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Semi-annual Environment & Social Monitoring Report (July to December 2017) Environmental and Social Performance Report December 2019 GEO: Adjaristsqali Hydropower Project Prepared by Adjaristsqali Georgia LLC The Environmental and Social Performance Report 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. Your attention is directed to the “Terms of Use” section of this website. In preparing any country program or strategy, financing any project, or by making any designation of or reference to a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area. SEMI-ANNUAL ENVIRONMENTAL AND SOCIAL MONITORING REPORT REPORTING PERIOD: 01 JULY 2017 – 31 DECEMBER 2017 TABLE OF CONTENTS Sr No Chapter Page No 1 Certification …………………………………………………. 1 2 Summary ……………………………………………………. 2 3 Compliance evaluation …………………………………….. 4 4 Major environmental and social achievements …………. 5 5 Major challenges and issues for the Company …………. 5 6 Key Project implementation data relevant to E&S ……… 8 performance evaluation 7 Compliance with IFC Performance Standards / ……….. 9 EBRD Performance Requirements / ADB Safeguard Policy Statement (SPS) Annexure 1 HSE Performance Indicators ……………………………… 31 Annexure 2 Construction Phase Environmental and Social Action Plan (ESAP) as per Schedule 12 Annexure 3 Operation Phase Environmental and Social Action Plan (ESAP) as agreed with Senior Lenders 2 SEMI-ANNUAL ENVIRONMENTAL AND MONITORING REPORT 1. Certification: Georgia: Adjaristsqali Georgia LLC Semi-Annual Environmental and Social Monitoring Report (SAMR) Reporting Period: 01 July 2017 – 31 December 2017 Company and Project Information: Company: Adjaristsqali Georgia LLC ("AGL" or "the Company") Physical address of the Company: 6 Irakli Abashidze Street Batumi - 6010 Georgia Company website: www.agl.com.ge Project: The development, construction, operation and maintenance of the Shuakhevi and Skhalta hydro-electric power plants with total electricity generation capacity of 187MW, to be located on the Adjaristsqali River in Georgia. Authorised AGL representative who can be contacted by Lenders on the SAMR: Name: Rahul Shah Title: Chief Financial Officer Company: Adjaristsqali Georgia LLC Tel: +995 577 15 00 84 Email: [email protected] Certification of the SAMR by Adjaristsqali Georgia LLC I certify that the data contained in this SAMR completely and accurately represents Adjaristsqali Georgia LLC during this reporting period. Rahul Shah __________________________________________________________________ Adjaristsqali Georgia LLC Signature 1 2. Summary: On August 4, 2017 rock fall / collapses were suspected in the transfer tunnel from Skhalta to Didachara as no water was flowing from the tunnel outlet. Subsequent investigations confirmed collapses at about 170m from the Didachara outlet. Similarly, after commencing generation from 2nd October 2017, abnormalities were observed in operating parameters in the form of higher than normal guide vane opening and lower upstream pressure (meaning higher head losses) which indicated potential blockages in the Head Race Tunnel (HRT). The HRT was also drained for inspection which revealed about 6 major rock falls / full collapses and several small rock falls in various sections of the HRT. Detailed investigations and collection of rock samples for confirming the geological aspects of various rock classes in these sections and assessment of required remedial support works are in progress. In parallel, the design of the tunnel rock support classes is being reviewed which will be finalized after the receipt of the results of geological tests. It is envisaged that the tunnel repair works shall be completed by the first quarter of 2019, but better certainty on the schedule and quantum of works shall only be known after the receipt of geological reports for finalisation of support structure design. The Ministry of Economy / Technical Supervision Agency has extended the construction permit for Didachara Skhalta transfer tunnel, Chiruki-Skhalta transfer tunnel, Skhalta dam, Chiruki weir and Skhalta Power house till 08 November 2018. Reconstruction permit for the Main Headrace tunnel was issued by Ministry of Economy / Technical Supervision Agency also in the month of January 2018 for a period of one year. Below is a summary of construction works for the reporting period: Civil Works: The civil works have greatly reduced in this period as the major works have been completed. In addition to the tunnel repair works (HRT + Transfer Tunnel), works continues at the Didachara downstream road, plus punchlist work around the project. Tunneling Works: With the discovery of tunnel collapses in August (transfer