46933-014: Initial Environment Examination · Initial Environment Examination Report This Initial Environment Examination Report is a document of the borrower. The views expressed

Initial Environment Examination Report

This Initial Environment Examination Report 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. Your attention is directed to the “Terms of Use” section of this website. In preparing any country program or strategy, financing any project, or by making any designation or reference to a particular territory or geographic are in this document, the Asian Development Bank does not intend to make any judgments as to legal or other status of any territory or area.

Project Number: 46933 March 2015

KAZ: Akmola Electricity Distribution Network Modernization and Expansion Project

Prepared by LLP “TITECO” For Akmola Electricity Distribution Company JSC

Initial Environmental Examination(IEE)

Document status: Final draft

[November 2014]

PROJECT ―RECONSTRUCTION OF 110/10 KV

ASTANA SUBSTATION― for

―AkmolaElectricity Distribution Company‖ JSC

to be submitted to

Asian Development Bank

Prepared by LLP ―TITECO‖

http://www.google.es/imgres?imgurl=http://www.asemtransport.org/images/148/25mm_bb.jpg&imgrefurl=http://www.asemtransport.org/en/europe-asia_transport_development_forum_50.html&usg=__yRffxpz9B7GaCzAEN79k0qMIeSk=&h=295&w=295&sz=44&hl=es&start=4&um=1&itbs=1&tbnid=LvX2oOzJmlqvxM:&tbnh=115&tbnw=115&prev=/images?q=asian+development+bank&um=1&hl=es&sa=G&rls=com.microsoft:es:IE-SearchBox&rlz=1I7SKPB&tbs=isch:1

110/10 kV Astana Substation ReconstructionIEE

november 2014 page2

CONTENTS

CONTENTS 2

LIST OF TABLES 5

LIST OF FIGURES 6

ABBREVIATIONS 7

REVIEW 9

I INTRODUCTION 11

1. Purposeand content of the Project 11

2. Description of AEDC production facilities 12

2.1 Review of Akmola Electricity Distribution Company 12

2.2 AEDC organizational chart 17

2.3 Information of AEDC personnel 19

3. Brief description of planned work for reconstruction of substation

«Astana»

26

3.1 Reconstruction of 110/10 kv Astana Substation 26

3.2 Methodology and scope of the study 36

II KAZAKSHTAN AND AKMOLA REGION 37

4. Kazakhstan 37

5. Economics 38

6. Akmola oblastand Astana city 38

7. Electric power 41

7.1 Organization of power sector: state regulation 42

7.2 Organization of electric power sector: key participants 44

7.3 Organization of power industry sector: key rules of the market 45

III POLICY, LEGAL AND ADMINISTRATIVE FRAMEWORK 47

8. State legislation in the field of environmental protection of the

Republic of Kazakhstan, the legal norms and directives

47

9. Environmental policies and guidelines of the Asian Development

Bank (ADB)

65

IV ENVIRONMENT DESCRIPTION 71

10. Aspects of the environment, health and safety of existing

production facilities (AEDC)

71

10.1 Brief description of the climatic conditions of the area of

the project location

74

10.2 Relief and landscape 78

10.3 Soil 79

10.4Local water resources 80

10.5 The structure of the vegetation area and its floristic

composition

81

10.6 The fauna of the region under study 85

10.7 Cultural, historical and archaeological assets 88

VSOCIO-ECONOMIC CHARACTERISTICS 90


november 2014 page3

11. Socio-economic activities of AEDC 90

11.1 Scope of land acquisition, leasing and impact of

resettlement

90

11.2 History of land acquisition (and relocation) of the existing

production facilities of AEDCandInvoluntary Resettlement

91

11.3 Indigenous people 91

11.4 Social protection and labor protection 92

11.5Monitoring and reporting on the implementation of

measures of social adaptation

103

11.6Development of gender policy 105

VI EXPECTED ENVIRONMENTAL IMPACT AND MITIGATION MEASURES 107

12. Assessment of potential impact on air and mitigation measures 109

13. Assessment of potential impact on local water bodies, and

mitigation measures

110

14. Assessment of potential impact on soil and land resources, and

mitigation measures

111

15. Assessment of potential impact on the flora and fauna of the

project area

112

16. Assessment of potential noise pollution and mitigation measures 112

17. Assessment of potential impacts on waste formation and

disposal, and mitigation measures

114

18. Assessment of potential impacts in relation to cultural, historical

and archaeological assets and mitigation measures

115

VII INFORMATION DISCLOSURE, CONSULTATION AND PARTICIPATION 116

19. Interaction with related parties 116

20. Scheduled disclosure of information 118

21. Comments and responses 118

VIII GRIEVANCE MECHANISM 120

22. Levels of settlement of grievance 120

23. Coordination with the complaints, accounting and reporting 121

24. Disclosure of the complaint process 121

IX ENVIRONMENTAL AND SOCIAL PLANNING AND MANAGEMENT

(ECPM)

122

25. Environmental and Social Management Plan 122

X CONCLUSIONS AND RECOMMENDATIONS 125

ANNEX 1Environmental and Social Management Plan 130

ANNEX 2Disaster management / emergency response 139

ANNEX 3List of investment activity prohibited by ADB 141

ANNEX 4Copy of State License of LLP ―TITECO‖ 143

ANNEX 5 Copies of Certificate of Conformity LLP ―TITECO‖ 145


november 2014 page4

LIST OF TABLES

Table 2.1: Information on the average number of AEDC employees by category

20

Table 2.2: Information on AEDC authorized personnel complement in the context of their positions

20

Table 2.3: Data on educational background of AEDC employees (as of the end of 2014)

24

Table 3.1: Technical-and-economic indexes 27

Table 3.2: The timing of replacement of 2x40 MVA power transformers with 2x63 MVA power transformers

33

Table 6.1: Administrative districts of Akmola area (as of the beginning

of 2014)

39 Table 8.1: Legislation and regulations on environmental assessment in

the Republic of Kazakhstan and applicable to activity AEDC and

CAEPCO (within the activity connected with AEDC)

48

Table 8.2: Legislation and regulations on labor, health and safety

issues, applicable to AEDC and CAEPCO operations (within its activities

related to AEDC)

63

Table 10.1: Radiation balance of the surface activity (MJ / m2) under

average cloud conditions

74

Table 10.2: Frequency of winds by direction (%) 76

Table 10.3: Wind speed frequency (%) 76

Table 10.4: Listofplants 84

Table 11.1: Data on the land lease 90

Table 11.2: Distribution of AEDC staff by type of work (including

company-AEDC Energosbyt, data as of the end of 2014)

93

Table 11.3: AEDC personnel by education level (as of the end of

2014)

93

Table 11.4: Distribution of AEDC staff by the number of years worked

in the company

94

Table 11.5: Conventions of International Labor Organization, adopted

in the Republic of Kazakhstan

95

Table 25.1: Potential environmental and social impact 124


november 2014 page 5

LIST OF FIGURES

Figure 2.1: Schematic map of AEDC JSC’s electric networks of 35kV

and higher

16

Figure 2.2: Power supply to consumers in the area of responsibility

of AEDC

17

Figure 2.3: Organization chart of AEDC 18

Figure 2.4: Organization chart of AEDC branches 19

Figure 2.5: Internal chart of AEDC branches (inter-municipal

electric power networks)

19

Figure 2.6: Classification of AEDC employees by category (as of the

end of 2014)

23

Figure 2.7: Structure of company's employees by work experience

in the power system by category (as of the end of 2014)

24

Figure 2.8: Structure of AEDC employees by categories and by age

(as of the end of 2014)

25

Figure 2.9: Gender structure of AEDC employees by categories 26

Figure 3.1: Monitoring of AEDC substation with existing SCADA

system

32

Figure 3.2: Transformer hall in Astana substation 34

Figure 3.3: Astana substation 34

Figure 3.4: Disconnecting of one of 40 MVA power transformer in

Astana 110/10 kV (de facto)

35

Figure 3.5: Disconnecting of one of 63 MVA power transformer in

Astana 110/10 kV (after the proposed investment)

35

Figure 4.1: Administrative map of Kazakhstan 39

Figure 6.1: Map of Akmola oblast and districts 40

Figure 7.1: The review of the main power institutes in the Republic

of Kazakhstan

45

Figure 10.1: Wind rose in January 77

Figure 10.2: Wind rose in July 77

Figure 10.3: Annual wind rose 78

Figure 10.4: Yesil river embankment in Astana 80

Figure 10.5 Hardy-shrub species in Astana 84

Figure 10.6: Souslik 86

Figure 10.7: Golden eagle 88



LIST OF ABBREVIATIONS

ADB AsianDevelopment Bank

AEDC Joint-Stock Company "Akmola Electricity Distribution

Company‖

CAEPCO Joint-Stock Company " Central-Asian Electric Power

Corporation"

IEE Initial Environmental Examination(survey)

SS Substation

ESMS Environmental and Social Management System

ESMP Environmental and Social Management Plan

RK The Republic of Kazakhstan

AERC AkmolaEnergyRetailCompany

USSR The Union of SovietSocialist Republics

KEGOC Kazakhstan Electricity Grid Operating Company

MES (IEN) Inter-Municipal Electric Power Network

REN Regional Electric Power Network

LSS Linear Service Site

RZA (PSP) Relay protection and automation (Power system

protection)

AREM (ARNM) Agency on Regulation of Natural Monopolies

ASCAE AutomatedSystem for Commercial accounting of energy

AFS Automatic failover switch

NPSCP Negative phase-sequence-current protection

OCP Overcurrent protection

ShC Short circuit

HV High voltage

CBFP circuit breaker fail protection

OLTC On-load tap changing

KOREM(KPJMO) Kazakhstan Operator of Electricity and Power Market

REDC Regional Electric Distribution Company

RPSC Regional power supply company

EIA Environmental impact assessment



SES MH Sanitary and Epidemiological Service of Ministry for Public

Health

MM Mass media

CEE Committee for Ecological Expertise

DE Department of Ecology

ToR Terms of Reference

IA Implementation Agency

EE Environmental Examination

SR Safeguard Requirements

GIDP ADB Gender identity and development policy

RP Resettlement Plan

SPS Safeguards Policy Statement

LF Labour force

GDP Gross domestic product

MSW Municipal solid waste

SanPiN Sanitary Regulations and Standards

dBA Decibel - ampere

PESA Environmental and Social Actions Plan

EBRD European Bank for Reconstruction and Development

SEP Stakeholder Engagement Plan

AP Affected parties

PESSHS Protection of the environment, social status, health and

safety

USD United States Dollar

MVA Mega volt amperes

km Kilometer

kV Kilovolt

c/ha Center per hectare

GES (TM) City/town mains



REVIEW

JSC ―Akmola Electric Distribution Company‖ and JSC ―Central-Asian

Electric Power Corporation‖ (the latter within its activities is related to AEDC)

are focused on the development and implementation of the Electricity

Distribution Network Modernization and Extension Project, namely the

reconstruction of the 110/10 kV voltage Astana substation, including the

replacement of two power transformers. The project is implemented by JSC

"Akmola Electricity Distribution Company‖ (hereinafter - AEDC) and is

funded by the Asian Development Bank (hereinafter ADB).

This Initial Environmental Examination(hereinafterIEE) was prepared

for the proposed reconstruction of 110/10 kV Astana Substation and to

ensure a good practice in the area of environmental protection and

compliance with the requirements of the Asian Development Bank (ADB).

Under the proposed investment program it is planned the

modernization of the Astana substation located in Astana city. This

production facility is in operation now.

The reconstruction of the substation is being performed within the

existing substation building and in accordance with the design assignment.

The project provides for the replacement of existing power transformers

TRDN-110-U1 of 40,0 MVA capacity by the transformers TRDN-110-U1 of

63,0 MBA capacity.

AEDC owns and operates a 21,619 km of electrical power distribution

network with voltage from 0.4 kV to 110 kV, and the network operates

through approximately 4300 transformers and 3765 substations in total.

AEDCthrough its electricity salessubsidiaries currently serves 116,000 end

users in 14 districts of Akmola oblast and 181,000 end users in Astana and

Stepnogorsk. These end-users are serviced through 22 direct electric power

buyers, agricultural business, industrial and residential sectors.

IEE complies with the legal and regulatory requirements of the

Republic of Kazakhstan and the applicable requirements of the Asian

Development Bank, AEDC and CAEPCO (within its activities related to

AEDC).

AEDCis currently investing in the modernization of electrical equipment

(replacement of transformers)which is funded by the internal cash flows. The

proposed modernization program will be funded by combination of ADBfunds

and internal cash flows.

The project belongs to the category ―B‖ in terms of the impact on the

environment and to the category C in terms of the impact of the involuntary

resettlement and indigenous population. More detailed information on ADB

categorization is available in Chapter 9.



Inaccordance with the requirements of ADB,the IEE report considers

the potential negative and positive impacts of the project on the

environment and recommends any measures needed to prevent, minimize,

mitigate, or compensate for the adverse impacts and improve environmental

performance. This IEE also includes an Environmental Management Plan

(EMP) with a detailed description of mitigation measures.



I INTRODUCTION

1 Purpose and content of the project

The purpose of this IEE is the regulation of environmental impacts and

settlement ofenvironmental management problems related to the proposed

reconstruction of the substation. This IEE report includes the Environmental

and Social Management Plan (ESMP) aimed at ensuring the compliance with

the current laws and Resolutions of the Government of the Republic of

Kazakhstan, including the provisions of the ADB Safeguards Policy

Statement (SPS) developed in June 2009.

An important objective of this project is to determine compliance of

the activities of ―Akmola Electricity Distribution Company‖ (AEDC) with the

ADB's Directives on environmental security measures, involuntary

resettlement and protection of the indigenous inhabitants, as well as other

social policies such as Social Protection Strategy (2001), Gender and

Development Policy (1998) and the Public Communications Policy (2011).

This report consists of 10 parts. Sections 1 and 2 give the brief

descriptions of Kazakhstan and Akmola oblast, AEDC’s organization structure

and actions plan in the framework of the project which will allow evaluating

the scope of work. Section 3 contains the state legislation related to

environmental protection and the basic principles of ADB’s environmental

policy. The next Section describes the aspects of environment, health and

safety of the existing production facility (AEDC), including climatic

characteristics, topography and landscape, soil and local water resources,

flora and fauna. Section 5 is devoted to the socio-economic aspects of AEDC.

The next Section gives the potential impact evaluation on natural resources

and possible measures to prevent or mitigate its consequences. Also, this

document contains the procedure of the information disclosure to related

parties and the grievance mechanism. An important part of the Initial

Environmental EvaluationExaminationis making a plan for the environmental

and social management, which is contained in this report. All conclusions

and recommendations are summarized in the final Section.



2 Description of AEDC production facility

2.1 Review of Akmola Electricity Distribution Company

Regional Power Management Enterprise (Tselinenergo) was established

on July,1,1961 by the order of the Council of National Economic Enterprise

Tselinny No.224-p dated June 17, 1961, and was reorganized to

"Tselinenergo‖ on October 6, 1980 by Order of the Minister of Energy and

Electrification of the Kazakh SSR No.111 dated October 6, 1980. Later, the

Power Industrial Group ―Tselinenergo‖ was reorganized into the Power

Industrial Association and Electrification ―Tselinenergo‖ based on the order

of the Ministry of Energy and Coalmining No.75 dated September 7, 1995.

Further on, the Republican State Enterprise ―Tselinenergo‖ was reorganized

into Akmola Electricity Distribution Company‖ (hereinafter AEDC) base on

the decree of Akmola Regional Committee for State Property Management

No.380 dated September,23, 1996. ThenAEDC was reorganized into Open

Joint Stock Company ―AEDC‖ and registered byJustice Department of

Akmola oblast with the Registration certificate No.328-1902 dated

January,21, 1999, in compliance with the new RK law ―On Joint Stock

Companies‖ dated July, 10, 1998. State registration certificate No.51-1902-

AO was issued by Justice Department of Akmola oblast on September,3. The

state registration of ―Akmola Electric Network Company‖ as a legal entity

was carried out by Justice Department of Akmola oblast on the basis of

Protocol No.1 of the Board of Founders of the JSC ―AEDC‖ dated February, 2,

2001 and theagreement on establishing JSC ―AEDC‖ dated February, 2,

2001, as per Certificate of State registration of a legal entity No.3160-1902-

JSC, dated February, 12, 2001.

In accordance with the adoption of the law of RK ―On Joint Stock

Companies‖ №415-II dated May,13, 2003 and the need to harmonize the

constitutive documents of the company in compliance with the new law, the

company was re-registered (based on the resolution made by the general

meeting of shareholders on June,20, 2003regarding the approval of the new

edition of the Charter); and a Certificate on state re-registration of the legal

entity No. 160-1902-AO was issued by Justice Department of Akmola oblast

on January, 8, 2004. Later, after adoption of laws ―On amendments and

additions to some legal acts of the Republic of Kazakhstan on securities

market and joint-stock companies‖ (№72-III dated July,7, 2006), ―On

amendments and additions to some legal acts of the Republic of Kazakhstan

on protection of the rights of minor investors‖ (№230-III dated February 19,

2007) and amendments in the law of RK ―On Joint Stock Companies‖ №415-

II dated 13 May 2003, the company was re-registered by the Justice

Department of Tselinograd rayon of Akmola oblast and the ―Certificate of Re-



registration of a legal entity‖ No. 198-1902-12 AO was issued on October,

15, 2007.

In accordance with the Decree of the President of the Republic of

Kazakhstan No.3878 ―On additional measures for the development of

Akmola city - the capital of the Republic of Kazakhstan‖ dated March, 24,

1998, starting from July, 1, 1998, AEDC began to operate without the

Akmola city electrical network due to transfer of the portfolio of assets of a

natural monopoly holder into the ownership of the capital of Kazakhstan.

Following the shift of the capital of the Republic of Kazakhstan to Astana in

accordance with Resolution of State Property Committee No.43 dated

February5,1998, the 10-0.4 kV electrical networks and 110, 10-0,4 kW

substations were transferred from the balance sheet of JCS ―AEDC‖ to the

balance of the Astana city Akimat (with inclusion of those in the balance

sheet of the CJSC ―GES‖). Overhead power lines of 110 kV with a total

length of 143 km located in the city of Astana, remained on the balance

sheet of JSC ―AEDC‖only because former CJSC ―GES‖ (now JSC ―ASTANA

REC‖) did not have the appropriate technical capacities.If JSC ―AEDC‖ does

not reconstruct its 110 kV networks, then Astana city Akimat will

constructnew 110 kV networks. Hence, JSC ―AEDC‖ is planning to construct

overhead power lines 110kV ―HPP –Substation Astana‖.

Theinvestmentactivitiesforconstructionofthe new overhead power lines

is not coveredin this IEE.

In the current situation and taking into account the existing obligations

and accumulated debt on secured loans from the construction of permanent

power complex―Krasny Yar‖ and ‖Astana‖, procedures were initiated in

relation to AEDC based on the decision of the Collegium for Civil Cases of the

Akmola regional court on June,11,1999 (the state owned 100% shares of

AEDC). On the 16th of January 2001 according to the Decree of the RK

Government No.50 ―Some issues of CJSC ―AEDC‖ the bankruptcy proceeding

was initiated, and on the 13th of February 2001AEDC was declared as a

bankrupt by Decision №K-110/N of Akmola regional court. Certificate of

registration No.3160-AO was issued for CJCS ―AEDC‖ by Justice Department

on February, 12. Contract No.1 on transfer of the portfolio of assets of the

natural monopoly holder to the trust management for the period of

bankruptcy procedure of CJCS ―AEDC‖ was signed on March, 1, 2001. On

March, 1, 2002, CJCS ―AEDC‖ was transferred to the private ownership as

the bankrupt company under Contract #40 КP. Then on the January8, 2004

CJCS ―AEDC‖ was renamed into JSC ―AEDC‖ in accordance with the RK Law

―On Joint-Stock Companies‖ №419-II, dated May, 15, 2003 and a certificate

of registration (Certificate No.3160-1902-AO of January 8, 2004) was

issued.



At present AEDC is responsible for the distribution (and partially for

transmission) of electricity for Akmola oblast and Astana, except for:

Burabay, Enbekshilder, Zerendy rayons,

Administrative centre of the oblast is Kokshetau city.

AEDC owns and operates 110 kV, 35 kV, 10 kV and 0.4 kV

powernetworks in its area of responsibility, as shown in figure 2.1. This

complex structure makes AEDCa hybrid company dealing with the electricity

distribution and transmission.

