Azerbaijan: Second Road Network Development Program

Environmental Impact Assessment

Draft April 2012

Proposed Multitranche Financing Facility Republic of Azerbaijan: Second Road Network Development Program

Prepared by the Ministry of Transport Azaryolservice for the Asian Development Bank.

This environmental impact assessment 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. ENVIRONMENTAL IMPACT ASSESSMENT FOR ALAT-MASALLI MOTORWAY

1. The Second Road Network Development Program (the investment program) will promote regional cooperation and integration, and widen access to social and economic opportunities via improved road infrastructure in Azerbaijan. Built on the results of the ongoing first Road Network Development Program1 and through a holistic road subsector based approach involving physical investment and capacity development, Azerbaijan’s road network will become more effective and efficient. The investment program fits well with the transport strategy and action plan agreed under the Central Asia Regional Economic Cooperation (CAREC)2 program. This investment program will also strengthen the government’s capacity in strategic planning, project preparation and implementation, maintenance and governance in the road subsector.

2. The government prepared the State Program for Rehabilitation and Development of Azerbaijan Republic Highways (2006–2015), which calls for a considerable increase of funding to rehabilitate and upgrade critical road links, both from loans from international financial institutions and the state budget. It is proposed that the Asian Development Bank (ADB) to finance the new motorway of Alat-Masalli section (63 km) of M3 Highway, and widening of sections (Ganja– Gazakh–Georgian border) of East-west highway. The ADB Country Partnership Strategy supports improving transport infrastructure to achieve the goals of improved connectivity, increased governance, and economic and social development. Thus, the investment program supports the government’s strategy and follows ADB’s Country Partnership Strategy 2012–2017.

3. Accordingly, the project roads to be developed under this investment program are:

• Project 1: Alat-Masalli road section 1 (35km) four-lane new highway (map attached) • Project 2: Alat-Masalli road section 2 (28km) four-lane new highway (map attached) • Project 3: Ganja to Gazakh (70km) widening from two-lane to four-lanes • Project 4: Ganja to Georgian boarder (65km) widening from two-lane to four-lanes

4. In 2007 the Alat-Masalli road project feasibility was prepared by the government for submission to the World Bank, by dividing the road into four sections: 2A, 3A, 3B, and 3C. Two environmental impact assessment (EIA) reports were prepared such that one EIA covered sections 2A and 3A, while the other EIA covered sections 3B and 3C. Now the same project has been submitted to ADB for financing, with all design features and details of the project: design and alignment remain the same. Both EIAs presented a good discussion on the impacts and the possible mitigation measures and cover the proposed ADB projects 1 and 2 referred above. Section 3A is aligned parallel to an existing railway line that passes through a wetland. In July 2011, an addendum to the two EIAs was prepared that investigated the status of the wetland’s sensitivity, and public consultations with respect to the wetlands and associated avifauna was conducted. ADB considers these EIAs as draft documents for disclosing. However, these EIAs are in the process of being updated to reflect the requirements of ADB’s safeguards Policy Statement 2009. The update will include the results of a new public consultation, as the consultations for the original project were conducted between 2005–2007; provide a Grievance Redress Mechanism: a mechanism to consider, manage and solve environmental complaints that may arise; an updated EMP and environmental monitoring plan, both during project implementation and operation. The two EIAs, addendum and their appendices are linked to this note.

1 ADB. 2007. Report and Recommendation of the President to the Board of Directors for the Proposed Multitranche Financing Facility to the Republic of Azerbaijan for the Road Network Development Program. Manila. 2 ADB. 2007. CAREC Transport and Trade facilitation Strategy, Manila. 48 o 30'E 50 o 00'E

Altyaghadz

Astrachanka

Kirovka PROOF ONLY Chilmilli Sumgayit Shamakhy Nabur

Agshu Gobustan Suvelan Pirallahl Pirallahl Island Bidsov Kyrdalan Baku Chilov Island

Kyurdamir Sangachal

REPUBLIC OF AZERBAIJAN SECOND ROAD NETWORK DEVELOPMENT PROGRAM Hajiqabal Alyat Sabirabad 39 o 00'N Shirvan N

0 5 10 20 30 40

Kilometers National Capital District Capital City/Town

Salyan World Bank’s 3A, 3B, 3C (ADB’s Project 1 and 2) Nasimi National Road Sarvan Other Road Bilasuvar Banka Sorsulu Railway River Soverabad International Boundary Boundaries are not necessarily authoritative.

Takla Project 2 (28 km) This map was produced by the cartography unit of the Asian Development Bank. Usuptapa The boundaries, colors, denominations, and any other information shown on this map do not imply, on the part of the Asian Development Bank, any judgment on the Jalilabad legal status of any territory, or any endorsement or acceptance of such boundaries, colors, denominations, or information.

o Project 1 (35 km) 50 00'E Masally

o o o o 40 00'N 40 00'N 46 00’E 50 00’E Gasymly Dzarskij RUSSIAN GEORGIA Balaken FEDERATION Zagatala C A S P I A N S E A Yardymly Sheki Guba Agstafa Siazan o Oghuz o 41 00’N Tovuz 41 00’N Mingechevir Ismailly Sumgayit Lerik Pirallahl Lenkaran Khanlar Yevlakh Terter Kyurdamir Khyrdalan Baku Sangachal ARMENIA Agdere Hajiqabul Sabirabad Alyat Imishli Khankendi Shirvan Heidarabad Salyan Lachin NAKHCHIVAN Bilasuvar AUTONOMOUS REPUBLIC Archivan Nakhchivan Jalilabad o Masally o Note : First Proof, 28 March 2012 39 00’N Julfa 39 00’N Astara Zangilan Second Proof, 28 March 2012 Yardymly Lenkaran Lerik I R A N PROJECT o Astara 48 30'E o LOCATION o 46 00’E 50 00’E

12-0899 AV

AZERBAIJAN REPUBLIC MINISTRY OF TRANSPORT AZARYOLSERVICE

Preparation of Environmental Assessment and Management Plans and Capacity Building Azerbaijan Highway Improvement and Development

SECTIONS 2A-3A: KÜR RIVER BRIDGE TO JALILABAD INTERCHANGE

FINAL ENVIRONMENTAL ASSESSMENT & ENVIRONMENTAL MANAGEMENT PLAN

August 2007

Preparation of Environmental Assessment and Environmental Assessment & Environmental Management and Capacity Building Environmental Management Plan

Disclaimer

This document has been prepared in accordance with the scope of Scott Wilson’s appointment with its client and is subject to the terms of that appointment. It is addressed to and for the sole use and reliance of Scott Wilson’s client. Scott Wilson accepts no liability for any use of this document other than by its client and only for the purposes, stated in this document, for which it was prepared and provided. No person other than the client may copy (in whole or in part) use or rely on the contents of this document, without the prior written permission of the Company Secretary of Scott Wilson Ltd. Any advice, opinions or recommendations within this document should be read and relied upon only in the context of the document as a whole. The contents of this document are not be construed as providing legal, business or tax advice or opinion.

Scott Wilson Ltd August 2007 D112140EAEMP/Section 2/07/08/2007 Preparation of Environmental Assessment and Environmental Assessment & Environmental Management and Capacity Building Environmental Management Plan

CONTENTS Page

EXECUTIVE SUMMARY AND CONCLUSIONS

1 Introduction 1-1

2 Policy, Legal and Administrative Framework 2-1

3 Project Description 3-1

4 Analysis of Alternatives 4-1

5 Baseline Data 5-1

6 Environmental Impacts and Mitigation 6-1

7 Environmental Management Plan 7-1

8 Public Consultation 8-1

APPENDICES

A Terms of Reference A-1

B Site Photographs (April 2007) B-1

C Hydrological Monitoring Study C-1

D Ecological Monitoring Study D-1

E Environmental Mitigation Plan E-1

F Environmental Monitoring Plan F-1

G List of Consultees G-1

H Environmental Guidelines for River Gravel Extraction H-1

I Proposal for Conservation of Gyzyl-Agach Protected Areas I-1

J Bibliography J-1

FIGURES

Map of Azerbaijan

3.1 Alignment for Kür River Bridge and Central Section 3.2 Outline Design for Kür River Bridge 3.3 Outline Design for Salyan Interchange/Railway Crossing 3.4 Outline Layout of Salyan Interchange/Railway Crossing

4.1 Alternatives for Kür River Bridge to Jalilabad Interchange 4.2 Alternatives for Kür River Bridge

5.1 Topography of the Caspian Sea Region 5.2 Azerbaijan Soils Map 5.3 Azerbaijan Climate Map 5.4 Wind Rose for Salyan 5.5 Annual Average Level of Caspian Sea – 1837-2007 5.6 Potential Areas Flooded due to Rising Sea Level 5.7 Hydrological Regime in Wetland Area 5.8 Ecological Survey Locations

