Uzbekistan Land Improvement Project

Environmental Monitoring Report

Quarterly Report December, 2012

UZB: Land Improvement Project ADB Loan 2245/2246(SF)

Prepared by Rural Restructuring Agency under Ministry of Agriculture and Water Resources for the Republic of Uzbekistan and the Asian Development Bank

CURRENCY EQUIVALENTS (as of 31 December 2012)

Currency unit – Uzbek Soums (UZS) UZS1.00 = $0.0005040 $1.00 = UZS1984.00

ABBREVIATIONS ADB Asian Development Bank BoQ Bill of quantities DSRI Department of soil reclamation and irrigation EA Executing agency EIA Environmental impact assessment EMP Environmental management plan GOU The Government of Uzbekistan HGLRE Hydro-geological land reclamation expedition I&D Irrigation and drainage ICB International competitive bidding IEE Initial environmental examination ISA Irrigation system administration LIP Land improvement project MAWR Ministry of agriculture and water resources NCB National competitive biddings PIU Project implementation unit PMO Project management office PPTA Project preparatory technical assistance RRA Rural Restructuring Agency SANIIRI Central Asian scientific irrigation research institute “V.D. Djurina” SCNP State committee for nature protection WCA Water consumer associations WUA Water user associations

{GLOSSARY} Project Land Improvement Project unless otherwise stated Demonstration Areas Area of demonstration plots in the project area overall 1500 ha (in average 500 ha per province),

NOTE (i) In this report, "$" refers to US dollars. unless otherwise stated.

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.

I. INTRODUCTION

1. The Government of Uzbekistan (GOU), with assistance from the Asian Development Bank (ADB), is implementing the Land Improvement Project (the Project) in the Central regions of Uzbekistan. The project aims at restoring land quality and land productivity. The project will increase agricultural and ecological productivity in the selected project areas and provide farmers with opportunities for sustained and increased incomes.

2. The project was formulated on the output of a project preparatory technical assistance (PPTA). The project was approved on 24 July 2006 and became effective on 09 November 2007. Physical completion is scheduled on 30 September 2014 and the loan closing date is March 31, 2015. MAWR is the executing agency (EA) of the project.

1.1. Objective and Scope of Environmental Monitoring Report

3. The Environmental Monitoring Report was prepared to provide information on the progress of implementing the Environmental Management Plan (EMP) and to evaluate the implementation of EMP for necessary improvement if needed. This report was also prepared to comply with the loan covenant as described in the loan document agreed between The Government of Uzbekistan and Asian Development Bank.

4. The report covers only the monitoring of implementation of EMP for Rehabilitation of Demonstration Areas and Primary and Inter-farm Collector Drainage in the project areas located in Kashkadarya, Bukhara, and Navoi. The report is based on findings recorded by the supervision consultant in its quarterly progress report on the monitoring of environmental impacts. The report covers the period of January 2012 to December 2012.

1.2. Project Description

5. The Project addresses the major problems of soil salinity and low groundwater levels on 161,900 ha of irrigated land in nine districts of the provinces of Bukhara, Navoi, and Kashkadarya. The desired impact of the Project is increased income of farmers in the project area, covering 161,900 ha in nine (9) districts of the provinces of Bukhara, Navoi, and Kashkadarya. The project area faces major problems of soil salinity and low groundwater levels. The project’s outcome would be improved quality and sustainable productivity of land, leading to higher crop yields and enhanced ecological sustainability in the project areas. The intended outcome will be produced through the following outputs: (i) land and agricultural improvements through establishment of three demonstration farms that showcase land reclamation and innovative on-farm technologies and farm practices, initially to be implemented through the scientific institutions, and subsequently with increased involvement of the private sector; (ii) strengthening of the capacity of land and water management institutions on efficient irrigation management and delivery, water pricing, and financial and management training; (iii) rehabilitation of land management infrastructure; and (iv) implementation of policy reforms that enhance farmer incentives to become productive and invest on sustainable land and water management. Quality outputs will be delivered in a timely and effective manner through an efficient project management office (PMO). Project scope is described in Schedule 1, Loan Agreements 2245/2246(SF)-UZB and summarized in three Project components and Project Management:

6. Component 1: Land and Agricultural Improvement. Three demonstration farms have been established, one in each province, to promote innovative on-farm technologies and demonstrate enhanced agronomic practices (for example crop rotation and minimum tillage to reduce inputs and increase soil fertility, and integrated pest management).

7. The RRA arranged following three NCB civil works contracts, i.e.

(a) Date of publication: 06 January 2010 (b) Deadline for submission of bids: 1100hrs (Tashkent time) on 09 February 2010 (c) Contract LIP/W/NCB/01: Rehabilitation of Demonstration Farm Area, WUA A. Navoi, Guzar District, Kashkadarya province;

(d) Contract LIP/W/NCB/02: Rehabilitation of Demonstration Farm Area, WUA Gulistan-Namgani, Jondor District, Bukhara province; (e) Contract LIP/W/NCB/03: Rehabilitation of Demonstration Farm Area, WUA Oston-Mirob, Navbakhor District, Navoi province.

