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"MUNICIPAL DEVELOPMENT PROJECT MANAGEMENT UNIT" SE E1019

Public Disclosure Authorized YEREVAN WATER AND WASTEWATER PROJECT

ENVIRONMENTAL ASSESSMENT AND ENVIRONMENTAL MANAGEMENT PLAN

FINAL REPORT Public Disclosure Authorized Public Disclosure Authorized

Yerevan, July 2004 Public Disclosure Authorized

E

28 YEREVAN WATER AND WASTEWATER PROJECT

ENVIRONMENTAL ASSESSMENT AND ENVIRONMENTAL MANAGEMENT PLAN

Prepared for

STATE COMMITTEE OF WATER SYSTEM UNDER RA GOVERMENT "MUNICIPAL DEVELOPMENT PROJECT MANAGEMENT UNIT" SE

Preparedby

SUSTAINABLE WATER ENVIROMNENT (SWE) NGO (Leader)

YEREVANDESIGN CJSC

ENVIRONMENTAL PUBLIC ADVOCACY CENTER (EPAC) NGO

July, 2004

29 YEREVAN WATER AND WASTEWATER PROJECT

1. Introduction The Government of has requested support from the World Bank towards the implementation of a Yerevan Water and Wastewater Project aiming at improving the efficiency, management, operation, delivery and financial sustainability of water supply and wastewater services in the Yerevan service area and promoting efficient protection of the environmental and water resources

Based on the current design and present agreements with the Government of Armenia, it is expected the proposed Project will include the following components:

Component 1: Investment Fund

Specific investments to be undertaken will be identified by the operator during implementation, but generally fall into three categories:

Energy savings Significant further reduction of energy cost is planned. System components consuming high amounts of energy require capital investment to replace pumping with gravity schemes and old, inefficient plants and pumps with more efficient units.

Loss reduction and reliability of supply Water abstraction is very high in comparison to consumption levels. Most YWSC water facilities are old, have been poorly maintained and have received minimal investment for many years. Capital investment in village supply lines, distribution networks, block service connections and daily regulating water reservoirs are required to reduce losses and provide reliable 24-hour water supply.

Reduction of environmental pollution Investment is required in sewage collection and small pumping stations. Sewage currently is discharged directly into watercourses, in some cases in recreational areas of central Yerevan. The existing wastewater treatment plant (WWTP) has fallen into dereliction. Its complete reconstruction or replacement is not currently affordable, but a first stage solution is rehabilitation of a portion of the plant's primary treatment. Donor funding currently is sought for WWTP rehabilitation and these amounts are not included in the Investment Fund.

Component 2: Technical Assistance and Training Component will fund project financial and technical audits, as well as MDPMU incremental operating expenses.

Component 3: Refinancing of Project Preparation Facility.

I The main strategical goals of the project are: water quality improvement and increase of water supply reliability, provision of 24-hour water supply, electric energy saving, leakage reduction, establishment of overall water metering system, water use measurement, 100% cost recovery for the provision of water supply services, provision of financial self sustainability, and addressing priority environmental problems in the water supply and wastewater sector.

30 This document presents the Environmental Assessment and Environmental Management Plan, which have been prepared to ensure that the proposed Yerevan Water and Wastewater Project is implemented in accordance with World Bank Operational Policy OP 4.01 on Environmental Assessment as well as Armenian laws and regulations on environmental protection and environmental impact assessment. It identifies key environmental and social impacts that could result from the project, proposes mitigation measures to address the most significant negative impacts, and outlines the monitoring programs and institutional responsibilities for implementation.

For the purpose of the World Bank Operational Policy OP 4.01, the proposed project has been rated as an environmental category Fl (Financial Intermediary) given the fact that the exact investment items will not be known at the time of project appraisal.

Although no major environmental issues are anticipated, since the Investment Fund will concentrate on rehabilitation of existing infrastructure, certain investments items may require special mitigation measures to protect the environment and enhance health safety. The project will not present land acquisition or resettlement issues, since most of the works will be done in properties owned by water/wastewater companies, municipal land or rights-of-way assigned to municipal infrastructure. Iinvestments are expected to fall under the environmental category B or C. Procedures for environmental category A sub-project would be developed on a case by case basis in consultation with the World Bank.

The project will be implemented by the Municipal Development Fund Management Unit (MDFMU) currently implementing the Municipal Development Project (MDP). 2. General Information 2.1. Brief description of water supply systems of the residential areas within the YWSE service area The YWSE serves the water and wastewater systems of Yerevan and 39 surrounding residential areas and supplies water to 15 residential areas served by Armenian Water and Sewerage CJSC. The last version of Yerevan Water Supply General Scheme (YWSGS) developed by <> Institute for perspective 1990-2000 period was approved in 1983. The design indicators of the YWSGS have not been revised since 1983. Yerevan water supply is carried out through 11 systems fed from 13 water springs. Total annual water intake is 394.8 million cubic meters, of which 48% is by gravity and 52% by pumping. The Yerevan's water supply systems are: 1. Katnaghbyur system 2. -Gyumush system 3. system 4. Aparan system 5. Shor-Shor system 6. system 7. Araratyan 1 and 2 stages system 8. Araratyan 3 and 4 stages system 9. Tsaravaghbyur system 10. system 11. Yerevan HPP system The total number of the customers served by YWSE is 313,946, including 303,000 residential customers (or 1,280,000 Yerevan's population (according to data as of June 2004) and 73,000

31 people in other villages served by YWSC). The number of customers signed water supply contracts is 372,526. The average level of water production is 845 liters per capita per day (lcd). 2.2. Drinking water supply sources and their protection within YWSE service area Drinking water supply to Yerevan comes from underground water resources or springs of Arzakan, Gyumush, Arzni, , Tsaravaghbyur, Dzoraghbyur, Katnaghbyur, , Garni, Aparan and Ararat artesian basin, Guy-Haykashen, which are located in , Azat, Cassakh river basins and Hrazdan-Metsamor inter-basin area of Ararat depression.

Protection of underground waters is carried out by measures aiming at eliminating pollution or depletion and enforcing sanitary protection zones, and careful monitoring of several parameters, e.g., discharge, level, temperature, hydro-chemical composition, technical condition of posts and catchments. With regard to the sanitary protection zones, it is common to separate two (sometimes three) sanitary protection zones within the water catchment structures and the areas adjacent to them: strict regime and limiting regime. While the first sanitary zone protects underground waters against pollution within water catchment structures, the second zone covers a larger area where possible objects of underground water pollution are strictly forbidden.

2.3. Brief description of the technical condition of Water supply systems and the existing problems Problems faced by the water supply systems located in the YWSE service area (headwork, transmission mains, daily regulation reservoirs (DRR) and distribution networks) are almost of the same nature. Most of them are the results of the aging of the infrastructure - often beyond 30 years.

In the water supply systems' headwork area, the sanitary protection zones and spring intake structures are in a poor condition, the latter not meeting the requirements of leak-tightness. Leaks from some spring intakes create artificial lakes around sanitary zones, providing the pre- conditions for development of various biological microorganisms. Although the water supply to a number of residential areas in the YWSE service area is carried out through pumping, most of the pump stations are in deplorable conditions - they are operated with out-of-date equipment and are in need of spare parts.

Because of insufficient repair and rehabilitation works during the recent years, the deterioration degree of the pipelines has significantly increased. About 60% of the total length of water supply pipelines was built more than 30 years ago. In addition to the aging of the pipelines, many new facilities (e.g., cemeteries, landfills, cattle farms and other buildings) have been illegably constructed on the routes of water pipelines, infringing in their safety. Daily regulation reservoirs need serious repair. A large number of them has been de- commissioned because of high level of leaks. The operational ones do not fully correspond to technological requirements because of their small sizes as compared to the required volumes and absence of zoning.

At present the distribution-regulation junctions existing in distribution networks have become a source of leaks and drinking water quality violation because of infringement of leak tightness and broken valves.

2.4. Description of the wastewater systems of residential areas within the YWSE service area

The 'Aeration' wastewater treatment plant of Yerevan was constructed during the period 1963-

32 1978. For the past 15 years, no investments have been made for the maintenance of the plant. The reinforced concrete structures and mechanical equipment are in a poor condition and at present only the grid department of mechanical treatment is operating. The wastewater treatment plant can be considered non-operational, except for the mechanical treatment grid workshop.

At present, wastewater from the city of Yerevan is discharged into the Hrazdan river basin without efficient treatment, caused by the non-operational conditions of the existing wastewater treatment plant and the limited coverage of the sewerage system. The end result is that between 5-25% of raw sewage is discharged directly into the Hrazdan river within the boundaries of the city.

2.5. Landscape zones and biodiversity of the areas under study

In the area covered by the study there is a succession of landscape zones of desert, semi-desert, steppe, and xerophyle thin forests. The following protected areas are also located within the study area: Khosrov, Erebuni, Arzakan and , Vordan Karmir reserves.

Khosrov reserve is located within Azat and Khosrov river basins, at altitudes of 1400-2250m and covers 29,196 ha. In this reserve, dry, thin forest, phryganian and semi-desert landscapes of central Armenia with unique fauna and flora are protected.

Erebuni reserve is located in eroded slopes of near-Araks folded ridge, within and Ararat marzs' boundaries, in the vicinity of Yerevan. It protects unique natural complexes, including the cereals' gene pool.

