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Initial Environmental Examination

February 2014

ARM: Water Supply and Sanitation Sector Project — Additional Financing Improvement of Region Settlements Water Supply System

This Initial Environmental Examination is a document of the borrower. The views expressed herein do not necessarily represent those of ADB’s Board of Directors, Management, or Staff, and may be preliminary in nature.

In preparing any country program or strategy, financing any project, or by making any designation of or reference to a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area.

HGSN Ltd. -JINJ Ltd. Water Supply and Sanitation Sector Project - Additional Financing

STATE COMMITTEE OF WATER SYSTEM UNDER THE RA MINISTRY FOR TERRITORIAL GOVERNANCE “ARMWATERSEWERAGE” CJSC

ASIAN DEVELOPMENT BANK FUNDED

WATER SUPPLY AND SANITATION SECTOR PROJECT - ADDITIONAL FINANCING

Date of preparation 15.08.2013 Date of revision 05.02.2014

V SUBPROJECT L2860-ICB-1-05: IMPROVEMENT OF TAVUSH REGION SETTLEMENTS WATER SUPPLY SYSTEM

INITIAL ENVIRONMENTAL EXAMINATION

Yerevan, February, 2014

Subproject V -Preliminary Design 2 HGSN Ltd. -JINJ Ltd. Water Supply and Sanitation Sector Project - Additional Financing

STATE COMMITTEE OF WATER SYSTEM UNDER THE RA MINISTRY FOR TERRITORIAL GOVERNANCE “ARMWATERSEWERAGE” CJSC

ASIAN DEVELOPMENT BANK FUNDED

WATER SUPPLY AND SANITATION SECTOR PROJECT - ADDITIONAL FINANCING

Subproject V IMPROVEMENT OF TAVUSH REGION WATER SUPPLY SYSTEMS

INITIAL ENVIRONMENTAL EXAMINATION

( and towns of Tavush region, RA)

HGSN Ltd, Director V. Hovasapyan

Environmental expert K.Sahakyan

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TABLE OF CONTENTS

1. Scope of Work ...... 5 2. Description of the Existing Water Supply and Sewage Systems ...... 5 3. Geographical Location and Climate of the Settlements ...... 6 4. 4. Biodiversity and Specially Protected Areas ...... 7 5. Environmental Impact Assessment ...... 8 Appendix 1. Checklist for Quick Environmental Evaluation ...... 10 Appendix 2. Tavush subproject layout ...... 13

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1. Scope of Work

The aim of this subcomponent of the subproject is to improve the drinking water supply systems of the towns of Noyemberyan and Berd in Tavush region, RA within the framework of the project. The priority is to improve the water supply systems of the settlements. The works carried out for the improvement of the water supply systems of the settlements of cities of Noyemberyan and Berd include: . Reconstruction of the external conduit - de200-de300 with steel pipes, L=300m in length . Construction of polyethylene pipelines de50-de250, L=50590m in length in the distribution network . Construction of water-metering units and entry lines of private houses with polyethylene pipes de20-32 for 2770 subscribers . Construction of a total of 23 valve wells . Construction of 97 buried valve junctions . Construction of DRRs with the capacities of 250, 300 and 500 m3, construction of a chlorination station. The number of population of Noyemberyan and Berd towns is 14130 people at the time of 01.01.2012, the population in Noyemberyan is 5630 people, and in Berd – 8500 people. The overall number of subscribers is 1270 in Noyemberyan town, and 1717 in Berd town. The index of annual growth of population is 0.43% according to the published data of “Armenian Demographic Handbook 2012”. As a result of project implementation all the inhabitants of the communities will be provided with efficient drinking water and regular water supply.

