of construction equipment. For the transmission line, this would comprise vegetation clearance at new tower locations and along the right of way in accordance with clearance requirements as set out in Section 3 of Volume 2 Project Definition. Vegetation clearance may also be necessary to enable access for construction equipment. Installation of the transmission lines would have a relatively limited geographical extent and influence and would be short-term in nature (lasting up to 14 months) within the construction period however the clearance corridor would remain for the life of the Project. The proposed section of underground cable would also require vegetation clearance along its length. Again the installation of the underground cable would have a relatively limited geographical extent and influence and would be short-term in nature (lasting less than 12 months) within the construction period. However, once installed, vegetation (other than trees or tall shrubs) would be allowed to regrow along the cleared route. The majority of the Gurjaani and Akhmeta transmission lines will cross landscapes that are already influenced by human activity and include existing transmission lines and substations and will in fact replace one of these transmission lines in the landscape. Therefore the relative change and impact associated with the proposed development is likely to be limited and potentially moderate and not significant. Visual Impacts The proposed transmission lines, underground cable and substation developments would also have potential impacts on visual receptors. It is a settled landscape and as consequence there are numerous people living close to the proposed development. However, the proposed overhead lines would typically replace the existing infrastructure, therefore the resulting visual change would be relatively limited and the potential effects are frequently likely to be moderate. This would be similar for the proposed developments at the substations; as these already comprise existing elements and form part of the baseline thereby reducing the relative change. The 3.3km of underground cable that is proposed in the vicinity of Tsinandali would also provide localised mitigation of potential visual impacts post construction. However, it is noted that there is an increased trend towards tourism linked to the wine industry with several small hotels being developed throughout Kakheti. The underground cable section previously mentioned is located near to a newly constructed Radisson Blu hotel. Other hotels are also being developed, though the aspect of such developments would seem to be with an easterly direction main view, looking down over the vineyards and towards the Caucasus beyond the Alazani valley. As mentioned previously, the existing transmission line is part of the existing baseline views. Particularly for the Gurjaani line, this new line will push the route of the transmission line south and westwards and the Gurjaani line is more likely not to appear in the views being used by such developments. In addition, there would be an improvement with the removal of the existing transmission lines from the prominent views. However, there are a few locations where since the public disclosure of the ESIA that some concerns relating to visual impacts have been raised. GSE is investigating these concerns and there could be opportunities to make localised visual improvements. Further details are covered in the mitigation section (section 1.5.3).

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1.5.3 Component D Mitigation A range of mitigation measures could be implemented in relation to the proposed transmission lines and substation developments. Some of these are specific to or more relevant to landscape or visual impacts. However, on the whole measures that assist the integration of the structures and restoration of disturbed areas will help to reduce both landscape and visual impacts. Section 2.5 of Document 5.1 sets out the mitigating measures that are applicable on a project-wide basis. The design status of the Project means that further specific mitigation may become apparent as the design is finalised. Given the proximity of Telavi substation to visual receptors and given that there is an element of screening around the existing site, screening should be introduced along the most sensitive boundaries (western and southern boundary) to visual residential receptors. Planting and/or fencing would be used to provide a visual screen. Planting would be undertaken using native species as specified by the Biodiversity Project Component Assessment (Document 8.2). Mitigation requirement − [L&V-21] The Telavi Substation western and southern boundaries are to be screened using landscape planting to minimise the substation’s visual impact to nearby residential receptors. As highlighted in the visual impacts, an increasing number of hotels are being developed in some of the wine growing areas of Kakheti. Following public disclosure, several hotels expressed concern regarding the visual impacts of the Gurjaani line. Whilst the views are not likely to alter significantly due to the existing transmission line in the landscape, GSE should consider whether there is the potential to improve the alignment to improve localised visual impacts. This might be a case of considering the main aspect of a tourist development to ensure that the visual impacts are reduced from these views. − [L&V-22] GSE to liaise with local hotel and tourist resorts to investigate the potential for reducing localised visual impacts by considering the main aspects of developments and by also providing details of the changes to views following the removal of old transmission lines. Underground cables The incorporation of underground cables in the vicinity of Tsinandali and the Radisson Blu Hotel would provide localised mitigation of potential landscape and visual impacts. Top soils should be removed within the working area to avoid compaction. These should be stored in stabilised mounds (e.g. using a grass mix) during construction and then used in the restoration of the working area following construction. The stripped top soils should be used in the restoration of the cable corridor, with the ground level and land cover/use complementing the adjacent landscape. Vegetation that existed prior to construction should be replaced with comparable new planting where possible. − [L&V-23] Reinstatement of vegetation and soils complementing surrounding landscapes must be undertaken to ensure that the underground cable corridor is successfully restored and integrated following construction. Cable sealing end compounds would be comparable in form, although typically smaller, than substations. Comparable mitigation measures, such as those in relation to the section of materials and finishes and use of planting, could be applied to reduce potential landscape and visual impacts. − [L&V-24] Consideration of design principles, such as the selection of materials and finishes, during detailed design of the cable sealing end compounds. − [L&V-25] Reinstatement of vegetation and soils complementing surrounding landscapes must be undertaken to ensure that the cable sealing end compound fits in to its surrounding landscape.

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1.5.4 Component D Cumulative Assessment Not relevant to this Component.

1.5.5 Component D Summary of Impacts and Mitigation Commitments The table below provides a summary of the landscape and visual impacts of Component D.

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Impact Assessment of significance without mitigation or Commitments Management Action where

Producing compensation the mitigation or

Key Mitigation, Compensation or factor compensation measure is High Hi Moderate M Low Lo Management measures addressed in the ESMP

[+] positive, [-] negative impacts

Operation Construction

Likelihood, Magnitude, Extent, Duration Predictedresidual

Landscape fabric

Vegetation ✓ ✓ M [-] Permanent [L&V-23] Reinstatement of vegetation M ESMP Document 8.1, loss/removal and soils complementing surrounding section 5.3.10. Vegetation loss would occur along the route landscapes must be undertaken to of the overhead line, access tracks, at the ESMP Document 8.2, ensure that the underground cable substation extension and construction sections 3.2.1, 4.6.4 corridor is successfully restored and compounds. Clearance would be repeated integrated following construction. ESMP Document 8.3, during the operational phase. sections 3.2.1, 3.3.1, 3.6.1, [L&V-25] Reinstatement of vegetation and soils complementing surrounding landscapes must be undertaken to ensure that the cable sealing end compound fits in to its surrounding landscape.

Landscape character

Presence of ✓ ✓ Hi [-] Permanent [L&V-21] The Telavi Substation western Hi ESMP Document 8.1, transmission and southern boundaries are to be section 5.3.10, 5.3.6 Permanent change to landscape character. lines, substation screened using landscape planting to Impact will be greatest in undeveloped, more ESMP Document 8.2, extensions cable minimise the substation’s visual impact remote areas. sections 3.2.1, 4.6.4 sealing end to nearby residential receptors. compounds and ESMP Document 8.3, [L&V-23] Reinstatement of vegetation access tracks sections 3.2.1, 3.3.1, 3.6.1, and soils complementing surrounding 3.7.1, 4.4.1 landscapes must be undertaken to ensure that the underground cable corridor is successfully restored and integrated following construction.

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Impact Assessment of significance without mitigation or Commitments Management Action where

Producing compensation the mitigation or

Key Mitigation, Compensation or factor compensation measure is High Hi Moderate M Low Lo Management measures addressed in the ESMP

[+] positive, [-] negative impacts

Operation Construction

Likelihood, Magnitude, Extent, Duration Predictedresidual

[L&V-24] Consideration of design principles, such as the selection of materials and finishes, during detailed design of the cable sealing end compounds. [L&V-25] Reinstatement of vegetation and soils complementing surrounding landscapes must be undertaken to ensure that the cable sealing end compound fits in to its surrounding landscape.

Visual amenity

Changes in view ✓ ✓ Hi [-] Permanent Hi ESMP Document 8.1, for residents section 5.3.10, 5.3.6 Permanent change to views seen by local [L&V-21] The Telavi Substation western residents. The level of effect will vary based and southern boundaries are to be ESMP Document 8.2, on the relationship between a specific local screened using landscape planting to sections 3.2.1, 4.6.4 and the Component. minimise the substation’s visual impact ESMP Document 8.3, to nearby residential receptors. Changes in views ✓ ✓ M [-] Permanent M sections 3.2.1, 3.3.1, 3.6.1, for road users [L&V-22] GSE to liaise with local hotel 3.7.1, 4.4.1 Permanent change to views seen by road and tourist resorts to investigate the users. The lower sensitivity of the receptor potential for reducing localised visual would reduce the likely level of effect. impacts by considering the main aspects of developments and by also providing ✓ ✓ Hi M Changes in views [-] Permanent details of the changes to views following for people Permanent change to views seen by people the removal of old transmission lines. engaged in Final – Disclosure Authorized Page 39

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Impact Assessment of significance without mitigation or Commitments Management Action where

Producing compensation the mitigation or

Key Mitigation, Compensation or factor compensation measure is High Hi Moderate M Low Lo Management measures addressed in the ESMP

[+] positive, [-] negative impacts

Operation Construction

Likelihood, Magnitude, Extent, Duration Predictedresidual recreation engaged in outdoor recreation. Assessment [L&V-23] Reinstatement of vegetation is moderate due to the relatively limited and soils complementing surrounding presence of recreational uses focussed on the landscapes must be undertaken to appreciation of the landscape. ensure that the underground cable corridor is successfully restored and integrated following construction. [L&V-24] Consideration of design principles, such as the selection of materials and finishes, during detailed design of the cable sealing end compounds. [L&V-25] Reinstatement of vegetation and soils complementing surrounding landscapes must be undertaken to ensure that the cable sealing end compound fits in to its surrounding landscape.

