EIA Policy and Process in Georgian Hydropower Development May, 2014 Report #1: EIA Policy and Process in SUSTAINABLE HYDROPOWER DEVELOPMENT Georgian Hydropower Development A NORWEGIAN-GEORGIAN COOPERATION PROGRAM Citation of Report: Guledani, M. 2014. EIA Policy and Process in Georgian Hydropower Development. Sustainable Hydropower Development in Georgia. Report No.1 (76 pages), Norsk Energi, Oslo. ISBN: 978-82-7252-206-2. Available from: http://www.energi.no/en/projects. EIA Policy and Process in Georgian Hydropower Development For the Program: Sustainable Hydropower Development by Norsk Energi Prepared by: Marina Guledani, Legal Expert Telephone: + 995 599 94 70 79 (mob) + 995 32 255 99 00 (office) Email: [email protected] Address: 154 Agmashenebeli Ave. Tbilisi, Georgia Edited by: Dr. Shivcharn S. Dhillion, Editor, ENVIRO-DEV Checked by: Endre Ottosen, Project manager, Norsk Energi Project Management: NORSK ENERGI Funded by: THE NORWEGIAN MINISTRY OF FOREIGN AFFAIRS May 2014 2 Report #1: EIA Policy and Process in SUSTAINABLE HYDROPOWER DEVELOPMENT Georgian Hydropower Development A NORWEGIAN-GEORGIAN COOPERATION PROGRAM LIST OF ABBREVIATIONS ADB Asian Development Bank BOO Build Own Operate CBD Convention on Biological Diversity CDM Clean Development Mechanism CMS Convention on the Conservation of Migratory Species of Wild Animals DNA Designated National Authority EBRD European Bank for Reconstruction and Development EIA Environmental Impact Assessment EIP Environmental Impact Permit ESIA Environmental and Social Impact Assessment EU European Union GoG Government of Georgia HPP Hydropower Plant IFI International Financial Institution LEE Law on Ecological Expertise LEP Law of Environment Protection LEIP Law on Environmental Impact Permit MoU Memorandum of Understanding MoE Ministry of Energy MoESD Ministry of Economic and Sustainable Development MENRP Ministry of Environment and Natural Resources Protection of Georgia NEPAP National Environment Protection Action Program NBSAP The National Biodiversity Strategy and Action Plan RFA Request for Applications SEA Strategic Environmental Assessment SNIP Construction Norms and Rules SanPin Sanitary Rules and Norms SHPD Sustainable Hydropower Development SSD Strategy for Sustainable Development TCSA Technical and Construction Supervision Agency UNFCCC United Nations Framework Convention on Climate Change UNECE United Nations Economic Commission for Europe WCD World Commission on Dams 3 Report #1: EIA Policy and Process in SUSTAINABLE HYDROPOWER DEVELOPMENT Georgian Hydropower Development A NORWEGIAN-GEORGIAN COOPERATION PROGRAM FOREWORD The timely development of hydropower in Georgia is seen as one of the main vehicles to development and accession to the European Union. Parallel to this is the legislative enhancement called for by the EU and international actors for the documentation, handling and monitoring of environmental and social infringements. Particularly sensitive themes are those related to large infrastructure developments. Georgia inherited a soviet legacy of environmental handling which she has been slowing unraveling to meet newer international requirements for EIA and minimizing environmental liability. Recent years have shown significant strides into enhancing the entire process of hydropower development where EIA has been central. The changes in progress are rapid and span the processes of permitting (licensing), EIA and monitoring. As most young nations there is a need for constant study and evaluation of systems in place, as steady learning (and change) requires some degree of systemic recognition. This report charts out the EIA policy and process as related to the development of hydropower, as a case, with a fair dose of historical and semantic clarifications for elements present. It also shows the dynamic changes that have taken place and those that are prompted. Guledani has been able to skillfully tease out the essential elements in light of inherent Georgian understanding and international practice. In her analysis, Guledani has made a key contribution to the current status of EIA in Georgia. Her contribution is part of the Sustainable Hydropower Development (SHD) Project, a description of which follows. Shivcharn Dhillion, Ph.D. Lead International Consultant, SHD Project, Norsk Energi Managing Director and Researcher, ENVIRO-DEV May 30, 2014 4 Report #1: EIA Policy and Process in SUSTAINABLE HYDROPOWER DEVELOPMENT Georgian Hydropower Development A NORWEGIAN-GEORGIAN COOPERATION PROGRAM BACKGROUND The report “EIA policy and process in Georgian hydropower development” is developed under the Norwegian-Georgian cooperation program Sustainable Hydropower Development in Georgia. The program is financed by Norwegian Ministry of Foreign Affairs and implemented in close cooperation with Government of Georgia. The goal of the program is assist the development of an environmentally and socially sustainable hydropower sector in Georgia. The Program consists of three main components: 1. Public Participation: Aiming to make the civil society and local population affected by hydropower development better equipped to engage in public consultation processes. The work included development of a Citizens Guide and implementation of a Training of Trainers Program. 