2. Description of the Existing Water Supply and Sewage Systems

The water supply of Noyemberyan town included in the project is carried out from the deep wells of “Berdavan” in a mechanical way and from resources of “Gij Sar”, “Vararaghbyur”, “Spitakashen”, “Srotsahank” by gravity. The water taken out of “Gij Sar” is given to DRR-s by pipes for about 56km in length and ø150- 250mm in diameter. The DRR-s have sanitary zone in the area of which there is a chlorine station and a guard house. Some sections of the pipeline of “Gij Sar” are outworn and are subjected to replacement. The waters of “Varar Aghbyur” are also gathered in the DRR-s, from which only one is exploited. The outlet of “Spitakashen” springs with pipeline which is in good condition and about 5-6 km in length and ø125mm in diameter is transmitted to the town.

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The water supply system of Noyemberyan town was planned and constructed by the means of “AWS” CJSC from the resources of “Srotsahank”. The system includes a pipeline ø110 mm in diameter and 5km in length and a catchment structure. The water supply of Berd town is generally implemented from rivers Tavush, Hakhum and Khndzorut, the water of which is processed in the treatment station of Berd town. The water to be purified enters the station by pipelines 300mm in diameter.There the water undergoes mechanical and biological purification afterwards it is given to the consumers. The water supply of Berd town is implemented also from another resources, such as Sharape”, “Miji”, “Sako” etc. The water is moved to the town distribution network by cast iron pipes ø150-50mm from catchment construction built in the canyon of Sharape. In 2009-2011 the water purification station of Berd town was totally upgraded and modernization activities of “Berdavan” pumping station were implemented with financing of Asian Development Bank. The reconstruction activities of distribution networks and construction of new pipelines were also implemented in two settlements with the help loan projects of Asian Development Bank and World Bank. The majority of water supply distribution networks of inhabitations is technically outworn and collapsed. There are big wastages. The distribution networks are described as having insufficient water quantity and lack of pressure. Some DRR-s are in a tumble down state and aren’t exploited that’s why the water is immediately provided to the distribution network. There are several operating sewage systems in the towns of Noyemberyan and Berd. The drainage removed from the systems flow into rivers Yelak and Tavush without treatment as the existing local treatment stations do not operate.

3. Geographical Location and Climate of the Settlements

The towns of Noyemberyan and Berd included in the framework of the subproject are situated in Tavush region. The region is situated in the north-eastern part of the Republic of , it occupies 2704 m2 area. Noyemberyan town is situated in the northern part of Tavush region at a distance of 187km from . And Berd town is in the north-eastern part of the region at a distance of 202km from Yerevan. The regional centre is town which is situated at a distance of 112km from Yerevan. The absolute indexes of the settlements vary between 820-900mm. The weather of the region is described as having warm and mild summer and, not windy winter. The average temperature of the air is +100C. The absolute ultimate temperature reaches up to +400C, and absolute minnimum is •230C. The average annual quantity of atmospheric rains is 500-580mm, the relative humidity varies between 76•79%. The thickness of the snow layer reaches 35cm. The deepness of soil congelation is 0.43m depending on the ultimate height. The western and north- western winds with 2.6m/s speed prevail in the region. The observed areas of Tavush region are situated in rocky sylvan low, average mountainous and back sylvan low landscape areas. The relief of the area is formed by the settlings of river Aghstev and

Subproject V -Preliminary Design 6 HGSN Ltd. -JINJ Ltd. Water Supply and Sanitation Sector Project - Additional Financing its streamlets originating from the northern slope of mountain range Pambak. Beacuse of the dissected surface of the area the settlements are situated on the slopes of the mountains. From the geomorphologic viewpoint the area is characterized as having low mountains, plateaus and foothills with erosive, extremely dissected relief. The types of water erosion and water accumulation relief are characterized by, extremely dissected rocky slopes of V-type, sometimes by box woods. The gradients characteristic of slopes sometimes reach 20•300 and 30•400. Watercourse, low escarpments and slopes are utilized as pastures, and the slopes with less gradients are covered with valuable agricultural lands. The geological structure is formed by rocky and by surface sediments. The rocky and semi-rocky rock formations are represented by porphyrites, clay slates, tuff-breccias, conglomerates, and the surface sediments are represented by sand fillers of rock formations of crushed boulder stone, the thickness of which varies between 2.0•8.0 meters. From hydrogeological viewpoint the area is rich in ground waters. The existance of underground waters is conditioned by rocky formations of folded structure. The soil waters are at a depth of 0.5•2.5 m. There are various geological exogenic phenomena such as weak linear surface errosion, water logging from atmospheric precipitations, changing of river bad and deepening in some places there are stone falling, existance of landslide bodies etc. The region has vertical acceleration of soils for about 0.2g and is situated in the area of possible strength of earthquakes fro about 8 magnitude.