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Hydrology, Geology and Geohazards

2.1 Component A Tskaltubo to Akhaltsikhe and on to the Turkey border south of Vale

2.1.1 Component A Baseline The key geomorphological, land use, hydrology and geological features are described below and illustrated in Figure 1 and Figure 2. Sairme Line The proposed route of the Sairme line starts at Tskaltubo Substation from where it is orientated in a southerly direction. For the first 25km south, the land is generally flat farmland at an elevation in the order of 50m ASL. The route crosses the Rioni River (KM19/KM20) and enters the highlands of the Lesser Caucasus. The land cover is characterised by steep sloped woodlands. The route progressively gains altitude generally following the tops of ridges but crossing some small valleys and shallow gullies. The route reaches an altitude of approximately 2,000m ASL (KM39) and crosses a rocky plateau reaching a total height of 2828m ASL. Crossing the plateau, the route generally follows the tops of ridges, some of which are steep sided. The route then drops down to lower lying land through an area comprising a patchwork of small woodland areas, subalpine meadows, and farmland. The route then curves towards the east and from KM74, it is orientated in an easterly direction. The last 20km of the route skirts along the bottom of the southern base of a range of hills. The terrain crossed is undulating as several gently sloped valleys and gullies are crossed. As the route nears the Akhaltsikhe Substation (KM96), the route crosses several valleys and gullies with steeper sides and which appear to be subject to erosion and slope instability. The geology underlying the route between Tskaltubo Substation and the southern edge of the Rioni River floodplain (KM23) is characterised by undifferentiated Pleistocene strata. The route southwards from the Rioni River floodplain is through an area characterised by Middle Eocene marine volcanic rock. The principal hydrological features crossed by the route are as follows: − The Rioni River, which at the point where it is crossed is approximately 800m wide and comprises several channels typical of a braided riverbed; and − Along the last 20km of the route (from KM75) at least six watercourses are crossed, some of which may be seasonal. These watercourses are typically dry ephemeral rivers but their presence is indicative of high flow events most probably after heavy rainfall.

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Figure 1 Component A - Sairme Line

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Figure 2 Component A - Tao Line

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The preliminary review suggests that there are areas which represent geohazards are as follows: − Areas where the route crosses narrow ridges with steep sides, and which show signs of erosion and potential slope instability. − Areas where the route is constructed on slopes that show signs of erosion and potential slope instability. − Crossing of torrents that could be subject to debris flow and mudflow events. − Crossing of the Rioni River which at the crossing point is a 1km wide braided channel, and which is subject to changes in channel routing within the floodplain during periodic flood events. Tao Line For the first 5km, the proposed route of the Tao line is generally orientated westwards, and crosses an area characterised by undulating terrain comprising several ridges and large shallow gullies, that appear to be subject to erosion from rainwater runoff and may have some unstable slopes. The remainder of the route (from KM5) is orientated in a more south-westerly direction and crosses mainly farmland with more gentle slopes. The route crosses at least seven watercourses, some of which may be seasonal. In terms of geology, the first 5km of the route crosses and area of Middle Eocene marine volcanic rock. The route then crosses a large area of Upper Eocene-Olgocene, Kinta, Matsesta, Khosta and Sochi series, euxinic basin rocks. In terms of geohazards, preliminary review of satellite imagery suggests that the principle hazards are slope instability along the route to KM5, and the risk of debris flow and/or mud flow events on watercourses crossed by the route. Akhaltsikhe substation Close to the extension of the Akhaltsikhe substation is a deeply incised valley which shows signs of landslips and erosion. The substation extension area is unlikely to impact this further but temporary works close to this valley could lead to further erosion.

2.1.2 Component A Impact Assessment The general impact producing factors and potential impacts that are described in the Project Wide Assessment (Document 5.2, Volume 5 Physical Environment) are all applicable to Component A: − Land degradation. − Sedimentation in rivers and streams. − Pollution from accidental spills and leaks of hazardous substances. − Damage to the transmission lines from geohazards. − Pollution from disturbed contaminated materials on previously developed land A number of Project Component impacts could also occur in Component A. These are as follows: − The Sairme line passes to the south west of Kutaisi through an area of what appears to have some former industrial uses (approximately KM0 to KM3). The line also passes over the railway in this section. The placement of towers and any excavation works in this area could find and disturb contaminated soils, which could become mobilised either causing a risk to human health (e.g. construction workers) or entering groundwater or nearby surface water; − The Sairme line would cross the Rioni River which is formed of a number of braided channels and a man- made canal channel. This area would be susceptible to sedimentation and erosion if construction works

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were to take place within the river or adjacent to any of the eroding braided channels. The construction works could also lead to a change in the erosion dynamics of the watercourse; and − Near to the Akhaltsikhe Substation, a deep ravine which is subject to landslips and surface runoff erosion could be impacted further by the Project if construction works take place adjacent, within or across the ravine.

2.1.3 Component A Mitigation General mitigation measures are described in the Project Wide Assessment (Document 5.2, Volume 5 Physical Environment) for controlling many of the impacts predicted for this Project Component. The measures from the Project-wide assessment can be summarised as follows: − Measures to manage land degradation slope instability and sedimentation; − Measures to control risk of accidental spills and leaks of hazardous substances; − Use of herbicides is not permitted for the removal of trees and vegetation; − Identify the potential for contaminated land and implementation of appropriate controls; and − Management of geohazards. However, as highlighted in the potential impacts assessment, there is a requirement for additional site specific mitigation. Specific mitigation measures would also be required as follows: − A contaminated land desk study and site investigation of any excavation works between KM0 and KM3 would need to be undertaken to identify the presence of contamination and the need for remedial measures such as the removal of contaminated materials; − The detailed design of the Rioni River crossing for the Sairme line is to be based on there being no infrastructure in the Rioni River which is a requirement of the Biodiversity Assessment (Document 3.2, Volume 3) due to the presence of possible spawning grounds in the river for sturgeon. This design requirement would avoid any impacts on river erosion and, therefore, no further mitigation is required; and − Works within the ravine adjacent to the Akhaltsikhe Substation would be avoided to prevent any landslips or erosion occurring as a result of the works. Mitigation requirement − [HYD-12] A risk assessment and site investigation ahead of any site works would be undertaken along the route of the Sairme line in former industrial areas of Kutaisi and Tskaltubo between KM0 and KM3; − [HYD-13] All construction works to avoid the unstable slopes of the deep ravine adjacent to the Akhaltsikhe substation between KM0 and KM1.

2.1.4 Component A Cumulative Assessment Associated facility - Tskaltubo Substation There are no watercourses in the area of the substation other than small field drains and the topography of the area is flat. The only potential impact which could occur and be regarded as a cumulative impact would be the excavation of material deemed contaminated from the substation site and the tower locations of the transmission line. As both projects are the subject of an ESIA in accordance with international guidelines, both projects would be subject to GIP and measures outlined within an ESMP regarding the handling of soils and contaminated material. It is not predicted that either project would result in significant impacts. As GSE is the

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Georgian State Electrosystem (GSE) Environmental and Social Impact Assessment SLR Ref No:901.12.1 Volume 5 Physical Environment, Document 5.2 Project Component Assessments June 2020 developer of both projects, the impacts whilst small could be minimised further by co-ordinating activities to ensure that the management plans are aligned and construction compound locations are shared. − [HYD-14] GSE shall ensure that there is co-ordination between the construction of the Sairme line (and Component C2 lines) and the Tskaltubo substation to align mitigation procedures and share use of construction facilities. Cumulative development - Tskaltubo to Jvari 500kV transmission line Both the Sairme line (and the Component C2 lines) and the Tskaltubo to Jvari line connect into the Tskaltubo substation. As discussed for the Tskaltubo substation cumulative assessment, there are no watercourses other than field drains in the vicinity of the substation and the two transmission lines. As the transmission lines travel is opposite directions there is no likelihood of any hydrological or geological cumulative impact. Cumulative development - Akhaltsikhe to Batumi 220kV transmission line The Akhaltsikhe to Batumi transmission line runs parallel to the Tao line for approximately 8km before the crossing of the two lines. As the two lines exit the Akhaltsikhe substation the closest distance the two lines get to each other is approximately 240m. The crossing of the two lines occurs above the village of Klde at KM9. A valley is located nearby which could be susceptible to erosion from surface runoff and if the two projects occurred at the same time this could result in a cumulative impact on this valley. However, the Akhaltsikhe to Batumi line is currently being constructed with many of the towers already in place. It is expected that the line will be fully constructed by the time construction commences on the Tao line. As a result there would be no construction phase impacts as a result. In addition, once operational no impacts on hydrology or geology are predicted.