6.1 Location of Potential Borrow Sites (Bähramtapa and Vilesh River) 6.2 Material Extraction at Bähramtapa 6.3 Culverts in Railway Embankment

TABLES

1.1 Design Sections

2.1 International Agreements and Conventions

3.1 Traffic on M3 in 2005 (AADT) 3.2 Traffic Forecast – Medium Scenario 3.3 Severe Traffic Accidents (Annual Average, 2001-2005) 3.4 Proposed Highway Under/Overpasses 3.5 Estimate of Quantities

4.1 Analysis of Alternatives: Preferred Alignments 4.2 Bridge Development Options

5.1 Comparative Overview of Soil Properties 5.2 Selected Air Quality Standards 5.3 Flooded Areas in the Coastal Regions of Azerbaijan 5.4 Forecast Flooded Areas in the Coastal Regions of Azerbaijan 5.5 Maximum Allowable Noise Levels 5.6 Threatened bird species of Gyzyl-Agach Nature Reserve and species with numbers exceeding 1% of the geographical population 5.7 Birds of Conservation Concern recorded during 2006/2007 Survey 5.8 Results of Socio-economic Survey – March 2007

6.1 Mitigation Measures – Construction dust 6.2 Mitigation Measures – Construction emissions and odours 6.3 Mitigation Measures – Construction noise 6.4 Distances from Centreline at which Noise Standard is met 6.5 Traffic Data for Noise Calculations 6.6 Recommended Tree Species and Planting Density 6.7 Summary of Impacts and Effects on Wetlands 6.8 Mitigation Measures – Construction workers 6.9 Size and Classification of Land affected by Project

EIA PREPARERS

This report was prepared by Ros Coverley, Team Leader, Scott Wilson

Local and international specialists who contributed to the study were: Nigar Agayeva, Nargiz Assadova, Colin Chant, Serge Droogemans, Brian Empringham, Vusala Gambarova, Hamish Goldie-Scot, Ogtay Gozalov, Ivan Hodgson, Tavakkul Iskenderov, Vaqif Ismayilov, Edda Ivan-Smith, Alan Lewis, Peter Mansell, Kate Molesworth, Constanza Movsichoff, Gara Mustafayev, Melanie Poerschmann, Jon Robinson, Elshan Rustamov, Suzanne Scott, Javier Suleymanova, Manaf Suleymanov

Translators: Mais Babayov and Samira Shirinova

Thanks also to: Emily Spearman

ABBREVIATIONS

AADT = Annual Average Daily Traffic (vehicles per day) aasl = above absolute sea level ABADA = Azerbaijan International Road Carriers Association AAWESVISM = Azerbaijan Amelioration and Water Farming Joint Venture Irrigation Systems Management Office ADB = Asian Development Bank ARCS = Azerbaijan Red Crescent Society asl = absolute sea level AIDS = Acquired Immuno-Deficiency Syndrome ARV = Anti-Retroviral AYS = Azaryolservice JSC (formerly RTSD) AZN = Azeri New Manat bgl = below ground level BOD = Biological Oxygen Demand (liquid effluent) BP = World Bank Procedure CDH = Central District Hospital CENN = Caucasus Environmental NGO Network CIRIA = Construction Industry Research and Information Association CO = carbon monoxide CO2 = carbon dioxide CSAAT = Central for the Struggle against AIDS Trust CSW = Commercial Sex Worker DMRB = Design Manual for Roads and Bridges EA = Environmental Assessment EA&MF = Environmental Assessment and Management Framework EAL = Estimated Allowable Level EBRD = European Bank for Reconstruction and Development EIA = Environmental Impact Assessment e.g. = for example ELV = Emission Limit Value EMP = Environmental Management Plan EP = Environmental Protection ESS = Ecology & Safety Sector (Department in AYS) etc. = and so on EU = European Union FIDIC = International Federation of Consulting Engineers fSCE = former State Committee for Ecology fSU = former Soviet Union GDP = Gross Domestic Product GEF = Global Environment Facility GFATM = Global Fund to Fight AIDS, TB and Malaria GIPA = Greater Involvement of People with AIDS GOA = Government of Azerbaijan ha. = hectare HASPP = HIV/AIDS Sensitisation and Prevention Plan HC = hydrocarbons HGV = Heavy Goods Vehicle HIV = Human Immuno-Deficiency Syndrome IBA = Important Bird Area IBRD = International Bank for Reconstruction and Development ICRC = International Committee of the Red Cross IDA = International Development Association IDP = Internally Displaced Person IDU = Injecting Drug Users i.e. = that is IED = Information, Education and Communication IFI = International Financing Institution IRD = International Relief and Development

IUCN = International Union for the Conservation of Nature JSC = Joint Stock Company km = kilometre LAD = Land Acquisition Department LAP = Land Acquisition Plan m = metre MAC = Maximal Allowable Concentration MCA = Multi-Criteria Analysis MDG = Millennium Development Goal MED = Ministry of Economic Development MENR = Ministry of Ecology & Natural Resources MOH = Ministry of Health MOT = Ministry of Transport MSM = Men who have Sex with Men MYST = Ministry of Youth, Sport and Tourism NAC = National AIDS Centre n.b. = note NGO = Non Government Organisation 03 = ozone OD = Operational Directive OP = World Bank Operational Policy PAH = polycyclic aromatic hydrocarbons Pb = lead PIU = Project Implementation Unit PLWHA = People Living With HIV/AIDS PM = particulate matter RAP = Resettlement Action Plan RER = Regional Environmental Review ROW = Right Of Way RPF = Resettlement Policy Framework RRI = Rhein Ruhr International RTSD = Road Transport Services Department (now AYS) SCIH = Swiss Centre for International Health SEA = Strategic Environmental Assessment SEE = State Ecological Expertise SNIP = Soviet Technical Norms and Rules SO2 = sulphur dioxide SOROS = Open Society Institute SPPRED = State Programme on Poverty Reduction & Economic Development SRH = Sexual and Reproductive Health STIs = Sexually Transmitted Infections TB = Tuberculosis TENs = Trans-European (Transport) Networks ToR = Terms of Reference TRACECA = TRAnsport Corridor Europe Caucasus Asia UN = United Nations UNAIDS = Joint United Nations Programme on HIV/AIDS UNDCP = United Nations International Drug Control Programme UNDP = United Nations Development Programme UNECE = United Nations Economic Commission for Europe UNEP = United Nations Environment Programme UNESCO = United Nations Educational, Scientific and Cultural Organisation UNFPA = United Nations Population Fund UNGASS = United Nations General Assembly Special Session UNICEF = United Nations Children’s Fund US$ = United States dollars VCT = Voluntary Counselling and Testing vpd = vehicles per day WB = World Bank (i.e. IBRD and IDA) WHO = World Health Organisation

EXECUTIVE SUMMARY

Project Background

In May 2007 the Government of Azerbaijan’s Azaryolservis (AYS), in association with the World Bank, commissioned Scott Wilson to undertake an Environmental Impact Assessment (EIA) for the Highway 2 project, whilst Rhein Ruhr International (RRI) commenced the engineering design.

The Highway 2 project is the largest road development project currently underway in Azerbaijan. At present two roads, namely the M3 and M4, run the 313 km between Baku-Alat-Astara. The Highway 2 project will upgrade the 240 km, mainly on new alignments, from Alat through to Astara, on the Iranian boarder. The current World Bank funded assignment involves design and environmental works for Alat (south of Baku) to Masalli (near Sarcuvar) only.

The main objective of the Highway 2 Project is to reduce transport costs and improve access, transit and safety within Azerbaijan’s north-south corridor. For road users, project implementation is intended to lead to a better road quality meeting mid-term traffic projections, better safety through new alignments and bypasses of cities, avoiding hazardous crossing of villages by heavy transit traffic, lower travel costs and a shorter travel time.

Strategic environmental assessment of the Highway 2 Project, including development of framework documents for environmental assessment and management and resettlement policy, were prepared by Scott Wilson in 2005. These documents have helped ensure that the project complies with Azerbaijan’s legislation, procedures and policies, international conventions and World Bank safeguard policies, particularly in terms of environment, resettlement and land acquisition. They provide the basis for the impact mitigation measures described in this environmental assessment (EA), as well as for the provisions for environmental management during project implementation.

Construction has already started on the first section of the Alat-Astara. It consists of the upgrade from 2 lanes to 4 lanes of 22 km of highway between Xirdirli Interchange and Kürsengi Interchange.

