Social Monitoring Report

Project Number: 48386-004 September 2020

AZE: Railway Sector Development Program

Prepared by Railways Closed Joint Stock Company for the Republic of Azerbaijan and the Asian Development Bank.

This social monitoring report for the Railway Sector Development Program (Rehabilitation of the -Yalama (Russian border) Railway Line) 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. JOINT VENTURE KOCKS-SSF LEAD MEMBER MEMBER SEMI-ANNUAL SOCIAL SAFEGUARD MONITORING REPORT JANUARY – JUNE 2020

Project Number: 48386-004, L3615-AZE September 2020

AZERBAIJAN: Railway Sector Development Project - Rehabilitation of the Sumgait-Yalama (Russian border) Railway Line

(Financed by the Asian Development Bank and Agence Francaise de Development)

Semi-annual Social Safeguard Monitoring Report January – June 2020

Prepared by: Juergen Meyer, Vugar Mammadov, CSC Safeguard specialists

For Asian Development Bank

Endorsed by: Mr.Elkhan Orujov, PIU director Ms.Vusala Rustamova, PIU Safeguard specialist Construction Supervision of Civil Works Contracts for Rehabilitation of track along Yalama - Sumgait Corridor

SEMI-ANNUAL SOCIAL SAFEGUARD MONITORING REPORT

TABLE OF CONTENTS

ABBREVIATIONS AND ACRONYMS ...... 4 GLOSSARY ...... 5 I. INTRODUCTION ...... 7 1.1 Preamble ...... 7 1.2 Headline Information ...... 7 II. PROJECT DESCRIPTION AND CURRENT ACTIVITIES ...... 8 2.1 Project Description ...... 8 Figure 1: Project Location Map ...... 9 2.2 Project Contracts and Management ...... 10 2.3 Institutional Arrangements ...... 11 III. OBJECTIVES OF SOCIAL SAFEGUARD MONITORING ...... 11 3.1 General Description of Social Safeguard Monitoring ...... 11 3.2 Methodology for Internal Monitoring ...... 12 3.3 Capacity of the Social Monitoring ...... 12 IV. SOCIAL DUE DILIGENCE ...... 13 4.1 Approved Design Changes and confirmed LAR impacts ...... 13 V. RESULTS OF SOCIAL MONITORING ...... 13 5.1 General ...... 13 5.2 Awareness of Population within the project influence Area ...... 13 5.3 Grievance Redress Mechanism ...... 14 5.4 Public consultations ...... 16 5.5 Construction Activities ...... 16 VI. CONCLUSION AND RECOMMENDATION ...... 18 6.1 Monitoring findings ...... 18 6.2 Recommendation ...... 18 Annex 1: Land allocation and agreement documents for the Contractor’s camp site ...... 19 Annex 2: List of participants of the consultation meeting, and its minutes of meeting with some photos...... 29 Annex 3: Summary Table for grievance redress for the reporting period ...... 32

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TABLES: TABLE 1: BASIC PROJECT DATA ...... 10 TABLE 2: GRIEVANCE MANAGEMENT PROCESS ...... 14 TABLE 3. CAMP STRUCTURES CONSTRUCTION ...... 16 TABLE 4. PLANT STRUCTURES CONSTRUCTION ...... 17

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ABBREVIATIONS AND ACRONYMS

ADB ― Asian Development Bank AP ― Affected Person DP ― Displaced Person MOF ― Ministry of Finance ADY ― Azerbaijan Railways Closed Joint Stock Company CSC – Construction Supervision Consultant AZN ― Azerbaijani Manat DMS ― Detailed Measurement Survey EA ― Executing Agency LAR ― Land Acquisition and Resettlement LARP Land Acquisition and Resettlement Plan PIU ― Project Implementation Unit ID ― Investment Department of ADY PPTA ― Project Preparatory Technical Assistance ROW ― Right of Way SCPI ― State Committee on Property Issues MENR ― Ministry of Ecology and Natural Resources

