October 2016 High Voltage Electric Networks Caucasus Energy Network Project Environmental and Social Impact Assessment Final Version Deliverable 04 7608A01/FICHT-17623481-v1 Final ESIA Caucasus Energy Network Project Table of Contents 1. Executive Summary 1-1 1.1 Project Description 1-1 1.2 Objectives and Methodology of the ESIA 1-2 1.3 Legal and Regulatory Framework 1-3 1.4 Analysis of Alignment Options 1-4 1.5 Baseline Conditions 1-8 1.6 Disclosure, Consultation, and Participation 1-11 1.7 Impact Assessment 1-12 1.8 Environmental and Social Management Plan 1-12 1.9 Grievance Redress Mechanism 1-17 1.10 Costs of Implementation of the ESMP 1-17 1.11 Conclusion 1-18 2. Introduction 2-1 2.1 Project Context 2-1 2.2 Main Objective of the Project 2-1 2.3 Overview of Project Phases 2-3 2.4 Scope of Work of the Project 2-4 2.5 Technical Design 2-5 2.6 Location of Substations and OHLs considered in this ESIA 2-6 2.6.1 Substations and connection lines to existing OHLs 2-6 2.6.2 Location of 400/ 500 kV Overhead Transmission Lines 2-11 3. Objectives and Methodology of the ESIA 3-1 3.1 Scope and Objectives of the ESIA 3-1 3.2 Procedures and Methodology 3-2 4. Legal and Regulatory Framework 4-1 4.1 National Requirements 4-1 4.2 International Agreements 4-9 4.3 International Requirements 4-9 4.4 Gap Analysis 4-11 5. Analysis of Alignment Options 5-1 5.1 The “No Project” Alternative 5-1 5.2 Comparison of Options and Preferred Alignment 5-1 7608A01/FICHT-17623481-v1 I Final ESIA Caucasus Energy Network Project 5.2.1 Option 1 - OHL routing according to Feasibility Study 5-2 5.2.2 Option 2 - Along 330 kV OHL corridor through DNP 5-2 5.2.3 Option 3 - Through Gosh - Valley (east of Dilijan NP) 5-3 5.2.4 Option 4 - Along 220 kV OHL Gugark-1 5-3 5.2.5 Option 4a - Variant of Option 4 5-4 5.2.6 Option 5 - Along Debed River Valley 5-5 5.2.7 Comparison of Options 5-8 5.3 Assessment of Options 5-13 5.4 Conclusion & Recommendation 5-15 6. Baseline Conditions 6-1 6.1 General Environment and Ecology 6-1 6.1.1 Study area 6-1 6.1.2 Topography 6-2 6.1.3 Meteorology and climate 6-3 6.1.4 Geology and seismicity 6-6 6.1.5 Soils 6-9 6.1.6 Water resources 6-10 6.1.7 Flora and fauna 6-11 6.1.8 Forests 6-16 6.1.9 Landscape 6-18 6.1.10 Protected and sensitive areas 6-19 6.2 Socio-Economic Conditions 6-26 6.2.1 Population in the project area 6-26 6.2.2 Historical and cultural sites 6-32 6.2.3 Gender aspects 6-34 6.2.4 Land use pattern and agriculture 6-35 6.2.5 Living standards 6-36 7. Environmental and Social Impacts and their Management 7-1 7.1 Environmental Impacts and their Mitigation during Design 7-1 7.1.1 Line routing 7-1 7.1.2 Access roads 7-2 7.2 Environmental Impacts and their Mitigation during Construction 7-3 7.2.1 Landscape 7-3 7.2.2 Flora and fauna 7-4 7.2.3 Soil erosion 7-8 7608A01/FICHT-17623481-v1 II Final ESIA Caucasus Energy Network Project 7.2.4 Soil and water resources 7-10 7.2.5 Waste 7-11 7.2.6 Noise 7-12 7.2.7 Climate change and air quality 7-12 7.3 Environmental Impacts and their Mitigation during Operation 7-13 7.3.1 Flora 7-13 7.3.2 Fauna 7-14 7.3.3 Waste 7-17 7.3.4 Noise 7-17 7.3.5 Climate change and air quality 7-18 7.4 Social Impacts and their Mitigation during Construction 7-18 7.4.1 Land use and land acquisition 7-18 7.4.2 Involuntary resettlement 7-20 7.4.3 Historical and cultural sites 7-22 7.4.4 Health and safety 7-25 7.4.5 Infrastructure/ cumulative impacts 7-26 7.4.6 Gender aspects 7-29 7.4.7 Vulnerable people 7-30 7.4.8 Local workforce 7-31 7.5 Social Impacts and their Mitigation during Operation 7-31 7.5.1 Land use 7-31 7.5.2 Health and safety 7-31 7.6 Summary of Impacts 7-34 8. Environmental and Social Management Plan 8-1 8.1 Mitigation Measures 8-2 8.1.1 Mitigation measures for the design and pre-construction phase 8-2 8.1.2 Mitigation measures for the construction phase 8-3 8.1.3 Mitigation measures for the operation and maintenance phase 8-15 8.2 Environmental and Social Monitoring 8-20 8.2.1 Monitoring measures during design and pre-construction phase 8-20 8.2.2 Monitoring measures during construction phase 8-23 8.2.3 Monitoring measures during operation and maintenance phase 8-43 8.3 Implementation Arrangements and Reporting Needs 8-48 8.4 Training of HVEN Staff 8-51 8.5 Disclosure, Consultation, and Participation 8-51 7608A01/FICHT-17623481-v1 III