This project has been split into two phases. During Phase I Scott Wilson and RRI studied feasible alternative alignments, this was particularly important for the Wetland areas. The Phase I: Analysis of Alternatives Report summarise key policy, environmental, socio-economic, engineering and construction-related issues taken into account when identifying a Preferred Alternative. Phase 2 consists of undertaking detailed environmental studies and specifying environmental management and monitoring requirements, based on the preliminary engineering designs being developed by RRI for each section of the route.

This EA is based on the preliminary design for the 110 km Central Section / Section 2, which runs from the Kür River Bridge to the Jalilabad Interchange.

This project has been classified category A for environmental assessment purposes under World Bank definitions. This category requires a detailed EA to be undertaken, together with the development of an environmental management plan (EMP).

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Project Description and Alternatives

The exact alignment of the M3 highway will be defined during the detailed engineering design study (Preparation of Preliminary and Detailed Design for Alat Astara Phase III). At present, preliminary designs have been prepared and a 120 m wide road corridor marked out on site.

There will be no access to the highway other than via grade-separated intersections. The vehicles allowed to use the highway will be trucks, cars and motorbikes with an engine capacity above 125 cm3. Agricultural and animal-drawn vehicles will be prohibited.

In order to minimise the barrier effect of the new road and maintain rural connectivity, bridges and/or underpasses will be constructed at a number of locations. These will allow vehicles, pedestrians, livestock and wild animals to cross the alignment. New roads, parallel to the highway, will enable local residents access onto the highway through grade-separated intersections.

Within this Section there are three major interchanges, namely: Salyan Interchange; Bilasuvar Interchange (near Shorsulu); and Jalilabad Interchange (near Uzuntapa).

The design will allow maintenance unit, equipment and material to access the network on a daily basis. This will include winter maintenance, emergency interventions and diversion of traffic when necessary. Although no toll gate will be installed at this stage, the highway may be tolled in future.

The average width of the new 4-lane highway is 60 m (30 m either side of the centre line). The highway will be on an embankment, which will vary between 1.8-14 m, with an average of around 3 m. The preliminary design uses a design speed of 120 km/h on flat terrain. The alignment will be fenced on either side with a 2.5-3 m high plastic coated steel mesh fence.

Construction materials, such as fill material and bitumen, are generally not available in the project or wider surrounding area. It is anticipated that they will need to be imported from sites that are some distance from the construction area.

At specific points along the route the highway and associated structures will come into contact with water, through drainage channels. Monitoring suggests that in these channels salinity levels are relatively high, as such sulphate resistant mixes will be required for parts of any structures that come into contact with saline soils or water so that the design life is not reduced.

Over a 4-month period, from June-September 2006, Scott Wilson and RRI undertook a detailed analysis of various alternative routes as shown in the diagram below. This process enabled the best route alignments to be moved forward to the preliminary design phases. In assessing the alternatives both environmental and engineering aspects were taken into consideration.

The alignment for this Section of the route was particularly complicated due to some alternatives taking the route close to the Gyzyl-Agach Strict Nature Reserve (an internationally protected Ramsar Site) and all routes having the highway cross the Mahmudchala and Akchala wetlands (both proposed Ramsar Sites). In all, between the Salyan Interchange and the Masalli Interchange, a total of 9 different alignments were assessed using the following environmental constraints/criteria: Impact on existing hydrology; Impact of construction material extraction & transportation; Noise and air pollution; Magnitude of resettlement and relocation; Extent of impact on agricultural lands; Extent of loss of drainage/irrigation structures; Loss of planted forest area; Extent of local roads/railways crossed; Impact on cultural, archaeological and burial sites; Extent of need for temporary access roads.

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Ultimately it was decided that the following alignment was the best:

EA RA1 RA2

This was due to RA1 and RA2:

• Having the least requirement for resettlement; • Having the least direct impact on irrigation and drainage infrastructure; • Not expected to impact directly on planted forest areas; and • Crossing the lowest number of local roads and railway tracks.

In addition RA2 would have the least loss of private agricultural land. It should also be noted that the conclusions show that this alignment came out with the best ranking against the socio- economic criteria.

West of Salyan City, the planned highway will cross the flood-prone Kür River. It has been decided that at this point, a new simple three span concrete structure 240 m wide unsupported by piers will be constructed, rather than using a combination of the existing/old bridge and/or row of pillars that currently cross the river.

In November 2006, on the basis of the analysis of alternatives and the precautionary principle regarding environmental issues, AYS and the World Bank indicated their support for the western alignment for the new bridge over the Kür River and the Railway Alignment. They indicated that there was a strong case to move the route closer to the railway (RA1) unless there were reasons (e.g. engineering, environmental) to do otherwise.

Their rationale was as follows:

• Minimise impact on wetland ecology; • Potential impact of the increasing level of the Caspian Sea; • More/closer potential connections to Masalli and other centres of population.

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As agreed with AYS and the World Bank, a 6 month hydrological and ecological baseline monitoring programme (December 2006-May 2007) has been undertaken for the Mahmudchala and Akchala wetlands to gain a greater understanding of the dynamics of this area.

The full comparative assessment of the 9 alternative alignments and bridge development options can be viewed in more detail in the Phase 1: Selection of Preferred Alternatives, RRI (2006).

Physical and Biological Environment

The study area lies within the Kura Intermontane Depression (Kura-Araz geographical district). The predominant type of geomorphology is ‘accumulative-denudation plateaus and plains’ and ‘abrasive-accumulative and abrasive-deflationary flat sea planes’, which extend along the Caspian Sea.

The altitude of the area, which is essentially flat, varies between –20.5 m above the Baltic Sea Level (absolute sea level) near Asagi Noxudlu on the Kür River to –4.2 m aasl near Qacaqkand.

Most of the study corridor is formed by sierozem (meadow gray soil), which occurs to the south of Alat over a 120 km zone. The agricultural potential is classified as low to medium. Numerous patches of salt marshes occur in Salyan district. They are especially frequent on the territory of Shirvan National Park and its fringes and are generally restricted to the lowlands with altitudes <100 m. In agricultural terms they are not productive.

The overall area has a dry sub-tropical and semi-desert to steppe climate with very hot summers and moderately warm winters. The average annual rainfall is 200 mm-300 mm with rainy seasons in spring and autumn. Average annual temperature is 14.5oC. In the area between Salyan and Bilasuvar, western winds dominate in winter and eastern winds during the summer period. Average annual evaporation is 800-1,000 mm, humidity is 31-50%.

The landscape consists of extensive, flat, almost featureless coastal plains. Apart from individual and small groups of trees and shrubs, generally close to villages or derelict industrial buildings, there are few vertical features to be seen.

The air quality in the study area is good, as there are few industrial activities in the region and none within the vicinity of alignment. In general, the main source of air pollution is dust eroded from flat, dry, un-vegetated agricultural or barren land soil surfaces by the wind.

It has been identified that in the future there could be an increased chance of flooding due to the rising level of the Caspian Sea. The rise of the Caspian Sea level is a relevant factor when designing a new highway in the coastal plain. Studies show that the level of the Caspian Sea has fluctuated by 6-7 m over the past few centuries and about 13 m over the last 500 years. In 2006 it was assessed that the level was at approx –26.8 m above absolute sea level (aasl). Most researchers predict that the sea level will rise to –25 m aasl by the years 2010 (ADB, undated), 2020 (Kudat et al, 1999), which would lead to 460 m2 of land being flooded in Azerbaijan (State Committee on Ecology, 1998).

The main natural watercourse in the area is the Kür River, which accounts for approximately 90% of the surface water resources in Azerbaijan. The principal tributary of the Kür River is the Araz River. The Kür is recharged by melted snow (approx. 50%), groundwater (approx. 30%) and rainwater (approx. 20%). The Kür floods regularly during both spring (April-June) and autumn, the water flow in May-June makes up 60-70% of annual flow.

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Irrigation and drainage systems are essential for agriculture in Azerbaijan. Irrigation is the largest water user in the country: the total area with installed irrigation is 1.45 million ha, nearly 85% of the cultivated area

One of most important ecological features in the study area are the wetlands. The Mahmudchala wetlands extends from the Shorsulu-Bilasuvar area in a south and south-eastern direction, continuing as the Akchala wetlands and ending up in the lagoons and water ponds of the Gyzyl-Agach Bay Strict Nature Reserve on the Caspian Sea. Studies indicate that the Mahmudchala and Akchala wetlands are not hydrologically linked by surface water. Further monitoring of the water chemistry suggests that the water bodies either side of the railway embankment draw their water from different sources.