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GLOSSARY Affected Person People (households) affected by project-related changes in use of land, (or household) water or other natural resources. These include permanent and temporary loss of land, assets, and income. Affected persons entitled for compensation or at least rehabilitation provisions under the Project are: all persons losing land, or access to land, permanently or temporarily either covered by legal title/traditional land rights or without legal status; tenants and sharecroppers whether registered or not; owners of affected buildings, crops, plants, or other objects attached to the land; and affected persons losing business, income, and salaries; Asset Inventory A complete count and description of all property that will be acquired; Compensation Loss reimbursement for the Project affected persons; Cash payment or in- kind compensation in the due amount in return for the loss of assets (property), resources or income; Direct impact When privately owned land parcels are physically affected by the project; Economic Economic Rehabilitation implies the measures taken for income Rehabilitation- restoration or economic recovery so that the affected population can improve or at least restore its previous standard of living; Eligibility The criteria for qualification to receive benefits under a resettlement program Expropriation Process whereby a public authority, usually in return for compensation, requires a person, household, or community to relinquish rights to land that it occupies or otherwise use; Grievance The processes established under law, local regulations, or administrative Procedures- decision to enable property owners and other displaced persons to redress issues related to acquisition, compensation, or other aspects of resettlement; Initial Baseline The population census, asset inventory, and socio-economic survey Survey- together constitute the baseline survey of the affected population; Income Re-establishing income sources and livelihoods of people affected; restoration- Involuntary Means actions that may be taken without the displaced person's informed consent or power of choice; Involuntary Development project results in unavoidable resettlement losses that resettlement people affected have no option but to rebuild their lives, income and/or assets bases elsewhere; Land Includes anything growing on or permanently affixed to land, such as buildings and crops; Land The process of acquiring land under the legally mandated procedures of Acquisition eminent domain. Land parcels When only privately-owned land parcels are physically affected by the under project project activities; impact Land parcel with When privately owned land parcels as well as residential houses are residential physically affected by the project activities and require demolition of the house attached house; under project impact Land parcel with When privately owned land parcels as well as any non-residential and non- supplementary commercial structures are physically affected by the project activities and structure under may require demolition of the residential house as well; project impact

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Population A complete and accurate count of the population that will be affected by Census land acquisition and related impacts. When properly conducted, the population census provides the basic information necessary for determining eligibility for compensation; Project Cycle- The cycle of project development from initial phases of identification and assessment of feasibility, until its final implementation. From standpoint of the Project implementing agency, it is convenient to represent the project cycle as consisting of following phases: Pre-feasibility Assessment, Feasibility Studies, Project Design and Appraisal, Project Implementation; Rehabilitation Re-establishing incomes, livelihoods, living, and social systems; Relocation Rebuilding housing, assets, including productive land, and public infrastructure in another location; Replacement Cost of replacing lost assets and incomes, including cost of transactions; rates Resettlement Resettlement entitlements with respect to a particular eligibility category Entitlements- are the sum total of compensation and other forms of assistance provided to displaced persons in the respective eligibility category; Resettlement Loss of physical and non-physical assets including homes, communities, effects productive land, income-earning assets and sources, subsistence, resources, cultural sites, social structures, networks and ties, cultural identity, and mutual help mechanisms; Resettlement A time-bound action plan with budget setting out resettlement strategy, plan objectives, entitlements, action, responsibilities, monitoring and evaluation Resettlement (Action) Plan - A resettlement action plan [RAP] is the planning document that describes what will be done to address the direct social and economic impacts associated with involuntary taking of land. Resettlement The approaches used to assist people in their efforts to improve (or at least Strategy to restore) their incomes, livelihoods, and standards of living in real terms (Rehabilitation after resettlement. The resettlement strategy typically consists of payment Strategy) of compensation at replacement cost, transition support arrangements, relocation to new sites (if applicable), provision of alternative income generating assets (if applicable), and assistance to help convert income- generating assets into income streams. Stakeholders A broad term that covers all parties affected by or interested in a project or a specific issue—in other words, all parties who have a stake in a particular issue or initiative. Primary stakeholders are those most directly affected— in resettlement situations, the population that loses property or income because of the project and host communities. Other people who have an interest in the project—such as the project authority itself, the beneficiaries of the project (e.g., urban consumers for a hydro-power project), and interested - NGOs are termed secondary stakeholders; Vulnerable Vulnerable people – Project affected people, especially those below the groups poverty line, families led by single women, refugees and - IDPs, the disabled;

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I. INTRODUCTION

1.1 Preamble 1. This is a Semi-Annual Social Monitoring Report (SASMR) for Rehabilitation of the track and structure of the Sumgayit - Yalama rail line, a key link in the North -South Railway Corridor within the Central Asia Regional Economic Cooperation network. The report covers the monitoring period from January to June 2020. The Construction Supervision Consultant of the project is Kocks Consult GmbH in JV with SSF Ingenieure, Germany (hereafter CSC) and the contractor is “Kolin & In Con KZ Joint Venture” (hereafter Contractor). 2. This report describes the status of project implementation, activities carried out by the contractor with regard to social safeguard issues, including grievances raised, resolved and/or rejected, mitigation measures provided during the monitoring period, and the actions planned to accomplish the outstanding issues. 3. This report is the 3rd Social Safeguard Monitoring Report for the project covering the period of January-June 2020. 4. The rehabilitation of Sumgayit-Yalama Railway Project categorized as Social Safeguard Category B under the ADB Safeguard Policy Statement 2009.