Arzakan and Meghradzor reserve is located in Kotayk marz, in Dalarik and river basins, at 1600-21 00m altitude. In Arzakan reserve's forests with ( canyon) unique relic species exist, which are recorded in the Red Book of the former USSR and Armenia.

Vordan Karmir reserve is located in the Ararat depression, between Argavand, Arazap and Sovetakan villages. The object of protection is the halophyte desert where Aeluropus littoralis grow and in which the Armenian Vordan karmir (recorded in the Red Book of the former USSR) lives.

3. Description of the Legislative and Institutional System

3. 1. The RA Legislation 3.1.1. The RA Law on Environmental Impact Expertise The RA Law on Environmental Impact Expertise (EIE) was adopted on November 20, 1995. This EIE Law regulates the legal, economic and organizational bases of the environmental impact of the planned action and concept. The law consists of 4 chapters, which include 22 Articles. The law establishes the idea and objective of the expertise, according -to which the Environmental impact expertise is a mandatory activity carried out by state, the main objective of it being prediction, prohibition or minimizing the adverse impact of a concept or planned action on human health, environment, economic and social development. According to the EIE Law, 48 types of activities in more than 18 spheres of public-economic life are subject to expertise, including those related to the construction and operation of reservoirs and embankments, dams, major canals, pump stations and other hydro-structures, any actions

33 related to extraction of underground waters, works of reconstruction and construction of wastewater treatment plants. 3.1.2. RA Law on provision of the sanitary-hygienicsafety of the RA population The general requirements to ensure the sanitary-hygienic safety of the RA population in water supply and water use field are established in the RA Law on provision of the sanitary-hygienic safety of the RA population adopted in 1992, by other RA laws, a number of Governmental decisions and inter-ministerial legal acts.

The above-mentioned Law establishes legal, economic and organizational bases of the provision of the sanitary-hygienic safety of the RA population, as well as the warranties planned by the state, which exclude the impact of adverse and dangerous factors of the environment on human organism and provide favorable conditions for viability of it and future generations. The main requirements regarding water supply and water use field are set forth in Article 16 of the Law. Article 23 of this law serves a basis for mandatory implementation of sanitary-hygienic expertise, which is carried out also for the objects having chemical and biological discharges and effluents into the environment.

The requirements to the establishment and the regime of sanitary protection zones are regulated also by the RA Land Code, the RA Government's decisions N96 as of February 02, 2002 and N26 as of January 14, 2002.

Sanitary rules and hygienic standards are registered and enforced by the RA Law on Legal acts. 3.1.3. Other RA Laws The environmental impacts of the activities being carried out with the purpose of improvement of water and wastewater systems are also regulated by the RA Water Code, RA Land Code, RA Law on Specially Protected Natural Areas and other environmental laws and regulations.

The population's health safety requirements in water supply and water use field are established by the following regulations:

- Sanitary protection zones of water pipelines and water supply sources of drinking economic importance N2-III-2 2-2 sanitary rules and standards /registered as of 28.12.2002/, that establish sanitary-hygienic and anti-epidemiological requirements to the organization and operation of sanitary protection zones of water pipelines and water supply sources of drinking economic importance; - Drinking water. Requirements to the water quality of centralized water supply systems. Quality control N2-III-22-1 sanitary rules and standards /registered as of 28.12.2002/, that establish hygienic requirements to the drinking water quality, as well as rules for control over the quality of drinking water produced and supplied to residential areas through water supply systems.

3.2. Conventions and International Treaties

3.2.1. Convention on Environmental Impact Assessment in a Trans-boundary Context-Espoo, 1991). According to this Convention, the parties shall, to the extent possible mitigate, if not prevent the hazardous trans- boundary impacts. According to the requirement of the Convention, the environmental impact assessment document shall include the description of the given activity, its goals, including the option of rejecting the given action, the environmental objects subject to the adverse impact of the action, list of preventing measures, etc.

3.2.2. Protocol of Strategic Environmental Impact Assessment of the Convention on

34 EnvironmentalImpact Assessment in a Trans-boundary Context (Kiev, 20031). The Protocol is intended for carrying out strategic ecological assessment (SEA) and imposes obligation of parties at national and regional levels regarding this process. According to this Protocol, projects and designs worked out for the development of various fields as well as policy and legislation shall be subject to SEA. 3.2.3. Convention on Protection and Use of Trans-boundary Watercourses and International Lakes, 1992 that has not been signed yet by Arnenia The Convention addresses prevention, limiting and reduction of trans-boundary impacts, monitoring of trans-boundary waters, investigation and development of efficient methods for prevention, limiting and reduction of trans-boundary impacts.

3.2.4. Water and Health Protocol of the Convention on Protection and Use of Trans-boundary Watercourses and InternationalLakes (1999) The objectives of the Protocol are to provide the population with water of a quality not threatening human health, provide drinking water access for everybody, implement sanitary protective measures, as well as measures providing protection of eco-systems.

3.2.4. Aarhus Convention (1998) This Convention provides access to public infonnation, public participation in decision-making and access to justice in environmental matters. Any information on drinking water and water supply field shall be available to the population.

3.3. Structure and Capacity of State Authorities Implementing Water Resources Management and Environmental Protection Functions According to institutional changes taken place in Armenia during the recent years, water resources protection, management and use functions have been clearly divided among three different authorities.

Water resources protection function is implemented by the Environment Protection Department (EPD) of the RA Ministry of Nature Protection. Water resources management function is implemented by Water Resources Management Agency (WRMA), as a separate division of the RA Ministry of Nature Protection. Its main functions and objectives are: 1. Formulation and management of fresh and underground water resources policy with the purpose of protection and efficient use of the RA water resources; 2. Assistance in water resources management and protection within the framework of National water policy and National water program; 3. Providing implementation of basic and practical scientific and technical researches in water resources management and protection field and application of their results; 4. Providing application of the results of permissible limit discharge of wastewater according to the National water program; and 5. Providing compilation of maps of aquatic ecosystems' protection zones.

Water systems management, protection and use function is implemented by the "State Committee for Water Economy" (SCWE). "Armenian Water and Sewerage" CJSC, functioning under the Committee operates the W&W systems of 43 towns and 290 villages in the Republic, and provides drinking water supply up to the residential area of about 100 rural communities.

The Yerevan WSE serves the water and wastewater systems of Yerevan and 39 surrounding residential areas and supplies water to 15 residential areas served by Armenian Water and

35 Sewerage CJSC.

Since early 2000, considerable efforts have been made by donors and the World Bank towards enhancing the capacities of WRMA and other departments of the RA MNP. For example, the USAID repaired and re-equipped "Environment monitoring laboratory" with modem equipment. Besides, training courses have been carried out for the laboratory staff. The observation posts on Hrazdan river, as well as the Republican "Hydrometeorology and Environment Monitoring Agency" have also been re-equipped.

The non-commercial "Environmental expertise" state organization is functioning under the RA MNP. Its main function is the implementation of environmental expertise for the actions and concepts planned within Armenia.

Implementation of the controlling functions and applying responsibilities related to providing sanitary-hygienic safety of the RA population is the responsibility of the State Hygienic and Epidemiological Inspectorate of the RA Ministry of Health. Goals and objectives of the Inspectorate among others are: • Exclusion of the impacts of dangerous and hazardous environmental factors on human organism through establishing sanitary and hygienic criteria, development of sanitary and anti-epidemiological rules and standards, hygienic normatives and controlling over implementation of their requirements; and * Implementation of state hygienic and epidemiological control.

For achieving these goals and objectives, the State Hygienic and Epidemiological Inspectorate among others has the also the following functions: * Implementation of control over meeting the sanitary and anti-epidemiological rules and standards, hygienic normatives and implementation of anti-epidemiological measures in the area of the RA by legal and physical persons through application of laboratory control and technical means; * Discovery of infringements of the legislation on Provision of sanitary-hygienic safety of the RA population and enforcement of appropriate means for responsibility; * Study of the impact of environmental factors on population health; * Implementation of hygienic expertise, including approval of designs and normative documents for land allocations, construction, reconstruction and building, determination of water intake place, conditions of wastewater discharge, waste burying; * Sampling of water and other production, subjects and substances for hygienic expertise and laboratory investigations; * Making decision on temporary termination of operation of hydro-technical facilities, operation of structures, technological processes, until the recorded infringements of sanitary rules and standards, hygienic normatives and anti-epidemiological regimes are eliminated; * Making decision on temporary termination of application of chemical substances, means and methods in water use field for drinking, household, production, technical needs in the case there is a danger of their adverse impact on human health; * Making decision on temporary termination of water use for drinking, household, production, technical needs, if the water quality does not meet the established sanitary- hygienic safety requirements; and * Running administrative register according to the RA Code on administrative infractions.