The power supply structure in the service area of AEDC is shown in

fig.2.2. The flow of energy shown in this figure shows the basic schemes and

it is considered that new players can join the game at any time. For

example, the private industrial companies can be directly connected to the

AEDC electrical network, avoiding KEGOC’s electrical grid. Besides, now the

energy flow from KEGOC through other electricity distribution companies to

AEDC is a little different. Some of the power coming from KEGOC first goes

to AEDC, and then is distributed to AESC as well as to others, such as the

AEDC.

Despite the availability of power transmission lines and main

distribution networks with almost complete electrification of its service area

from the USSR period, the degree of wear of the current network assets is

high, this is due to limited investments for modernization and maintenance,

since the USSR collapse up to 2010. The officials of AEDC stated in their

interviews that the main reason for this situation is the limited budget when

AEDC was a state-owned company. It was noted that the AEDC investment

plans during the period 2001-2010 were not approved, and only a limited

annual budget of USD 3 million was available, that is hardly to be enough

even for the repair of the existing system. Therefore, this situation puts an

additional burden of expenses for operation and maintenance, considering

the relatively large service area of AEDC, urging the company to pay more

attention to the investment in modernization.

Agriculture and food industry play an important role in the economy of

Akmola oblast. In addition, the population and electrical networks are widely

spread, resulting in the need of modernization of the extensive rural

network. A three-year investment plan of AEDC for 2013-15 is very high

compared with the investment budgets in previous years. However, it is

intended for modernization of only 1,57% of the existing network (i.e. 243

km of 15 500 km of HV/MV electrical network), and also taking into account

that the average service life of network equipment is 30 years,AEDC has to

increase the budget for modernization.

In addition, AEDC also is responsible for continuous transmissionof

electric power for power consumers of Astana city, the symbol-city of

reconstruction and development of independent Kazakhstan, having clear



goals for expansion and development in the future. We can conclude that

the amount of AEDC’s investments in new urban infrastructure of electrical

network will be in need of increase in the future, with the expansion and

development of cities.

110/10 kV Astana Substation Reconstruction IEE


Figure 2.1: Schematic map of AEDC JSC’s electric networks of 35kV and higher



Figure 2.2: Power supply to consumers in the area of responsibility of AEDC

2.2 AEDC organization chart

AEDC organizational chart is shown in Figure 2.3. In general, AEDC is

divided into three hierarchical levels, namely:

The General meeting of shareholders – supreme body;

Board of Directors – management body;

Board – executive body;

Inter-municipal electric power networks (hereinafter –

IEN)(Akmola, Esil, Stepnogorsk).

Most of the staff are employed by those Inter-municipal electric power

networks (Akmola, Yesil, Stepnogorsk). Schematic structure of these three

regional organizations are given in Figures 2.4.-2.5. These schematic

structures do not describe the roles within each Department, but rather

show how the organization is further divided into 14 rayons of Akmola

oblast, except for Borovoye, Enbekshilder and Zerenda rayons as well as

the oblast center - the city of Kokshetau. These 14 rayon organizations then

divided into 84 linear service sites (LSS). For these sites the Regulations on

sites and job descriptions for operational and maintenance staffwere

developed. These sites are rather small and managed by Inter-municipal

electric power networks.



Figure 2.3 Organization chart of AEDC



Figure 2.4: Organization chart of AEDC branches

Figure 2.5: Internal chart of AEDC branches (inter-municipal electric power

networks)

2.3 Information of AEDC personnel

Data on AEDC personnel is given in tables 2.1. and 2.2. Change in the

personnel number is caused by a number of objective reasons:

In 2004, in accordance with the legislation (Law on Electric Power

Sector of 2004.) there was a separation of activities on electric power supply

from the transmission and distribution of electric power through the creation

of a subsidiary - LLP ―AEDC-Energosbyt‖.

In 2006 according to the Order issued by the Department for

regulation of natural monopolies of Akmola oblast, the canteen and a design

bureau were withdrawn from the staffing structure.



In 2012 under the RK law "On security activity" the security service of

the administrative body was dissolved, since this service became subject to

a compulsory licensing.

In 2013 for maintenance and repair works Atbasar RENs AMES

created a group of power lines and increased the number of maintenance

personnel group of the substations.

In 2014, for introduction of the automated control system of

production facilities and assets «Ellipse» it was set a special unit to the

support database for MaintenanceandRepair, Procurement, Finance, Human

Resources. Thenumber of AMR (automated control system and power

metering) personnel was increased to implement the approved investment

program and to increase the number of metering points on the upper and

household levels.

Table 2.1: Information on the average number of AEDC employees by

categories

Category 2012 г. 2013 г. 2014 г.

person % person % person %

Workers 1 283 64 1 308 64 1 320 64

Managers 282 14 285 14 299 14

Specialists 409 21 425 21 446 21

Non-productive

personnel

26 1 27 1 22 1

Total 2 000 100 2 045 100 2 087 100

From table 2.1 you can see that when the number of personnel is

changed, the percentage ratio remains the same and the balance between

the categories is kept. This proves the efficiency of the Company.

Table 2.2: Information on AEDC’s staff size in view of positions

Classification of employees

2001 2005 2010 2011 2012 2014

Repair works 361.1 348.1 308 298.5 299.3 314.6

Maintenance support 448.2 429.5 401.3 386.1 388 384.2

Taking meter readings 104.0 100.4 68.5 76.5 76.5 84.4

Automated Utility

Metering systems,

relay protection and

automation

36.0 48 51.0 52 56

63



Classification of employees

2001 2005 2010 2011 2012 2014

Legal service and

claim settlement 16.0 16.0 14.0 14.0 14.0 14.5

Mid-level managers,

incl.: 256 254.5 253.27 252 259 279,9

Heads of services and

sectors 132,5 129,5 142,27 142 149 163,9

Foremen 123,5 125 111 110 110 116

Planning 35 36 42 37 37 43

Dispatching service,

incl.: 104 101 102 101 101 103

Managers 5 4 4 4 4 4

Mode Engineers 7 5 6 5 5 5

Operational

dispatchers 92 92 92 92 92 94

Security (guard) 102 102 126 121 81 82

Cleaning 61.3 63.4 69.5 69.5 70.5 71.5

Cashiers 22 8.1 6.8 6.8 6.8 1.7

Balance and electric

power metering 83 76.7 34 34.3 34.3 34.3

Accounting

department 44 38.5 43.7 44 43.5 47.5

Finance 3 4 4 4 4 4

Engineers 166.6 168.1 148.1 144.1 154.6 179.3

Topmanagementincl.: 62 47.5 47.5 48.5 48.5 49.5

Board 4 4 4 5 5 5

Directors of IEN,

Managers of REN and

their deputies

34 20,5 20,5 20,5 20,5 20.5

Chief Engineers and

their Deputies 24 23 23 23 23 24

Others (Drivers,cargo

companies) 373.6 356.5 385.5 383.5 389.8 402.8

Others (loaders etc.) 6 6 6 5 5 5

Total 2,283.8 2,204.3 2,117.17 2,077.8 2,068.8 2164.5



Table2.2 shows the authorized staff size with all thevacancies.Not

allexperts of AEDC workat 8 hour shift, andthere are some categories

ofworkers in the company, whichwork at4/7/8/12/24hours

shift.Therefore,staffingis made taking into account the specific features of

thecompany.In this connection the number ofstaffing positions have

decimals. For this reason,the number ofstaff positionsand

actuallyworkingemployees differ.

The company operation is guided by the current legislationtaking into

account theworking timeand according to the staffing.

Having considered data from table 2.2 we can come to the following

conclusions:

Linear Service Sites are engaged in technical maintenance,

overhaul and current repairs, rehabilitation works. Such distribution of duties

is observed almost in all distribution companies of the region.

The staff of Linear Service Sites realize the disconnecting or

connecting of the power equipment in order to give an access to the crews

of the third parties to electrical networks of JSC «AEDC» for the repair and

construction works and re-connecting consumers to electric networks.

During a specified period the number of staff of the Legal and

Customers ClaimsDepartments has been decreased due to separation of

power supply activity. The low level of normative technical losses should be

noted:in 2014 - 5,02% comparing with the approved rate of 5,95%. The

average percentage of losses in the Republic is 15.3%.

At average, 6 technical maintenance and repair men for one are

supervised by one foreman of a Linear Service Site.

At average, one head of a Dispatching Department supervise

23,5 dispatchers. Dispatching Departments work 24 hours a day. The

staffing level is 5 dispatchers for one Regional Electric Power Network (REN).

As of Junauary,1, 2014 there were 528 vehicles on the books of

the company, including:

Specialized machinery (cranes, drilling machines,

laboratory)- 127 pcs.;

Trucks – 162pcs.;

Motor cars – 200pcs.;

Others (tractors, trailers) – 97pcs.

At the same time the area of the service territory is 121,15 thousand

km2 and it is necessary to deliver the personnel to their working places –

LSE, substations which are far from the district center and to deliver the

dispatchers at night time. At average, one driver of a motor car serve 10

employees of the company.



In accordance with Figure 2.6, the company employs303 managers

including the foremen, 477 specialists of different levels, including

engineers, metrologists, mechanics, etc., 22 employees of the office staff,

such as secretariesand 1309 workers, including electricians, drivers,

cleaners, etc., both the skilled and unskilled.

Figure 2.6: Classification of AEDC employees by category (as of the end of

2014)

The average age of employees is 43 years old. The age of retirement

(pension) under the laws is 63 years and with proper management the

company will be provided withqualified personnel for many years. JSC

"AEDC" has its own training center where the staff is trained annually to

improve the skills. Also the employees take the mandatory training on

industrial safety and labor protection, transportation of dangerous goods

with the third-party institutions, prove certificates of metrologists and

professional accountants.

One of the technical indicators is the scope of electric networks

servicing, which is measured in standard units.

Information about the education level of AEDC staff is given in Table

2.3. As it seen from the Table, 26% of AEDC employees have higher

education (Bachelor and Masters Degrees), 35% graduated from the

Colleges and vocational schools and 39% have secondary education. 63% of

the managerial staff has the higher education. This indicates a high level of

qualification.



The structure of company's employees by work experience in the

power system by categories is given in Figure 2.7. Figure 2.8 illustrates the

structure of AEDC employees by categories and by age.

Table 2.3: Data on educational background of AEDC employees (as of the

end of 2014)

Employees AEDCTo

tal

Manager

s Experts

Office

workers

Worker

s

Total 2 111 303 477 22 1 309

Higher

education

546 189 296 9 52

College and

vocational

schools

745 80 158 8 499

General

secondary

education

820 34 23 5 758

Figure 2.7: The structure of company's employees by work experience in the

power system by category (as of the end of 2014)



Figure 2.8: Structure of AEDC employees by categories and age (as of the

end of 2014)

Due to the nature of works (repair of high voltage power lines at a

height of 7 m and higher, power equipment with voltage up to 220 kV) 76%

of employees are men. At the same time the accounting, economic and

financial sectors are staffed by female personnel. Top management is widely

represented by women.

The human resources department of AEDC also informed that 80% of

employees are men, and to increase a number of working women is of great

interest for the company. Although the numbers seem low, we understand

that the top management in AEDC is mostly represented by women. Due to

the specificity of the power business, this rating itself is not so bad. For

more detailed information refer to Figure 2.9.



Figure 2.9: Gender structure of AEDC employees by categories (as of the

end of 2014)

3 Brief description of the planned work for reconstruction of

substation "Astana"

3.1 Reconstruction of 110/10 kV Substation "Astana"

110/10 kV substation Astana is located in the central part of Astana at

the intersection of Omarov and Aimanov streets.

Access road to the substation is covered by asphalt.

The location of the substation is characterized by the following climatic

conditions once for 10 year return period:

- area in terms of wind — III

- area in terms of slippery surface — II

- the number of storm hours per year — 20-40

- area in terms of the atmosphere pollution — IV.



Table 3.1: Technical-and-economic indexes

Name Indexes

1. Project Client JSC ―AEDC‖

2. Climatic conditions:

- area in terms of slippery surface II

- estimated width of slippery surface, mm 16

- area in terms of wind III

- rated wind speed, m/s 32

- area in terms of pollution of the atmosphere

IV

- the number of storm hours per

year, hour

20-40

3. Transformers of 63,0 МVА capacity, a set 2

4. Rigid bus arrangement 10 kV Mono Trolley

Duct 120х10, m

1000

5. Arc suppression coil, a set 4

6. Input cell 2500А, 25kА, pc 4

7. A cell of busbar section breaker 2500А,

25kА, pc

2

8. A cell of busbar coupler 2500А, 25kА, pc 2

Electrical solutions. The project provides for replacement of existing

40,0 MVA TRDN-110-U1 transformers by 63,0 MBA TRDN-110-U1

transformers.

Existing input cells, cells of busbar section breaker and coupler, 10 kV

busbars, and 10 kV busbar bridge of the Switchgear and Control Gear

operate at rated current of 1000-1600 A and to be replaced by the similar

with rated current of 2500 A.

Due to replacement of the transformer, the existing busbar bridge is

being rebuilt between the transformer and the 10 kV Switchgear buildings,

as the load carrying capacity of the busbar bridge is below than the rated

current of the transformer. The existing rigid bus arrangements Mono Trolley

Duct 100х10 are being converted into rigid bus arrangements Mono Trolley

Duct 120х10. Rebuilding of 10 kV busbar bridge includes replacement of

support and wall tube insulators for the new ones that correspondto the

nominal current of the designed transformer.



The existing wiring on 10 kV side will be remained. For the smooth

operation of the substation in 10 kV Switchgear will be replaced the parts of

busbars, four input and four sectional cells 8BK80 for the similar, produced

by JSC "KEMONT", with the increase of their nominal current up to 2500A.

Worn-out and obsolete devices of arc suppression reactors are

replaced with devices of arc suppression reactors with "SAMUR"control

system used for reactive power compensation.

The fire alarm system and "TUNGUS" dry-chemical extinguishing

system will be installed together with the fire alarm device in a duty room of

the substation building.

Fire alarm system.

The project provides for the fire alarm system in the building. Point

smoke sensors serve as fire detecting sensors. Alarm control panel is

installed in the duty room.

Dry-chemical automatic fire extinguishing system "TUNGUS" will be

installed in the chambers of power transformers.

Fire extinguishing system is arranged in such a way that when the fire

sensor is activated the alarm control panel installed in the duty room

receives the signal. In order to avoid false alarm and starting up of the fire

extinguishing process, the start up of fire extinguishing modules is done

manually using the manual fire alarms installed in the corridor, at the

entrance to the transformer chamber.

Relay protection, automatic equipment and cable facilities.

The principles of implementation of relay protection and line automatic

equipment

In accordance with "Electrical installation code" and the requirements

of "Guidelines for the relay protection" section 13B "Relay protection of 110-

500 kV step-down transformers and autotransformers" the following

protection measures are taken into consideration at "Astana‖ substation:

- transformer differential protection;

- transformer gas protection;

- voltage controlled overcurrent protection of the transformer on

110 kV side;

- overcurrent protection from overload surge current;

- overcurrent protection on inputs 10 kV of the transformer.

Moreover, it is planned to install an automatic failover switch (AFS) at

10 kW busbar coupler with the circuit restoration after an accident and the

stepped automatic frequency load shedding at 10 kV busbars.

All protection is performed on the microprocessor units.



Microprocessor digital blocks, apart from protection functions, perform

the following additional functions:

- measurement of the parameters of the normal operating mode

(current error is no more than 2%, voltage error is no more than 3%);

- registration of emergency mode parameters - digital

oscillography of analog and discrete parameters (maximum number of

oscillograms is 8, the maximum recording time is 5 sec);

- self-diagnosis of working capacity and control of external

measuring and command circuits;

- freely programmable discrete inputs and outputs, and LED

displays.

Description of logic functions for Relay protection and automation

(RPA) 110 / 10-10 kV Substation "Astana".

Device 7SJ635. Protection on 110 kV side of the transformer and 110

kV breaker control (Q0). Designation of internal functions of the device:

1.1 ANSI 50, 51. Overcurrent protection 110 kV has three stages at

operative current, actuating at monophase and phase-to-phase short circuit

in the protected zones.

I stage 50-2 (with more set operative current value), with an

independent time-lag will work on:

- opening of 110 kV circuit breaker and disconnection of the local10 kV

switches;

- the start of circuit breaker failure protection and blocking of 110 kV

circuit breaker.

II stage 50-1 (with less set operative current value), with an

independent time-lag will work on:

- opening of 110 kV circuit breaker and disconnection of local 10 kV

switches.

III stage 51, with the inverse time-lag will work on:


switches;

Note: Upon selection of the operating organization, instead of (or in

addition to) 3-stagesof overcurrent protection (with inverse time-lag), the

second (additional) independent time-lag of the 2nd stage of overcurrent

protection with similar opening process can be installed, that shall be done

additionally in case of the configuration locomotion (CFC).



1.2 ANSI 46.The 110 kV negative phase-sequence-current protection

has three stages at operative current, acting at asymmetric short circuit in

the protected zones.

I stage 46-2 (with more set operative current value), with independent

time-lag will work on:


switches;

- the start of circuit breaker failure protection and blocking of 110 kV

circuit breaker.

II stage 46-1 (with less set operative current value), with independent

time-lag will work on:


switches.

III stage 46-ТОS with inverse or independent time-lag will work on:


switches;

- the start of circuit breaker failure protection -110 кV.

Note: According to the selection of the operating organization, instead

of (or in addition to) 3-stages negative phase-sequence-current protection

(with inverse time-lag) a second (additional optional) independent time-lag

of the 2ndstage of negative phase-sequence-current protection with similar

opening process can be installed, that shall be done additionally in case of

the configuration locomotion (CFC).

1.3 ANSI 46 Overcurrent protection of the transformer on 110 kV

side.

1.4 FR. Fault recording system records and displays on the device

screen and provides the possibility of remote data transmission:

- phase currents of the switch, zero-sequence current;

- phase voltage; zero phase sequence voltage.

1.5 ER. Inside events recording system of the device for storing,

displaying on the device screen and for remote transmission of trigger

events and internal function errors, and startup signals of binary inputs.

1.6 A measuring device of the analog data of the current, active,

reactive and gross output of the transformer, of the voltage and frequency

of 110 kV with showing the data on the device display and for remote data

transmission.

1.7 ANSI 74ТС. A functional testing of 110 kV switch tripping circuit

(2 channels). It acts on the signal and blocking of circuit breaker closing.

1.8 Switching the groups of protection settings of a device with Sx9

switch (or using the device keyboard).



Device 7UT613. Differential protection and process protection of the

transformer

Purpose of internal functions of the device:

ANSI 87Т. Longitudinal differential current protection works for

monophase and line-to line short circuit (SC) in the protected zone within

the area bounded by the current transformers, without time-lag affect:

- opening of 110 kV and 10 kV transformer circuit breaker;

- blocking of 110 kV circuit breaker.

ANSI 87N. Restricted earth fault protection, actuates at earth fault in

the protected zone within the area bounded by the current transformers,

without time-lag affect:

- opening of 110 kV and 10 kV transformer circuit breaker;

- blocking of 110 kV circuit breaker.

Note: Function of restricted earth fault protection is used only if the

transformer functions with constantly grounded neutral HV winding.

ANSI 51. Overcurrent protection of 110 kV at excess current on the

side of the 110 kV transformer, without time-lag acts on the blocking of an

action (switching) OLTC (on-load tap-changer).

FR. Fault recording system screens records on the device display and

provides remote data transmission

- phase currents of the transformer, zero-sequence current.

ER. Inside events recording system of the device for storing, screening

on the device display and remote transmission of trigger events and internal

function errors, and startup signals of binary inputs.

A measuring device of the analog quantity of the currents of the

transformer screening data on a device display and remote data

transmissing.

Switching the groups of protection settings of a device (using the

device keyboard).

Device REG-D. Automatic voltage control of the transformer.

Setting of internal functions of the device:

Voltage control device of the transformer on the side of 110 kV,

(manual and automatic drive control of OLTC of the transformer), with the

definition of OLTC position.

FR. Fault recording system screens records on the device display and

provides remote data transmission:

- voltage on the side 10 kV transformer

- current on the side of the 110 kV transformer.



ER. Inside events recording system of the device for storing, screening

on the device display and remote transmission of trigger events and internal

function errors, and startup signals of binary inputs.

Display of measured and processed analog values:

- voltage on the side 10 kV transformer

- current on the side of the 110 kV transformer

- P, Q, S, cos, , I*sin, f.

Organization of operation

The substation operates using the existing facilities, and acquisition of

additional equipment is not foreseen by the technical specifications.