4. 4. Biodiversity and Specially Protected Areas

In this area sand, clay-sand and carbon soils have been formed on the modern aluvial-proluvial sediments, which are represented by sylvan umber and gray soils. The umber soils are characterized by lush meadow vegetation and are utilized for livestock purposes. And the sylvan gray soils are mainly spread under the hornbeam and beech forests. The flora is represented as a priority of wormwood and rocky xerophyte types characteristic to dry steppe landscape zone. The dominant types of wormwoods are types of Bromus (Brome grass), Poa persica Trin (Roshev), Ornithogolum montanum (Ornithogalum), Hordeum crinitum Desf (barley), Tulipa biflora L (Tulip bifloral) etc. The dominant types of rocky kserofits are Paliurus spina Chrizti Mill (Garland Thorn), Spiraea crenata L (Spirea crenate), Iris aphelia L (Iris), Astragalus laguras W (Locoweed) etc. There are wild types of plants such as Brjonia alba (white bryony), Juglans regia (persian walnut), Datura stramonium (Jimson weed). The types of plants of the area, where the project is implemented require protection: Junipersus excalsa Polikarpos Juniper polycarpous) – as a reducing type, Eringium Wanaturi (Fever-weed of Vanatur) – disapperaing, Iris Pseudocaucasica (Pseudocaucasian Iris) – rare, Salvia Grossheimii (Grossheime sage) – rare, and some other types.

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In the described area there can be some representatives of fauna characteristic of rocky steppes of low heights. But there can be some other types as well not so characteristic to the area. The mammals are basically rodents the majority of which leads an underground lifestyle. The reptiles and amphibians are few. In spring and in autumn there can be met various migrant types as well. The dominant types of fauna characteristic of the region are Crocidura (white-toothed shrews), Canis lupus (Wolf), Vulpes vulpes L (Fox), Cricetus auratus Nat (Golden Hamster), Mucrotus arvalis Pall (Field vole), Perdix perdix L (Partridge), Grus grus L (Crane) etc. In the described area the types of the fauna that need protection are as follows: Erinaceus auritas Gmelin (Eared hedgehog) – disappearing, Luscinia svecica occidentalis (Blue-throated warbler) - disappearing, Gyps fulvus Hablize • Linnaeus (Griffon vulture) - disappearing, Accipiter brevipes Seventzov (Levant sparrow hawk) - disappearing, Falis silvestris caucasika Satunin (Caucasian wildcat) - disappearing, Ursus arctos Syriacus Hamprich et Ehrenberg (Transcaucasian brown bear) - disappearing, Panthera pardus tullianus (Anatolian leopard), Vipera raddei Boettger (Armenian viper) – in danger of disappearing: The last three types are registered in the Red Book of RA and International Union of Conservation of Nature (IUCN). In the areas of the project implementation there are no vulnerable and specially protected areas from the ecological viewpoint. There is “” Reserve Park in the region, the border of which is at a distance of 6 km from Berd town included in the subproject, and “Zikatar” Reserve Park, which is at a distance of 14 km from Noyemberyan town. As a result of the project implementation these areas will not undergo any harmful influences. The inhabitations included in the subproject do not have any cultural, archeological or inherited sites. These details are clarified as a result of queries with village authorities. The existing castles and monastries of 10-13 centuries are at a distance of 2-5km from the cities and the project isn’t related to them.