4. Description of General Environmental Impact and Mitigating Measures This section describes the potential significance of the range of environmental impacts which are

36 associated with the implementation of the water and wastewater systems rehabilitations works. While the section focus primarily on the potentially negative environmental impacts of the proposed project, it is worth highlighting some of the positive or beneficial impacts, which are as follows:

- Reduction of leakages around spring intake structures; - Prevention of pollution and contamination around springs by establishment and enforcement of sanitary protection zones in headwork area, - Provision of high drinking water quality leading to improvement of the health condition of population, - Prevention and exclusion of infectious disease bacilluses penetration into drinking water, - Providing population with 24-hour water supply, - Energy saving as a result of regulation of operating conditions of the existing pump stations, and conversion into gravity schemes. - Water savings as a result of introducing measurement system and improving the service level, - Reduction of major disruption because of breakdowns since there will be possible to transfer water from one region to another as a result of automation of water supply system. The sub-projects or works planned to improve the water supply systems within the YWSE service area can be classified into 3 main groups according to their nature and priority and the type of environmental impacts that can arise during their implementation: 1. Works for repairs and reconstruction of the existing water supply systems. 2. Works for construction of additional links to the existing water supply systems or for construction of fully new systems. 3. Projects for de-commissioning of uneconomically water supply systems or some links within them. During implementation of each of the sub-projects directed to improve the water supply systems, independent of their nature, a number of environmental impacts may arise. Mitigation measures are to be planned both during design, construction and operation. A summary of the environmental impacts and proposed mitigation measures are presented below. More details are provided in Annex 1.

Negative impacts by type of structure Water intake structures, chlorinatingstations, pump stations, sanitaryprotection zones, bank protective andflood protective structures - Possible penetration of rain and flood water into water intakes. - Pollution of water intakes with wastewater removed from settlements. - Drying of spring sources, disappearing of springs. - Damaging natural landscapes, ecosystems in the surroundings of water intake facilities. - Danger of drying upper streams of rivers - environmental flow reduction during transfer into gravity system, disturbance of land and aquatic ecosystems. - Pollution of water basins and landscapes with chlorine. - Environment pollution in the areas of former pump stations and auxiliary facilities. - Disturbance of integrity of spring feeding and protection zones, drinking water pollution with infectious disease bacilluses. - Impact on landscapes and biodiversity in sanitary protection zone area. - Impact of bank protective and flood protective structures on natural aquatic species. - Activization of land erosion and landslide phenomena Water mains and inter-city water supply network - Impact on natural and city landscapes and biodiversity. - Impact on specially protected areas, endemic species and historical-cultural monuments.

37 - Impact of breakdowns on the environment and human health, - infringement of integrity of water lines' protection bands. Daily regulation reservoirs (DRR) - Drinking water pollution with infectious diseases. - Water pollution in DRRs with rain waters. Wastewater systems (sewerage lines, collectors) - Impact on the health of the operating staff, population. - Environment and river pollution with wastewater. - Disturbance of natural and artificial (inside the city) landscapes, impact on ecosystems and protected areas. - Surface water pollution with wastewater. Wastewater treatmentplant - Impact on the health of the operating staff, population. - Environment pollution (aquatic and land ecosystems).

Mitigation measures by type of structure Water intakefacilities - Repair of emergency nodes. - Providing leak-tightness of doors, manholes. - Implementation of a layer of inverse filters according to the existing standards. - Creating a protective clayey layer. - Additional studies for spring intakes constructed 40 years ago. - Reconstruction of sewerage lines adjacent to or within the area, excluding to the extent possible entrance of wastewater into underground source impact zone during breakdowns (clogs). - Reliability and non-failure operation of sewerage lines located in the underground spring feeding zone. - Reconstruction of the above sewerage lines, bringing them out from the area. - Selection of spring intake method justified by hydro-geological study (excluding to the extent possible intake of springs of drainage nature). - Implementation of earth works as a rule by hand in the sources, using mechanisms only in special cases. - In case of permission to use mechanism, selection of road and agreement with corresponding specialists (hydro-geologist, geologist, engineer). - Exclusion of explosion works. - Selection of access roads to sanitary zone intake and other structures, causing minimum damage to natural landscapes and biodiversity. - Adapting to the extent possible the soils and vegetative soils brought during turfing and banking of spring intakes with the site landscape. - Re-cultivation of the landscapes of the place the earth is brought to. - Carrying out of justified hydro-geological and hydraulic calculations required during designing the system capacity and water intake facilities. - Selection of correct technological solutions for drainage system. - Ensuring environmental flow provision along the whole river. - Justification of water abstraction/water quantity during preparation and issuing of water use permit. - Correct selection of the place for removing the surplus water. - Removal and neutralizing washing waters. - Training of service staff. - Providing appropriate sanitary-hygienic and working conditions for the service staff.

38 Chlorinationstations - Application of new technologies - installation of automated vacuum chlorinators with dry chlorine dozing where emergency outbursts of chlorine are minimized. - Training of service staff on: * provision of personal security, * serving chlorinators with new technologies, * direct elimination of breakdowns, * direct warning process, if needed, * Providing service staff with individual protection measures.

Pump stations - In case of transfer to gravity water supply, implementation of measures directed to the further destiny of pump stations and their auxiliary facilities (reservoirs, power sub- stations, suction and pumping technological pipelines), aimed at minimizing the damage to the environment.

Sanitaryprotection zones - Establishment and maintenance of sanitary protection zones according to the requirements of construction, sanitary and other standards existing in the RA and other standards and rules. - Providing leak-tightness of water intake facilities (planning of water-proof doors, manholes, air filters). - During implementation of construction works in sanitary protection zone: - exclusion of pollution with fuels and oil products, - disposal of construction waste to the corresponding landfills, - rehabilitation of damaged landscapes, - land re-cultivation. - Installation of sanitary zone fences above a height from the ground not forbidding entry of reptiles, small animals into the protected area, protecting the area biodiversity.

Bank protective andfloodprotective structures - Correct selection of the place for over-ground pipelines in rock sections in order to reduce their damage from rapidly running rain water. - Give preference to gabion structures filled with coarse stones and tied with nets not influencing free fish travel. - Forbid using the river head stones in the given section for bank protective structures preventing annihilation of benthos fauna. - Selection of water main routes taking into account engineering-geological conditions of the area. - Adoption of solutions justified by calculations for passing water main through flood and mudflow gullies. - If necessary, implementation of appropriate measures for free passing of floods and mudflows. - Regular cleaning of mudflow canals form alluvium and silt during the operation.

Water mains and inter-city water supply network - Selection of routes of water mains and inter-city water supply network taking into account engineering-geological conditions of the area, causing minimum damage to natural and city landscapes.

39 - Carrying out appropriate calculations and mentioning guidelines in design documents for organization of washing and disinfecting water pipelines and inter-city network with chlorine. - As a rule, implementation of underground water pipelines and implementation of measures for vegetative earth collection, cumulation before the construction and its rehabilitation upon completion of the construction. - After washing the pipelines, implementation of chlorine discharge into surface water body or a land area, according to the regime planned by the design, which shall be agreed by ecological expertise in the design stage. - Bringing out the water pipelines' routes to the extent possible from the planned protected areas. - Avoid making landscape changes, construction of access roads, forced flight sections of pipelines, which require additional earth and explosive works in specially protected areas. - In case there is not an altemative, planning of measures aimed at maximum mitigation of the impact: * Obtaining construction permit . disposal of construction waste after the construction, . rehabilitation of damaged landscapes, . land re-cultivation, improvement, * strict provision of operational rules. - To reduce as far as possible the area of rehabilitation work implementation during breakdown of water pipelines and inter-city water supply network. - After elimination of the breakdown rehabilitate natural or artificial landscapes. - If needed, remove the cumulated water by means of special mechanisms. - Provide corresponding chlorine dosage in water in marginal points of blind sections of the interal network after breakdown elimination.

Daily regulation reservoirs (DRR) - Establishment of sanitary protection zones of DRRs providing leak-tightness of DRRs. - Providing the admissible forms and borders of passage with water supply distribution network and other communications (sewerage lines, irrigation lines, water supply lines, etc.). - Correct selection of the place for removing the surplus water from DRRs. - Removal and neutralizing of washing waters. - Application of new technologies - planning improved pressure regulating nodes. - Training of service staff. - Providing sanitary and hygienic conditions for the staff. - Providing air conditioning of DRRs and water proofness in entry structures against rain water. - Providing a filtering load with the required mass and fraction in air conditioning structures.

Wastewaterfacilities (sewerage lines, collectors) - Specifying during construction if adjacent water pipelines exist. - Providing security of entry of all structures on sewerage lines (manhole, etc.). - Providing the staff with special overalls to avoid infection. - Meeting sanitary standards for safe work. - Training the service staff. - Providing isolation and disposal of cumulated wastewater during elimination of breakdown, washing, disinfecting of the site.

40 - Conformity of the quality of production wastewaters flowing into the city sewerage network with the operation rules for the system. - Selection of collector routes in accordance with providing hydraulic regime and the RA legislation. - After completion of construction works for inter-city and out-of-city sewerage lines (collectors), rehabilitation of natural and artificial (inside the city) landscapes, lands. - Land re-cultivation. - Selection of collector routes and solutions for laying that will exclude dangers of breakdowns caused by floods from Hrazdan and other rivers. - Wastewater collection in collectors. - Exclusion of river pollution.

Wastewater treatmentplant - Strict provision of rules of safety regulations and hygiene. - Providing the required distance of sludge beds from residential areas. - Using dried sludge in agriculture only if the permission on the basis of mandatory study results exists. - Training the service staff. - Development and introduction of new modem technologies. - Meeting the standards of drying, transporting of sludge and disposed sediment. - Conformity of the treated wastewater quality with the required standards (PLC). - Providing of appropriate quality for water user directly after discharge point of the treated wastewater. - Justification of wastewater treatment degree taking into account the self-cleaning ability of river. - In case of breakdown in any node of the plant, planning, development and implementation of preventive measures. Possibility for chance finds during construction are also possible, although at present no impacts on cultural and historical assets are expected.