8. Following the three aforementioned contracts received endorsement from ADB in time for RRA to conclude and sign the following contracts on 31 March 2010: ▶ LIP/W/NCB/01: LLC “Eskiankhorkanalkurilish” JSC, 2 Eskianhor Str., Karshi city, Uzbekistan; ▶ LIP/W/NCB/02: Enterprise Kogonsuvkurilish, 39, Khazarati Kuchkor Str., Bukhara city, Uzbekistan; ▶ LIP/W/NCB/03: JSC Navoisuvkurilish LLC, 32, S.Ayniy Str., Navoi city, Uzbekistan.

9. The works primarily comprise (i) earthwork on including sediment removal from canals and drains, and safe disposal of excavated material by levelling and transportation to spoil banks or landfill areas, (ii) agronomic measures which consist of land levelling, deep ripping, and leaching in one case, and (iii) rehabilitation and construction of structures on the inter-farm drainage network and the on-farm irrigation and drainage networks.

10. All three NCB contracts on demonstration farms were successfully completed. Below completion dates for each contract: ▶ LIP/W/NCB/01:30 June 2011; ▶ LIP/W/NCB/02:24 June 2011; ▶ LIP/W/NCB/03:23 August 2011.

11. Component 2: Capacity Building of Land and Water Management Institutions. 11 training modules were implemented for 199 participants from various provincial and district organizations and offices. The modules included one on gender, three on agronomy, three on irrigation and water management, one on integrated pest management, and three on commonly-used computer software. Analyses and results of questionnaire indicate that trainees are interested in further similar training activities, with hands-on trainings and farmers field schools being preferred methodologies. Detailed plans have been prepared for capacity building activities for the remaining implementation period.

12. A training plan has been prepared to foster and promote sustainability of the WUAs which will aim at (i) developing the capacity of existing institutions and staff to assist and guide farmers and other grassroots water users; and (ii) develop the capacity of WUA/WCA representatives and their members. Trainings were conducted for trainers from PIUs, specialist from ISAs, and Rayselvodkhozs during the last week of August 2010 for following four courses (i) formation and development of WUAs, (ii) financial management in a WUS, (iii) operation and management of IDIs, and (iv) on-farm water management. These trainers will further train the technical staff, and members of the project WUA Councils and Commissions through 1-day and 5-day training courses on the same subjects.

13. Component 3: Rehabilitation of Land Management Infrastructure. This component involves rehabilitation of (i) primary and inter-farm collector drainage works, and (ii) on-farm irrigation and drainage infrastructure for water delivery and drainage disposal. The implementation of these two activities is being undertaken separately.

14. Primary and Inter-farm Drainage Infrastructure Rehabilitation: The bidding process, preceded in according with ADB regulations, for all nine inter-farm drainage rehabilitation contracts was completed in 2011. For all contracts was received “no-objection” from ADB. All nine ICB contracts with an aggregate amount of US$45.588 million (excluding duties and taxes) have been awarded and are being executed.

15. Following the ICB contracts received endorsement from ADB in time for RRA to conclude and sign the following contracts: ▶ LIP-ICB-301-301: “Qurilish Industriya Hajmli Uy-Joy” LLC Navoi Street 16A, Tashkent , Uzbekistan; ▶ LIP-ICB-302-302: “Kogonsuvqurilish” LLC, Bukhara Province, Kogon district, Tuti kunda KFY , Uzbekistan;

▶ LIP-ICB-303-303: JSC “Amubukharakanalkurilish”, B. Naqshbandi Street 299, Bukhara City , Uzbekistan; ▶ LIP-ICB-304-304: LLC “HisorakgidroqurilisIpak Yuli Str.186, Shahrisabj , Uzbekistan; ▶ LIP-ICB-305-305: “Eskianhorkanalqurilish” LLC. Eskianhor Str.2, Karshi city , Uzbekistan; ▶ LIP-ICB-306-306: Private Company “Nurbek” A. Temur Street 37, Akdarya, Samarkand, Uzbekistan; ▶ LIP-ICB-307-307: LLC, ICC “Jayhun”, 34 Sh. Rustaveli Str., Samarkand, Uzbekistan; ▶ LIP-ICB-309-309: LLC "Navoisuvkurilish" 32, S.Ayniy Str., Navoi city LLC "Navoisuvkurilish", Uzbekistan; ▶ LIP-ICB-310-310: LLC “ 2-son MKK” , 22-Avtobaza, Ibn-Sino, Navoi City, Uzbekistan;

16. The works primarily comprise (i) earthwork on including sediment removal from primary and inter- farm collectors and drains, and safe disposal of excavated material by levelling and transportation to spoil banks or landfill areas, (ii) rehabilitation and construction of structures.

17. Rehabilitation of On-farm Irrigation and Drainage Infrastructure: According to revised feasibility studies approved by the Government all rehabilitation works for on-farm irrigation and drainage infrastructures will be will be implemented by the Amelioration Fond (on-farm drainage infrastructures) and beneficiaries (on-farm irrigation infrastructures).

1.3. Methodology Used For Environmental Monitoring

18. The Environment Monitoring Report was prepared based on the relevant information/ data from the PMU office, desk review of the bid documents and the Environment Management Plans, and time to time monitoring and observation of civil works and environmental safeguards implementation in the field on other. Construction contract for all rehabilitation works have been awarded. The Progress on contract completion, date of signing on each contract and firms responsible for civil work construction is presented in Table 1.

