Environmental Monitoring Report

Semestral Report June 2017

AZE: Power Distribution Enhancement Investment

Program - Tranche 1

Prepared by the Environmental Team Consultant’s Consortium of Decon International GmbH – Consulectra Unternehmungsberatung GmbH - Arpa Consulting for the “Azerishiq” Open Joint Stock Company and the Asian Development Bank.

ABBREVIATIONS ADB Asian Development Bank AP Affected Person CJSC Closed Joint Stock Company EMP Environmental Management Plan GFP Grievance Focal Person IEE Initial Environmental Examination LLC Limited Liability Company No. Number O&M Operation and Maintenance OJSC Open Joint Stock Company PCB Polychlorinated Biphenyl PMU Project Management Unit RESSD Regional Electricity Supply and Sales Department ROW Right-Of-Way SIW Self-supporting Insulated Wire (aerial cable) SPS Safeguard Policy Statement TOR Terms of Reference

WEIGHTS AND MEASURES dB(A) a-weighted decibels ha hectare kg kilogramme km kilometer kV kilovolt m meter m² square meter MVA Mega Volt Ampere T Ton

(i) The fiscal year (FY) of the Government of ends on 31 December. FY before a calendar year denotes the year in which the fiscal year ends, e.g., FY2011 ends on 31 December 2011.

(ii) In this report, "$" refers to US dollars.

This environmental monitoring 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.

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.

BI-ANNUAL ENVIRONMENTAL MONITORING REPORT

January 1 to June 30, 2017

ADB Loan No. 3407-AZE Project No. 42401-015

Republic of Azerbaijan: Power Distribution Enhancement Investment Program, Tranche 1 Financed by the Asian Development Bank

Prepared by Environmental Team Consultant’s Consortium of decon international GmbH – Consulectra Unternehmungsberatung GmbH - Arpa Consulting

Prepared for “Azerishiq” Open Joint Stock Company

This report does not necessarily reflect the views of ADB or the Government concerned, and ADB and the Government cannot be held liable for its contents

Abbreviations and Acronyms

ADB Asian Development Bank AP Affected Person CJSC Closed Joint Stock Company EMP Environmental Management Plan GFP Grievance Focal Person IEE Initial Environmental Examination LLC Limited Liability Company No. Number O&M Operation and Maintenance OJSC Open Joint Stock Company PCB Polychlorinated Biphenyl PMU Project Management Unit RESSD Regional Electricity Supply and Sales Department ROW Right-Of-Way SIW Self-supporting Insulated Wire (aerial cable) SPS Safeguard Policy Statement TOR Terms of Reference

Weights and Measures dB(A) a-weighted decibels ha hectare kg kilogramme km kilometer kV kilovolt m meter m² square meter MVA Mega Volt Ampere T Ton

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Contents Abbreviations and Acronyms ...... 2 1. Part 1 Introduction ...... 8 1.1. Background...... 8 1.2. Construction activities and Project Progress during previous 6 months ...... 9 1.3. Changes in project organization and Environmental management team ...... 11 1.4. Relationships with Contractors, owner, lender, and other Stakeholders ...... 11 2. Part II Environmental Monitoring ...... 12 2.1. Summary of previous six months monitoring data ...... 12 2.1.1. Noise and Vibration...... 12 2.1.2. Water Quality and Sanitation ...... 12 2.1.3. Air quality ...... 12 2.1.4. Flora and fauna monitoring ...... 12 2.1.5. Health and Safety ...... 13 3. Part III Environmental Management ...... 14 3.1. EMS, SSEMP and work plans ...... 14 3.1.1. Environmental Safeguards ...... 14 3.1.2. EMPs ...... 15 3.1.3. Storage ...... 15 3.1.4. Employment and Accommodation ...... 15 3.1.5. Demolition ...... 15 3.1.6. Work Plans and Activities...... 15 3.2. Site inspections and audits ...... 16 3.3. Site 1 Shamaki 10 kV overhead line from 35/10 kV “” substation ...... 16 3.4. Site 2 Shamaki 0.4 kV “SIW” type distribution lines ...... 17 3.5. Site 3 Oghuz 10 kV Transmission Line and 0.4 kV Distribution Line ...... 17 3.6. Site 4 110/35/10 kV “Gakh” Substation Transmission Line and Distribution Line .. 19 3.7. Site 5 Ganja City 110 / 35 / 10 kv Mashingayirma substation ...... 21 3.8. Site 6 Transmission line (next to Ganja 2 substation) ...... 23 3.9. Site 7 District Distribution Line ...... 24 3.10. Site 7A Dallar Darti110/35/10 kV ...... 25 3.11. Site 7B Ali Yagubly ...... 25 3.12. Site 7C 35kV Transmission line Vagzalyani ...... 25 3.13. Site 8A Dalimammadli” substation ...... 25

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3.14. Site 8B 10 kV Transmission Line and 0.4 kV Distribution Line Sarov Village ..... 26 3.15. Poles Assembly plant ...... 26 3.16. Site 8C Distribution Line transformer that is fed from 35/10 kV “Shamkir-2” substation ...... 27 3.17. Site 9A Camp ...... 28 3.18. Site 10 Transformer and Poles Mohammed Ali Village ...... 29 3.19. Site 11A Saatli District Transmission Line and Distribution Line ...... 29 3.20. Site 11B Mizjalal Village 0.4 kV Distribution Line ...... 30 3.21. Site 12A Neftchala Substation ...... 31 3.22. Site 12B 110 kV overhead line between 110 kV “Salyan” and “Neftchala” substations ...... 33 3.23. Site 13A IMA Camp Astana ...... 33 3.24. Site 14B Sapnakaran Distribution Line 0.4 kV ...... 35 3.25. Site 14C Shuzun Village ...... 35 3.26. Site 15A Teze Alvadi ...... 35 3.27. Site 15B Alyat Settlement of City ...... 36 3.28. Site 15 District 6 kV overhead line from 35/6 kV “Siyazan” substation . 37 3.29. Site 16 Khirdalan City 35 kV cable line from “110 kV “A.Vahid” substation ...... 38 3.30. City ...... 39 3.30.1. 35 kV cable line from 110 kV “Shahar” substation ...... 39 3.30.2. 6 kV overhead line from 35/6 kV “Mingachevir” substation ...... 40 3.30.3. 0.4 kV SIW line from 35/6 kV “Mingachevir” substation ...... 40 3.30.4. 35/6 kV “Mingachevir” substation ...... 40 3.31. ...... 41 3.32. District ...... 42 3.33. Saatli District ...... 43 3.34. ...... 44 3.35. Masalli District ...... 45 3.36. Lenkaran District ...... 46 3.37. ...... 47 3.38. Alyat Settlement ...... 48 3.39. Khirdalan City ...... 49 3.40. ...... 52 3.41. Non-compliance notices ...... 55 3.42. Corrective action plans ...... 55 3.42.1. Grievance Notification Procedure ...... 55

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3.42.2. Corrective Actions Needed ...... 55 3.43. Consultation and complaints...... 55 3.43.1. Public Consultation ...... 55 3.43.2. Consultations ...... 56 3.43.3. Complaints Registers ...... 56 4. Annex 1 List of Site Visits ...... 57

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Figures Figure 1-1 Project Extent ...... 8 Figure 3-1Site Locations ...... 16 Figure 3-2Transmission Poles ...... 16 Figure 3-3Survey Team ...... 17 Figure 3-4Refuelling Gas Station ...... 17 Figure 3-5Distribution Lines ...... 17 Figure 3-6Old and New Distribution Lines ...... 17 Figure 3-7Start of Scheme and Site Office ...... 18 Figure 3-8Safety Jurnal ...... 18 Figure 3-9Existing Route ...... 19 Figure 3-10Installed Poles ...... 19 Figure 3-11Proposed new route clear of trees ...... 19 Figure 3-12River Crossing ...... 19 Figure 3-13Site Entrance and Safety Warning Notice Boards ...... 20 Figure 3-14Canteen and female cook ...... 20 Figure 3-15Toilets and Shower ...... 21 Figure 3-16Fire Fighting Equipment and Safety Signs ...... 21 Figure 3-17Main Facade and Entrance Foyer ...... 22 Figure 3-18 Spike for Lightning Protection ...... 22 Figure 3-19Adjacent Apartments used by Workers ...... 22 Figure 3-20Earth cabling and Control Room ...... 22 Figure 3-21Safety Procedure and Jurnal / Logbook ...... 23 Figure 3-22Adjacent Old Substation Safety ...... 23 Figure 3-23 Laydown Area for Tower Assembly ...... 23 Figure 3-24Toilet and Temporary Sleeping Quarters...... 24 Figure 3-25110kV Line must Clear Existing 35kV Line ...... 24 Figure 3-26Overhead Lines and Underground Cables ...... 25 Figure 3-27Entrance to Site ...... 25 Figure 3-28Safety Warning Board and Incorrectly Stored Gas Cylinders ...... 26 Figure 3-29 Entrance to Site and Safety Warning Board ...... 26 Figure 3-30Site Fabrication Area ...... 27 Figure 3-31Dormitory and Toilet / Shower ...... 27 Figure 3-32Transformer and Distribution Line ...... 27 Figure 3-33Camp Yard and Laydown Area ...... 28 Figure 3-34 Camp Sanitation and Safety Facilities ...... 28 Figure 3-35 Journals of Record Keeping on Site ...... 29 Figure 3-36Unfenced Transformer and Poles ...... 29 Figure 3-37Overhead Activities near river ...... 30 Figure 3-38Correct use of Safety Harness ...... 30 Figure 3-39Distribution Line ...... 30 Figure 3-40Trimming of Tree Branches ...... 31 Figure 3-41Site Entrance Notifications ...... 31 Figure 3-42Emergency Response Signage and Equipment ...... 32 Figure 3-43Safety Notifications ...... 32 Figure 3-44Toilets ...... 32 Figure 3-45 Quality Control Documentation ...... 32 Figure 3-46110KV Transmission Towers ...... 33

