Memorandum on Safeguards Classification

Major Change of Batumi Bypass Road Project (GEO 50064)

MEMORANDUM ON SAFEGUARDS CLASSIFICATION

Brief Project Description L3520-GEO: Batumi Bypass Road Project

The initial scope of the project involved only the construction of Batumi Bypass. Upon request of the Government, a new scope under the existing project is proposed, consisting of the Poti–Grigoleti–Kobuleti Bypass and the Bakurtsikhe–Tsnori Road Section, to be funded under the loan savings.

A. Batumi Bypass

1. The Project road, bypassing the city of Batumi from the East, is entirely located in Khelvachauri District (see Figure 1 for the alignment and location of tunnels and bridges). The design alignment goes through the villages of Makhinjauri, Gantiadi, Kapreshumi, Salibauri, Peria, and Makhvilauri. Passing through the above villages, the design alignment crosses complex landscape of multiple ravines, streams, rivers, hills and hillsides. Thirteen kilometer of road, five tunnels, 15 bridges and four interchanges are planned along the Project alignment. Commencement date of the contract is 2017 and the expected time to complete the construction works is 2020.

2. The Project passes through a rolling and hilly terrain with elevations ranging from 20 to 197 m on the alignment. Nearly two-third of the Study Area is covered with vegetation whereas the remaining is anthropogenic in nature.

B. Poti–Grigoleti–Kobuleti Bypass

3. The Poti–Grigoleti-Kobuleti bypass section is part of the E-60 and E-70 highways and the larger East-West road corridor in Georgia, which is an integral part of one of the six key CAREC corridors (Corridor 2) providing the shortest transit link to connect Central Asia with Europe and East Asia. The Project is located along the Black Sea coastal area within the Sanegrelo–Zemo Svaneti Region and on the border between Khobi Municipality and the Poti administrative center (Figure 2).

4. The 2.5 km road Project consists of a 2-lane (one lane in each direction) multi-span bridge over the Rioni River and its connection with the existing highway on both sides of the river. The starting point is located on the E-60 highway to Senaki at the right riverbank of Rioni River in the northern outskirts of the city of Poti. The new section of highway will pass next to a residential area (Patara Poti Village) using the same alignment and parallel to the existing railway bridge over the river. A small section (approximately 1 km) of an existing secondary road, which runs to the Kulevi Oil Terminal from Patara Poti and parallel to the river, will also be upgraded with a modified alignment to accommodate the new bridge and road approaches.

5. There are two protected sites in the vicinity of the Project: Kolkheti National Park and the Wetlands of Central Kolkheti Ramsar Site. These two sites cover the same geographic area and have the same IUCN Management Category (II). This area is also being proposed as an Area of Special Conservation Interest (or “Emerald Site”) by the national government under the Bern Convention. The internationally recognized Kolkheti Important Bird Area (also de facto a Key Biodiversity Area) also occurs within the Project area. The closest distance between the protected area and the new alignment is around 200m. An amendment bill to the Georgian Law on the “Establishment and Management of the Kolkheti Protected Areas” has been developed which extends the area of Kolkheti National Park and creates a new protected area called the Rioni Managed Reserve in Samtredia Municipality. The extent of the proposed expansion is unknown at this time.

6. One of the primary concerns for the Project is the presence of the sturgeon species in Rioni River, which are considered among the most threatened group of animals on the International Union for Conservation of Nature (IUCN) Red List of Threatened Species. In order to protect biodiversity and support Major Change of Batumi Bypass Road Project (GEO 50064)

sustainable management of living natural resources in the Project area and beyond, various alternatives (e.g., detention basins, incorporated storage within the superstructure, and tanks and vaults) were considered to protect water quality in the Rioni River during construction and operation of the Project. An Environmental Impact Assessment (EIA) report has been prepared to assess potential impacts of the Project, especially on the identified sensitive receptors of the Project. A Biodiversity Action Plan (BAP) has also been developed to demonstrate Project compliance with ADB biodiversity safeguards (ADB SPS 2009).

C. Bakurtsikhe–Tsnori Road Section

7. The Bakurtsikhe–Tsnori road section is expected to be designed and built in Alazani lowland along the new alignment bypassing the settled areas along the existing road (Figure 3). The new road section will branch from the Bakurtsikhe–Gurjaani bypass road, which is presently under construction, at approximately km 1.8. The road continues north-east crossing an irrigation canal and then turning right to run parallel to the canal in a south-easterly direction before connection with the S-5 Tbilisi–Lagodedekhi. The length of the new road is approximately 16 km, starting at km 0+600 and ending at km 16+809. The road is located within Gurjaani Municipality (Bakurtsikhe) and Sighnaghi Municipality (Tsnori). The Project area is sparsely populated, highly agricultural, characterized as heavily anthropogenically modified.

8. To provide adequate access to the villages being bypassed, a diamond interchange is planned. The secondary road where the new interchange will connect will be rehabilitated/paved. The length of the secondary road is approximately 1,100 m and the paved carriageway width will be 6 m with 0.50 m gravel shoulder on both sides. While final designs of the secondary road still need to be developed by the design build Contractor, the upgraded road will stay within the exiting right-of-way (ROW). The secondary road currently connects the village of Vakiri to a service road running parallel to the agriculture channel and the proposed road. The secondary road is now being utilized by local residents and farmers and the numbers of vehicles is very low. Since the secondary road will be the only connection along the new road between Bakurtsikhe and Tsnori, the number of users is expected to increase.

D. Overall Project Impacts and Proposed Categorization

9. The proposed road project is expected to have significant environmental impacts, specifically during construction phase. During construction, potential impacts will include soil erosion, generation of fugitive dust and air emissions, generation of noise and vibration, water quality degradation and loss of natural habitat and impacts to aquatic ecology and fauna, road access restrictions and traffic disturbance, land and water contamination due to accidental release of hazardous substances; and increased human health and safety hazards.