1.2 Headline Information 5. Land Acquisition and Resettlement Report (LARP) was prepared and approved in the first half of 2019. The LARP complied with the requirements of ADBs 2009 Safeguard Policy Statement (SPS 2009) and Azerbaijani laws and regulations. Implementation of the LARP was started in July 2019 and completed in September 2019. The LARP completion report was submitted to ADB and accepted in September 2019. The information on the approval, implementation and completion of the LARP is provided in the 2nd Semi-Annual Social Safeguard Report, July-December 2019. 6. The construction activities that have been carried out during the monitoring period have included: (i) construction of camp facilities; (ii) construction of plants and sleeper production yard, (iii) exploration of material sources; (iv) construction of temporary access (construction) roads; (v) several pre-construction activities as design, topographical, geotechnical and hydrological surveys, material investigations; etc. 7. The Supervision Consultant has mobilized the Team Leader and appropriate national key staff in line with Contractors’ initial design and work program. But due to COVID-19 pandemic and relevant lockdown entailing travel restrictions the Supervision Consultant could not fully mobilize its international experts. 8. Similar the Contractor was not able to mobilize all international experts but nevertheless could commence works either by sub-contractors or own staff already based in Azerbaijan before the lock-down occurred. 9. The National Safeguard Specialist participated in Public Consultations together with the contractor mainly focused on the grievance redress procedure.

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II. PROJECT DESCRIPTION AND CURRENT ACTIVITIES

2.1 Project Description 10. The Project objective is to improve railway services in Azerbaijan, as well as Azerbaijan Railways CJSC (ADY) competitiveness, financial sustainability, operating and cost efficiency, and capacity, in particular along the North - South transport corridor (Yalama• Sumgait section). The Project comprises rehabilitation / renewal of critical assets (track superstructure and substructure) along the North South corridor and technical services to support the restructuring of the railways. 11. The works component of the Project was procured and will be administered under the FIDIC Conditions of Contract, for Construction, Multilateral Development Bank, Harmonised Edition, June 2010, Pink Book as two Lots comprising: a) Lot 1 - double electrified track with ballast track superstructure from Sumgait Station (Km 2622+175) to Gil-Gil-Chay Station (Km 2538+200); b) Lot 2 - double electrified track with ballast track superstructure from Gil-Gil-Chay Station (Km 2538+200) to Russian border at Yalama (Km 2454+454). 12. The Client has awarded the Project Management and Construction Supervision Contract to the Joint Venture Kocks Consult GmbH, Consulting Engineers, Koblenz/Germany with SSF Ingenieure AG/ Consulting Engineers, Munich/Germany on 04 October 2019 to provide the following services (hereinafter called “Services”): “Consulting Services for Engineering and Construction Supervision for Rehabilitation of Track along Yalama – Sumgait Corridor”. The Service Contract is financed under the ADB Loan. Commencement date of Engineer was 25 November 2019. 13. The current length of the N-S railway corridor in Azerbaijan totals about 510 km, comprising (i) 192 km northbound railway link between -Yalama (Russian border) which is doubled tracked, electrified and equipped with automatic signalling system; (ii) 129-km southbound railway link between Baku-Osmanly station which is double-tracked and electrified; and (iii) further 189-km southbound railway link between Osmanly Station and Astara Station which is single-tracked and non-electrified. The construction of the last missing 8.4 km railway link from Astara station to Iranian border was completed in early- 2017. 14. The Azerbaijan Railway track between Russian Border (km 2454+454) and Sumgait (km 2622+175) and thence to Baku, along the , is constituted with double track electrified with 1,520 mm track gauge. Between Sumgait and Yalama, 18 stations with sidings are served and equipped with numerous turn-outs and track sidings (only Track N°3 and N°4 have a total length of some 105 km), composed with switches and/or cross- overs, with an average distance between the stations of less than 10 km. 15. The Rail Track Rehabilitation Project is divided into two lots – Lot 1 and Lot 2. Lot 1 is located between Sumgayit (km 2622+175) to Gil-Gil-Chay Stations (km 2538+200) and Lot 2 is located between Gil-Gil-Chay Station (km 2538+200) to Yalama (Russian border at km 2454+454).The project proposal is to replace the existing track (No1 and No2) components with new material concerning the rails, the sleepers with pre-stressed monobloc concrete sleepers and the fastenings with modern elastic fastening equipped

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with rubber pad and these particularly to be “fit and forget” because no maintenance is required. Fences between 1,60 and 2,00 meters high will be installed on both side of the line, along the Right of Way and where the site is more appropriate (near the main station) for higher concentration of population. There are 13 pedestrian overpasses which will be constructed in project stations, 6 bridges of them considered also for disabled people. 16. There are 25 Bridges that need to be replaced with pipe, 44 Bridges that need to be replaced with box culverts, 18 Bridges that have deck with significant damaged parts and need to be replaced with similar structures, 40 Bridges need capital repair, 21 Bridges have a deck with good appearance and do not need significant rehabilitation work except some cleaning and surface repair, 5 Bridges beams must be replaced and the supports must be repaired and 2 Bridges beams must be replaced. There are 122 Culverts which will be replaced with a new reinforced concrete culvert and 50 at-grade crossings that are considered to be constructed in accordance with modern standards. Figure 1: Project Location Map

