Framework Initial Environmental Examination Report Project No: P45299 Date: January 2012 Republic of Armenia - Water Supply and Sanitation Improvement in the Settlements of Republic of Armenia – Phase 2 The Framework Initial Environmental Examination is a document of the borrower. The views expressed herein do not necessarily represent those of ADB‟s Board of Directors, Management, or staff, and may be preliminary in nature. Your attention is directed to the "Terms of Use" section of the ADB website. CONTENTS I. POLICY LEGAL AND ADMINISTRATIVE FRAMEWORK 1 A. ADB Safeguards Policy Statement 2009 1 B. Legal Setting 1 C. International Conventions 6 D. Institutional Setting 6 II. DESCRIPTION OF THE PROJECT 8 A. Project context 8 B. Type of Project 10 C. Description of the works 10 D. Locations 12 E. Temporary and Enabling Works 14 F. Temporal Context. 14 III. DESCRIPTION OF THE ENVIRONMENT 14 A. Physical Environment 14 B. Ecological Resources 16 C. Social and Cultural context 16 IV. ANTICIPATED ENVIRONMENTAL IMPACTS AND MITIGATION MEASURES 17 A. Source Approach to Impact Identification 18 B. Physical and Biological Impacts – Target approach 19 C. Socioeconomic Impacts 21 D. Mitigation Measures 22 V. ANALYSIS OF ALTERNATIVES 25 VI. INFORMATION DISCLOSURE, CONSULTATION AND PARTICIPATION 26 VII. GRIEVANCE REDRESS MECHANISM 26 VIII. FRAMEWORK ENVIRONMENTAL MANAGEMENT PLAN 28 A. Mitigation 28 B. Monitoring 8 C. Implementation Arrangements 9 D. Performance Indicators. 12 IX. CONCLUSION AND RECOMMENDATION 12 Appendix A Breakdown of works proposed per sub-project Appendix B EMP Framework Checklist Appendix C Inspection Checklist Attachment I Scoping Document (Available upon request) Attachment II Minutes of Public Consultation (Available upon request) GLOSSARY ADB Asian Development Bank ACM Asbestos Containing Material ASWC Armenia Water and Sewage Company COP Code of Practice DRR Daily Regulating Reservoir EIA Environmental Impact Assessment (according to RA state and ADB specification) EMP Environmental Management Plan (at Project level) FDI Foreign Direct Investment HDPE High Density Poly Ethylene IEE Initial Environmental Examination IFI International Finance Institution MoNP Ministry for Nature Protection PDSC Project Design and Supervision Consultant PIU Project Implementation Unit PMU Project Management Unit within the ASWC RA Republic of Armenia SCWE State Committee for Water Economy SPS ADB Safeguards Policy Statement (2009) TA Technical Assistance USD United States Dollars EXECUTIVE SUMMARY 1. The proposed phase 2 of the Water Supply project in Armenia will be implemented within a framework of state supervising bodies and the water supply company. The Implementing Agency operates under the supervision of a state authority, and will engage consultants for detailed design, supervision and for Environmental Risk Management for each of the ten sub-projects. The Design Consultants will determine the implementation of the framework of measures for environmental protection as appropriate for each of the sub projects reflecting local conditions and risks. 2. The phase 2 of the Water supply improvement project in Armenia is an essential project to remediate collapsed networks and supply equipment in 92 rural villages and to realize the potential benefits of the phase 1 projects. The project is 50 million USD, and is made up of 10 separate scopes of work, and will be implemented by small teams of construction contractors. The works are to repair and extend existing facilities and exclude sewage system improvements or any permanent resettlement. 3. The Armenian environment is mountainous with a strong contribution from agricultural activity in the valleys. Armenian Heritage and Environmental resources include many archeological and nature protected resources. Soviet period heavy industry has generally ceased to operate, however reforms by the administration are favoring IFI and FDI interest. 4. The proposed measures are not likely to have any long term impact and each measure will be separately implemented by small construction teams – working in parallel in separate villages. No new lands acquisition will be required as all the scope is in repair upgrading or replacing of existing facilities. The implementation of the Framework Environmental Management Plan will be tailored to the specific sub-projects using a checklist provided as Appendix B, based on this SSEMPs will be developed and their implementation will be monitored in the field. The implementing Agency will provide training to construction Contractors to support implementation of the works in the framework of the EMP and the ADB Safeguards Policy Statement 2009. 5. The project utilizes well established solutions appropriate to the operating socioeconomic environment. 