2.1.5 Component A Transboundary Impacts As the Tao line will continue across the Georgia border and continue to Turkey there is the potential for transboundary impacts. With the application of the mitigation measures described in the assessment and the implementation of the ESMP no impacts from the construction of the Project in Georgia is predicted to impact hydrology or geology in Turkey. The border area is free of watercourses or steep slopes and therefore no particular impacts are predicted here. The Tao line would continue into Turkey towards Tortum, approximately 175km to the south. The route of the line in Turkey is not yet available, but this assessment has considered possible routes based on an understanding of transmission line routing principles. There are no major watercourse crossings likely to be encountered though there are watercourses running east to west which most possible routes would need to cross. A more easterly but longer route could be taken to avoid a mountainous area which a more direct route would encounter. This mountainous area is likely to have some areas of steep slopes, unstable and eroding slopes, many mountain streams and be susceptible to the types of geohazards described in the assessment for the Tao line. Based on this preliminary review, it is not anticipated that there would be an significantly different impacts for the line from the Georgian border to Tortum, subject to the same GIP measures being adopted through an ESMP.

2.1.6 Component A Summary of Impacts and Mitigation Commitments The table below provides a summary of the hydrology, geology and geohazard impacts of Component B.

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Impact Assessment of significance without mitigation or Commitments Management Action where

Producing factor compensation the mitigation or

Key Mitigation, Compensation or compensation measure is High Hi Moderate M Low Lo Management measures addressed in the ESMP

[+] positive, [-] negative impacts

Operation construction

Likelihood, Magnitude, Extent, Duration Predictedresidual

Hydrology, Geology and Geohazards

Placement of ✓ x Hi [-] Possible, there may be localised - [HYD-12] A risk assessment and site Lo [-] ESMP Document 8.2 towers and any contamination in the vicinity of the industrial investigation ahead of any site Section 4.2.4 excavation works areas of Kutaisi and Tskaltubo. works would be undertaken along disturbing the route of the Sairme line in contaminated former industrial areas of Kutaisi soils, causing a and Tskaltubo between KM0 and risk to human KM3. health (eg construction workers) or entering groundwater or nearby surface water

Construction ✓ ✓ Hi [-] Likely, work within or adjacent to the - [BIO- 28] No construction activities Lo [-] ESMP Document 8.2 works within or watercourse would result in sedimentation to take place within the Rioni River. Section 4.2.1 adjacent to the and erosion. The only exception to this is Rioni River passage by horse, or foot, or use of potentially a small 4x4 vehicle (outside the causing spawning season April – July) for sedimentation conductor line stringing. and erosion and also a change in the erosion

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Impact Assessment of significance without mitigation or Commitments Management Action where

Producing factor compensation the mitigation or

Key Mitigation, Compensation or compensation measure is High Hi Moderate M Low Lo Management measures addressed in the ESMP

[+] positive, [-] negative impacts

Operation construction

Likelihood, Magnitude, Extent, Duration Predictedresidual dynamics of the watercourse

Construction ✓ x M [-] Possible, depending on proximity to the - [HYD-13] All construction works to Lo [-] ESMP Document 8.2 works close to ravine, the works could result in short term avoid the unstable slopes of the Section 4.2.2 the deep ravine impacts on the ravine. deep ravine adjacent to the near to the Akhaltsikhe substation between Akhaltsikhe KM0 and KM1. Substation potentially - [HYD-14] GSE shall ensure that exacerbating there is co-ordination between the landslips, surface construction of the Sairme line runoff and (and Component C2 lines) and the erosion. Tskaltubo substation to align mitigation procedures and share use of construction facilities.

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2.2 Component B - Ozurgeti to Zoti HPP and Connection from Ozurgeti to the Paliastomi Line

2.2.1 Component B Baseline The key geomorphological, land use, hydrology and geological features are described in this section and illustrated in Figure 3 and Figure 4. The proposed route of the Guria line starts at the proposed site of the new Ozurgeti Substation in an area of farmland south of the town of Ozurgeti at an elevation of circa 100m ASL). The route takes an easterly direction and crosses over a mountainous area which reaches elevations of just over 2,400m ASL then drops down to the Zoti HPP in the Gubazeuli River gorge at an elevation of circa 550m ASL. On leaving the substation, the route crosses areas of undulating farmland as far as KM5, crossing a tributary of the Bzhuzhi River at KM3. Between KM5 and KM18, the Guria line climbs the northern side of a range of wooded hills that are situated to the southeast of Ozurgeti. The line passes over a number of watercourses including the Bzhuzhi River. The slopes of the forested valleys are steep particular as the route climbs up to Gomismta. There is no signs of landslips or erosion in this area though there has been some felling of trees and there is access here as the road climbs towards Gomismta. After Gomismta, it crosses above the tree line passing a number of small mountain watercourses. Slopes are generally not steep and there is little evidence of any significant geohazard although this area is known to suffer significant snowfall in winter. Avalanche risk cannot be ruled out on some of the steeper slopes. At KM24, the route drops down a moderately steep slope into Khanistrskali River, a tributary of the Gubazeuli River gorge. The descent is through areas of natural vegetation comprising a mosaic of woodland, and alpine meadows and scrubland. The geology underlying the route in the first few kilometres from Ozurgeti (to KM3) is characterised by undifferentiated Pleistocene strata. From KM3, the remainder of the route is through a large area of Middle Eocene marine volcanic rock, consisting of tuffaceous sandstones and breccias (hard rocks) as well as marls, shales, siltstones and some limestone. Between Ozurgeti and when it enters the Gubazeuli River gorge (KM45), the route crosses 10 watercourses, though these are in most cases streams, located on the upper slopes of the hills. The Paliastomi loop crosses an area of low lying undulating farmland for a distance of 2.7km. The geology comprises undifferentiated Pleistocene strata. The route crosses three watercourses. Geohazards have been identified as relating to the watercourse crossings which may be subject to occasional debris flow or mudflow events when there is heavy rain. In terms of geohazards, the following has been identified from preliminary observation and review of geological data: − The immediate areas around the river crossings may be subject to occasional debris flow or mudflow events when there is heavy rain.

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Figure 3 Component B Paliastomi Loop and Guria Line –from the west

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Figure 4 Component B Paliastomi Loop and Guria Line –from the north

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2.2.2 Component B Impact Assessment General impact producing factors and potential impacts and mitigation that are described in the Project Wide Assessment (Document 5.2, Volume 5 Physical Environment) are all applicable to Component B: − Land degradation. − Sedimentation in rivers and streams. − Pollution from accidental spills and leaks of hazardous substances. − Pollution from use of herbicides. − Pollution from disturbed contaminated materials on previously developed land, if present. − Damage to the line from geohazards. There are no Project Component specific impacts that are significantly different from those identified in the Project-wide assessment.

2.2.3 Component B Mitigation No site-specific measures with respect to hydrology, geology and geohazards have been identified for Component B. General mitigation measures are described in the Project Wide Assessment (Document 5.2, Volume 5 Physical Environment) for controlling many of the impacts predicted for this Project Component. The measures from the Project-wide assessment can be summarised as follows: − Measures to manage land degradation slope instability and sedimentation; − Measures to control risk of accidental spills and leaks of hazardous substances; − Use of herbicides is not permitted for the removal of trees and vegetation; − Identify the potential for contaminated land and implementation of appropriate controls; and − Management of geohazards.

2.2.4 Component B Cumulative Assessment Associated facility - Zoti HPP The Zoti HPP project is to be developed on and adjacent to the Gubazeuli River and forms an associated facility to the Guria line as this line would connect to the Zoti HPP powerhouse. The Zoti HPP project is a 44MW project which would abstract water from the Khanistrskali and Gubazeuli Rivers and pass this water through a tunnel to a powerhouse, which the Guria line would connect. The most significant impact of the Zoti HPP project would be the impact on river flows. The construction of the Guria line would not impact river flows in either the Khanistrskali or Gubazeuli Rivers. Therefore, no cumulative impact is predicted on river flows. Construction works are anticipated to occur at roughly the same time with the stringing of the Guria line requiring the completion of the Zoti HPP powerhouse. Given the proximity of the works to the Gubazeuli River there could be a cumulative impact associated with sedimentation from any uncontrolled works. However, it is anticipated that the Zoti HPP project would be subject to similar GIP measures during the construction works and that through the implementation of an ESMP there would be no noticeable cumulative impact of the two projects. Whilst a Georgian EIA2 has been prepared and there is evidence of an assessment of river flows and the aquatic environment, GSE should also liaise with the developer of the Zoti HPP to align mitigation measures for the protection of the water environment if constructed concurrently.

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− [HYD-15] GSE shall co-ordinate and liaise with the developer of the Zoti HPP project regarding the mitigation measures of construction areas used by the Zoti HPP project and the Guria line. Associated facility - 110kV Anaseuli/Kobuleti line loop-in/loop-out This is a short section of transmission line which is located in close proximity to the newly proposed Ozurgeti substation. The short loop-in / loop-out will have a very small footprint and as there are no significant watercourses and the topography is flat, no cumulative impacts are predicted. Associated facility - 110kV Chakhvi /Batumi 1 line loop-in/loop-out As for the Anaseuli to Kobuleti line a very short section of loop-in / loop out will be required and no cumulative impacts are predicted.