5. Operational Procedures for Environmental Screening and Assessment

Environmental screeninf An Environmental screening will be undertaken to determine importance and category of EA (environmental assessment). The above documents of the Armenian legislation regulating the environmental field do not establish any environmental classification of projects by categories according to the importance and rate of their potential environmental impacts. The proposed annual sub-projects will be classified by EA categories as specified in the WB OP 4.01, described below (More details are provided in Annex 2).

Category "A" projects are considered those that are likely to have significant adverse environmental impacts that are "sensitive," "diverse" and "unprecedented." These impacts may affect an area broader than the project implementation area. EA for a Category A project examines the project's potential negative and positive environmental impacts, compares them with those of feasible alternatives (including the "without project" situation), and recommends any measures needed to prevent, minimize, mitigate, or compensate for adverse impacts and improve environmental performance. Procedures for any environmental category A sub-project would be developed on a case by case in consultation with the World Bank.

A proposed project is classified as Category B if its potential adverse environmental impacts on human populations or environmentally important areas - including wetlands, forests, grasslands,

41 and other natural habitats - are less adverse than those of Category A projects. These impacts are site-specific; few if any of them are irreversible. The scope of EA for a Category B project may vary from project to project, but it is narrower than that of Category A EA. Like Category A EA, it examines the project's potential positive and negative environmental impacts and recommends anti measures needed to prevent, minimize, mitigate or compensate for adverse impacts and improve environmental performance.

A proposed project is classified as Category C if it is likely to have minimal or no adverse environmental impacts. Beyond screening, no further EA action is required for a Category C project.

Environmentaldocumentation and document content The MDPMU will screen investment program and assign the environmental category, and inform the YWSC/operator about the type and scope of environmental documentation -- environmental assessment (EA) and/or environmental management plan (EMP) -- that needs to be prepared, the consultation and disclosure requirements, and any other requirements under the Armenian law. The YWSC/operator will be responsible for carrying out the appropriate EA/EMP for the annual investment program as well as for fulfilling the environmental requirements and obtaining all necessary permits. The EA/EMP will include mitigation, monitoring and institutional arrangements. The EMP presented in next section identifies the environmental impacts and proposed mitigation measures for most of the works to be financed under the project expected to fall under environmental categories B and C.

Review and aDproval The MDPMU through its own environmental specialist, trained in environmental assessment work and familiar with Bank OP 4.01 as well as with Armenian environmental legislation, will review the environmental reports prepared by the YWSC/operator and ensure that the proposed mitigation measures are adequate. The MDPMU will submit to the Bank the environmental screening assessment that has to include the analysis to justify the category assigned to each subproject. The annual EMP will be sent to the Bank for review and approval.

If during construction, cultural and historical assets are found, the works must be stopped and the agency responsible for prevention of cultural heritage must be notified by the Contract. Works can resume only after permit from the respective authorities has been issued.

Public Consultation The Armenian Environmental Laws regulating public consultation and coordination, as well as information availability to public are listed below: * "The Fundamentals of the RA legislation on Nature Protection" ensure citizen's right to request complete information concerning the environmental situation and obtain it in time. * The Law "On Environmental Impact Assessment" sets forth the process of assessment of environmental impacts. • The new Water Code also addresses public participation principles.

Taking into consideration requirements of the above mentioned legislation, as well as the World Bank guidelines for all Category B subprojects, during the elaboration of the current EA/EMP process, the MDPMU has consulted project-affected groups and local NGOs about the project's environmental aspects and takes their views into account. A description of the first and second public hearings is included in Annex 3. Any new EA or EMP report will made available to project-affected groups and local NGOs.

42 6. Environmental Management Plan

The project is expected to finance rehabilitation of the existing Yerevan W&W systems and expenditures to improve management and operations of the YWSE company, which should contribute to improve the quality of life and the environment. Specific physical investments will be defined only during the course of the project implementation. Although no additional structures of significant size are envisaged under the project, some reconstructions can entail the installation of new facilities. It is not expected that the project will require land acquisition or result in involuntary resettlement, since most of the work will be done in properties owned by water/wastewater companies, municipal land or rights-of-way assigned to municipal infrastructure. Nevertheless, in case any land acquisition or compensation issues arise, these will be addressed in a manner consistent with WB policy and relevant national legislation. A sub- project expected to involve land acquisition will be treated as environmental category A project for purpose of environmental assessment classification.

The Environmental Management Plan (EMP) presented in this section, is based on the results of the environmental screening of possible works to be financed by the project (expected to fall under environmental categories B or C). The EMP identifies the possible works to be financed under the project and the anticipated impacts on the environment and human health by type of structure. It also includes the preventing and mitigating measures of the possible impacts and identifies the authorities responsible for supervision and monitoring of the measure as well as the implementation schedule (Table 1).

Institutional responsibility As executive bodies can be the action initiator, designing, constructing, operating and maintaining organizations.

Responsible for control over mitigating measures are World Bank and MDPMU depending on the nature of the works.

Monitoring of efficiency of mitigating measures shall be implemented by the Ministries of Nature Protection, Health, Urban Development, Agriculture, local self-governance bodies.

Risk assessment The possible risks during implementation of the project EMP are:

1. Insufficiency of the given financial means, as a result of which complete implementation of both EMP and its separate elements can be endangered. 2. Incomplete implementation of EMP or its ignorance during the construction, as a result of improper control by controlling bodies. 3. Ignorance of some EMP elements as a result of improper control by monitoring bodies. 4. Uncompleted implementation of both entire EMP and its some elements by the action initiator/operating organizations. 5. Absence of service (experts) in controlling and monitoring bodies with the required capacity for providing EMP implementation. 6. Instable legislative and normative field in the country related to environment. 7. Instable political situation in the country.

43 Table 1

Environmental Management Plan (EMP)

Executive Project Project 1Scheduleof work Potential adverse impacts Mitigating, control and prevention measures body controlling monitoring body implementation ______1______body ~~~~ ~~~~~body

1. Water intake facilities (water intakes and deep wells) * Repair of emergency nodes. * Providing leak-tightness of doors, manholes. * Implementation of a layer of inverse filters according to Ministry of Nature During design and Possible penetration of rain the existing standards. Designer, PIU Protection (MNP) construction and flood water into water * Creating a protective clayey layer. Constructor intakes.

* Additional studies for spring intakes constructed 40 Action initiator In early designing years ago. stage * Reconstruction of sewerage lines adjacent to or within the area, excluding to the extent possible entrance of wastewater into underground source impact zone during Designer, Pollution of water intakes breakdowns (clogs). Constructor During with wastewater removed PIU MNP, Ministry of construction from settlements. * Reliability and non-failure operation of sewerage lines Health (MH) located in the underground spring feeding zone.

* Reconstruction of the above sewerage lines, bringing them out from the area

* Raising responsibility for and strengthening control over land allocation permits and land construction measures Designer, PIU MNP, Ministry of In design stage, Constructor Health, Ministry of During Urban construction Development

28 * Selection of spring intake method justified by hydro- Designer, In design stage geological study (excluding to the extent possible intake of springs of drainage nature).

Drying of spring sources, * Implementation of earth works as a rule by hand in the During disappearing of springs. sources, using mechanisms only in special cases. MNP, MH, construction * In case of permission to use mechanism, selection of Local self- implementation road and agreement with corresponding specialists (hydro- Constructor PIU governance bodies geologist, geologist, engineer).

* Exclusion of explosion works.

* Selection of access roads to sanitary zone intake and Designer, During design and other structures, causing minimum damage to natural Constructor construction landscapes and biodiversity. implementation Damaging natural landscapes, ecosystems in * Adapting to the extent possible the soils and vegetative PIU MNP, MH, the surroundings of water soils brought during turfing and banking of spring intakes Local self- intake facilities. with the site landscape. governance bodies

Re-cultivation of the landscapes of the place the earth is brought to. * Carrying out of justified hydro-geological and hydraulic Designer, PIU calculations required during designing the system capacity and water intake facilities. Drying of upper streams of rivers during transfer into * Selection of correct technological solutions for drainage MNP, In design stage gravity system, disturbance system. Local self- of land and aquatic governance bodies ecosystems. * Determination of environmental flow both for river and for flood bed and provision along the whole river. Action initiator, PIU, WB WRMA * Justification of water abstraction/water quantity during preparation and issuing of water use permit.

29 2 Chlorination stations

* Application of new technologies - installation of Designer, PIU In design and automated vacuum chlorinators with dry chlorine gas Constructor, construction stage dozing where emergency outbursts of chlorine are minimized. Pollution of water basins * Providing chlorine gas transport safety Designer,/servic and landscapes with e provider PIU/operator MNP, MH In design stage chlorine. * Training of service staff on: - provision of personal security, - serving chlorinators with new technologies, - direct elimination of breakdowns, Operator MNP, MH Before starting the - direct warning process, if needed. /Service operation and provider PIU, WB, during the operator operation 3. Pump stations

* In case of transfer to gravity water supply, Environment pollution in implementation of measures directed to the further destiny Action initiator, the areas of former pump of pump stations and their auxiliary facilities (reservoirs, Designer, In design stage stations and auxiliary power sub-stations, suction and pumping technological Constructor PIU MNP, MH facilities. pipelines), aimed at minimizing the damage to the environment.

