Project „Construction of the 750 kV Rivne NPP – Kyiv overhead transmission line with an extension of the 750 kV Kyiv substation and diversion of the 750 kV overhead transmission line from Khmelnitsk NPP” ENVIRONMENTAL AND SOCIAL IMPACT ASSESSMENT (ESIA)1 May 2007 1 The ESIA has been prepared for meeting environmental requirements of the European Bank for Reconstruction and Development (EBRD) and European Investment Bank (EIB) that are considering the opportunity to finance the Project. The ESIA report is the main document with the help of which the EBRD and EIB will implement environmental assessment of the Project ESIA of Rivne NPP – Kyiv 750 kV transmission line Report prepared by KLC LAW FIRM in consortium with Mott MacDonald, Louis Berger, Kantor Management Consultants Acknowlegements The KLC LAW FIRM consortium would like to acknowledge the contributions of Michael Holgate, Kostas Batos, John Renshaw, Panagiota Maragou, Antony Wheeler, Irina Gallich, Oksana Rakovich, Nataliya Globina, Valentin Dereviankin and Volodymyr Tykhyy in the preparation of this ESIA. Revision Record Rev. Filename Date Reason for issue No Rivne – Kyiv 750 kV ESIA APR16 16 Apr 07 First Draft released to EBRD UKE 750 kV ESIA APR29 29 Apr 07 Update to incorporate EBRD comments UKE 750 kV ESIA ΜΑΥ07 7 May 07 Final Draft - Prior to UKE verification UKE 750 kV ESIA MAY21 21 May 07 Final Draft – Proof-read UKE 750 kV ESIA MAY26 final 28 May 07 Final Draft – Incorporating UKE comments UKE 750 kV ESIA MAY30 Eng 30 May 07 Final Draft released UKE 750 kV ESIA MAY30 Eng i 31-May-07 ESIA of Rivne NPP – Kyiv 750 kV transmission line Contents 1. NON-TECHNICAL SUMMARY.......................................................................................................... 1 1.1 INTRODUCTION ................................................................................................................................. 1 1.1.1 Project definition......................................................................................................................... 2 1.1.2 Project benefits............................................................................................................................ 2 1.2 LEGISLATION .................................................................................................................................... 3 1.2.1 Project permitting........................................................................................................................ 3 1.2.2 Ukrainian Land Legislation......................................................................................................... 4 1.3 CURRENT ENVIRONMENT AND SOCIO-ECONOMIC BASELINE ............................................................. 6 1.3.1 Natural environment.................................................................................................................... 6 1.3.2 Socio-economic issues ............................................................................................................... 10 1.3.3 Cultural environment................................................................................................................. 10 1.4 PROJECT DESCRIPTION .................................................................................................................... 11 1.4.1 The transmission lines ............................................................................................................... 11 1.4.2 Construction .............................................................................................................................. 12 1.4.3 Operations & maintenance........................................................................................................14 1.5 IDENTIFICATION AND CONSIDERATION OF ALTERNATIVES .............................................................. 15 1.5.1 No project option....................................................................................................................... 15 1.5.2 Alternative routes ...................................................................................................................... 16 1.6 PREDICTION AND ASSESSMENT OF IMPACTS AND MITIGATION MEASURES....................................... 16 1.6.1 High risk impacts before mitigation .......................................................................................... 17 1.6.2 Medium risk impacts before mitigation ..................................................................................... 18 1.6.3 Opportunities for positive impacts after mitigation................................................................... 18 1.6.4 Cumulative impacts ................................................................................................................... 19 1.7 ENVIRONMENTAL & SOCIAL MANAGEMENT PLAN (ESMP)........................................................... 23 1.8 PUBLIC CONSULTATION.................................................................................................................. 24 2. INTRODUCTION ................................................................................................................................ 25 2.1 THE ELECTRICITY GRID AND ITS FUNCTION..................................................................................... 26 2.2 PROJECT DEFINITION....................................................................................................................... 28 2.3 BOUNDARIES .................................................................................................................................. 29 2.4 PROJECT LOCATION AND CHARACTERISTICS ................................................................................... 29 2.5 PROJECT OWNER ............................................................................................................................. 29 3. STRATEGIC REVIEW OF THE PROJECT.................................................................................... 31 3.1 RATIONALE FOR THE PROJECT ........................................................................................................ 31 3.1.1 Overview of Ukrainian power System ....................................................................................... 31 3.1.2 Ukrainian Long Term Energy Strategy ..................................................................................... 32 3.1.3 Background to power generation in Western Ukraine .............................................................. 34 3.1.4 Present operational issues......................................................................................................... 34 3.1.5 Demand and Supply to the Kyiv Region .................................................................................... 35 3.1.6 Closure of the open distribution unit at Chernobyl NPP........................................................... 35 3.2 PROJECT BENEFITS ......................................................................................................................... 35 3.2.1 Improvement in electricity supply reliability ............................................................................. 35 3.2.2 Improving security of supply ..................................................................................................... 36 3.2.3 Enhanced prospects for economic development in the Kyiv region .......................................... 36 3.2.4 Reductions in transmission line electrical losses....................................................................... 36 3.2.5 Facilitate closure of open distribution unit at Chernobyl NPP ................................................. 36 3.2.6 Enhanced prospects for transmission equipment manufacturers and employees...................... 36 4. REGULATORY FRAMEWORK....................................................................................................... 37 UKE 750 kV ESIA MAY30 Eng ii 31-May-07 ESIA of Rivne NPP – Kyiv 750 kV transmission line 4.1 STATE OF PROJECT PERMITTING ...................................................................................................... 37 4.2 EIA PROCESS IN UKRAINE .............................................................................................................. 39 4.3 COMPLIANCE WITH INTERNATIONAL STANDARDS........................................................................... 41 4.4 LAND ACQUISITION PLAN............................................................................................................... 41 4.5 LAND VALUATION........................................................................................................................... 44 4.6 REVIEW OF UKRAINIAN LEGISLATION ON LAND TENURE ................................................................ 46 4.7 LAND ACQUISITION AND COMPENSATION PROCESS......................................................................... 47 4.7.1 Official registering of the right of use of land ........................................................................... 47 4.7.2 Land compensation.................................................................................................................... 47 4.8 REVIEW OF COMPENSATION FOR CONSTRUCTION IMPACTS ............................................................. 48 4.9 REVIEW OF INTERNATIONAL STANDARDS FOR TRANSMISSION LINES .............................................. 49 5. DESCRIPTION OF THE ENVIRONMENT....................................................................................