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Figure 3-47Site Entrance and Yard Area...... 33 Figure 3-48Dormitory and First Aid Room ...... 34 Figure 3-49 Kitchen and Dining Room ...... 34 Figure 3-50Fire Fighting Equipment and Toilets/ Shower Room ...... 34 Figure 3-51Quality Control Documentation ...... 35 Figure 3-52 Entrance to Site ...... Figure 3-53 Area where Private Agreement to Tree Trimming is Required ...... 35 Figure 3-54Distribution Line and Signed Documents agreeing to Tree Cutting ...... 36 Figure 3-55Site Entrance and Construction Area ...... 36 Figure 3-56 Sleeping Quarters and Toilet ...... 37 Figure 3-57Safety Journal and First Aid Kit ...... 37 Figure 3-58Site Access and Safety Journal ...... 38 Figure 3-59Site Access, Underground Cable and Safety Journal ...... 39 Figure 3-60 Underground cable inside ROW and manhole covers ...... 40 Figure 3-61 Information signboard for residents ...... 40 Figure 3-62Mingachevir substation and Safety Warning Signage ...... 41 Figure 3-63 Trees which were counted and wall realignment ...... 41 Figure 3-64 Site information boards and HSE Journals ...... 42 Figure 3-65 Site information boards, Safety Signage and HSE Journals ...... 43 Figure 3-66 Low Tension Poles and High Tension Towers ...... 43 Figure 3-67Saatlisubstation under construction...... 44 Figure 3-68Assembly yard for 110kV towers ...... 44 Figure 3-69CTS and poles ...... 44 Figure 3-70 Neftchala substation civil works completed installation ongoing ...... 45 Figure 3-71Alvadi CTS and distribution lines ...... 46 Figure 3-72 Substation, old equipment and distribution lines workers ...... 47 Figure 3-73 Facilities around Substation and HSE documentation ...... 48 Figure 3-74 Facilities around AlyatBaghlar Substation ...... 49 Figure 3-75 Substation site showing close proximity to residential property ...... 50 Figure 3-76 Safety and Sanitary facilities ...... 50 Figure 3-77 Signboards saying "Apologies for the temporary discomfort" ...... 51 Figure 3-78HSE and Complaints Documentation...... 51 Figure 3-79 0.4kV line installation...... 52 Figure 3-80 Substation site close to residential property ...... 52 Figure 3-81 HSE Warning signage ...... 53 Figure 3-82 HSE and Complaints Documentation ...... 53 Figure 3-83 Trenching works at site perimeter and allegedly damaged white painted wall .. 54 Figure 3-84 Replacement of OH Line with UG Cable ...... 54 Figure 3-85 Tree on alignment of SIW line ...... 55 Figure 3-86Grievance Redress Mechanism ...... 56

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1. Part 1 Introduction

1.1. Background

1. The Government of Azerbaijan (GoA) has requested the Asian Development Bank (ADB) to provide funding to support Azerishiq Open Joint Stock Company’s (OJSC) Power Distribution Enhancement Investment Program (the Investment Program). The Investment Program aims to improve energy efficiency of the power distribution sector in Azerbaijan through rehabilitation and expansion of the aged distribution network. The investment program will (i) improve power supply reliability in the region; (ii) reduce distribution losses; (iii) improve customer service efficiency and quality; (iv) improve operational and financial performance of the regional electricity supply departments of Azerishiq, and (v) promote corporate reform and capacity development in the distribution subsector.

Figure 1-1 Project Extent

2. Tranche 1 of the investment program has three major outputs:

(i) Rehabilitation of 110 kV, 35 kV, 10 kV, and 6 kV Power Distribution Networks. Rehabilitation of 110 kV substations 4units, 35 kV substations 16units, 6-10 kV transformer stations 1,157 units; 110 kV distribution lines 54km, 35 kV distribution lines 123km, 6-10 kV distribution lines 1,237 km.

(ii) Rehabilitation of 0.4 kV Customer Service Lines and Meters. Replacement of 0.4 kV customer service lines 3,900 km including installation of electric meters. The existing 0.4 kV bare overhead bare conductors will be completely replaced with new self-supporting aerial bundled cables (insulated), and the existing poles will be

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completely replaced with new steel poles. The new insulated cables will make illegal access to distribution lines and energy theft almost impossible.

(iii) Support for Institutional Development, Capacity Building, and Project Management: including consultancy services for (i) project supervision and management including procurement, engineering support, financial management, social and environmental safeguard monitoring, external audits, and training. (ii) preparing and monitoring of all subsequent tranches under the proposed MFF; (iii) support for policy development and capacity building of Azerishiq staff.

3. There are 62 subprojects falling into eight types located in 13 districts of Azerbaijan. The subprojects are: • a 110/35 kV substation – 4 subprojects • a 35 kV substation – 16 subprojects • a discrete segment of double circuit 110 kV distribution line - 4 subprojects (total length = 53.8 km) • a discrete segment of double circuit 35 kV distribution line – 16 subprojects (total length 122.45 km) • a total length of 6 kV and 10 kV distribution lines in each of the seven Regional Electricity Supply and Sales Department (RESSD) areas – 7 subprojects (total length over 7 RESSDs = 1,236.5 km) • a total length of 0.4 kV self-supporting insulated wire (SIW) distribution line in each of seven RESSD areas – 7 subprojects (total length over 7 RESSDs = 3,893.45 km) • a set of compact transformer substations (CTS) for each of the seven RESSD areas – 7 subprojects (total number of units = 1,157) • supply and installation of electric meters in seven RESSD areas – one subproject (total number of units = 108,409) The Project is expected to be completed by July 2018.

1.2. Construction activities and Project Progress during previous 6 months 4. At the end of June 2017, 36 design, supply and construction contracts were awarded i.e. 4 contracts after International Competitive Bidding and 32 contracts as result of National Competitive Bidding. Moreover, one supply contract for digital meters was awarded in June 2017 thereby completing procurement. Contractual completion period for all contracts was set for 12 months. The progress of works achieved for each awarded contract was as follows on 30 June 2017:

up to 30.06.2017 Contract No. Contractor Description planned Actual Anadolu Elektrik AI/ADB-1.1 110/35/10 kV Dalimammadli Substation 100 % 93 % Sanayi ve AI/ADB-1.2 TicaretRetro H A.olŞ.ding LLC 110/35/10 kV Mashinqayirma Substation 100 % 99.5 % AI/ADB-2.1 Gidromashservis 110/35/10 kV Gakh Substation 85.10 % 81 %

AI/ADB-2.2 CJIMASC Energy LLC 110/35/6 kV Neftchala Substation 84.1 % 85 %

AI/ADB-3.1 Anadolu Elektrik 35/6 kV Mingachevir and Siyazan S/S 14.89 % 21.7 % Sanayi ve Ticaret A.Ş. 9

AI/ADB-3.2 Anadolu Elektrik 35/6 kV, 35/10/6 kV, 35/10 kV Vagzalyani- 14.89 % 21.5 % Sanayi ve 1, Ganja and Shamkir-2 S/S

AI/ADB-4.1 AzerElektrikShebekeTicaret A.Ş. 35/10 kV Ilisu, Shamakhi and Oghuz S/S 12.0 % 12.0 % Tikinti OJSC Anadolu Elektrik 35/10 kV and 35/6 kV Alvadi, Sapnakaran AI/ADB-4.2 Sanayi ve and S/S 15 % 14 % Ticaret A. Ş. AI/ADB-5.1 AZNOF LLC 35/10 kV and 35/6 kV Khirdalan and Alyat 5.5 % 6.85 % Baghlari S/S AI/ADB-5.2 Anadolu Elektrik 35/10 kV Rasullu, Zardab and Saatli S/S 28.4 % 25.4 % Sanayi ve

AI/ADB-6.1 TicaretRetro H A.olŞ.ding LLC 110 kV and 35 kV distribution lines 76.5 % 72.3 % AI/ADB-6.2 ElektrikGurashdirma 35 kV distribution lines 76.5 % 92 % AI/ADB-7 Retro Holding LLC 110 kV and 35 kV distribution lines 76.5 % 76.5 % AzerElektrikShebeke AI/ADB-8.1 110 kV distribution lines 82 % 82 % Tikinti OJSC AI/ADB-8.2 ElektrikGurashdirma 35 kV distribution lines 76.5 % 92 % AI/ADB-9.1 Hayat Inshaat LLC 10 kV cable lines (48.40 km) 18.0 % 19.6 % AI/ADB-9.2 Stone Construction 0.4 kV cable lines (600.49 km) 49.0 % 25.9 %