4. Sanitaryprotection zones

Disturbance of integrity of * Establishment and maintenance of sanitary protection Designer, spring feeding and zones according to the requirements of construction, sanitary Constructor, protection zones, drinking and other standards existing in the RA and other standards Operator During design, water pollution with and rules. construction and infectious disease * Raising responsibility for and strengthening control over PIU MH, MNP operation bacilluses. land allocation permits and land construction measures Designer/ PIU Constructor MH, MNP, MUD In design stage, during * Providing leak-tightness of water intake facilities construction (planning of water-proof doors, manholes, air filters).

Constructor

30 During implementation of construction works in sanitary protection zone: - exclusion of pollution with fuels and oil products, Impact on landscapes and - disposal of construction waste to the biodiversity in sanitary corresponding landfills, Designer, PIU MH, MNP, During protection zone area. - rehabilitation of damaged landscapes, Constructor Local self- construction - land re-cultivation. governance bodies implementation * Installation of sanitary zone fences above a height from the ground not forbidding entry of reptiles, small animals into the protected area, protecting the area biodiversity 5. Bank protective andflood protective structures

* Correct selection of the place for over-ground pipelines Designer, PIU MNP In design stage in rock sections in order to reduce damage to the Impact of bank protective environment from floods and mudflows. and flood protective structures on natural * Give preference to gabion structures filled with coarse aquatic species. stones and tied with nets not influencing free fish travel. In design and * Forbid using the river head stones in the given section for construction stage bank protective structures preventing annihilation of benthos Constructor fauna.

* Selection of water main routes taking into account Designer, PIU MNP In design stage engineering-geological conditions of the area.

* Adoption of solutions justified by calculations for Activization of land passing water main through flood and mudflow gullies. erosion and landslide phenomena * If necessary, implementation of appropriate measures for free passing of floods and mudflows. In design and Designer, construction stage * Regular cleaning of mudflow canals form alluvium and Constructor, silt during the operation. During operation

. Operator

31 6. Water mains and inter-city water supply network

* Selection of routes of water mains and inter-city water Designer, In design stage supply network taking into account engineering-geological conditions of the area, causing minimum damage to natural and city landscapes.

Impact on natural and city * Carrying out appropriate calculations and mentioning Designer, In design and landscapes and guidelines in design documents for organization of washing Constructor construction stage biodiversity. and disinfecting water pipelines and inter-city network with chlorine.

* After washing the pipelines, implementation of chlorine After construction discharge into surface water body or a land area, according PIU MNP, MH completion to the regime planned by the design, which shall be agreed Constructor by ecological expertise in the design stage. * Bringing out the water pipelines' routes to the extent possible from the planned protected areas. After construction completion * As a rule, implementation of underground water Constructor PIU MNP, MH pipelines and implementation of measures for vegetative earth collection, cumulation before the construction and its rehabilitation upon completion of the construction.

* Bringing out the water pipelines' routes to the extent Designer, possible from the planned protected areas. * Avoid making landscape changes, construction of In design and access roads, forced flight sections of pipelines, which construction stage Impact on specially require additional earth and explosive works in specially Designer, protected areas, endemic, protected areas. Constructor, relic species and historical- cultural monuments. * In case there is not an alternative, planning of measures PIU MNP aimed at maximum mitigation of the impact: - disposal of construction waste after the construction, - rehabilitation of damaged landscapes, After construction - land re-cultivation, Constructor, completion and - strict provision of operational rules Operator during operation - reimbursement (plantation).

32 * To reduce as far as possible the area of rehabilitation work implementation during breakdown of water pipelines and inter-city water supply network. * After elimination of the breakdown rehabilitate natural or artificial landscapes. Impact of breakdowns on * If needed, remove the cumulated water by means of the environment and special mechanisms. Operator PIU MH, MNP During the system human health. * Provide corresponding chlorine dosage in water in operation marginal points of blind sections of the internal network after breakdown elimination.

7. Daily regulation reservoirs (DRR)

* Establishment of sanitary protection zones of DRRs providing leak-tightness of DRRs. * Providing the admissible forms and borders of passage with water supply distribution network and other communications (sewerage lines, irrigation lines, water Designer, PIU MH, MNP, In design and supply lines, etc.). Constructor, Local self- Construction stage governance bodies Drinking water pollution * Correct selection of the place for removing the surplus with infectious diseases. water from DRRs.

* Removal and neutralizing of washing waters.

* Application of new technologies - planning improved pressure regulating nodes.

* Training of service staff.

* Providing sanitary and hygienic conditions for the staff. In operation stage Operator PIU, WB

* Providing air conditioning of DRRs and water Water pollution in DRRs proofness in entry structures against rain water. Designer, PIU MH, MNP, In construction and with rain waters. * Providing a filtering load with the required mass and Constructor, Local self- operation stages fraction in air conditioning structures. Operator governance bodies

33 8. Wastewaterfacilities (sewerage lines, collectors)

* Specifying during construction if adjacent water In construction and pipelines exist. operation stages Constructor, PIU MH, MNP, * Providing security of entry of all structures on sewerage Operator Local self- Impact on the health of the lines (manhole, etc.). governance bodies operating staff, population. * Providing the staff with special overalls to avoid infection. * Meeting sanitary standards for safe work. * Training the service staff During operation Operator Operator

* Providing isolation and disposal of cumulated Environment and river wastewater during elimination of breakdown, washing, pollution with wastewater. disinfecting of the site. MH, MNP, During operation Operator PIU Local self- * Conformity of the quality of production wastewaters governance bodies flowing into the city sewerage network with the operation rules for the system.

* Selection of collector routes in accordance with Designer, In design stage Disturbance of natural and providing hydraulic regime and the RA legislation. artificial (inside the city) PIU MH, MNP, landscapes, impact on * After completion of construction works for inter-city Local self- ecosystems and protected and out-of-city sewerage lines (collectors), rehabilitation of Constructor governance bodies After completion areas. natural and artificial (inside the city) landscapes, lands. of construction works * Land re-cultivation.

* Selection of collector routes and solutions for laying that will exclude dangers of breakdowns caused by floods Designer, PIU MH, MNP, In design stage Surface water pollution with from Hrazdan and other rivers. Ministry of Urban wastewater. * Wastewater collection in collectors. Development * Exclusion of river pollution. (MUD), Local In operation stage Operator self-governance L______I______l______|___ bodies

34 9. Wastewater treatmentplant

* Strict provision of rules of safety regulations and hygiene. Impact on the health of the * Providing the required distance of sludge beds from operating staff, population. residential areas. MH, MNP, Ministry * Using dried sludge in agriculture only if the permission of Agriculture (MA) on the basis of mandatory study results exists. Operator PIU Some time after * Training the service staff. operation stage * Development and introduction of new modem technologies.

* Meeting the standards of drying, transporting of sludge and disposed sediment. * Conformity of the treated wastewater quality with the required standards (PLC). * Providing of appropriate quality for water user directly Environment pollution after discharge point of the treated wastewater. (aquatic and land * Justification of wastewater treatment degree taking into Operator PIU, WB MNP, MH During operation ecosystems). account the self-cleaning ability of river. * In case of breakdown in any node of the plant, planning, development and implementation of preventive measures.

10. Storing facilities Pollution of water * Providing safety of storing and protecting chemicals, Designer/oper PIU MNP, MH, In design, environment and aquatic fuels, lubricants, explosives. ator Emergency construction, ecosystems * Securing and elimination (burying, removal, burning, operator PIU management agency operation stages etc.) of out of date or extra materials, according to the existing order MNP, MH, Operation stage Emergency management agency I

35 ANNEX 1: POTENTIAL ENVIRONMENTAL IMPACTS AND PROPOSED MITIGATION MEASURES

Below the Environmental problems arising during the water supply system improvement projects and the planned necessary measures are represented by various links of water supply systems.

Headwork structures The headwork structures of the water supply systems located within the YWSE service area are located in areas ranging between 1 to 80 ha. They include: - spring intake R/C structures, wells and other structures, - chlorination and pump stations, - sanitary protection zone area, - bank protection and flood protection structures, - auxiliary structures, - water lines, and - high and low voltage installations.

Spring intake structures During development of designs for spring intakes repair and reconstruction and during construction implementation, special attention should be paid to ensure leak-tightness. To the extend possible, design of junctions of all kinds (e.g., receiving, supplying, outlet and effluent) should be simplified, avoiding planning extra valve junctions. Valves are prone to corrosion and clogging during long-term operation, creating favorable conditions for generation and growing of various bacilluses. The layers of return filters (planned both in reconstructed and repaired and newly constructed spring intakes) should be designed in accordance with existing standards, specially, they should be equipped with a protective clay-layer to stop infiltration of rain water and wastewater. Additional studies might have to be commissioned to clarify whether spring intakes built more than 40 years ago are subject to wastewater pollution from residential areas constructed at higher altitudes. Possible ways to address this problem include: (i) if the major part of the village is provided with reliable water supply and flush-water latrines, sewerage networks could be installed so that wastewater is removed from risky areas; (ii)) if water supply to the village is insufficient and/or flush-water latrines are rare; yard latrines or pit latrines are recommended. During the design phase, special geological investigations might be required to identify how to implement earth works. Construction of earth works should be done by hand, and in certain cases, machine excavation may be allowed. Excavation methods involving explosives should be prohibited - which could trigger landslides.

