Environmental Assessment Report Summary Initial Environmental Examination Project Number: 43456 August 2010 Kyrgyz Republic: Power Sector Improvement Project Prepared by National Electric Grid of Kyrgyzstan, Kyrgyz Republic for the Asian Development Bank (ADB). The summary initial environmental examination is a document of the borrower. The views expressed herein do not necessarily represent those of ADB’s Board of Directors, Management, or staff, and may be preliminary in nature. KGZ: POWER SECTOR IMPROVEMENT PROJECT INITIAL ENVIRONMENTAL EXAMINATION (IEE) August 2010 NATIONAL ELECTRIC GRID OF KYRGYZSTAN TABLE OF CONTENTS Page A. INTRODUCTION 1 B. DESCRIPTION OF THE PROJECT 1. Project Description 1 2. Category of the Project 4 C. POLICY, LEGAL AND ADMINISTRATIVE FRAMEWORK 1. General 4 2. Environmental Institutions 4 3. Requirements for Environmental Assessment 5 4. Legal Framework 6 5. International Agreements and Conventions 8 D. DESCRIPTION OF THE ENVIRONMENT 1. General 9 2. Climate 9 3. Landscape 11 4. Soils 11 5. Surface (Rivers and Lakes) and Groundwater 12 6. Ecology 14 7. Red Data Book Species 15 8. Specially Protected Area 16 9. Socioeconomic Conditions 16 10. Cultural/Historical Heritage 17 E. SCREENING OF POTENTIAL ENVIRONMENTAL IMPACTS AND MITIGATION MEASURES 18 1. Construction Phase 19 2. Operation Phase 22 F. INSTITUTIONAL REQUIREMENTS AND ENVIRONMENTAL MONITORING PLAN 24 G. ENVIRONMENTAL MONITORING AND MANAGEMENT PLAN (EMMP) 28 H. PUBLIC CONSULTATION AND INFORMATION DISCLOSURE 1. Consultation with NEGK Regional Offices 28 2. Public Consultation 28 I. GRIEVANCE REDRESS MECHANISM 29 J. GENERAL CONCLUSIONS AND RECOMMENDATIONS 29 LIST OF REFERENCES 31 LIST OF ACRONYMS ADB ─ Asian Development Bank AIS ─ air insulated switchgear AMDA ─ automated metering and data acquisition system CB ─ circuit breaker CT ─ current transformer EA ─ executing agency EIA ─ environmental impact assessment EMMP ─ environmental monitoring and management plan GIS ─ gas insulated switchgear IEE ─ initial environmental examination NEAP ─ National Environmental Action Plan NEGK ─ National Electronic Grid of Kyrgyzstan OPGW ─ optical ground wire PCB ─ polychlorinated biphenyls PIU ─ project implementation unit SAEP&FM ─ State Agency for Environmental Protection and Forestry SCADA ─ supervisory control and data acquisition system SF6 ─ sulfur hexafluoride UNDP ─ United Nations Development Programme VT ─ voltage transformer WEIGHTS AND MEASURES C ─ Celsius ha ─ hectare km2 ─ square kilometer m2 ─ square meter A. INTRODUCTION 1. The Safeguard Policy Statement (2009) of the Asian Development Bank (ADB) is grounded in ADB’s Poverty Reduction Strategy and long-term strategic framework. The Poverty Reduction Strategy recognizes that environmental sustainability is a prerequisite for pro-poor economic growth and efforts to reduce poverty. 2. ADB requires environmental assessment of all project loans, program loans, sector loans, sector development program loans, financial intermediation loans, and private sector investment operations. Environmental assessment is a process rather than a one-time report, and includes necessary environmental analyses and environmental management planning that take place throughout the project cycle. 3. In accordance with ADB's Safeguard Policy Statement (2009), this document represents the Initial Environmental Examination (IEE) Report prepared by the National Electric Grid of Kyrgyzstan (NEGK), the executing agency (EA) of the proposed Power Sector Improvement Project (the Project). The IEE was prepared, with the assistance of ADB's Small-scale technical assistance (TA 7368-KGZ), through the following steps. • Collection, review and analysis of existing baseline data (including all available environmental legislation and guidelines) and relevant reports from previous similar projects; • Discussions with experts from NEGK’s Head Office, NEGK regional offices, personnel of substations, etc. • Revision of engineering data, designs, field notes and photographs to identify the various environmental issued involved; • Field trips to examine existing environmental conditions and understand the type and magnitude of expected impacts; • Assessment of possible environmental impacts and mitigation measures for each step of the planning, design, construction and operation; and • Preparation of an environmental monitoring and management plan. 4. The Government of the Kyrgyz Republic (the Government) requested ADB to provide assistance in implementation of the Project in November 2009. B. DESCRIPTION OF THE PROJECT 1. Project Description 5. Project's impact is improved reliability of national and regional power supply in the Kyrgyz Republic and Central Asia. The outcome is the improved operational efficiency of the power companies. 