750 Kv Zaporizka – Kakhovska Transmission Line and 330 Kv Tl Diversions Project (Zaporizha Oblast, Kherson Oblast)

750 Kv Zaporizka – Kakhovska Transmission Line and 330 Kv Tl Diversions Project (Zaporizha Oblast, Kherson Oblast)

750 KV ZAPORIZKA – KAKHOVSKA TRANSMISSION LINE AND 330 KV TL DIVERSIONS PROJECT (ZAPORIZHA OBLAST, KHERSON OBLAST) DRAFT FINAL ESIA REPORT Prepared for: Prepared by: MERCADOS – ENERGY MARKETS INTERNATIONAL Together with: RED ELECTRICA DE ESPAÑA ERM IBERIA ENERGY CONSULTING GROUP July 2009 Project ID: MI 1083 MERCADOS EMI 750 KV ZAPORIZKA – KAKHOVSKA TRANSMISSION LINE AND 330 KV TL DIVERSIONS PROJECT (ZAPORIZHA OBLAST, KHERSON OBLAST) DRAFT FINAL ESIA REPORT CONTENTS Project No. P98267 Ukrenergo TL ZNPP-Kakhovska - Draft Final ESIA Report – July 2009 MERCADOS EMI Contents I INTRODUCTION ............................................................................................... I-1 1.1. BACKGROUND OF ASSIGNMENT ............................................................ I-1 1.2. STRATEGIC REVIEW – PROJECT RATIONALE ........................................... I-2 1.3. PROJECT OWNER .............................................................................. I-5 II PROJECT STATUS AND REGULATORY FRAMEWORK........................................II-1 1. UKRAINIAN REQUIREMENTS.......................................................................... II-1 1.1. GENERAL LEGAL FRAMEWORK.............................................................II-1 1.2. LOCAL ENVIRONMENTAL IMPACT ASSESSMENT .......................................II-3 1.3. PROJECT PERMITTING AND PLANNING PROCESS .....................................II-4 1.4. LAND ASPECTS................................................................................II-7 1.5. HEALTH ASPECTS - ELECTRIC MAGNETIC RADIATION (EMR) ..................II-11 2. INTERNATIОNAL GOOD PRACTICE STANDARDS AND EBRD/EIB REQUIREMENTS ................II-12 2.1. ENVIRONMENTAL AND SOCIAL IMPACT ASSESSMENT .............................II-12 2.2. INTERNATIONAL STANDARDS FOR COMPENSATION................................II-12 2.3. INTERNATIONAL STANDARDS ON EMR ...............................................II-13 3. COMPARISON OF UKRAINIAN AND INTERNATIONAL STANDARDS.................................II-14 III DESCRIPTION OF THE PROJECT ................................................................. III-1 1. SALIENT FEATURES OF THE PROJECT .............................................................. III-1 2. TRANSMISSION LINE................................................................................. III-1 2.1. ROUTE OF THE TRANSMISSION LINES ................................................. III-1 2.2. TECHNICAL FEATURES OF THE LINE.................................................... III-3 3. SUBSTATIONS ...................................................................................... III-10 3.1. NEW SUBSTATION 750 KV KAKHOVSKA ........................................... III-10 3.2. 330/110/35/6 KV NOVOKAKHOVSKA SUBSTATION ......................... III-12 4. OTHER FACILITIES ................................................................................. III-14 5. CONSTRUCTION .................................................................................... III-16 5.1. ORGANIZATION OF CONSTRUCTION ACTIVITIES .................................. III-16 5.2. TRANSMISSION LINE CONSTRUCTION .............................................. III-16 5.3. SUBSTATION CONSTRUCTION ......................................................... III-19 5.4. OTHER FACILITIES ....................................................................... III-20 5.5. CONSTRUCTION EQUIPMENT .......................................................... III-20 5.6. OPERATION................................................................................ III-21 5.7. MAINTENANCE ............................................................................ III-23 5.8. DECOMMISSIONING ..................................................................... III-23 IV ALTERNATIVES STUDIED ............................................................................. IV-1 1. ZERO-OPTION/NO ACTION ...........................................................................IV-1 2. OTHER ROUTES BETWEEN ZNPP AND KAKHOVSKA................................................IV-2 3. OPTIMISATION OF PROPOSED ROUTES ..............................................................IV-3 Project No. P98267 Ukrenergo TL ZNPP-Kakhovska - Draft Final ESIA Report – July 2009 1 MERCADOS EMI V BASELINE ........................................................................................................V-1 1. GEOGRAPHIC UNITS AND GEOMORPHOLOGY ........................................................V-1 2. GEOLOGY AND SEISMIC................................................................................V-2 3. SOIL AND SUBSURFACE ...............................................................................V-3 4. GROUNDWATER ........................................................................................V-4 5. SURFACE WATER.......................................................................................V-5 6. CLIMATE CONDITIONS.................................................................................V-7 7. FLORA, FAUNA AND HABITATS........................................................................V-7 7.1. DATA BASIS ....................................................................................V-7 7.2. PROTECTED AREAS ON NATIONAL AND LOCAL LEVEL .................................V-8 7.3. PROTECTED AREAS ON INTERNATIONAL LEVEL ......................................V-18 8. SOCIOECONOMIC CONDITIONS AND LAND USE ................................................... V-23 9. LANDSCAPE AND SCENERY .......................................................................... V-28 10. CULTURAL HERITAGE AND ARCHAEOLOGICAL SITES AND RECREATION ........................ V-28 VI ENVIRONMENTAL AND SOCIAL IMPACT ASSESSMENT ................................. VI-1 1. IMPACT ASSESSMENT GEOLOGICAL STRUCTURES AND SOILS ...................................VI-2 1.1. IMPACTS FROM CONSTRUCTION ......................................................... VI-2 1.2. IMPACTS FROM PHYSICAL PROJECT STRUCTURES ................................... VI-2 1.3. IMPACTS FROM OPERATION AND MAINTENANCE .................................... VI-3 1.4. MITIGATION MEASURES................................................................... VI-3 2. IMPACTS ON DEEP GROUNDWATER ..................................................................VI-3 2.1. IMPACTS FROM CONSTRUCTION ......................................................... VI-3 2.2. IMPACTS FROM PHYSICAL PROJECT STRUCTURES.................................... VI-4 2.3. IMPACTS FROM OPERATION AND MAINTENANCE .................................... VI-4 2.4. MITIGATION MEASURES................................................................... VI-4 3. IMPACTS ON SURFACE WATERS .....................................................................VI-4 3.1. IMPACTS FROM CONSTRUCTION ......................................................... VI-4 3.2. IMPACTS FROM PHYSICAL PROJECT STRUCTURES.................................... VI-5 3.3. IMPACTS FROM OPERATION AND MAINTENANCE .................................... VI-5 3.4. MITIGATION MEASURES................................................................... VI-5 4. IMPACTS ON AIR AND CLIMATE ......................................................................VI-6 4.1. IMPACTS FROM CONSTRUCTION ......................................................... VI-6 4.2. IMPACTS FROM PHYSICAL PROJECT STRUCTURES.................................... VI-6 4.3. IMPACTS FROM OPERATION AND MAINTENANCE .................................... VI-6 4.4. MITIGATION MEASURES................................................................... VI-6 5. IMPACTS ON FLORA, FAUNA AND HABITATS .......................................................VI-6 5.1. PROTECTED AREAS ON NATIONAL AND LOCAL LEVEL .............................. VI-7 5.2. PROTECTED AREAS ON INTERNATIONAL LEVEL ...................................... VI-8 5.3. CONCLUSION AND MITIGATION MEASURES......................................... VI-15 6. SOCIAL AND ECONOMIC IMPACT ASSESSMENT .......................................VI-16 Project No. P98267 Ukrenergo TL ZNPP-Kakhovska - Draft Final ESIA Report – July 2009 2 MERCADOS EMI 6.1. IMPACT ON LAND USE .................................................................... VI-16 6.2. IMPACTS FROM PHYSICAL PROJECT STRUCTURES .................................. VI-18 6.3. IMPACTS IN OPERATION AND MAINTENANCE ....................................... VI-19 6.4. MITIGATION MEASURES................................................................. VI-20 7. PROPERTY ISSUES, IMPACT ON INCOME ..........................................................VI-21 7.1. OVERVIEW OF LAND TENURE REGIME IN THE PROJECT AFFECTED AREA .... VI-21 7.2. TEMPORARY ECONOMIC IMPACTS DURING CONSTRUCTION..................... VI-22 7.3. OTHER TEMPORARY IMPACTS DURING CONSTRUCTION.......................... VI-23 7.4. PERMANENT IMPACTS - INVOLUNTARY RESETTLEMENT .......................... VI-25 7.5. PERMANENT IMPACT DUE TO LAND WITHDRAWAL AND RESTRICTION OF LAND USE VI-28 7.6. COMPENSATION DUE TO RESTRICTION OF USE AND DURING OPERATION AND MAINTENANCE ....................................................................................... VI-29 7.7. MITIGATION MEASURES................................................................. VI-30 8. IMPACTS ON VISUAL AMENITY AND SCENERY ....................................................VI-32 8.1. IMPACTS FROM CONSTRUCTION ....................................................... VI-32 8.2. IMPACTS FROM PHYSICAL

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