tunnel) and October (headrace tunnel), all tunnels in the project have been de-watered and inspected. Several full collapses are visible in the HRT, and two full collapses are visible in the transfer tunnel. Adit plugs have been removed and utilities installed to commence repair works. Repair works in the transfer tunnel have started by end of 2017. Didachara dam area: Didachara reservoir was filled completely in May and held water up until the first week of October. All performance issues with the dam are satisfactory. Reservoir is currently empty. Minor punchlist work continues as does slope stability and road construction on the downstream side of the bridge. Skhalta dam area: Skhalta reservoir was filled completely in May and held water up until August. All performance issues with the dam are satisfactory. Reservoir is currently empty. Skhalta Power House: CKD Blansko of the Czech Republic (subcontractor to AGE) has completed erection works and carried out certain dry checks. Filling of Chirukhi to Skhalta tunnel is kept on hold to carry out minor strengthening works at approx 50 m long section of the tunnel as per recommendations made by MML & 3G-Consultants. AGL is reviewing the approach to this section of Tunnel either from Skhalta or Chirukhi end. The E&M contractor, CKD, has demobilized and will be back at site after the tunnel is filled and the 35 kV line is nearing completion. Until such time CKD has provided preservation plan for the equipment in power house which is being taken care by AGE (under AGL supervision), weekly checks being carried out as per the plan. It is 2 expected that the commissioning activities of the Skhalta power house shall start by June 2018 after completion of 35 KV transmission line. Chiruqistsqali weir: Weir construction is complete and downstream flushing gates remain open to pass the river flow. Minor punchlist activities are ongoing. Ghorjomi Bridge: Bridge and upstream road works are complete. Downstream road has slope stability work and road construction works. Diakonidze Weir: AGL has carried out a water balance study for the Diakonidze stream. E-flow assessment shall be taken up in due course and presented to the E&S teams of lenders before moving forward to the scheme. Based on the joint consensus on the approach, work will be started, and adequate monitoring system will be put in place. EM Works: All the commissioning tests have been completed, except for the reliability run tests and performance tests. Shuakhevi HPP received Generation License on 21 September 2017. 35 kV Transmission Line: Out of total 133 towers, 66 foundations and 31 towers are completed. Land purchase process is ongoing. For the house in the buffer zone, lenders E&S teams have been approached for guidance to relocation process. All the documentation related to HSE etc. safety checklists have been adhered through daily supervision by AGL. 3 3. Compliance evaluation: Was the Company in material compliance with (i) environmental and social (E&S) requirements of the Lenders (ADB, EBRD and IFC), including the "Environmental and Social Action Plan" (Schedule 12 (Form of Action Plan) of the CTA), (ii) environmental, health and safety regulations, standards, and permits of the host country? If No, please summarize the non-compliance status and corrective actions that were taken or being taken. Adjaristsqali Georgia LLC (AGL) has designed Environmental and Social Management System (ESMS) for the operational phase and developed various management plans to ensure that the Company operates in compliance with lenders’ E&S requirements. In September, AGL received power generation license issued by the Electricity System Commercial Operator. However, due to unexpected tunnel failure and investigation activities commercial operation of the power plant had to be suspended and the plant can now resume operations only after the required remedial works are completed. Due to resumption of construction activities AGL continues operation according to the construction stage management plans, such as SEP, BAP, Emergency Preparedness and Response Plan, etc. AGL re-developed stakeholder engagement strategy to address concerns raised by locals regarding tunnel repair activities. Khulo PIC was moved to Didachara camp, it facilitated AGL social team to follow grievances from communities and workers in a structured and coordinated manner. AGE re-opened workers’ grievance log and AGE community liaison officer (CLO) together with AGL social team work on addressing concerns raised by communities. AGL maintains strong organizational capacity and Stakeholder Engagement Specialist (SES) remains the primary
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