E2549 REV REPUBLIC OF AZERBAIJAN Public Disclosure Authorized AMELIORATION AND IRRIGATION OPEN JOINT STOCK COMPANY INTERNATIONAL DEVELOPMENT ASSOCIATION Public Disclosure Authorized WATER USERS ASSOCIATION DEVELOPMENT SUPPORT PROJECT Public Disclosure Authorized ENVIRONMENTAL ASSESSMENT ENVIRONMENTAL MANAGEMENT AND MONITORING PLAN Public Disclosure Authorized 16 December 2010 2 WATER USERS ASSOCIATION DEVELOPMENT SUPPORT PROJECT ENVIRONMENTAL ASSESSMENT ENVIRONMENTAL MANAGEMENT AND MONITORING PLAN 1. INTRODUCTION 1.1 Background 1.2 Objective 1.3 World Bank safeguard policies 1.4 Methodology 1.5 Consultation process 2. ENVIRONMENTAL POLICY, LEGAL & INSTITUTIONAL FRAMEWORK 2.1 Policy context 2.2 Legal/regulatory framework for environmental management/assessment 2.3 Involvement of Azerbaijan in international cooperation on environment 2.4 Institutional framework for environmental management and assessment 2.5 Environmental monitoring 2.6 Regional processes 3. KEY NATURAL PARAMETERS OF AZERBAIJAN 3.1 Natural setting 4. ANALYSIS OF BASELINE CONDITIONS 4.1 Description of project 4.2 Analysis of project alternatives 4.3 Description of physical/biological environment 4.4 Description of socio-economic context 4.5 Description of stakeholders and beneficiaries 5. ASSESSMENT OF PRINCIPAL ENVIRONMENTAL AND SOCIAL IMPACTS AND PROPOSED PREVENTIVE ACTIONS AND MITIGATION MEASURES 5.1 Anticipated positive social and environmental impacts 5.2 Anticipated negative environmental and social impacts 6. ENVIRONMENTAL MANAGEMENT AND MONITORING PLAN 6.1 Objective of the EMMP 6.2 Environmental screening and review of sub-projects 6.3 Environmental monitoring program 6.4 Environmental capacity building and training program 6.5 Implementation arrangements 6.6 Implementation schedule 3 6.7 Proposed budget and funding sources for EMMP implementation ANNEXES ANNEX A – Public Consultations ANNEX B – International and Regional Conventions 4 LIST OF ACRONYMS ADCP Agricultural Development and Credit Project (World Bank) AIOJSC Amelioration and Irrigation Open Joint Stock Company ARN Autonomous Republic of Nakhchivan AZM Azerbaijani manat BP Bank procedure (World Bank) EA Environmental assessment EIA Environmental impact assessment EMMP Environmental management and monitoring plan FAO Food and Agriculture Organization of the United Nations FSU Former Soviet Union GoA Government of Azerbaijan GDP Gross domestic product GP Good practice (World Bank) IDP Internally displaced person IDSMIP Irrigation Distribution System and Management Improvement Project IUCN World Conservation Union ISF Irrigation service fee MMKC Main Mill Karabakh Collector MMMC Main Mill Mugan Collector MoA Ministry of Agriculture MENR Ministry of Ecology and Natural Resources MoH Ministry of Health NEAP National Environmental Action Plan NGO Non-governmental organization OP Operational policy (World Bank) PE Evapotranspiration PIU Project Implementation Unit RIDIP Rehabilitation and Completion of Irrigation and Drainage Infrastructure Project RSU Raion WUA Support Units SAC Samur-Apsheron Canal SSB State Supervisory Body SSC State Statistical Committee SSC Suspended sediment concentrations SSL Suspended sediment loads US$ United States dollars WB World Bank WSF WUA Support Fund WUA Water users association WUAP Water users association development support project WWF World Wildlife Federation ABBREVIATIONS ha hectare km kilometre lcpd litres per capita per day lps litres per second msl mean sea level 5 WATER USERS ASSOCIATION DEVELOPMENT SUPPORT PROJECT ENVIRONMENTAL ASSESSMENT ENVIRONMENTAL MANAGEMENT AND MONITORING PLAN 1. INTRODUCTION This Environmental assessment (EA) and Environmental management and monitoring plan (EMMP) has been prepared for the proposed Water users association development support project (WUAP), to be co-financed by the Government of Azerbaijan (GoA) and the World Bank, in order to ensure that the project (i) incorporates sound environmental and social management principles and practices and (ii) fully complies with all GoA environmental requirements and with applicable World Bank environmental safeguard policies. 