Origin of soil and vegetative cover for the construction of dikes and turfs associated with the spring intake structures must be clearly spelled out in specifications. Listing the name of places from where the soil can be extracted is highly recommended to avoid damage of

36 similar structures elsewhere, and surrounding environment.

During implementation of repair and reconstruction projects for the water intake structures located within the YWSE service area the possibilities may occur when it will be necessary to reject a number of half destroyed spring intakes with small discharges, which are subject to full destruction or reconstruction, planning under-bed, underground drainage structures. Such structures, for example, can be planned within Arzni water springs' area, instead of a group of lower, physically worn out spring intakes with high danger of pollution.

Environmental problems can also occur during designing of under-bed water intake structures. The under-bed water intake structures, which are planned in upper elevations of river bed (upper streams of river formation) for provision of drinking water on one hand and for establishing gravity water supply system on the other hand, can cause drying of upper streams as a result of incorrect hydro-geological and hydraulic calculations. In these cases, along with thorough hydro-geological investigations, it is also important to select the correct technological solutions of drainage system (pipes or structures, filtering layers, etc.), as along with provision of the required drinking water quantity, the qualitative indicators of the latter have to be taken into account.

Environmental problems can arise also in case of incorrect selection of the place and depth of artesian and deep wells.

Also, it is important, that the quantitative indicators of the resources are assessed to prevent consumption and depletion of the springs.

Drying of the riverbed can radically change its aquatic life. Under scarce water conditions the representatives of bed fauna (benthos), which take an active part in self-cleaning processes of the river and are very sensitive to the changes of living conditions, can disappear. Benthos is a food base for numerous fish species. Consequently, change in its biomass can have an impact on the fish productivity of the river.

While designing water intakes, a special approach should be applied to the rivers that are fish habitats. The natural process of fish reproduction can be violated not only in case of drying the bed, but also in case of water quality change and as a result of water dam construction.

Chlorination andpump stations When planning environmental measures, the stations for drinking water disinfection - chlorination stations, have to be considered as being among the important headwork structures. In each case a special attention should be paid to the removal of chlorine water of high chlorine content generated as a result of emergency elimination, and measures have to be planned to exclude its discharge into the environment and to reduce the risk of environment pollution.

It has to be noted, that now during planning of repair, reconstruction and construction of

37 chlorination stations in the service field of the operating parties preference is given to the new, automated technologies of vacuum chlorinators with dry chlorine gas dozing, in which emergency releases of chlorine gas are minimized.

In case of absence of sewerage network in the area of existing - reconstructed or newly designed chlorination stations, wells with corresponding volumes have to be planned excluding their direct link with neighboring water basins.

Among the projects implemented in the water supply sector those related to transition of pump systems into gravity are considered as priority projects. During implementation of these projects pump stations and auxiliary structures adjacent to them - reservoirs with considerable sizes, power sub-stations, auxiliary departments, as well as suction and pumping technological pipelines have to be de-commissioned.

In the projects, in which the pump stations will be de-commissioned, special measures have to be planned aiming at clarification of future potential of pump stations and auxiliary structures.

Sanitaryprotection zones When carrying out the improvement and development projects in headwork areas, a special attention has to be paid to the establishment of sanitary protection zones. Often, due to objective reasons, depending on the site relief, it is impossible to meet the requirements of construction codes and regulations governing in the RA and establish sanitary zones for the corresponding areas. In these cases, along with substantiation with design solutions and reduction of sanitary protection zone areas, a special attention should be paid to the problems of leak-tightness of water intake structures (planning of water-proof doors, manholes, and air filters), as well as implementation of area improvement measures, particularly the rehabilitation of natural landscapes, provision of spring feeding and protection zones, application of requirements to the spring surrounding areas.

In some cases, as a result of land allocation permits issued by local government bodies with law infringement, sanitary protection and maintenance bands are built up.

Problems in water supply structures can create conditions for penetration of infectious bacilluses into drinking water. A number of pathogenic microorganisms can appear in drinking water: cholera, dysentery, typhoid and other pathogenic microorganisms that can cause epidemics. The bacilluses of infectious hepatitis A also are transferred through water.

If the requirements of sanitary protection zone and leak-tightness of water pipelines are violated, drinking water can also be a source for infecting with parasites - round warms, lamblia.

During development of designs for rehabilitation of the metal fence (total length reaching 7-8 km) of the sanitary protection zone of water supply systems' headwork,

38 implementation of fence parts (10-15 cm above the ground) allowing entry and exit of small animals and reptiles within the area has to be planned.

Bank protective andfloodprotective structures During implementation of improvement projects for headwork structures a special attention should be paid also to possible flooding from the rivers, such as Hrazdan, Azat and Cassakh rivers. It is not excluded that during seasonal floods such an increase of river flow may occur, as a result of which flood water can penetrate into headwork area and also into water main through spring intakes with violated water proofness. Any working designs have to include a report on comprehensive hydrological investigations.

When planning bank protective and flood protective measures, preference has to be given to gabion structures filled with coarse stones and tied with net sections, which have no impact on fish efficiency of the river in the given section (which can be up to 3 km length) for the rivers being a habitat.

When planning and implementing the bank protective gabion structures a special attention must be paid to the place, where coarse stones will be transported from, as well as to the distance and concrete quarry. It has not be allowed to use those river head stones in the given section for bank protective structures that can cause annihilation of bed fauna representatives. During development of designs for improvement of headwork area a special attention has to be paid to implementation of measures against mudflows, since a major part of the springs feeding Yerevan is located in mountainous and cut relief sites, where numerous small and large gullies exist. Consequently, the pipes originating from spring intakes mainly pass without burying, over ground. Thus, it has to be ensured that their routes do not pass the sites easy for implementation - small gullies, through which rain water with considerable sizes flows during heavy rains, which can damage the pipelines passing that section and penetrate into them.

Water mains

As mentioned before, the project is expected to finance activities to convert water supply systems from pumping to gravity.

In case of transition to gravity system, there is a need for constructing new pipeline sections. Generally, while selecting passage zones of new pipelines, a number of environmental problems can arise. In some cases it is impossible to avoid them because of objective reasons, since the gravity route passage zone of water pipelines can be only one, without alternatives. As an example, the need of constructing access roads can be mentioned, the necessity of forced flight sections of pipelines, that will lead to additional earth and explosion work implementation. The latter can cause activation of land erosion in the activity area, loss of fertile lands, endangering of endemic and disappearing plant types, etc. In any case, while selecting water pipelines' routes, it has to be ensured that the size of adverse environmental impact is minimized.

While selecting water pipelines' routes, a special attention should be paid to the

39 engineering-geological conditions of the site, avoiding passing through landslide areas. Existence of water pipelines in landslide areas causes development and acceleration of landslide processes, land erosion, and the emergencies caused by the landslides (especially in major systems) can lead to large and unpredictable disasters. Therefore, it is important to ensure the efficiency of measures of land construction (including control over land allocation and land use) in order to exclude or minimize formation and activation of landslide phenomena.

When selecting water pipelines' routes, it is necessary to avoid making landscape changes in specially protected areas (reserve, nursery, national park). A special attention has to be paid also to the specific and disappearing plant species, as well as existence of habitats in the mentioned areas. The ignorance of the latter can cause loss of the genotype of species with valuable small population.

Water pipelines' routes, as a rule, should be underground. In case of existence of vegetable soils in their passage zone, measures for their collection, accumulation and further rehabilitation should be planned before beginning the construction. Water pipelines' passage zones through flood and mudflow carrying sections also play an important environmental role, as planning of a number of bank-protection and flood- protection measures are required there.

During selection of outlet junctions along the pipelines' routes, the qualitative and quantitative indicators of flows discharged as a result of disinfecting and washing of pipelines (content of surplus chlorine) that can cause environmental impact, have to be taken into account

Discharge of surplus chlorine and other hazardous substances can not only have a direct impact on living organisms, but also violate oxidation-rehabilitation processes in earth and water. Chlorine, as an active oxidizer, can change the oxygen regime of land and water and cause degradation of eco-systems and reduction of their vital efficiency.

Thus, along with the calculation, also guidelines on correct organization of disinfecting and washing activities, has to be mentioned in the design documents.

Daily regulation reservoirs and inter-town networks

Among the subprojects aimed at water supply system improvement, the problems of distribution network improvement and zoning are considered a priority.

As a result of improvement projects implemented in Yerevan distribution networks and particularly creation of measurement systems during recent years, increase of hydraulic pressures in distribution networks has been observed, which naturally causes breaks and increase of leaks in physically worn out pipe sections. Under these conditions distribution network zoning and construction of new DRRs for its implementation becomes urgent.

From environmental and water quality hygienic requirements point of view, attention has

40 to be paid to the selection of DRRs' place and location. Along with providing leak- tigtness of DRRs and planning sanitary protection zones, a special attention is required also for selecting the place for removing the surplus water from the DRRs. When planning an emergency outlet pipeline to the nearest flood gullies, the capacity of the latter shall be taken into account, to avoid a possibility of emergency discharges from DRRs (mainly risk for large volumes - 10,000 m3 and 20,000 m 3) that may cause major damages to the environment.