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2.2 Project Contracts and Management 17. ADB has contracted the JV Kocks/SSF in October 2019 as Supervision Consultant and consequently issued the commencement letter with commencement date 4 November 2019. 18. The basic information of the project Construction Supervision is as follows: (i) Consultant: JV Kocks/SFF; (ii) Date of Contract Signed: 04.10.2019; (iii) Commencement Date: 04.11.2019; and (iv) Contract Period: 42 months plus 12 months defects notification period.

Table 1: Basic Project Data Railway Sector Development Project - Rehabilitation Project Name of the Sumgait-Yalama (Russian border) Railway Line Contract N RSDP-S&I-01 Employer (Executive Azerbaijan Railways Closed Joint Stock Company Agency) (ADY) Kolin İnşaat Turizm Sanayi ve Ticaret A.Ş. & Contractor Integra Construction KZ LLP Joint Venture Commencement Date 18.02.2020 of the Contractor Construction Joint Venture between Kocks Consult GmbH and Supervision SSF Ingenieure AG Consultant (Engineer) Commencement Date 25.11.2019 of the CSC Contract Period 1280 days Contract Completion 21.08.2023 Date

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19. The agencies involved directly in the implementation of the project include: (i) Kolin and Integra Construction JV, the contractor; (ii) JV Kocks Consult GmbH and SSF Ingenieure as the supervising engineer; and (iii) Project Management Office (PMO) including Project Implementation Unit (PIU) and Project Support Unit (PSU) under Azerbaijan Railways CJSC.

2.3 Institutional Arrangements 20. ADY has the overall responsibility for the Project, including the preparation, implementation, and financing of all LAR tasks and for interagency coordination. ADY is exercise its functions through the PIU which is responsible for general project execution, and tasked with day-to-day project activities. 21. The Construction Supervision Consultant (CSC) will be responsible for ensuring LAR activities are aligned with relevant Azerbaijan legislation/regulations and SPS (2009). CSC will investigate grievances received and report the results in quarterly and semi-annual monitoring reports, which will be submitted to the PIU and ADB. 22. The Contractor has the responsibility of mitigating impacts resulting from the rehabilitation and construction activities. Based on Technical Design, the Contractor will delineate the Corridor of Impact from non-affected lands and premises to avoid any potential impact. Further the contractor assists ADY’s local representatives in receiving, recording and addressing/transferring complaints.

III. OBJECTIVES OF SOCIAL SAFEGUARD MONITORING

3.1 General Description of Social Safeguard Monitoring 23. The implementation of the LARP is subject to internal monitoring which shall be implemented by ADY`s Safeguard Specialist assisted by the consultant’s national and international safeguard specialists. 24. Consultant’s national safeguards specialist is in charge to conduct regular site visits, examine whether any works incurred any impact to local residents, or land users. In the reporting period any social impact is not detected. If any impact will be identified the national Safeguards Specialist will prepare relevant report and submit to the project Team Leader for the further follow up and share with International Safeguards Specialist to keep updated, informed, and receive feedback if required. These reports will provide descriptions of the impact, full name and contact details of affected person(s), exact location of the affected area, and relevant photos. 25. The Construction Supervising Consultant is assisting the ADY with international and national Safeguard specialists who are engaged in the process of internal monitoring to effectively detect and address any emerging social safeguards issues during monitoring process and the construction period as well. The key objective of the internal social safeguard monitoring is overseeing the process of project’s impacts and the grievance redress procedures during the entire project cycle.

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3.2 Methodology for Internal Monitoring 26. In addition, it is important to assess that social impacts are well mitigated through the instruments stipulated under the approved LARP undertaken in compliance within the country legislation, social safeguards guidelines and to the extent possible meet the best international practice. 27. To meet the requirements, the Consultant as a rule, initially conducts desk reviews, closely reviews all available reports and Grievance Log. During this reporting period as a result of travel restriction International Safeguards Specialist could not visit the country. Therefore, communication exchange was undertaken through regular telephone and Skype calls with national safeguards specialist and ADY Safeguard Specialist. 28. The following areas are routinely addressed during the internal monitoring and evaluation of project performance process: a) Grievance Redress Mechanism; b) Unanticipated/temporary impacts or damages; c) Potential design changes; d) Possible needs for livelihood restoration, provision of mitigation measures, or need for preparation LARP Addendum.