1.1 Background The WUAP will be the World Bank’s third project in the irrigation and drainage sector in Azerbaijan and is a direct follow-up to the existing Irrigation Distribution System and Management Improvement Project (IDSMIP), which became effective in 2003 and is scheduled to close in September 2010. The objective of the IDSMIP was to improve irrigation water management by providing support to (i) development of Azerbaijan’s emerging water users’ associations (WUAs) and. the Amelioration and Irrigation Open Joint Stock Company (AIOJSC) and (ii) selective rehabilitation and improvement of associated on-farm irrigation and drainage infrastructure. The infrastructure improvements were made, for the most part, on a demand- driven basis on farms that met certain eligibility criteria within the eleven project area raions (i.e. Aghjabedi, Beylagan, Geranboy, Imishli, Khachmaz, Quba, Saatli, Sabirabad, and Zardab in Azerbaijan; Babek and Sharur in the Autonomous Republic of Nakhchivan (ARN)). The project had three components: (1) Development of WUAs, (2) Irrigation and Drainage Infrastructure Rehabilitation, and (3) Project Management, which were implemented by a Project Implementation Unit (PIU) under the AIOJSC. As the positive results of the IDSMIP and the benefits to the rural economy and population became apparent, the GoA requested support from the World Bank for a larger-scale follow-up project. This proposed WUAP will build on the success of the IDSMIP and will have the same core components as the IDSMIP (i.e. WUA development and infrastructure rehabilitation), but it will extend the geographical coverage to an additional 16 raions (depending on project component), bringing the total to 27 raions covered by the project. Map 1 shows the 27 raions that comprise the project area for the WUAP. The on-farm irrigation and drainage infrastructure improvements will continue to be made on a demand-driven basis on farms that meet the eligibility criteria. A limited amount of off-farm infrastructure improvements will be undertaken as necessary to ensure effective delivery of water to the rehabilitated on-farm systems. The proposed project will be implemented by the same IDSMIP PIU under the AIOJSC. The PIU comprises a number of construction engineers who oversee the irrigation and drainage infrastructure improvements and includes an environmental specialist who oversees the environmental management plan and environmental monitoring programme established by the EA and EMMP for the IDSMIP. A more detailed description of the proposed project can be found below (see Section 4.1). 6 Map 1. Project Raions 1.2 Objective The objective of this EA (Sections 1-5 of the document) is to identify the significant environmental and social impacts of the proposed project (both positive and negative) and to specify appropriate preventive actions and mitigation measures (including monitoring) to prevent, eliminate or minimise any anticipated adverse impacts. The EMMP (Section 6 of the document) is the mechanism that ensures that the environmental prevention and mitigation measures identified, the screening and review process proposed, and the capacity-building and monitoring activities recommended will be properly undertaken during implementation of the proposed project. The EMMP also establishes the necessary institutional arrangements and proposes an implementation schedule for undertaking these EMMP activities, indicating their costs in the proposed project budget. This EA and EMMP build on the comprehensive EA and EMMP prepared for the IDSMIP, since the WUAP’s overall approach and basic project interventions will be the same. The EA has been updated, however, to reflect the particular environmental and socio-economic characteristics of the new project raions; the EMMP has been modified to reflect lessons learned during implementation of the IDSMIP. 1.3 World Bank safeguard policies The World Bank’s Integrated Safeguard Data Sheet for the WUAP classified it as a Category “B” project (requiring partial assessment), triggering the Bank’s safeguard policies for environmental assessment, pest management, involuntary resettlement, projects on international waterways, and safety of dams. The EA confirmed the Category “B” designation for the proposed project, finding no significant, irreversible, cumulative or long-term adverse impacts. In fact, the EA identified a number of positive impacts of the proposed project and negative impacts that could be effectively prevented or reduced through application of appropriate preventive actions or mitigation measures (see discussion of impacts in Section 5.). The EA also confirmed the application of the five specified safeguard policies to the WUAP. Four of the five policies are discussed below; the policy on involuntary resettlement has been dealt with separately. The EA also reviewed application of the Bank’s safeguard policy for natural habitats to the project. The EA determined that the project, as currently proposed, does not trigger any of the remaining safeguard policies involving forests, physical cultural resources, indigenous peoples, or projects in disputed areas. 1.3.1 Environmental assessment (OP1 4.01, BP2 4.01, GP3 4.01). The anticipated environmental and social impacts of the irrigation and drainage rehabilitation component of the proposed project trigger this safeguard policy. Because the anticipated adverse impacts will not