At present time AEDC can monitor the condition of its electric networks

with a maximum delay of 15 minutes using the existing 467 RTU. Monitoring

of substations is shown in Figure 3.1.

Figure 3.1: Monitoring of AEDC substation with existing SCADA system

This investment activities consisting of installation of 948 metering

units in 2013-2015 is important for AEDC, mainly because of the prospect of

a gradual replacement of the parts of the existing SCADA and improving

AEDC monitoring capabilities with a large network coverage.

Replacement of transformers 2x40 MVA with 2x63 MVA is being

considered in order to minimize the risks associated with the

implementation, taking into account the professionalism and experience of

AEDC in such kind of business. Since the substation has two operating

220

ВЛ 2

20 к

Вна

ПС "

Куйб

ыш

евск

ая"

Красивинская 2х10,0

2х10,0

Ейская

2х10,0Пятигорская

Жаксынский р-он

Егиндыкольский р-он

Коргалжынский р-он

Атбасарский р-он

Астраханский р-он

Жаркаинский р-он

ВЛ 110 кВ

на ПС"Сары-Узень"

Баранкуль1х10,0-110кВ1х1,0 - 35кВ

Есильский р-он

Победа 2х10,0

ЕГПП

Сары-Узень

ВЛ 220 кВ

на ПС

"Восточная"

220

220

220

Жаксы1,0+1,6

Перекатная

ОП-80

1,0+1,6

Новая10,0

Лозовая 6,3

Новосельская2х10,0

Атбасар2х6,3 Ирченко

М.Горького

Мариновская 2х 6,3

Красный Маяк2х2,5

Целинная1х63,0 - 220кВ10+6,3 - 110кВ

Днепропетровская6,3

Краснознаменка2х10,0

Сандыктауский р-он Новоникольская

2;2,5

Балкашино2х10,0

ВЛ 11

0кВ

на П

С"Зе

ренд

а"

ВЛ 3

5кВ

на П

С"Ай

дабУ

л"

ВЛ 110кВ

на ПС"Николаевка"

Веселовская

ВЛ 110кВ на Тахтоброд

2х10,0

Гвардеец

АС-70 2х4,07

Джалтырь

Урман

Целиноградский р-он

Шортандинский р-он

Макинск

Вл 11

0кв

на П

С"Щ

учин

ская

"

Вл 220кв

на ПС"Кокчетавская"

63.0;60.0;10.0

Карамышевка2х10,0

Заводская10,0+16,0

Ельтай

Никольская2х6,3

Буландинский р-онЖуравлевка2х10,0

Ново-Александровка

Белоярка

Аршалынский р-он

Вишневка

Ишимская

Осакаровка

Шортанды Тяг Канкрынка2,5 + 3,2Шортанды

2х6,3

Дамса2х6,3

Танкерис

Елизаветинка2х2,5

Новомарковка2х6,3

Бестюбе

Ерейментауский р-он

Аккольский р-он

25,0+16,0

Гидроузел

Фрунзе2х6,3

Тургай

Ерейментау2х10.0;4,0

Ерейментау тяг.

Тастак

Арман2х2,0

Воздвиженка

Ильинка

Акмолинская

Аэропорт

Рождественка

Петровка2х10,0

Сабунды2х6,3

Жантеке

Кургальджино2х10,0

ВЛ 110кВна ПС"Соналы"ВЛ

110к

Вна

ПС

"Бар

шин

о"

ТЭЦ

Богенбай7,5+3,2

Степногорская5,6+6,3

Урюпинка

АлексеевкаИскра

10,0+7,5

ВЛ 35кВ

на ПС"Чапаевская"

220

500

220

220

220

220

220

220

220

220

220

КАРТА-СХЕМА ЭЛЕКТРИЧЕСКИХ СЕТЕЙ ЗАО"АРЭК" 110кВ и ВЫШЕ

220

2х40,0ГПЗ

ГПП-I 2х40,0

ЦГПП

Шептыкуль

Есиль тяг

Державинка 2х25,0

ВЛ 2

20 кВ

на

ЦГПП

Еркеншиликская тяг.

220

220

220

Державинка 2х25,0

Тасты-Талды 10,0+15,00

Жолымбет63,225;

Сары-Оба тяг.

Шантюбе



transformers, which will be replaced stepwise, the substation reconstruction

will not affect the electricity consumers. Replacement of transformers will

not lead to an interruption of the service for the consumers because when

one transformer is replaced the second one will remain operating.

Completion time for a projectis provided in Table 3.2.

According to Table 3.2, the critical stage of this project is, in particular,

the process of equipment procurement, which includes the ordering,

manufacture, factory testing and temporary switching of power

transformers.

Nowadays in Kazakhstan there are no transformer plants producing

transformers with considerable capacity, such as the transformer of 63 MVA

level. Therefore, power transformers will be imported from other countries.

Thus, AEDC provides transmission and installation services under the

contract of transfer and installation.

Table 3.2: The timing of replacement of 2x40 MVA power transformers with 2x63 MVA power transformers

2014

April

May

June

July

August

Septe

mber

Octo

ber

Novem

ber

Decem

ber

Maintenance and logistics support

Preparation of specifications, collection

of quotations

Conclusion of a contract ⃰

Transformer, planning and approval

Transformer manufacture

Installation of the 1st transformer

Conclusion of the contract for

installation of the 2nd transformer

(according to the quotation)

Installation of the 2nd transformer

Estimated 2x63 MVA power transformers will be connected to one of

the existing transformer halls in 110 / 10kV substation in Astana, one of

which is shown in Figure 3.2.

The picture of the existing substation is shown in Figure 3.3.



Figure 3.2: Transformer hall in Astana substation

Figure 3.3: Astana substation



Disconnecting of onepower transformer of 110/10 kV Astana

substation

Astana 110/10 kV substation plays a key role of the only substation in

the "Old district" of Astana. Despite the very limited amount of demand it

can be shifted into alternative substation via 10 KV distribution level of

―Astana REC‖, it could be observed an unmet demand, that is nearly 18 MW

in this case, as shown in Figure 3.4

Figure 3.4: Disconnecting of one of 40 MVA power transformerin Astana

110/10 kV (de facto)

If to assume that after the replacement of the existing 40 MVA power

transformers with 63 MVA power transformers there will be unexpected

expenses and some adjustments in the work, which are previously taken

into consideration to prevent voltage drops, as shown in figure 3.5.

Figure 3.5: Disconnecting of one of 63 MVA power transformerin Astana

110/10 kV (after the proposed investment)



3.2 Methodology and scope of the study

This IEE covers the environmental requirements applicable in the

Republic of Kazakhstan and ADB requirements, description of the

background characteristics of environmental and socio-economic conditions,

potential impacts on the environment, land acquisition/resettlement,

indigenous people and other social issues related to the reconstruction of the

substation in Astana City, the recommended mitigation measures and

programs for management of ecological and social environment (PMESE).

IEE is based primarily on previously prepared project documentation and

consultations with representatives of the companies AEDC and CAEPCO

(within activities related to JSC "AEDC"). The preparation of this IEE was

done on the basis of theoretical study and consultation with the developers

of the substation reconstruction project. Consultations were heldwith the

participation ofthe Chief Engineerof AEDC, Chief Engineer of AkmolaMES,

Project Chief Engineer, Energy Divisionof Akmola Oblast Akimat, Department

of Ecologyin Astana, as well as interestedindividuals.

This IEE considers the reconstruction of the substation 110/10 kV

"Astana"financed by ADB.

110/10 kV Astana substation is located in the Central part of Astana at

the intersection of Omarov and Aimanov streets. The territory is not

characterized by environmental exposure, the air, water, and acoustic

environment is not polluted, and there are no objects of national importance

protected or located in close proximity to the facility.

Reconstruction and modernization of"Astana"Substation will be

performed on the territoryof the existingsubstation, so there are

noresidential orpopulated areas in the sanitary protection zone, and

thereforeno additionalland acquisitionis required for the substation to be

reconstructed.

The proposed investment activity includes the works on partial

modernization, consisting of the reconstruction of the substation,

improvement of the automated system of electricity consumption, the

acquisition of specialized equipment, procurement of custody transfer

metering station, procurement of computers and software, and so on.

Improvements that can be made in Astana include the replacement of the

power transformer of the existing substation.

The main purpose of these investments is to increase network

reliability, reduce losses, ensure security of power supply and reducing the

number of failures by improved infrastructure, which is especially important

in the harsh winter conditions.



II KAZAKHSTAN AND AKMOLA REGION

4 Kazakhstan

Kazakhstan is the largest landlocked country in the world and is the

ninth largest by land area country in the world (figure 4.1). In the North and

West it has borders with the Russian Federation — 7548.1 km, in the East

with China — 1782.8 km, in the South with Kyrgyzstan — 1241.6 km,

Uzbekistan— 2351.4 km and Turkmenistan— 426.0 km. The total length of

the land borders – 13,392.6 km.

The capital of Kazakhstan - Astana city (since December, 10, 1997).

Population - 697,1 thousand people. Nowadays, the system of administrative-territorial structure of the

Republic consists of 14 oblasts (provinces), 2 cities of republican

significance, 175 administrative rayons, 87 cities, 35 towns and 6982

villages 1.

Figure 4.1: Administrative map of Kazakhstan

Ethnic composition of the country is as follows: 63,1% Kazakhs, 23,7%

Russians, 2,9% Uzbeks, 2,1% Ukrainians, 1,4% Uyghurs, 1,3% Tatars,

1,1%, Germans, 4,5% and others. 52.6 % of the population lives in the

cities. 3-4% of the population has no access to the electric power.

1Web Site of the Parliament of the Republic of Kazakhstan www.parlam.kz

http://www.parlam.kz/



5 Economics

Kazakhstan shows the "power" growth of the economy. Owing to the high

world prices for crude oil, values of GDP growth during the period from 2000

to 2007 made from 8.9% to 13.5%, and in 2008 and 2009 decreased by 1–

3% with the subsequent rise since 20102(average annual growth rate in

difficult percent - 8.2% during 2001-2011). Other main points of export

from Kazakhstan include wheat, textile products and cattle. It was predicted,

that Kazakhstan will become the leading exporter of uranium by 2010, and

this forecast really came true3.The power industry is the leading sector of

economy. Production of crude oil and the liquefied natural gas from the oil

and gas fields of Kazakhstan is the main driving force. Oil export of

Kazakhstan in 2003 was estimated more than at 7 billion dollars,

representing 65% of total exports and 24% of GDP. According to the

industry analysis, the expansion of oil production and development of new

fields will give to the country the chance to make to 3 million barrels

(480,000 m3) of oil a day by 2015 and Kazakhstan will take a place among

10 best manufacturing countries of oil raw materials.

For economic development the most important fact is that RK takes

the 11th place in the world on explored reserves of oil and natural gas4.

According to 2012-2013 data of the World Economic Forum presented in the

Global report on Competitiveness,Kazakhstan takes 51st place in the world

on economic competitiveness that is much higher,than the 72nd place by

results of the report for 2011-2012 and 2010-20115.

6 Akmola oblast and Astana city

The Akmola oblast is located in northern part of the country. The area

was founded in 1939. The Akmola oblast borders with four other areas of

Kazakhstan: Kostanay oblast (to the West), the North Kazakhstan oblast (to

the North), Pavlodar oblast (to the East), and Karaganda oblast (to the

South).

2World Bank, Information search worldbank.org

3Website Kazatomprom National Company, Kazatomprom.kz. 2009-12-30; Uranium and Atomic Energy in Kazakhstan, world-nuclear.org. 2011-02-17 4International Crisis Group. 2007. Energy risks in Central Asia, Asian Report №. 133. May. Available

http://www.crisisgroup.org

5TheGlobalCompetitivenessReport 2012–2013

http://www.crisisgroup.org/



The total area of the oblast is 146,2 thousand sq.km (as of January,1,

2014) that makes 5,4% of the territory of Kazakhstan. The oblast is a

midsize area of the country (9ththe largest, or 6th the smallest oblast).

The map of Akmola oblast with rayons is given below, in Figure 6.1:

Figure 6.1: Map of Akmola oblast and districts6

Akmola oblast includes 17 rayons, 10 towns, 2 of which are the towns of the

oblast level and 8 towns of the rayon level and 631 settlements. Detailed

information on administrative districts of Akmola oblast, including their

areas, also number of the towns and settlements are given in Table 6.1:

below.

Table 6.1: Administrative rayons of Akmola oblast (as of the beginning of

2014)7

Rayons of the

oblast

Area,

thousand

sq.km.

Number of

rayons

Number

of towns

Number of

settlements

Total for the oblast 146.2 17 10 638

Kokshetau town 0.4 - 1 4

6SiteofPrimeMinisteroftheRepublicofKazakhstan 7Source: Agency on Statistics, 2014



Rayons of the

oblast

Area,

thousand

sq.km.

Number of

rayons

Number

of towns

Number of

settlements

Stepnogorsk town 1.5 - 1 12

Akkol 9.4 1 1 30

Arshaly 5.8 1 - 33

Astrakhan 7.4 1 - 36

Atbasar 10.6 1 1 35

Bulandy 5.1 1 1 38

Burabay 5.9 1 1 54

Egindikol 5.4 1 - 13

Enbekshilder 11.0 1 1 38

Ereymentau 17.8 1 1 34

Yesil 8.0 1 1 33

Zhaksy 9.7 1 - 31

Zharkain 12.1 1 1 23

Zerendy 7.8 1 - 79

Korgalzhyn 9.3 1 - 22

Sandyktau 6.4 1 - 41

Tselinograd 7.9 1 - 53

Shortandy 4.7 1 - 29

Joint-Stock Company "Akmola Electricity DistributionCompany" (AEDC)

is responsible for all area, except Burabay, Enbekshilder, Zerendy districts

and the oblast center of Kokshetau.

Astana-the new capital ofthe Republic of Kazakhstan. The city

territoryis 0,7thousandsquarekm,bordered with Akmola oblast.By the

administrativeterritorial structure the city hasthree areas: Almaty,

SaryarkaandYesil.

The populationof the city as ofJanuary 1, 2014amounted

to814,4thousand people.The population density as of1 January 2014–

1147,1people per 1 square. km.

Astana is locatedin the northern partof Central Kazakhstanon the bank

of the riverIshim. The relief ofthe urban areais characterized bya lack of



noticeabledeviationsandclearly definedforms.A distinctive featureis itssharply

continental climate.Winters are cold, long, severein some years. Steady

snowcover is formedin the middle ofNovember

and lasts 130-140days.The average January temperature-17º C, some

daysit goes down to-42ºC. Summers are moderatelydry, characterized

byhot, dryweather.The average temperaturein Julyvariesfrom +23 ° Cto

+19ºC, frequently the temperature raises up to +40,+42º C. The duration

ofthe warm period is 213days.Annual rainfallis 300 mm.The averageannual

wind speedin Astana is 5 m / s.

Astana is the political, business and cultural centerof the Republic

ofKazakhstan, the center for theinternational symposiums, conferences,

summits, seminars, workshopson a widerange of issuesof human

development.During theyears ofthe capital establishment, the city economics

has been rapidlygrowing.Socio-economic indicators characterizing the

development of the city prove on the formed trendofdynamicgrowth ofthe

real economy,increase of the investments flow into the economyof the

capitaland enhancement of the social indicators.

7 Electric power

The Ministry of Energy is the government body responsible for power

policy. The Law on the Electric power was adopted in July, 2004. One more

basic law regulating the market of the electric power is a Law on Natural

Monopolies and controlled markets with the last amendments of December,

2008. The Agency on Regulation of Natural Monopolies (AREM) acts as the

market regulator.

The electrical power system of Kazakhstan includes 71 power plants

with the general rated volume of 18,572 mV8. 86.5% of the generated

electric power is privatized. About 3-4% of the population in rural districts

are not connected to the grid. There are no seasonal variations of energy

supply.

Available capacities don't provide sufficient demand. Northern regions,

including Akmola, East Kazakhstan, Kostanay and Pavlodar oblasts have an

excess reserve of power of 1,980 MW or 7.6 million kWh annually; the

excess power is transmitted to other regions of Kazakhstan and exported to

Russia. In the western regions (Atyrau, Mangistau and West Kazakhstan

oblasts) deficit of power of 77 MW is observed or 0.2 billion kWh which is

covered due to import from Russia. In the southern regions (Almaty,

8Kazakhstan – marketof electric power. Internationalnetworkofpowerregulation



Zhambyl, Kyzylorda and South Kazakhstan oblasts) there is a tendency to

formation of deficit of power of 956 MW or 4.8 billion kWh which is

compensated for the account of transfer of the electric power from northern

regions and import from the Central Asian republics. The central region

(which is usually regarded as part of a northern zone), including the

Karaganda oblast has a deficit of power of 619 MW. In the Aktobe oblast

(which is also a part of the Northern zone) deficit of 325 MW is observed.

Thus, in all regions of Kazakhstan, except the northern oblasts where the

surplus is observed, there is a regional deficiency of electric energy.

The transmission system belongs and is operated by the KEGOC

National Company. As of January 1, 2012, the total length of transmission

lines made 24,101 thousand km9. There are 18 regional distribution

companies (sellers). The Government doesn't regulate a retail selling price of

electricity, and consumers have a free choice among the suppliers of the

electric power; though the similar isn't applied in practice for a number of

reasons, including the standard decisions, such as to keep the process of

taking the meters’ readings for the company seller, instead of the company

distributor. On the other hand, the Government regulates the tariffs for

transmission and distribution.

Kazakhstan plans to invest 9.4 trillion tenge to strengthen the power

sector up to 2030. About 5.5 trillion tenge will be directed for the power

production, 1.4 trillion will be invested in national power grids and 2.5 trillion

tenge will be allocated to the regional distribution companies. The draft

document published in October 2012 assumes the creation of standard

electric system with decreasing the environmental load, increasing a share

of renewable energy sources in the energy production in Kazakhstan and

introduction of power-efficient technologies10.

7.1. Organization of power industry sector: state regulation

State regulation is explained in the Law on Power Industry of the

Republic of Kazakhstan by means of the following items11:

1. State regulation in sector of the electric power is applied for:

9Kazakhstan– marketofelectricpower. Internationalnetworkofpowerregulation 10Kazakhstan project in the amount of 9.4 trillion tenge to strengthen the energy sector until 2030,

Central Asian Newspaper (Satrapia), November 8, 2012 11RKLawOn Electric Power Industry‖ dated July, 9 , 2004



1) the maximum satisfaction of demand of energy consumers and

protection of participants' rights of the market of electric and thermal energy

by creation of the competitive conditions in the market that guarantee the

consumers a right to select the suppliers of electric and thermal energy;

2) ensuring a safe, reliable and stable functioning of an electrical

power complex of the Republic of Kazakhstan;

3) unified management of an electrical power complex of the Republic

of Kazakhstan as an especially important life support system of economic

and social complexes of the country.

2. Goals of state regulation in the field of power industry are:

1) effective, safe functioning and development of an electrical power

complex on the basis of unified management and competition development;

2) consumers’ rights to choose the supplier of electric and (or) thermal

energy;

3) regulation of activity in the sphere of natural monopoly, and also

creation of conditions for protection of domestic producers of energy;

4) creation and improvement of controlled market of electric and

thermal energy;

5) effective and economic consumption of electric and thermal energy;

6) use and development of renewable and nonconventional power

sources;

7) attraction of investments into development and re-equipment of an

electrical power complex;

8) creation of conditions for performance of a set of actions for

environmental protection, reliability and safety of construction at operation

of power lines, electro - and power installations;

9) creation of conditions for the organization of power supply to the

remote regions of the country;

10) establishment of national standards of functioning of the unified

electrical power system of the Republic of Kazakhstan and quality of electric

energy.

3. State regulation in the field of power industry includes:

1. licensing

2. regulation (prices, tariffs);

3. demonopolization and privatization of power generation facilities;

4. state supervision of reliability, safety and profitability of production,

transmission, dispatch control and consumption of electric energy;

5. technical regulation of the power industry sector.



7.2 Organization of the power industry sector: key participants

Key participants of sector can be described as follows:

The Ministry of Energy establishes the sector policy, controls and

regulates the power industry sector;

The Agency on Regulation of Natural Monopolies (AREM) is the

regulator of the organizations which are regarded as "natural monopolists",

including the companies dealing with the energy transmission and

distribution and the central distribution of the electric power; thus, the

Agency also regulates the tariffs connected with it. AREM also controls the

acquisition of shares or assets of the enterprises of natural monopolies;

KEGOC – the operator of a high-voltage network – includes the

National Distribution Centre and serves as the system operator of National

System of Power industry;

The Agency on protection of the competition controls work of the

competitive markets for determination of the abuses in the market and

prevention of market manipulations;

Kazakhstan operator of the electric energy and power market

(KOREM) operates the centralized trade platform for short-term, medium-

term and long-term trade;

The Committee for ecological regulation, control and the state

inspection in an oil and gas complex of the Ministry of Energy of RK creates

conditions for preservation, restoration and improvement of environmental

quality;

The Regional Energy companies divided into the Regional Electric

Distribution Companies (REDC) and Regional Power Sales Companies

(RPSC), i.e. into the distribution and sales companies, respectively.