Table 1: Contract Package for Rehabilitation Works in the Project Area Contract(s) Province Start Date Name of the Firm(s) Progress on Remarks (if it is Contract needed) Completion Contract Package for Rehabilitation of Demonstration Areas Contract Kashkada Apr 24, 2010 LLC “Eskianhorkanalqurilish” 100% All works completed on 30 LIP/W/NCB/01 rya June 2011 Contract Buhkara Apr 24, 2010 Enterprise “Kogonsuvkurilish” 100% All works completed on 24 LIP/W/NCB/02 June 2011 Contract Navoi Apr 24, 2010 JSC “Navoisuvkurilish” 100% All works completed on 23 LIP/W/NCB/03 August 2011 Contract Package for Rehabilitation of Primary and Inter-farm Drainage Infrastructure

Contract LIP- Buhkara Oct 19, 2011 “Qurilish Industriya Hajmli Uy- 73% ICB-301-301 Joy” LLC Contract LIP- Buhkara Dec 17, 2012 “Kogonsuvqurilish” LLC - Work just started ICB-302-302 Contract LIP- Buhkara Jun 22, 2012 JSC 52% ICB-303-303 “Amubukharakanalkurilish” Contract LIP- Kashkada Mar 25, 2011 LLC “HisorakgidroqurilisIpak 85% ICB-304-304 rya Contract LIP- Kashkada Dec 17, 2012 “Eskianhorkanalqurilish” LLC - Work just started ICB-305-305 rya Contract LIP- Kashkada Jun 8, 2011 Private Company “Nurbek” 62% ICB-306-306 rya Contract LIP- Navoi Jan 13, 2011 LLC, ICC “Jayhun” 36% ICB-307-307

Contract(s) Province Start Date Name of the Firm(s) Progress on Remarks (if it is Contract needed) Completion Contract Package for Rehabilitation of Demonstration Areas Contract LIP- Navoi Feb 21, 2011 LLC "Navoisuvkurilish" 100% Whole works is completed ICB-309-309 with 14 days delay. Contract LIP- Navoi Jul 11, 2011 LLC “ 2-son MKK” 77% ICB-310-310

19. Start Date for NCB contract has been the 24th April 2010 and for ICB contracts starts from January 2011 (Contract LIP ICB-307-307) to December 2012 (Contracts LIP ICB-302-302 and LIP ICB-305-305). Duration of contracts varies between 14 and 32 calendar months. Table 2 lists pertinent details for the primary works to be executed and delivered by ICB contractors. Overall the earthwork delivered by the nine contractors equals 30 mln. m3, total length to be rehabilitated primary and inter-farm collectors equals 1445 km, more than 500 number of structures to be rehabilitated (or constructed).

Table 2: Progress of work for 9 ICB contracts – status 31 December 2012 Beneficiaries Area Collectors Length Earthworks Structures (1000 ha) (km) (1000 m3) (No.) Contracts Overall Executed Overall Executed Overall Executed Overall Executed Total for Project Area 169.10 103.21 1,445.22 938.95 30,015.11 17,649.91 513 228 Total for Bukhara 48.80 25.25 630.60 431.80 14,656.82 9,114.52 203 74 Province LIP-ICB-301-301 12.00 10.25 200.40 193.90 4,645.95 4,376.37 41 37 LIP-ICB-302-302 15.30 - 146.00 1.50 4,123.37 142.70 84 - LIP-ICB-303-303 21.50 15.00 284.20 236.40 5,887.50 4,595.45 78 37 Total for Karshi 74.00 44.67 485.55 253.70 9,018.09 3,420.09 154 44 Province LIP-ICB-304-304 37.09 32.61 161.32 151.80 2,586.76 2,294.02 33 33 LIP-ICB-305-305 22.56 - 223.00 8.00 5,131.78 104.43 100 - LIP-ICB-306-306 14.36 12.06 101.23 93.90 1,299.55 1,021.64 21 11 Total for Navoi Province 46.30 33.29 329.07 253.45 6,340.20 5,115.30 156 110 LIP-ICB-307-307 22.00 11.01 155.32 94.50 2,400.00 1,544.00 22 9 LIP-ICB-309-309 5.00 5.00 58.20 58.20 1,100.00 1,100.00 9 9 LIP-ICB-310-310 19.30 17.28 115.55 100.75 2,840.20 2,471.30 125 92

II. ENVIRONMENTAL SAFEGUARD DURING PROJECT PREPARATION

2.1. The Initial Environmental Examination.

20. The IEE was performed under the auspicious of the ADB and in cooperation with agencies of the GOU, primarily the Ministry of Agriculture and Water Resources (MAWR), Hydro-geological Land Reclamation Expedition (HGLRE), Department of Soil Reclamation and Irrigation (DSRI), and the State Committee for Nature Protection (SCNP). In 2005, an International Environmental Specialist was mobilized for one person-month. This Specialist worked with one (1) Uzbek National Environmental Specialist. The scope of this investigation was the identification and analysis of the potential negative and positive environmental effects of the proposed Land Improvement Project (Project) within the target WUA managed farms in the oblasts of Navoi, Bukhara, and Kashkadarya. The emphasis is on improving agricultural production by improving land management.