6. Project's physical outputs are: (i) Installation of wholesale digital meters and automated data acquisition equipment at existing grid substations to measure input/output between NEGK, generation companies, distribution companies and import/export boundaries, as well as at large industrial consumers; 2 (ii) Installation of a communications loop and basic components of a Supervisory Control and Data Acquisition system (SCADA) linking six major substations in the northern transmission system, with interconnection to the national dispatch centre, to facilitate automated metering and commercial data acquisition and provide basic SCADA (iii) Upgrading of selected NEGK substations with replacement circuit breakers (CBs), current transformers (CTs) and voltage transformers (VTs). 7. The Project has two executing agencies (EAs): Ministry of Energy, and the National Electric Grid of Kyrgyzstan (NEGK). NEGK is responsible for all physical investments under the Project. 8. The specific types of works involved are as follows. a. Automated Metering and Data Acquisition 9. Establishment of the Automated Metering and Data Acquisition system (AMDA) requires about 2,700 modern solid-state meters to be installed in the 190 high-voltage (HV; 110 kV, 220 kV, 500 kV) substations through out the national HV transmission grid. Some defective or low accuracy current transformers (CTs) and/or voltage transformers (VTs) will also be replaced. The meters are connected to the data aggregator and then to a modem. Commercial metering data are transmitted to the National Control Center (NCC) by Global System for Mobile Communications (GSM). Substations that are outside the GSM coverage will transmit data through microwave radio and power line carrier (PLC). All equipment installation will take place within the compound of existing substations. HV Transmission Grid System 3 b. SCADA and Communications 10. The SCADA links the seven northern substations and three control centers with optical fiber. Of the 560 km of optical fibers, 510 km will be in the form of optical ground wire (OPGW) and 50 km will be underground optical fiber cable. OPGW will be string on existing transmission towers along the existing transmission line route. Underground fiber cables will be laid beneath public roads utilizing existing underground ducts, or where these do not exist through directional drilling to minimize the disruption to road and pedestrian traffic. OPGW and Underground Cable Link Location of Underground Fiber Cable Installation 4 c. Substation Rehabilitation 11. Substation rehabilitation involves the replacement of CTs and circuit breakers (CBs). All installation will take place within existing transmission substations. 2. Category of the Project 12. ADB’s environmental categorization is determined according to the likelihood and magnitude of risk associated with a project when implemented without mitigation. The Project involves installation of equipment in existing substations and on existing transmission towers. Potentially adverse impacts are foreseeable, but not significant, if implemented without mitigation. Therefore, the recommendation is that the project can have an overall environmental categorization of Category B. C. POLICY, LEGAL AND ADMINISTRATIVE FRAMEWORK 1. General 13. The Kyrgyz Republic is divided administratively into seven Oblasts (Provinces) plus the metropolitan region of Bishkek, the capital. Each oblast consists of several rayons (districts) and towns directly subordinated to the Oblast. In each of the Oblasts, there are regional councils, but the main executive authority is represented by the head of the Oblast administration, who is appointed by the Central government. 14. In the context of environmental policy, the President has specific authority on establishing rules of natural resources use, defining and announcing environmental emergencies and environmental disaster zones as well as procedures for collection and use of environmental protection funds. 15. The executive arm of central government is headed by the Prime Minister and the First Vice Prime Minister. Three additional Vice Prime Ministers are responsible for Industrial, Social and Agricultural (including Environmental) Policies and the supervision of the respective ministries and national agencies. 2. Environmental Institutions 16. At the highest level of government, the Jogorku Kenesh (Parliament) - through the Commission on Agriculture and Environment - is responsible for: (i) Defining the overall framework for nature protection policy (ii) Developing and approving laws and regulations (iii) Approving government proposals on resource charges and taxes. 17. A number of environmental responsibilities are delegated to the President’s office. The President