Privatization of the regional distribution companies (REDC) moves slower in

comparison with energy production sector, since the majority of distribution

networks are still not privatized;

Akimats which are the governments of the city, oblast and rayon

levels playing the role of RPSD in such significant cities, as Astana and

Almaty;

Wholesale companies: The wholesale market of the electric

power is based on bilateral contracts.

Production companies: the electric power is generated by more

than sixty power plants. Most of electric power producers in Kazakhstan are

the private companies with a foreign share in property;



Balancing is carried out by the System Transmitting Operator

with involvement of power systems of Russia, Kyrgyzstan and Kazakhstan

producing companies.

The following Figure 7.1 illustrates operations between the main

divisions in the power industry sector of Kazakhstan.

Figure 7.1: Review of basic power institutions in the Republic of

Kazakhstan12

7.3 Organization of power industry sector: key rules of the

market

Some key points of market transactions, which have the main impact

on the Electric Distribution Companies, can be described as follows:

According to the privatization model, REDC not only has the

rights for operation as the network operator of the electric power

distribution, but also owns all assets;

REDCs are the natural monopolies in the sphere of electric power

distribution in the regions of service therefore they are regulated by AREM,

i.e. the distribution tariff is a regional one;

REDCs are not allowed to get profit by means of volume over the

planned sales. After covering the approved capital or operational

12 "KEGOC" (2011) Annual Report



expenditures by the planned volume of electric power sales, the profit

received from the additional sales will be transferred either to the account of

future collections, or to be transformed to the investments;

Rules of price formation on the controlled markets define the

reasonable price as the price determined on the basis of the reasonable cost

and profit for anentity of the controlled market. In our case ―an entity‖ in

this definition could be the "distribution" company;

As the result of the above, the regulated distribution company is

allowed to get reasonable profit only in structure of the authorized value.

However, during the 3-year tariff period, additional profits are possible

through capital expenditure after improvement of operational efficiency, in

particular through gradual reduction of "accounting by heads" by means of

the increased use of information technologies in this sector;

On March 1, 2013 the methodology of calculation of tariffs was

entered. It is expected that so-called "a method of comparative indicators":

o Will determine parameters of operational efficiency of REDC by

means of the comparative analysis with other REDC;

o Will establish the purposes for each REDC to increase the efficiency

by taking into account the cost of the tariffs adjusted for certain

parameters of efficiency in accordance with the current method;

o Will take into account the tariff investment component including

depreciation and profit.

Power supply companies operate on the free competitive market

irrespective of "parent" REC that means that in the Kazakhstan sector of the

electric power distribution there is a horizontal unbunding of prices, at least,

from the theoretical point of view;

The wholesale market is based on bilateral contracts and the

market of spot goods;

On the basis of bilateral contracts and results of the centralized

trade, the System Operator prepares the preliminary schedule of the electric

power distribution;

Wholesale market buyers are the companies-suppliers of the

electric power which resell the electric energy to the retail buyers;

KOREM trade platform is the only part of the Kazakhstan

wholesale market where the price is generated;

In 2009 for all companies-producers the "ceiling" tariffs were set.

The companies-producers were divided into 13 groups, for each of these

groups the "ceiling" tariffs were established. No payments are made to the

companies-producers above this tariff.



III POLICY, LEGAL AND ADMINISTRATIVE FRAMEWORK

This Project should comply with the environmental requirements of RK

and also the requirements of the financing organization, in this case ADB

have to be observed in the Project.

8 National legislation in the field of environmental protection

of the Republic of Kazakhstan, legal regulations and directives

The hierarchy of legal acts in the Republic of Kazakhstan corresponds

to the following levels:

• The Constitution of the Republic of Kazakhstan;

• International agreements ratified by the Parliament;

• The constitutional laws of the Republic of Kazakhstan, the

Government resolution and decrees of the President of the Republic of

Kazakhstan which have the force of the constitutional laws;

• Codes and ordinary laws; and

• Other regulations, normative decrees, etc.

Constitution of the Republic of Kazakhstan

The Constitution of the Republic of Kazakhstan (adopted on August

30, 1995) states that land (surface and underground) belong to the State,

but also can be privatized (Article 26.3). The state shall set as a purpose the

environmental protection favorable for the life and health of the person.

Officials shall bear responsibility for concealment of facts and circumstances

threatening to the human life and health in accordance with the law (Article

31).

Environmental legislation and regulations

The comprehensive legislation establishing the legal framework of the

Republic of Kazakhstan for environmental protection is briefly described

below.

In Kazakhstan the protection of nature is under authority of the

Ministry of Environmental Protection, which was established by the

Environmental Code of the Republic of Kazakhstan (The RK Law 212-III

dated January 9, 2007). Adoption of the Environmental Code represents a

combination of the majority of the existing nature protection regulations into

one document to make the system of environmental standards more

transparent and to make environmental information more available. The

Environmental Code includes (i.e. the included and existing the most

significant policies and practices established by the provisions) three basic



environmental laws of the RK, which prevailed at that time (the Law on

Environmental Protection, the Law on Ecological Expertise and the Law on

Protection of the Atmosphere):

• Law on Environmental Protection (the RK Law 160-1 dated January

15, 1997). Provisions of the Law on Environmental Protection are

subsequently included into the structure of the Environmental Code (2007)

which establishes the basic principles of environmental protection

management, environmental information and its disclosure, environmental

monitoring, ecological audit, ecological disaster, and control (survey) of

environmental protection. In 2004 the Law was amended by including the

provisions on waste management. In 2005 the Law was amended again by

introducing the obligatory and voluntary ecological audits.

• Law on Ecological Expertise(RK Law No. 85-1 dated March 18,

1997). The Law on Ecological Expertise as amended on December 20, 2004

is included subsequently into the Environmental Code (2007) which

regulates the procedure for carrying out the ecological expertise, including

the issues of financing, conclusions issued by the commission of experts,

and also responsibilities for violation of the ecological expertise legislation.

• Law on Protection of the Atmosphere(RK Law 302-11 dated March

11, 2002). The Law on Protection of Atmosphere defined the main conditions

and principles of the state control of the air environment , determined the

competences of government bodies, identified the rights and obligations of

individuals and legal entities, and also established the main requirements

forthe state control procedures with regard to hazardous sources of air

pollution and air protection.

Table 8.1: The legislation and regulations on environmental assessment in

the Republic of Kazakhstan and those applicable to operations of AEDC and

CAEPCO (within the activity connected with AEDC)

Title of law / regulation Date and number of registration

Environmental Code of the Republic of

Kazakhstan

9 January 2007, № 212-p

Forest Code of the Republic of

Kazakhstan

8 July 2003, № 477-II

Land Code of the Republic of Kazakhstan 20 June 2003, № 442-II

Water Code of the Republic of

Kazakhstan

9 July 2003, № 481-II

Law on Subsoil and Subsoil Use 24 June 2010, № 291-IV\

Law on Obligatory Environmental 13 December 2005, № 93




Insurance

Methodology for Determining the

Normative of Emissions to the

Environment

Approved by the Order of the Minister

of Environment Protection, 19 April

2012, № 110-p

Instruction on Conducting Environmental

Impact Assessment of Planned Economic

Activity when Developing Pre-planning,

Planning, Initial Project and Project

Documentation


of MEP, 28 June 2007, № 204-p

The Amendments to the Order of the

Minister of Environment Protection of

the Republic of Kazakhstan on Approval

of ―Instruction on Conducting

Environmental Impact Assessment of

Planned Economic Activity when

Developing Pre-planning, Planning,

Initial Project and Project

Documentation‖


of Environment Protection, 20 March

2008, № 62-p

Regulations on Conducting State

Ecological Expertise

Approved by Order of Minister of

Environment Protection, 28 June

2007, № 207-p

The Amendments to the Order of the

Minister of Environment Protection of the

Republic of Kazakhstan on Approval of

Regulations on Conducting State

Ecological Expertise


of Environment Protection, 9 October

2007, № 296-p

Rules for Conducting Public Hearings Approved by the Order of the Minister

of Environment Protection, 7 May

2007, № 135-p

Instructions for Qualifying Requirements

to Licensed Activity on Environmental

Design, Regulation and Development of

Environmental Impact Assessment


of Environment Protection,

21 October 2003, № 239-p

Final Environmental Supervision Experts

Opinion on Definite Types of Licensed

Works and Services


of Environment Protection,

1 July 2004, № 192-p

The Rules for Licensing and Qualification

Requirements to Work Implementation

and Delivery of Services in the Field of

Environmental Protection

Approved by the Order of the RK

Government, Ministry of Environment

Protection,




5 June 2007, №457-p

The normative base of requiring an

environmental impact assessment

Instruction on conducting

environmental impact assessment of

planned economic activity when

developing pre-planning, planning,

initial project and project

documentation, approved by the

Order of the Minister of Environment

Protection, 28 June 2007, № 207-p

RK Law On Amendments and Additions

to Some Legislative Acts of Kazakhstan

on Environmental Issues

9 January 2007, № 213-p

RK Law On Ratification of the Rotterdam

Convention on the Prior Informed

Consent Procedure for Certain

Hazardous Chemicals and Pesticides in

International Trade

20 March 2007, № 239-p

RK Law On Ratification of the Stockholm

Convention on Persistent Organic

Pollutants

7 June 2007, № 259-p

RK Government Regulation on Approval

of Rules on Issuing the Quotas on GHG

Emission

7 May 2012, № 584


of Rules of Limitation, Suspension of

Reduction of GHG Emissions

11 February 2008, № 128


of Rules of GHG and Ozone-destructive

Substance Emissions Inventory

Development

13 December 2007, № 5094


of Rules of Standards of Maximum

Permissible GHG Emissions and Ozone

Destructive Substance Use

13 December 2007, № 5087

Order on Approval of Waste Classifier Approved by Minister of Environment

Protection, 31 May 2007, № 169-p

Order on Approval of a Hazardous Waste

Descriptor Form

Approved by Minister of Environment


Order on Approval of Rules of Inclusion

of Nature Management Conditions into





Emissions Permits Protection, 16 April 2007, № 112-p

Order on Approval of Document Forms

of Environmental Emissions Permits and

the Rules of Form Completing


Protection, 30 March 2007, № 94-p

Order on Approval of Reporting

Requirements of the Results of

Production Ecological Monitoring


Protection, 14 February 2013, № 16-p

Order on Approval of Typical List of

Measures on Protection of Environment



Environmental impact assessment

Environmental protection is under authority of Committee of

ecological regulation, control and the state inspection in the oil and gas

complex of the Ministry of Energy of the Republic of Kazakhstan. The

Environmental Code was adopted on January 9, 2007 and is the main

legislative base of nature protection activity. The last edition of the

Environmental Code of the RK was adopted by the Law RK and dated July 2,

2014. According to article 36 of the Environmental Code the development of

EIA is mandatory for all types of operations which could make a direct or

indirect impact on environment or human health. The system of licensing is

a component of the Environmental Code.

Procedures provide that projects are ecologically safe at three levels:

Committee of Ecological Expertise (CEE); Department of Ecology of Astana

(DE) and the Project Initiator.

CEE is located in the capital and has the right of the first and final

opinions regarding to all EIA reports at the national level. After the approval

of the Terms of Reference (ToR) and selection of the licensed expert-

consultant for the environmental assessment (EA), it is started the

preparation of a preliminary environmentalimpact assessment (PreEIA) (in

other words it is a theoretical research of scope of work) in parallel with

development of justification by equipment of feasibility of the project begins.

DE of Astana considers PreEIA and provides written remarks to CEA. If

necessary, experts within Administration of Agriculture, Committee for water

resources, Committee for forest and hunting management of RK, Ministry of

Health and Sanitary and epidemiological service are invited to participate in

the work. Available documentation indicates that this is seldom required.

CEA receives remarks and recommendations, considers/edits them, and



preparation of EIA is approved. After review and approval of the EIA, it is

sent to the Executive Agency (EA) for execution.

The agency initiator is the third level. As the initiator of the offered

execution, AEDC bears responsibility for carrying out environmental

protection measures and ensuring compliance with EIA provisions prior to

and at the stage of detailed development of the project, and as well for

coordination of the subsequent required environmental protection measures.

The consultant who develops PreEIA usually is engaged in preparation

of the report of EIA and proceeds to a detailed analysis with a focus on field

works and collecting primary data, with exact compliance with standards and

codes of the Republic of Kazakhstan. The primary focus of EIA is given to the

preparation of a comprehensive plan on monitoring of environment and

actions for elimination of consequences (ESAP).

The term of the state environmental assessment shall not exceed two

months for objects of category I and one month for objects of II, III and IV

categories after the date of transmission of all necessary documentation

which had preliminary expert examination to the bodies involved in the state

environmental assessment.

The term of the repeated state environmental assessment for objects

of the I category shouldn't exceed one month, for objects of II, III and IV

categories shouldn't exceed ten working days from the date of registration.

During this period public hearings are held, the announcement is

placed in the regional newspaper. After completion EIA is reconsidered and

then the final version of the document is created and the certificate allowing

the initiator to start the following stage of the project is issued.

Projects in Kazakhstan are classified by the Sanitary and

Epidemiological Services of Ministry of Health (SES MH) according to five

danger levels with one being the highest as defined by norms and standards

developed in relation to human health and safety. The sensitivity of project

is measured by the SES MH Danger/Sanitary Categories. The categories are:

• Danger/Sanitary Categories 1 & 2 projects have levels of

severity/danger that trigger a full EIA;

• Danger/Sanitary Category 3 projects are considered to have lower

levels of severity/danger and as such, a lesser assessment is undertaken,

although still referred to as an Environmental Assessment;

• Danger/Sanitary Category 4 & 5 projects are considered to present

considerably lower risks of severity/danger and generally do not warrant an

assessment beyond the initial screening.

The SES MH Danger/Sanitary Categories relate to four categories of

Environmental Impact Assessment. Categorization largely follows the



sanitary classification of industrial activities established by the Ministry of

Health Care under the 2005 ministerial order ―On sanitary-and-

epidemiological rules and norms‖. The EIA Categories are:

• Category I- Danger/Sanitary Categories 1 and 2 plus investigations

and extractions of minerals, except for common minerals. Risks are ―high‖

and approval by Ministry of Environmental Protection is required. A Category

1 EIA is obligatory for large scale projects;

• Category II - Danger/Sanitary Category 3 plus extractions of

ubiquitous minerals, forestry activities and special water use. Risks are

ranked as ―medium high‖ and approval is required from territorial

government representative units.

• Category III - Danger/Sanitary Category 4 Risks are ranked as ―low‖

and approval is required from territorial government representative units.

• Category IV - Danger/Sanitary Category 5 plus projects involving

animals, except recreational fishing and hunting. Risks are ranked as ―low‖

and approval is required from local administrations.

The main objective of the EIA is to determine all likely environmental and

social impacts associated with the proposed economic activity, and to make

recommendations on how to avoid environmental degradation and other

adverse impacts. In the context of energy sector projects (including energy

transmission through aerial lines), the EIA is required to incorporate

information and assess impacts on air, water, soil, underground, flora,

fauna, socio-economic environment, etc. According to Article 36 of the

Environmental Code the ―Development of an Environmental Impact

Assessment is obligatory for all types of activities that can have a direct or

indirect impact on the environment or health of the people‖.

Permit process

The Environmental Code (2007) provides two types of permits:

• Emissions Permits. The emissions permit gives the right to individuals

and legal entities to make emissions within the specified limits. The complex

ecological permit has stiffer requirements for environmental protection than

was previously the case, particularly, regarding the disposal of wastes, and

requires that advanced technologies be used in order to minimize adverse

impacts.

• Ecological Permit. The terms of ecological permits are different for

each category of environmentally hazardous activity. Generally, the standard

term is three years and for less hazardous activities it is five. The application

procedure for the ecological permit is less difficult to secure if environmental



damage arising from the activities is minimal. Ecological permits may be

revoked or suspended if the permit holder has been in breach or default of

the statutory environmental requirements, the terms set forth in the specific

permit or contract in relation to using natural resources, or if the

environmental damage is significant. Legal entities holding ecological

permits must apply for re-issuance of their permits if they have changed

their profile or the way in which they are organized, or have adopted

technologies in order to minimize damage to the environment, or if the

system for the usage of natural resources has changed. The Environmental

Code allows RK to establish limits or annual quotas for emissions.

The contractor must obtain a clearance permit to carry out any work

where environmental effects are likely, such as tree removal, vegetation

clearing, removal of soils, culvert replacement, deviation of natural water

ways, etc. These permits can only be issued once the contractor has

prepared an environmental work plan or Construction Environmental Action

Plan (hereinafter CEAP) showing how the mitigation and monitoring actions

will be implemented. The preparation of the CEAP requires a licensed person

or company, thus the contractor must retain expertise to do this work and

must keep that person/company to oversee the operation throughout the

contract period. Compliance monitoring is undertaken by the Inspection Unit

of the Oblast Environment Department, which has enforcement and fining

powers. Inspection occurs once per year and the contractor must receive at

least a two-week notice prior to the inspection visit.

Social protection; Labour legislation; Provisions of the labour

legislation

The objective of the Labor Code of the Republic of Kazakhstan

(№ 251-III dated May 15, 2007) consists in legal regulation of labor

relations and other relations directly connected with labor and geared to

protecting the rights and interests of the parties to the labor relations and

establishing minimal guarantees of the rights and freedoms in the sphere of

labor. The tasks of the labor legislation of the Republic of Kazakhstan consist

in creating the requisite legal conditions for achieving a balance of the

interests of the parties to the labor relations, economic growth, higher

production efficiency and human welfare (Article 2).

According to Article 4, the principles of the labor legislation of the

Republic of Kazakhstan are as follows: inadmissibility of restrictions on

human and civil rights in the sphere of labor; freedom of labor; prohibition

of discrimination, forced labor and the worst forms of child labor;

guaranteed right to working conditions meeting the safety and hygiene



requirements; priority of the life and health of the employee over the results

of production activities; guaranteed right to a fair remuneration for labor not

below the minimum wage; guaranteed right to rest; equality of the rights

and opportunities of employees; guaranteed right of association of

employees and of employers for the purpose of protecting their rights and

interests; social partnership; state regulation of labor protection and labor

safety; guaranteed right of employees’ representatives to exercise public

control over observance of the labor legislation of RK.

Labor Code specifies rights and obligation of state authorities at

different levels in terms of labor relation regulation, basic rights and

responsibilities of employee and employer, issues related to employment

contracts (including content and term of the contract; documents required

for concluding an employment contract; probationary period; procedures for

conclusion, amendment, supplementation, termination, cancellation of the

employment contract; transfer of the employee; change of working

conditions; procedures related to work books and documents associated with

labor activities, etc.), protection of worker’s personal data, internal labor

regulations and labor discipline, work time (including regulations for part-

time work, shift work, night works, overtime), leisure time (including

regulations for rest and meal breaks; shift and special breaks, days off,

holidays and leave).

Normal duration of the working time shall not exceed 40 hours a week

(Article 77). A five-day working week with two days off is established for

employees. In organizations where the nature of the production and the

working conditions make introduction of a five-day working week unfeasible,

a six-day working week shall be established with one day off (Article 81).

Shift work may be established in cases when the duration of the employer’s

production process or production activity mode exceed the standard duration

of the working day. Under shift work, the duration of the work shift and

transition from one shift to another shall be established by shift timetables

approved by the employer on agreement employees’ representatives. It is

prohibited for an employee to be engaged to work on two consecutive shifts

(Article 84). The duration of a daily (inter-shift) rest period of the employee

between the end of work and its start on the next day (work shift) shall be

at least twelve hours (Article 95).

Employees shall be granted the following types of leave: (1) annual

paid leave; (2) social leave. Paid annual leave is intended for the employee

to rest, restore his working capacity, strengthen his health and fulfill other

personal requirements and is granted for a specific number of calendar days

with retention of the employee’s job (position) and average wage.