10. During operation, while the project will improve access of the community to education, social, health, and community services, impacts may be expected due to increased noise levels, air pollution, and potential induced impacts.

11. For Environment, Batumi Bypass and Poti–Grigoleti–Kobuleti Bypass are considered as Category A, while Bakurtsikhe–Tsinori Road is considered as Category B. The overall project, due to its scale and likely impacts is proposed as environment category A. Environmental impact assessments (EIA) have been prepared for both Batumi Bypass and Poti–Grigoleti Kobuleti Bypass, while an Initial Environmental Examination will be prepared for Bakurtsikhe–Tsinori Road.

12. For Involuntary Resettlement (IR), Batumi Bypass and Bakurtsikhe–Tsinori Road sections involve significant land acquisition and resettlement and are considered as Category A, while Poti–Grigoleti– Kobuleti Bypass is considered as Category B. The overall project is categorized as A for IR. All sections are considered Category C for indigenous people (IP).

Figure 1: Batumi Bypass Road

Figure 2. Poti-Grigoleti-Kobuleti Bypass

Figure 3. Bakurtshikhe-Tsinori Road Section ENVIRONMENT CATEGORIZATION

Date: 13 June 2019

A. Instructions (i) The project team completes and submits the form to the Environment and Safeguards Division (RSES) for endorsement by RSES Director, and for , approval.. by the Chief Compliance Officer (CCO). OM F1/OP on Safeguard Revrew Procedures (paras. 4-7) provides the requirements on enwonment i I categonzaUon. (ii) The classification of a project is a continuing process.lfthere is a change in the project components or/and site that may result in category change, ihe Sector Division submits a new form and requests for recategorization, and endorsement by RSES Director and by the CCO. The old form is attached for reference. (iii) In addition, the prolect team may propose in the comments section that the project is highly complex and sensitive (HCS), for approval by the CCO. HCS projects are a subset of category A prolects that ADB deems to be highly risky or contentious or involve serious and multidimensional and generally interrelated potential social and/or enwonmental impacts. B. Project Data

Country/Project No./Project Title : L3520- GEO: Batumi Bypass Road Project (Poti Bridge) Department/ Division : CWTC Processing Stage Modality : Project Loan (Scope Change) [ x ] Project Loan [ ] Program Loan [ ] Financial Intermediary [ ] General Corporate Finance [ [ ] Sector Loan [ ] MFF [ ] EmergencyAssistance [ ] Grant [ [ ] Other financing modalities:

C. Environment Category (please tick one category based on the set of criteria in (paras. 6- 7))

[ [ X ] New [ ] Recategorization - Previous Category [ ]

[ XC ategory A j € Category B ---:,--- € Category C :, € Category Fl D. Basis for Categorization/ Recategorization (please. attach supporting documents): [x ] REA Checklist [ x ] Project and/or Site Description [ ] Other:

E. Comments Project Team Comments SDES Comments The proposed Project component comprises of a 2.5 km road secUon (Lot 2, Stage 1) in Poti- Grigoleti. The road pro3ect will be a 2-lane (one lane in each direcUon) mulU- span bridge of 500 m over the Rioni River and its connection (aprox 1 km access road each side) with the existing highway on both sides of the river. The prolect locaUon is approximately 200m away from the KolkheU I I National Park and the Wetlands of Central Kolkheti Ramsar Site. Critically endangered surgeons have been identified in Rioni river.

The proposed road is relatively short. However, it crosses Ohe Rioni River which is known to support a population of three species of Sturgeon which are critically endangered globally. The bridge construction has the potential to impact these fish, stopping their travel up river to spawn if not constructed at alternative times of the year. The road also may impact a critically endangered species of plant. While the road will have other impacts from loss of terrestrial habitat, noise and dust, impacts to the river are most significant and for this reason the Project is considered as Category A. Previous project prior to additional scope is also Category A.

Environment Categorization Form F. Approval Proposed by: Endorsed by:

Transport Specialist, Project Team Shanny Campbell, Principal Bruce Dunn, Director, SDSS Leader, CWTC Date: June 2C)19 Date:

Duncan Lang, Environment Specialist CWRD/CWOD- PSG Approved by: Highly Compiex Endorsed by: and Sensitive Project Chief Compliance Officer Date:

Environment Categorization Form Rapid Environmental Assessment (REA) Checklist

Instructions:

(i) The project team completes this checklist to support the environmental classification ot' a project. It is to be attached to the environmental categorization form and submitted to the Environment and Safeguards Division (RSES), for endorsement by Director, RSES and for approval by the Chief Compliance Officer.

(ii) This checklist focuses on environmental issues and concerns.-To ensure that social dimensions are adequately considered, refer also to ADB's (a) checklists on involuntary resettlement and Indigenous Peoples; (b) poverty reduction handbook; (c) staff guide to consultation and participation; and (d) gender checklists.

(iii) Answer the questions assuming the "without mitigation" case. The purpose is to identify potential impacts. Use the "remarks" section to discuss any anticipated mitigation measures.

Country/Project Title: L3520-GEO : Batumi Bypass Road Project (Poti-Batumi-Sarp i Road)

Sector Division: CWTC

Screening Questions Yes No Remarks ' A. ProJect Siting Is the prolect area adjacent to or within any of the following environmentally sensitive areas?

ii ii Cultural heritage site x

s Protected Area x

a Wetland x

m Mangrove x

s Estuarine x

s s Buffer zone of protected area x

ii ii Special area for protecting biodiversity x

B. Potential Environmental Impacts Will the Project cause...

s s encroachment on historical/cultural areas; disfiguration x of landscape by road embankments, cuts, fills, and quarnes?

b b encroachment on precious ecology (e.g. sensitive or x protected areas)? Screening Questions ' Yes No Remarks s s alteration of surface wate-r hydrology of waterways x The road project has a number of crossed by roads, resulting in increased sediment in culverts and adequate number of streams affected by increased soil erosion at bridges proposed in the detaffed design construction site?