29. Listed below are the Instruments and Indicators for Social Impact and Project Performance monitoring and assessment: a) Assessment of the efficiency of Grievance Redress measures: (i) Frequency and contents of lodged grievances (ii) Practice of Grievance redress: timing of collection, review and response time required by GRC (iii) Assessment of resolved and rejected grievances b) Instruments and timing exercised to address any cases of unanticipated impacts c) Assessment of the effectiveness of provided mitigation measures based on the recipients’ feedback d) Assessment of income restoration of vulnerable and severely affected AH`s, and if required, provision of relevant mitigation measures. 30. During the reporting period no grievance have been reported.

3.3 Capacity of the Social Monitoring 31. The responsible persons for the social monitoring of the project are as follows: I. PIU: Safeguard Specialist: Ms. Vusala Rustamova; II. Construction Supervision Consultant: International Safeguard Specialist Mr. Jürgen Meyer and National Safeguard Specialist Mr. Vuqar Mammadov; and III. The Contractor: Project Managers of each Lot and by National Environmental Consultant Mr. Resad Kerimov. 32. Ms. Vusala Rustamova from PIU is responsible for the safeguard management and monitoring of social and environmental impacts of project. Mr. Jürgen Meyer is responsible for carrying out intermittent monitoring, and providing training to the local counterparts and personnel who are involved in the day-to-day activities for social safeguard monitoring.

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Mr. Vuqar Mammadov is responsible for regular monitoring of the project compliance from the supervising engineer’s side. Mr. Polad Umudov is responsible for health and safety compliance and Mr. Resad Karimov is responsible for the environmental monitoring and reporting from the contractor’s side.

IV. SOCIAL DUE DILIGENCE

4.1 Approved Design Changes and confirmed LAR impacts 33. Design activities are currently ongoing but no design has been approved yet. Therefore, no changes are known which would have an impact on the LAR.

V. RESULTS OF SOCIAL MONITORING

5.1 General 34. The Consultant was focused specifically on social safeguards monitoring and effectiveness of grievance redress procedures undertaken during given reporting period in regard with following indicators: a) Awareness on project of population with project influence area; b) Public consultations and consultations avenues; c) Grievance redress practice; d) Cases of unanticipated/temporary impacts or damages; e) Potential design changes; f) Potential for project related impacts including unforeseen losses and damages that might occur during construction or operation phases, requiring careful monitoring and remedial steps to be taken, as required. 35. During the reporting period, the contractor constructed a camp site. The camp area is located almost adjacent to the existing railway, at km 2531+000 of project, approximately 50 m from Davachi-Dayirman LLC of Shabran city. The land plot having 25 ha area was allocated by Executive Power and approved by State Expertise Department of the Ministry of Ecology and Natural Resources of Azerbaijan (Annex 1 for land allocation documents). The area used to be barren state land with no cultivations.

5.2 Awareness of Population within the project influence Area 36. In order to deliver relevant project information to project affected people and other stakeholders, the ADY staff, and the Social Safeguards Specialist of the Consultant, pursue Stakeholder Communication Strategy through regular public consultations in normal life conditions. Azerbaijan has introduced a “special quarantine regime” since March 2020 due to COVID19 pandemic, which includes several rules including prohibiting people gathering together. As of the reporting period more than 5 persons cannot gather together. Moreover, we don’t have information when the Government will allow people to live in normal conditions (as usual) or more flexible situation. Therefore, the public consultation was initially prepared by considering normal life conditions (without COVID

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related restrictions), but it will be altered according to the Government strategy on the above mentioned issue.

5.3 Grievance Redress Mechanism 37. ADY has established Grievance Redress Commission for the proposed project to receive, manage and properly file complaints related to project implementation. Grievance Focal Persons (GFP) designated by ADY at each railway station located along Sumgait-Yalama railway line will firstly register all complaints. Complainant can submit grievance in person, via phone call, email, letter or fax to GFPs. A paper issued by the GFP will acknowledge the receipt of grievance lodged in person or via phone immediately or other persons received the grievance. Regardless of nature, all grievances will be recorded in the registration form in detail. Upon receipt of grievances, GFPs will sort them into categories to define if the complaint is eligible for the project established by Grievance Redress Mechanism.