Employees shall be granted an annual paid leave of twenty-four calendar

days, unless a greater number of days in envisaged by other regulatory and

legal acts, the employment contract, collective bargaining agreement or acts

of the employer (Articles 100, 101). The social leave is understood as a

release of the employee from work for a specific period of time for the

purpose of creating favorable conditions for maternity, childcare, education

while working and for other social purposes. Employees are granted the

following types of social leave: (1) unpaid leave; (2) study leave; (3)

maternity leave and leave for adoption of a newborn (or newborns) (Article

100). On agreement between the parties to the employment contract and on

the basis of an application from the employee, he may be granted unpaid

leave. On the basis of a written application from the employee, the employer

shall provide unpaid leave of up to five calendar days for: (1) registration of

marriage; (2) birth of a child; (3) death of a close relative; (4) in other

cases envisaged by the employment contract or collective bargaining

agreement (Article 111). Employees studying at educational institutions shall

be granted study leave for preparing for and taking tests and examinations,

carrying out laboratory work, preparing and defending diploma work

(project). Payment for study leave shall be determined by the employment

contract, the collective bargaining agreement, and the study agreement

(Article 112). Pregnant women, women who have given birth, women (men)

who have adopted a newborn shall be granted the following types of

maternity leave: (1) ante-natal and post-natal leave (seventy calendar days

ante-natal and fifty six calendar days post-natal paid maternity leave); (2)

paid leave to employees adopting a newborn (from the date of adoption until

expiry of fifty six days from the birth date of the child); (3) unpaid childcare

leave until the child reaches the age of three years (Articles 113, 193, 194,

195).

Chapter 11 of the Code addresses occupational training, re-training

and further training related issues.

Social partnership in the Republic of Kazakhstan is designed to fulfill

the following tasks: (1) creation of an effective mechanism for regulating

social, labor and associated economic relations; (2) promotion of social

stability and social consensus on the basis of objective consideration of the

interests of all strata of society; (3) promotion of guarantees of the rights of

employees in the sphere of labor; their social security; (4) promotion of the

process of consultations and negotiations between the parties to the social

partnership at all levels; (5) promotion of resolution of collective labor

disputes; (6) development of proposals for implementing state policy in the

sphere of socio- labor relations (Article 258). Social partnership shall be



ensured in the form of interaction between the parties through social

partnership bodies at the republican level, branch level, regional (region,

city, district) level, as well as at the level of organizations in form of

agreements or of collective bargaining agreements establishing specific

mutual obligations in the sphere of labor between employees’

representatives and the employer (Article 260). The principles for holding

collective bargaining negotiations are: equality and respect for the interests

of the parties; freedom of choice in discussing the matters constituting the

content of the collective agreement or other agreement; voluntary

assumption of obligations by the parties; abidance by the labor legislation of

the Republic of Kazakhstan (Article 281). The law specifies procedure for

holding collective bargaining negotiations, elaborating and concluding

collective bargaining agreements; content and structure of the collective

bargaining agreement; terms and sphere of operation of the collective

bargaining agreement; liability of the parties, consideration of collective

labor disputes, etc.

Labor Code provides detailed consideration of labor protection and

labor safety issues. In particular, to ensure labor protection and labor safety

the employer shall: undertake measures to preclude any risks in the work

place by means of prevention, replacement of equipment and technological

processes with safer ones; provide employees with training and instruction

in labor protection and labor safety; undertake organizational and technical

labor protection and labor safety measures; provide instruction and

documents on safe performance of the work; undergo verification of

knowledge of labor protection and labor safety and organize testing of

managers and experts in accordance with the rules approved by the state

labor authority; create necessary sanitary and hygiene conditions for

employees, provide for repairs to special clothing and footwear of

employees, supply them with means of protective treatment, washing and

disinfectant, a first aid kit, milk, therapeutic and healthy meals in

accordance with the standards established by the state labor authority;

provide the state labor authority and other relevant entities with the

necessary information on the state of working conditions, labor protection

and safety; fulfill the directives of the state labor inspectors; register, record

and analyze industrial accidents and cases of occupational disease; with the

participation of employees’ representatives, perform periodical, at least once

every 5 years, certification of production facilities with respect to working

conditions, as well as mandatory certification after renovation,

modernization, installation of new equipment or technologies; insure liability

for harm caused to the health and life of the employee in performance



thereby of his job duties; provide safe working conditions; carry out, at its

own expense, periodical (during employees’ working lives) medical

examination and pre-shift medical certification of employees in cases

envisaged by RK legislation; take urgent measures to prevent development

of emergency situations and the impact factors capable of causing injury to

other persons (Article 317). Obligations of the employee in the sphere of

labor protection and labor safety include: provision of immediate notification

to superior regarding any accident occurring at work, any signs of

occupational disease (poisoning), or any situation jeopardizing human life

and health; mandatory periodical medical examinations and pre-shift

medical certification, as well as medical certification for transfer to other

work for production purposes or in the event of signs of occupational

disease; application and use for their designated purpose means of personal

and collective protection provided by the employer; carrying out therapeutic

and health restoration measures prescribed by medical institutions if

financed by the employer; preservation of the requirements of the

standards, rules and instructions on labor protection and labor safety, as

well as the employer’s requirements on safe performance of work at the

work place (Article 315).

Land Use Legislation and Regulations

The Land Code of the Republic of Kazakhstan (RK Code № 442-II of 20

June 2003) establishes the foundations, conditions and limits for modifying

or terminating ownership of land and land-use rights, describes the rights

and responsibilities of landowners and land users, and regulates land

relations. It also establishes conditions for granting to citizens and legal

entities temporary or permanent use rights to State-owned land (Article

35)).

The Code does not permit alienation of land ownership and land use

rights without the consent of the owner/land-user, except for alienation for

state needs (Article 81.2.2). A land plot can be alienated for state needs by

way of purchase or by granting an equivalent plot with the consent of the

owner or land user, or by decision of the court (Article 84.1). Construction of

the power transmission lines and infrastructure for communities is one of

several grounds for compulsory acquisition of a land plot for state needs

(Article 84.2.4). Leaseholders of State-owned lands are compensated in full

for the losses and, at their request, may be granted an alternative plot

subject to availability of suitable land (Article 84.4).

The owner of the land or land user must be notified in writing by the

body that made the decision to purchase at least one year prior to



acquisition, unless the owner or land user agrees to release the land before

(Article 85.2). If the remaining portion of the land can no longer be used for

the intended purpose, then the entire plot must be purchased (Article 86.2).

If the owner or land user disagrees with the decision to purchase his

land for state needs, or disagrees on the price of the acquired land or other

terms of acquisition, the local executive authority, which decided on

acquisition, may file expropriation case (Article 88).

Upon termination of land ownership or land use right the cost of land

or land-use right is defined by the amount paid to the state (Article

96.1). Upon termination of land ownership or land use right the value of the

land granted for individual housing construction, for individual part-time

farm (except field plots) on which an individual house is located, is defined

by the cost of the land, not exceeding market cost (Article 96.2 as well as

Article 67.2 of the RK law on state property). Upon termination of land

ownership right the cost of the land, passed to the owner or user by a

contract or court decision is defined by the value specified in a contract or a

court decision, but not exceeding the market cost. In case the land cost is

not specified in the contract or the court decision, the value of the land is

assessed by its cadastre (estimated) cost (Article 96.3).

The Land Code provides for base rates of payment for the land plots

and the cadastral value of land in order to determine the cost of the land.

Basic rates of payment for the land plots when they are transferred to

private property in the capital are established by joint decisions of the

representative and executive bodies of the capital, depending on local

conditions and peculiarities. The rates of payment for land use shall not be

established at a level below the land tax rates. Payment for selling the right

to lease is differentiated from the cadastral (estimated) cost of a particular

plot of land. Base rate of payment for land plots is calculated in accordance

with the Decree of the RK Government dated 2 September 2003 № 890 "On

establishment of base rates for the land plots".

Cadastral (estimated) cost of a land plot is determined by specialized

state-owned enterprises responsible for operation of the state land cadastre,

in accordance with the base rates of payment for land plots transferred to

private property, with application of corrective (increasing or decreasing)

coefficients to account for inflation, land conditions and location. In

determining the amount of compensation, following shall be included: (a)

the cost of land or land-use rights; (b) the market cost of the

assets located on the plot, including fruit trees and perennial plantings; (c)

cost of the expenditures associated with development of the land, its

operation, implementation of protective measures, improvement of soil



fertility taking into consideration their inflation; (d) all losses inflicted on the

owner or land user as a result of land acquisition at the time

of termination of ownership or land-use right, including losses they incur due

to early termination of their obligations to third parties; and (e) loss of

revenue (Article 166.2). The amount of compensation is established based

on the agreement among the parties (Article166.3). In case of

disagreement, the land cannot be taken until the court adjudicates a

settlement (Article 166.7).

The Land Code does not entitle encroachers to compensation for the

right to use the lands they use informally (squatters) or those who have not

registered their claims to lands.

The Law on State Propertyof the Republic of Kazakhstan (№ 413-

IV LRK dated 1 March 2011) states that in case of compulsory acquisition of

land or other real property for state needs, the government agency or local

executive body should issue a decree that indicates:

the purpose and grounds for compulsory acquisition for state needs; the location, size, cadastre number of land plot;

the property owner or private land user; the date of compulsory acquisition, but not earlier than three months

from the date of official publication of the decree; place of application for land owner or land

user for conciliation procedures.

The Decree shall be published in national or local mass-media, within

three working days from the date of adoption. In case the right of

private ownership of land plot is not registered in accordance with

the legislation of the Republic of Kazakhstan, the owner, after the adoption

of the decree, may make the necessary arrangements to register his/her

right on the affected land plot. The period of compulsory acquisition for state

needs set by the decree cannot be extended by more than six months

(Article 63).

The acquiring authority is required to send to the owner or land user a

written notification on the compulsory acquisition for state needs not later

than 3 calendar days after the publication of the decree. The notification

shall also include the draft purchase agreement for the land plot or other

real property in connection with the seizure of land plot for the state needs.

The notification shall be sent by mail with the mandatory notice

of receipt (Article 64.1).

The compulsory acquisition of the land plot or other real property in

connection with the seizure of land plot for state needs is carried out



after the expiry of the deadline set in the Decree, either with the consent of

the land owner or land user, or by court decision. Termination of the rights

to private property and land use rights, as well as the State's right

to land and other real property is subject to state registration by the

authority responsible for state registration of rights to real

property, the purchase agreement for land plot or other real property, or a

court decision and the statement of the authority that adopted the Decree. A

local executive authority shall submit to the relevant local representative

authority the draft purchase agreement for the land or other real

property within two months after receipt of notification by the landowner or

land user about the acquisition of the land plot or other real property. The

draft agreement is considered by the standing commission of the local

representative authority not later than two weeks from the date of its

submission to the mandatory invitation of the owner and people whose

rights in respect of alienated property will be terminated or limited. Upon

reaching an agreement with the owner or land user of acquired property and

other people whose rights in respect to the acquired property will be

terminated or limited, the purchase agreement for the land or other real

property is approved by the executive authority in accordance with the local

representative authority and is signed by the owner or land user (Article 65).

The contract for the purchase of a land plot or other real estate in

connection with the seizure of land plot for the state needs, shall include:

(1) the price of the land plot to be alienated and characteristics of the real

estate or land plot to be transferred to the owner or land user as a

substitute for the alienated one, 2) the difference in value if the price of the

alienated land plot is higher than the price (value) of land provided as a

replacement for the alienated one, (3) the amount of damages to be

compensated, including the value of real property received due to alienation

of the land plot for state needs, if such damages caused as a result of the

forced alienation; (4) the term of payment for the cost of alienated land or

other real estate due to alienation of the land plot for public use or transfer

of the land plot (or other property) transmitted to the owner as a substitute

for the alienated land plot for stateneeds; (6) a list of persons whose rights

in relation to the alienated property will be terminated or limited; (7) the

procedure for financing the public expenditure on the acquisition of property

for state needs. The actual transfer of the land plot or other real property

alienated for state needs can take place only after the land owner or land

user receives a fair compensation (Article 65).



The cost of the land plot alienated for state needs provided for

individual housing construction or private farming (except the field plots), on

which an individual house is located, shall be determined by the cost of the

land plot not exceeding its market cost (Article 67.2 and Article 96 of the

Land Code of the Republic of Kazakhstan). The cost of real estate located on

the land plot is determined in an amount not exceeding the market value.

The market value of the land plot or other immovable property shall be

determined by an independent appraiser at the time when the land owner or

land user receives a notice of the forced alienation of the land for state

needs (Article 67.3).In agreement with the landowner or land user, the land

plot alienated for state needs can be replaced by another land plot, by

offsetting the cost of provided land plot or the rights to it in the cost of the

alienated land plot or the rights to it, according to cadaster (estimated)

value (Article 67.6).Compensation of the cost of the land plot or other

immovable property due to alienation of the land plot for the state needs

and losses shall be made in full, before the transfer of ownership right for

such property to the Republic of Kazakhstan or to the administrative-

territorial unit (Article 68.1).Compensation shall be made from the budget

(Article 68.2). Non-cash compensation is allowed under the agreement

between the Republic of Kazakhstan represented by the Government of the

Republic of Kazakhstan or an administrative unit represented by the local

executive authorities and the owner of the property.

Law of the Republic of Kazakhstan on Housing Relations (№94-I of

April, 16, 1997) regulates the provision of housing for the ownership during

the demolition of a residential building due to the involuntary acquisition of

the land for the state needs. In case of demolition of a residential building in

the result of involuntary acquisition of the land plotfor the state needs, the

owner of the house before the demolition, in accordance with his/her

preferences is offered a well-equipped place of residence as a property or

compensation at a price equal to the market value of the house taken.If the

cost of the proposed house is higher than the cost of a propertyto

bedemolition, the difference in value will not be paid to the owner. If the

value of the house to bedemolishedis higher than the cost of the proposed

place of residence as a substitute for, the owner will receive the

compensation in the amount of the price difference (Article 15).

Other legislative acts (including codes, laws, government regulations,

orders of the Minister, instructions, standards, etc.) addressing the labor,

health and safety issues has been enacted. Basic laws and regulations

applicable to the AEDC operations are given in Table 8.2.



Table 8.2: Legislation and regulations on the labor, health and safety issues

applicable to AEDC and CAEPCO operations (within its activities related to

AEDC)

Law/Regulation Registration date and

number

RK Law "On sanitary-Epidemiological

Wellbeing of Population"

December, 4, 2002, №361

RK Law "On Public Health and Health

Care System"

September, 18,2009, №193-IV

RK Law "On Industrial Safety at

Hazardous Production Facilities"

April, 3, 2002, №314

RK Law "On Safety of Chemical

Products"

July, 21, 2007, №302

Administrative Directive on Rules for

Technical Operations of Power Plants

2002, №34 RK.20.501-02

State Standard for Occupational

Safety Standards. General Safety

Requirements.

1991, №12.02.003-91

Some other laws that are not directly related to environmental and

social issues of land use, but related to the project are listed below:

Law of the Republic of Kazakhstan on Natural Monopolies and

Regulated Markets (№ 272-I dated June, 9, 1998, as amended on July 17, 2009);

Law of the Republic of Kazakhstan On Joint Stock Companies (№ 415-II, dated May, 13, 2003, as amended on February 13, 2009);

Law of the Republic of Kazakhstan On Electric Power Industry

(№ 588-II dated July, 9, 2004, as amended on July, 17, 2009); Law of the Republic of Kazakhstan on Energy Saving (№ 210-I

of December, 25, 1997 as amended on, July 4, 2009) Rules of organization and functioning of the retail electricity

market, provision of the services in this market (approved by Government Decree №932 of July, 12,2012);

Rules for differentiation of tariffs for electricity supply companies in accordance with the time zones and (or) depending on the consumption

volume of individuals (approved by Order of the Chairman of the Agency for Regulation of Natural Monopolies №57-OD dated February, 20, 200);

Rules for procurement by entities of natural monopolies for purchase of goods, works and services, the costs for which are taken into



account when approving the tariffs (prices, rates) or their threshold levels

and tariff estimates for regulated services (approved by order of the President of the Agency on regulation of natural monopolies № 149-OD

dated June, 6, 2003).

International standards

In accordance with the Law of the Republic of Kazakhstan on

Technical Regulation (№ 603-II dated November 9, 2004, as amended and

supplemented on July 10, 2012), the Committee for Technical Regulation

and Metrology of the Ministry of Industry and New Technologies of the

Republic of Kazakhstan is an authorized body carrying out the state control

for safety of goods on the stage of its realization to ensure safety of goods,

processes for human life and health and the environmental protection,

including flora and fauna, as well as to prevent the consumer fraud on the

safety and quality of products and processes. The subjects of the state

control of the observance of the requirements established by the technical

regulations are the products and processes with the application of technical

regulations. The state control of the observance of the requirements

established by the technical regulations and regulations in the field of

technical regulation and uniformity of measurements is performed to audit

the legal entities and individuals, including foreign organizations on the

territory of the Republic of Kazakhstan.

Article 24 specifies that at the territory of the Republic of Kazakhstan

may be applied the international and regional standards and standardization

rules of foreign states, regional standards of technical, economic,

information, rules, guidelines and recommendations, as well as the

standards of foreign countries and organizations (which meet the purposes

of this Act (Law)). This article also states that the conditions necessary for

application of international and regional standards and foreign standards as

the national standards are the following:

Membership of the Republic of Kazakhstan in the international

and regional organizations for standardization, metrology and accreditation; International treaties of the Republic of Kazakhstan on

cooperation in the field of standardization; Existence of the agreement between the authorized body for

standardization and international or regional organizations on cooperation in the field of standardization.

International, regional standards and foreign standards to be applied

in the territory of the Republic of Kazakhstan shall not contradict to the

requirements established by technical regulations in force in Kazakhstan,



and shall be harmonized with the standards on quality indicators not lower

than the national standards and should be agreed with the relevant public

authorities (Article 24).

Since 2001, the Republic of Kazakhstan has intensified the activities of

enterprises and organizations in connection with the development and

introduction of modern management systems. It were issued the Orders of

the Prime Minister №28-r dated February,6, 2004 and № 175-r dated June,

27, 2006 on accelerated transition of local enterprises to the international

standards.In the country were established the relevant standards for the

implementation of international standards of management and compliance of

the necessary infrastructure, regulatory and methodological framework. As

the state standards of Kazakhstan the following international management

systems of International Organization for Standardizationwere adopted: ISO

9000, environmental standards ISO 14000 series, standards for

occupational health and safety OHSAS 18001, standards for social

responsibility SA 8000, standards of food safety management system ISO

22000, quality management system audit and environmental management -

ISO 19011 and others. In addition to these 15 methodological guidelines it

were developed 15 guidelines to assist the entities in the introduction of

management systems. As of 2012 Kazakhstan continues its membership in

the International Organization for Standardization and is a participating

member of 16 technical committees and a observingmember of 13 technical

committees.

AEDCenterprises received the certificatesfor compliance with ISO 9001

(Quality Management System), ISO 14000 (Environmental Management

System), ISO 18000 (Occupational Health and Safety).

9Environmental policyand guidelinesof the AsianDevelopment

Bank (ADB)

All projects for transmission and/or distribution of electric power are also reviewed and evaluated for compliance with the Safeguard

Requirements 1, 2, 3 of ADB Safeguard Policy Statements -2009 and ADB Social Protection Requirements.

Policy and principles of the Asian Development Bank

There are the following principles and standards of ADB's management

of social and environmental risks and impacts:

(i) Safeguard Policy Statement of ADB (2009)

(ii) Policy of gender and development (1998)

(iii) Social Protection Strategy (2001)



(iv) Public Information Policy (2011)

Safeguard Policy Statement of ADB (SPS), 2009 г.

SPSdefines the objectives of the policy and conditions, as well as the

principles for the following three main areas of security:

(i) Environmental safety;

(ii) Safety in the involuntary resettlement; and

(iii) Safety of indigenous people.

Objectives and scope of the three main areas are briefly described

below.

Requirement 1for the Environmental Safeguard (SR1) ensures the

environmental soundness and sustainability of the projects, and supports the

integration of environmental considerations into decision-making process for

the project. Requirements for the environmental safety are activated in the

event that the project has the potential likelihood of risks occurrence and

environmental impact.

At the stage of design, construction and operation of the project, the

borrower / customer must apply technologies and practices that meet

internationally accepted standards set forth in the relevant international

standards such as the Principles of the World Bank Group in respect of

occupational environment, health and safety.

Requirement 2to ensure securityin involuntary resettlement (SR2).