s s deterioration of surface water quality due to silt runoff x Impacts that may arise will be averted and sanitary wastes from worker- based camps and by adequate mitigation measures chemicals used in construction?

s s increased local air pollution due to rock crushing, x In areas close to communities mitigation cutting and filling works, and chemicals from asphalt measures for dust suppression will be processing? introduced, quames will be far from the site and communities. a risks and vulnerabilities related to occupational health x and safety due to physical, chemical, biological, and radiological hazards dunng pro3ect construction and operation dunng project construction and operation?

u u noise and vibration due to blasting and other civil x Blasting is not anticipated works?

s s dislocation or involuntary resettlement of people? x A LARP is being prepared which will address all such impacts ffi ffi dislocation and compulsory resettlement of people x A LARP is being prepared which will living in right- of- way? address all such impacts

a a disproportionate impacts on the poor, women and x The area is not heavily populated, and children, Indigenous Peoples or other vulnerable the'road will benefit these areas that groups? vvere away from the main highway

a a other social concems relating to inconveniences in x Impacts are temporary in nature and will living conditions in the prolect areas that may tngger be averted by adequate dust cases of upper respiratory problems and stress? suppression and other mitigation measures m m hazardous driving conditions where construction x Proper signage and speed limits will interferes with pre- existing roads. address such impacts

w w poor sanitation and solid waste disposal in construction x Proper mitigation measures, camp camps and work sites, and possible transmission of management and trainings will address communicable diseases (such as STI's and HIV/AIDS) any such impacts from workers to local populations?

u u creation of temporary breeding habitats for diseases x such as those transmitted by mosquitoes and rodents? m accident risks associated with increased vehicular x Proper signage and speed limits will traffic, leading to accidental spills of toxic materials? address such impacts s s increased noise and air pollution resulting from trafflc Speed limits and dust suppression voluri_e? mitigation measures will address such tmpacts s i-ncre'ffised'-risk of water poll-uti'onfrom oii7grea-se ,ffind ' I X Oil waste and hazardous waste ' fuel spills, and other matenals from vehicles using the management plag will address such road? eventualities . Screening Questions Yes No Remarks s s large population influx during project construction and x Camps will be located away from operation that causes increased burden on social villages and small towns infrastructure and services (such as water supply and . sanitation systems)?

ii risks to community health and safety due to the x Blasting is not anticipated transport, storage, and use and/or disposal of materials such as explosives, fuel and other chemicals during construction and operation?

ii community safety risks due to both accidental and x natural causes, especially where the structural elements or components of the pro)ect are accessible to members of the affected community or where their failure could result in inlury to the community throughout project construction, operation and decommissioning. A Checklist for Preliminary Climate Risk Screening

Country/Project Title: GEO Batumi Bypass Sector: Transport Subsector: Road Division/Department: CWTC/CWRD Screening Questions Score Remarks

Location and Is siting and/or routing of the project (or its components) 1 GIS-based analysis indicates that the Design of likely to be affected by climate conditions including proposed locations are exposed to low to project extreme weather related events such as floods, droughts, medium levels risk of flooding and storms, landslides? medium to high risk ofprecipitation - Would the project design (e.g. the clearance for bridges) 1 induced landslide (see Appendix A). need to consider any hydro- meteorological parameters

(e.g., sea- level, peak river flow, reliable water level, peak wind speed etc)? Materials Would weather, current and likely future climate o and conditions (e.@. prevailing humidity level, temperature Maintenance contrast between hot summer days and cold winter days, exposure to wind and humidity hydro-meteorological parameters likely affect the selection of project inputs over the life of project outputs (e.g. construction material)? Would weather, current and likely future climate 1 Georgia is expected to experience an conditions, and related extreme events likely affect the increase in annual mean temperature of maintenance (scheduling and cost) of project output(s) ? 1.5 to 2 oC, which may affect materials ] Performance Would weather/climate conditions, and related extreme 1 performance. Flood events may damage of project events likely affect the performance (e.g. annual power structural components. outputs production) of project output(s) (e.g. hydro- power generation facilities) throughout their design life time? Options for answers and corresponding score are provided below: Response Score Not Likely o Likely i Very-Likely 2 Responses when added that provide a score of 0 will be considered low risk project. If adding all responses will result to a score of 1- 4 and that no score of 2 was given to any single response, the prolect will be assigned a medium risk category. A total score of 5 or more (which include providing a score of 'l in all responses) or a 2 in any single response, will be categorized as prolect. Result of Initial Screening (Low, Medium, High): Medium

Other Comments: It is proposed that a further climate risk and vulnerability assessment is undertaken for this prolect, and feasible and appropriate adaptation measures incorporated into prolect design.

Dpraetep:a5re;ebpytem'abaeihra2nO"16ve 'f\Jl) y'l"'\,'\,C,'v!r'i, 'F' \i"'l - "'

IPCC, 2013 Climate Change WG'l see Annex 1. GEO Batumi Bypass project - REA climate checklist Appendix A

Figure lb: GIS flood and landslide risk analysis

Legend:

Flood mor'ality nsk X No dat a t"l Low Sloderate N Medi um g Hlgh B Ext reme

Flood hazard 50 years (tm)

X N o data b!igoo

Landslides PR

Low B Sledium j!! High 8 Very High X No data

Source: UNEP PREVIEW Global Risk Platform

Comments:

Low to Medium flood risk * Medium to High landslide risk ROADS AND HIGHWAYS Page 1 of 4

Rapid Environmental Assessment (REA) Checklist

Instructions:

(i) The project team completes this checklist to support the environmental classification of a project. It is to be attached to the envtronmental categorization form and submitted to the Environment and Safeguards Division (SDES), for endorsement by Director, SDES and for approval by the Chief Compliance Officer.

(ii) This checklist focuses on environmental issues and concerns. To ensure that social dimensions are adequately considered, refer also to ADB's (a) checklists on involuntary resettlement and Indigenous Peoples; (b) poverty reduction handbook; (c) staff guide to consultation and participation; and (d) gender checklists.