6. Preliminary public consultations were held in 10 towns in November 2011 by the PMU to ADB Guidelines and under TA supervision. Public anxieties are few and those raised can readily be addressed. 7. Due to the limited scope of works and the diffuse nature of the sub projects, no EIA is warranted under ADB guidelines in this case. 8. The presently proposed arrangements for identification and mitigation of impacts are adequate in the context of this project to meet the Environmental Safeguards requirements of the ADB I. POLICY LEGAL AND ADMINISTRATIVE FRAMEWORK A. ADB Safeguards Policy Statement 2009 1. ADB is committed to assisting Developing Member Countries to pursue environmentally sustainable and inclusive economic growth and is committed to social and environmental sustainability in projects it supports. Environmental, Social and Involuntary Settlement safeguards are set out in the Bank‟s Safeguard Policy Statement 2009 (SPS) which was approved by the ADB‟s Board of Directors in July 2009. The preparation of this IEE and the implementation of the resulting Environmental management program are part of the means by which the Environmental Safeguards Policy Statement 2009 is applied to this project. 2. The SPS builds upon the three previous safeguard policies on the environment, involuntary resettlement, and Indigenous Peoples, and brings them into a single policy that enhances effectiveness and relevance. The objectives of the SPS are to avoid, or when avoidance is not possible, to minimize and mitigate adverse project impacts on the environment and affected people, and to help borrowers to strengthen their safeguard systems and develop the capacity to manage environmental and social risks. The safeguards Policy addresses risks to Environment, risks from the need for Involuntary Resettlement and risks to indigenous peoples. 3. A proposed project is assigned to one of the following categories, depending on the significance of the potential environmental impacts: 4. Category A. A proposed project is classified as category A if it is likely to have significant adverse environmental impacts that are irreversible, diverse, or unprecedented. These impacts may affect an area larger than the sites or facilities subject to physical works. An environmental impact assessment (EIA), including an environmental management plan (EMP), is required. 5. Category B. A proposed project is classified as category B if its potential adverse environmental impacts are less adverse than those of category A projects. These impacts are site-specific, few if any of them are irreversible, and in most cases mitigation measures can be designed more readily than for category A projects. An initial environmental examination (IEE), including an EMP, is required. 6. Category C. A proposed project is classified as category C if it is likely to have minimal or no adverse environmental impacts. An EIA or IEE is not required, although environmental implications need to be reviewed. 7. Category FI. A proposed project is classified as category FI if it involves the investment of ADB funds to, or through, a financial intermediary. The financial intermediary must apply and maintain an environmental and social management system, unless all of the financial intermediary's business activities have minimal or no environmental impacts or risks. 8. A project's environment category is determined by the category of its most environmentally sensitive component, including direct, indirect, induced, and cumulative impacts. Each proposed project is scrutinized as to its type, location, scale, sensitivity and the magnitude of its potential environmental impacts. The level of detail and comprehensiveness of the EIA and IEE are commensurate with the significance of the potential impacts and risks. This IEE is based on the scoping document and identifies the project as a Category B project B. Armenian Laws Governing Environmental Management and Assessment 9. RA laws affecting water and wastewater infrastructure and enforced by the environmental ministries include: RA Law on the Principles of Environmental Protection (1991); RA Water Code (2002); RA Land Code (2001) RA Law on Environmental Impact Assessment (1995); RA Law on Ensuring Sanitary-epidemiological Safety of the RA Population (1992) RA Law on the Protection and Use of Fixed Cultural and Historic Monuments and Historic Environment (1998) 10. RA Law on the Principles of Environmental Protection (1991). The Law on the Principles of Environmental Protection (1991) outlines the environmental protection policy of Armenia. Its purpose is to ensure state regulation of environmental protection and use within the territory of Armenia. It provides a legal basis for the development of environmental legislation regulating