Table 2: Grievance management process Steps/Levels Description Activities Time frame 1 Project level There are 4 (four) Grievance Focal Person 7 working days assigned for project. Contact details of GFPs: 1. Sumgait Main Station, Engineer – Elxan Haciyev – 012- 499-12-58; 2. Shabran Station, Head of station – Suheyl Aliyev – 012- 499 12 68; [email protected] 3. Xachmaz Station, Deputy – Aliqiyab Mammedov – 012- 499 12 14; [email protected] 4. Yalama Station, Deputy – Aydin Karimxanov – 012- 499 12 01, [email protected] Grievance Focal Person (GFP) receives the complaint and provide acknowledgement letter to the complainant within 3 days after receipt of the complaint. Grievances related to compensation, entitlement and land acquisition are directly sent to the second level of GRM. For other type of grievances, ADY’s nearest railway station and local municipality tries to solve the complaint in 7 days. If the grievance cannot be solved within 7 working days, then the Contractor submits information to the Grievance Redress

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Commission of ADY, and provide information to the complainant regarding the grievance. GFPs maintains a database of grievances. 2 Grievance GRC reviews and resolves the grievance 15 working days Redress within 15 working days. The Commission Commission comprises of the following members: Shalala (GRC) Gahramanova, head of the GRC, the head of within ADY Project Coordination Division under CJSC Investment Department. • Representative of the Infrastructure Department of ADY - Bahram Shukurov, Deputy head; • Representatives of the “ADY Property” LLC – Ildirim Qocayev, Head of Department and Azer Alisoy, senior engineer; • Representative of the Legal Division - Ulvi Alizade, Head of Unit for works with legal documents; • Representative of Freight Department of ADY - Elmar Quliyev, Senior engineer • Representative of the PIU - Vusala Rustamova, Safeguard specialist; If the case is complex and requires investigation (experts’ opinion), expertise or confirmations from the state bodies, the resolution period can be extended up to 30 calendar days. If the grievance cannot be still resolved, or the complaining party doesn’t agree with the offered solution, then: In case of social safeguard issues: it is forwarded to the Level 3 for resolution at the State Financial Control Agency under the Ministry of Finance. In case of environmental issues: the 3rd stage is omitted and the case can be forwarded to the respective court (stage 4)1 3 State The State Financial Control Agency under the 30 working days Financial Ministry of Finance, which is responsible to Control control over LAR related activities and Agency grievances, reviews the grievance and under the resolves it within 30 calendar days. If the Ministry of grievance is found invalid, a written response Finance should be given to the complaining party, explaining reasons for the rejection

1 MOF is only responsible for social/land acquisition related actions and grievance. Therefore, environmental related grievances are not submitted to MOF (which is step 3 of GRM).

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4 Court If the complaining party is not satisfied with the Duration of a Control Agency’s decision, he/she can submit court process his/her complaint to the appropriate court of depends on law for resolution. nature and complexity of the complaint

38. DPs have right to apply to an appropriate court anytime without passing through the above-mentioned steps. Alternatively, DPs can also use ADY’s 1822 Hotline Service to register their complaints. This is a centralized online service, in which complainants and inquirers can dial 1822 and register their complaints. ADY will ensure that complaints are responded to within 24 hours from registering the complaints. The complaints, received through the Hotline Service, related the Project will be recorded in the Project GRM. The hotline service immediately transfers these complaints to GRC. 39. If complaints are not satisfactorily resolve at the GRM level, complainants have an option to (i) bring their complaints to ADB operations department in charge of the project (specifically CWTC); and (ii) ADB Accountability Mechanism as a last resort if in case complainants are not satisfied with resolution in (i). 40. No grievances were received during the reporting period.

5.4 Public consultations

41. Public consultations will be the integral part of the entire project implementation process. 42. The Contractor has organized a public consultation in Shabran Municipality with the participation of Shabran community, Municipal Authorities and National Safeguard Specialist on 17 June 2020 to inform public community about the project progress and details of the grievance redress mechanism. 43. Discussion topic: consultation was mainly about the construction schedule, grievance mechanism procedure and information about the project contractor. List of participants and minutes of the meeting for June 17, 2020 is provided in Annex 2.

5.5 Construction Activities 44. The contractor has not started any permanent works yet. 45. Currently main activities are related to design and survey works, planning for relocation of utilities and construction of camp site facilities and plant as shown in the following tables.

Table 3. Camp structures construction

Structure Finishing Progress Structure Name No. works percentage 1 Contractor's Office Completed 100% 2 Engineer Office Completed 100% 3 Contr. Eng. Dormitory Completed 100%

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4 Contr. Eng. Social Completed 100% Facility 5 Social Facilities on going 70% 6 Family House Completed 100% 7 Family House Completed 100% 8 Family Social Facility Completed 100% 9 Camp Management Completed 100% 10 Dining Hall Completed 100% 11 Foreman Dormitory Completed 100% 12 Labour Social Facility Completed 100% 13 Laundry and Clinic Completed 100% 14 Labour Dormitory Completed 100% 15 Labour Dormitory Completed 100% 16 Labour Dormitory Completed 100% 17 Diesel Tanks - 100% 18 Workshop Completed 100% 19 Warehouse 100% 20 Weighbridge - 100% 27 Laboratory Completed 95% 28 Boiler&Treatment Area - 100% 30 The main gate - 100% 32 Septik 25 Tons - 100% 33 Well - 100% 34 Driver & Security Room Completed 100% 35 Engineer Staff Dormitory not started 0%