(iii) Answer the questions assuming the "without mitigation" case. The purpose is to identify potential impacts. Use the "remarks' section to discuss any anticipated mitigation measures.

Country/Project Title: L3520- GEO: Batumi Bypass Road Project (Poti- Grigoleti- Kobuleti Bypass)

Sector Division: CWTC

Screening Questions Yes No . Remarks A. Project Siting . There are two protected sites in the vicinity Is the pro3ect area adjacent to or within any of the of the Project: Kolkheti National Park and following environmentally sensitive areas? the Wetlands of Central Kolkheti Ramsar Site. These two sites cover the same ' u u Cultural heritage site x geographic area and are categorized by IUCN as Category (11). The closest s Protected Area x distance between the protected area and the new alignment is around 200m. s Wetland x An amendment bill to the Georgian Law has been developed which extends the au='a of Kolkheti National Park and creates w w Mangrove x a new protected area called the Rioni Managed Reserve in Samtredia a, Estuarine ' x Municipality. Expansion of the Kolkheti National Park will cover the section s s Buffer zone of protected area x adjoining the Rioni River confluence, the river confluence, and its adjoining sea x area. The exact extent of the expansion is not known at this time. ii ii Special area for protecting biodiversity The area of the Kolkheti National Park is also being proposed as an Area of Special Conserva5on Interest (or "Emerald Site") by the national government under the Bern Convention. B. Potential Environmental Impacts Will the Project cause...

'l 'l encroachment on historical/cultural areas; disfiguration x The nearest historical/cultural area is of landscape by road embankments, cuts, fills, and approx. 30 kms away from the project site, quarries? the Archaeopolis in Senaki Municipality, where human burials of Hellenistic and Byzantine periods have been excavated as well as ruins of buildings. l Page 2 of4

Screening Questions Yes No - Remarks W encroachment on preciou-s ecology (e.g. sensitive or x The construction of the bridge may protected areas)? adversely impact the aquatic ecology in Rioni river, more specifically the sturgeon species which are considered critically endangered. a alteration of surface water hydrology of waterways x The project may result to releases of crossed by roads, resulting in increased sediment in sediment and minor changes to hydrology streams affected by increased soil erosion at during construction. construction site?

s deterioration of surface water quality due to silt runoff x The construction of the bridge over Rioni and sanitary wastes from vvorker- based camps and river may cause refease of contaminants, chemicals used in construction? sediment loading and runoff into watercourses that may result to deterioration of surface water quality. m increased local air pollution due to rock crushing, x The project will include crushing plants, cutting and filling works, and chemicals from asphalt asphalt processing and batching, which processing? have the potential to cause air pollution. u risks and vulnerabilities related to occupational health x The project will employ hundreds of and safety due to physical, chemical, biological, and workers: Construction activities and radiological hazards during prolect construction and maairitenance activities required during operation during prolect construction and operation? operation may have occupational health and safety impacts if not properly managed. w noise and vibration due to blasting and other civil x No blasting is anticipated for the project. works? Noise and vibration will be mainly from construction activities (i.e. pile driving, excavation works, etc) and operation of construction equipment. Noise will be managed to the extent possible using best practice and mitigation measures aimed at reducing and or directirig construction related sounds that may impact sensitive noise receptors. u u dislocation orinvoluntary resettlement of people? x In overall the Proiect will affect 1 company and '12 AHs (59 AP). Of these, the. company and 11 AHs will lose registered agricuftural iand and two AHs will lose legalizable plots (1 AH loses 1 legalizable and 1 registered plot). s s dislocation and compulsory resettlemerit of people x living in right- of- way? s s disproportionate impacts on the poor, women and x Based on the assessment done as part of children, Indigenous Peoples or other vulnerable the project Land Acquisition and groups? Resettlement Plan (LARP), two of the 12 Project Affected Households (AHs) are recognized as the vulnerable AH (women headed AHs). s s (iijlB7 5@(Bi (_(i7(4BB5 l'Bi3ylrri, !O 1(ir,0r1yBI'1iBr1r;@5 in Xl living conditions in the project areas that may trigger cases of upper respiratory problems and streSS? w w hazardous driving conditions where construction x Multiple constructiori vehicles will use the interferes with pre- existing roads? existing roads to transport materials and may potentially cause traffic disturbance in the existing road network. , ROADS AND HIGHWAYS Page 3 of 4

Screening Questions Yes No Remarks s s poor sanitation and solid -waste disposal in constructionx Health- related impacts can be expected camps and work sites, and possible transmission of from operation of work camps if not communicable diseases (such as STI's and HIV/AIDS) properly mitigated. from workers to local populations?

a a creation of temporary breeding habitats for diseases x Unlikely to be significant. such as those transmitted by mosquitoes and rodents?

s accident risks associated with increased vehicular x Multiple construction vehicles will use the traffic, leading to accidental spills of toxic materials? existing roads to transport materials. Increased traffic flow may result to increased accidents if not properly mitigated. ii ii increased noise andaair pollution resulting from traffic x Increased noise and air pollution are volume? anticipated as a result of rncreased trafflc volume. During project operation, an estimated O.5dB increase from existing noise levels is projected. s s increased risk of water pollution from oil, grease and x There is a potential for increased risk of fuel spills, and other matenals from vehicles using the water polluuon due to spills, especially road? during construction of the bndge'.

s s social conflicts if workers from other regions or x No social conflict is expected. Local countries are hired? workforce will be engaged on the prolect.

x Unlikely to be an issue as most workers a a lOaprgeeraptlo0pnutlhaatitocnaiunsfleusx.IdnucrrienagSperdojbeucrtdceonn0sntr0sc0tciolan, and will be local hires or will be using infrastructure and services (such as water supply and accommodation camps. sanitation systems)?

s s risks to community health and safety due to the x There is a potential for health and safety transport, storage, and use and/or disposal of materials issues due to the construction activities such as explosives, fuel and other chemicals during (i.e. storage/disposal of materials) if construction and operation? mitigation measures are not implemented.