21. The IEE determined if there will be any potential environmental impacts from the proposed Project’s plans for restoring land quality and productivity in order to increase agricultural productivity in the selected areas by: - Improving soil quality through crop rotations, revised crop calendars, and managed applications of chemicals; - Reducing the quantity of irrigation water used; and - Improving the quality of drainage water

22. The project is associated primarily with irrigated agriculture and land improvement. The environmental category according to the Bank’s classification is B, where some environmental impacts may occur and an IEE is to be undertaken. The Initial Environmental Examination (IEE) was conducted in accordance with the ADB’s Environmental Assessment Guidelines (2003). The environmental screening process followed the checklist format for Irrigation projects set forth in the Asian Development Bank’s Environmental Guidelines for Selected Agricultural and Natural Resources Development Projects (1996). Should the IEE conclude that no significant environmental impacts are likely to result; the IEE serves as the completed Environmental Impact Assessment (EIA) for the project.

23. According to the National Biodiversity Conservation Strategy and Action Plan (approved by the President in 1998) the main threats to biodiversity in Uzbekistan are habitat loss and major habitat alteration. The following three groups of human-activity factors have the strongest impact on natural ecosystems in Uzbekistan:  Irrigated agriculture development clearance/disturbance, agro-chemicals, salinization, changed hydrological factors);  Unsustainable use of natural territories for pastures; and  Mining and energy industries.

24. The most impacted ecosystems belong to:  Lowland territories;  Flood-lands and riverine areas being developed for irrigated agriculture;  Wetlands; and Aral Sea region.

25. Based on the environmental screening of project components and interventions using ADB Environmental Assessment Guidelines (2003), the Project activities are assessed as shown in Table 3. Potential impacts were assessed using the checklist provided for irrigation projects in the ADB Guidelines for selected Agricultural and Natural Resources Development Projects.

Table 3: Environmental Impacts of Output Related Activities by Project Component Potential Environmental Impacts Output-related activities by project component L D C O Component 1 Model Farms Improved WUA Water Management No No No No Improved Agronomic Practices No No No No Land Levelling No No No No Improved Land Improvement/Reclamation No No No No Practices Agriculture Extension Activities No No No No Integrated Pest Management No No No No Social Development Activities No No No No Component 2 Improved Basin Wide Water Management No No No No Improved WUA Management No No No No Component 3 Rehabilitation & Construction of Irrigation & No No Yes No Drainage Networks and associated infrastructure Improved WUA Water Management No No No No Improved WUA Drainage Management No No No No Component 4 Project Management No No No No Project Monitoring and Evaluation No No No No L = Project location; D = Project design; C = Project construction; O = Project operation; No = no adverse environmental impacts; Yes = potential adverse environmental impacts (to be addressed by mitigation measures)

2.2. Preparation of Bidding Document 8

26. Bidding Document for Procurement of Works has been prepared by the Rural Restructuring Agency under the Ministry of Agriculture and Water Resources represented and is based on the Standard Bidding Document for the Procurement of Works - Small Contracts (SBD Works-Small) issued by the Asian Development Bank in July 2008. ADB’s SBD Works-Small has the structure and the provisions of the Master Procurement Document entitled “Bidding Documents for the Procurement of Works-Small Contracts”, prepared by multilateral development banks and other public international financial institutions except where ADB-specific considerations have required a change.”

27. Bidding Documents comprise: - Volume 1 – Bidding Document with Supplementary Appendix 1 (IEE) - Volume 2 – Standard specifications - Volume 3 - Drawings

28. The Initial Environmental Examination (IEE) covers the information of potential environmental impacts and the proposed mitigation measure, institutional requirements and costed environmental monitoring program in the bidding documents. In addition to the IEE that was provided to the contractors, the Appendix 1 of the bidding document includes also some detailed instructions on subject that highlight in the IEE and environmental monitoring program on the followings: (i) Evaluation of the need for an environmental impact assessment; (ii) Potential environmental impacts, possible mitigation enhancement measures and responsible agencies; (iii) Environmental assessment requirements of SCNP;

29. Necessary budget has been allocated particular for Category ‘B’ projects to handle environmental problems. Also all contractors’ budget includes items of implementation of environmental management plan: formulation and implementation included in the contract document.

30. The contract document for the contractors (Clause P-25 of Preamble to the BoQ and Clause GCC 63 particular conditions of contract) includes details terms and conditions regarding the safeguard issues and implementation of the Environmental Management and Monitoring Plans that has to be adhered and implement by the Contractors.

2.3. Obtaining Government Clearance

31. Materials of the IEE from rehabilitation of primary and inter-farm drainage systems and on-farm I&D infrastructure under LIP in Kyzyltepa, Khatyrchy and Navbahor districts of Navoi province, in Jondor, Bukhara and Romitan districts of Bukhara province, in Kamashi, Guzar and Kasan districts of Kashkadarya province as well as in three demonstration farm areas Oston-Mirob WUA (Navoi province), Guliston-Namgoni WUA (Bukhara province), A. Navoi WUA (Kashkadarya province) have been submitted to the State Environmental Expertise.

32. Conclusion and approval of the SCNP was obtained for the draft IEE for the Land Improvement Project to be implemented in Bukhara, Navoi, and Kashkadarya Provinces in October 2009. See Appendix A.

33. According to the Conclusion of the SCNP, Bukhara, Navoi, and Kashkadarya provincial departments of the Nature Protection Committee shall monitor and control the observance of the environmental law during implementation of rehabilitation works on the collector and drain networks aimed at improvement of irrigated lands.

III. IMPLEMENTATION OF ENVIRONMENTAL SAFEGUARD DURING CONSTRUCTION

34. Almost all construction fields are located far away from the populated area. No such environmental negative impacts are created from the construction works.