SR2requiresavoidingorminimizinginvoluntary resettlementby exploring

the projectanddesign alternativesin order toimproveor atleastrestore the

income of alldisplaced peoplein real terms with regard to the preliminary

levels of the project andimprovethe standards of living ofthe displacedpoor

andsociallyvulnerable groups.

Precautions in case of involuntary resettlementincludea physical

displacement(loss ofresidentiallandorloss of shelter) andeconomic

displacement(loss ofland,assets, access to the assets, income sources

ormeans of livelihood) as a result of(i)involuntary restrictions on land

useoran access tolegallydesignated parksor protectedareas.These

measurescoversuch lossesand involuntary restrictions, regardless of

whetherthey arefull or partial, permanent or temporary.

Requirement 3to ensure the security for the Indigenouspeople.

SR3requires thatthe design andimplementation of projects were carried out



in sucha way as togive special attention toindigenous people13, namely their

identity, dignity, human rights, livelihood systems, andcultural uniquenessas

definedbyindigenous peoplethemselves, so thatthey(i) receiveculturally

appropriate compensation, social and economic benefits,(ii) do not suffer

adverse impacts as a result of the project, and (iii) can participate activelyin

projects thataffect them.

SR3appliesif theprojectdirectlyor indirectlyimpacts on thedignity,

rights, livelihood systemsandon the culture ofindigenous peopleorimpact on

the territory, the natural and cultural resources, which the indigenous people

own, useandoccupy or state as it their ancestralterritory or assets.

ADB's Policy on Gender Identity and Development (PGID), 1998

ADB Policy on PGID puts forward the achievement of gender equality.

In relation to the projects the PGID policy:

Carrying out the gender analysis: the systematic evaluation of

the project impact on men and women, as well as economic and social

relations between them;

Carrying out the gender planning: formulation of specific

strategies, the aim of which to create the equal opportunities for men and

women;

Create a strategy to achieve the gender equality: examination of

issues of gender identity in all aspects of ADB, together with attempts to

encourage women to participate in decision-making on the development of

measures.

This policy will determine the issues of gender identity, as well as take

into account the needs and concerns of women.In particular, AEDC and

CAEPCO (within the operations related to AEDC) will provide the following:

(i) inclusion of gender analysis into the assessment of the social and

environmental impact, (ii) participation of women in the consultations, (iii)

development of measures to reduce the impact on women, and (iv) the

development of opportunities to help women.

Social Protection Strategy, ADB, 2001.

ADB’s Social Protection Strategy 2001, requires from the Borrower to

13The term "indigenous people" is used general meaning to indicate a separate vulnerable, social and

cultural group having the following characteristics in varying degrees: (I) self-identification as

members of a distinct indigenous cultural group and recognition of the identity by others; (II) a collective belonging to geographically different customs or ancestral territories in the project area

and to the natural sources of these customs and territories; (III) the existence of cultural, economic, social or political institutions that are separate from the dominant society and culture, and (IV) the presence of a particular language, often different form from the official language of the country or region. In considering these characteristics, the national legislation, the customary law and any international conventions to which the country participates should be taken into account.



comply with all labor laws in relation to the project, and to take measures to

comply with the core labor standards. Core labor standards include four

basic rights and principles of the international level at work:

(i) freedom of labour unionization and full recognition of the right to

negotiate a collective agreement;

(ii) elimination of all forms of forced labor;

(iii) effective abolition of child labor; and

(iv) non-discrimination with regard to employment and occupation.

AEDC and CAEPCO (within the operations related to AEDC), as well as

contractors and subcontractors, if possible, will use the local labor force, and

in addition will take all measures to meet the Requirements for ADB’s Social

Security (Appendix 2);

Public Information Policy, ADB, 2011

ADB’s Public Information Policy recognizes that transparency and

accountability are important elements of effective development. The purpose

of this policy is to strengthen the confidence of stakeholders in the ADB and

the ability to work with ADB. This policy recognizes the right of people to

seek, receive and distribute the information about ADB operation. It

supports the exchange of knowledge and provides the development with

public participation, or bilateral communication with the people, which are

under the impact. This policy is based on the presumption in favor of the

information disclosure, only when there is no valid reason for non-disclosure.

It forces the ADB to disclose the organizational and financial information

related to the project, as a precaution on the ADB website, observing strict

time constraints, and also provides a mechanism for resolving issues and

complaints.

To determine the specific environmental and social requirements will

be used the categorization below:

Category A: Environment –The project has the potential

significant adverse social and environmental impacts, which can be varied, irreversible or unprecedented.

These impacts may affect the territory more than the construction site or facilities subject to physical

works.

Involuntary resettlement–It is recognized, that the project has a significant impact on involuntary

resettlement in the event that 200 or more people will experience a serious impact, which is defined as

(1) a physical eviction from their homes, or (2) loss of 10% or more of productive assets (income



generation).

Indigenous people–Project will significantly affect the traditional rights of using and access to land and

natural resources, socio-economic status, cultural and community integrity, health, education,

livelihood systems and social welfare state, as well as on the local knowledge of indigenous communities.

Category B: Environment –The project has limited potential adverse social or environmental impacts, which in

some cases tend to occur in specific areas, mostly

reversible, usually evident at the time of evaluation and easily can be reduced with certain measures that

require limited or targeted environmental and / or social assessment, or direct application of good

environmental choice of the site, pollution standards, design criteria, or building standards.

Involuntary resettlement –Project has a limited involuntary impact on involuntary resettlement, if

less than 200 people will experience a serious impact, which is defined as (1) a physical eviction

from their homes, or (2) loss of 10% or more of productive assets (income).

Indigenous people–Project has no impact on the indigenous population.

Category C: Environment –The project has minimal or has no

environmental or social impact that is not a subject of the further evaluation (because of their

identification as such) with the exception of the requirements for certification / provision of

information to clients on compliance / non-compliance with local and national laws and

environmental, health, safety, and labor regulations. Involuntary resettlement–Project does not require

allocation of a land plot, which may have some impact on forced resettlement.

Indigenous people– Project has no impact on the indigenous population.

The project belongs to the category B in respect of the environmental

impact and to category C in respect of the impact on involuntary

resettlement and / or indigenous population.

The Project "Reconstruction of 110/10 kV "Astana" Substation‖does

not fall under the list of investment activities prohibited by the ADB

(Appendix 3).

The Project is classified as category B in accordance with the



provisions of the Safeguard Policy Statement in respect of security measures

ADB (July 2009). ADB uses a classification system to reflect the significance

of the potential impact of project activities on the environment. Category of

the project is determined in accordance with the category of its most

environmentally sensitive component, including the direct, indirect,

cumulative, and induced impacts in the zone of the project impact. This

Project belongs to the category B due to the fact, that it has limited potential

adverse social or environmental impacts than the projects of category A.

Such impacts are called as the specific for anobject, only some of them, if

any, are irreversible, and in most cases the measures to mitigate the

consequences can be taken faster than for the project categories.

In accordance with the ADB requirements, the PEIA report considers

the potential negative and positive impacts of the project on the

environment and recommends the measures needed to prevent, minimize,

mitigate, or compensate the adverse impact and improve the environmental

performance. This PEIA also includes a Plan for Environmental Management

with a detailed description of the mitigation measures.

PEIAreport will be submitted to AEDCand CAEPCO (within activities

related to AEDC) and will serve as a reference document for the approval by

the Asian Development Bank in the field of environmental protection. The

project initiator (AEDC) will provide a draft PEIA to the Kazakhstan public

with an access to project-affected groups and local NGOs on AEDC site. After

PEIAreport is disclosed locally and officially handed over to the ADB, the

project is subject to a 120-day disclosure on the ADB website / CAEPCO,

before its adoption.



IV ENVIRONMENT DESCRIPTION

10Aspects of the environment, health and safety of existing

production facilities (AEDC)

Currently the Environmental and Social Management System acts in

AEDC. Some units of AEDC (e.g., Department of Public Relations,

Occupational Safety and Health Department, Human Resources Department,

etc.) cover some of the environmental and social issues.

Environmental analysis, impact and risk assessment, identification

and reduction of negative impacts, environmental monitoring is carried out

by third parties under contract with AEDC, in accordance with the legislation

of the Republic of Kazakhstan (in most cases, the project consultants hired

by AEDC are the subcontracted environmental entities that deal with IEE

development). Specialized environmental entities have all appropriate

licenses required by local laws and operate in accordance with their

requirements.

The important fact is that all the activities that are carried out within

the framework of the proposed investment project are scheduled to perform

in relation to the existing production facility. It means that its environmental

impact will be minimized. Currently it is planned to replace the transformers

in Astana. After replacement of the existing transformers by the new, as

AEDCmanagement considers, that the former equipment will be used in

another substation. The entire set of activities will be carried out within the

existing infrastructure on the territory of the existing substation in Astana.

The potential environmental impact assessment is carried out within

the framework of PEIA. This assessment covers the design stage and putting

the equipment into operation. This work could have the risks associated with

the health and safety violations. However, all the potential consequences will

be minimized by proper application of new principles in the planning and

operation of the equipment. In the event that the planned activities have a

negative impact on private property (trees and crops), the compensation

measures will be implemented prior to the start of work. The proposed

project eliminates the negative impact on the environment.

In order to implement the investment program, the planned activities

will be classified, demonstrated, evaluated and implemented in accordance

with ADB's Directive on safety precautions and other social needs, taking

into account the following environmental and social principles:

It is necessary to perform an assessment of the proposed project

activity at the initial stage. This helps to prevent potential consequences;



Conduct environmental assessment of the proposed working

draft;

Study the project location and its potential impact on the

environment;

Minimize and mitigate negative impacts, increase the beneficial

effects. Preparing optimum environmental and social terms;

Consulting the stakeholders from the beginning of the project

design till its implementation in the atmosphere free of intimidation or

coercion, taking into accountthe needs of disadvantaged and vulnerable

groups. Set the procedures for handling complaints and resolving conflicts;

Improve the standard of living of immigrants, the poor and other

vulnerable people, including women;

Development of projects of environmental and social impacts,

including ESMP in time.

Lack of design in the field of critical habitat, if (I) it is revealed

the adverse effects on such habitat that may prevent it from the normal

functioning; (II) if it is established the reduction of population growth or

there is a danger of extinction. If the project is located in an area protected

by the legislation, it is necessary to implement additional programs for

development and protection of such area. In the area of natural habitat

should not be done any significant conversion, if there is no alternative (I),

or there is no overall benefit (II) of the project or the overall benefit of the

project exceeds the potential environmental costs, or if the conversion (III)

are mitigated someway;

Prevention and control of pollution in accordance with the

international practice;

Provide for the staff the safe and favorable labor conditions, as

well as preventing the risk of accidents, injuries and illnesses;

Taking the measures for the compliance with core labor

standards by the contractors / subcontractors, according to the labor law.

Corporate policy implemented in the labor market, health and safety

applicable by AEDC includes:

Labor order of AEDC that is set by the Chairman of the Board of

Directors of AEDC, of April 2, 2012, on the basis of trade union leader. Labor

legislation provides a description of the work and operations of the divisions

of y AEDC company (including employment, changing a workplace, changing

the working conditions and termination of the employment contract, basic

rights and duties of employees, basic rights and duties of AEDC’s

management bodies, protection of rights of employees, work and rest order,

procedure for payment of wages, social security basics, safety and



healthorder, training and retraining, work discipline, procedure for

consideration of individual and collective disputes, etc.);

Occupational health and safety is regulated by the Rules

established by the Chairman of the Board of AEDC of May 22, 2012, in

accordance with the relevant requirements of AEDC managers. These Rules

define the major functions of employees regarding the issues of occupational

health and safety of all structural units of AEDC;

Plan concerning thecivil defense and emergencies in peacetime is

set by the First Deputy Chairman of the Board of AEDC of March 2, 2012,

and to be agreed with the Head of Department for Emergency Situations in

Akmola region.

Corporate structure includes the HR department of AEDC which

carries out the activities related to personnel management in AEDC. The

main functions are:

Documentation of the employment relations (orders, contracts of

employment, staff training, disciplinary actions, etc.);

Collection, processing and evaluation of data on the qualification

and quantity of the personnel;

Developing models of the personnel selection and recruitment;

Arrange the activities related to training and staff development;

Making the plans aimed at realization of the HR needs of the

company, as well as monitoring of their implementation;

Analysis of possible technical and social factors that negatively

effect the efficiency of operating personnel;

Analysis of interpersonal and business relationships of AEDC

employees;

Fruitful cooperation with educational institutions, training the

AEDC employees;

active participation in the analysis and prediction of potential

changes in the organizational structure of AEDC;

keeping records of employees subject to military conscription, as

well as pensioners and war veterans, etc.

Occupational health and safety Division of AEDC includes 5 employees

who are involved in the development and implementation of a set of legal,

social, economic, organizational, technical, sanitary-epidemiological

measures aimed at the prevention of occupational accidents and diseases.

This Division supervise the operation of the specialized units in the sphere of

implementation of environmental monitoring and reporting.



10.1 Brief description of the climatic conditions of the area of

the project location

Astana is located in the steppe zone of the northern part of Central

Kazakhstan.

The climate is sharp continental with long, cold winters and short, hot

summers.

The air masses of 3 main types come to the city territory: arctic, polar,

tropical. In cold season the weather is predominantly determined by the

western extension of the Asian anticyclone. In winter clear weather sets.

Anticyclonic mode is usually kept in the spring, resulting in dry windy and

unstable weather with high daytime temperatures and night frosts.

Spring usually comes in the 2ndhalf of March and lasts 1,5-2 months.

Increasing the temperature to 0° C is observed predominantly in early April.

the stop of frost at night is observed from April, 10-19 (the early stages).

Winter is rather long, in some years, the winter in Astana lasts 5,0-5,5

months.

Autumn comes in early September, lasts until the end of October and

is more dry than the summer.

Solar radiation. The sunshine duration in the area under study is 2,200

hours per year, the maximum occurs in July. The values of annual total

radiation reach 112 kcal/cm2, and scattered radiation is up to 52 kcal / cm2.

The sunshine duration is 2452 hours, the maximum monthly average

sunshine duration - 325-329 hours is noted in June and July. According to

the data the annual variations of the radiation balance in Astana are given

below in Table 10.1.

Table 10.1: Radiation balance of the surface activity (MJ / m2) under

average cloud conditions

I II III IV V VI VII VIII IX X XI XII Year

-26 2 104 266 356 386 365 294 164 60 -7 36 1928

Air temperature.

Astana is characterized by persistent severe frosts in winter, intense

rise of temperature in a short period of spring and high temperatures in

summer. Moving average daily air temperature at 5 ° C in spring usually

occurs in the third decade of April, in the fall - in the decade of October.

In summer on the steppe areas under the influence of intense heating

of the air is set fair cloudless dry, hot weather. The hottest month is - July

with an average temperature of 20° C- ЗО°С. On hot days the temperature



may rise up to 40-42° C. Average maximum air temperature of the hottest

month is 27° C.

In early September it starts a stable freezing and at the same time can

be the earliest snowfall. The number of days with temperatures down to 25°

C and lower ranges from 10-14 to 38-45 days a year, and in some years up

to 18-20 days per month.

The coldest month is January – with the monthly average temperature

minus -17,2° C.

In some cold winters temperature can drop to 49-52° C (absolute

minimum), but the likelihood of occurrence of such temperature is quite low

(not more than 5%). Average minimum temperature of the coldest month -

January is minus 22° C. The estimated air temperature of the coldest five

days in Astana is minus 35° C.The duration of the warm period is 194-202

days and cold period is 163-171 days. The frost-free season lasts 105-130

days.

Atmosphere precipitation. The average annual rainfall in the city of

Astana is about 326 mm. By seasons of the year, the value of precipitation is

unevenly distributed: the greatest number of them falls in the warm seasons

of the year (May-September) of 238 mm, with a maximum in July. Liquid

precipitation in this regard contain 65% of the total volume, solids – about

25%, mixed-about 10%.

The seasonal snow cover is formed in the second decade of November,

the average time of destruction of stable snow cover - the third decade of

March. The annual average of snow cover depth is about 22 cm, the number

of days with snow cover are 140-160.

The area under study with southeastern quarter winds is marked by

atmospheric drought. The average number of drought may be 50-60 days

(maximum 113 days). Severe drought in the district of Astana were

observed in 1955, 1957, 1961-63, 1965, 1967, 1982, 1984 years.

Air humidity. The annual average values of the absolute humidity is

4.8 MB. The smallest value of absolute humidity is registered in January -

February – 1,6-1.7 mb; the largest is in July – 12,7 mb. The highest

moisture of shortfall is observed in June and July (12,2-12 mb).

The average annual relative air humidity in the study area makes

69%. The lowest relative humidity is observed in summer months and

contains 40-45%, the highest - in winter (80-82%).

Wind. In cold season of the year, the wind regime is determined

mainly influenced by the western spurs of the Siberian anticyclone, in warm

season – by mild barometric depression.



On the territory of the study area are dominated W, SW and S winds

(annual recurrence of about 51%). See Table 10.2 and dr.10.1, 10.2 and

10.3. And in the warm period of the year marked decrease in wind frequency

of S and SW rhumb and increases frequency of winds in the E and NE

direction.

Table 10.2: Frequency of winds by on direction (%)

The annual average wind speed is 4.8 m / s. The strongest winds occur

in the cold season of year. Maximum wind speed registered in Astana

(formerly Tselinograd) is 36 m / sec. The highest frequency of occurrence

(more than 50%) are mentioned the winds with speeds of 2-5 m / s. The

highest monthly mean wind speeds are in March. Below, in Table 10.3

provides the wind speed frequency (Astana).

Table 10.3: Wind speed frequency(%)

Wind speed (m/s)

0-1 2-3 4-5 6-7 8-9 10-11 12-13 14-15 16-17 18-21 22-25

16,7 31,8 26,5 14,6 6,6 2,4 0,9 0,3 0,1 0,1 0,0

Minimum average monthly value of wind speed is recorded in August.

The number of days in a year with strong wind (over 15 m / s) is about 50

days (maximum 100 days).

Summer winds have dry hot wind nature. Mean number of days with

dry winds are about 14-20.

N NE E SE S SW W NW Lull,

calm

January 11 13 7 12 28 28 16 3 6

February 2 13 9 11 19 20 14 3 7

March 3 13 11 13 15 22 17 6 6

April 6 12 16 14 11 15 10 10 6

May 8 16 8 10 9 16 16 11 6

June 10 12 12 11 11 15 16 13 8

July 11 16 15 11 8 6 15 6 12

August 13 17 12 9 9 10 15 15 9

September 5 14 11 14 12 16 17 11 9

October 3 8 9 10 13 25 22 8 7

November 2 5 8 12 18 28 22 5 6

December 2 13 9 14 19 25 15 3 8

Year 6 12 11 12 14 20 17 8 7



Figure 10.1: Wind rose in January

Figure 10.2: Wind rose in July



Figure 10.3: Annual wind rose

10.2Relief and landscape

Relief. Astana is located in the riverine flatland and partly in the valley

of the river Ishim. As a whole, the territory relief is characterized by a lack

of noticeable deviations and expressed forms. The characteristic elements of

the relief are numerous downgrades –as steppe askali flats, which are

formed in the spring lakes or swamps. The city is located in the area of dry

steppe subzone of dry fescue-feather grass steppes on dark chestnut soils.

The soil cover is heterogeneous withintegrated nature. The relief is

represented by undulating watershed plain, which occupies 2/3 of the urban

area. In general, the relief of the urban area is characterized by a lack of

noticeable deviations and clearly defined forms, geomorphic features

smoothly and seamlessly melt into each other. Plain is gently sloping

towards to the river Yesil.

Landscapes. By physical-geographical zoning explored territory is

located within the Central Kazakhstan of Tengiz dry steppe undulating

plains and riverine-hummocky province. In terms of morphostructural view,

the province clearly separated from adjacent areas, locating in a tectonic

depression of the Paleozoic basement. According to the Climatic and Natural

Conditions the territory belongs to the dry steppes on dark chestnut soils.



The landscape of the investigated area belongs to the plain type and

represents a gently rugged pediment plain folded from sedimentary-effusive

rocks, overlaid by a low-power gravel clayish weathering crust with fescue-

feather grass and feather-fatuoid steppes on dark chestnut soils.

10.3 Soil

By the soil-geographical zoning the area location of the object belongs

to the subzone of moderately fescue-feather grass steppes on dark chestnut

soils. The soil cover is formed under conditions of the sharp continental

climate, which is characterized by a high drought and a harsh change of

temperature conditions. The average annual air temperature is +1,3 - +1,8

° C. In winter the temperature can drop to -40 ° C and below. In conditions

of low snow cover it promotes deep freezing of the soil (up to 1.5-2.0 m)

and imposes its own characteristics in the processes of soil formation.