The groundwater table in the area has become closer to surface following the influence of irrigation and drainage systems. In the area around Gyzyl-Agach Bay, groundwater levels have risen to 0.1-1.2 m bgl. In the Lenkeran lowland, the groundwater table is at 2.5-5 m bgl and ranges between 0.2-0.5 m bgl in the coastal zone.

Given the current low-moderate level of road traffic and general lack of industrial activity along the Alat-Astara road, noise is not considered to be a key environmental issue.

Gyzyl-Agach Bay Nature Reserve provides habitat for over 450 plant and 380 animal species, many of which are included in the IUCN Red List and Azerbaijan Red Data Book. The number of birds has significantly decreased over the past century but the Bay is still one of most important habitats for water birds in Azerbaijan. The Bay also plays an important role as a place of concentration and growth for many species of fish. Mammals recorded in the Reserve include wild boar, wolf, jackal, reed cat, badger, otter and nutria. In April 2006 the Ministry of Environment & Natural Resources submitted an application for the Mahmudchala and Akchala Wetlands to be designated as Ramsar sites due to their important bird populations. Surveys indicate that 13 of the numerous recorded bird species were on the chosen route alignment were either recorded as being Vulnerable, Near-threatened, Endangered, Critically endangered or were in the Azerbaijan Red Date Book.

Socio-Economic and Socio-Cultural Environment

In 2004, the total populations of Salyan, Neftchala and Jalilabad districts were 117,400, 75,000 and 182,100 respectively.

The only four settlements within 2 km of the new highway are Cuxandli (north of the Kür River), Asagi Kurkendi (south of the Kür River), an unnamed hunting settlement (at the northern end of the wetland crossing) and Uzuntapa (at the southern end of the wetland crossing).

In the Salyan district the economy is predominantly agriculture specialising in grain, potato, vegetables, fruit and grapes and to some extent cotton production. Many farmers previously involved in cotton production have shifted to grain cultivation and rearing livestock: cattle, sheep and poultry. There are state agricultural enterprises, 86 private and 261 individual farms. In addition to agriculture, there are some processing and manufacturing activities including cotton ginning and plastic production as well as an oil and gas production unit.

Neftchala district’s main economic activity consists of chemical production. The district has large reserves of iodine- and bromine-bearing waters as well as oil and gas. Agricultural activities are quite limited due to the soil conditions and the irrigation and drainage system. The fishery sector is highly developed with increasing investment in hatchery and nursery operation for sturgeon breeding.

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Jalilabad district income is from agriculture including: grain growing; viticulture (grape cultivation); fruit farming; and cattle breeding. Development plans include upgrading local roads, improving the water supply in rural areas, upgrading existing schools and building new schools, repairing old hospitals and building new hospitals.

In March 2007, Scott Wilson undertook informal interviews in Asagi Kurkandi and Uzuntapa with 19 local residents. Results showed that people in Uzuntapa have a higher average salary and more public buildings, including schools, medical points and religious places of worship within immediate reach of where they live. Most of the villages along the proposed route have graveyards attached to them.

Summary of Significant Environmental Impacts and Mitigation Measures

During the construction period, temporary environmental impacts of varying severity will occur. These could include: potential pollution of air, surface and groundwater; construction noise; temporary impairment of traffic safety due to traffic diversions and materials transport; disruption of access for pedestrians, non-motorised and agricultural vehicles and livestock. The contractor’s yard, work camps and workforce may be further potential sources of environmental and socio-cultural impact (including health issues e.g. HIV/AIDS).

Procurement of construction materials is of major importance. The only cement factory in Azerbaijan producing cement to international standards is ‘Garadagh Cement’ at Sahil settlement on the Baku-Alat highway. Bitumen is manufactured locally by the Baku Oil Refinery ‘Azerneftjak’. An estimated 15-20 million m3 fill material will be required construction of the road embankment between Salyan and Masalli. Existing borrow pits have been identified at Bähramtapa (180 km by railway from Masalli) and Vilesh River (20 km by road from Masalli).

Rail transport of material extracted at Bähramtapa is presently done using wagons with a pay- load of 60 t (~40 m³). For comparison, a heavy 10 t truck travelling on a public road can usually transport a volume of around 5.6 m3 of aggregate. The actual quantity loaded and transported from Bähramtapa is 4,000 m³/week. Assuming a transport rate of 5,000 m³/day, which is 4-5 train loads, the time to supply 10 million m³ is about 6 years. This rough calculation highlights the dimensions of the enormous task required to supply materials, not only in technical terms but also in relation to logistics, administration and cooperation.

Extraction, processing and haulage of these huge quantities of materials must be managed. Environmental permits will be required, e.g. operation of borrow pits, for asphalt and cement batching plants.

The construction of the highway will have permanent impacts on the geomorphology in the area through ground disturbance from earthworks (road bed and base filling). Although the quality of the topsoil is regarded as low, it has a high value due to its scarcity. Where topsoil is removed it should be stockpiled and stored appropriately for reused in ‘future rehabilitation works’, such as embankment slopes. Vegetation clearance should be limited to the minimum required for works. Construction and use of appropriately sited haul roads are to be minimised so as to reduce the loss of agricultural land. Hunting/poaching of wildlife by construction workers will be banned.

Both solid and liquid waste will be produced from the construction of the highway. Whilst exact quantities are still unknown, as it is currently in the preliminary design phase, it can be specified that where possible, surplus materials will be reused or recycled. Where wastes (inactive e.g. concrete and masonry or active/special e.g. paint, oil, batteries and bitumen) are generated they should be segregated and stored appropriately in covered containers or tanks with bunds until they are safely removed from site by a licensed waste carrier. The handling and storage of wastes will be covered by a waste strategy produced by the Contractor.

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It has been identified that during construction dust will cause the largest air quality impact. Dust generation will be minimised through good working practice and covered as part of the Environmental Management Plan. During the operational phase the process of moving vehicles off the local roads, away from heavily populated areas, such as towns and villages will result in an improvement to the local air quality.

The preliminary design includes modification of the existing irrigation/drainage network. Where the highway crosses major irrigation/drainage channels, bridges will be built to span channels, therefore maintaining irrigation/drainage flows and accommodating irrigation channel cleaning activities. Minor channels will be culverted. Large quantities of water will be required during construction works. Water supplies and watercourses must be protected from over- abstraction/pollution. Where possible, road runoff should be intercepted and treated to avoid release of pollutants into the watercourses. Where this is not possible discharge of polluted waters should be directed away from non-flowing waters.

Careful consideration needs to be given to the drainage design of all road surfaces and slope drainage. Controlled drainage in and around the new highway is required not only to protect the surface and groundwater quality and maintain existing drainage patterns, but also to avoid over- wetting the underlying soil in the embankments, which could lead to slope instability.

Commercial extraction of aggregate from watercourses is an operation that should be undertaken with some care. Over-extraction within a river channel can lead to changes in the watercourse and problems of erosion downstream.

As has been previously stated the highway will be on an embankment of varying height. Where reasonably practicable the engineers have aligned the highway away from noise sensitive receptors. Where this has not been possible such as Cuxandli, Asagi Kurkendi, an unnamed hunting settlement to the north end of the wetland crossing and Uzuntapa it has been suggested that either: i) Noise barriers of some description should be installed along the worse affected sections of the route; ii) A low noise surface is used on the highway in specified locations; or iii) Acoustic double glazing and ventilation is installed in affected properties. At these four villages there will also be a negative visual impact. It is considered, however, that in general the visual impact will be negligible due to the nature of the natural landscape.

All structures including bridges have been designed to take into account earthquakes and seismic activity.

It is uncertain at the present time if the fence that will be erected either side of the highway will be at the top or bottom of the embankment. It has been noted that if the fence were to be at the bottom then it will ensure that there is little or no grazing pressure, however this will also result in loss of grazing land for cattle. It has been recommended that locally available plants and grasses should be left to regenerate naturally. Inside the interchanges suitable shrubs and trees, within a fenced area, should be planted at a pre-specified density.

The fence also serves the purpose of ensuring that both wild and farmed animals are kept off the highway where they would have otherwise been killed by passing vehicles. Where road construction results in the clearance and/or demolition of habitats, works should be scheduled outside of bird nesting season.

Special care needs to be taken when working in the wetlands due to the national importance of wintering and breeding birds and the regional importance of the plant communities. The following impacts and associated mitigation has been identified for the protected areas and significant natural sites. If the mitigation is implemented adequately then it is anticipated that the impacts will be reduced to either negligible or low adverse.