35. Establishment of Sites Offices. The site offices and construction camp were established with due considerations to environmental aspects as well as smooth functioning and easy access to entire project.

36. Mobilization of Resources. The Contractors have mobilized manpower as well as equipments to the site and initiated the work.

37. No dust generation problem faced in the site. Mainly Excavators and Bulldozers are working in the field. Noise of these types of machines is tolerable.

IV. MONITORING ENVIRONMENTAL QUALITY

38. To achieve the Project objective and to verifiably demonstrate the success of improved crop production and land management techniques, the need to carry out a soil survey was reconfirmed during field assessments in April-May 2009. The RRA was advised about the necessity for a soil survey of demonstration farm areas to assess soil salinity, soil nutrient content and the soil-water-physical properties of soils. Necessary technical details for initiation of soil nutrient surveys were prepared. The PMO, using the Loan Consultant prepared draft RFQ and TOR concluded a contract with SANIIRI (also known as Central Asian Scientific Irrigation Research Institute “V.D. Djurina”) in Tashkent for executing a soil nutrient survey of demonstration farm areas. Basic sampling parameters for the three demonstration areas were as follows: ▶ Soil nutrient content 1/ 4ha ▶ Total samples for soil nutrient content 125/ 500ha ▶ Soil salinity 1/ 20-25ha ▶ Total samples for soil salinity assessment 25/ 500ha ▶ Depth of auger borings typically 0.30m 1/5th of all borings 0.50m ▶ Soil pits to depth of 2.5m to 3.0m 3/ 500ha

39. The contract commenced on 11 September 2009 and a scheduled duration of six months, giving 10 March 2010 as the completion date. By early October 2009 all field sampling exercises were completed and the contractually required Field Survey Report was prepared and submitted to the RRA.

Table 4: Summary of Soil Sampling at Demonstration Farms Areas – September 2009

No Demonstration farm Total area Irrigated Agro-chemicals Salinity area Locations Samples Locations Samples Ha ha number number 1/ha number number density 1 2 3 4 5 6 7 8 9 10 WUA Guliston- 1 708.8 511.5 128 153 3.3ha 21 105 4.9ha Namgoni, Bukhara WUA A Navoi, 2 713.5 517.3 125 150 3.4ha 20 100 5.2ha Kashkadarya WUA Oston Mirob, 3 507.2 498.2 121 146 3.4ha 20 100 5.0ha Navoi TOTAL 1,932.5 1,531.0 374 449 3.4ha 61 305 5.0ha Source: Consultant, October 2009

40. Throughout the contract period the Loan Consultant’s national Agronomist closely collaborated with the SANIIRI survey team, providing guidance and supervision for all field sampling activities. Field survey work commenced with collection of soil samples for analysis and monitoring of nutrients prior to seeding winter wheat for the 2009/10 season. Following completion of the field exercise at the start of October 2009, the contractor prepared and submitted an interim report to the Client via the Loan Consultant in mid-October 2009.

Figure 1. Soil pit - reviewing the profile 41. Following samples were taken by regional divisions of Hydro-geological Meliorative Expedition from the controlling sites of the three demonstration farms. See Table 5.

Table 5. Results of the samples, taken from the demonstration farms Demonstration farm Control point April 2010 December 2010 Salinity: g/ liter Salinity: g/ liter Sanjar Said 5.16 5.04 Ergash Rahmat 3.93 3.82 Rizvon Saidbobo 4.36 4.31 WUA Guliston-Namgoni, Bukhara Shukur Behruz Bobir 4.16 4.05 Normon 4.08 4.01 Shahzod Zoir ugli 5.76 5.52 No 44 3.04 2.45 No 51 3.38 1.61 No 56 4.06 3.42 WUA A Navoi, Kashkadarya No 57 3.57 2.12 No 3 3.56 3.92 No 4 3.66 4.03 No 6 2.83 2.77 No 53 2.75 2.54 WUA Oston Mirob, Navoi No 2 2.31 2.18 No 54 2.31 2.08 No 52 2.51 2.34 Source: Hydro-geological Ameliorative Expedition

42. Following the contract document for the contractors (Clause P-25 of Preamble to the BoQ and Clause GCC 63 particular conditions of contract) on implementation of the Environmental Management and Monitoring Plans it is being monitored Land Salinity level (Table 7) and Underground Water level (Table 6) changes in the beneficiary area. Collected data shows positive impact in reducing high salinity level lands and decreasing in ground water level because of rehabilitation of primary and inter-farm collectors in the project area.

Table 6. Ground water level changes in project area Months Name of districts and regions Years June December Navoiy region 2010 1,93 2,15 Navbahor district 2011 2,06 2,48 2012 2,07 2,58 2010 1,85 2,06 Hatyrchi district 2011 1,87 2,07 2012 1,89 2,16

2010 1,57 2,03 Kyzyltepa district 2011 1,59 2,06 2012 1,60 2,26 Bukhara region 2010 2,23 2,33 Jondor district 2011 2,27 2,48 2012 2,50 2,72 2010 2,38 2,59 Bukhara district 2011 2,45 2,70 2012 2,66 2,85 2010 2,29 2,68 Romitan district 2011 2,37 2,80 2012 2,54 2,97 Kashkadarya region 2010 3,08 3,55 Guzar district 2011 3,42 3,82 2012 3,11 3,51 2010 2,55 3,15 Kamashi district 2011 2,88 3,24 2012 2,64 3,08 2010 2,77 3,33 Koson district 2011 3,09 3,56 2012 3,01 3,47