2.2.5 Component B Summary of Impacts and Mitigation Commitments There are no Project Component specific impacts that are significantly different from those identified in the Project-wide assessment and hence no site-specific measures.

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2.3 Component C1 –Nenskra to Mestia

2.3.1 Component C1 Baseline The key geomorphological, land use, hydrology and geological features are described below and illustrated in Figure 5. The Mestia line starts at the new Nenskra Substation at an elevation of 800m ASL, and for the first 10km takes a northerly direction in the Nenskra valley on the left bank of the Nenskra River. The route crosses areas of steep woodland, and less steep areas of subalpine meadows. It skirts around some small villages. After passing the village of Zemo Marghi at an elevation of 1,400m ASL, it turns to the east (KM9) and follows the Tita River valley up to a col at an elevation of 2,700m ASL(KM18). The land cover in the valley is steep sloped woodland, which with increased elevation becomes progressively alpine meadows and at the col (Nakra Pass) is alpine scrub and bare rock. After the Nakra Pass, the route drops down into the Nakra valley at an elevation of 1,100m ASL, through terrain that is similar to the Tita valley. The route then (from KM25) runs parallel to the right bank of the Enguri River valley across undulating terrain to Mestia, it crosses numerous small valleys and gullies at elevation varying from 1,400m to 1,700m. Land cover is wooded hillsides and area of subalpine meadows. In terms of hydrology, the Mestia line crosses several small alpine streams (at least 12). The geology of the col between Tita and Nakra is from the Triassic period, and comprises open sea terrigene turbudites. The geology of the rest of the Mestia line is Lower Middle Jurassic, with area of Toarcian-Aalenian open sea terrigene turbidites with volcanic admixture and Pliensbachian open sea black slates, tholeiitic pillow basalts and carbonate rocks. The Kavkasioni loop will run for a distance of 570m from an elevation of 688m ASL on the left bank of the Nenskra River, across the river and up the slope of the right bank of the Nenskra valley to an elevation of 841m ASL. The geology is Lower Middle Jurassic. The only watercourse crossing is that of the Nenskra River. In terms of geohazards, the following have been identified: − The col between the Nenskra and Nakra valleys may be subject to erosion and areas of slope instability. − The crossing of the Nakra and Nenskra rivers are at points where the river is in a deep, steep-sided gorge which may be subject to slope instability and avalanche risks. − The immediate areas around the river crossings may be subject to occasional debris flow or mudflow events when there is heavy rain. − The sections in the Nenskra valley and Tita valleys may be exposed to avalanche risks. − As the Mestia line nears Mestia, two tectonic-plate fault lines are crossed.

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Figure 5 Component C1 – Mestia Line

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2.3.2 Component C1 Impact Assessment General impact producing factors and potential impacts that are described in the Project Wide Assessment (Document 5.2, Volume 5 Physical Environment) are all applicable to Component C1: − Land degradation. − Sedimentation in rivers and streams. − Pollution from accidental spills and leaks of hazardous substances. − Pollution from use of herbicides. − Pollution from disturbed contaminated materials on previously developed land, if present. − Damage to the line from geohazards. Of particular note for Component C1 is the potential for a number of geohazards at the Nenskra substation. The substation is located adjacent to the Nenskra River and is generally a low lying site. There is a risk that the site could be at risk of flooding. In addition, the site is located at the foot of a steep slope that is partly forested but there is also evidence of rock scree and rock falls.

2.3.3 Component C1 Mitigation General mitigation measures are described in the Project Wide Assessment (Document 5.2, Volume 5 Physical Environment) for controlling many of the impacts predicted for this Project Component. The measures from the Project-wide assessment can be summarised as follows: − Measures to manage land degradation slope instability and sedimentation; − Measures to control risk of accidental spills and leaks of hazardous substances; − Use of herbicides is not permitted for the removal of trees and vegetation; − Identify the potential for contaminated land and implementation of appropriate controls; and − Management of geohazards. In line with the Project-wide assessment mitigation, particularly [HYD-11], particular attention would need to be taken when design measures to mitigation geohazards at the Nenskra substation. No additional mitigation needs to be identified at this stage in addition to [HYD-11]. No other site-specific measures with respect to hydrology, geology and geohazards have been identified for Component C1.

2.3.4 Component C1 Cumulative Assessment Associated facility - Nenskra HPP The Nenskra HPP project is being developed in the Nenskra Valley and the Project would connect to the Nenskra HPP powerhouse. The connection to the powerhouse is located within 100m of the Nenskra River. The powerhouse development and the associated permanent and temporary infrastructure would represent a significant engineering project and could result in impacts on water quality and surrounding runoff. The addition of the connection to the powerhouse, via a 220kV underground cable could add to the generation of sediment in surface runoff and hence have a cumulative impact. It is also possible that some parts of the construction of both projects could interact with areas that could present a geohazard such as unstable slopes or rockfalls. These would be localised issues and would need investigation and co-ordination between GSE and the Nenskra HPP developer. It is anticipated that such risks could be mitigated through the detailed design of the two projects. The Nenskra HPP project has also been the subject of an ESIA to international guidelines3 and an ESMP similar to the one proposed for this Project has been developed. It is anticipated that through the implementation of

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GIP on both projects that the impacts predicted would be avoided and as a result there would be no cumulative impact on hydrology or geology. − [HYD-16] GSE will liaise with the developer of Nenskra HPP to co-ordinate where possible the measures for the protection of the water environment and the management of geohazards during the construction of the two projects.

Cumulative development - Jvari to Nenskra 500kV transmission line This transmission line would connect into the Nenskra substation and is another project being promoted by GSE. As the investigation of a route is still being made the precise route of the line is not known though the line is expected to follow the Nenskra valley from the Enguri valley. GSE should ensure the construction of the transmission line is subject of the same measures described in this ESIA and ESMP. As a result, no cumulative impact on hydrology or geology is predicted. − [HYD-17] GSE to develop the 500kV Jvari to Nenskra project in accordance with EBRD Performance Requirements or equivalent IFI standards and GIP good international practice

Cumulative development - 110kV Transmission line from Enguri Valley to Nenskra The existing 35kV transmission line in the Enguri valley that links to Mestia is currently being upgraded and will bring a new transmission line spur at 110kV into the Nenskra valley, to service the construction of the Nenskra HPP project and the nearby Lakhami HPP project. This transmission line passes adjacent to the Nenskra substation and will run alongside the proposed Mestia line. As this transmission line is currently being constructed there is no potential for cumulative construction impacts on hydrology or geology. Cumulative development - Lakhami Hydropower project The Lakhami HPP project is located on the opposite bank of the Nenskra River to the GSE project and is currently under construction. It is expected to be fully constructed by the time construction starts on the Project. As the timing of the projects is likely to be different and there is limited spatial overlap, no cumulative construction effects will occur. Once constructed, as it is predicted that the transmission lines will have little to no effect on hydrology and geology, no cumulative effects are predicted. Cumulative development - Mestiachala HPP The Mestiachala HPP project is now operational and, therefore, there will be no cumulative construction effects. In addition, as the Mestia line connects to the kakhari substation which is located some way from the project and away from the Mestiachala River. Therefore, no operational cumulative effects on hydrology or geology are predicted to occur. Cumulative development - Dolra Hydropower project The Mestia Line crosses the Dolra River downstream of where the Dolra HPP projects would be constructed. There is no spatial overlap on the project with the exception of the need for a transmission line to pass across the Mestia line or in fact connect into the Mestia line. Information available in the Feasibility studies4 suggests that the connection would link into the existing line in the Enguri Valley which goes to Mestia and evacuates power through Mestia via the existing 110kV line that passes to Lajanuri. Assuming that both projects were constructed at the same time there could be the potential for cumulative impacts, such as increased sediment erosion effecting water quality in runoff and the nearby Dolra River. As the Project includes GIP measures in the ESMP, the likelihood of this cumulative impact occurring is low and it is not considered to result in a significant effect.

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Cumulative development - Tita Hydropower project Limited information is available on the precise location and timing of the proposals for Tita HPP project. As outlined for the Dolra project, assuming both projects were constructed at the same time there could be the potential for cumulative impacts such as increased sediment erosion effecting water quality in runoff and the nearby Tita River. As the Project includes GIP measures in the ESMP, the likelihood of this cumulative impact occurring is low and it is not considered to result in a significant effect. Cumulative development - Nakra Hydropower project (1, 2 and 3) The Mestia Line passes across the Nakra River valley. Upstream of where the Project passes is the Nakra 1, 2 and 3 HPP projects which are being constructed and soon to be operational. The Project passes close to one of the run of river sections which is being constructed currently. It is possible that the Mestia line will also provide a new transmission line connection for the Nakra HPP projects. Assuming that both projects were constructed at the same time there could be the potential for cumulative impacts such as increased sediment erosion effecting water quality in runoff and the Nakra River. As the Project includes GIP measures in the ESMP, the likelihood of this cumulative impact occurring is low and it is not considered to result in a significant effect. Cumulative development – Khudoni Hydropower project The Khudoni HPP project is downstream of the Component C1 projects and will result in the creation of a reservoir on the Enguri River. Limited information is available on whether the project is progressing but it could also result in some flooding in the lower part of the Nenskra valley. As the construction phases of the project will not overlap there will be no cumulative impacts. Also once operational, there will be no spatial overlap of the two projects and, hence, no cumulative impacts.