5. Environmental Impact Assessment

The initial environmental examination (IEE) showed that in the areas of implementation of water supply system improvement /in the area of project influence/ there are no harmful influences on the landscape, flora and fauna, as well as on the earth and water resources. The subproject wil be basically implemented in the constructed areas of settlements, and for realization of the works new areas will not be included. According to the initial environmental examination the subproject was classified as ecological project of “B” rank. Within the work project for the current subproject, environmental management plan (EMP) should be developed, which will include Noyemberyan and Berd towns pointed out in the detailed design. During implementation of construction works, among the natural ecosystems river ecosystems are the most sensitive, since the rivers are flowing near or through the most part of the residential areas. To exclude or mitigate impacts on these ecosystems, special measures must be developed in the environmental management plan.

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Since the planned works are mainly to be implemented within the residential areas, they will have temporal adverse impact on the environment, human health and safety. The assessments and measures for prevention of all these impacts are provided in the EMMP and site specific EMMP, which are an integral part of the detailed design.

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Appendix 1. Checklist for Quick Environmental Evaluation

Improvement of water supply and sanitation systems of RA Country/ Subproject Title settlements

Sector division Subproject 5 – Noyemberyan and Berd towns of Tavush region, RA

Screening Questions Yes N/A No Remarks A. Project Siting Is the project area…?

 Densely populated + The settlements included in the project are considered to have average density of population  Overloaded by development/construction projects The two settlements have project + development documents of urban development /master plans/ +  Is situated in ecologically sensitive areas or nearby

Almost in all settlements there are  Is an area of historical cultural heritage + historical-cultural monuments, but the

project doesn’t concern them  Preserved area + The castles and monasteries of 10-13 centuries are at a distance of 2-5km +  Wetland

+  Is occupied by mangroves

+  Estuarine +  Is a buffer zone of the preserved area

+ The reserve park of “Gandzasar” is at a  A special area for preserving biodiversity distance of 6km from Berd town, and reserve of “Zikatar” is at a distance of 14km from Noyemberyan town +  Is a bay

B. Potential Environmental Impacts

Will the project lead to…?  Pollution of raw water supply from upstream wastewater + The water supply of settlements is discharge from communities, industries, agriculture, and soil implemented from the underground erosion runoff resources  Impairment of historical/cultural monuments/areas and + Almost in all settlements there are loss/damage to these sites historical-cultural monuments, but the project doesn’t concern them  Hazard of land subsidence caused by excessive ground + The project doesn’t deal with the soil water water pumping intake that’s why the implementation of the project can’t lead to soil settling  Social conflicts arising from displacement of communities + Isn’t foreseen

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Screening Questions Yes N/A No Remarks  Origination of conflicts as a result of shortage of polluted + Within the scope of the project the drinking water supply for the use of surface and underground waters water supply is implemented from for other useful purposes underground resources. The drinking water mustn’t be utilized for irrigation and other purposes.  Unsatisfactory raw water supply (e.g. excessive pathogens + Within the scope of the project the drinking or mineral constituents) water supply is implemented from underground resources after the disinfection  Unsafe water supply to the distribution system +  Inadequate protection of intake works or wells, leading to + The water intakes and wells included in the project are equipped with fences and pollution of water supply sanitary zones

 Over pumping of ground water, leading to salinization and + The project doesn’t deal with the soil water intakes, that’s why the implementation of ground subsidence the project can’t lead to salinization and ground subsidence  Excessive algal growth in storage reservoir +

 Origination of slopes exceeding the limits of powers of + Wastewater treatment stations do not community infrastructures operate in the communities  Inadequate disposal of sludge from water treatment plants + Isn’t applicable to the subproject  Inadequate buffer zone around pumping and treatment + The pumping station projected within the plants to alleviate noise and other possible nuisances and scope of the project will be demarcated protect facilities with a fence protecting the sanitary zone