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Impact Mitigation proposed Construction Phase Temporary landtake (e.g. construction compounds, haul Removal of hauls roads and compounds and roads) habitat reinstatement Permanent Landtake leading to habitat loss (this can be None proposed regarded as an operational impact, although the habitat [Mitigation possible if additional wetlands loss occurs during construction) created in adjacent areas] Run-off of construction materials including silts from spoil Control procedures including storage area and fill materials and accidental spillages of oils and other locations chemicals from construction vehicles Ecological supervision Temporary habitat fragmentation Temporary culverts and removal of haul roads Noise, vibration and visual disturbance during Few possible measures construction to any sensitive species Changes in grazing / wetland use by farmers None required Changes in hunting use (both legal and illegal) None required Operational Phase Run-off and accidental spills of oils and other chemicals Effective local emergency capacity for major from road transport incidents [No run-off treatment systems] Permanent habitat fragmentation Increased culverts number and specification Noise, vibration and visual disturbance from road traffic to Few possible measures any sensitive species Changes in grazing / wetland use by farmers None required Changes in hunting use (both legal and illegal) None required

At present the exact size of the labour force required for the construction of the highway is unknown. It could be possible that at the height of construction there may be the need for in excess of 700 people. It is anticipated that of these required workers, 50-75% will be from Azerbaijan.

Temporary and permanent disturbance to local communities should be minimised. The alignment has been selected to minimise loss of property and agricultural land. Underpasses and bridges have been designed at certain intervals so as to provide connectivity between two locations and ensure that there are appropriate levels of safe access by people, non-motorised and agricultural vehicles to farmland and community facilities, livestock access to pasture, both during and after construction of the new highway.

To help reduce/control the spread of HIV/AIDS the Ministry of Health as stated that: There will be preferential employment policies for local people; Awareness programmes on HIV/AIDS and other infectious diseases for contractors and local people; and Education for truckers about the issues of HIV/AIDS. There is also been talk of providing free condoms.

It is not anticipated that any site of cultural heritage will be disturbed through this alignment of the highway, however, should something be identified during construction works then the Ministry of Culture wishes to be notified.

The purpose of environmental management during construction and operation is to avoid or at least to control potential impacts and disturbance to the human and natural environments. This will be achieved through the implementation of appropriate mitigation measures, control procedures and monitoring defined in the environmental management plan.

Monitoring of environmental impacts will be carried out by AYS’s Ecology & Safety Sector (ESS) and District Maintenance Units. AYS’s ESS will be responsible for reporting to AYS’s Project Implementation Unit on a regular basis.

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Public Consultation

Meetings relating to upgrading the road in the Salyan area and Central Section were held in Salyan on 11th August 2005 with representatives of the Local Executive Power, AYS and local villages. Participants at the meeting in Salyan expressed a wide range of views for and against the project. They also raised the issue of compensation for land affected by the works.

Over the period May 2006-April 2007, discussions relating to the proposed project have been held with government, non-government organisations and the public, as follows:

Environmental/engineering issues: Ministry of Ecology & Natural Resources (MENR) State Expertise Unit; MENR Environmental Assessment (OVOS) Sector, MENR Department of Protection of Biodiversity and Specially Protected Areas; MENR Hydrometeorology Centre; AYS Project Implementation Unit, Investment Department, Ecology & Safety Sector, Land Acquisition Department, as well as local offices; Azerbaijan Centre for Biological Diversity Non-Government Organisation (NGO) and Azerbaijan Ornithological Society NGO; Azerbaijan Amelioration and Water Farming Joint Venture Irrigation Systems Management Office; Azizbeyov Channel Maintenance Unit; Salyan Water Drainage Board; World Bank; RRI design engineers, economists and sociologists; Scott Wilson construction supervision team

HIV/AIDS: AIDS Control Centre; Azerbaijan Red Crescent Society; Global Fund for HIV/AIDS Control Programme; ICRC; Ministry of Economic Development, State Poverty Reduction and Economic Development Unit; Ministry of Health; Ministry of Youth, Sport & Tourism; People Living with HIV/AIDS NGO; Public Unit for the Struggle against AIDS; Reproductive Health Centre; SOROS; Truck Association NGO; UNDP; UNFPA; UNICEF

Informal interviews with representatives of the municipalities and local residents of Asagi Kurkandi and Uzuntapa were held in March 2007. The purpose of these discussions was to disseminate information about the project and to gain an understanding of village life, facilities and spatial dynamics.

Public disclosure of the draft Environmental Assessment & Environmental Management Plan (EA and EMP) was made in Salyan on 24th July 2007 and in Jalilabad on 25th July 2007. The meetings were arranged by the relevant Local Executive Powers following a request from AYS’s PIU. Representatives of AYS’s ESS and Land Acquisition Department, as well as Scott Wilson’s environmental team and RRI’s engineering design team took part in the presentations. At Salyan, the results of the EA and EMP for Sections 1a, 1c and 2a to 3a were presented and discussed. At Jalilabad, the results for Sections 2a to 3a were presented and discussed. As expected, most of the discussion centred on land acquisition and compensation.

A consultation with NGOs was held in Baku on 9th August 2007. Issues discussed included: the Highway II strategic environmental assessment (2005), why the road was not elevated to avoid land aquisition, translation of specific bird names, roadside planting, waste management, the location of petrol stations and rest areas.

Conclusions

The preliminary engineering design and associated environmental assessment for the Kür River Bridge to Jalilabad Interchange are the result of several years of studies relating to development of the Highway 2 Project. No show-stopping environmental issues have been identified in the current study. The alignment has been selected to take into account of a range of engineering, environmental and related issues in particular the wetland areas. Temporary and permanent impacts on the physical, biological and socio-cultural environment will be mitigated either

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1 INTRODUCTION

1.1 Project Background

The Baku-Alat-Astara highway (M4/M3) is a 313 km road which runs from Baku to the Iranian border in a north-south direction. The 4-lane Baku-Kyurdamir (M4) highway and mainly 2-lane Alat-Astara (M3) highway intersect at Alat. The existing M3 links the district centres of Alat- Salyan-Bilasuvar-Jalilabad-Masalli-Lenkeran-Astara. Under the Highway 2 Project (PO94488), the World Bank (WB) and Government of Azerbaijan intend to finance the full design and upgrade of the M3 highway between Alat and south of Masalli. The majority of the new upgrade will through new alignments.

A Regional Environmental Review1, Environmental Assessment and Management Framework2 and Resettlement Policy Framework3 were prepared by Scott Wilson in 2005, in compliance with national requirements and the World Bank’s safeguard policies and procedures4. These studies provided information about key environmental and socio-economic issues in the Project- affected area to decision-makers within the Government and funding institutions to help them make informed decisions about: selection of the highway improvement scenario and if/where a new highway is preferred; the optimal location for the alignment and selection of appropriate alternatives within the individual sub-projects.

The first section of the Alat-Astara Highway to be upgraded is 22 km between Alat and Yenikand. In this section, it is proposed to widen the existing 2 lane highway to 4 lanes, within the existing Right of Way (ROW). The environmental assessment for the proposed works was carried out by Rhein Ruhr International (RRI) in 20055. Construction works commenced in early 2007 and are expected to take 18 months to complete.

During Phase I of the current study, an iterative process of assessing feasible alternative alignments for all other sections of the Alat-Astara Highway was undertaken by Scott Wilson and RRI6. The Phase I: Analysis of Alternatives Reports7 summarise the key policy, environmental, socio-economic, engineering and construction-related issues taken into account when identifying the Preferred Alternative. During Phase 2, detailed environmental studies are being undertaken and environmental management and monitoring requirements specified, based on the preliminary engineering designs being developed for each section of the route approved by the Government of Azerbaijan.

This environmental assessment for Kür River Bridge to Jalilabad Interchange is one of a series developed for the Highway 2 Project. This section is approximately 110 km long. The environmental assessment for Northern Section 1: Alat Interchange to Xirdirli Interchange (9 km) and Kürsengi Interchange to a point north of Salyan Interchange (19 km) was submitted in April 2007.

1 Scott Wilson (2005) Azerbaijan Highway Improvement and Development: Regional Environmental Report, Baku, November 2005 2 Scott Wilson (2005) Azerbaijan Highway Improvement and Development: Environmental Assessment and Management Framework, Baku, November 2005 3 Scott Wilson (2005) Azerbaijan Highway Improvement and Development: Resettlement Policy Framework, Baku, November 2005 4 Including OP/BP/GP 4.01 Environmental Assessment and OP/BP 4.12 Involuntary Resettlement. 5 RRI (2005) Upgrading of a 22 km section of the Alat-Astara Highway – Environmental Assessment (Final Report) Baku, December 2005 6 RRI, the consultants engaged on the parallel project: Preparation of Preliminary and Detailed Design for Alat Astara Highway including Resettlement Action Plan and Land Acquisition Plan (‘the engineering design study’) 7 RRI (2006) Alat-Astara Highway Phase I: Selection of Preferred Alternatives (Draft Final Report), Baku,September 2006 and Scott Wilson (2006) Azerbaijan Highway Improvement and Development: Phase I Report: Analysis of Alternatives, Baku, November 2006

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1.2 Objective and Scope of the Study

Environmental assessment (EA) is a process by which the existing or ‘baseline’ environment into which a proposed project is to be introduced is described. The anticipated impacts (both positive and negative) of the project on the existing environment are analysed and presented, in order to provide relevant information to decision-makers within government (statutory authorities). The potential environmental impacts of the proposed project can then be evaluated along with the relevant technical, economic and other important aspects.

