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Devoll Hydropower Project ! ! Official Assessment Statkraft Devoll Hydropower Project Albania Project Stage: Implementation Assessment Date: 21/11/2016 to 25/11/2016 ! ! Final Report Date: 01/06/2017!! ! ! Client:!Statkraft!AS! Lead+Assessor:!Doug!Smith,!independent!consultant!(DSmith!Environment!Ltd)! Co0assessors:!Joerg!Hartmann,!independent!consultant,!and!Elisa!Xiao,!independent!consultant! Project+size:!256!MW! ! ! ! ! ! + + + + + + + + + + + + + + + + + + + + + + + + Cover+page+photo:!Banjë!reservoir,!looking!upstream!towards!the!town!of!Gramsh!and!the!reservoir!tail! ! Devoll Hydropower Project, Albania www.hydrosustainability.org | ii ! ! Acronyms Acronym+ Full+Text+ ADCP! Acoustic!Doppler!Current!Profiler! AIP! Annual!Implementation!Plan! ARA! Albanian!Roads!Authority! ASA! Archaeological!Service!Agency! BOOT! Build,!Own,!Operate,!Transfer! CA! Concession!Agreement! CDM! Clean!Development!Mechanism! CER! Certified!Emissions!Reductions! Devoll!HPP! Devoll!Hydropower!Project,!i.e.!the!entire!project!including!Banjë!and!Moglicë!projects!and! associated!infrastructure! DHP! Devoll!Hydropower!Sh.A! EMAP! Environmental!Management!and!Action!Plan! ESIA! Environmental!and!Social!Impact!Assessment!! ESM! Environmental!and!Social!Management! ESMP! Environmental!and!Social!Management!Plan! ESMPSO! Environmental!and!Social!Management!Plan!for!the!Operation!Stage! EVN!AG! An!Austrian!utility!group! EU! European!Union! FIDIC! International!Federation!of!Consulting!Engineers! GIS! Geographical!Information!System! GHG! Greenhouse!Gas! GoA! Government!of!Albania! GRI! Global!Reporting!Initiative! GRM! Grievance!Redress!Mechanism! GWh! GigawattShours! HSE! Health,!Safety!and!Environment! IFC! International!Finance!Corporation! IH! International!Hydropower! IHA! International!Hydropower!Association! InSAR! Synthetic!Aperture!Radar!Interferometry! IRR! Internal!Rate!of!Return! ISO! International!Standards!Organisation! IUCN! World!Conservation!Union! Devoll Hydropower Project, Albania www.hydrosustainability.org | iii ! LAJV! LimakSAGE!Joint!Venture! LSD! Livelihood!Support!and!Development! MoEFWA! Ministry!of!Environment,!Forests!and!Water!Administration! MW! MegaSwatts! MoEI! Ministry!of!Energy!and!Industry! NCLD! National!Committee!on!Large!Dams! NCR! NonSconformance!Report! NINA! Norwegian!Institute!for!Nature!Research! NTNU! Norwegian!University!of!Science!and!Technology,!Trondheim! NOK! Norwegian!Krone! OECD! Organisation!for!Economic!CoS!operation!and!Development! OHS! Occupational!Health!and!Safety! RAP! Resettlement!Action!Plan! R&D! Research!and!Development! PCQ! Project!Control!and!Quality! PAH! ProjectSaffected!Household! PAP! ProjectSaffected!People! PIU! Project!Implementation!Unit! PPA! Power!Purchase!Agreement! PS! Performance! Standard! (i.e.! a! Performance! Standard! of! the! International! Finance! Corporation)! QRA! Quantitative!Risk!Assessment! STDs! SexuallyStransmitted!Diseases! SWECO! Sweco!AB,!a!Swedish!engineering!company! TWh! TerawattShours! UNESCO! United!Nations!Educational,!Scientific!and!Cultural!Organisation! WACC! Weighted!Average!Cost!of!Capital! WWF! Worldwide!Fund!for!Nature! WWTP! Wastewater!Treatment!Plant! + + Devoll Hydropower Project, Albania www.hydrosustainability.org | iv ! Table of Contents Acronyms!..................................................................................................................................!iii! Table!of!Contents!......................................................................................................................!v! Executive!Summary!..................................................................................................................!vi! Sustainability!Profile!................................................................................................................!vii! Table!of!Significant!Gaps!........................................................................................................!viii! Introduction!...............................................................................................................................!1! 1! Communications!and!Consultation!(IS1)!............................................................................!10! 2! Governance!(IS2)!................................................................................................................!17! 3! Environmental!and!Social!Issues!Management!!(IS3)!........................................................!24! 4! Integrated!Project!Management!(IS4)!...............................................................................!34! 5! Infrastructure!Safety!(IS5)!..................................................................................................!40! 6! Financial!Viability!(IS6)!.......................................................................................................!46! 