2.3.5 Component C1 Summary of Impacts and Mitigation Commitments The table below provides a summary of the hydrology, geology and geohazard impacts of Component C1.

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Impact Assessment of significance without mitigation or Commitments Management Action where

Producing factor compensation the mitigation or

Key Mitigation, Compensation or compensation measure is High Hi Moderate M Low Lo Management measures

addressed in the ESMP peration

[+] positive, [-] negative impacts

O Construction

Likelihood, Magnitude, Extent, Duration Predictedresidual

Hydrology, Geology and Geohazards

Potential for ✓ x Hi [-]. Possible - The substation is located − [HYD-15] GSE will liaise with the M [-] ESMP Document 8.2 geohazards at adjacent to the Nenskra River and is developer of Nenskra HPP to co- Section 3.2.1 the Nenskra generally a low lying site. There is a risk that ordinate where possible the substation the site could be at risk of flooding. In measures for the protection of the addition, the site is located at the foot of a water environment and the steep slope that is partly forested but there management of geohazards during is also evidence of rock scree and rock falls. the construction of the two projects. − [HYD-16] GSE to develop the 500kV Jvari to Nenskra project in accordance with EBRD Performance Requirements or equivalent IFI standards and GIP good international practice

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2.4 Component C2 – Lajanuri Connections to Kheledula HPP, Oni HPP and Tskaltubo

2.4.1 Component C2 Baseline Oni Line The key geomorphological, land use, hydrology and geological features are described below and illustrated in Figure 6. The route starts at the Lajanuri Substation on the right bank of the Rioni River, at an elevation of 500m ASL. The route initially heads northwards to cross a moderately steep sided ridge before crossing the Lajanuri gorge at KM5. The route then generally follows the Rioni River in an easterly direction albeit at a distance of 3-4km from the river until KM34 where the route moves down the valley side. The route reaches elevations in the order of 1,000m ASL, whereas the Rioni River is at elevations in the order of 500m ASL. From KM40, the route runs very close to the river. The land cover along the whole route is mainly woodland. The geomorphology along the whole route is characterised by undulating terrain, with the line crossing over ridges, spurs, and some shallow gullies. In terms of hydrology, the key features are as follows: − The route crosses the Lajanuri gorge, which is situated between the Lajanuri reservoir and the Rioni River; − The route also crosses two other large torrents, and several smaller streams, and − From KM40, the route runs close to the Rioni River, crossing it at six locations. In terms of geology, the route crosses several different areas: − The route between the Lajanuri Substation and the Lajanuri gorge (KM5) crosses an area of Upper Cretaceous Eocene, and Upper Eocene-Oligocene. − The route from the Lajanuri gorge (KM5) to Oni HPP crosses successively the following: (i) Undifferentiated Miocene, (ii) Lower Cretaceous with shallow marine carbonate rocks and terrigene clastics, (iii) Middle- Upper Jurassic with Bajocian calc-alcaline basaltic and andesitic shallow marine volcanic rocks, and (iv) Lower-Middle Jurassic of Toarcian-Aalenian open sea terrigene turbidites with volcanic admixture. In terms of geohazards, from a preliminary review of satellite imagery it would appear that the principal geohazards are represented by the torrents that are crossed by the transmission line, which could be subject to occasional debris flow and mud flow events.

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Figure 6 Component C2 – Oni HPP Line

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Kheledula HPP Line The key geomorphological, land use, hydrology and geological features are described below and illustrated in Figure 7. The route starts at the Lajanuri Substation and initially runs parallel to the route of the Oni HPP line, climbing up a moderately steep slope to cross a ridge. The route then drops down and traverses the moderately steep sided slope on the northern side. At KM5, the Kheledula line heads northwards to cross the Lajanuri reservoir (at an elevation of 500m ASL) where a span of approximately 1km will be required. The route climbs up from the reservoir to cross the Tskhenistskali-Rioni watershed. The route runs at a distance of 1 to 1.5km from the Tskhenistskali River, following ridges and generally gaining elevation and reaching 1,300m ASL. Land cover is woodland. From KM26, the route closely follows the meandering river on the left bank where the land cover is mostly steeply sloped woodlands. The route ends at Kheledula HPP powerhouse, 2km south of the village of Lentekhi, at an elevation of 700m ASL. In terms of hydrology, the key features are as follows: − The route closely follows the Tskhenistskali River for 6km in a steep sided valley; − The route crosses several torrents that join the Tskhenistskali River, the torrents are in steep sided gullies, − The route crosses the Lajanuri reservoir. In terms of geology, the route crosses several different areas: − As the route moves away from the Lajanuri reservoir to run parallel to the Tskhenistskali River towards the Lajanuri reservoir, it crosses successively three other types of geology: (i) an undifferentiated Miocene area; (i) a Middle-Upper Jurassic area, characterised by Bajocian calc-alcaline basaltic and andesitic shallow marine volcanic rocks, (ii) a Lower Cretaceous area with shallow marine carbonate rocks and terrigene clastics; and, (iii) a Middle-Upper Jurassic area, characterised by Bajocian calc-alcaline basaltic and andesitic shallow marine volcanic rocks and (iv) an undifferentiated Miocene area. − The section of the route which follows the Tskhenistskali River to Kheledula HPP powerhouse is located in an area where the geology is Lower-Middle Jurassic with areas of Toarcian-Aalenian open sea terrigene turbidites with volcanic admixture. In terms of geohazards, it is observed that from KM17 the route on the left bank of the Tskhenistskali River is characterised by steep slopes, gullies and torrents. The elevation of the route varies from 600m to 1,180m ASL. The top of the mountain to the east of the route where the largest gullies and torrents start is at 2,400m ASL. Parts of this area maybe subject to erosion from rainfall runoff and instability. The torrents may represent a risk of debris flow or mudflow events. There may be a risk of avalanche.

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Figure 7 Component C2 – Kheledula HPP Line

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Lechkhumi Line The key geomorphological, land use, hydrology and geological features are described below and illustrated in Figure 8 and Figure 9. The route starts at the Lajanuri Substation on the right bank of the Rioni River at an elevation of approximately 500m ASL. The route takes a southerly direction, crossing the Rioni River and climbing a moderately steep wooded slope to an elevation of 850m ASL over a distance of 1km. The route then continues is a general southerly direction at a fairly constant elevation. Between KM5 and KM8, the route follows the edge of the cliffs on the left bank of the Rioni River in the vicinity of the village of Tvishi. However, the route is set back about 400m from the cliffs. Between KM9 and KM15, the route crosses a wide area of undulating farmland at elevations in the order of 500-700m ASL, to skirt in a meandering manner round the base of some wooded hills, crossing small valleys and shallow gullies. At KM28, the route drops down into the Rioni River valley, to an elevation of 200m ASL and crosses the river at Zhoneti (close to KM30). The route then crosses areas of farmland (KM30 to KM31), gaining elevation and crosses the range of hills that lie between the Rioni River valley and Tskaltubo (KM31 to KM41. These hills reach elevations in the order of 300-500m ASL. As the route drops down into Tskaltubo, it crosses a mosaic of woodland and farmland situated to the east and south of Tskaltubo (KM41 to KM47). In terms of hydrology, the mean feature is the Rioni River which is crossed at two locations; at the Lajanuri Substation (KM1) and at Zhoneti (close to KM30). In terms of geology the route from Lajanuri to Tskaltubo crosses successively the following types of geology: − Upper Cretaceous Eocene and Upper Eocene-Oligocene. − Middle-Upper Jurassic with Bajocian calc-alcaline basaltic and andesitic shallow marine volcanic rocks, and − Lower-Middle Jurassic of Toarcian-Aalenian open sea terrigene turbidites with volcanic admixture. In terms of geohazards, the review has not identified obvious areas of slope instability or other geohazards. New Derchi Line The key geomorphological, land use, hydrology and geological features are described below and illustrated in Figure 8 and Figure 9. The route starts at the Lajanuri Substation on the right bank of the Rioni River at an elevation of approximately 500m ASL and takes a southerly direction to Tskaltubo following a route that is close to that of the Lechkhumi Line described above and also the route of the existing Derchi line. There are two loop-in / loop-out connections to connect to the proposed Namakhvani HPP project. Both of these lines are routed towards the Rioni River. Lajanuri HPP Line The key geomorphological, land use, hydrology and geological features are described below and illustrated in Images 9 and 10. The route starts at the Lajanuri Substation on the right bank of the Rioni River at an elevation of approximately 500m ASL. The route drops down southwards from the proposed substation to cross the Rioni River, before turning at KM1 generally eastwards rising steadily up to an elevation of 660m ASL. The route then turns north again passing down the gentle slope to re-cross the river and reach the Lajanuri HPP powerhouse close to Alpana at an elevation of 370m ASL. In terms of hydrology, the mean feature is the two crossings of the Rioni River. The geology type is Undifferentiated Miocene. In terms of geohazards, from preliminary review of satellite imagery it would appear that the principal hazard is flood events, debris flow or mudflow events in the Rioni River that is crossed by the route.