AI/ADB-10.1 VELLCST Ltd 10 kV distribution lines (201.17 km) 85.0 % 77.94 % AI/ADB-10.2 VEST Ltd 0.4 kV distribution lines (510.89 km) 85.0 % 78.54 % AI/ADB-11.1 ElektrikGurashdirma 10 kV distribution lines (201.17 km) 76.5 % 77.63 % AI/ADB-11.2 Universal 0.4 kV distribution lines (500.7 km) 86.1 % 35.50 %

AI/ADB-12.1 ElektroVEST Ltdse rvis LLC 10 kV distribution lines (193.00 km) 85.0 % 38.65 % AI/ADB-12.2 VEST Ltd 0.4 kV distribution lines (591.80 km) 85.0 % 35.82 % AI/ADB-13.1 Retro Holding LLC 10 kV distribution lines (188.40 km) 69.0 % 66.81 % AI/ADB-13.2 VEST Ltd 0.4 kV distribution lines (590.11km) 85.0 % 64.86 % AI/ADB-14.1 IMA Energy LLC 10 kV distribution lines (203.17 km) 69.0 % 48.14 % AI/ADB-14.2 IMA Energy LLC 0.4 kV distribution lines (587.58km) 69.0 % 45.88 % AI/ADB-15.1 Retro Holding LLC 10 kV distribution lines (201.18 km) 69.0 % 27.83 % AI/ADB-15.2 VEST Ltd 0.4 kV distribution lines (511.88 km) 85.0 % 52.76 % AI/ADB-16.1 Retro Holding LLC 154 CTS 17.0 % 9.43 % AI/ADB-16.2 Retro Holding LLC 154 CTS 19.0 % 36.30 % AI/ADB-17.1 Retro Holding LLC 168 CTS 30.0 % 72.29 % AI/ADB-17.2 Retro Holding LLC 165 CTS 20.0 % 38.93 % AI/ADB-18.1 Retro Holding LLC 182 CTS 17.0 % 29.25 % AI/ADB-18.2 Retro Holding LLC 160 CTS 19.0 % 46.22 % AI/ADB-19 ElektrikGurashdirma 174 CTS 3.8 % 23.10 %

5. The works under several contracts are in advance of the scheduled progress for end of June 2017, others are behind schedule. Construction progress more than 20% behind scheduled is marked in red colour. It is expected that most contracts will be completed within the contractual completion period of 12 months but some might require a time extension.

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1.3. Changes in project organization and Environmental management team 6. Starting from June 1, 2017 PIU of Azerishig OJSC employed environmental and social safeguard specialist to support PIU (EA) to ensure that all environmental and social requirements are in place, environmental management plans are integrated into the tender documents and monitoring and reporting on the implementation of environmental management plans are in place as well as provide coordination between PIU, PMC and Contractor and when required with ADB on safeguard related issues.

1.4. Relationships with Contractors, owner, lender, and other Stakeholders 7. Relations with residents are reportedly good. There are no environmental issues.

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2. Part II Environmental Monitoring

2.1. Summary of previous six months monitoring data

2.1.1. Noise and Vibration 8. According to Azerbaijan noise standards1 the maximum allowable noise levels in residential areas is 50 dB(A) during daytime hours (07.00-23.00hrs) and 40 dB(A) during night- time hours (23.00-07.00 hrs). Periodic noise monitoring during noisy construction activities is to be undertaken during construction.

9. The construction of the transformer substations involves conventional building techniques. Some activities such as metal cutting and fabrication are noisy. Works are confined to daytime operation with no works on Sunday. Erection of the towers and poles is not a noise generating activity.

10. Contractors do not work at night. During site visits no audible noise levels were detected and any noise levels generated are considered not to be intrusive.

11. As there were no audible noise levels no noise monitoring was carried out.

2.1.2. Water Quality and Sanitation 12. Toilets and showers are provided on site. Cooking and eating facilities are provided and are kept in a clean and sanitary condition. Food and other waste is removed regularly. No litter or evidence of vermin was observed on site.

13. Each site uses 4-6 vehicles including cranes, drilling machines, lifting cradles and trucks. All vehicles are maintained off site and fuelled at a local gas station. There is no fuel storage on site.

14. There is no runoff of oil or grease into nearby watercourses.

2.1.3. Air quality

15. All friable materials such as sand stored on site are covered with tarpaulins. Cement is stored in bags and under cover. There are no air pollution issues. Wheel washing facilities have been provided where needed to prevent vehicles carrying mud over onto public roads.

2.1.4. Flora and fauna monitoring

2.1.4.1. Tree Cutting 16. In some instances stringing of lines between LT poles requires cutting or trimming of tree branches. If the trees are on state land or are owned by the municipality the contractor must obtain permission from the Ministry of Ecology before any cutting takes place. This is being done. If the trees are on private land the contractor must obtain permission from the owner. The contractor is obtaining written agreement from the owners for trimming the trees. Evidence of the written agreements is on record with the contractor and has been sighted. No compensation is paid. The contractors report that all owners willingly offer to trim the trees as they appreciate the benefits of a new power supply.

2.1.4.2. Fauna Monitoring

1DUST 17187 (State General Standards and Requirements), Presidential Decree No. 796 dated July 8, 2008)

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There is no requirement for fauna monitoring on any site.

2.1.5. Health and Safety 17. All new workers are required to undergo a safety induction briefing. After completing this they must sign in a journal. This was sighted and all records are up to date.

18. First aid rooms and first aid kits are provided. A journal of accidents and days lost to illnesses is kept. No incidents were reported.

19. All workers observed on site wear full PPE (Personal Protective Equipment) including safety helmets, high visibility jackets, safety boots and where appropriate, such as cutting or welding, eye protection goggles. Workers carrying out work at a height, such as stringing the cables while in an elevated cradle, wear safety harnesses which are clipped by a carabiner onto the guard rails. This is good practice.

20. Health and safety practices on the sites are following a high standard. In general contractor performance on environmental issues is satisfactory.

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3. Part III Environmental Management

3.1. EMS, SSEMP and work plans

3.1.1. Environmental Safeguards

21. Under the ADB procedures, environmental safeguards are enacted by environmental assessment of every project by means of the IEE and subsequent implementation of an Environmental Management Plan (EMP).

22. The projects are generally enhancement of existing facilities. In all subproject areas, the project components do not encroach upon ecologically sensitive areas. They are located either within the boundaries of existing substations, within rights of way of existing distribution corridors in the case of distribution lines and transformers, or located on existing government or Azerishiq owned land in the case of proposed new substations. The projects are unlikely to affect sensitive areas, forests or wetlands

23. New site have been selected under the following principles: i) Minimize disturbance of human settlements ii) No land acquisition or resettlement is required iii) Avoid monuments of cultural or historical importance iv) Do not create a threat to the survival of any community with special reference to ethnic minority communities v) Do not affect any public utility services like playgrounds, schools etc. vi) Do not pass through any sanctuaries, national parks, reserve forests etc. vii) Minimize damage to existing trees/forest resources viii) Selection of new equipment, i.e. transformers, capacitors, etc., will comply with international standards particularly with respect to avoiding use of PCBs (polychlorinated biphenyl).

24. Site selection for individual lines and substations has been undertaken carefully. Only existing corridors for distribution lines will be used. Similarly, new substations will be mainly constructed within the boundaries of existing substations. Some new 35kV substations will be constructed on new sites currently owned by Azerishiq.

25. The project is unlikely to cause adverse environmental impacts due: • The majority of the proposed new 110 kV substations are located within the boundaries of existing substation sites. In the case of Dalimammadli substation approximately 0.36 hectares were purchased by Azerishiq so that there is sufficient space for the new substation. The purchase documents and land transfer documents have been provided to the consultants. • Most of the proposed new 35 kV substations and their associated distribution lines are located within the boundaries of existing substation sites • All the existing substation sites and seven proposed greenfield 35kV substation sites are located in what can be described as industrial, peri-urban or rural areas with low environmental values . • The proposed new 110 kV and 35 kV lines will involve replacement/upgrading of existing lines along existing corridors or in the case of some 35 kV lines being placed underground. • The lower voltage lines (10 kV, 6 kV and 0.4 kV) will involve replacement of existing lines and poles along road corridors • Compact transformer substations (CTS) will be located on government owned property within existing distribution corridors and in most cases involve replacement

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of old transformers on the same footprint. Some additional CTS will be added to augment the distribution system • None of the sites or proposed project assets are within or close to any protected areas or culturally sensitive areas • Construction and operation of the project is likely to give rise to nil, negligible or at worst, minor temporary environmental impacts that can be easily mitigated to acceptable levels.

26. The selection of new equipment, i.e. transformers, capacitors, etc., will comply with international standards with respect to avoiding use of Polychlorinated biphenyl oils (PCBs).

27. Detailed procedures will be followed for removal, storage and disposal of old transformers in accordance with international good practice These procedures and measures will ensure that there will be no unacceptable impact associated with disposal of old transformers.

