Environmental Assessment Report Initial Environmental Examination Project Number: 40610 July 2007 Armenia: Rural Road Sector Project 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. Prepared by the Armenian Roads Directorate Non-Commercial State Organization (ARD) and Ministry of Transport and Communications, for the Asian Development Bank (ADB). CURRENCY EQUIVALENTS (as of 1 July 2007) Currency Unit – Armenian dram (AMD) AMD1.00 = $0. 00292 $1.00 = AMD342.000 ABBREVIATIONS ADB – Asian Development Bank ASIF – Armenia Social Investment Fund ASL – above sea level ARD – Armenian Roads Directorate Non–Commercial State Organization EARF – environmental assessment and review framework EIA – environmental impact assessment EIRR – economic internal rate of return EMA – Emergency Management Agency EMOP – environmental monitoring plan EMP – environmental management plan EO – environmental officer HDM – highway development and management model IDA – International Development Association IEE – initial environmental examination IMF – International Monetary Fund IRR – internal rate of return IUCN – International Union for the Conservation of Nature LRNP – Lifeline Road Network Program MCA – Millennium Challenge Account MCC – Millennium Challenge Corporation MoH – Ministry of Health MM – mitigation measure MNP – Ministry of Nature Protection MTA – Ministry of Territorial Administration MOTC – Ministry of Transport and Communications NCSO – non-commercial state organization PA – protected area PMU – Project Management Unit REC – Regional Environmental Centre for Central and Eastern Europe ROW – right-of-way SEEC – State Environmental Expertise Commission SEI – State Environmental Inspectorate SIEE – summary initial environmental examination SNP – Sevan National Park SR – State Reservation WUA – water users’ association WEIGHTS AND MEASURES km – kilometer km2 – square kilometer m – meter mm – millimeter GLOSSARY marz(er) administrative region(s) (11 of them in Armenia) marzpet head of marz, governor CONTENTS MAPS Map 1: Administrative regions of Armenia Map 2: Location of roads to be rehabilitated under the Project Map 3: Location of Road Rehabilitation Activities in Martuni District, Gegharkunik Marz Map 4: Location of Proposed Road Rehabilitation Activities in Hrazdan District, Kotayk Marz Map 5: Road Link No. 2, Vardenis District, Gegharkunik Marz Map 6: Road Link No. 17, Bardzrashen to H8, Artashat District, Ararat Marz Map 7: Road Links No. 14 and 27, Kotayk Marz I. INTRODUCTION II. DESCRIPTION OF THE PROJECT III. DESCRIPTION OF THE ENVIRONMENT A. Physical and Ecological Resources B. Socioeconomics and Quality of Life C. Environmental Problems Associated with the Existing Situation IV. SCRENING OF POTENTIAL ENVIRONMENTAL IMPACTS AND MITIGATION MEASURES A. Road link No. 2: Vardenis to Geghamasar (Gegharkunik marz) Environmental management plan for All road links in Gegharkunik marz for Road link No. 2 specifically B. Road link No. 17: Bardzrashen to H8 (Ararat marz) Environmental management plan for All road links in Ararat marz and for Road link No. 17 specifically C. Road link No. 14: Abovyan to Nurnus (Kotayk marz) D. Road link No. 27: Mayakovsky to H3 (Kotayk marz) Environmental management plan for All road links in Kotayk Marz for Road links No. 15 and 27 specifically E. Findings V. INSTITUTIONAL REQUIREMENTS AND ENVIRONMENTAL MANAGEMENT PLANS A. Institutional Roles and Capacity B. Environmental Monitoring Environmental monitoring plan for Gegharkunik marz and Road link No. 2 Environmental monitoring plan for Ararat marz and Road link No. 17 Environmental monitoring plan for Kotayk marz and Road links No. 14 and 27 C. Mitigation and Monitoring Costs VI. PUBLIC CONSULTATION AND DISCLOSURE VII. ENVIRONMENTAL ASSESSMENT AND REVIEW FRAMEWORK A. Subprojects to be Assessed and Environmental Criteria for Subproject Selection B. Executing Agency’s Procedures for Subprojects C. The Project Management Unit and the Review Process D. Public Consultation and Information Disclosure E. Staffing and Equipment Requirement F. Summary VIII. FINDINGS AND RECOMMENDATIONS IX. CONCLUSIONS ANNEX 1. Road Links to be Rehabilitated under the Project 2. Summary of Public Consultations on Environmental and Social Aspects of the Project 3. Environmental Management Plan (EMP) Template for the Project 4. Environmental Management Plan for All Road Links In Gegharkunik Marz 5. Environmental Management Plan for All Road Links In Ararat Marz and for Road Link No. 17 6. Environmental Management Plan for All Road Links in Kotayk Marz for Road Links No. 14 And 27 7. Principal Environment-related Institutional Linkages under the Project 8. Organizational Chart of the Ministry