During improvement of water supply distribution network, leak repair, disconnection of hidden connections, repair and reconstruction of dividing, regulating and entry valve junctions, a special attention has to be paid to meeting the permissible forms and borders of passing of water supply structures and other communications (sewerage lines, irrigation lines, heat supply lines, etc.) in the neighborhood.

Wastewater systems

Wastewater system is a complex of engineering structures composed of internal networks of residential buildings and structures, inter-district and street networks, main removing sewerage pipelines and wastewater treatment plant (WWTP).

The environment and population health may be adversely affected by the poor condition of Yerevan wastewater system. Both the sewerage lines of apartment buildings' wastewater network and street network are worn out. As a result, wastewater can penetrate (there is a number of such cases observed) into drinking water pipelines, causing cases of epidemic. Wastewater collectors of a group of several buildings or a district are deteriorated, as a result wastewater comes out to an open surface, polluting the environment. There have also been cases when in rural communities that lack irrigation water, residents purposely make clogging in sewerage collectors for using the wastewater for irrigation purposes. Often the sewerage lines, being in a deteriorated condition, are further damaged because of uncontrolled construction works or illegal land allocation. As a result of illegal land allocation the integrity of WWTP's alienation zone is often violated and some buildings, including also residential, independent of the operating services will appear in an unallowable proximity with wastewater treatment and sludge treatment structures, adversely influencing human health.

The wastewater system improvement subprojects will mainly aim at repair, reconstruction and re-commissioning of the existing pipelines and WWTP, as well as construction of new system elements.

The present not purposeful operation condition of Yerevan wastewater treatment plant has caused serious environmental problems. Wastewater systems improvement projects have to address the following: 1. Rehabilitation and expansion of wastewater inter-town system, 2. Development of wastewater collectors rehabilitation and construction projects, 3. Study of the existing wastewater treatment plant, development and implementation of rehabilitation project.

41 Collection of wastewater will have a positive impact on human health, water and land eco-systems. Re-commissioning (reconstruction or new construction) of Yerevan "Aeration" plant will improve sanitary conditions of Yerevan's and Hrazdan river's internal stream basin's residential areas, promote solution of healthcare problems of population and improve environmental situation of Cour - Araks system.

During implementation of wastewater system improvement projects, the main solutions must be directed to the application of new technologies, providing the permissible treatment degree limits. Exceeding of permissible sizes of organic wastes in the wastewater removal process causes formation of viscous sludge, as a result of sedimentation of which the bed fauna of aquatic eco-system - benthos disappears.

42 ANNEX 2: WORLD BANK ENVIRONMENTAL SAFEGUARDS

EnvironmentalAssessment The World Bank requires implementation of environmental assessment (EIA) for the projects funded by it to substantiate that projects are ecologically reliable and sustainable. The scope and analysis methods of EIA are determined depending on the nature, scale and potential environmental impact of the proposed project. The EIA includes the potential environmental risk of the project and impacts on affected area, discusses alternative versions of the project, identifies the ways to refine the planning, design and implementation works that can prevent, mitigate or compensate negative environmental impacts and enhance the positive ones. For identifying the scope and the type of EIA for each proposed project, the Bank implements environmental selection. The proposed projects are classified into four classes, depending on their type, area, as well as the nature and scale of potential environmental impact.

Category A Category "A" projects are considered those that are likely to have significant adverse environmental impacts that are "sensitive," "diverse" and "unprecedented." These impacts may affect an area broader than the project implementation area. EA for a Category A project examines the project's potential negative and positive environmental impacts, compares them with those of feasible alternatives (including the "without project" situation), and recommends any measures needed to prevent, minimize, mitigate, or compensate for adverse impacts and improve environmental performance. Procedures for any environmental category A sub-project would be developed on a case by case in consultation with the World Bank.

Category B A proposed project is classified as Category B if its potential adverse environmental impacts on human populations or environmentally important areas - including wetlands, forests, grasslands, and other natural habitats - are less adverse than those of Category A projects. These impacts are site-specific; few if any of them are irreversible. The scope of EA for a Category B project may vary from project to project, but it is narrower than that of Category A EA. Like Category A EA, it examines the project's potential positive and negative environmental impacts and recommends anti measures needed to prevent, minimize, mitigate or compensate for adverse impacts and improve environmental performance.

Category C A proposed project is classified as Category C if it is likely to have minimal or no adverse environmental impacts. Beyond screening, no further EA action is required for a Category C project.

Class Fl (Financialmediators - FM) The proposed project is ranked as category Fl, if it includes bank credits, through financial mediators, in sub-projects that can have any environmental impact. Before

43 approving the sub-project, the FM checks out through its staff, invited experts or acting environmental institutes the conformity of the sub-project with national, local authorities', this guideline's and Bank's and other requirements.

44 Environment Management Plan Preparation The Environment Management Plan (EMP) represents a complex of mitigating, controlling and institutional measures, which shall be implemented to eliminate, minimize or reach the allowable limit of unfavorable environmental or social impacts.

The EMP includes the following components:

Mitigation The EMP: a) identifies and generalizes the possible unfavorable environmental impacts (including local population and forced migrations), b) describes each mitigating measure with technical details, including the phenomenon type and the conditions, under which it is to be carried out, adding description of designs, equipment and operation process, c) assesses any possible environmental impact of the measures, d) creates a link between the plans of other mitigating measures planned by the project.

Monitoring Environment monitoring during the project implementation gives information on the main environmental aspects, particularly on environmental impacts of the project and the efficiency of the mitigating measures. Such information allows the Bank assess the efficiency of the situation mitigation as a part of project control, as well as plan additional measures, if needed. Consequently, the EMP identifies the monitoring objectives and determines the monitoring type, connecting with the assessed impacts in EIA report and mitigating measures described in EMP.

More exactly, the monitoring part of the EMP represents: a) description of monitoring features and technical details, including the parameters, to be mandatory measured, applied methods, measurement frequency and places, discovering and determination of limits that substantiate the need for additional measures. b) the monitoring and reporting process: 1. provides the conditions, for which special mitigating measures will be required; and 2.gives data on the progress and the results of the mitigating measures.

Development of capacitiesand training To assist in timely and efficient performance of the project's environmental components, the EMP assesses the role and importance of environmental departments at the level of local agencies or ministries. If necessary, the EMP proposes establishment or extension of such departments, operating staff training that will allow implementing the EIA proposals. Particularly, the EMP represents the institutional features of the organizations, which are competent for protection and monitoring. For strengthening the environment management capacities of the organizations implementing the project, the most part of the EMPs provides one or several additional issues: a) technical assistance to the project, b) acquisition of equipment and services, c) organizational reforms.

45 Terms of implementation and estimated cost For all three aspects (i.e. mitigation, monitoring and capacity development) the EMP represents: a) systemization of implementation plans and stages of measures being a part of the project; and b) capital and regular investments and the EMP funding sources. These costs are also included in the general estimated cost of the project.

The EMP integarationin the project The Bank's decision to fund the project make the basis for efficient implementation of the EPM. Consequently, the Bank anticipates that the plan will provide separate representation of mitigating and monitoring measures, as well as the description of the rights of administration. It shall integrate the planning, designing, funding and implementation issues. To obtain such an integration within the framework of the project the EMP shall be presented, and so it will be funded simultaneously with other components.

A summary of the environmental impact assessment process is provided in the matrix below.

46 Environment Impact Assessment Process

N Assessment stages Goal Process Responsibility Solution/Result _ 2 3 4 5 6 l 1. Identify whether the planned activity can C of Ilbl dat Activity Environmental categories, for each Screening cause/ have significant environmental and olection o avalabe ata, executor/Experts, development of actions health impacts/consequences. Depending - field investigations, Stakeholders. category. on the nature and volume of potential - obtaining opinions of authorized impacts on the environment and human environmental and health, as well health, classify the activity to A, B, C and as other bodies Fl classes. , - if possible, providing participation of interested public in the process of preliminary assessment, - official announcement of the results. 2. In preliminary stage identify the possible - collection of information from Activity - Identify the direct and indirect Scoping direct and indirect impacts of the activity various agencies, stakeholder executor/Experts. impacts, on the environment, historical and cultural, organizations, communities, - Choosing the effective version specially protected natural areas, from altemative versions, population health and social-economic - inquiry of opinions of authorized - Determine the information from condition. environmental and health bodies, environmental reports. The importance of the impacts is - discussion of information, determined, based upon the local grouping and prioritizing of environmental priority. The impacts can be problems (the initial list of the positive and negative. If negative, planned impacts is shortened) mitigating measures are to be provided. The altemative, including "no action" option is also considered.