3.1.2. EMPs 28. An EMP has been prepared for each of the subproject types excluding the supply and installation of electric meters. The EMPs include (i) mitigation measures for potential environmental impacts during construction and implementation, (ii) environmental monitoring program, and (iii) the responsible entities for mitigation, monitoring, and reporting.

29. Two slightly different EMPs are used, one for substations and one for lines. An example of an EMP used in this project is given in Annex 2.

3.1.3. Storage 30. Workers were reminded that all gas cylinders, whether full or empty, must be stored vertically, chained to prevent falling and under cover out of direct sunlight.

3.1.4. Employment and Accommodation 31. Workers are a mixture of locally employed unskilled and company skilled staff. All workers are lodged in rented apartments or live at home. If the latter the contractor provides a pick up service and drop off service. Apart from cooks and cleaners no women are employed on site.

3.1.5. Demolition 32. All contractors are required to demolish old structures, remove materials from site and deliver to the client’s premises. This is included in the EMP which has been amended to include these activities.

3.1.6. Work Plans and Activities 33. The contractors’ activities fall into four main categories: 1) Construction of transformer substations. This has quite a large footprint and involves transformers, switchgear, buildings and staff facilities. Contractors’ temporary staff facilities for first aid, eating and sanitation are provided on site. 2) Overhead high tension (HT) transmission lines. These utilises large towers, have a linear footprint and require minimal land take, other activities such as animals grazing underneath the towers, are not affected. The transmission towers component metal parts are fabricated

15 elsewhere, assembled in a laydown area and erected on site. The cabling is also stored in the laydown areas and used as needed. There is no construction workers camp. 3) Medium and Low tension distribution lines. The 10 kV and 6 kV lines use concrete poles which are constructed in a factory then transported to site for erection. 0.4 kV uses steel poles. They have a linear alignment and involve no footprint as the requirement for land is minimal and is located on state owned land. 4) Underground cables where overhead lines may lead to congestion.

3.2. Site inspections and audits 34. All the above activities have been inspected. Details are given below.

3.3. Site 1 Shamaki 10 kV overhead line from 35/10 kV “Shamakhi” substation 35. The works comprise a transmission line and distribution line. The 35 kV overhead line (2x 3000m) is one part of one package and the 10 kV line is part of a different package They are located next to the main highway. The contract is for 9,500 metres single line and 500 m line with double circuits. So far 77 poles are erected. The poles are manufactured in a factory in Baku and brought to site for erection. They started in January 2017 and are 50% complete. 36. The staff comprises 10 employees, 1 engineer. There are no women. The company leases a house in a nearby village for staff. All employees come from Baku there are no local staff. Vehicles comprise 1 tractor, 1 driller, 1 crane, 1 truck. All are refuelled at a local gas station. No fuel storage takes place on site. No environmental issues were observed.

Figure 3-1 Site Locations Figure 3-2 Transmission Poles

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Figure 3-3 Survey Team Figure 3-4 Refuelling Gas Station

3.4. Site 2 Shamaki 0.4 kV “SIW” type distribution lines 37. The transmission line is 10 kV and the distribution line 400 V. The distribution line is 15,000 m and so far they have installed 519 poles. The line is SIW to prevent theft. Sections of the line are installed but not yet energised. No environmental issues were observed.

Figure 3-5 Distribution Lines Figure 3-6 Old and New Distribution Lines

3.5. Site 3 Oghuz 10 kV Transmission Line and 0.4 kV Distribution Line 38. The starting point is at the junction with the main road in the village. The contract is for 41 km of which 21 km is done and 378 have been poles erected. All poles are produced in a factory. 39. There are 9 employees and 1 engineer. There are no women. All staff are local. The Engineer is a local man but now lives in Baku. All staff live at home and a minibus collects them every morning and takes them back each evening. 40. The vehicles comprise 1 tractor, 1 crane / driller, 1 truck. All are fuelled at a local gas station. There is no fuel storage on site. 41. The land where the site office is placed is given for free by the municipality because they appreciate that the new electricity supply is of benefit to the residents.

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Figure 3-7 Start of Scheme and Site Office 42. All staff wear PPE and spontaneous checks are carried out. Tool box briefings are held every morning on safety issues. A signboard is displayed for locals giving details of the scheme. 43. A first aid kit is kept in the site office. A safety book is kept of records of any incidents. This is called a "Jurnal". All staff must undergo a safety briefing and sign the Jurnal. There have been no injuries or lost days. The comment was made that the emphasis on strong safety checks is left over from soviet times.

Figure 3-8 Safety Jurnal 44. Part of the proposed route intersects dense forest so a change to the alignment has been proposed by the contractor. The new route will avoid going through the dense forest and will pass over open farmland then cross the river. Some bushes and grasses will need to be cut but no trees. A corridor 1 km long and 3 metres wide on either side of the alignment is needed. The contractor is waiting for approval from the Ministry of Ecology on the new alignment so that he can cut the grass as without it he could be fined. Then 5 poles will be taken out and re-erected. He will inform the lead consultant when the approval is received.

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Figure 3-9 Existing Route Figure 3-10 Installed Poles

Figure 3-11 Proposed new route clear of trees Figure 3-12 River Crossing

45. Other than the steps described above for avoidance of cutting trees no environmental issues were observed.

3.6. Site 4 110/35/10 kV “Gakh” Substation Transmission Line and Distribution Line 46. The substation is under construction and when finished the old transformers will be decommissioned. The building contains the control equipment and the 110/35 kV transformer and switchgear are outside.

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Figure 3-13 Site Entrance and Safety Warning Notice Boards 47. The workforce comprises 32 workers, two civil engineers, and one woman cook. Half the staff are local unskilled workers and half staff are from outside the area. All live in rented houses in town. Two men live on site as security guards. Cooking and canteen facilities are provided. Kitchen has a cooking range and LPG cylinder. There are separate toilets for men and women. There is one temporary latrine. A shower is provided.

Figure 3-14 Canteen and female cook

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Figure 3-15 Toilets and Shower 48. All staff wear full PPE. Safety briefings are given every day. All new employees must attend induction course. No days have been due to accidents or illness. The project is on schedule. Safety signs are at many locations around the site. Fire fighting gear is in good condition.

Figure 3-16 Fire Fighting Equipment and Safety Signs The vehicles comprise 1 crane, 1 truck. 1 excavator / JCB. All are fuelled at a local gas station. There is no fuel storage on site.

49. There is a graveyard near the substation. The graveyard is 8m from the edge of the building line and this corridor of no activity is observed. It is a family graveyard. The family come every weekend to attend to the graves. The contractors often talk to them and no complaints have been made so far. No environmental issues were observed.

3.7. Site 5 Ganja City 110 / 35 / 10 kv Mashingayirma substation 50. The substation includes a new building for aesthetic purposes. The building contains the medium-voltage switchgears and control panels. The 2 x 40 MVA transformers, which are built locally, and the 110 kV switchgear are installed outdoors. The building is enclosed in an earth cage with resistance less than 0.5 ohms made of galvanised copper. The site is fitted with lightning arrestors. The insulators being used are gas free.

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Figure 3-17 Main Facade and Entrance Foyer 51. The staff comprises 35 employees with 5 engineers of whom 80% are locals. There are no females. All live in apartments some of which are adjacent to the site. One security guard remains on site overnight.

. Figure 3-18 Spike for Lightning Protection Figure 3-19 Adjacent Apartments used by Workers

Figure 3-20 Earthing conductor and Control Room 52. The vehicles comprise 1 crane 40T, 1 crane 80T, and 2 excavators. They are refuelled in local gas station. There is no fuel storage on site.

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53. The building has been constructed from June 2016 to April 2017. It is scheduled to be finished 10 days after the site visit. As the work is nearly completed much of the facilities have been removed. A temporary toilet is still on site. This will be removed and the latrine filled in. Food for workers is brought in. 54. All employees get a safety induction briefing when the commence employment. They are required to sign the logbook / jurnal. No accidents or injuries have occurred on site. A logbook is kept for any complaints. None have occurred.

Figure 3-21 Safety Procedure and Jurnal / Logbook No environmental issues were observed.

3.8. Site 6 Transmission line (next to Ganja 2 substation) 55. The site is located next to Ganja 2 substation. Land is given free for temporary use by the adjacent substation. It is state land. The contractor must stay within 25m corridor away from the old substation. 56. The staff comprises 20 employees with 1 engineer and no females. All staff live in leased houses and 8 are locals. Temporary accommodation is provided on site for 1-2 days until the company can find rented places. There is a toilet and canteen on site. The nearest houses are over 100m away. Safety signage is displayed prominently on site. The vehicles comprise 3 cranes of 25 T, 50T and 80T. There is no fuel storage on site.

Figure 3-22 Adjacent Old Substation Safety Figure 3-23 Laydown Area for Tower Assembly

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Figure 3-24 Toilet and Temporary Sleeping Quarters 57. Trucks bring the components of the towers and assemble on site in the laydown area. The contractor assembles the towers by segments then erects for the 110 kV and 35 kV line. The 110 kV transmission line will cross over 35 kV line and must maintain greater than 5 m clearance. They are awaiting permission to do this.