This Environmental Assessment report is one of a series of environmental assessments which developed for the Highway 2 Project, covering the proposed upgrading works between Alat Interchange and Masalli Interchange.

For design purposes, the highway has been divided into the following sections:

Table 1.1 Design Sections

Section Previous Description EA report study Northern 1a 1 Alat Interchange-Xirdirli Interchange (excludes Alat Interchange- Section Xirdirli Interchange) Xirdirli Interchange; 1b 2 22 km section (Xirdirli Interchange-Kürsengi Kürsengi Interchange) already designed and under Interchange-north of construction Salyan Interchange 1c 3 Kürsengi Interchange-Yenikand Interchange (excludes Kürsengi Interchange) Central 2a 4 Kür River Bridge Kür River Bridge- Section 2b 4 Salyan Bypass Jalilabad 2c 5 Salyan Interchange to Bilasuvar Interchange Interchange Southern 3a 5/6 Bilasuvar Interchange-Jalilabad Interchange Section 3b 7 Jalilabad Interchange-Goytapa Interchange Jalilabad 3c 7 Goytapa Interchange to Masalli (Sarcuvar) Interchange-Masalli Interchange (excludes Masalli Interchange) (Sarcuvar) Interchange

NB. Bilasuvar Interchange is located near Shorsulu, Jalilabad Interchange near Uzuntapa and Masalli Interchange is near Sarcuvar. Masalli Interchange to Astara/Border with Iran will be designed and constructed under a separate project financed by ADB.

Three environmental assessments have been prepared covering the following sections:

• Northern Section: Alat Interchange to Xirdirli Interchange and Kürsengi Interchange to north of Salyan Interchange • Central/Southern Section: Kür River Bridge to Jalilabad Interchange • Southern Section: Jalilabad Interchange to Masalli (Sarcuvar) Interchange

The three draft environmental assessments have been disclosed and discussed during the public consultation process. The Final Environmental Assessment Report comprises a Non- Technical Summary, covering the proposed Highway 2 Project works between Alat Interchange and Masalli Interchange, together with final versions of the three environmental assessments.

The Terms of Reference for the EA for M3 Kür River Bridge to Jalilabad Interchange is presented in Appendix A. The project has been assessed by the World Bank and Azaryolservis’s (AYS) Ecology & Safety Sector (ESS) as Category A under the provisions of

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World Bank Operational Policy 4.01. This category requires a detailed EA to be undertaken, together with the development of an environmental management plan (EMP).

This Environmental Assessment Report presents the results of strategic and site-specific environmental studies undertaken between July 2005 and June 2007, including the 6 month hydrological and ecological monitoring studies of the wetlands between Salyan and Masalli. The preliminary design was issued by RRI on 21st July 2007. Comments on the draft EA (submitted in June 2007) were received from the World Bank on 16th July 2007 and, via AYS’s PIU, on 2nd August 2007.

The ‘study corridor’ has been defined to include all relevant issues relating to the physical and natural environment and socio-cultural context. The study corridor comprises an area extending approximately 500 m either side of the existing road and proposed road corridor, and all areas between the two.

All issues relating to land acquisition and resettlement for this project are included in the engineering design study being undertaken in parallel to the environmental study.

Environmental considerations have been integrated into the preliminary design as practically feasible through close consultation between the engineering design team and the environmental study team. The subsequent ‘Preparation of Preliminary and Detailed Design for Alat-Astara Phase III’ will provide the opportunity to make final adjustments of the alignment and optimise the design of structures. In this regard, the EMP section of this report provides a set of mitigation measures which will need to be taken into consideration by the detailed design team and during preparation of tender documents/specifications.

1.3 Structure of Report

Following an introduction to the Kür River Bridge to Jalilabad Interchange study in Chapter 1, an outline of the policy, legal and administrative background is presented in Chapter 2. A description of the Kür River Bridge to Jalilabad Interchange route and structures proposed is given in Chapter 3. There is a brief overview of the alternative alignments considered in Chapter 4.

Chapter 5 describes the physical, biological and socio-cultural background of the study area, including the results of the 6 month hydrological and ecological baseline studies of the Mahmudchala and Akchala wetlands. Chapter 6 assesses the potential impacts of construction and operation of the Kür River Bridge to Jalilabad Interchange section of the new highway on the local environment.

Measures to avoid or mitigate adverse environmental impacts identified in the preceding chapters are summarised in Chapter 7. Consultation undertaken during the course of the study is described in Chapter 8.

Appendices include: • Terms of Reference • site photographs (May 2007) • Environmental Mitigation Plan • Environmental Monitoring Plan • list of consultees • detailed bibliography

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2 POLICY, LEGAL & ADMINISTRATIVE FRAMEWORK

2.1 Institutional Framework

2.1.1 Environment

The key environmental institution in Azerbaijan is the Ministry of Ecology and Natural Resources (MENR). MENR was established by Presidential Decree in 2001 from the former State Committee for Ecology and Natural Resources Utilisation. At that time, MENR took over the functions of several other state bodies such as the departments of Hydrometerology, Geology, Forestry and Fishery. MENR’s activities are sub-divided into the following main areas:

• Environmental policy development • Environmental protection • Water monitoring and management • Protection of marine (Caspian Sea) bio-resources • Forest management • Bioresources and protected areas management

MENR’s State Ecological Expertise (SEE) department (under the Department of Environmental Policy and Environmental Protection) is responsible for the review and approval of environmental impact assessments (EIAs) submitted by developers.

The other government institution involved in the preparation and implementation of the Project is AYS, in particular the Highway 2 Project Implementation Unit and the Ecology & Safety Sector (ESS), a relatively new department established under AYS’s Road Maintenance Unit. AYS’s ESS will have the responsibility for ensuring the implementation of the recommendations contained in the Environmental Management Plan (EMP).

There are over 60 ecological Non-Government Organisations (NGOs) in Azerbaijan. Two NGOs – Azerbaijan Centre for Biological Diversity and Azerbaijan Ornithological Society - have provided local experts to the team to help prepare this report.

2.1.2 Land Acquisition and Resettlement

The AYS’s Road Protection Service (RPS) is responsible for control of the road reserve and vehicle overload control. The RPS has spearheaded the preparation of the inventories of properties within the road reserve, coordinating the local representatives of each of the authorities with designated responsibilities for the inventory. The RPS has a central office in Baku, and several regional offices throughout the country.

The AYS (through its Traffic Regulation sector) is required to issue permits to build and operate developments within the road reserve. This requirement was first introduced in the 1989 Decree No. 461, however most of the owners of buildings within the road reserve either (i) did not apply to AYS for this permission; or (ii) constructed buildings within the 60 metre wide road reserve, despite having received a permit from AYS for construction outside the road reserve.

Protection of the road reserve, and prevention of further encroachment is also the responsibility of the Ministry of Transport (designated to the RPS) with the Ministry of Internal Affairs and local Executive Authorities (local district governments).

The local Executive Powers and Municipalities have general powers for approving new building developments in respect of planning requirements, appearance, architectural style and construction standards. Local officers are required to instruct building owners to stop

Scott Wilson Ltd 2-1 August 2007 D112140EAEMP/Section 2/07/08/2007 Preparation of Environmental Assessment and Environmental Assessment & Environmental Management and Capacity Building Environmental Management Plan construction of illegal buildings in the road reserve, and obliges them to seek permission from the Ministry of Transport and the State Committee on Mapping and Land approval for any such developments. The February 2004 Decree also requires the Local Executive Powers and Municipalities to participate with the Ministry of Internal Affairs, Ministry of Economic Development, Ministry of Finance and the State Committee of Construction and Architecture in preparing inventories of all structures in the road reserve, identifying their legitimacy and value. These inventories are required to be submitted to the Cabinet of Ministers who then directs appropriate action.

AYS’s Land Acquisition Department (LAD) is tasked with carrying out future land acquisition/expropriation8 and resettlement procedures. They will have responsibility for coordinating studies, including their consultation and disclosure; liaison with the relevant ministries and agencies regarding approvals and clearances; and the practical implementation of related plans.