a a community safety risks due to both accidental and x Unlikely, assuming thatfull design natural causes, especially where the structural assessment is carried out for the prolect to elements or components of the pro3ect are accessible to ensure such risks are eliminated. members of the affected community or where their ' failure could result in in3ury to the community throughout project construction, operation and decommissioning. ROADS AND HIGHWAYS page 1 of 1

A Checklist for Preliminary Climate Risk Screening

consider any hydro- meteorologica! parameters (e.g., sea- level, peak river flow, reliable waterlevel, peak wind speed etc.)? Materials and Would weather, current and likely future climate conditions (e.g. o Maintenance prevailing humidity level, temperature contrast between hot summer days and cold winter days, exposure to wind and humidity

hydro- meteorological parameters likely affect the selection of project inputs over the life of project outputs (e.g. construction material)? Would weather, current and likely future climate conditions, and o Appropriate site selection and related extreme events likely affect the maintenance (scheduling and detailed design of road cost) of project output(s)? infrastructure can mitigate Performance of Would weather/climate conditions, and related extreme events 1 risks due to extreme weather project outputs likely affect the performance (e.g. annual power production) of events.

project output(s) (e.g. hydro- power generation facilities) throughout their design life time? Options for answers and corresponding score are provided below: Response Score Not Likely o Likeh/ 1 Very-Likely 2 Responses when added that provide a score of 0 will be considered project. If adding all responses will result to a score of 1- 4 and that no score of 2 was given to any single response, the prolect will be assigned a medium risk category. A total score of 5 or more (which include providing a score of 1 in all responses) or a 2 in any single response, will be categorized as pro)ect. Result of Initial Screening (Low, Medium, High): Medium

Other Comments: Climate change considerations have already been incorporated into the feasibility study of proposed civil works through upwards adjustment of key climate-related design vanables (e.g. 1-day max precipita5on) by 10- 20%. This is consistent with approach taken for GEO Kvesheti-Kobi Road prolect. L'ar: e\ e,M Date: 3at May 2019 Appendix A

Bakurtsikhe - Tsnori Road Hazard Map

Indicative project area

,% ,.. . W<:. .ia:,

Legend: Landslide risk (green) and flood risk (blue) gradients.

Poti Hazard Map

Source: UNEP PREVIEW data platform ENVIRONMENT CATEGORIZATION

Date: 13 June 2019 A. Instructions (i) The project team completes and submits the form to the Environment and Safeguards Division (RSES) for endorsement by RSES Director, and for approval by the Chief Compliance Offlcer (CCO). OM F1/OP on Safeguard Revrew Procedures (paras. 4-7) provides the requirements on environment categorization. (ii) The classification of a project is a continuing process. If there is a change in the project components or/and site that may result in category change, the Sector Division submits a new form and requests for recategorization, and endorsement by RSES Director and by the CCO. The old form is attached for reference. (iii) In addition, the prolect team may propose in the comments section that the project is highly complex and sensitive (HCS), for approval by the CCO. HCS projects are a subset of category A prolects that ADB deems to be highly risky or contentious or involve serious and multidimensional and generally interrelated potential social and/or enwonmental impacts. B. Project Data

Country/Project No./Project Title : L3520- GEO: Batumi Bypass Road Project (Bakutsikhe - Tsnori) DepartmenUDivision : CWTC Processing Stage Modality : Project Loan (Scope Change [x ] Project Loan [ ] Program Loan [ ] Financial Intermediary [ ] General Corporate Finance [ [ ] Sector Loan [ ] MFF [ ] Emergency Assistance [ ] Grant [ [ ] Other financing rnpdalities:

C. Environment Category (please tick one category based on the set of criteria in ___OMF1 (paras. 6- 7))

[ [ X ] New [ ] Recategorization - Previous Category [ A ]

[] Category A : [ X Category B : [5 Category C :, € Category Fl D. Basis for Categorization/ Recategorization (please. attach supporting documents):

[ x ] REA Checklist [ x ] Project and/or Site Description [ ] Other:

E. Comments Project Team Comments SDES Comments The proposed Project component comprises of a 16 km road from Bakurtsikhe- Tsnori in the Kakheti region to the East of Georgia.

The Road is largely located a rural landscape extensively used for agriculture and on an existing access track created for maintenance of an ad3acent canal.

The road will have relatively limited impact on natural habitat and species and does not pass directly through any villages so will cause minimal impacts in terms of noise, dust and reduced air quality. Some partial loss of land parcels will occur but there will be minimal resettlement. Flow into the adjacent imgation canal will be avoided and it is considered that impacts can be managed adequatelyfor this project during Construction and Operation. The Prolect is therefore considered Category B. The overall prolect is Category A. F. Approval

Proposed by: ,__,,., ' e_-7,/ /,, Endorsed by:

Environment Categorization Form Duncan Lang, Environment Specialist CWRD/CWOD- PSG Approved by: Highly Compiex and Sensitive Project Chief Compliance Officer Date: l ""Joooatneg Soo i:yoS,,.D:,,recSto,r, CWlXC %

Environment Categorization Form Rapid Environmental Assessment (REA) Checklist

Instructions:

(i) The project team completes this checklist to support the environmental classification of a pi'oject. It is to be attached to the environmental categorization form and submitted to the Environment and Safeguards Division (SDES), for endorsement by Director, SDES and for approval by the Chief Compliance Officer.

(ii) This checklist focuses on environmental issues and cqncerns. To ensure that social dimensions are adequately considered, refer also to ADB's (a) checklists on involuntary resettlement and Indigenous Peoples; (b) poverty reduction handbook; (c) staff guide to consultation and participation; and (d) gender checklists.

(iii) Answer the questions assuming the "without mitigation" case. The purpose is to identify p6tential impacts. Use the "remarks" section to discuss any anticipated mitigation measures.