Figure 3-25 110 kV Line must Clear Existing 35 kV Line No environmental issues were observed.

3.9. Site 7 Shamkir District Distribution Line 58. There are two components an overhead line and underground cable. Because there are many residents the cable have been placed underground.

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Figure 3-26 Overhead Lines and Underground Cables No environmental issues were observed.

3.10. Site 7A Dallar Darti110/35/10 kV 59. This is a transmission line of 6.2 km length. It is located near Dallar railway station. No environmental issues were observed.

3.11. Site 7B Ali Yagubly 60. This is a 400 V distribution system which is completed but not yet energised. It is awaiting 7 transformers 10/0.4 kV No environmental issues were observed.

3.12. Site 7C 35kV Transmission line Vagzalyani 61. This is a 35kV transmission line to Vagzalyani 3 substation from Ganja 3. No environmental issues were observed.

3.13. Site 8A Dalimammadli” substation 62. This is a large substation with the same impressive facade as the other substations. It handles 110/35/10 kV. The works commenced in October 2016 and was originally planned to finish in October 2017 but will now finish by July 2017. It has 31 employees, 3 engineers, of whom 80% are local and no women are employed. The vehicles are 3 trucks, 1 caterpillar and 1 crane. All fuel is obtained from a local gas station. The building has an earth cage system and lightning arrestor. There is one temporary toilet.

Figure 3-27 Entrance to Site 63. It was noted that the safety warning sign had fallen over and access to the fire fighting equipment was blocked by pallets and wood waste. The contractor stated that this was due to things blowing over in a recent strong wind. They corrected the situation on site at once. 64. It was noted that gas cylinders were laid on the ground in direct sunlight. This is poor site practice. The excuse given was that they were empty. However all cylinders must be stored upright and chained to prevent accidentally falling over and kept out of direct sunlight

25 as this may cause residual gases to expand and cause expulsion of a loose or faulty valve. A warning given and a Corrective Action Report (CAR) is needed. The contractor should submit photos of the needed corrective actions and these should be verified by a site inspection by the consultant. .

Figure 3-28 Safety Warning Board and Incorrectly Stored Gas Cylinders

3.14. Site 8B 10 kV Transmission Line and 0.4 kV Distribution Line Sarov Village 65. There have been 375 poles erected of 10,045 metres. The scheme started in December 2106 and is now completed. The scheme is waiting for meters to be installed before energising. A noticeboard was in place but it gave no phone number. No environmental issues were observed.

3.15. Poles Assembly plant 66. Poles come from Baku and are assembled on site at a rate of 10 poles per day. The site employs 15 men and 1 engineer but no women. There are no locals working on the site. Staff use rented apartments in town unless staff want to sleep on site. There is one dormitory with one toilet plus shower and an office. Vehicles comprise 2 cranes for lifting poles, 1 drilling machine, 1 Front End Loader. No fuel is stored on site.

Figure 3-29 Entrance to Site and Safety Warning Board

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Figure 3-30 Site Fabrication Area

Figure 3-31 Dormitory and Toilet / Shower No environmental issues were observed.

3.16. Site 8C Distribution Line transformer that is fed from 35/10 kV “Shamkir-2” substation 67. The input is 10 kV and the output 0.4kV. The 10 kV line is 126 km with 2,800 poles planned. So far 700 poles over 40 km have been installed The 0.4 kV line is 316 km with 10,500 poles of which 7 km is finished with 650 poles. A total of 94 transformers are needed, 5 are completed and 17 foundations done.

Figure 3-32Transformer and Distribution Line

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No environmental issues were observed.

3.17. Site 9A Zardab Camp 68. The camp is next to the old substation and is operated by Universal ElektroServis. They have installed 45,640 m of line and 1,527 poles which is 85% of the total. They started in September 2016 and should finish in August 2017, or possibly earlier. The vehicles comprise 3 trucks for erecting poles, 3 tractors and 1 truck. Refuelling is done at a gas station. Land is leased from the municipality. There are 18 staff, 4 engineers. 1 person is local and no women. The camp includes a toilet, hot water shower, canteen and office. All staff wear full PPE and receive a safety briefing when starting. Fire extinguishers are well maintained.

Figure 3-33 Camp Yard and Laydown Area

Figure 3-34 Camp Sanitation and Safety Facilities Journals are kept of safety inductions and complaints from residents. So far there have been no complaints from residents. No environmental issues were observed.

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Figure 3-35 Journals of Record Keeping on Site

3.18. Site 10 Transformer and Poles Mohammed Ali Village 69. The contract is 39.4 km of which 8.8 km is done and 970 poles in total of which 346 are installed. The CTS with transformer is installed but needs fencing off before energising.

Figure 3-36 Unfenced CTS with Transformer and Poles No environmental issues were observed.

3.19. Site 11A Saatli District Transmission Line and Distribution Line 70. The activities are taking place next to a river. For the 10 kV line 180 poles are installed of a 10,000 m contract length. They have installed 26 transformers and for the 0.4 kV line they have installed 163 poles. They have just started and the contract is 8% completed.

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Figure 3-37 Overhead Activities near river The 10 kV contract employs 10 persons, 1 engineer, no women and no locals. The 0.4 kV contract employs 8 persons, 2 engineers, no women and no locals. All staff live in leased houses. The vehicles comprise 1 crane, 1 borehole driller, 1 lifting gantry and 1 truck. All vehicles are refuelled at a gas station. All staff wear full PPE and it was noted that the man working on the elevated cradle was wearing a safety harness which he correctly clipped to the gantry safety rail.

Figure 3-38 Correct use of Safety Harness No environmental issues were observed.

3.20. Site 11B Mizjalal Village 0.4 kV Distribution Line 71. The contract is 126 km of line of which 7.4km is done so far. The contractor started with site activities one month prior to the site visit. Two transformers have been installed but not energised yet as meters are still to be installed.

Figure 3-39 Distribution Line Tree cutting has taken place to avoid interference with the lines. This needed prior permission from the Ministry of Ecology.

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Figure 3-40 Trimming of Tree Branches No environmental issues were observed.

3.21. Site 12A Neftchala Substation 72. The site is run by IMA Energy and will contain 2 x 40 MVA transformers plus switchgear. The site activities commenced in November 2016 and is intended to complete in September 2017 although it may be finished in July 2017. There are 42 employees, 2 engineers, 1 woman cleaner and of them 40 are locals. They work 09.00 to 18.00, six days per week. Vehicles include 1 excavator, 1 crane and 1 truck. Refuelling is done at local gas stations there is no fuel stored on site. The site management keeps a very comprehensive set of documents for quality control safety and complaints. The site management is considered to be excellent.

Figure 3-41 Site Entrance Notifications

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Figure 3-42 Emergency Response Signage and Equipment

Figure 3-43 Safety Notifications Figure 3-44 Toilets

Figure 3-45 Quality Control Documentation No environmental issues were observed.

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3.22. Site 12B 110 kV overhead line between 110 kV “Salyan” and “Neftchala” substations 73. The contract is 37.5 km of lines of which 21.0 is done and 252 towers of which 150 are done. Due Diligence for new route will be prepared by PIU and PMC in order to identify land acquisition and resettlement needs.

Figure 3-46110KV Transmission Towers No environmental issues were observed.

3.23. Site 13A IMA Camp Astana 74. Although designated a camp this is a permanent installation that was opened 8 months before the site visit. There are 30 employees, all local, 5 engineers and 1 woman cleaner. Vehicles include 1 crane, 2 trucks, and 1 tower truck. All vehicles are refuelled at a gas station. No fuel is stored on site. The camp includes a dormitory for 4 persons and a first aid clinic. Facilities include kitchen, dining area, showers and toilet. All facilities are in a very good condition.

Figure 3-47 Site Entrance and Yard Area

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Figure 3-48 Dormitory and First Aid Room

Figure 3-49 Kitchen and Dining Room 75. A comprehensive set of quality control documentation is maintained. No time has been lost through injury or illness. There have been no complaints from residents.

Figure 3-50 Fire Fighting Equipment and Toilets/ Shower Room

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Figure 3-51 Quality Control Documentation No environmental issues were observed.

3.24. Site 14B Sapnakaran Distribution Line 0.4 kV 76. The contract started in January 2017 and should be completed in November 2017. So far 1700 m has been completed with 370 poles installed. There is a requirement for some tree branches to be trimmed and as these are on private land a verbal agreement has been reached with the owner. This will be confirmed in writing and the formal agreement submitted to the consultants.

Figure 3-52 Area where Private Agreement to Tree Trimming is Required

3.25. Site 14C Shuzun Village 77. This commenced in January 2107 and is due to be completed in November 2017. So far 470 poles have been erected. No environmental issues were observed.

3.26. Site 15A Teze Alvadi 78. This site commenced in December 2016 and is due for completion by 28 November 2017. The 10 kV line has 72 km in three lines and 600 poles. They have done 400 poles. The 0.4 kV line has 169 km and 1,660 poles have been installed out of a total of 3,000. There are 25 staff, 4 engineers, all local with no women. All staff live at home and a truck collects them.