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Figure 8 Component C2 – Lechkhumi Line, New Derchi Line, Lajanuri HPP Line and Existing Imereti Line – view from south

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Figure 9 Component C2 – LechkhumI Line , New Derchi Line, Lajanuri HPP line and Existing Imereti Line – view from north

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2.4.2 Component C2 Impact Assessment General impact producing factors and potential impacts that are described in the Project Wide Assessment (Document 5.2, Volume 5 Physical Environment) are all applicable to Component C2: − Land degradation. − Sedimentation in rivers and streams. − Pollution from accidental spills and leaks of hazardous substances. − Pollution from use of herbicides. − Pollution from disturbed contaminated materials on previously developed land, if present. − Damage to the line from geohazards. The implementation of the mitigation measures (described in the Project-Wide Assessment) should prevent land degradation and increased risk of slope instability occurring, and prevent cumulative impacts occurring.

2.4.3 Component C2 Mitigation No site-specific measures with respect to hydrology, geology and geohazards has been identified for Component C2. General mitigation measures are described in the Project Wide Assessment (Document 5.2, Volume 5 Physical Environment) for controlling many of the impacts predicted for this Project Component. The measures from the Project-wide assessment can be summarised as follows: − Measures to manage land degradation slope instability and sedimentation; − Measures to control risk of accidental spills and leaks of hazardous substances; − Use of herbicides is not permitted for the removal of trees and vegetation; − Identify the potential for contaminated land and implementation of appropriate controls; and − Management of geohazards.

2.4.4 Component C2 Cumulative Assessment Associated facility - Tskaltubo Substation This development is an associated facility of the Lechkhumi line (and Sairme Line in Component A) with the Lechkhumi line connecting into the new Tskaltubo substation. There are no watercourses in the area of the substation other than small field drains and the topography of the area is flat. It is not predicted that either project would result in significant impacts. The only potential impact which could occur and be regarded as a cumulative impact would be the excavation of material deemed contaminated from the substation site and the tower locations of the transmission line. As both projects are the subject of an ESIA in accordance with international guidelines, both projects would be subject to GIP and measures outlined within an ESMP regarding the handling of soils and contaminated material. Through the implementation of the ESMP on both projects no significant cumulative impacts are likely to occur. A mitigation requirement outlined Section 2.1.4 regarding the Sairme Line in Component A also applies to this combination of projects. Associated facility - Namakhvani HPP, Kheledula HPP and Oni HPP projects Each of these HPP projects forms an associated facility of the Project and the Component C2 transmission lines (New Derchi, Kheledula HPP and Oni HPP) will connect to the powerhouse facilities being constructed by these HPP projects. As each of the powerhouse projects would be close to, adjacent or in the case of the switchyard at the Upper Namakhvani project directly within the Rioni River, there is the potential for these projects to impact the water environment during construction. Geohazards in the vicinity of each powerhouse location is

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Georgian State Electrosystem (GSE) Environmental and Social Impact Assessment SLR Ref No:901.12.1 Volume 5 Physical Environment, Document 5.2 Project Component Assessments June 2020 expected to be low and on that basis no cumulative impacts are predicted. As the Kheledula HPP project has undertaken an ESIA it is anticipated that the implementation of GIP would avoid any cumulative impacts. For Namakhvani and Oni HPP, these projects have been subject to EIA to meet local legislation and have been approved by the Ministry of Environmental Protection and Agriculture. It is expected that permits for construction would require the implementation of measures during construction to control impacts on the water environment. However, once operational the HPP projects would affect flows in the watercourses impacted by the HPP offtakes. The transmission lines of Component C2 would have no impact on river flows and hence there is no cumulative operational impact on hydrology and geology. − [HYD-18] GSE will liaise with the developers of Namkhvani, Kheledula and Oni HPP projects to co-ordinate where possible the measures for the protection of the water environment during the construction of the two projects. Whilst there is little potential for cumulative effects to occur, each of the HPP projects do have significant potential to effect the hydrology of the Rioni and Tskhenistskali Rivers. Such impacts comprise changes to river flows, changes in sedimentation rates and erosion potential and possible impacts on water quality. GSE will need to engage with the developers of these projects and MEPA as they come forward for construction to understand the measures outlined within environmental management plans for the avoidance of significant impacts. − [HYD-19] GSE shall liaise with MEPA and with the developers of Namakhvani HPP, Kheledula HPP and Oni HPP to understand the necessary environmental permits, the detailed measures planned to control the impacts on hydrology and whether there are any implications on the design of the transmission line routes. Cumulative development - Tskaltubo to Jvari 500kV transmission line The Component C2 transmission lines (and the Sairme line in Component A) and the Tskaltubo to Jvari line connect into the Tskaltubo substation. As discussed for the Tskaltubo substation cumulative assessment, there are no watercourses other than field drains in the vicinity of the substation and the transmission lines. As the transmission lines travel in opposite directions there is no likelihood of any hydrological or geological cumulative impact.

2.4.5 Component C2 Summary of Impacts and Mitigation Commitments There are no Project Component specific impacts that are significantly different from those identified in the Project-wide assessment and hence no site-specific measures.

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2.5 Component D – Reinforcement of the transmission infrastructure in Kakheti

2.5.1 Component D Baseline The key geomorphological, land use, hydrology and geological features are described below and illustrated in Figure 10. The route of the Gurjaani and Akhmeta lines start at the existing Gurjaani Substation at an elevation of circa 570m ASL and follow a generally linear direction towards the northwest to terminate at the existing Akhmeta Substation, 2km north of the centre of the town of Akhmeta at an elevation of circa 550m ASL. Most of the land crossed by the route is farmland, though there are some relatively small areas of woodland. The route of the Gurjaani line follows the base of the northern slopes of the Tsiv-Gombori Range, running parallel to the Alazani River at a distance of approximately 10km. The route follows the base of the hills, and skirts around several small urban areas to finish at Telavi. The Gurjaani line would make approximately 18 watercourse crossings some small and other quite large, including of the Kisiskhevi, Vantiskhev Mghvriekhevi, Chermiskhevi, Papriskhevi, and Khrukiaskhevi rivers. The watercourses in this region are typically dry ephemeral rivers but their presence is indicative of high flow events most probably after heavy rainfall. The streams descend from the hills located to the southwest of the route, cross the route in a perpendicular direction and flow into the Alazani River which flows in a south-easterly direction. From Telavi, the Akhmeta line also follows the base of the Tsiv-Gombori Range as far as KM18 where the route turns northwards to cross low lying vineyards and farmland to a point close to the Alazani River (at KM25) where the line turns north-westwards once more to run more closely parallel to the river for the final 9km to terminate at the existing substation. As with the Gurjaani line, the Akhmeta line crosses a number of watercourses and again all of which are mostly dry river beds. The geology underlying Component D is characterised by undifferentiated Pleistocene strata. The geology of the hills located to the southwest is from the Upper Pliocene – Quaternary, and comprises rock whose origins are marine molasse, continental molasse and mix molasse. In terms of geohazards it would appear that the principal hazard is flood events, debris flow or mudflow events in the watercourses that are crossed by the routes. As this component also comprises a number of existing substations, it has been seen following site walkover surveys, that some of the old substation infrastructure is in a poor state of repair and in some cases presents a source of contamination to soils. Leaking transformer oil and poor bunding provisions were identified at all existing substations in Kakheti (refer to Photo 1 to 4). In addition to oil spills and leaks, asbestos was also found to be present on the Kakheti substations. It has been used as a building material and sheets of asbestos were also seen lying with substation grounds. It is possible that further asbestos may be present within the underlying soil of substations.

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Photo 1 - Leaking transformer at Gurjaani substation and Photo 2 - Leaking transformer at Telavi substation and no inadequate bunding bunding

Photo 3 - Leaking disused transformers without bunding at Akhmeta Photo 4 - Leaking transformer at Tsinandali substation substation

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Figure 10– Component D – Gurjaani and Akhmeta Lines

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2.5.2 Component D Impact Assessment General impact producing factors and potential impacts that are described in the Project-wide Assessment (Document 5.2, Volume 5 Physical Environment) are all applicable to Component D: − Land degradation; − Sedimentation in rivers and streams; − Pollution from accidental spills and leaks of hazardous substances; − Pollution from use of herbicides; − Pollution from disturbed contaminated materials on previously developed land, if present; and − Damage to the line from geohazards. The main differences on Component D relate to the need to rehabilitate existing substations (Gurjaani, Mukuzani, Telavi, Akhmeta and Tsinandali). It is known from site visits that a number of the existing substation transformers have been leaking transformer oil and that bunding is poor and ineffective (refer to Photo 1 to 4). Therefore, it is predicted that soils beneath existing transformers in substations would be contaminated with transformer oil. This transformer oil could also contain PCBs. Oil containing between 50 ppm PCBs and above is considered to be polluted with PCB and specific methods for disposal are necessary (e.g. specific incineration plants). According to EU Directive 75/439/EEC on Waste Oils and amendments, oil containing less than 50 ppm PCB can be burned in a regular incineration plant. In April 2018, GSE joined a project organised by organised by the Ministry of Environmental Protection and Agriculture of Georgia called ‘PCB Free Power Supply in Georgia.’ The Project is financed by the Global Environmental Fund (GEF), and is implemented by UN Industrial Development Organization (UNIDO). At this stage, the project is testing for PCB presence across Georgia. At the time of writing, no information was available on PCB in the Kakheti substations. However, GSE has confirmed its intention to undertake such tests of existing transformer and these will be accelerated if necessary to feed into the requirements of this Project. However, for the purposes of this assessment we have assumed that PCBs are present and that works to rehabilitate the substations such as improving the bunding around transformers to be retained could mobilise PCBs and oil contamination. This could be a health impact to construction workers and it could also result in the mobilisation into the water environment. In addition, the known presence of asbestos at the Kakheti substations presents a risk to construction workers and will require a plan for its identification, removal and disposal.