Country/Project Title: L3520- GEO: Batumi Bypass Road Project (Bakurtsikhe- Tsnori Road Section)

Sector Division: CWTC

Screening Questions Yes No Remarks A. Project Siting There are no protected areas or Is the prolect area adjacent to or within any of the environmentally sensitive areas in the following enwonmentally sensitive areas7 vicinity of the Prolect area. In general, the area has been heavily anthropogenically modified. The malority of land has been deforested for wood and agricultural purposes. a Cultural heritage site x

m Protected Area x

W Wetland x

s Mangrove x

w Estuarine x

a Buffer zone of protected area x

s Special area for protecting biodiversity x

B. Potential Environmental Impacts Will the Project cause...

ii encroachment on historical/cultural areas; disfiguration x There are many architectural monuments in of landscape by road embankments, cuts, fills, and Gurjaani- Sighnaghi municipalities but there quarries? are no historical or cultural sites present in the Project area. The closest historic monument is located in the village Akura, which is approximately 25 km away from Bakurtsikhe. Screening Questions Yes No Remarks s encroachment on preciou-s ecology (e.g. sensitive or x There are no protected areas in the vicinity protected areas)? of the Project area.

s alteration of surface water hydrology of waterways x The project alignment is crossed by 24 ' crossed by roads, resulting in increased sediment in gullies and nine smaller channels streams affected by increased soil erosion at dispensing water from the irrigation canal. construction site? Construction activities may result to increased soil erosion and re!eases of sediment. ii deterioration of surface water quality due to silt runoff x Deterioration of water quality may occur and sanitary wastes from worker- based camps and due to temporary works associated with chemicals used in construction? bridge and road construction and release of contaminants, sedimerit toading, and other runoff into watercourses. ii increased local air pollution due to rock crushing, x The project will include crushing plants, cutting and filling works, and chemicals from asphaJt asphalt processing and batching, which processing? have the potential to cause air pollution.

w risks and vulnerabilities related to occupational health x The project will employ hundreds of and safety due to physical, chemical, biological, and workers. Construction activities and radiological hazards during prolect construction and maintenance activities required during operation during project constniction and operation? operation may have occupational health and safety impacts if not properly managed. ii noise and vibration due to blasting and other civil x No blasting is anticipated for the project. works? Noise and vibration will be mainly from construction activities and operation of construction equipment. Noise will be managed to the extent possible using best practice and mitigation measures aimed at reducing and or directing construction related sounds that may impact sensitive noise receptors. s dislocation orinvoluntary resetklement of people? x

s dislocation and compulsory resettlement of people x To be confirmed. The project may living in right- of- way? potentially impact small- scale farrners with land not officially registered and or with agriculture land being used for production of fruit and grapes in the planned ROW u disproportionate impacts on the poor, women and x No evidence to suggest that vulnerable children, Indigenous Peoples or other vulnerable groups will be more adversely affected groups? than other groups by the pro3ect.

ii other social concems relating to inconveniences in x living conditions in the pro3ect areas that may trigger cases of upper respiratory problems and stress?

s hazardous driving conditions where construction x Multiple construction vehicles will use the interferes with pre- existing roads? existing roads to transport materials and i mk,. a.y:Aol:ekirilltgiarll0yacuJa::e.,tb 0rar,fflc disturbance in . ii poor sanitation and solid waste disposal in consIruction Health- related impacts can be expected camps and work sites, and possible transmission of from operation of work camps if not communicable diseases (such as STI's and HIV/AIDS) properly mitigated. from workers to local populations? "i Screening Questions Yes No Remarks s s creation of temporary breeding habitats for diseases x Unlikely to be significant. such as those transmitted by mosquitoes and rodents?

, , u accident risks associated with increased vehicular x Multiple construction vehicles will use the traffic, leading to accidental spills of toxic materials? existing roads to transport materials. Increased traffic flow may result to increased accidents if not properly mitigated. w w increased noise and air pollution resulting from traffic x Increased noise and air pollution are volume? anticipated as a result of increased traffic volume and higher speed of vehicles. u u increased risk of water pollution from oil, grease and x There is a potential for increased risk of fuel spills, and other matenals from vehicles using the water pollution due to spills, especially road? during prolect construction.

a a social conflicts if workers from other regions or x No social conflict is expected. Local countries are hired? workforce will be engaged for the prolect.

w w large population influx during project construction and x Unlikely to be an issue as most workers operation that causes increased burden on social will be local hires or will be using infrastructure and services (such as water supply and accommodation camps. sanitation systems)?

a a risks to community health and safety due to the x There is a potential for health and safety transport, storage, and use and/or disposal of materia!s issues due to the construction activities such as explosives, fuel and other chemicals during (i.e.storage/ disposal of materials) if construction and operation? mitigation measures are not implemented.

w w community safety risks due to both accidental and x Unlikely, assuming that full design natural causes, especially where th.e structural assessment is carried out for the prolect to elements or components of the prolect are accessible to ensure such risks are eliminated. members of the affected community or where their failure could result in in3ury to the community throughout project construction, operation and decommissioriing. ROADS AND HIGHWAYS page 1 of 1

A Checklist for Preliminary Climate Risk Screening

Country/Project Title: GEO Batumi Bypass Road Project Major Change Sector: Transport