Annual rainfall varies within 250-300 mm., and their maximum falls in

June-July months. The territory of the object is characterized by high wind

activity, which is one of the reasons for the intensive development of soil

blowing processes.

Soil-forming rocks are eluvial-diluvial and diluvial deposits of different

mechanical composition, often filled with rubble. Close proximity of dense

rock and marl leads to the formation of soil with a short-cut profile -

incompletely developed and underdeveloped. In most parts of the territory

ground waters are at a depth below than 3.0 meters and have no effect on

soil-forming processes. Only by different kinds of drawdown of ground water

can play out to the surface or overlie at a shallow depth. This leads to the

development of bogging processes and the formation on such sites

hydrophilic vegetation.

One of the specific characteristics of the soil cover in the territory of the

object, as well as all of the subzone of dark chestnut soils is its complexity.

The complexity of the soil cover is substantially due tothe microrelief

surface, causing a redistribution of moisture and salts for its elements. The

changes of mesorelief concerned with the formation of soil association

representing an alternation of different soil moisture series.

As a result of the cumulative effects of all the factors of soil formation

at the territory of the object were formed and were identified in the survey

of the following soils:

Dark chestnut normal

Dark chestnut alkaline

Dark chestnut incompletely



Dark chestnut underdeveloped

Meadow-chestnut

10.4 Local water resources

Astana is surrounded by three major river systems, the central of which is represented by the river Yesil (Ishim) (dr.10.4), with its lateral

channels of streams Akbulak, Sarybulak, South – is Nura River and north - river Selety. The feature of rivers regime and temporary streams of Akmola

region supplying with snow-fed almost exclusively, it is the sharp uneven flow distribution during a year. Spring snow melt runoff flowing into rivers in

April and May, makes an average of about 90% of annual runoff.

Figure 10.4: Yesil river embankment in Astana

In ephemeral streams proportion of stream flow in the annual spring season reaches 97-100%.

In general river in nature annual distribution of stream flow is fairly homogeneous, having small differences are mainly due to some different

conditions of ground water feed of the river in northern area of the region. In Yesil river small flow due to the effluent of seepage takes place during the

whole warm period, and partially in winter.



The nature of intra-annual flow distribution in different years varies

slightly depending on the size of the spring flood. In the relative stability in time for the conditions ground water feed in

dry years it usually has a decrease in the proportion of runoff of the spring season in annual and increase in the relative weight of thedrought flow. In

wet years the opposite is true. The major features of Yesil river and temporary streams, as well as all

the rivers of the Akmola region are determined by the conditions of their feed. In accordance with the exceptional value of melted snow water in

streams feeding of the inspecting territory the main phase of their regime is

pronounced spring flood, following next a deep low water which comes up to complete drying of small streams and often relatively large. Spring floods

begin on average on April 5-10. Specific dates of the beginning of spring floods: before March 20-25;

later than April 20-25. By years terms of beginning floods range from latter half of the March

until the third decade of April. Flood ends on the most streams often in May and only the largest

rivers stretched until July. Duration of flood varies on the average from 10 to 30 days.

Water conditions of the river are characterized by a pronounced spring floods and prolonged low-water periods. The duration of seasonal flood in

the upper and middle of the river flow is 1-1.5 months and increases downstream to 2-3 months. The share of spring flood has to 86-95% of

annual runoff. Large uneven of the flow distribution is not specific only

within the year, but from year to year. Annual volume of runoff in wet year may exceed the river runoff in dry year by more than a hundred times. One

of the characteristics of long-term progress runoff of Yesil river is the tendency of grouping high-water years and low-water years, which greatly

complicates its use in the national economy. Yesil river flow is formed almost entirely by the melted snow water.

Rainfall in the conditions of hot summer and very dry soils is lost to

evaporation and runoff of the river has no practical importance. The runoff

rate in summer and winter low water of Yesil river within, as in a region and

the city is determined by currently only releases from Vyacheslavsky

reservoir.

10.5 The structure of the vegetation area and its floristic

composition

The city territory belongs to the zone of dry sod grass steppes on dark

chestnut soils. In areas of the territory dominated by feather- Volga fescue

grass communities with forbs. The most widely expansion had steppe



grasses: esparto grass (Stipa capillata), fescue (Festuka sulcata), June grass

(Koeleria gracilis); herbs: goldilocks - woolly and Tatarian (Linosyris

villosa, Linosyris tatarica), sage-leaf mullein (Phlomis tuberosa) etc., as well

as - Austrian wormwood (Artemisia austriaca). Projective ground cover with

plants works out - 50-60%.

In recent years, vegetation areas heavily modified.

According to a survey involving library materials made a map of the

vegetation. Vegetation of the area are represented by 6 associations and

plant groupings:

1. Fescue-feather grass on dark chestnut soils. Total projective of

ground cover vegetation is 50-53%. Vital power of plant formation is

satisfactory. Plants usually during the growing season pass all phases of the

growth. Herbage two-tiered. The first tier forming feathers- feather grass -

(Stipa capillata) andsandy needle-grass (Stipa Lessingiana). The average

height of the first tier is about 40-46 cm.

The second tier of 15-25 cm tall form fescue, sagebrush, and low

herbs. Leading grass of plant formation are horsepine grass, fescue (Festuca

sulcata), wormwood sage (Artemisia frigida) and Austrian wormwood

(Artemisia austriacus). Among the other plants found Helictotrichon desert

(Avenastrum desertorum), Austrian astragalus (Astragalus austriacus), June

grass (Koeleria gracilis), cinquefoil forcipate (Potentilla bifurca), spring sedge

(Carex praecox). More rarely can find Veronica,goldendrop, spring adonis

(Adonis vernalis), gosling or prostreya.

Richness in species of herbage is average. An area of 100 m2, there

are 12-14 species of plants. The average yield of vegetation is 3.5 t / ha of

dry weight.

2. Fescue-stipa-wormwood on dark chestnut soils in complex with

fescue-Stipa-feather grass on dark chestnut incompletely soils by undulating

plain.

This Association of vegetation differs from the previous by the

presence of wormwood as a subdominant. Up to 30% of the area takes

fescue-sagebrush-feather grass vegetation in the grass stand dominated by

fescue (Festuca sulcata), Austrian wormwood (Artemisia austriaca),

wormwood sage (Artemisia frigida) and feather grass (Stipa capillata).

Projective ground cover by vegetation is up to 40-50%, sometimes on

relatively sparse areas works out to 30%. On 100 m2 there are average 15-

22 species of plants. The average yield of this plant association is 3.2 t / ha

of dry weight.



3. Fescue-feather grass on dark chestnut soils in combination with

wormwood fescue-feather grass on dark chestnut alkaline soils on

undulating plain.

It’s different from the first association in the presence of 10-30% of

plant communities dominated by the Austrian wormwood (Artemisia

austriaca), its accompanied by feather grass (Stipa capillata), fescue

(Festuca sulcata),goldilocks (Linosyris villosa). Projective ground cover with

vegetation varies between 35-45%. Species richness of plant formation -

15-20 species per 100 m2. Yields of vegetation is 2.8-3.0 t / ha of dry

weight.

4. Fescue-sagebrush-feather grass on dark chestnut incompletely

developed soils in conjunction with the fescue-wormwood sage on dark

chestnut underdeveloped soils up to 40% on the undulating plain.

Leading species in the plant formation are fescue (Festuca sulcata),

Feather grass (Stipa capillata) and wormwood sage (Artemissia frigida).

From other kind of plants found: June grass(Koeleria gracilis), stupets

John's-wort and others. Projective ground cover of vegetation is low - 20-

30%. On 100 m2 there is 10-12 plant species. The average yield varies from

1.5 to 1,8 t / ha of dry weight.

5. Grass-sagebrush-mix herbs on meadow-chestnut soils on

microdepressions.

Vegetation of this association is mixed. Along with mesophilic grasses

such as couch grass (Agropyron repens), awnless brome (Bromus inermis)

in the plant formation there are also steppe species: red feather grass (Stipa

rubens), fescue (Festuca sulcata), sickle alfalfa (Medicado falcata), lady's

bedstraw (Galium verum), spike speedwell (Veronica spicata), sage-leaf

mullein (Phlomis tuberosa), Austrian wormwood (Artemisia austriaca).

Graminoids in the plant formation are on average - 60%, herbs - 25%,

wormwood - 15%. Species richness of plant formation is high: at the area of

100 m2 meters species of higher plants encountered to 25.

Herbage of the association of vegetation is very valuable as fodder, in

100 kg of hay contains on average 53 kg of feed units. The average yield of

the dry mass is 4.0 kg / ha.

6. Fescue -wormwood sage on dark chestnut underdeveloped soils.

In this type of herbage dominated drought-resistant plant species.

Low moisture and crushed stony soil cover caused sparseness of vegetation.

Projective ground cover vegetation does not exceed 10-15%. Herbage is

first tier, the average height of 20-25 cm.

Leading plants in the plant formation are fescue (Festuca sulcata) and

wormwood sage (Artemisia frigida). Sporadically occur: feather grass (Stipa



capillata), June grass (Koeleria gracilis), stupetsJohn's-wort , pink narrow-

petaled, Pedicularis crested etc. Species richness of herbage is low, at the

area 100 m2 found 8-10 species. The quality of fodder is average.

A large area of the city is busy with planting hardy-shrub species

(birch, oleaster, maple, acacia, bushes) (Figure 10.5).

Figure 10.5 Hardy-shrub species in Astana

The list of plant species is given in Table 10.4.

Table 10.4: Listofplants

Plant name in

Russian

Plant name in

Latin Family name Brief decription

Austrian

astragalus

Astragalus

austriacus L.

Leguminous

Perennial, good fodder value

Salt grass

Puccinella distans

P.

Gramineous

Perennial, average feed-value

Bushgrass Calamagrastis

epigeios L.

Gramineous Perennial,rough

graminaceous plant

Goldilocks Linosyris villosa

D.C.

Composite

family Perennial, low fodder value

Lessing feather-

grass

Stipa Lessingiana

Trin.

Gramineous


Feather grass Itipa canilata L. Gramineous Perennial, average feed value

Awnless brome

grass

Bromus imrmis

Leyss

Gramineous Perennial, excellent fodder

value

Cinquefoil Potentilla bifurca Rose family Perennial, low fodder value



Plant name in

Russian

Plant name in

Latin Family name Brief decription

Stickseed Lapulla patula L. Borage Perennial, inedible, weed

Blue grass

steppe Poasteppo Gramineous

Biennial, excellent fodder

value

Striated fescue

Festuca culcata Gramineous Perennial, excellent fodder

value

Fatuoid eremic Avenastrum

desertorum L.

Gramineous Perennial, average fodder

value

Spring sedge Carel praecox

Schred.

Cyperaceae

Perennial, low fodder value

Fleawort Ialium verum L. Rubiaceae Perennial, low fodder value

Redtop Agrostis alba L. Gramineous Perennial, good fodder value

Couch grass Agropyron repens

Beauv.

Gramineous


Wheat-grass

Agropyron

pectiniforme L. Gramineous


Austrian

wormwood

Artemisia

austriaca Jacg.

Composite


Wormwood

sage

Artemisia frigida

Web.

Composite


Slovenwood Artemisia procera

Willde.

Composite

family Subshrub. Inedible.

Bindweed Capsella bursa-

pactoris С.А. Crucials Perennial, inedible.

Spiraea

hypericum

Spiraea

Kypericifolia L. Rose family Perennial bush

June grass Koeleria grasilis

Pers. Gramineous

Perennial, excellent fodder

value

Bur reed Phragmites

communis Trin. Gramineous Perennial, inedible

Salvia steppe Jalvia spepposa

Schost. Mint family Perennial, inedible

10.6The fauna of the area under study

The fauna of the city and surrounding area does not differ with

significantly richness and diversity.

In the vicinity of the boundaries of the area there are a number of

animals: Wild sheep - argali,Red-cheeked Ground Squirrel; Spotted Rock

Thrush, Black Redstart, Sulphur leaf warbler,gray-necked bunting,mouse-

hare, gray hamster,Siberian jerboa;copperhead snake, steppe runner,little



souslik, northern red-backed vole; European hedgehog, great spotted

woodpeckers and black; ptarmigan, common lizard, common nothern viper.

There are also owls (long eared, Scops Owl, marsh) andpredaceous

daytime birds (imperial eagle, greater spotted eagle, common buzzard, black

kite, common kestrel, falcon hobby), and magpie, hoodie crow, jackdoor,

rook.

There are widespread, but not particularly numerous typical steppe

animals (dr.10.6). The largest distribution and abundance they reach at the

southern border of the city. Here, as in the forest, are commonly found

common hamster, wild animals - wolves, foxes, avoiding forest corsac and

steppe polecat, brown hare, steppe pika. In winter is not rare in the steppe,

especially near lakes and rivers, blue hare. On the short grass steppe areas,

mainly on pastures and near some villages there are Red-cheeked Ground

Squirrel and little souslik.

Figure 10.6: Souslik



There are also steppe mouse and a variety of mouse-like rodents, key

forage valuable fur-bearing animals. From rodents - granivorous in the

tangle of low forest, bushes and tall forest is commonly found common

field mouse, the few calomys colosus mouse, in places seldom found

harvest mouse, house mouse. From insectivores in the steppes of damp

areas with bushes and tall grass can meet shrews.

Eared hedgehogs are rare. Bats in the flat steppe are uncommon.

Species composition of birds steppes rather monotonous. The most popular

are:field-lark, horned lark, white-winged bird and particularly black. Diverse

is fauna of rivers and lakes with thickets of willow, reed, cattail, and other

moistureloving plants. On the banks of large lakes is found wild boar, usually

numerous, and sometimes acclimatized muskrat; in some years very

numerous water rat, and of insectivorous found in many places the water

shrew - Eurasian water shrew. Inlittoral vegetation of widespread is badger.

Particularly diverse is bird fauna in ponds. Among waterfowl nest numerous

ducks (mallard, teal, gray Pintail, Shoveler, Common Pochard, Tufted Duck),

gray goose, swans (common mute swan, whooper rare). On the waters coot

and waterhen live, grebes (great crested grebe red-necked, small, Black-

necked), seagulls (silver, blue-gray, black-headed gull, barnacle, Caspian

tern). Near water bodies live the yellow, gray and rare bitterns.

Among insects are numerous dragonfly supplying feed to gulls, terns,

small birds of prey, especially hobby. The fauna of reptiles and amphibians is

especially poor. From reptiles are common grass snake, Dione snake, steppe

viper, sand lizard, and amphibians from - green toad and moor frog.

The most common and popular fish is golden carp living in the vast

majority of lakes and rivers. Also are common: ide, tench, roach, pike, river

perch, ruffe, burbot, goldfish, minnow. In the Yesil river basin there are a

few Arctic grayling, goldilocks, Siberian and ice Hovit - sea lamprey, mottled

sculpin and some other species. Of invertebrates are numerous insects,

especially grasshoppers, for example, Phillips, white-haired. Siberian and

dark red grasshopper, grasshoppers, beetles, click beetles and dark, earthy

midges, sob webworm, etc.

On the territory near Astana found the following animals listed in the

Red Book of Kazakhstan: saker falcon, golden eagle (dr.10.7), bustard,

demoiselle crane, red-breasted goose, spoonbill, Sociable Lapwing, imperial

eagle of the steppe, see eagle, osprey, little bustard, great black-headed

gull. The Red Book also made lybka steppe,ground beetle, flywheel

bumblebee, bumblebee lezus, meliturga Rhopalocera, rofitondes gray, scoliid

wasps, giant; emperor moth, shriek-owl;European swallowtail,scarce

swallowtail Apollo.



Figure 10.7: Golden eagle

World of birds quite rich in the vicinity of the city. It is represented as

a species living at this territory, and birds come here for the summer, or

pass through the territory of the area in spring and autumn. Migratory birds

make brief stops here and are being fed. At this time, you can find large

flocks of geese, sandpipers and ducks. There are swans, herons, cranes,

many kinds of ducks: baldicoots, grebes, gulls, swamp hens, sandpipers.

10.7 Cultural, historical and archaeological assets

Historical and cultural heritage, as the most important evidence of the

historical destiny of every nation, as a basis and a precondition of its present

and future development, as part of the entire human civilization, requires

constant protection from all dangers. Ensuring that in the Republic of

Kazakhstan is a moral duty and determined the Law dated 02.07.1992, №

1488-XII (amended on the 29.09.2014) "On protection and use of historical

and cultural heritage" duty for all legal entities and individuals, protection of

monuments of architecture, archeology and history provided by the

provisions of this Law of RK.

It should be noted that the responsibility for the safety of monuments

provided in the administrative law of the Republic of Kazakhstan. Violations



of the law on protection of monuments of history and culture entail statutory

material, administrative and criminal liability.

The planned reconstruction of the substation on the territory of Astana

does not affect the monuments are registered in the organs of the

Committee for Protection of Monuments of Culture of Kazakhstan, with

architectural and artistic value and scientific interest in Kazakhstan.



VSOCIO-ECONOMIC CHARACTERISTICS

11 Socio-economic activities of AEDC

11.1 Scope of land acquisition, leasing and impact of

resettlement

The land plot under the existing facilities belongs AEDC on the right

oftemporary paidlong-termland use (lease) based on the Resolution of

Astana Akimatdated01.27.2014№ 197-114.

The lease agreementis concluded betweenJSC "AEDC" and Land

Relations Departmentof Astana.

The land plot leased for 49 years, is the public property and rented on

acommercial basis, in accordance with theterms of the lease agreement.

No landis leased from the privateland users. No private landownersare

affected.There are nounresolved issues, disputes, complaintsandcourt

casesrelating to landare absent.

Detaileddata regarding theland lease, which includethe number

ofleased plots, their area, annual cost of rent,date of signingand theterm of

the leaseare presented in Table11.1.

Table 11.1: Data on the land lease

Name 110/10 kW Astana substation

Number of land plots 1

Land plot area, sq.m. 13,523

Number of agreements 1

Date of the lease agreement

signing

06/02/2014

Date of the lease agreement

expiry

27/01/2063

Annual rent cost, KZT 435,038.00

Form lan user Land Resources Department of Astana

Type of the land plot Public

Location 42, Seifullin Str., Almaty Distrcist,Astana

Compensation The lease payment is paid 4 times a

year: every quarter before the 10th of

the month following the passed quarter

Land lease agreements are executed by the Legal Department of AEDC

and all necessary payments are arranged by the Accounting Department.



11.2 History of land acquisition (and relocation) of the existing

production facilities of AEDC and Involuntary Resettlement

The land plot that is currently in AEDC’s possession was previously

owned by the State and used for energy facilities and infrastructure. Later

they were handed over to AEDC. During this time there was no physical and

economic displacement of people caused by the leasing of the land plots,

which are currently used by the company. The Government has given for

rent these land plots for 49 years. Rent of land precludes the use of any land

plot, owned or leased by individual / private entity from the state. Hence,

the project of Substation reconstruction is categorized as C for IR and

indigenous people.

Land lease agreement is concluded between AEDC and Land Relations

Department. This agreement includes the detailed information about the

land plots (location of land plot, cadastral number, surface of the land plot,

purpose of the land plot exploitation), cost of land lease, rights and

obligations of the parties, liabilities of the parties, procedure for complaints

settlement, term of the contract, legal addresses and account details of the

parties. The agreement foresees that all disputes and disagreementsbetween

the parties can be resolved through informal negotiations. In the event, that

the resolution of disputes and disagreements is not possible through the

informal negotiations, those issues shall be settled inthe court order.

According to the Requirement 2 for safety in case of the involuntary

resettlement it is required to avoid or minimize the involuntary resettlement

by studying the project and alternatives to improve or at least to restore the

income of all displaced persons in real terms relative to the preparatory level

of the project, as well as improve the level of life of the displaced poor and

socially vulnerable groups.

11.3 Indigenous people

The population of the Republic of Kazakhstan consists of more than

100 ethnic groups (nationalities). In Astana Kazakhs make up the largest

part of the resident population (74,3%), followed by Russians (16,2%),

which corresponds to the national level indicators, Ukrainians (1,7%) and

other nationalities (7,8%).

It is unlikely that the classification of the project and preliminary

review will indicate that the proposed project will be implemented in the

territory having a positive or negative impact on indigenous people.



