SFG2732 Public Disclosure Authorized THE STRATEGIC ENVIRONMENTAL, SOCIAL AND CULTURAL HERITAGE ASSESSMENT OF THE REGIONAL DEVELOPMENT AND TOURISM DEVELOPMENT STARTEGIES OF SAMTSKHE-JAVAKHETI AND MTSKETA-MTIANETI Public Disclosure Authorized Third Regional Development Project Public Disclosure Authorized Public Disclosure Authorized December, 2016 Abbreviations GNTA Georgia National Tourism Administration EIA Environnemental Impact Assessment EMP Environmental Management Plan RDS Regional Development Strategy RTDS Regional Tourism Development Strategy MDF Municipal Development Fund of Georgia MoA Ministry of Agriculture MoENRP Ministry of Environment and Natural Resources Protection of Georgia MoCMP Ministry of Culture and Monument Protection MESD Ministry of Economic and Sustaineble Developmnet NACHP National Agency for Cultural Heritage Protection PIU Project Implementation Unit RDP Regional Development Project SECHSA Strategic Environmental, Cultural Heritage and Social Assessment WB World Bank Contents EXECUTIVE SUMMARY ............................................................................................................................... 1 1. INTRODUCTION ................................................................................................................................... 12 1.1 THIRD REGIONAL DEVELOPMENT PROJECT (RDP III) ..................................................... 12 1.2 REGIONAL AND SECTORAL CONTEXT: RDS AND RTDS FOR SAMTSKHE- JAVAKHETI AND MTSKHETA-MTIANETI REGIONS ................................................................... 13 1.3 REGIONAL DEVELOPMENT AND TOURISM DEVELOPMENT STRATEGIES FOR SAMTSKHE-JAVAKHETI AND MTSKHETA-MTIANETI REGIONS OF GEORGIA ................. 14 1.3.1. The Regional Development strategies for Samtskhe-Javakheti and Mtskheta-Mtianeti Regions ......................................................................................................................................................... 14 1.3.2 The Regional Tourism Development strategies for Samtskhe-Javakheti and Mtskheta- Mtianeti Regions .......................................................................................................................................... 14 The RTDS for Mtskheta-Mtianeti Region ................................................................................................ 15 1.4. OBJECTIVES OF THE STRATEGIC ENVIRONMENTAL, CULTURAL HERITAGE AND SOCIAL ASSESSMENT (SECHSA) ........................................................................................................ 16 2. SOCIAL ENVIRONMENT, CULTURAL HERITAGE AND TOURISM DEVELOPMENT TRENDS IN SAMTSKHE-JAVAKHETI AND MTSKHETA-MTIANETI ............................................. 17 2.1 SAMTSKHE-JAVAKHETI: SOCIAL FEATURES, CULTURAL HERITAGE AND TOURISM DEVELOPMENT TRENDS .................................................................................................. 17 2.1.1 Social Profile of Samtskhe-Javakheti ............................................................................................... 17 2.1.2 Cultural Heritage of Samtskhe-Javakheti ...................................................................................... 22 2.1.3 Tourism Development Trends in Samtskhe-Javakheti .................................................................. 23 2.1.4 Natural Environment of Samtskhe-Javakheti ................................................................................. 23 2.2 MTSKHETA-MTIANETI: SOCIAL FEATURES, CULTURAL HERITAGE AND TOURISM DEVELOPMENT TRENDS ...................................................................................................................... 29 2.2.1 Social Profile of Mtskheta-Mtianeti .................................................................................................. 29 2.2.2 Cultural Heritage of Mtskheta-Mtianeti ......................................................................................... 35 2.2.3 Tourism Development Trends in Mtskheta-Mtianeti .................................................................... 37 2.2.4 Natural Environment of Mtskheta-Mtianeti Region ..................................................................... 38 3. LEGAL AND ADMINISTRATIVE SYSTEM IN GEORGIA FOR ENVIRONMENTAL AND CULTURAL HERITAGE PROTECTION .................................................................................................. 46 3.1 CULTURAL HERITAGE PROTECTION AND SPATIAL PLANNING ................................... 46 3.1.1 Administrative System ..................................................................................................................... 46 3.1.2 Legal System ..................................................................................................................................... 47 3.2 ENVIRONMENTAL PROTECTION .............................................................................................. 50 3.2.1 Administrative Structure ................................................................................................................... 50 3.2.2 Legal framework ............................................................................................................................... 51 3.2.2.1 Framework Legislation ................................................................................................................... 51 3.2.2.2 Legislation Related to Environmental Permitting...................................................................... 51 3.2.2.3 Other Environmental Laws ............................................................................................................ 52 3.2.2.4 International Commitments .......................................................................................................... 53 3.3 LOCAL SELF-GOVERMENT CODE ............................................................................................ 53 4. ASSESSMENT OF RISKS TO THE NATURAL ENVIRONMENT, SOCIAL STRATA AND PHYSICAL CULTURAL RESOURCES OF THE TARGET REGIONS ................................................ 55 4.1 IMPACTS RELATED TO THE REGIONAL DEVELOPMENT STRATEGIES....................... 55 4.1.1 Assessment of Risks to the Natural Environment ........................................................................... 55 4.1.1.1 Agriculture: ................................................................................................................................... 55 4.1.1.2 Energy Sector.................................................................................................................................. 58 4.1.1.3 Promoting development of entrepreneurship in the region through efficient services supporting small and medium-sized enterprises: ..................................................................................... 59 4.1.1.4 Infrastructure: Local and Regional roads, water supply, sewerage and wastewater treatment facilities; natural gas supply ....................................................................................................................... 59 4.1.1.5 Exploration of Inert Materials ...................................................................................................... 60 4.1.1.6 Environmental Protection Component of RDSs .......................................................................... 61 Rational use of freshwater, mineral water and forest resources ............................................................ 62 4.1.2 Assessment of RDS Related Risks to the Social Strata ................................................................... 62 4.2 IMPACTS RELATED TO THE REGIONAL TOURISM DEVELOPMENT STRATEGIES .. 67 4.2.1 Tier 1 Actions .................................................................................................................................... 68 4.2.2 Tier 2 actions are aimed to address medium and long-term impacts: ........................................ 70 4.2.3 Impacts on Biophysical Environment ............................................................................................ 71 4.2.4 Social Impacts Related to RTDSs ................................................................................................... 73 4.2.5 Impacts on Cultural Heritage ......................................................................................................... 76 5. STAKEHOLDER ANALYSIS ................................................................................................................. 78 5.1 Stakeholders ......................................................................................................................................... 78 5.2 Project Developing and Implementing Agencies .......................................................................... 79 5.3 Regulatory Bodies ........................................................................................................................... 80 5.4 Beneficiaries and Affected Communities and Social Groups ............................................................ 81 5.5 Local Businesses ................................................................................................................................. 84 6. ANALYSIS OF ALTERNATIVES ............................................................................................................ 86 6.1 INTRODUCTION ............................................................................................................................... 86 6.2 REGIONAL DEVELOPMENT STRATEGY FOR