E4723 Public Disclosure Authorized Geothermal Exploratory Drilling Project Karkar Geothermal Site, Armenia Public Disclosure Authorized Public Disclosure Authorized ENVIRONMENTAL AND SOCIAL IMPACT ASSESSMENT REPORT AND MANAGEMENT PLAN Public Disclosure Authorized April 2015 Final ESIA and ESMP Exploratory Drilling at Karkar Geothermal Site Table of Contents Abbreviations and Acronyms .................................................................................................. iii Executive Summary ..................................................................................................................... iv 1 Project Description ................................................................................................................ 4 1.1 Scope of the Study........................................................................................................................ 8 1.2 Procedures and Methodology ................................................................................................. 8 2 Legal and Policy Framework .............................................................................................. 9 2.1 Institutional Framework and National Requirements .................................................. 9 2.2 International Agreements ratified by the Republic of Armenia ............................... 14 2.3 Other Requirements ................................................................................................................. 14 3 Physical and Natural Environment ................................................................................ 15 3.1 General Environmental and Ecology .................................................................................. 15 3.1.1 Investigation Area ............................................................................................................................... 15 3.1.2 Geography .............................................................................................................................................. 17 3.1.3 Geology, Seismic Situation and Soil ............................................................................................. 18 3.1.4 Meteorology ........................................................................................................................................... 21 3.1.5 Forests and Wetlands ........................................................................................................................ 22 3.1.6 Flora and Fauna ................................................................................................................................... 23 3.1.7 Protected Areas .................................................................................................................................... 28 3.2 Socio-Economic Conditions .................................................................................................... 29 3.2.1 Population within the Investigation Area ................................................................................. 29 3.2.2 Historical and Cultural Sites ........................................................................................................... 30 3.2.3 Indigenous Peoples ................................................................ Error! Bookmark not defined. 3.2.4 Gender Aspects ..................................................................................................................................... 30 3.2.5 Land Use Patterns and Agriculture .............................................................................................. 30 3.2.6 Livelihood and Housing .................................................................................................................... 30 4 Potential Impacts of the Exploration Program ........ Error! Bookmark not defined. 4.1 Potential Impacts of Construction of Exploration Program Components............. 32 4.2 Potential Impacts of Drilling and Decommissioning .................................................... 37 5 Impact Mitigation ................................................................................................................. 41 5.1 Mitigation Measures ............................................................... Error! Bookmark not defined. 5.1.1 Floral Biodiversity Protection ........................................................................................................ 41 5.1.2 Faunal Biodiversity Protection ...................................................................................................... 42 5.1.3 Cultural Resource Protection ......................................................................................................... 42 5.1.4 Water Supply and Management .................................................................................................... 42 5.1.5 Well Construction & Groundwater Protection ........................................................................ 43 5.1.6 Erosion Control and Soil Conservation ...................................................................................... 44 5.1.7 Drilling Fluids Management............................................................................................................ 44 5.1.8 Mud Sump Construction and Management .............................................................................. 45 5.1.9 Local Consultation .................................................................. 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Bookmark not defined. 5.1.10 Fuel & Hazardous Materials Management ........................................................................... 46 5.1.11 Solid & Liquid Waste Management ......................................................................................... 46 5.1.12 Materials Storage / Staging Areas ........................................................................................... 47 5.1.13 Living Facilities Management ................................................................................................... 47 5.1.14 Vehicular Traffic ............................................................................................................................. 47 5.1.15 Worker Health & Safety ............................................................................................................... 47 i Final ESIA and ESMP Exploratory Drilling at Karkar Geothermal Site 5.1.16 Worker Code of Conduct ................................................. 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Bookmark not defined. 5.1.17 Emergency Preparedness & Response .................................................................................. 48 5.2 Seasonal Closures ...................................................................................................................... 49 5.3 Decommissioning ...................................................................................................................... 50 5.3.1 Site Clean-up and Remediation ..................................................................................................... 50 5.3.2 Well Plugging ........................................................................................................................................ 50 6 Environmental Management Plan: Environmental Management Matrix ......... 52 6.1 Environmental Management Matrix – Design and Pre-Construction Phase ........ 52 6.2 Environmental Management Matrix –Construction and Drilling Phase ................ 55 6.3 Environmental Management Matrix – Decommissioning Phase (if no further development is planned) ...................................................................................................................... 60 6.4 Environmental Monitoring Plan .......................................................................................... 61 7 Development of an Operating Geothermal Power Plant ........................................ 65 8 Proposed Approach for Public Consultations .......... 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Annex 1: List of Persons met .................................................................................................81 Annex 2: References…..............................................................................................................82 Annex 3: Figures and Tables .................................................................................................85 Annex 4: Documented process / Minutes of public consultation .............................87 ii Final ESIA and ESMP Exploratory Drilling at Karkar Geothermal Site ABBREVIATIONS AND ACRONYMS AMD Armenian Dram APMHC Agency for the Protection of Monument of History and Culture asl Average Sea Level basis (reference altitude measurements) BOP Blowout Preventer CFP Chance Finds Procedure dBa An expression of the relative loudness of sounds in air as perceived by the human ear EA Environmental Assessment EECCA Countries of Eastern Europe, Caucasus and Central Asia EIA Environmental Impact Assessment EMP Environmental Management Plan ESIA Environmental and Social Impact Assessment GEF Global Environment Facility GoA Government of Armenia H2S Hydrogen Sulfide IBA Important Bird Area IBRD International Bank for Reconstruction and Development (World Bank) IP Investment Plan IPP Independent Power Producer Ka Thousands of Years Ago (Geology) L/s Liters per second M2 Public paved highway routed by Villages of Tsghuk, Sarnakunk, and Spandaryan Ma Millions of Years ago (Geology) Marz Administrative Unit, comparable to County or