 Impairments associated with transmission lines and access + Deterioration of the access roads isn’t roads intended, and in case of intersection with electric transmission lines , the intersection will be implemented according to the required norms  Health hazards arising from inadequate design of facilities + The documents of the project elements for receiving, storing, and handling of chlorine and other meant for getting and reserving chlorine hazardous chemicals and other dangerous chemicals are compiled according to the required norms  Health and safety hazards to workers from handling and + All the technological processes should be management of chlorine used for disinfection, other preserved when working with chlorine and contaminants, and biological and physical hazards during other polluting materials. project construction and operation

 Dislocation and involuntary resettlement of the inhabitants + not foreseen

 Inadequate impacts on the poor, women and children, + not foreseen Indigenous Peoples or other vulnerable groups  Origination of noise and dust as a result of construction + The mitigating measures will be included in EMP /environmental management plan/  Increase of traffic as a result construction works + insignificant increase, is foreseen for the period of construction  Continuing soil erosion/silt runoff from construction + The concrete measures for the operations organization of construction will be shown in the EMP  Delivery of unsafe water due to poor O&M treatment + There won’t occur any problems of sludge processes (especially mud accumulations in filters) and accumulation in the filters, and the inadequate chlorination due to lack of adequate monitoring monitoring of the residual chlorine will be of chlorine residuals in distribution systems implemented according to the required norms  Delivery of water to distribution system, which is corrosive + During the exploitation of this system, any due to inadequate attention to feeding of corrective chemical materials aren’t used for the chemicals treatment of the water

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Screening Questions Yes N/A No Remarks  Accidental leakage of chlorine gas + not foreseen

 Excessive abstraction of water affecting downstream water + The project of the system reconstruction id users? elaborated for excluding such situations

 Competition of water utilization + The aim of the project is to alleviate the competition of water utilization  Increase of sewage water flow as a result of water supply + increase  Origination of silts in sewage treatment stations and + The existing sewage treatment stations do increase of household waters (cooking and washing water) not operate in the settlements included in the project  Large population influx during project construction and + The project deals with reconstructions of operation that causes increased burden on social existing systems, a new social influence infrastructure and services (such as water supply and isn’t foreseen sanitation systems)

 Social conflicts if workers from other regions or countries + Mainly a local labor will be engaged are hired

 Risks to community health and safety due to the transport, + The risks will be decreased to the storage, and use and/or disposal of materials such as minimum in case of maintaining the rules explosives, fuel and other chemicals during operation and of safety when using explosives, fuel and construction other chemical materials utilized within the scope of the project  Community safety risks due to both accidental and natural + The risks will be decreased to the hazards, especially where the structural elements or minimum in case of maintaining the rules components of the project are accessible to members of the of safety when using, transporting and affected community or where their failure could result in preserving the explosives, fuel and other injury to the community throughout project construction, chemical materials utilized within the operation and decommissioning. scope of the project

Climate Change and Disaster Risk Questions Yes No Notes

The following questions do not concern the ecological classification. They are included in this checklist to help identify potential climate and disaster risks.  Is the Project area subject to hazards such as earthquakes, + Armenia is situated in an active tectonic floods, landslides, tropical cyclone winds, storm surges, tsunami zone and can undergo dangers with all or volcanic eruptions and climate changes (see Appendix I) the possible consequences

 Could changes in temperature, precipitation, or extreme events + The shortage of precipitations can patterns over the Project lifespan affect technical or financial cause water shortages in the resources sustainability (e.g., changes in rainfall patterns disrupt reliability of which will result in changes of the water water supply; sea level rise creates salinity intrusion into proposed supply stability water supply source)

. Are there any demographic or socio-economic aspects of the + Project area that are already vulnerable (e.g., high incidence of marginalized populations, rural-urban migrants, illegal settlements, ethnic minorities, women or children)

. Could the Project potentially increase the climate or disaster + vulnerability of the surrounding area (e.g., by using water from a vulnerable source that is relied upon by many user groups, or encouraging settlement in earthquake zones).

*Hazards are potentially damaging physical events.

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Appendix 2. Tavush subproject layout

Subproject V -Preliminary Design 13