2.2 National Environmental Policies

The constitution of the Republic of Azerbaijan defines principles for environmental protection and ownership of natural resources along with regulations for their use. The legislative framework relating to the environment consists of:

• Parliamentary legislation that establishes the State regulation of strictly protected natural areas, and the protection and use of the environment and biodiversity • Presidential Decrees and orders and the resolutions of the Cabinet of Ministers that ensure the implementation of the major provisions of the laws • By-laws of the executive authorities (Ministries and Committees) that specify the activities to implement the laws • International Agreements and Conventions to which Azerbaijan is a signatory

The Law on Environmental Protection (EP) of 1999 governs environmental protection in Azerbaijan. Legislation on land use and development consists of the Land Code and other legislative acts. Laws on the protection and sustainable use of natural resources include: Law on Plant Protection (1996), Forestry Code (1997), Water Code (1997), Law on Fisheries (1998), Law on Fauna (1999) and Law on Protected Areas (2000).

Laws regulating environmental pollutants include those relating to environmental protection (1999), atmospheric pollution (2001), pesticides and agrochemicals (1997), industrial and domestic waste (1998) and water supply and wastewater (1999).

There are several different categories of officially protected areas in Azerbaijan including:

• National Parks, e.g. Shirvan National Park and Hirkan Forest National Park: areas with ecological, historical and aesthetic balues, designated for nature protection, environmental awareness, scientific, cultural and other purposes. All land and natural resources belong to the Park management authority, and some economic activities (including ecological tourism) are allowed.

• Strict Nature Reserves, e.g. Gyzyl-Agach Bay State Nature Reserve and designated Ramsar Wetland of International Importance: state-owned, strictly protected areas designated for nature protection and scientific research. No economic activity is allowed. All have management plans and both enforcement and scientific staff.

8 Expropriation refers to the situation where a government or someone in authority takes away private property (e.g. buildings, land) for public use

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There are special buffer zones around these areas, and other natural areas such as rivers and water sources. The level of protection given to different protected areas depends on their significance – international, national, regional or local.9

2.2 Other Regulations relating to Environment and Road Construction10

Azeri Law on Automobile Roads (March 10, 2000) Section 39: Protection of the Environment: States that any construction or reconstruction of roads requires the official approval of the Ecological Committee. State of the art technology must be applied and that chemicals used must be environmentally sound. The unit of the Ministry responsible for road environment must approve the proposed environmental, health and safety norms of the construction.

SNIP11 2.05.02-85 Building Code & Regulations for Automobile Roads Ch. 3: Environmental Protection: Indicates the general need to minimize adverse environmental impacts in road design and provides for instructions on the removal and re-use of top soil (no. 3.4); the need to provide buffer between the road and populated areas and to carry out noise reduction measures to assure compliance with the relevant sanitary norms (no. 3.9); on the dumping of excess materials (no. 3.12).

The Law of the Republic of Azerbaijan on Sanitary and Epidemiological Safety, 1993 Section III: Responsibilities of State Bodies, Agencies, Companies… on the Provision of Sanitary and Epidemiological Safety: General framework provisions on the requirement to provide healthy and safe conditions at workplaces and work camps (and many others) in compliance with the relevant sanitary hygiene, construction regulations and norms (particularly items 14, 15 and 16).

Safety Regulations for Construction, Rehabilitation and Maintenance of Roads, 1978: Comprehensive compilation of safety rules to technical safety requirements of road construction equipment, operation and maintenance of asphalt plants, work in borrow sites, loading and unloading operations, work with toxic substances, etc.

SNIP III-4-80 Norms of Construction Safety: Detailed regulations on construction worker’s health and safety. Chapters 2 and 5 provide organisational procedures of construction and work sites and material transport. Annex 9 contains standards on maximum concentrations of toxic substances in the air of working zones; Annex 11 states that workers need to be informed and trained about sanitation and health care issues and the specific hazards of their work.

Guidelines for Road Construction, Management and Design, February 7, 2000: Part I: Planning of Automobile Roads: Addresses environmental issues in road design, construction and maintenance. Part II: Construction of Automobile Roads: Requires that the impacts on the ecological, geological, hydro-geological and other ecological conditions are minimised by implementing adequate protective measures. Part III: Protection of the Environment: Requires the consideration of appropriate protection measures, which shall contribute to the maintenance of stable ecological and geological conditions as well as the natural balance. Provides general overview on the requirements for environmental protection.

BCH 8-89 Regulations on Environmental Protection in Construction, Rehabilitation and Maintenance of Roads: Comprehensive provisions on environmental protection measures in road construction such as use of soils; protection of surface and groundwater resources;protection of flora and fauna; use, preparation and storage of road construction machinery and materials; servicing of construction machinery; provisional structures; provisional

9 Anon (2004) Country Study on Biodiversity and First National Report: Republic of Azerbaijan 10 RRI (2005) Upgrading of a 22 km section of the Alat-Astara Highway – Environmental Assessment (Final Report) Baku, December 2005 11 Soviet Technical Norms and Rules

Scott Wilson Ltd 2-3 August 2007 D112140EAEMP/Section 2/07/08/2007 Preparation of Environmental Assessment and Environmental Assessment & Environmental Management and Capacity Building Environmental Management Plan roads; fire protection; borrow pits and material transport; avoidance of dust; protection of soils from pollution, prevention of soil erosion etc. The appendices to this document also state standard for: maximum permitted concentrations of toxic substances; noise control measures; soil pollution through losses of oil and fuel from construction equipment; quality of surface water.

Sanitary Norms CH 2.2.4/2.1.8.562-96, 1997: Ambient noise quality and maximum allowable noise level standards for residential, commercial and industrial areas, hospitals and schools (day/night standards).

Reg. 514-1Q-98 Regulation on Industrial and Municipal Waste: This law includes requirements for industry and enterprises on the implementation of identified standards, norms and environmental protection for waste when designing, constructing or reconstructing.

2.3 International Environmental Policies

Azerbajan is a signatory to most international agreements and conventions relating to the environment, as indicated in Table 2.1.

Based on article 151 of the Azerbaijan Constitution, international Conventions over-ride national laws if there is any conflict. The Law on Environmental Protection specifically states that environmental assessment process in Azerbaijan (State Ecological Expertise) is guided, inter alia, by international legal obligations.

Table 2.1 International Agreements and Conventions

International Convention Year ratified UNESCO Convention on Protection of World Cultural and Natural Heritage 1994 UN Framework on Climate Change 1995 UN Convention for the Protection of the Ozone Layer (Vienna Convention) 1996 Agreement on Mutual Cooperation of the Commonwealth of Independent States 1998 in the area of Hydrometeorology Convention on International Trade in Endangered Species of Wild Fauna and 1998 Flora (CITES), and Agreement on Protection of Sturgeons UN Convention to Combat Desertification 1998 UN Convention on Environmental Impact Assessment in the Trans-boundary 1999 Context (Espoo Convention) Convention on the Conservation of European Wildlife and Natural Habitats 1999 (Bern Convention) UNECE Convention on Access to Information, Public Participation in Decision- 1999 Making and Access to Justice in Environmental Matters (Aarhus Convention) UNESCO Convention on Wetlands of International Importance especially as 2000 Waterfowl Habitat (Ramsar Convention) UNECE Convention on the Protection and Use of Trans-boundary 2000 Watercourses and International Lakes (Helsinki Convention) UN Convention on Biological Diversity 2000 FAO Convention on Plant Protection 2000 Protocol on UN Framework Convention on Climate (Kyoto Protocol) 2000 Protocol on Substances that Deplete the Ozone Layer (Montreal Protocol) 2000 European Agreement about Transportation of Dangerous Goods on 2000 International Routes UN Convention on the Control of Transboundary Movements of Hazardous 2001 Wastes and their Disposal (Basel Convention) UNECE Convention on Long-Range Trans-boundary Air Pollution 2002 Source: www.biodiv.org

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Azerbaijan is a party to the UN Economic Commission for Europe (UNECE) Convention on EIA in a Trans-boundary Context (or Espoo Convention12), which stipulates the obligations of Parties to assess the environmental impact of certain activities at an early stage of planning. The Convention also lays down the general obligation of States to notify and consult each other on all major projects under consideration that are likely to have a significant adverse environmental impact across boundaries.