Table 4. Plant structures construction Finishing Progress Structure No Structure Name works Percentage

36 Mixing Plant completed 100% 37 Concrete Plant on going 90% 38 Sleeper Production on going 80% Plant 39 Crusher completed 100%

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VI. CONCLUSION AND RECOMMENDATION

6.1 Monitoring findings 46. Since the Detailed Design is not available yet and thus no impacts on the LARP has been identified. The monitoring has concentrated on introduction of the grievance redress system to the local communities to ensure the system to be in place also during construction of temporary works.

6.2 Recommendation 47. Once the design is ready, identify any impacts and prepare LARP Addendum if needed as a results of design changes or additional elements. 48. Regularly monitor the registered grievances and assess effectiveness of GRM process.

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Annex 1: Land allocation and agreement documents for the Contractor’s camp site

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AZERBAIJAN REPUBLIC MINISTRY OF ECOLOGY AND NATURAL RESOURCES STATE EXPERTISE OFFICE

Enis Buka Director of Kolin Construction Tourism Industry and Trading Co.Inc. Azerbaijan branch

cc: to Regional Ecology and Natural Resources Office

In reply to your letter Ref. no. DGR-RSDP-001 dated 06.03.2020

The comment of expertise no. ER-22/127 dated 16 March 2020 for project of production base and campsite area project arranged in the Shabran district area related to execution of Reconstruction of “Sumqayit-Yalama”, is submitted to you.

Attachment: ecological expertise comment – 3 pages.

Sincerely,

Director Mirsalam Qanbarov

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Ministry of Ecology and Natural Resources Office of State Expertise

Baku city 16 March 2020

No Er-22/127

Ecological Expertise Comment

Azerbaijan Republic Ministry of Ecology and Natural Resources, states by reviewing the documents of manufacturing base and campsite area arranged in Shabran district submitted to State ecological expertise by Kolin Construction Tourism Industry and Trading Co.Inc. Azerbaijan branch: Kolin Construction Tourism Industry and Trading Co.Inc. Azerbaijan branch has been registered by Ministry of Justice on 31.05.2996 (TIN 1000853601). Based on the contract in accordance with the existing legislation, the area of 25,0 ha in the vicinity of “Devechi Deyirman” LLC, Shabran, was rented by Kolin Construction Tourism Industry and Trading Co.Inc. Azerbaijan branch in order to establish the manufacturing base and campsite area. Using the area for the mentioned objective has been agreed with the related district authorities. The allocated area was not used for other purposes in the past and is cleared from buildings and green areas (partly). The area has been used for pasturing purposes. The main purpose of establishing a manufacturing base in the subject area is to ensure the implementation of “Sumqayit - Yalama” railway reconstruction. The Employer of the project is ADY CJSC. The design works related to the use of the area has been conducted by the specialists of the company. The equipment, plants, and base area will be composed of installation structures. According to the submitted documents, concrete production plant with “Meka-60” grade and 25 000 cubic meter production capacity, material facilities and other auxiliary plants will be installed. A camp site will be established in the area with constructible installations for temporary residence of the recruited project personnel. For ensuring the normal working conditions for the service staff, constructible office building, workshop area, laboratory building and etc. will be also established. The main power source for the concrete production plant is accepted as the electric power. For permanent source of electricity 2 deiesel generators will be installed with 250 kva power on the campsite area. During the operation of manufacturing base inorganic dust, nitrogen oxide, carbon, Sulphur oxide, carbon hydrogens and fog will be emitted to the atmosphere. In order to avoid excess emission of hazardous wastes to atmosphere the plant was equipped with cyclone and filters. Precast concrete will be made in the plants using local resources – ballast, dust, cement and minerals. In order to store cement, 2 silos-bunkers with 100 ton capacity will be installed in the area. The transported sand and ballast to the area will be stored in the specially designated open space. According to the project, for the reconstruction of the railway 500 000 concrete poles will be produced in order to be used. Those concrete poles will be manufactured in special molds using metal fibers. The manufactured products will be used in the rehabilitation of the line and reconstruction purposes as required. The raw materials will be transported to the base area with special transportation.