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Vehicles comprise 1 crane, 1 borehole driller, 3 trucks and one gantry crane for raising the poles. All vehicles are fuelled in gas stations. Some tree cutting is required and the contractor showed letters signed by all affected private persons giving their agreement.

Figure 3-53 Distribution Line and Signed Documents agreeing to Tree Cutting

3.27. Site 15B Alyat Settlement of Baku City 79. The site started on 1st December 2016 and is scheduled to finish on 31st May 2017. There are two contracts. For the first there are 64 poles in the contract and 54 have been erected so far. For the second contract there are 84 poles in the contract and 40 have been erected so far. There are 20 employees, 2 engineers, no women and a mix of locals and others. Vehicles comprise 3 cranes, 3 trucks, 1 excavator and 1 bulldozer. The old substation area is being used. Two beds are provided for night guards plus a toilet. Journals are kept of safety issues, so far there have been no complaints.

Figure 3-54 Site Entrance and Construction Area

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Figure 3-55 Sleeping Quarters and Toilet

Figure 3-56 Safety Journal and First Aid Kit No environmental issues were observed.

3.28. Site 15 Siyazan District 6 kV overhead line from 35/6 kV “Siyazan” substation 80. The site visit was made to Aghbash Village for where work on the 10 kV overhead transmission is being done by Retro Holding Contractor and work on the 0.4 kV distribution line is being done by VEST Ltd Contractor. Retro Holding is responsible for 201 km of 10 kV OTL, of which 42 km has been erected. They employ 6 workers and 1 engineer. There are 4 vehicles used for the project which are 1crane, 1 drilling machine, 1 lifting cradle and 1 truck. All vehicles are refuelled in local gas stations. No public notice about the project was found on the site and Retro Holding and Vest were instructed to position one to disclose information to local people about the project. There have been no complaints so far 81. During the visit the local community expressed acceptance and support for the 0.4 kV distribution line construction in in Siyazan. The villagers and Head of Aghbash Village expressed their gratitude to the project. They stated that they have experienced unreliable power and cut many times. This caused negative impacts to their electric households’ appliances and devices. The project is expected to overcome the issue to give the villagers a more reliable and stable households’ electricity connection.

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82. VEST Ltd is responsible for constructing 511 km of 0.4 kV distribution line and 16.4 km has been established. There are 16 employees work of which 5 are site supervisors. No women are recruited by the company 83. The contractor conducted induction training on HSE to the workers with daily reminders. There are 4 vehicles operated for the project which are 1 crane, 1 drilling machine, 1 lifting cradle and 1 truck. All vehicles are maintained off site and fuelled at a local gas station. There is no fuel storage on site. There is a journal for each activity. No complaints have been made so far. The Consultant provided a complaint log sample to the contractor to note each complaint received. 84. The toilet is clean. There is no kitchen, no workers camp site or dormitory. Fire fighting equipment is located outside the office and can be accessed easily.

Figure 3-57 Site Access and Safety Journal No environmental issues were observed.

3.29. Site 16 Khirdalan City 35 kV cable line from “110 kV “A.Vahid” substation 85. The works include an underground 35 kV cable line from “110 kV “A.Vahid” substation. The contractor in charge is Elektrik Qurasdhirma (EQM) and Global Export. The contractor is compacting the land cover on top of the cable with gravel. There is a detour sign for traffic control as the underground cable runs for 6.6 km within the right of way. This traffic control is coordinated with the local police. So far the progress is 3.5 km. Dust was not observed. Noise from the excavator and compactor was not intrusive. There are 14 employees, 2 engineers and staff are recruited locally. There are no women employee. They work only during the day from 9 am to6 pm with one-hour lunch break. All the worker wear PPE, with high visibility jackets, helmets, gloves and goggles. There are 3 vehicles; 1truck, 1 excavator and 1 compactor. Fuel for the vehicle is obtained from local petrol station. There is no storage for fuel on site. Hayat Inshaat LLC is the contractor for the cable line, 26.3 km, from 35/10 kV 2 x 16 MVA Khirdalan Substation. The progress is 1.94 km to be completed in one year's time. 86. We were informed there are 18 employees, 2 of them area engineers. No women work for this company. Contractor conducts daily briefings on HSE to the workers. There is also a journal for each activity progress. The toilet is clean. There is no kitchen, no worker camp site or dormitory. There 4 vehicles used for the projects (3 truck, 1 tractor), fuel for the vehicles

38 is obtained from local gas station. The other works are carried out by Stone Construction in Khirdalan City which is the 0.4 kV Line, 385.2 km, from 35 /10 kV 2 x 16 MVA Khirdalan Substation. The contractor was not available on site.

Figure 3-58 Site Access, Underground Cable and Safety Journal No environmental issues were observed.

3.30. Mingachevir City

3.30.1. 35 kV cable line from 110 kV “Shahar” substation 87. The 35 kV line is an underground cable 4.2 km length of which 3 km is finished. There will be 42 manholes of which 30 are ready. The cable trench is backfilled with sand for protection. The line will be energised in September 2017. The ROW is parallel to the existing poles so there is no land acquisition required or social issues. 88. The trench was excavated by hand to ensure no interference or damage occurred to existing utilities. A second pipe was laid for use by a fibre optic cable in the future if needed. Concrete culverts were laid under the entrances to private residences.

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Figure 3-59 Underground cable inside ROW and manhole covers

3.30.2. 6 kV overhead line from 35/6 kV “Mingachevir” substation 89. The line is 15 km of which 10 km is completed. The towers have been erected and stringing is now needed.

3.30.3. 0.4 kV SIW line from 35/6 kV “Mingachevir” substation 90. No trees needed cutting or trimming for stringing of the lines. The contractor erected an information signboard in the middle of Haciselli village to give residents a contact phone number in the event of complaints. None have been received.

Figure 3-60 Information signboard for residents

3.30.4. 35/6 kV “Mingachevir” substation 91. The substation construction commenced in April 2017 and will be completed in September 2017. Some 13 people are employed on the site all of whom are local and stay in their homes or rented property. No food is consumed on site. No trees have been cut and the perimeter wall alignment was changed slightly to avoid existing stands of trees. Numbers of trees were counted before construction to confirm none had been cut.

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Figure 3-61 Mingachevir substation and Safety Warning Signage

Figure 3-62 Trees which were counted and wall realignment

3.31. Shamkir District 92. The scheme involves the following sub-components: • 35 kV overhead cable line from 110 kV “Daller-Darti” substation • 35 kV cable line from 110/35/10 kV “Mashingayirma” substation • 10 kV overhead line from 35/10 “Shamkir-2” substation • 0.4 kV “SIW” type (self-carrying insulated conductor) distribution lines outgoing from the distribution transformer that is fed from 35/10 kV “Shamkir-2” substation • 35/10 “Shamkir-2” substation 93. The transformer substation employs 9 workers with extra workers being brought in if necessary. No women are employed on the site. A grievance book and HSE journal are maintained. Signatures have been collected from the surrounding residents agreeing to cutting or trimming of trees if necessary.

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Figure 3-63 Site information boards and HSE Journals

3.32. 94. The scheme involves the following sub-components: • 10 kV overhead line from 35/10 kV “Rasullu” substation • 0.4 kV “SIW” type distribution lines outgoing from the distribution transformer that is fed from 35/10 kV “Rasullu” substation • 35/10 kV “Rasullu” substation 95. The work commenced in May 2017 and will finish in November 2017. There are 65 towers of which 23% are complete. There are 12 workers, 6 are local and 6 from Baku. All live in rented accommodation. All HSE signage was on display. Journals were sighted and are up to date. No complaints have been received.

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Figure 3-64 Site information boards, Safety Signage and HSE Journals

Figure 3-65 Low Tension Poles and High Tension Towers Some 46 towers have been erected out of 52. The only HSE concern was snakes on site.

3.33. Saatli District 96. The scheme involves the following sub-components: • 10 kV overhead line from 35/10 kV “Saatli” substation • 0.4 kV “SIW” type distribution lines outgoing from the distribution transformer that is fed from 35/10 kV “Saatli” substation • 35/10 kV “Saatli” substation The site employs 13 staff of whom 6 are from Baku and all the rest are local.

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Figure 3-66 Saatli substation under construction

Figure 3-67 Assembly yard for 110 kV towers

Figure 3-68 CTS and poles 97. Due to the high temperatures during the morning work hours have been changed from 3.00pm to 9.00pm at the substation. The assembly yard and laydown area was visited. No environmental issues were noted. The 0.4 kV poles will service 125 km. No complaints have been received.

3.34. Neftchala District 98. The scheme involves the following sub-components: • New 110/35/10 kV “Neftchala” substation • 110 kV overhead line between 110 kV “Salyan” and 110/35/10 “Neftchala” substations • 6 kV overhead line from 110/35/6 kV “Neftchala” substation • 0.4 kV SIW line from 110/35/6 kV “Neftchala” substation The substation contains two transformers of 40 MVA each. The site works are nearly complete with civil works finished and installation of electrical equipment being finalised.

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Figure 3-69 Neftchala substation civil works completed installation ongoing Site clearance is nearly completed. No complaints have been received. No environmental issues were encountered on any of the subcomponents.