Division/Department: CWTC/CWRD

Screening Questions Score Remarks Location and Is siting and/or routing of the project (or its components) likely to be o Project areas (Poti Bridge and Design of affected by climate conditions including extreme weather- related Bakukrtsikhe-Tsnori road) have project events such as floods, droughts, storms, landslides? low to medium flood and Would the project design (e.g. the clearance for bridges) need to 1 landslide risk (Appendix A). consider any hydro- meteorological parameters (e.g., sea- level, peak river flow, reliable water level, peak wind speed etc.)? Materials and Would weather, current and likely future climate conditions (e.g. o Maintenance prevailing humidity level, temperature contrast between hot summer days and cold winter days, exposure to wind and humidity hydro- meteorological parameters likely affect the selection of proJect inputs over the life of project outputs (e.g. construction material)? Would weather, current and likely future climate conditions, and o Appropriate site selection and related extreme events likely affect the maintenance (scheduling and detailed design of road cost) of project output(s)? infrastructure can mitigate Performance of Would weather/climate conditions, and related extreme events I risks due to extreme weather project outputs likely affect the performance (e.g. annual power production) of events. project output(s) (e.g. hydro- power generation facilities) throughout their design life time? Options for answers and corresponding score are provided below: Response Score Not Likely o Likely 1 Very Likely 2 Responses when added that provide a score of 0 will be considered project. If adding all responses will result to a score of 1- 4 and that no score of 2 was given to any single response, the prolect will be assigned a medium risk category. A total score of 5 or more (which include providing a score of 1 in all responses) or a 2 in any single response, will be categorized as prolect. Result of Initial Screening (Low, Medium, High): Medium

Other Comments: Climate change considerations have already been incorporated into the feasibility study of proposed civil works through upwards adjustment of key climate-related design variables (e.g. 1-day max precipitation) by 1 0-20'/o. This is consistent with approach taken for GEO Kvesheti-Kobi Road prolect.

Prepared by: Nathan Rive, CWER Date: 3'l May 2C)19 Appendix A

Bakurtsikhe-Tsnori Road Hazard Map

fi! ' -..i{

lal8)

Legend: Landslide risk (green) and flood risk (blue) gradients.

Poti Hazard Map

Source: UNEP PREVIEW data platform INVOLUNT ARY RESETTLEMENT IMPACT CATEGORIZATION

Date: 14 Jun 2019

B. Project Data

Country/Project No./Project Title : L3520-GEO: Batumi Bypass Road Project

Department/ Division : CWTC Processing Stage Modality : ProjectLoan [X ] Project Loan [ ] Program Loan [ ] Financial Intermediary [ ] General Corporate Finance [ [ ] Sector Loan [ ] MFF [ ] Emergency Assistance [ ] Grant [ [ ] Other financing modalities:

C. Involuntary Resettlement Category

[ ] New [ X ] Recategorization - Previous Category [ A ]

[ , Category A ', € Category B ', € Category C ', € Category Fl D. Comments Project Team Comments: . SDES Comments:

The proposed Project comprises the construction of the (i) 13.2 km Batumi Bypass, which tncludes five tunnels, 15 bridges and 4 interchanges - 909 AH/ 454ei AP, 562 AH severely affected, 369 AH physically relocated, 276 AH vulnerable. Additional scope to be added in 2CN 9 includes; (ii) 2.5 km road section (Lot 2, Stage I ) in Poti- Grigoleti, which includes a multi- span bridge over the Rioni River and its connection with the exisUng highway on both sides of the river - 12 AH/59 AP, I1 AH severely affected, no physically displaced AH, 2 AH vulnerable; and (iii) 16 km Bakurtsikhe- Tsnori road - 720 AH/1 787 AP, 615 severely affected AH, no physically displaced AH, 28 vulnerable AH. (i) is nearing compleUon of LARP implementation while (ii) and (iii) are proposed with funding from savings. Overall prolect category therefore remains A.

E. Approval

- Proposed by: Shanny Campbell _, -- -.__ _.- Reviewed by:

Social Development Specialist, CWOD- PSG} Director, SDSS Date: 14 Jun 2016 Date:

nvoluntary Resettlement Impact Categorization Form Endorsedby: , Approvedby: Highly Compiex and Sensitive Dong Soo Pyo, Director, CWTC l / , Project Date:Drrector, cw'T'c ,, ] 0 u ( l, ChiefDate: Compliance Offlcer Involuntary Resettlement Impact Categorization Checklist

Remarks IProbable Involuntary Resettlement Effects 'Il Yes I -. iIKnNoowkn Involuntary Acquisition of Land { A total of 963 privately owned land 1. Will there be land acquisition? plots will need to be acquired in Batumi; 30 plots for Poti Bridge, and 916 plots for Bakurtsikhe - Tsnori. 1. Land will be acquired along the proposed (new and existing) road 12 . Is the site for land acquisition known? corridors. x The land is both privately and state 3. Is the ownership status and current usage of land to be owned. There is both registered and acquired known? non- registered land. Some non- registered land is legalizable The status of each land plot is known.

4. Will easement be utilized within an existing Right ofWay V / (ROW)?

5. Will there be loss of shelter and residential land due to land V / acquisition?

6. Will there be loss of agricultural and other productive assets V / Agricultural as well as commercial due to land acquisition? assets will be affected.

7. Will there be losses oF crops, trees, and fixed assets due to x Crops, trees and structures will be land acquisition? lost.

8. Will there be loss of businesses or enterprises due to land i acquisition?

9. Will there be loss of income sources and means of i Compensation for rehabilitation will be livelihoods due to land acquisition? provtded.

Involuntary restrictions on land use or on access to legally designated parks and protected areas l- 3 0. Will people lose access to natural resources, communal { facilities and services?

11. If land use is changed, will it have an adverse impact on ! social and economic activities?

{ I Information on Displaced Persons:

Any estimate of the likely number of persons that will be displaced by the Project? [ ] No [X ] Yes If yes, approximately how many There are 900 + 12 + 720 (= 1632) affected households across the 3 components, totaling 4546 + 59 + 1787 (= 6392) affected people. ,

Involuntary Resettlement Impact Categorization Form Are any of them poor, female - heads of households, or vulnerable to poverty risks? [ ] No [X ] Yes

Are any displaced persons from indigenous or ethnic minority groups? [X ] No [ ] Yes

Note: The project team may attach additional information on the project, as necessary.