Table 7. Land salinity level changes in project area

Beneficiary area

Including Name of districts Total № and No saline Weak saline Medium saline Highly saline regions 2007 2012 2007 2012 2007 2012 2007 2012 2007 2012 Th. th. ha th. ha % th. ha % th. ha % th. ha % th. Ha % th. Ha % th. ha % th. ha % ha Navoiy 1 45,9 45,6 8,1 18 9,6 21 25,6 56 29,9 65 9,3 20 5,4 12 2,9 6 0,7 2 region Navbahor 1.1. 19,8 19,8 0,0 0 0,7 4 11,4 58 14,4 73 6,4 32 4,2 21 2,0 10 0,5 3 district Hatyrchi 1.2. 22,2 21,9 8,1 36 8,8 40 12,3 55 12,5 57 1,4 6 0,6 3 0,5 2 0,1 1 district Kyzyltepa 1.3. 3,9 3,9 0,0 0 0,1 3 1,9 50 3,0 78 1,5 39 0,7 17 0,4 11 0,1 2 district Bukhara 2 42,0 42,0 3,0 7 3,8 9 24,3 58 25,4 61 12,5 30 10,7 25 2,2 5 2,1 5 region Jondor 2.1. 32,0 32,0 2,2 7 2,6 8 19,2 60 19,5 61 8,7 27 8,0 25 1,9 6 1,9 6 district Bukhara 2.2. 4,0 4,0 0,4 9 0,4 11 1,9 49 2,6 64 1,6 39 0,9 23 0,2 4 0,1 2 district Romitan 2.3. 6,0 6,0 0,4 6 0,8 14 3,2 53 3,4 56 2,3 39 1,7 28 0,1 2 0,1 2 district Kashkadar 3 74,0 74,0 23,8 32 27,2 37 32,0 43 33,7 46 14,1 19 10,5 14 4,2 6 2,7 4 ya region Guzar 3.1. 16,7 16,7 4,2 25 5,1 31 8,2 49 8,7 52 3,6 22 2,6 15 0,7 4 0,4 2 district Kamashi 3.2. 20,4 20,4 8,4 41 9,0 44 7,2 35 7,8 38 3,8 19 2,9 14 1,0 5 0,7 3 district Koson 3.3. 36,9 36,9 11,2 30 13,1 35 16,6 45 17,2 47 6,6 18 5,0 13 2,5 7 1,6 4 district TOTAL 161,9 161,6 34,8 22 40,7 25 82,0 51 89,0 55 35,9 22 26,5 16 9,2 6 5,4 3

V. INSTITUTIONAL ARRANGEMENT and RESOURCE ALLOCATION

5.1. Institutional Arrangement.

43. The Project Management Office is assisted by 3 Person-Month International Environmental Consultant (M&E Specialist (Environment)) and 8 Person-month National Consultants M&E Specialist (Environment)).

44. International Environmental Consultant (M&E Specialist (Environment)) WHITINGTON, Timothy was started his input from 7 June 2009 and has used up to date 1.33 man-months of his total 3 man-month input. During his input was prepared TN-11: Environmental Monitoring Program (submitted to the Client on 8 of February 2010.

45. National Environmental Consultants (M&E Specialist (Environment)) FRANK, Larisa and LIMANKINA, Natalya were started their input 1 June 2009 and have used up to date 8 man-months of .their total input of 8 man-months. During their input were prepared and passed through examination by National Committee of Nature Protection of Uzbekistan two reports:

- Draft Initial Environmental Evaluation – Bukhara and Navoi Province, Tashkent, July 2009 / was submitted to the Client on 4 August 2009; and

- Draft Initial Environmental Evaluation – Kashkadarya Province, Tashkent, July 2009 / was submitted to the Client on 4 August 2009.

46. All report are available in the Clients office both Russian and English versions.

5.2. Resource Allocation.

There were no fund has been spent to mitigate the impacts described in the section 3.

VI. CONCLUSION AND RECOMMENDATIONS

47. Under the Project, it is envisaged during the environmental monitoring that:

48. There were no serious environmental problem identified at this early construction works especially on establishment of site offices, construction camps, mobilization of resources, and land clearing. No mitigation measures as stated in the EMP have been implemented.

49. For three demonstration farm areas Oston-Mirob WUA (Navoi province), Guliston-Namgoni WUA (Bukhara province), A. Navoi WUA (Kashkadarya province) and nine ICB contract in the project area there were no environmental problems.

APPENDIX A

Environmental Impact Assessment Reports

 Bukhara and Navoi Provinces  Kashkadarya Province

SCNP Conclusions

Status December 2009

TRANSLATION

State Committee for Nature Protection of the Republic of Uzbekistan

6 October 2009 No 18/530 z Reference: xx-50-14-1184, dated 14.08.2009

CONCLUSION of the State Environmental Expertise

On the IEE of activities to be implemented in Bukhara and Navoi Provinces under the Land Improvement Project

Client – The Ministry of Agriculture and Water Resources

Developer – The Rural Restructuring Agency

To: Deputy Minister of the MAWR of the Republic of Uzbekistan - Sh. KHAMRAEV CC: Chairman of Bukharaoblkomprirody - A.B. NIYAZOV Chairman of Navoioblkomprirody - S.S. URINOV Deputy of Director General of the RRA - A.E. YULDASHEV

Materials of the IEE from rehabilitation of primary and inter-farm drainage systems and on-farm I&D infrastructure under LIP in Kyzyltepa, Khatyrchy and Navbahor districts of Navoi province, in Jondor, Bukhara and Romitan districts of Bukhara province, as well as in two demonstration farm areas Oston-Mirob WUA (Navoi province) and Guliston-Namgoni WUA (Bukhara province) have been submitted to the State Environmental Expertise.