of Nature Protection, April 2007 9. Selected Environmental Non-governmental Organizations in Armenia 10. Government Environmental Clearance Procedures 11. Environmental Monitoring Plan (EMOP) Template for the Project 12. Environmental Monitoring Plan for Gegharkunik Marz And Road Link No. 2 13. Environmental Monitoring Plan for All Roads in Ararat Marz 14. Environmental Monitoring Plan for All Roads in Kotayk Marz Map 1: Administrative Regions of Armenia 7 Map 2: Proposed Project Locations L15 L10 L25 L16 L2 L26 L1 L14 L 9 L24 L13 L27 L 6 L21 L12 L20 L11 L3 L7 L17 L30 L19 L23 L18 Map 3: Location of Road Rehabilitation Activities in Martuni District, Gegharkunik Marz (Scale 1:100,000) M-10 L-13 Lake Sevan Vardadzor Lichk PA L-12 Martuni M-11 M-10 Astkhadzor Map 4: Location of Proposed Road Rehabilitation Activities in Hrazdan District, Kotayk Marz (scale 1:100,000) Hankavan Artavaz L-15 Plunik H-28 Tsakhadzor MCA L11 Link number Map 5: Road Link No. 2, Vardenis District, Gegharkunik Marz, (scale 1:100,000) M-14 Ghehamasar Kutakan Pokr Masrik L 9 L 2 Tretuk Mets Masrik L1 M-11 M-11 Vardenis Shatvan L6 Khachaghbiur Geghamabak L7 L7 Jaghacadzor L3 Airk Geghakar Nerkin Shorzha ADB MCA L11 Link number 11 Map 6: Road Link No. 17, Bardzrashen to H8, Artashat District, Ararat Marz Bardzrashen Yerevan Landjazat L17 Arevshat Nshavan Getazat L20 Buravan H-9 L19 Vostan Kaghtsrashen M-2 H-8 Artashat Aygezard L18 Shahumyan L11 MCA Link number Map 7: Road Links No. 14 and 27, Kotayk Marz L14 L-27 ADB MCA L11 Link number 13 I. INTRODUCTION 1. The Rural Road Sector Project (the Project) proposed for financing from the Asian Development Bank (ADB) will address road rehabilitation needs in the rural areas of 4 out of Armenia’s 11 administrative regions (marzer). A total of 222.8 kilometers (km) of existing roads will be rehabilitated under the Project. An initial environmental examination (IEE) presented in this document was prepared by Armenia Roads Directorate (ARD) with technical assistance of ADB for the Government of the Republic of Armenia (the Government) in line with the requirements of the 1995 Law on Environmental Assessment of the Government and ADB’s Environmental Assessment Guidelines 2003, as revised from time to time. ADB’s initial review classified the Project as Category B project, requiring assessment at the level of an IEE. 2. Representative subprojects in three of the Project’s four regions (Gegharkunik, Ararat, and Kotayk; see Map 1) were selected and evaluated. For each subproject chosen, expected environmental impacts during the preparation, construction, and operation phases are described; suitable prevention or mitigation measures are identified; and their cost is estimated. An environmental management plan (EMP) is prepared for each subproject and an environmental assessment and review framework (EARF) developed to guide the selection and implementation of the remaining project road segments. Provisions for environmental monitoring have also been formulated. 3. The locations of the chosen subprojects are considered to represent fairly a cross- section of ecological, engineering, and socio-economic parameters. The geographical spread of the roads as well as the volume of work envisaged for each road section means that no significant cumulative impacts are foreseen. II. DESCRIPTION OF THE PROJECT 4. Prepared under ADB technical assistance (TA 4895-ARM), the Project is to rehabilitate a total of 222.8 km of lifeline projects consisting of 24 different road links in 4 out of Armenia’s 11 marzer, namely Gagharkunik, Ararat, Kotayk, and Armavir. Of the 222.8 km, 76.5 km are located in Gegharkunik marz, 64 km in Ararat, 62.1 km in Kotayk, and 20.2 km in Armavir (see Map 2). The Project fits into the Government’s Lifeline Road Network Program (LRNP) formulated in 2004 with the objective of rehabilitating a total of 2,700 km (out of a total of 4,320 km) of rural roads that are in poor condition at present, and mostly (84%) impassable during winter. The Project will be implemented over a period of 2 years following its formal approval by the Government and ADB. 5. Improved access is vital for a revival of rural livelihoods of Armenia. Indirectly, the Project aims also at improving road safety the record of which in Armenia is poor1 and at improved waste management to counter an alarming trend of uncontrolled waste disposal along the roads. 6. ADB’s approach to road infrastructure contains elements shared by organizations supporting road rehabilitation in Armenia, in particular the World Bank, the Millennium Challenge Corporation (MCC), and Armenia Social Investment Fund (ASIF) in its emphasis on connectivity, poverty reduction, and