Environmental Assessment Report Initial Environmental Examination Document Stage: Draft Project Number: TA-7531 (TKM) September 2010 TKM: Proposed North-South Railway Project Prepared by Ministry of Railway Transportation for the Asian Development Bank (ADB). The 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. i LIST OF ACRONYMS ADB – Asian Development Bank BOD – biochemical oxygen demand CO – carbon monoxide COD – chemical oxygen demand EA – Executing Agency EMMP – Environmental Management and Monitoring Plan EMC – Environmental Monitoring Centre GT – Government of Turkmenistan IDFF – Institute for Deserts Flora and Fauna IEE – Initial Environmental Examination MNT – Turkmen New Manat MoNP – Ministry of Nature Protection MoR – Ministry of Railway Transportation MPE – Maximum Permissible Emissions MPL – Maximum Permissible Loads NIDFF – National Institute of Desserts, Flora and Fauna NOx – nitrogen oxides NO2 – nitrogen dioxide ROW – right-of-way SO2 – sulfur dioxide TSP – total suspended particles ii CONTENTS EXECUTIVE SUMMARY ....................................................................................................................1 A. Project Description....................................................................................................... 1 B. Description of the Environment .................................................................................... 1 C. Environmental Impacts and Mitigation Measures ........................................................ 2 D. Public Consultations..................................................................................................... 3 E. Environmental Management Plan ................................................................................ 4 F. Conclusions..................................................................................................................4 I. INTRODUCTION............................................................................................................................... 5 II. DESCRIPTION OF THE PROJECT .............................................................................................6 A. Project Scope............................................................................................................... 6 B. Project General Location.............................................................................................. 8 III. EXISTING ENVIRONMENTAL FRAMEWORK AND CONDITIONS......................................9 A. Environmental Framework ........................................................................................... 9 A.1 Administrative Framework .................................................................................... 9 A.2 Policy and Legal Framework............................................................................... 10 A.3 Environmental Assessment Requirements ......................................................... 12 A.3.1 Environmental Assessment Requirements of ADB...................................... 12 A.3.2 EIA Requirements of Turkmenistan............................................................. 14 B. Environmental Conditions in the Project Area............................................................ 15 B.1 Physical Environment......................................................................................... 15 B.2 Ecological Environment ...................................................................................... 17 C. Economic Development............................................................................................. 19 IV. PROJECT ENVIRONMENTAL IMPACTS AND MITIGATIVE MEASURES.......................20 A. Air Quality................................................................................................................... 21 B. Water and Wastewater............................................................................................... 22 C. Noise and Vibration.................................................................................................... 23 D. Soil and Materials....................................................................................................... 24 E. Hazardous Materials & Waste Management.............................................................. 27 F. Socioeconomic Environment...................................................................................... 27 G. Protected Areas and Archaeological Sites................................................................. 28 H. Flora and Fauna......................................................................................................... 29 I. Land Acquisition and Resettlement............................................................................ 31 J. Induced Impacts......................................................................................................... 31 iii V. INSTITUTIONAL REQUIREMENTS AND ENVIRONMENTAL MONITORING PLAN.......32 A. Institutional framework for Environmental Management ............................................ 32 B. Environmental Monitoring Program Recommendations............................................. 33 VI. ECONOMIC ASSESSMENT ......................................................................................................40 VII. PUBLIC CONSULTATION AND INFORMATION DISCLOSURE .......................................41 VIII. FINDINGS AND RECOMMENDATIONS ...............................................................................43 IX. CONCLUSIONS ...........................................................................................................................43 Appendix I: ......................Maps and Other Relevant Environmental and Ecological Information ..............................................................................................................................................................45 Appendix II: ............................................ Selected Photos and Observations during the Site Visit ..............................................................................................................................................................49 Appendix III: ................................................................. Comparative Analysis of Energy Utilization ..............................................................................................................................................................52 Appendix IV: Water and Air Quality Standards..............................................................................54 Appendix V:.................................... Summary of Selected Environmental Laws of Turkmenistan ..............................................................................................................................................................56 Appendix VI:.............................................................. Participants in Public Consultation Meetings ..............................................................................................................................................................58 1 EXECUTIVE SUMMARY A. Project Description 1. Based on its 2007 Presidential Decree, the Government of Turkmenistan (GT) signed a multilateral agreement in 2007, with its neighboring countries to construct new railway tracks to develop the North-South railway corridor for promoting regional trade, cooperation and integration. This is the region’s key route for transporting bulk goods, such as oil and oil products, mineral resources, agricultural products, and textiles. 2. The significance of the Project is that the proposed north-south railway line will improve Turkmenistan's accessibility to Kazakhstan, the Arabian Gulf countries, the Russian Federation, and South Asia; and increase regional trade. The Project will also contribute to sustainable economic growth in Turkmenistan and development of an integrated, efficient railway system in the region. The Project will reduce the transport cost, cut travel time, and improve accessibility to rural areas of the country. This will generate benefits beyond railway transport cost and time savings. B. Description of the Environment 3. The proposed Project comprises of (i) power supply, signaling and telecommunication for the recently completed 311 km section of the railway between Bereket and Buzhun in Turkmenistan; (ii) procurement of equipment for track maintenance and other facilities for asset management; (iii) improving the institutional capacity of the Ministry of Railway Transportation (MRT); and (iv) consulting services for project design review, and implementation supervision services. 4. The Project is entirely located within the Balkan Province in the far west of the country, bordering Uzbekistan, Kazakhstan, the Caspian Sea, and Iran. The Province has an area of 139,270 square kilometers and a population of approximately 553,500 people. Its population density of 3.3 persons per square kilometer is the lowest in Turkmenistan. 5. Geographically, the proposed Project traverses the central north-south axis of the Balkan Province. The topography is characterized by an increasing altitude towards the north with elevations reaching over 500 m. The terrain is flat-to-rolling sandy desert with dunes and depressions found along the desert. The climate is characterized as extremely