The Convention on Wetlands of International Importance as Waterfowl Habitat (‘Ramsar Convention’) was signed in Ramsar city (Iran) in 1991. This was the first international agreement for protection and rational use of natural resources. Wetlands are among the most threatened ecosystems in the world because they have traditionally been regarded as wastelands and invariably offered opportunities for alternative use, especially agriculture. Increasingly, however, wetlands have come to be regarded as valuable resources, providing many goods and services critical to environmentally sustainable development; they are also of crucial importance to conserving the world’s biodiversity.13 The objectives of the Ramsar Convention are to stem the progressive encroachment on and loss of wetlands now and in the future, whilst recognising the fundamental ecological functions of wetlands and their economic, cultural, scientific and recreational value; and to coordinate international efforts for this purpose.

More than 100 countries have signed the Convention. Signatories are obliged to: (i) specify at least one wetland on a List of Wetlands of International Importance; (ii) encourage the wise use of wetlands; (iii) establish wetland reserves, cooperate in the exchange of information and shared wetlands species.

More than 900 sites are currently listed in the Ramsar Convention. There are several criteria for including a site:

• Originality or representativeness (typicalness for the present landscape or the territory) • Plants and animals • Waterfowl (e.g. regular holding of no more than 20,000 waterfowl at least in one main season of the year – wintering, breeding, migration or moulting) • Fishes

Information on sites identified as potential Ramsar sites, but which are not included in Ramsar Convention, is updated regularly and held in the Wetland International database. Sea/shore, inland and anthropogenic wetlands can be included in the Ramsar Convention list.

The Convention on Biological Diversity seeks to ensure conservation of biological diversity and sustainable use of its components. WB is one of the Implementing Agencies for channelling resources available from the Global Environment Facility (GEF) to viable biodiversity projects in developing countries and is engaged in project lending for environmentally sustainable development. The first national report on Azerbaijan’s biodiversity was issued in April 2004.14

Azerbaijan is also a signatory to the UNECE Convention on Access to Information, Public Participation in Decision-Making and Access to Justice in Environmental Matters (also ‘Aarhus Convention’15), which establishes a number of rights of the public (citizens and their associations) with regard to the environment. Public authorities (at national, regional or local level) are to contribute to allowing these rights to become effective.

12 ratification 01.02.1999 13 World Bank (2002) Environmental Assessment Sourcebook Update No. 28: Wetlands and Environmental Assessment, June 2002 14 Anon (2004) Country Study on Biodiversity and First National Report: Republic of Azerbaijan 15 ratification 09.11.1999

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In relation to access to information, it is important to note that maps are currently regarded as classified information within Azerbaijan and it is not possible to obtain or use them without specific official permission. Photocopying or reproduction of maps is prohibited. New maps to a variety of scales have been produced since 2001 by the State Cartographic Committee which have been updated to reflect alphabet and place-name changes, however these have not been made available in electronic format to RRI. For this reason, the alternative alignments and preliminary designs have been produced on a basemap which does not reflect the existing conditions.

2.4 World Bank Safeguard Policies

World Bank (WB) environmental and social safeguard policies are intended to prevent and mitigate undue harm to people and their environment in the development process. These policies provide guidelines for the WB and borrowers in the identification, preparation and implementation of programmes and projects.

Environmental Assessment (EA) is one of 10 environmental, social and legal safeguard policies of the WB. EA is used in the WB to identify, avoid and/or mitigate the potential negative environmental impacts associated with lending operations. The purpose of EA is to improve decision making, to ensure that project options under consideration are sound and sustainable, and that potentially affected people have been adequately consulted. The WB’s environmental assessment policy and recommended processing are described in Operational Policy (OP)/Bank Procedure (BP) 4.01: Environmental Assessment. This policy is considered to be the ‘umbrella’ policy for WB environmental ‘safeguard policies’.

The relevant safeguard policies to be considered at all stages of preparation and planning are:

• Involuntary Resettlement (World Bank OP/BP 4.12); • Natural Habitats (World Bank OP/BP 4.04: Natural Habitats 2001); • Forestry (World Bank OB/BP 4.36); • Management of Cultural Property (World Bank OP 11.03).

The WB’s requirements on Information Disclosure are detailed in The Disclosure Handbook 2002.

The WB OB/BP on Involuntary Resettlement requires WB-assisted projects to avoid or minimize involuntary land taking. If this cannot be avoided, displaced persons need to be meaningfully consulted, compensated for lost/damaged assets and assisted in restoring or improving their living standards and livelihood. The policy requires that if involuntary land taking and resettlement become necessary, a clear plan for compensating and assisting displaced persons be prepared by the borrower by appraisal for WB review. Such a plan must be substantially completed prior to the commencement of civil works.

The WB OP/BP on Natural Habitats seeks to ensure that WB-supported infrastructure and other development projects take into account the conservation of biodiversity, as well as the numerous environmental services and products which natural habitats can provide to human society. The policy strictly limits the circumstances under which any WB-supported project can damage natural habitats, i.e. such land and water areas where most of the native plant and animal species are still present. Specifically, the policy prohibits WB support for projects which would lead to significant loss or degradation of any Critical Natural Habitats.

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Critical Natural Habitats include natural habitats which are either:

1. legally protected; 2. officially proposed for protection; 3. unprotected, but known to be of high conservation value.

In other (non-critical) natural habitats, WB-supported projects can cause significant loss or degradation only when:

• there are no feasible alternatives to achieve the project’s substantial overall net benefits; and • acceptable mitigation measures, such as compensatory protected areas, are included within the project.

As mentioned earlier, Azerbaijan is a signatory to the Convention on Biological Diversity, which seeks to ensure conservation of biological diversity and sustainable use of its components. WB is one of the Implementing Agencies for channelling resources available from the Global Environment Facility (GEF) to viable biodiversity projects in developing countries and is engaged in project lending for environmentally sustainable development. WB may assist parties to meet their obligations under the convention, including the following:

• development and implementation of national strategies, plans or programmes for the conservation and sustainable use of natural resources; • integration of conservation and sustainable use of natural resources into relevant sectoral and cross-sectoral plans, programmes and policies.

At the Project level, WB seeks to ensure that its lending operations comply with international obligations to protect biodiversity. EAs for WB should take into account the impacts of proposed projects on a country’s biodiversity.

The WB OP/BP on Forestry aims to reduce deforestation, enhance the environmental contribution of forested areas, promote afforestation, reduce poverty and encourage economic development. The policy defines a forest as an area of land of not less than 1.0 ha with a tree crown cover (or equivalent stocking level) of more than 10% and that has trees with the potential to meet a minimum height of 2 m in situ (in its original position). The WB does not finance projects that, in its opinion, would involve significant conversion or degradation of critical forest areas or related critical natural habitats.

Critical forest areas are natural forest lands which are:

• existing protected areas and areas officially proposed by governments as protected areas, areas initially recognised as protected by traditional local communities, and sites that maintain conditions vital for the viability of these protected areas; • sites identified by WB or an authoritative source, such as areas with known high suitability for biodiversity conservation and areas that are critical for rare, vulnerable, migratory or endangered species.

The WB OP on Cultural Property is based on the acknowledgement of cultural resources as sources of valuable historical and scientific information, as assets for economic and social development, and as integral parts of a people’s cultural identity and practices. WB policy as stated in Operational Directive (OD) 4.50 is to: (a) assist in protecting and enhancing cultural property through specific project components and (b) decline to finance projects which significantly damage cultural property, and assist only those that are designed to prevent or minimize such damage.

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WB policy on Public Consultation and Disclosure follows specific procedures: EA reports will be presented to both the Government of Azerbaijan and WB Management and serve as a background document for approval by the competent authority. In accordance with OP/BP 4.01, the Borrower (i.e. the Government of Azerbaijan) will have to make the draft EA Report and Land Acquisition Plan (LAP) available in Azerbaijan at a public place accessible to project- affected groups and local NGOs. The Borrower must also officially transmit the EA report and LAP to WB. Once the EA report and LAP have been locally disclosed and officially received by WB, the WB will also make them available to the public through its Infoshop.16

2.5 Construction Permits

Prior to starting construction, permits from the following organisations will be required:

1. State Committee of Construction and Architecture 2. State Purchase and Sale Agency 3. Republic Ministry of Finance 4. State Road Transport Department 5. Republic Head Fire Safety Office 6. Republic Hygiene and Epidemiology Centre 7. Republic Seismological Centre 8. Republic Ministry of Communication 9. Republic Melioration and Water Industry Committee 10. Ministry of Ecology and National Resources 11. State Railway Department 12. Azerbaijan Republic State Oil Company 13. “Azerigaz” Joint-stock Gas Company 14. “Azerenerji” Joint-stock Electricity Company 15. “Azersu” Joint-stock Water Company 16. Local Executive Power 17. Research Division Centre (review, if project was done by another organisation) 18. Transport Project Department (review, if project was done by another organisation)