2.5.3 Component D Mitigation General mitigation measures are described in the Project Wide Assessment (Document 5.2, Volume 5 Physical Environment) for controlling many of the impacts predicted for this Project Component. The measures from the Project-wide assessment can be summarised as follows: − Measures to manage land degradation slope instability and sedimentation; − Measures to control risk of accidental spills and leaks of hazardous substances; − Use of herbicides is not permitted for the removal of trees and vegetation; − Identify the potential for contaminated land and implementation of appropriate controls; and − Management of geohazards. In addition to the measures outlined above, and in the Project-wide assessment, the substations in Component D would require detailed investigation to understand the presence or otherwise of PCB

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Georgian State Electrosystem (GSE) Environmental and Social Impact Assessment SLR Ref No:901.12.1 Volume 5 Physical Environment, Document 5.2 Project Component Assessments June 2020 contamination. In addition, a full suite of soil quality testing would be undertaken to assess the extent of contamination, the risks of excavation works at the site, risks to construction workers and the need for any remedial works and offsite disposal. Where it is confirmed that PCBs are present either in existing transformer oil or as contamination within underlying soils, a plan for its safe removal and disposal would be needed. The Contractor will develop the plan as part of the Site Waste Management Plan. Hazardous material, including PCBs, will need to be removed from site by a specialist contractor and taken to a disposal site that is licenced to take such material. This must be undertaken in accordance with the Stockholm Convention. GSE has confirmed that such a site, for PCBs, does not exist in Georgia. The Contractor will therefore, procure the services of a specialist contractor who can remove and transport the material safely to a neighbouring country where there are such facilities for PCB treatment and disposal. The transport of materials must be undertaken in accordance with the Basel Convention on the Control of Transboundary Movements of Hazardous Waste and their Disposal. Measures will also be implemented for the identification and safe removal and disposal of asbestos which is known to be present on the Kakheti substations. Mitigation Requirement − [HYD-20] GSE will provide details of PCBs in transformer oil or undertake tests of any transformer oil to be removed from transformers. − [HYD-21] Undertake a site investigation to determine the presence of PCB contamination (e.g. spills or leaks) and asbestos and to investigate the presence of other contaminants to determine any required remedial works; − [HYD-22] Removal of any contaminated soil (including PCBs and asbestos) and disposal to be via a contractor licensed to take hazardous waste. Where PCBs exist the disposal is to be done in accordance with the Stockholm Convention on Persistent Organic Pollutants and the Basel Convention on the Control of Transboundary Movements of Hazardous Waste and their Disposal.

2.5.4 Component D Cumulative Assessment No cumulative impacts have been identified as there are no cumulative projects in this component.

2.5.5 Component D Transboundary Assessment As noted in the previous section, should any contaminated oils or soils requiring disposal be found to contain PCBs, these would need to be disposed to a hazardous waste facility which is not currently possible within Georgia. Therefore, this waste would need to be exported to a nearby country with adequate disposal or treatment facilities. No significant transboundary impacts are anticipated with such a movement of hazardous waste as the volume of material is expected to be small and the receiving facility is expected to be licenced to receive the material. Transportation of the material would also be undertaken in accordance with GIP and the Basel Convention on the Control of Transboundary Movements of Hazardous Waste and their Disposal. Mitigation outlined within [HYD-9] and [HYD-10] address this requirement.

2.5.6 Component D Summary of Impacts and Mitigation Commitments The table below provides a summary of the hydrology, geology and geohazard impacts of Component D.

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Impact Assessment of significance without mitigation or Commitments Management Action where

Producing factor compensation the mitigation or

Key Mitigation, Compensation or compensation measure is High Hi Moderate M Low Lo Management measures addressed in the ESMP

[+] positive, [-] negative impacts

operation Construction

Likelihood, Magnitude, Extent, Duration Predictedresidual

Hydrology, Geology and Geohazards

Potential oil ✓ x Hi [-].Likely, the age of the substations and the - [HYD-19] GSE will provide details of Lo [-] ESMP Document 8.3 leakage from poor secondary containment may have PCBs in transformer oil or undertake Section 4.6.5 existing resulted in contamination of soils with oil tests of any transformer oil to be transformers at and highly hazardous PCBs removed from transformers. existing - [HYD-20] Undertake a site substations and investigation to determine the the potential presence of PCB contamination (e.g. contamination of spills or leaks) and asbestos and to this with PCBs. investigate the presence of other contaminants to determine any required remedial works; - [HYD-21] Removal of any contaminated soil (including PCBs and asbestos) and disposal to be via a contractor licensed to take hazardous waste. Where PCBs exist the disposal is to be done in accordance with the Stockholm Convention on Persistent Organic Pollutants and the Basel Convention on the Control of Transboundary Movements of Hazardous Waste and their Disposal.

Potential ✓ x Hi [-].Possible due to the age of the substations - [HYD-21] Removal of any Lo ESMP Document 8.3 presence of contaminated soil (including PCBs Section 4.6.5 asbestos in and asbestos) and disposal to be via Final – Disclosure Authorized Page 74

Georgian State Electrosystem (GSE) Environmental and Social Impact Assessment SLR Ref No:901.12.1 Volume 5 Physical Environment, Document 5.2 Project Component Assessments June 2020

Impact Assessment of significance without mitigation or Commitments Management Action where

Producing factor compensation the mitigation or

Key Mitigation, Compensation or compensation measure is High Hi Moderate M Low Lo Management measures addressed in the ESMP

[+] positive, [-] negative impacts

operation Construction

Likelihood, Magnitude, Extent, Duration Predictedresidual existing a contractor licensed to take substations hazardous waste. Where PCBs exist the disposal is to be done in accordance with the Stockholm Convention on Persistent Organic Pollutants and the Basel Convention on the Control of Transboundary Movements of Hazardous Waste and their Disposal.

Final – Disclosure Authorized Page 75

Georgian State Electrosystem (GSE) Environmental and Social Impact Assessment SLR Ref No:901.12.1 Volume 5 Physical Environment, Document 5.2 Project Component Assessments June 2020

APPENDIX A - PHOTOGRAPHS ILLUSTRATING ASPECTS OF THE LANDSCAPE BASELINE CONTEXT OF EACH COMPONENT

Final – Disclosure Authorized Page 76

Georgian State Electrosystem (GSE) Environmental and Social Impact Assessment SLR Ref No:901.12.1 Volume 5 Physical Environment, Document 5.2 Project Component Assessments June 2020

Component A

Low lying landscape south west of Kutaisi (Sairme Line KM13)

River near Inashauri (Sairme Line KM26)

Georgian State Electrosystem (GSE) Environmental and Social Impact Assessment SLR Ref No:901.12.1 Volume 5 Physical Environment, Document 5.2 Project Component Assessments June 2020

Wooded uplands south of DZulukhi (Sairme Line KM33)

Uplands NE of Namniauri (Sairme Line KM60)

Georgian State Electrosystem (GSE) Environmental and Social Impact Assessment SLR Ref No:901.12.1 Volume 5 Physical Environment, Document 5.2 Project Component Assessments June 2020

Uplands NE of Namniauri (Sairme Line KM63)

Landscape in the southern part of Component A1 (Sairme Line KM93)

Georgian State Electrosystem (GSE) Environmental and Social Impact Assessment SLR Ref No:901.12.1 Volume 5 Physical Environment, Document 5.2 Project Component Assessments June 2020

Existing Akhaltsikhe Substation

Existing overhead line near the border with Turkey (Tao Line KM31)

Georgian State Electrosystem (GSE) Environmental and Social Impact Assessment SLR Ref No:901.12.1 Volume 5 Physical Environment, Document 5.2 Project Component Assessments June 2020

Component B

Low lying landscape south of Ozurgeti (Guria Line KM0)

River near Kvachalati (Guria Line KM3)

Georgian State Electrosystem (GSE) Environmental and Social Impact Assessment SLR Ref No:901.12.1 Volume 5 Physical Environment, Document 5.2 Project Component Assessments June 2020

Wooded slopes south of Gogieti (Guria Line KM7)

Wooded hillsides south of Gomi (Guria Line KM12)

Georgian State Electrosystem (GSE) Environmental and Social Impact Assessment SLR Ref No:901.12.1 Volume 5 Physical Environment, Document 5.2 Project Component Assessments June 2020

Landscape in the vicinity of Bakhmaro (Guria Line KM33)

Landscape in the vicinity of Bakhmaro (Guria Line KM34)

Georgian State Electrosystem (GSE) Environmental and Social Impact Assessment SLR Ref No:901.12.1 Volume 5 Physical Environment, Document 5.2 Project Component Assessments June 2020

Wooded hillside in the vicinity of Chkhakoura (Guria Line KM37)

Wooded hillsides between Chkhakoura and Zoti HPP powerhouse (Guria Line KM40)