3.35. Masalli District 99. The scheme involves the following sub-components: • 35 kV overhead line between 110 kV “Masalli” and 35 kV “Alvadi” substations • 10 kV overhead line from 35/10 kV “Alvadi” substation • 0.4 kV “SIW” type distribution lines outgoing from the distribution transformer that is fed from 35/10 kV “Alvadi” substation • 35/10 kV “Alvadi” substation The site employs 14 workers all of whom are locals. The sites were inspected and all workers were complying with PPE requirements.

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Figure 3-70 Alvadi CTS and distribution lines HSE signage was prominently displayed. Where privately owned tree trimming was required written permission was obtained and is kept in the contractor's head office.

3.36. Lenkaran District 100. The scheme involves the following sub-components: • 10 kV overhead line from 35/10 kV “Sapnakaran” substation • 35 kV overhead between 110 kV “-1” and 35 kV “Sapnakaran” substation • 0.4 kV “SIW” type distribution lines outgoing from the distribution transformer that is fed from 35/10 kV “Sapnakaran” substation • 35/10 kV “Sapnakaran” substation

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The site began operation on 2/6/2017 and will end on 31/12/2017. There are now 5 workers employed all of whom are locals. Additional 15-20 staff are brought in as required. Old equipment will be removed after site completion.

Figure 3-71 Substation, old equipment and distribution lines workers Safety procedures for working at a height were being followed. No complaints have been received. No environmental issues were encountered on any of the subcomponents.

3.37. Hajigabul District 101. The scheme involves the following sub-components: • 35 kV overhead line between “Qazimammad-Darti” substation and 35 kV “Pirsaat” substation

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• 6 kV overhead line from 35/6 kV “Pirsaat” substation • 0.4 kV SIW line from 35/6 kV “Pirsaat” substation • 35/6 kV “Pirsaat” substation This site is a remote location. The number of workers varies from 8 to 45 depending on the needs of the workload. All are from the 7 surrounding villages which comprises the local community. The complaints record book and the HSE records were sighted and were in order.

Figure 3-72 Facilities around Substation and HSE documentation No complaints have been received. No environmental issues were encountered on any of the subcomponents.

3.38. Alyat Settlement 102. The scheme involves the following sub-components: • 35 kV overhead line from 110 kV “Alyat” substation • 35/6 kV “Alyat Baglar” substation • 6 kV cable line from 35/6 kV “Alyat Baghlar” substation • 0.4 kV SIW from 35/6 kV “Alyat Baghlar” substation

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Figure 3-73 Facilities around Alyat Baghlar Substation No complaints have been received. No environmental issues were encountered on any of the subcomponents.

3.39. Khirdalan City 103. The scheme involves the following sub-components: • 35 kV cable line from “110 kV “A.Vahid” substation • 10 kV cable line from 35/10 kV “Khirdalan” substation • 35/10 kV “Khirdalan” substation • 0.4 kV “SIW” type distribution lines outgoing from the distribution transformer that is fed from 35/10 kV “Khirdalan” substation. The site commenced work in June 2017 and is expected to need 1 year until completion although they are now ahead of schedule at 60% completed and hope to finish by January 2018. It employs 10 persons all of whom are local. Local workers are given preference. None lives on site except for a security officer. There are no women working on site. The site is located in a congested position close to neighbouring buildings.

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Figure 3-74 Substation site showing close proximity to residential property The site has all required safety and sanitary facilities. They also maintain a first aid post on site.

Figure 3-75 Safety and Sanitary facilities 104. Complaints have been made from people sitting in the nearby park about the noise of machinery. The contractor has explained the purpose of the works and when possible they run the machines at a slower speed to give less noise. This has satisfied the complainants. The contractor has erected a notice board stating "Apologies for the temporary discomfort". The site works 09.00 to 18.00 with no work on Sundays or Public Holidays. There have been no complaints about sleep disturbance from noise.

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Figure 3-76 Signboards saying "Apologies for the temporary discomfort" 105. The site maintains a HSE journal and a complaints register. So far three complaints have been received and dealt with by the contractor. 1. Complaints were received about dust from material carried in open trucks and from stockpiles on the site. Trucks now have their loads covered with tarpaulins, friable materials on site are covered with tarpaulins and water sprays are used to suppress dust. 2. Vehicles were carrying over mud from the site onto the public road. The contractor has installed wheel washing facilities. 3. Litter from the site was being blown onto the street. The contractor now collects litter and has it removed every day; they pick up litter even if it is not theirs. All of these events are documented.

Figure 3-77 HSE and Complaints Documentation.

106. The 35 kV line has been installed underground and is finished. The 0.4 kV lines will cover 385 km and include 20,000 poles. So far 760 have been installed. It is intended to finish by December 2017. There is no grievance redress to record as all complaints have been dealt with by the contractor and no residual grievances exist.

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Figure 3-78 0.4 kV line installation.

3.40. Siyazan District 107. The scheme involves the following sub-components: • 35 kV line from 110 kV “Siyazan” substation • 6 kV overhead line from 35/6 kV “Siyazan” substation • 35/6 kV “Siyazan” substation • 0.4 kV “SIW” type distribution lines outgoing from the distribution transformer that is fed from 35/6 kV “Siyazan” substation The works commenced in May 2017 and the civil works are 70% done and are expected to be completed in August 2017. The electrical installation should be completed in September 2107. The site employs 10 workers and bring in additional equipment as needed. None of the workers lives on site. No women are employed. Working hours are 09.00 to 18.00 six days a week. There is no work on Sundays or public holidays. If temperature rises above 35oC additional water is handed out to workers. If it exceeds 40oC work is stopped.

Figure 3-79 Substation site close to residential property

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Figure 3-80 HSE Warning signage

Figure 3-81 HSE and Complaints Documentation 108. The HSE journal was inspected. There have been no accidents or time lost to injury. Occasional verbal complaints have been made by passers-by about noise and dust but when it is explained that the works are temporary and will bring benefits to the community the activities are accepted. Two complaints have been documented. 1. A small chicken house had to be removed. The complaint was received on 10.06.2017 and the contractor has given an undertaking to build a new one by 10.08.2017. This is documented.

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2. The gable end of a house near the site perimeter has flaking paint work. The owner has blamed this on the trenching work being carried out nearby. Although the contractor disputes these works have caused any damage they have agreed to repair and repaint the wall in question. The owner is satisfied with this response. This is documented in the Journal. When the site was originally occupied an old light weight wooden office building needed to be removed. This was demolished and removed by the local authority garbage collection service. Construction waste is also removed by them. There is no charge for this service.

Figure 3-82 Trenching works at site perimeter and allegedly damaged white painted wall

109. The 6 kV supply was an overhead line but it now being placed by underground cable in response to a request from the local authorities to minimise visual impact. A mature tree is located on the alignment of the 0.4 kV line. If this needs to be trimmed the contractor has already obtained a letter from the Ministry of Ecology permitting him to do so.

Figure 3-83 Replacement of OH Line with UG Cable

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Figure 3-84 Tree on alignment of SIW line

The 35 kV line consists of 8 tension towers and 4 suspension towers. Stringing was taking place during the site visit. There were no environmental issues identified. There is no grievance redress to record as all complaints have been dealt with by the contractor and no residual grievances exist.

3.41. Non-compliance notices None have been issued,

3.42. Corrective action plans

3.42.1. Grievance Notification Procedure 110. All sites carry a notice board at the entrance giving full details of the site operation, start and finish date and names of the companies. In some cases contractors had omitted to give a contact phone number and were reminded to do so.

3.42.2. Corrective Actions Needed 111. There are certain actions that require follow up. These are: • Obtaining copies and translating signed agreements with land owners over tree trimming • Obtaining copies of agreements with municipalities over tree trimming

3.43. Consultation and complaints

3.43.1. Public Consultation 112. Project stakeholders were consulted during preparation of the IEE and invited to express any environmental and social concerns they had regarding the project. The consultation process will be continued during project implementation to ensure that stakeholders are fully engaged in the project and have the opportunity to participate in its development and implementation.

113. The process for solving environmental complaints that may arise in the project is the Grievance Redress Mechanism, which has been established at each district (rayon) in which the various project components will be implemented. The process is described below:

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Figure 3-85 Grievance Redress Mechanism

Complainant

Feedback provision

Grievance Focal Contractor and After receiving grievance, the PersonGFP (or other responsible person)PMC should:

)

Level Level days st

1 Local (7 calendar (7calendar Authorities

Grievance Redress ) Commission

Level PMU

within the Executive Agency days

nd 2

(15 calendar

Only for social

) ) safeguard related State Financial Control

Level complaints

days Agency under the rd

3

Ministry of Finance (30 calendar (30 calendar

Legal Legal Court

proceedings proceedings Table 7. Description of grievance management process

3.43.2. Consultations 114. Relations with residents are reportedly good. There are no environmental issues.

3.43.3. Complaints Registers 115. All contractors keep a journal of complaints from residents. This has been sighted. Where complaints have been received contractors have taken prompt action to resolve the issue. So far no grievances have occurred. The contractors are demonstrating "Corporate Social Responsibility" and "Responsible Care" by adopting a "Good Neighbour" Policy.