47 7 ~~~~2 3 4 S 6 3. Implementation of Provide the agencies permitting the Includes. Activity executor. Permission and rejection of the assessments and action implementation, as well as - planned activities; The permissio measures required for stakeholders (public members, NGOs) executive summary of the activity, can be issued in case of some enviromnental report with enough information, so that they - goal, changes. are able to make a decision on issuing a - description of options, permiut. - impact assessment for options, comparison of assessments, determination of the preferable option, - impact management plan, - discussion of uncertainties, - technical information, etc. 4. Environment Controlling of all actions being Prepare a clear plan for management actions, Activity executor, Exclusion and mitigation of management plan* implemented by the activity, including which shall include three main stages: Authorities impact on environment and the impacts on the environment and - . responsible for human health. health and building current capacities - implementation of mitigatig measures, controlling. throughout the activity implementation. - monitoring/assessment, This is a complex of actions aimed at plan revision based on the monitoring and providing control, environment impact assessment results of the previous stage. management and improvement, providing conformity with legislation. 5 Public consulting, public Informing beneficiaries, expression of - Public notification about the activity Activity initiator, Process transferences, trust participation provision opinions, concems and assessments by , activity executor, between decision makers them, provides transparency in decision - discussion of questions arisen by the appropriate bodies. interested/affected community. making process, public trust increase, public, obtaining local expertise, reduction of participation in option development and conflicts.- atcpto notodeeom impact assessment process, tad - representing opinions on EIA report, participation in hearings, - participation in implementation and L ______controll_o_th_pann of fthe planned d_ativty activity. l__cntr

48 6 Inclusion of Clarification of responsibilities of each Clarify the responsibilities between: Operator, Clear decision and distribution of responsibilities into the party, as a result of which all the - action initiator Contractor. powers. legal documents signed measures included in EIA report and , between the operator and EMP aimed at exclusion and reduction - authorized, including self-governing the contractor of adverse impacts on the environment authorities, as assessor, and human health will be implemented. - designer,

- activity executor, - monitoring executor, - if needed, also audit executor (controller). 7 Monitoring Identify whether the implementation of There are 3 main types of monitoring: Authorized bodies, Implementation of foreseen the planned activity goes on according - impact monitoring (the scope and degree individual experts. activity according to EIA results to the actions and responsibilities othprjcimatsaseed.and confirmed EMIP. mentioned in contractual documents. - mitigation monitoring

- (whether the mitigating measures are being implemented in accordance with the agreed schedule and as expected),

- conformity monitoring (Identify, whether the facts provided in EIA report conform to the reality from qualitative and quantitative point of view).

49 ANNEX 3: PUBLIC CONSULTATIONS

FIRST PUBLIC HEARING

Place and Date: REC Caucasus Armenian office, Yerevan, 10 of April 2004

Agenda 10:00 - 10:30 Representation of environmental component of the project (A. Hovsepyan)

10:30 - 11:00 Representation of environment management plan (A. Hovsepyan)

11:00 - 12:00 Discussion of the environment management plan

12:00 - 13:00 Presentation and formulation of proposals

13:00 - 13:30 Coffee

Minutes

Ms. A. Hovsepyan, project manager and "Sustainable Water Environment" NGO Board member represented the goals of the environmental component of the project and the public meeting. She described in detail the works carried out in the preliminary stage of the project implementation. After, Ms. A. Iskoyan (EPAC NGO) represented the legal framework. For this activity she considered the Convention on Environmental Impact Assessment in a Trans-boundary Context and the RA Law on the Environmental expertise of a particular importance.

Ms. A. Hovsepyan represented the Environment management plan and proposed to discuss the plan. Ms. Innesa Babayan (RA SCWE), Ms. Nune Bakunts (RA Ministry of Health), Mr. Eduard Mesropyan (JINJ Co. Ltd.), Ms.Nune Darbinyan (Ecoglobe NGO) and others took an active part in the discussions and represented their comments.

The comments and suggestions represented as a result of the discussions were summed up and classified for further consideration.

50 Participants

N° | Name Organization J Telephone, E-mail 1 2 3 4 1. Savadyan Alice National Parliament 58 83 21, 58 83 19

2. Gevorgyan Hasmik Ministry of Nature Protection of RA 58 53 26 ______hlkarhas(Coyahoo.com 3. Pirumyan Edgar WRMA 56 70 97

4. Bakunc Nune Ministry of Health of RA (09) 42 31 85

5. Aghababyan Kamo UNDP/Sida Water Project 64 42 86/25, (09)41 94 16

6. Simonyan Armine WSDPU PIU 54 04 72 7. Gabayan Inessa SCWS RA 54 06 53 8. Mkrtchyan Anna MDPU SI 56 95 20 9. Batoyan Henrikh MDPU SI 54 43 32 10. Haykanush Parsamyan MDPU SI 54 70 74

11. Mesropyan Eduard JINJ Co. Ltd. 54 01 02 iini('dseua.arm 12. Vardanyan Lusine JINJ Co. Ltd. 54 01 02 13. Ghazaryan Hovhannes REC Caucasus 57 47 43, 57 51 48 14. Aslanyan Hasmik "Shoger" NGO 55 47 12

15. Darbinyan Nune "Eco-Glob" NGO armneap2(Rarminco.com57 55 27 16. Sahakyan Kristine "ECOAUDIT" NGO shah arsLa).freenet.am36 17 15 17. Qrishchyan Henrik "Armdesign" SCJSC 56 26 67 18. Davtyan Rudik "Armdesign" SCJSC 56 26 34

19. Iskoyan Aida EPAC epac3arminco.com

20. Hovsepyan Arevik "Sustainable Water Environment" NGO 56 09 84 swe hasmik(oyahoo.com 21. Arsenyan Shahane "Sustainable Water Environment" NGO 56 09 84

51 SECOND PUBLIC HEARING

Place and Date: MDPI Unit, Yerevan, 8 of May 2004

Agenda

10:00 - 10:15 Representation of Yerevan Water and Wastewater Project (A. Mkrtchyan)

10:15 - 10:45 Representation of the report on the environmental component of the project (A. Hovsepyan)

10:45 - 11:15 Representation of environment management plan (A. Hovsepyan)

11:15 - 12:00 Discussion of the environment management plan

12:00 - 12:30 Suggestions and summing up

12:30 - 13:00 Coffee

Minutes

Ms. Anna Mkrtchyan (Municipal Development PMU) represented the works planned under Yerevan Water and Wastewater Project. Afterwards, Ms. A. Hovsepyan, project manager and "Sustainable Water Environment" NGO Board member represented the report on implementation of the environmental component of the project and the revised version of the Environment management plan.

Mr Boris Ghazaryan (Environmental expertise state organization SNCO), Ms. Nune Bakunts (RA Ministry of Health), Mr. Eduard Mesropyan (JINJ Co. Ltd.), and others took an active part in the discussions and represented their comments and suggestions. At the same time they mentioned that the environment management plan had been prepared competently enough, taking into account the environmental impacts.

As a result of the discussions the participating specialists decided that the environment management plan, after some minor corrections, could be considered practically complete and submitted in that form to the Client.

52 Participants

N° | Name | Organization Telephone, E-mail 1 2 I 3 4 1. Savadyan Alice National Parliament alrivaf )web.am

2. Gevorgyan Hasmik Ministry of Nature Protection of RA lilkarhas(~yahoo.comn58 53 26

3. Zakaryan Hrant Ministry of Nature Protection of RA hrantzakarvan54 08 a)75 andex.r'U 4. Pirumyan Edgar Water Resources Management Agency (WRMA) 56 70 97 ______rrumvan(cbwrma.am 5. Mkhitaryan Arman WRMA 54 08 75

6. Ghazaryan Boris Eco-expertise ______non-commercial organization ecowaterf?freenet.am22 15 68, 26 57 62 7. Bakunc Nune Ministry of Health of RA (09) 42 31 85, 52 06 60 8. Srapyan S. Ministry of Urban Construction of RA 56 43 16 9. Kosemyan Romik Municipality of Yerevan 58 21 73 64 42 86/25, (09)41 94 16 10. Aghababyan Kamo UNDP/Sida Water Project kaghababa?netsys.am 50472_ 11. Simonyan Armine WSDPU PIU 54a04d72

12. Gabayan Inessa SCWS RA 54 06 53 13. Karapetyan Liana SCWS RA k_liana a)freenet.am 14. Avoyan Varazdat MDPMU SI 56 95 20 15. Mkrtchyan Anna MDPMU SI 56 95 20 16. Batoyan Henrikh MDPMU SI 54 43 32 17. Wolkling Richard A-Utility 54 29 95, 56 95 13 18. Dilanyan Hermine FICHTNER 0 37 5 05 82

19. Taslanyan Lusine USAID/DAI, Water resources Management in 51 20 28 South Caucasus 20. Mesropyan Eduard JINJ Co. Ltd. 5ini0seua am

21. Vardanyan Lusine JINJ Co. Ltd. 54 01 02 22. Ghazaryan Hovhannes REC Caucasus 57 47 43, 57 51 48

23. Gevorgyan Aida CENN/Armenian Office 51 26 94, aida.gevorgyan(dcenn.orZ51 26 93 24. Hakopyan Susanna ESU NGO 52 38 30 25. Aslanyan Hasmik "Shoger" NGO 55 47 12

26. Darbinyan Nune "Eco-Glob" NGO armneap257a?rinco.com

27. Sahakyan Kristine "ECOAUDIT" NGO 36 17 15

28. Qrishchyan Henrik "Armdesign" SCJSC 56 26 67

53 29. Davtyan Rudik "Armdesign" SCJSC 56 26 34

30. Iskoyan Aida EPAC eD)ac(ZOarminco.com53 92 55 31. Petrosyan Hayk EPAC 53 71 41, 54 51 06

32. Hovsepyan Arevik "Sustainable Water Environment" NGO 56 09 84 swe hasmik(AneYahoomom5 33. Arsenyan Shahane "Sustainable Water Environment" NGO 56 09 84

34. Asatryan Lernik "Sustainable Water Environment" NGO 56 09 84

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