Georgian State Electrosystem (GSE) Environmental and Social Impact Assessment SLR Ref No:901.12.1 Volume 5 Physical Environment, Document 5.2 Project Component Assessments June 2020

Valley in the vicinity of Zoti HPP powerhouse (Guria Line KM41)

Georgian State Electrosystem (GSE) Environmental and Social Impact Assessment SLR Ref No:901.12.1 Volume 5 Physical Environment, Document 5.2 Project Component Assessments June 2020

Component C1

Valley south of Nenskra (Mestia Line KM0/Kavkasioni Loop)

Valley above Kvemo Marghi (Mestia Line KM3)

Georgian State Electrosystem (GSE) Environmental and Social Impact Assessment SLR Ref No:901.12.1 Volume 5 Physical Environment, Document 5.2 Project Component Assessments June 2020

Valley sides near Zemo Marghi (Mestia Line KM8)

Nakra valley (Mestia Line KM25)

Georgian State Electrosystem (GSE) Environmental and Social Impact Assessment SLR Ref No:901.12.1 Volume 5 Physical Environment, Document 5.2 Project Component Assessments June 2020

Uplands and valet near Shdikhiri (Mestia Line KM25)

Pastures near Paledi (Mestia Line KM33)

Georgian State Electrosystem (GSE) Environmental and Social Impact Assessment SLR Ref No:901.12.1 Volume 5 Physical Environment, Document 5.2 Project Component Assessments June 2020

Settlement and uplands near Katskhi (Mestia Line KM36)

Settlement and uplands near Katskhi (Mestia Line KM37)

Georgian State Electrosystem (GSE) Environmental and Social Impact Assessment SLR Ref No:901.12.1 Volume 5 Physical Environment, Document 5.2 Project Component Assessments June 2020

Valley near Kartvani (Mestia Line KM43)

Settlement pattern and mountains near Sidianari, Shkaleri and Ienashi (Mestia Line KM48)

Georgian State Electrosystem (GSE) Environmental and Social Impact Assessment SLR Ref No:901.12.1 Volume 5 Physical Environment, Document 5.2 Project Component Assessments June 2020

Valley north east of Pechuari (Mestia Line KM50)

Existing overhead lines near Mestia (Mestia Line KM51)

Georgian State Electrosystem (GSE) Environmental and Social Impact Assessment SLR Ref No:901.12.1 Volume 5 Physical Environment, Document 5.2 Project Component Assessments June 2020

Mestia (Mestia Line KM53)

Existing overhead line and substation near Ushguli (Mestia Line KM55)

Georgian State Electrosystem (GSE) Environmental and Social Impact Assessment SLR Ref No:901.12.1 Volume 5 Physical Environment, Document 5.2 Project Component Assessments June 2020

Component C2

Lajanuri Reservoir (Kheledula HPP Line KM7)

Valley near Orbeli ( Kheledula HPP Line KM11)

Georgian State Electrosystem (GSE) Environmental and Social Impact Assessment SLR Ref No:901.12.1 Volume 5 Physical Environment, Document 5.2 Project Component Assessments June 2020

River and wooded hillsides near Rtskhmeluri (Kheledula HPP Line KM11)

Kvedreshi (Kheledula HPP Line KM22)

Georgian State Electrosystem (GSE) Environmental and Social Impact Assessment SLR Ref No:901.12.1 Volume 5 Physical Environment, Document 5.2 Project Component Assessments June 2020

River and wooded valley sides south of Lentekhi (Kheledula HPP Line KM31)

Valley and existing overhead line south of Lentekhi (Kheledula HPP Line KM32)

Georgian State Electrosystem (GSE) Environmental and Social Impact Assessment SLR Ref No:901.12.1 Volume 5 Physical Environment, Document 5.2 Project Component Assessments June 2020

Settled hillside near Kvemo Zhoshkha (Oni HPP Line KM16)

Wooded hillside above Pirveli Tola (Oni HPP Line KM17)

Georgian State Electrosystem (GSE) Environmental and Social Impact Assessment SLR Ref No:901.12.1 Volume 5 Physical Environment, Document 5.2 Project Component Assessments June 2020

Wooded hillside above Khvanchkara (Oni HPP Line KM22)

Valley north of Ghviara (Oni HPP Line KM28)

Georgian State Electrosystem (GSE) Environmental and Social Impact Assessment SLR Ref No:901.12.1 Volume 5 Physical Environment, Document 5.2 Project Component Assessments June 2020

Hillsides above Tsesi (Oni HPP Line KM35)

Wooded hillsides near Sori (Oni HPP Line KM43)

Georgian State Electrosystem (GSE) Environmental and Social Impact Assessment SLR Ref No:901.12.1 Volume 5 Physical Environment, Document 5.2 Project Component Assessments June 2020

Existing overhead lies near Sori (Oni HPP Line KM44)

Rioni valley near Akhali Chordi (Oni HPP Line KM49)

Georgian State Electrosystem (GSE) Environmental and Social Impact Assessment SLR Ref No:901.12.1 Volume 5 Physical Environment, Document 5.2 Project Component Assessments June 2020

River Rioni valley near Akhali Chordi (Oni HPP Line KM49)

Valley side west of Alpana (Lechkhumi Line/ Lajanuri HPP Line/Oni HPP Line/New Derchi Line KM0)

Georgian State Electrosystem (GSE) Environmental and Social Impact Assessment SLR Ref No:901.12.1 Volume 5 Physical Environment, Document 5.2 Project Component Assessments June 2020

Rioni Valley and electricity transmission infrastructure near Alpana (Lajanuri HPP Line KM3)

Wooded hillsides above Sachkheuri (Lechkhumi Line KM13, New Derchi Line KM14)

Georgian State Electrosystem (GSE) Environmental and Social Impact Assessment SLR Ref No:901.12.1 Volume 5 Physical Environment, Document 5.2 Project Component Assessments June 2020

Existing overhead lines north east of Rioni (New Derchi Line KM28)

Existing overhead lines east of Zhoneti (Lechkhumi Line KM33)

Georgian State Electrosystem (GSE) Environmental and Social Impact Assessment SLR Ref No:901.12.1 Volume 5 Physical Environment, Document 5.2 Project Component Assessments June 2020

Existing overhead lines west of Opurchkheti (New Derchi Line KM34)

Low lying landscape north west of Kutaisi (Lechkhumi Line KM42, New Derchi Line KM41)

Georgian State Electrosystem (GSE) Environmental and Social Impact Assessment SLR Ref No:901.12.1 Volume 5 Physical Environment, Document 5.2 Project Component Assessments June 2020

Component D

Valley sides to the south west of Gurjaani (Gurjaani Line KM2)

Existing overhead line near Chumlaki (Gurjaani Line KM3)

Georgian State Electrosystem (GSE) Environmental and Social Impact Assessment SLR Ref No:901.12.1 Volume 5 Physical Environment, Document 5.2 Project Component Assessments June 2020

Valley sides south west of Chumlaki (Gurjaani Line KM3)

River channel north west of Chumlaki (Gurjaani Line KM4)

Valley sides west of Zegaani (Gurjaani Line KM9)

Georgian State Electrosystem (GSE) Environmental and Social Impact Assessment SLR Ref No:901.12.1 Volume 5 Physical Environment, Document 5.2 Project Component Assessments June 2020

Landscape south west of Akura (Gurjaani Line KM20)

River channel west of Akura (Gurjaani Line KM21)

Georgian State Electrosystem (GSE) Environmental and Social Impact Assessment SLR Ref No:901.12.1 Volume 5 Physical Environment, Document 5.2 Project Component Assessments June 2020

Existing overhead line west of Vanta (Gurjaani line KM22)

Existing overhead line west of Tsinandali (Gurjaani line KM26)

Georgian State Electrosystem (GSE) Environmental and Social Impact Assessment SLR Ref No:901.12.1 Volume 5 Physical Environment, Document 5.2 Project Component Assessments June 2020

Wooded hillside west of Telavi (Akhmeta Line KM6)

Existing overhead line west of Ikalto (Akhmeta Line KM14)

Georgian State Electrosystem (GSE) Environmental and Social Impact Assessment SLR Ref No:901.12.1 Volume 5 Physical Environment, Document 5.2 Project Component Assessments June 2020

Wooded hills and pastures south west of Atskuri (Akhmeta Line KM15)

Wooded hills and pastures south west of Atskuri (Akhmeta Line KM16)

Georgian State Electrosystem (GSE) Environmental and Social Impact Assessment SLR Ref No:901.12.1 Volume 5 Physical Environment, Document 5.2 Project Component Assessments June 2020

River channel west of Atskuri (Akhmeta Line KM17)

Pasture and wooded slopes overlooking the valley (Akhmeta Line KM18)

Georgian State Electrosystem (GSE) Environmental and Social Impact Assessment SLR Ref No:901.12.1 Volume 5 Physical Environment, Document 5.2 Project Component Assessments June 2020

Low lying agricultural land to the north of Kistauri (Akhmeta Line KM27)

View across valley from near Sachale (Akhmeta Line KM27)

Georgian State Electrosystem (GSE) Environmental and Social Impact Assessment SLR Ref No:901.12.1 Volume 5 Physical Environment, Document 5.2 Project Component Assessments June 2020

Landscape east of Akhmeta (Akhmeta Line KM30)

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