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Water supply of the base will be supplied through the contract for the welfare purposes. The accumulated domestic waste water will be discharged to the dich. A sub-artesian well will be excavated for the permanent water supply purposes. The solid wastes formed during the operation of the facility will used for the works of access/exit ramps due to being safe and fireproof. The activity field is considered in IV category based on the ecological safety level. During the operation period and accidents excessive pollution of the environment is not predicted. Ministry of Ecology and Natural Resources, considering the above mentioned statements has no objections in condition of strictly following the environmental requirements below: -the full fencing of the area ensuring the environmental protection, providing the restriction of access and exit of external people -providing the top soil of the area kept separate which is to be remained under the buildings for the purpose of excavation to rehabilitate in the future. - Ensuring the full protection of the trees planted in the protection zone of the existing railway within the boundaries of the area. - Ensuring the proper management of the ground and surface water considering the landscape conditions of the area and avoiding the discharge of external water - Acquisition of natural raw material used for production purposes from organizations with special permits from Ministry of Ecology and Natural Resources. - Installation of dust prevention devices on stationary waste sources in order to prevent compulsory wastes to environment, providing the accepted raw materials in prevention - Providing acquisition of special permission regarding water usage when necessity of ground water arises - In the initial phase provision of hermetic formation of dich intended to receive waste water, ensuring the installation of compact type cleaning device on sit considering the number of personnel in the future - Ensuring the proper management of production and welfare waste created during its operation in accordance with requirements of legislation - Managing the accounting of natural raw materials used during the worker base operation period, issuing the preliminary report documents of discharged water to environment, ensuring the payment of amounts intended for pollution to state fund of Environmental protection quarterly - Ensuring the full delivery of the area to its initial owner after completion of the project.

Chief, Mirsalam Qanbarov

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Annex 2: List of participants of the consultation meeting, and its minutes of meeting with some photos.

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Introdcution:

Participants: 4 persons from Shabran municipality.

The consultation was held in Shabran district which is Lot 2 of the Project. The relevant information about the Project was provided to the municipality head and employees. They were selected because of two reasons: firstly, they are in communication with local people on a daily basis, and secondly, they are a reliable source of information for local people.

There is no DP in Shabran district and nearby districts, therefore there is no DP in the consultation. In addition, according to special COVID-19 related situation in the country, it is not allowed to gather more than 5 people.

No questions were raised during the meeting.

Minutes of meeting:

Vugar Mammadov – Safeguard Specialist of Kocks Consult gave information on the objectives of the Rehabilitation of Sumgayit – Yalama Railway, the existing conditions of environmental impact and the expected results from the above projects. He stated that this is already the first public consultation meeting at Shabran Municipality. He said that, under the offer of Azerbaijan Railway CJSC Rehabilitation of Sumgayit – Yalama (Russian border) Railway Line is being carried out by “Kolin & Integra Joint Venture”, and work are currently scheduled to be completed by 2023. “Kolin & Integra Joint Venture” is committed to integration with the society and the environment. It has made it a priority to provide the best working environment for its employees, taking into account the human and safety factors, in a spirit of responsibility towards the environment, and has undertaken to minimize occupational diseases and accidents at work. However, it is impossible to avoid of some negative impacts during construction (e.g. dust-mist, noise, vibration etc.) Therefore, we do apologize to the owners of land, houses and etc. on behalf of our company administration for the temporary inconvenience that will be generated during the process of construction.

Rashad Karimov – Environmental Protection Manager of Kolin & Integra Joint Venture firstly welcomed all participants and informed about the construction process and Grievance Redress Mechanism. He said construction process includes several major activities; clearance of the corridor of impact (8m from the edge of the railway line to each side), construction of the earthworks and culverts; construction of bridges and then installation of the slippers and rails. Measures to mitigate against any negative impacts, including reduction of impacts that could temporary affect your community, are included in the Site Specific Environmental Management Plan (SSEMP) witch “Kolin & Integra Joint Venture” is implementing. Examples of community include; watering of roads, and covering of vehicles to reduce dust, scheduling work and using modern machinery so as to minimize noise disturbance, maintenance and restoration of any roads or land damaged due to the construction process, and the protection of tress near the alignment. If you have any comments or complaints to the work of “Kolin & Integra Joint Venture” you are welcome to contact us by local or mobile phones or via e-mail. All your comments/complaints will be registered, investigated by appropriate department of the company and all necessary measures will be taken.

Guliyev Gahraman - Head of Shabran Municipality said that firstly we are very happy that the construction process for Rehabilitation of Sumgayit – Yalama Railway has started. It is a

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big project and will have a positive impact on regional development. Secondly it is good that the contractor company as Kolin & Integra Joint Venture wants to share all information with the local community helps to the local people by providing them with different jobs according to their ability. It is good that the Grievance Redress Mechanism has already been established for this project. It is very important for us to know1 whom to address our grievances and comments during construction process.

Image 1. (Shabran Municipality) 17.06.2020

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Annex 3: Summary Table for grievance redress for the reporting period

Status Date / Channel of Name /contact Ref Nature of (Pending, Grievance Receipt details of Category Location Action taken Notes/Comments Grievance Ongoing, No. plaintiff Solved)

No grievances 1 received

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