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4. Annex 1 List of Site Visits

Travel Itinerary Quarter 1 & Quarter 2 2017

City/District Construction project sites

Q1 • 10kV overhead line from 35/10 kV “Shamakhi” substation

Shamakhi • 0.4 kV “SIW” type distribution lines outgoing from the distribution District transformer that is fed from 35/10 kV “Shamakhi” substation

Oghuz District • 35 kV from 35/10 kV “Oghuz” substation Oghuz District • 0.4 kV “SIW” type distribution lines outgoing from the distribution transformer that is fed from 35/10 kV “Oghuz” substation Gakh District • 110/35/10 kV “Gakh” substation to replace existing 35/10 kV substation Gakh District • 35 kV overhead line from 110/35/10 kV “Gakh” substation

Gakh District • 0.4 kV “SIW” type distribution lines outgoing from the distribution transformer that is fed from 35/10 kV “Ilisu” substation Ganja City • 110/35/10 kV “Mashingayirma” substation Ganja City • 10 kV overhead line from 110 kV “Ganja-2” substation Ganja City • 35 kV overhead line from 110 kV “Ganja-3” substation Ganja City • 35 kV cable line from 110/35/10 kV “Mashingayirma” substation Ganja City • 10 and 6 kV overhead lines from 35/6 kV “Vagzalyani-1” substation Ganja City • 10 and 6 kV overhead lines from 35/10/6 kV “Yeni Ganja” substation Ganja City • 10 and 6 kV overhead lines from 110/35/10 kV “Mashingayirma” substation Shamkir District • 35 kV cable line from 110/35/10 kV “Mashingayirma” substation Shamkir District • 10 kV overhead line from 35/10 “Shamkir-2” substation Shamkir District • 0.4 kV “SIW” type (self-carrying insulated conductor) distribution lines outgoing from the distribution transformer that is fed from 35/10 kV “Shamkir-2” substation • 110/35/10 kV “Dalimammadli” substation District

Goranboy • 10 kV overhead line from 110/35/10 kV “Dalimammadli” substation District

• Pole Assembly plant

Goranboy • 0.4 kV “SIW” type distribution lines outgoing from the distribution District transformer that is fed from 110/35/10 kV “Dalimammadli” substation

Zardab District • 35 kV overhead line from 110 kV “Udjar” substation • 10 kV overhead line from 35/10 kV “Zardab” substation

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City/District Construction project sites

Zardab District • 0.4 kV “SIW” type distribution lines outgoing from the distribution transformer that is fed from 35/10 kV “Zardab” substation

Imishli District • 10 kV overhead line from 35/10 kV “Rasullu” substation Imishli District • 0.4 kV “SIW” type distribution lines outgoing from the distribution transformer that is fed from 35/10 kV “Rasullu” substation Saatli District • 10 kV overhead line from 35/10 kV “Saatli” substation Saatli District • 0.4 kV “SIW” type distribution lines outgoing from the distribution transformer that is fed from 35/10 kV “Saatli” substation Neftchala District • 110/35/6 kV “Neftchala” substation Neftchala District • 110 kV overhead line between 110 kV “Salyan” and “Neftchala” substations Masalli District • 10 kV overhead line from 35/10 kV “Alvadi” substation Masalli District • 0.4 kV “SIW” type distribution lines outgoing from the distribution transformer that is fed from 35/10 kV “Alvadi” substation Lenkeran District • 10 kV overhead line from 35/10 kV “Sapnakaran” substation Lenkeran District • 35 kV overhead between 110 kV “Lenkeran-1” and 35 kV “Sapnakaran” substation Lenkeran District • 0.4 kV “SIW” type distribution lines outgoing from the distribution transformer that is fed from 35/10 kV “Sapnakaran” substation Hajigabul District • 35 kV overhead line between “Qazimammad-Dsrti” substation and 35 kV “Pirsaat” substation Alyat Settlement • 35 kV overhead line from 110 kV “Alyat” substation Siyazan District • 6 kV overhead line from 35/6 kV “Siyazan” substation • 0.4 kV “SIW” type distribution lines outgoing from the distribution transformer that is fed from 35/6 kV “Siyazan” substation Khirdalan City • 35 kV cable line from “110 kV “A.Vahid” substation • 0.4 kV “SIW” type distribution lines outgoing from the distribution transformer that is fed from 35/10 kV “Khirdalan” substation Q2 • 35 kV overhead line from 110 kV “Shamakhi-3” substation • Shamakhi Shamakhi 10kV overhead line from 35/10 kV “ ” substation • 0.4 kV “SIW” type distribution lines outgoing from the distribution District transformer that is fed from 35/10 kV “Shamakhi” substation • 35/10 kV “Shamakhi” substation Oghuz District • 35 kV line from 110 kV “Azersu” substation • 35 kV from 35/10 kV “Oghuz” substation • 0.4 kV “SIW” type distribution lines outgoing from the distribution transformer that is fed from 35/10 kV “Oghuz” substation • 35/10 kV “Oghuz” substation Gakh District • 110/35/10 kV “Gakh” substation to replace existing 35/10 kV substation • 35 kV overhead line from 110/35/10 kV “Gakh” substation • 10 kV overhead line from 35/10 kV “Ilisu” substation • 35/10 kV “Ilisu” substation • 0.4 kV “SIW” type distribution lines outgoing from the distribution transformer that is fed from 35/10 kV “Ilisu” substation

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City/District Construction project sites

Mingachevir City • 35 kV cable line from 110 kV “Shahar” substation • 6 kV overhead line from 35/6 kV “Mingachevir” substation • 0.4 kV SIW line from 35/6 kV “Mingachevir” substation • 35/6 kV “Mingachevir” substation Shamkir District • 35 kV overhead ad cable line from 110 kV “Dallar-Darti” substation • 35 kV cable line from 110/35/10 kV “Mashingayirma” substation • 10 kV overhead line from 35/10 “Shamkir-2” substation • 0.4 kV “SIW” type (self-carrying insulated conductor) distribution lines outgoing from the distribution transformer that is fed from 35/10 kV “Shamkir-2” substation • 35/10 “Shamkir-2” substation Zardab District • 35 kV overhead line from 110 kV “Udjar” substation • 10 kV overhead line from 35/10 kV “Zardab” substation • 0.4 kV “SIW” type distribution lines outgoing from the distribution transformer that is fed from 35/10 kV “Zardab” substation • 35/10 kV “Zardab” substation Imishli District • 10 kV overhead line from 35/10 kV “Rasullu” substation • 0.4 kV “SIW” type distribution lines outgoing from the distribution transformer that is fed from 35/10 kV “Rasullu” substation • 35/10 kV “Rasullu” substation Saatli District • 10 kV overhead line from 35/10 kV “Saatli” substation • 0.4 kV “SIW” type distribution lines outgoing from the distribution transformer that is fed from 35/10 kV “Saatli” substation • 35/10 kV “Saatli” substation Neftchala District • New 110/35/10 kV “Neftchala” substation • 110 kV overhead line between 110 kV “Salyan” and 110/35/10 “Neftchala” substations • 6 kV overhead line from 110/35/6 kV “Neftchala” substation • 0.4 kV SIW line from 110/35/6 kV “Neftchala” substation Masalli District • 35 kV overhead line between 110 kV “Masalli” and 35 kV “Alvadi” substations • 10 kV overhead line from 35/10 kV “Alvadi” substation • 0.4 kV “SIW” type distribution lines outgoing from the distribution transformer that is fed from 35/10 kV “Alvadi” substation • 35/10 kV “Alvadi” substation Lenkeran District • 10 kV overhead line from 35/10 kV “Sapnakaran” substation • 35 kV overhead between 110 kV “Lankaran-1” and 35 kV “Sapnakaran” substation • 0.4 kV “SIW” type distribution lines outgoing from the distribution transformer that is fed from 35/10 kV “Sapnakaran” substation • 35/10 kV “Sapnakaran” substation Hajigabul District • 35 kV overhead line between “Qazimammad-Darti” substation and 35 kV “Pirsaat” substation • 6 kV overhead line from 35/6 kV “Pirsaat” substation • 0.4 kV SIW line from 35/6 kV “Pirsaat” substation • 35/6 kV “Pirsaat” substation Alyat Settlement • 35 kV overhead line from 110 kV “Alat” substation • 35/6 kV “Alyat Baghlari” substation • 6 kV cable line from 35/6 kV “Alyat Baghlari” substation • 0.4 kV SIW from 35/6 kV “Alyat Baghlari” substation

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City/District Construction project sites

Khirdalan City • 35 kV cable line from “110 kV “A.Vahid” substation • 10 kV cable line from 35/10 kV “Khirdalan” substation • 35/10 kV “Khirdalan” substation • 0.4 kV “SIW” type distribution lines outgoing from the distribution transformer that is fed from 35/10 kV “Khirdalan” substation Siyazan District • 35 kV line from 110 kV “Siyazan” substation • 6 kV overhead line from 35/6 kV “Siyazan” substation • 35/6 kV “Siyazan” substation • 0.4 kV “SIW” type distribution lines outgoing from the distribution transformer that is fed from 35/6 kV “Siyazan” substation

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