2. Environmental and Social Impact Assessment: A review of policies and guidelines relevant to ESIA and hydropower in Georgia was conducted (this report). This was followed by an analysis of EIA/ESIAs for hydropower projects in Georgia, aiming to identify incongruences between current Georgian practices, and the Georgian ESIA requirements as well as international standards. A Stakeholder Working Group (SWG), consisting of representatives from the Government of Georgia, civil society and academia was set up to provide recommendations for how to strengthen the practice for EIA/ESIA for hydropower. The outcome of the SWG process is presented in a separate report. 3. Sustainable Hydropower Development: A set Knowledge Sharing Workshops aiming to increase capacity among stakeholders in governmental and non-governmental sector as and private sector on sustainable hydropower development. Topics include Environmental flow and cumulative impacts, Communication documents and Environmental and Social Management Plans. This report describes the policies and guidelines relevant to ESIA and hydropower in Georgia; the GoG’s international and regional obligations under multilateral agreements and conventions, linked to national ESIA policy and process; gaps and inconsistencies in relation to the best international practice, which can be improved through respective legal amendments to these instruments or creation of additional legal safeguards. The program “Sustainable Hydropower Development in Georgia” is implemented by a consortium of partners managed by Norsk Energi, with ENVIRO-DEV as Lead International Consultant and Gross Energy Group as Local Partner. This report was prepared Ms. Marina Guledani, with editing by Dr. Shivcharn S. Dhillion. Endre Ottosen, Norsk Energi Project Manager Sustainable Hydropower Development in Georgia [email protected] // +47 959 01 295 May 30, 2014 5 Report #1: EIA Policy and Process in SUSTAINABLE HYDROPOWER DEVELOPMENT Georgian Hydropower Development A NORWEGIAN-GEORGIAN COOPERATION PROGRAM AKNOWLEDGEMENT I have taken efforts in preparation of the report. However, it would not have been possible without the kind support and help of many individuals, organizations and representatives of state bodies I have had the opportunity to meet, interview and discuss matters of relevance. I would like to extend my sincere thanks to all of them. I am highly indebted to Norsk Energi and its representative Mr. Endre Ottosen for their guidance and constant supervision as well as for providing necessary information regarding the project & also for their support in completing the project. I am highly idebted to Mr. Shivcharn S. Dhillion of ENVIRO-DEV for his continuous guidance and mentoring throughout the whole study. Without his direction my work and completion of this document would have not been possible. Marina Guledani Legal Expert Citation of Report: Guledani, M. 2014. EIA Policy and Process in Georgian Hydropower Development. Sustainable Hydropower Development in Georgia. Report No.1 (76 pages), Norsk Energi, Oslo. ISBN: 978-82-7252-206-2. Available from: http://www.energi.no/en/projects. 6 Report #1: EIA Policy and Process in SUSTAINABLE HYDROPOWER DEVELOPMENT Georgian Hydropower Development A NORWEGIAN-GEORGIAN COOPERATION PROGRAM TABLE OF CONTENTS LIST OF ABBREVIATIONS ............................................................................................................... 3 1. SUMMARY ....................................................................................................................................... 8 2. BACKGROUND .............................................................................................................................. 8 3. SCOPE OF THE REPORT ........................................................................................................... 9 4. HYDROPOWER POLICY OF GEORGIA ............................................................................ 10 5. IMPLEMENTING HYDROPOWER PROJECTS ............................................................... 12 6. ENVIRONMENTAL POLICY AND GUIDELINES ............................................................ 21 7. EIA UNDER GEORGIAN LEGISLATION ..........................................................................