Final ESIA Caucasus Energy Network Project 8.6 Grievance Redress Mechanism 8-53 8.7 Costs of Implementation of ESMP 8-57 9. Conclusion 9-1 10. References 10-1 11. Appendices 11-1 7608A01/FICHT-17623481-v1 IV Final ESIA Caucasus Energy Network Project Acronyms and Abbreviations BtB Back-to-Back CC Construction Contractor CCGT Combined Cycle Gas Turbine Power Plant CE Consultant Engineer CJSC Closed Joint Stock Company dB Decibel DNP Dilijan National Park EHS Environmental, Health, and Safety EHV Extra High Voltage EIA Environmental Impact Assessment EMF Electric and Magnetic Fields EPSO Electro Power System Operator, Armenia ESIA Environmental and Social Impact Assessment ESMP Environmental and Social Management Plan GDP Gross Domestic Product GPS Global Positioning System GRM Grievance Redress Mechanism GTPP Gas Turbine Power Plant HPP Hydro Power Plant HSEMS Health, Safety, and Environment Management System HSMP Health and Safety Management Plan HSMS Health and Safety Management System HVAC High Voltage Alternating Current HVDC High Voltage Direct Current HVEN High Voltage Electric Networks, Armenia ICNIRP International Commission on Non-Ionizing Radiation Protection IFC International Finance Corporation kV Kilo Volts MW Mega Watts NGO Non-Governmental Organization NP National Park OPGW Optical Fiber Ground Wire OHL Overhead Transmission Line PAP Project Affected People PIC Project Implementation Consultant PPE Personal Protective Equipment RA Republic of Armenia RAP Resettlement Action Plan ROW Right of Way RPF Resettlement Policy Framework RTEP Regional Power Transmission Extension Plan SNCO State Non-Commercial Organization s/s Substation ToRs Terms of Reference TPP Thermal Power Plant USD US Dollar 7608A01/FICHT-17623481-v1 V Final ESIA Caucasus Energy Network Project 1. Executive Summary 1.1 Project Description The Caucasus Energy Network Project aims to provide a reliable, flexible and mutually profitable cross-border energy exchange within the South Caucasus by connecting the Armenian and the Georgian power grid via 500/400/220 kV High Voltage Direct Current BtB Converter Station (HVDC BtB) in Ayrum and therefore will represent a regional integration of energy systems among Georgia, Iran, and Russia. The connection from the Georgian side will be effected via a 500 kV OHL from the new substation Marneuli, the connection from the Armenian side via a 400 kV OHL from new substation Ddmashen. The Project includes construction of new 500/ 400/ 220 kV BtB s/s Ayrum and new 400/ 220 kV s/s Ddmashen as well as connection of s/s Ayrum to the already existing 220 kV OHL Alaverdi-2 - Gardabani (Georgia) and connections of s/s Ddmashen to already existing 220 kV OHLs Marash and Noraduz and to 330 kV OHL Artarbekyan. For replacement of 220 kV Lori OHL and 110 kV OHLs Tumanyan-1 and - 2 Fichtner prepared an ESIA Study and a Resettlement Policy Framework (RPF) in 2014. The ESIA and RPF were conducted under the given pre- condition that most of the existing towers of the lines could remain. In order to keep environmental and social impacts of rehabilitation of these lines as low as possible, the corridor of the existing lines will be used under consideration of the bypasses already proposed in the ESIA for Lori and Tumanyan-1 and -2 OHLs. Rehabilitation of these lines will be implemented after construction and commissioning of BtB s/s Ayrum and 400 kV OHL Ayrum - Ddmashen, as Lori line can then be disconnected, dismantled and reconstructed in the already existing line corridor under consideration and extension of ESIA and RPF reports prepared by Fichtner in 2014. These studies will be amended based on the current conditions. As the final location of planned Hyusisayin GTPP and the relating line routing of connection line to 400 kV OHL Ayrum - Ddmashen is still not known, the environmental and social impacts of this connection line cannot be evaluated at this time. However, the implementation of a double circuit line with only one circuit installed (at this stage) is foreseen in the project. 7608A01/FICHT-17623481-v1 1-1 Final ESIA Caucasus Energy Network Project 1.2 Objectives and Methodology of the ESIA The Caucasus Energy Network Project includes construction of new OHLs and substations which will have several impacts on various environmental and social components.