7! Project!Benefits!(IS7)!..........................................................................................................!52! 8! Procurement!(IS8)!..............................................................................................................!58! 9! ProjectSAffected!Communities!and!Livelihoods!(IS9)!.........................................................!64! 10! Resettlement!(IS10)!..........................................................................................................!74! 11! Indigenous!Peoples!(IS11)!.................................................................................................!83! 12! Labour!and!Working!Conditions!(IS12)!.............................................................................!84! 13! Cultural!Heritage!(IS13)!.....................................................................................................!92! 14! Public!Health!(IS14)!...........................................................................................................!98! 15! Biodiversity!and!Invasive!Species!(IS15)!.........................................................................!103! 16! Erosion!and!Sedimentation!(IS16)!..................................................................................!110! 17! Water!Quality!(IS17)!.......................................................................................................!117! 18! Waste,!Noise!and!Air!Quality!(IS18)!................................................................................!124! 19! Reservoir!Preparation!and!Filling!(IS19)!..........................................................................!130! 20! Downstream!Flow!Regimes!(IS20)!..................................................................................!136! ! ! + Devoll Hydropower Project, Albania www.hydrosustainability.org | v ! Executive Summary This!report!presents!the!findings!of!an!assessment!of!the!Devoll!Hydropower!Project!(Devoll!HPP)!using!the! Implementation!Stage!tool!of!the!Hydropower!Sustainability!Assessment!Protocol.!Devoll$HPP$consists$of$two$ hydropower)plants,)Banjë)(72)MW))and)Moglicë)(184)MW),)both)of)which)are)located)on)the)Devoll)River)in) Albania.!Devoll!Hydropower!Sh.A!(DHP),!now!100%Sowned!by!Statkraft!AS,!is!developing!the!project!on!the! basis!of!a!Build,!Own,!Operate!and!Transfer!Concession,!agreed!in!2009.! Statkraft!and!DHP!defined!objectives!for!this!assessment!concerning!understanding!the!sustainability!profile!of! the!project!and!its!risks,!documenting!and!communicating!achievements,!and!lesson!learning.!The!assessment! was!carried!out!over!the!period!November!2016!to!March!2017,!with!an!onSsite!assessment!encompassing!a! visit!to!the!project!sites!and!interviews!with!stakeholders!conducted!mainly!over!21st!to!25th!November!2016.! This! assessment! meets! the! requirements! of! an! Official! assessment,! as! set! out! in! the! Protocol! Terms! and! Conditions.!The!scope!of!this!assessment!is!the!entire!Devoll!HPP,!which!encompasses!responsibilities!of!all! partners!engaged!in!Devoll!HPP,!not!only!DHP.! Devoll!HPP!is!the!largest!hydropower!concession!in!Albania,!and!Statkraft!is!one!of!the!largest!foreign!investors.! Statkraft! and! DHP! have! established! standards! hitherto! unseen! in! Albania! –! in! governance,! project! management,!infrastructure,!and!environmental!and!social!responsibility,!for!example.!Devoll!HPP!is!delivering! profound! change! in! the! Devoll! valley! and! has! the! potential! to! generate! significant! benefits! for! economic! development,! and! Statkraft! and! DHP! have! been! prepared! to! take! risks! to! deliver! associated! infrastructure.! Devoll!HPP!has!removed!any!public!danger!of!an!unsafe!and!unsightly!coffer!dam!at!Banjë!that!was!abandoned! in!the!1980s! Devoll+HPP+meets+or+exceeds+all+basic+good+practice+criteria+on+16+out+of+19+topics+evaluated+through+this+ assessment.!Reasons!why!the!project!does!not!meet!all!basic!good!practice!criteria!on!other!topics!tend!to! relate!either!to!contractor!management!and!contractors’!performance!(on!waste!management!for!example),!or! to! the! difficulties! of! physical! and! economic! displacement.! On! the! three! topics! that! do! not! meet! basic! good! practice!(IS10!Resettlement,!IS18!Waste,!Noise!and!Air!Quality,!and!IS20!Downstream!Flow!Regimes)!there!is! one!significant!gap!against!basic!good!practice,!resulting!in!a!score!of!2.! Devoll+ HPP+ meets+ all+ proven+ best+ practice+ criteria+ on+ four+ topics+ (IS4! Integrated! Project! Management,! IS5! Infrastructure!Safety,!IS13!Cultural!Heritage,!and!IS14!Public!Health).!Reasons!why!the!project!does!not!meet! proven!best!practice!criteria!on!other!topics!tend!to!relate!to:!contractors’!performance!in!labour!issues;!the!
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