Involuntary Resettlement Impact Categorization Form INDIGENOuS PEOPLES IMPACT CATEGORIZATION

Date: 14 Jun 2019

A. Instructions (i) The project team completes and submits the form to the Environment and Safeguards Division (RSES) for endorsement by RSES Director, and for approval by the Chief Compliance Officer (CCO). (ii) The classification of a prolect is a continuing process. If there is a change in the project components or/and site that may result in category change, the Sector Division submits a new form and requests for recategorization, and endorsement by RSES Director and by the CCO. The old form is attached for reference. (iii) The project team indicates if the project requires broad community support (BCS) of Indigenous Peoples communities. BCS is required when prolect activi(ies involve (a) commercial development of (he cultural resources and knowledge of indigenous peoples, (b) physical displacement from traditional or customary lands; and (c) commercial development of natural resources within customarylands under use that would impact the livelihoods or the cultural, ceremonial, or spiritual use that define the identity and community of indigenous peoples. (iv) In addition, the prolect team may propose in the comments section that the prolect is highly complex and sensitive (HCS), for approval by the CCO. HCS projects are a subset of category A prolects that ADB deems to be highly risky or contentious or involve serious and multidimensional and generally interrelated potential social and/or enwonmental impacts.

B. Project Data Country/Project No./Project Title : L3520-GEO: Batumi Bypass Road Project DepartmenU Division : CWTC Processing Stage Modality : ProjectLoan [X ] Prolect Loan [ ] Program Loan [ ] Financial Intermediary [ ] General Corporate Finance [ [ ] Sector Loan [ ] MFF [ ] Emergency Assistance [ ] Grant [ [ ] Other financing modalities:

C. Indigenous Peoples Category ______J_____]_;eg______[__X___l3Rqcatqgo_r3z54$n_-y- _ P_r_ey3ogs_C_aJory[_Q___l______

[ ] Category A i [ I Category B i [ X ] Category C i [ ] Category Fl

D. P rOJeCi requires iFle 5rOad commun!kV. suppori Of ( I Yes ( X ] N 0 affected Indigenous Peoples communities. E. Comments Project Team Comments: SDES Comments:

The proposed Project comprises the construction of the (i) 13.2 km Batumi Bypass, which includes five tunnels, 15 bridges and 4 interchanges. Malor change in 2019 adds: (ii) 2.5 km road section (Lot 2, Stage 1 ) in Poti-Grigoleti, which includes a bridge over the Rioni River and its connechon with the existing highway on both sides of the river; and (iii) 16 km Bakurtsikhe-Tsnori road. There are no indigenous people per the criteria defined in ADB's SPS 2009 throughout the prolect areas. Categorization with added scope therefore remains C. F. Approval Proposed by: Shanny Campbell..__,[L-4,? Reviewed by:

Endorsed by: (\l[" ' ./ Approved by: " > oDonq Soo Pyo 2 € hSegnhsyitivceomPrpojeexcta" Chief Compliance Officer i i Date:

ndigenous Peoples Categorization Form Indigenous Peoples Impact Screening Checklist

KEY CONCERNS NOT YES NO Remarks (Please provide elaborations KNOWN on the Remarks column)

A. Indigenous Peoples Identification

1. Are there socio- cultural groups present in or use the x project area who may be considered as "tribes" (hill tribes, schedules tribes, tribal peoples), "minorities" (ethnic or national minorities), or "indigenous communities" in the project area?

2. Are there national or local laws or policies as well as x anthropological researches/studies that consider these groups present in or using the project area as belonging to "ethnic minorities", scheduled tribes, tribal peoples, national minorities, or cultural communities?

3. Do such groups self- identify as being part of a distinct N/A social and cultural group?

4. Do such groups maintain collective attachments to N/A distinct habitats or ancestral (erritories and/or to the natural resources in these habitats and territories?

5. Do such groups maintain cultural, economic, social, N/A and political institutions distinct from the dominant society and culture?

6. Do such groups speak a distinct language or dialect? N/A

7. Has such groups been historically, socially and N/A economically marginalized, disempowered, excluded, and/or discriminated against?

8. Are such groups represented as "lndigenous Peoples" N/A or as "ethnic minorities" or "scheduled tribes" or "tribal populations" in any formal decision- making bodies at the national or local levels?

B. Identification of Potential Impacts

9. Will the project directly or indirectly benefit or target x Indigenous Peoples?

10. Will the project directly or indirectly affect Indigenous Peoples' traditional socio-cultural and belief prac5ces? (e.g. child- rearing, health, education, arts, and I C)OVemanCe)

11. Will the project affect the livelihood systems of x Indigenous Peoples? (e.g., food production system, ' natural resource management, crafts and trade, employment status)

Indigenous Peoples Categorization Form KEY CONCERNS NOT YES NO Remarks (Please provide elaborations KNOWN on the Remarks column)

12. Will the project be in an area (land or territory) x occupied, owned, or used by Indigenous Peoples, and/or claimed as ancestral domain?

C. Identification of Special Requirements Will the project activities include:

13. Commercial development of the cultural resources x and knowledge oF Indigenous Peoples?

14. Physical displacement from traditional or customary x lands?

15, Commercial development of natural resources (such x as minerals, hydrocarbons, forests, water, hunting or fishing grounds) within customary lands under use that would impact the livelihoods or the cultural, ceremonial, spiritual uses that define the identity and community oF Indigenous Peoples?

16. Establishing legal recognition of rights to lands and x territories that are traditionally owned or customarily used, occupied or claimed by indigenous peoples ?

17. Acquisition of lands that are traditionally owned or x customarily used, occupied or claimed by indigenous peoples?

D. Anticipated project impacts on Indigenous Peop!es

Project component/ Anticipated positive effect Anticipated negative effect activity/ output

(i) 14.3 km of a new two- lane bypass N/A N/A road skirting Batumi; and

(ii) routine and periodic maintenance for N/A N/A about 200 km oF international and secondary roads.

iii) 2.5 km road section (Lot 2, Stage 1 ) N/A N/A in Poti- Grigoleti, which includes a multi- span bridge over the Rioni River and its connecUon with the existing highway on both sides of the river;

iv) 16 km Bakurtsikhe- Tsnori road. N/A N/A Note: The project team may attach additional information on the project, as necessary.

ndigenous Peoples Categorization Form