The following criteria have been used for selection of districts for LIP implementation: ■ high risk of land degradation in case of non-performance of land improvement measures; ■ availability of reliable water supply for irrigation; ■ high outstanding potential for improvement of land productivity; ■ existence of poor farms; ■ availability of relevant agricultural organizations.

The following considerations have been taken into account in selecting sites for training: ■ at least 30% of land within site territory should be classified as medium to highly saline with ground water table depth less than 2 m; ■ soil bonitet of major part of land within the selected site should be less than 50%; ■ low crop yields within 20-25 c/ha; ■ insufficient number of water regulating and flow measuring structures on irrigation network. On the basis of these criteria demonstration farm areas (500ha each) have been selected in the "Oston Mirob" WUA in Navbahor district of Navoi province and in the “Guliston Namgoni” WUA in Jondor district of Bukhara province.

The total irrigated land area in all above six districts is 180,901ha, including 88,206ha and 92,695ha in three districts of Bukhara and Navoi provinces respectively.

The irrigated land area covered by LIP activities in all six districts is 88,307ha, including 42,000ha and 46,307ha in Bukhara and Navoi provinces respectively.

Analysis of the present environmental conditions described in the project’s IEE indicate existence of some environmental risks: raising groundwater table, increasing salinization of soil and groundwater, reduction in crop yields, water supply deficit.

To mitigate existing risks and to improve old irrigated lands within six LIP districts the following interventions are planned by the Project:  rehabilitation of primary and inter-farm drainage collectors: 640km and 320km in Bukhara and in Navoi provinces respectively;  rehabilitation of structures on inter-farm canals: 67 and 274 structures in Bukhara and in Navoi provinces respectively;  rehabilitation of on-farm open collectors and drains: 210.0km and 217.9km in Bukhara and in Navoi provinces respectively;  rehabilitation of on-farm irrigation network: 114.0km (with 2,236 structures) and 49.1km (with 2,064 structures) in Bukhara and in Navoi provinces respectively; and  reconstruction of existing and construction of additional subsurface horizontal drains: (133.8km and 15.0km) and 27.1km respectively.

On the open collector-drainage network the Project envisages restoration of channel design cross sections and cleaning of field drains and collectors.

On the subsurface horizontal drainage silted sections will be flushed, destroyed or silted up inspection wells reconstructed/rehabilitated, outfall structures flushed and rehabilitated; and open diversion drains and collectors cleaned and rehabilitated.

On the on-farm irrigation network the Project envisages repair and rehabilitation of canal concrete lining, repair and reconstruction of concrete canalettes, reconstruction of water regulating structures, outlets, gauging stations, bridges, culverts, aqueducts, etc.

During implementation of repair and rehabilitation works on canals and collectors three major types of waste will be formed:  sediments from cleaning of canals, drains and collectors, containin aquatic vegetation, mineral salts and organic substances. Such material will be levelled off and used to build up inspection roads along channels, while excess volumes will be placed in spoil banks or levelled by bulldozer;  waste resulting from removal of existing concrete structures (such as canal lining, structures, bridges, culverts, walls, etc) may be used by local people for personal purposes (structure foundations);  waste from excavation of soil in canals and collectors for their widening and deepening. Excavated soil will be placed into spoil banks or used in repair of roads.

As a result of implementation of rehabilitation works on primary, inter-farm and on-farm collector and drainage network, and partially irrigation network on the total area of 88,206ha improved

irrigation water regulation and measurement will be provided increasing the efficiency of water use, and reduce unproductive losses. Groundwater table will be maintained at required depth to enable soil desalinization.

Ameliorative conditions of land served by primary and inter-farm collectors on 28,660ha in Bukhara and Navoi provinces (including 11,160ha in Buhara and 17,500ha in Navoi) will be improved due to better irrigation water management. Mineralized groundwater table will be maintained at the required depth enabling soil desalinization of 11,130ha (including 3,940ha in Bukhara and 7,190ha in Navoi), adjacent to drainage collectors within a zone of direct influence.

Lowering of ground water table due to backwater elimination in inter-farm collectors is planned on the land area of 17,530ha within a zone of indirect influence (including 7,220ha in Buhara and 10,310ha in Navoi). Within this area soil conditions will be significantly (by 50%) improved by desalinization and maintenance of proper water-salt balance.

Partial land improvement is expected for a land area of 23,013ha (including 9,380ha in Buhara and 13,633ha in Navoi), where the project will provide conditions for land users (WUA, farmers) for independent (using their own funds or loans) full land improvement. It is expected that the weighted average soil bonitet will be increased by 30 points, i.e. from 50 points in the current conditions to 80 points.

The Project envisages construction of primary collector for disposal of water from the Kenimekh drainage system to the Ayakgitmin Lake, instead of discharging into the Zarafshan River. Water in this lake is classified as salty and highly mineralized. Therefore the minimal drainage water flow from collectors of the Kenimekh drainage system will have no adverse effect on the current conditions of ecological system of the land area surrounding the Lake.

To reduce possible negative environmental impacts of the Project, a plan of mitigating measures is given in the draft IEE that will be implemented throughout the period of project activities, including monitoring and environment management plans.

Environmental expert examination of the project materials submitted for consideration to be adequate to formulate a decision on the permissibility of Project implementation activities. Activities envisaged by the project are likely to improve the environmental situation within the Project area and to contribute to increased crop yields.

The State Environmental Expertise of Goskomprirody of the Republic of Uzbekistan approves the draft IEE for the Land Improvement Project to be implemented in Bukhara, Navoi, and Kashkadarya Provinces.

Bukhara, Navoi, and Kashkadarya provincial departments of the Nature Protection Committee shall monitor and control the observance of the environmental law during implementation of rehabilitation works on the collector and drain networks aimed at improvement of irrigated lands.

R. Khabirov,

Acting First Deputy Chairman

TRANSLATION

State Committee for Nature Protection of the Republic of Uzbekistan

6 October 2009 No 18/531 z Reference: xx-50-14-1184, dated 14.08.2009

CONCLUSION of the State Environmental Expertise

On the IEE of activities to be implemented in Kashkadarya Province under the Land Improvement Project

Client – The Ministry of Agriculture and Water Resources

Developer – The Rural Restructuring Agency

To: Deputy Minister of the MAWR of the Republic of Uzbekistan - Sh. KHAMRAEV CC: Chairman of Kashkadaryaoblkomprirody - F. ESHNIEZOV Deputy of Director General of the RRA - A.E. YULDASHEV

Materials of the IEE from rehabilitation of primary and inter-farm drainage systems and on-farm I&D infrastructure under LIP in Kamashi, Guzar and Kasan districts of Kashkadarya province have been submitted to the State Environmental Expertise.

The total irrigated land area in all above three districts is 143,754ha, out of which land area covered by LIP activities is 74,000ha or 50% of the total irrigated land area within the selected districts of Kashkadarya province.

Percentage of saline lands in Kashkadarya province is 69% which is higher than the Republic average (64%).

Irrigated land quality in the Kashkadarya province is below the Republic average. Land with high soil bonitet (81-90%) occupies only 0.7% within the LIP districts.

In all districts there are some land areas with groundwater table depth of 1.0m-2.0m, which rises even higher during the irrigation season causing soil water logging and severe salinization.

In all districts the open collector and drain network requires deepening and restoration of cross section. Major part of constructed field drains experiences backwater as a result of poor conditions of diversion drainage collectors. The subsurface horizontal drains are in extremely poor conditions.

To mitigate existing risks the following interventions are planned by the Project:  rehabilitation of primary and inter-farm drainage collectors with structures: 494.2km with 86 structures;  rehabilitation of on-farm open collectors and drains: 482.8km;  rehabilitation of on-farm irrigation network with structures: 115.0km with 908 structures; and  reconstruction of existing and construction of additional subsurface horizontal drains: 250.1km with 4,329 structures.

On the subsurface horizontal drainage silted sections will be flushed, destroyed or silted up inspection wells reconstructed/rehabilitated, outfall structures flushed and rehabilitated and open diversion drains and collectors cleaned and rehabilitated.

On the inter-farm canals and on-farm irrigation network the Project envisages repair and rehabilitation of canals concrete lining, repair and reconstruction of concrete canalettes, reconstruction of water regulation structures, outlets, gauging stations, bridges, culverts, aqueducts, etc.

During implementation of repair and rehabilitation works on canals and collectors the following wastes will be formed:  sediments from cleaning of canals, drains and collectors, containin aquatic vegetation, mineral salts and organic substances. Such material will be levelled off and used to build up inspection roads along channels, while excess volumes will be placed in spoil banks or levelled by bulldozer;  waste resulting from removal of existing concrete structures (such as canal lining, structures, bridges, culverts, walls, etc) may be used by local people for personal purposes (structure foundations);  waste from excavation of soil in canals and collectors for their widening and deepening. Excavated soil will be placed into spoil banks or used in repair of roads.

As a result of implementation of rehabilitation works on primary and inter-farm collectors it is planned to achieve land improvement on the area of 36,900ha. Land improvement on the rest of territory with the area of 24,150ha is planned to achieve through rehabilitation of on-farm collector and drain systems that is necessary for reduction of mineralized groundwater table and soil desalinization. It is expected that weighted average soil bonitet will be increased by 30 points, i.e. from the current 50 points to 80 points. As a result of these measures, the expected increase in crop yields will be as follows:  wheat – by 3 c/ha;

 raw cotton – by 1.5c/ha;  potato, vegetables and melons – by 8-15c/ha;  fruits and grapes – by 0.8c/ha.

After implementation of the Project measures the predicted increase in crop production will be as follows:  grain – by 25.1%;  raw cotton – by 23.2%;  potato – by 79.5%;  vegetables – by 53%;  melons – 86.9%;  fruits – by 62.2%; and  grapes – by 63.0%.

Kashkadarya provincial department of the Nature Protection Committee shall monitor and control the observance of the environmental law during implementation of rehabilitation works on the collector and drain networks aimed at improvement of irrigated lands.

R. Khabirov,

Acting First Deputy Chairman