According to statistics data of 2009, the population of Kazakhstan consists of

more than 100 ethnic groups (nationalities), including Kazakhs (10 million

people, or 63% of the total population), Russians (3.8 million people, or

24% of the population) Ukrainians (333 thousand people, or 2,1% of the

population), Uzbeks (457 thousand people, or 2,9% of the population), the

Uighurs (223 thousand people, or 1,4% of the population), Tatars (203

thousand people, or 1,3% of the population), Germans (178 thousand

people, or 1,1% of the population).

The ethnic groups, besides the major ones, settled in the area many

years ago. All ethnic groups are fully integrated into the Kazakh majority,

they have the same access to land and natural resources, health, education,

human factor and the status of Social Security. None of these ethnic groups

assert their cultural and social requirements separately from the Kazakhstan

society, and this provision fits the condition of ADB in relation to indigenous

peoples as defined ADB SPS (paragraph 6, Safeguard Requirements 3,

2009). Maintaining such an approach is also supported by the documents

and reports prepared by international organizations implementing the

projects in the Republic of Kazakhstan, including projects implemented with

ADB support.

11.4Social protection and labor protection

Total number of AEDC employees at the end of 2014is

2111employees: 76% of them are men and 24% are women. The analysis of

the distribution of employees by type of activity shows that the category of

managers makes 14% of the total number of employees and includes all

levels of management personnel (from the company manager to the site

foreman). The category of experts makes 22,6% of the total number of

employees. It includes engineers, lawyers, accountants and other specialists.

The largest group consists of workers (electricians, drivers, mechanics,

loaders, janitors, welders, etc.), which make up 62% of the total number of

employees.

The smallest group of employees is the office staff (secretaries,

translators, manager assistants, etc.), which includes only women. This

group makes only 1%. Every year the various number of students , 30-40

people attend the practical training in JSC ―AEDC‖. Students and AEDC

conclude the correspondent agreements. AEDC offers the students to be

employed after their graduation.



AEDC adheres a policyof non-interferencetothe workof contractors.It is

expected that contractorswill employ12 people forsubstation reconstruction,

as well as 2 Technical Supervisors of AEDC will be involved.

It should be notedthat the consultantsandcontractors mustadhere to

certain legalrequirements established by AEDC.

The Contractor shallcomply with the nationallabor legislation andcore

laborstandards.

The detailed information on the number of employees (as of 2014)

and their gender for each category of employees working in AEDC is

presented in Table 11.2. Women are engaged in all groups of AEDC. In

general, women make approximately 24% of the personnel. All workers who

are employed as a support staff - are women (100%). The number of

women in the category of specialists is 48,2%. A small number of women

are employed in the category of managers (18,1)%, but for the category of

workers (14,7%). This is explained by the nature of work (need of physical

strength to perform difficult tasks, remoteness of the sites and

infrastructure, working in the open air, in the harsh weather conditions in

the cold season prevent to involve women. However, AEDC does not make

any restrictions to involve women for such positions.

Table 11.2: Distribution of AEDC personnel by type of work (including AEDC

Energosbyt, as of the end of 2014)

Total number

of employees

Total for

AEDC

Manager

s

Specialist

s

Support

personnel Workers

Total 2111 303 477 22 1309

Men 1613 248 247 2 1116

Women 498 55 230 20 193

Among all staff of AEDC, 26% of employees have a university degree (bachelor's and master's degrees), 35% have graduated from the colleges

and vocational schools. Detailed information is provided in Table 11.3.

Table 11.3: AEDC personnel by education level (as of the end of 2014)



Total

number of

employees

Total for

AEDC

Managers Specialists Support

personnel

Workers

Total 2 111 303 477 22 1 309

Higher

education

546 189 296 9 52

College and

Vocational

secondary

education

745 80 158 8 499

General

secondary

education

820 34 23 5 758

As for the length of workingin AEDCfor all employment categories, the

average length of work is more than 9years. The average number of years for various employment categories is distributed as follows: 11,5 years for

managers, 9 years for specialists, 7 years for support staff and workers. In general, 30% of employees work in AEDC for over 10 years, 21% of

employees for 5-10 years, 36% of employees work in AEDC over 1-5 years, 13% of employees are the beginners with experience of less than a year.

Details are shown in Table 11.4.

Table 11.4: Distribution of AEDC staff by number of years worked in the

company

Total

number of

employees

Total

for

AEDC

Manager

s

Specialist

s

Support

personnel

Worker

s

Total 2111 303 477 22 1309

>10 years 652 154 144 1 353

3 – 10 years 614 76 160 4 374

1 – 3 years 410 53 77 6 274

< 1 year 435 20 96 11 308

Employees of IEN/REN work in AEDC for a long time, but the central

office and the areas adjacent to the city of Astana face the problem of staff

turnover (17,1% in 2014) due to the possibility of higher wagesoffered by

competing organizations, in particular KEGOC.

According to the Board meeting, which was held in AEDC, the

investment project under consideration will not have a significant impact on

the number of work places in AEDC, since the Project aims to replace the

existing equipment, such as transformers, which transmission capacity can

be greatly increased. The 110 kV power lines will be partly laid under the



ground. AEDChas not yet discussed the issue of reducing the number of

employees. The relative increase in the number of personnel occurs due to

the restructuring of the existing departments and units. Also, there are no

exact data on the reduction or enlargement of AEDC personnel. All the steps

proposed in the framework of the investment project to be implemented in

AEDCvery soon.

For some activities, requiring the complex and large works, and in

cases that do not require the specialized forces and equipment for the

implementation of these works it is planned to involve the contractors. The

contractors will be selected by AEDC through a centralized process in

accordance with the scope and types provided byAEDC.Previous experience

of the potential contractor will also be taken into account.

AEDC staff carries out all types of maintenance and troubleshooting

works. Typically, such work is carried out during March-November period, , while the routine works are carried out during the rest of the year. Most

part of the repair work is performed byAEDC employees. But there could be

the situations when the specialized contractors are involved for such works.

Basic norms of the International Labour Organisation and the Labour

Code

In the Republic of Kazakhstan ratified21 Convention of the

International Labor Organization, which includes the basic labor standards of

work, such as freedom of association, prohibition of child labor, prohibition

of discrimination and the prohibition of forced labor. List of conventions

adopted by the Republic of Kazakhstan, is presented in Table 11.5.

Table 11.5: Conventions of the International Labor Organization, adopted in

the Republic of Kazakhstan14

Convention Date Status

Fundamental

C029 – Forced labor Convention, 1930 (№ 29) May,18, 2001 In force

C087 – Freedom of Associations and Protection of the

Right to Organize Convention , 1948 (№ 87)

Dec, 13,

2000

In force

C098 – Right to Organize and Collective Bargaining

Convention, 1949 (№ 98)

May, 18, 2001 In force

C100 – Equal Remuneration Convention, 1951

(№ 100)


C105 – Abolition of Forced Labor Convention, 1957 May, 18, 2001 In force

14Source: International Labor Organization:

http://www.ilo.org/dyn/normlex/en/f?p=1000:11200:0::NO:11200:P11200_COUNTRY_ID:103542

http://www.ilo.org/dyn/normlex/en/f?p=NORMLEXPUB:12100:0::NO:12100:P12100_INSTRUMENT_ID:312174:NO








http://www.ilo.org/dyn/normlex/en/f?p=1000:11200:0::NO:11200:P11200_COUNTRY_ID:103542



Convention Date Status

(№ 105)

C111 – Discrimination (Employment and Occupation)

Convention, 1958 (№ 111)

Dec,06,1999 In force

C138 – Minimum Age Convention, 1973

(№ 138)minimum age specified: 16 years;


C182 – Worst Forms of Child Labor Convention, 1999

(№ 182)

Feb,26, 2003 In force

Governance (Priority)

C081 – Labor Inspection Convention, 1947 (№ 81) Jul,06,2001 In force

C122 – EmploymentPolicy Convention, 1964 (№ 122) Dec,06,1999 In force

C129 – Labor Inspection (Agriculture) Convention, 1969

(№ 129)

Jul,06,2001 In force

C144 – Tripartite Consultation (International Labor

Standards) Convention, 1976 (№ 144)


Technical

C088 – Employment Service Convention, 1948 (№ 88) May,18,2001 In force

C135 – Workers’ Representatives Convention, 1971

(№ 135)


C148 – Working Environment (Air Pollution, Noise and

Vibration) Convention, 1977 (№ 148)

Jul,30,1996 In force

C155 – Occupational Safety and Health Convention,

1981 (№ 155)

Jul,30, 1996 In force

C156 – Workers with Family Responsibilities Convention,

1981 (№ 156)

Jan,17,2013 In force

C162 – Asbestos Convention, 1986 (№ 162) Apr,05,2011 In force

C167 – Safety and Health in Construction, 1988

(№ 167)

Jun, 18,2008 In force

C183 – Maternity Protection Convention, 2000

(№ 183)The period of maternity leave is 18 weeks (20

weeks in case of obstructed child birth or in the case of

the birth of 2 or more children)

Jun,13, 2012 In force

C185 –Seafarers’ Identity Documents Convention

(Revised), 2003 (№ 185)

May,17,2010 In force

According to data provided by AEDC, all operations of the company are

carried out in accordance with the norms of the Labor Code of the Republic

of Kazakhstan, and is aimed at improving the conditions of labor registration

in the country, which contributes to the further development of democratic,































legal and social mechanisms of social consensus and also ensures the

economic development and legal support of the decent labor. The Labor

Code provides guarantees of labor right, social protection and decent

working conditions. This helps to improve the overall productivity and

competitiveness of the enterprises. Great attention is paid to the

improvement of working conditions and the introduction of international

health and safety standards in the companies.

According AEDC, the company has not a separate document, which

regulates the activities under the Convention of the International

LaborOrganization. Therefore, the activity of the company is subject to the

requirements of local laws and regulations. It should be noted that the

Republic of Kazakhstan is one of the signatories of about 20 documents of

the International Labour Organization. Thus, AEDC operates in accordance

with the complex requirements and according to local regulations.

Trade Union

AEDCTradeUnion is a voluntary public organization, which consists of

AEDC employees, whose actions are aimed at the realization of professional

interests. AEDCTradeUnion is an affiliate of the TradeUnion of Energy Sector

Employees of the Republic of Kazakhstan. Legal entity of the TradeUnion of

the Energy Sector Employees of the Republic of Kazakhstan is located in

Almaty and is operated in accordance with the certificate of state

registration No.623-1900-00 issued by the Ministry of Justice on December

28, 1995. The localTrade Union of AEDCis located in Astana and operates

according to the registration certificate of the affiliate № 39-1901-FL, issued

by Department of Justice of Astana dated October, 21,2010 (initial

registration date - February, 22, 1996). Local Trade Union of AEDC

operates in accordance with the Law of the Republic of Kazakhstan ―On

Trade Unions‖ No.211-V of 27.06.2014, Charter of the trade professional

unions of the energy sector of the Republic of Kazakhstan and Regulation on

the local union.

AEDC’s local Trade Union has its branches. Each of the IEN (Akmola,

Yesil and Stepnogorsk) has its own branch of the Trade-Union of AEDC. The

trade union of IEN is controlled by the Chairman, which usually worksin the

same place. The Chairman is elected at the general meeting of employees.

The decision on membership is a voluntary decision of each employee.

According to data provided by the Chairman of AEDC, approximately 70-

75% of AEDC’s employees are the members of local Trade Union of AEDC.

The Trade Union’s funds are formed by the monthly contributions, which are



equal to 1% of salary for each working member. A fixed amount is

transferred to the account the local Trade Union of AEDC.

The Trade Union considers all important issues relating to the labor

safety and availability of personal protective equipment. Local trade-union

directly involves to the resolution of conflicts, as well as provides

consultations and helps to resolve disagreements and disputes through

informal discussions.

A special commission of the local trade-union, which includes an equal

number of workers and management staff deals with the resolution of all

conflicts. This Commission reviews the complaints and provides

recommendations for their pacific resolution. Also, the Commission provides

all participants of the dispute an informal territory necessary to discuss all

disputed issues and for their peaceful resolution, before they take a decision

to continue the conflict resolution at the court level.The union also provides

the applicants with legal and financial assistance. According to the head of

the trade-union of AEDC, in most cases, will be reached a win-win solution.

Also, the local trade-union of AEDC identifies the priorities of its

activity through the meetings and conferences. All matters relating to labor

relations, wages, workplace safety, labor safety, health maintenance are

usually addressed at the meetings. The main document of the trade-union is

a collective agreement signed by the AEDC administration.The collective

agreement is drawn up and discussed taking into account all the comments

of the Parties. It is approved at the conference of the staff. This agreement

reflects the rights and obligations of the parties, as well as directly concerns

the issues related to the issuance of wages, social benefits, the staff

increase and reduction, labor safety, health and environmental protection.

The union-union submits the annual reports and the results of its activities

at the Annual Conference. The trade-union also has to provide the

transparent information on the activities of its affiliates and a network of

MES.

Social benefits

For AEDC employees are provided the services social insurance,

accident insurance, voluntary health insurance. This is obligatory for all

employees of AEDC. The accident insurance (insurance of occupational

injuries) includes first aid for injuries that occur in the workplace. Voluntary

health insurance covers medical care and treatment in the event of a

disease. In general, insurance of AEDC staff has been carrying out since

2002. The company provides a full insurance coverage for all employees.

As a rule, the agreement with the insurance companies is valid for one

year. It can be concluded again for a further one year, subject to the



provision of satisfactory service. The insurance package is particularly

important for workers living in rural and remote areas, because there is no

possibility of medical examination and treatment, as compared with the

regional centers. The insurance package provides an opportunity to come to

Astana in time and receive an adequate medical care.

In the medical center of AEDC every employee can attend a mandatory

medical examination, receive the first aid and necessary treatment. Medical

Center, founded in 2006, operates in accordance with the state license №

LP-00061DC dated October, 20, 2005 issued by Department of Health of

Akmolaoblast. The license for the operation of the medical center is issued

for an indefinite period. Medical services are provided by a nurse who has a

specialized medical education, and periodically attends the qualification

improvement training in the specialized institutions. The last license of the

nurse for general practice is valid till 2017. Also, the nurse performs apre-

shift medical examination of drivers in the morning, before the start of work

(including blood pressure measurement, verification of Breathalyzer, etc.)

and enters the results of the examination to a special medical journal. If the

nurse has revealed that the health state of the driver is not satisfactory, she

may prohibit the driver to perform his duties.

Moreover, AEDC employees that operate in hazardous conditions,

according to the law, must attend an annual medical examination. Also, it

should be prepared the annual lists of employees subject to such

examinations, which are agreed by the authorized persons. There are the

Mobile medical teams in the headquarters of AEDC and perform the medical

examination of employees included into the list. If necessary, the nurse will

provide the necessary medical care during the examination. Later, the

doctor gives the appropriate recommendations for every employee.

The AEDC medical center has a medical treatment room, where the

therapeutic measures prescribed by the doctor are provided (including the

intravenous, subcutaneous, intramuscular injections, etc.). This room is

equipped with the latest equipment (equipment of ultrasonic diagnosis,

magnetic therapy, infra-red rays, portable device for inhalation, etc.).

Currently, the Republic of Kazakhstan takes the steps to establish an

effective pension system. This process is regulated by the state authorities.

In accordance with the law, the compulsory social insurance includes

the following social risks: loss of job, loss of income due to pregnancy and

childbirth, the loss of a breadwinner and disability. The main objective of

introducing the compulsory social insurance system is to provide

compensation of a part of income lost in the event of social risks. These

benefits are paid from the state social insurance fund.



According to the data as of the end of 2014, 41 women working in

AEDC are on the maternity leave. The fee for this period is covered from the

state social insurance (AEDC does not pay). The other women are on leave

for a childcare (children up to 3 years). No payment is provided for this

period under the law. But the positions of employment are held for those

women in AEDC. This is done to ensure that these women are able to

continue their work after returning from the leave for a childcare. However,

many women do not want to take the leave for a childcare in full and they

take only one year for this purpose. Unemployment benefits, survivors'

benefits, disability benefits are paid only on the basis of an application with

the attached supporting documents of the public authority.

Consultants and Contractors AEDC enter into contracts for the

performance of certain actions and assume all risks associated with the

performance of works. AEDC follows the policy of non-interference to the

work of contractors. However, it should be noted that the consultants and

contractors must adhere to certain legal requirements established by AEDC

(including the insurance-related and issue of social benefits).

Training and certification of personnel. Education

In accordance with the rules and regulations of the Republic of

Kazakhstan the AEDC personnel should undergo the certification and pass

the periodic qualification exams. For example, the technicians should refresh

the basics of safety and health protection every 3 years. Nurse who works in

AEDC also must undergo the necessary certification and obtain higher

qualifications every five years. Accountants must attend the trainings and

undergo the certification every five years. Metrologists have to attend the

trainings every three years. Division for Labor Resources coordinates the

timing of training and certification, as well as prepares an action plan for the

coming year for the employees.

Also, according to the internal rules for the implementation of activities

in AEDC prepared in accordance with the Rules of work with employees of

the power companies, each employee must undergo a periodic training. That

is, the personnel should be trained in the training center AEDC at least every

five years. Based on these requirements, Division for Labor Resources

makes a plan of the AEDC personnel training.

Education in the AEDCcenter is an obligatory condition, if the employee

is ready for the qualification improvement (according to the availability of

jobs that require advanced training). After the employee gets the theoretical

training at the training center, he must fulfill the practical part of the work

on the site; then, the employee has to pass an examination in prevention of



accidents. And only after that, the Commission may assign the employee an

appropriate level of qualification. The workers more often interested in their

professional development, as it gives the possibility of obtaining the higher

wages. All training costs are covered by AEDC.

AEDC managed to keep and maintain a training center created in

Tselinenergo during the Soviet times. All schools of AEDC are represented by

one central training center. The personnel of the Training Center consists of

a Chairman of the Training Center and 3 experienced teachers that impart

the important knowledge and skills to the students. The education process

includes the lectures and discussions of theoretical material, as well as the

practical classes, during which the employees show in practice how well they

understood the materials. Classrooms are equipped with modern equipment

and literature sources on various topics of study. Practical training includes

the use of certain infrastructure objects and facilities required for practical

training. In addition to the central training building, there is own small

training center, which combines rooms for theoreticalclasses and lectures

and rooms for practical classes. As a rule, all training sessions are held from

November to April. In addition to the training center of AEDCit was built a

hostel and a café.

In 2014,171employeeshave been trainedin the training centerof

AEDCand obtainedthe allied trade.

If an employee takes a special training outside AEDC, it is necessary to

conclude a special agreement between AEDC and this employee. This is and

obligatory condition that entered into force after the adoption of the Labor

Code in 2007. Under this agreement, all training costs are covered AEDC.

However, the employee must have to work in AEDCduring the whole set

period (in the case of termination of employment before the end date of the

period, it will be recalculated the cost of tuition and the employee will be

required to reimburse AEDCa certain part of the training costs).

AEDC program provides the detailed information on the specialized

training courses. This allows to take the right decision of which course is

most appropriate for different groups of employees. Under this decision, the

Division for Labor Resources is developing a plan of the personnel training.

Currently AEDCcooperates with Almaty Institute of Energy (theoretical

training), Russian Institutes (theoretical and practical training). Also, AEDC

periodically receives offers from the leading foreign institutions and training

centers.

In order to emphasize the high professional skills of employees of

AEDC, it is arranged the special competitions where participants can

demonstrate their best knowledge and skills. The winners of



AEDCcompetitions take part in the national contest. As a rule, employees of

AEDC get high scores and trophies during the Republican contest.

Also, AEDC collaborates with educational institutions in order to attract

new graduates and signing a contract with the Power Engineering

Department of the Kazakh Agro-Technical University, since 2002. AEDC

attracts students of the Power Engineering Department for a production

training, starting from the third year of study. Many workers who are

employed with AEDC are seeking to get the distance education. For the

period of examinations, they are granted with a study leave.

Recruitment and concluding the contracts

All vacancy posts and announcements are published by the

recruitment centers (one center located in Astana and several centers in the

Akmola oblast), according to the requirements of the Employment Act.

Moreover, job advertisements are published in newspapers of general

circulation in Astana and Akmolaoblast (three newspapers that are printed in

Astana, are in use in all provinces: Infotses, Jobs today, Iz ruk v Ruki, etc.).

The ads are also published in newspapers of local areas. Besides that, the

ads are posted on bulletin boards. Site www.go.job.kz is also actively used

for distribution of information about employment ofAEDC. AEDC does not yet

have its own website, so it is not able to accommodate a large number of

vacancies. But, currently, AEDCis doing the best to open the website in the

near future.

AEDC ads are usually placed for a period of 15 days, they contain the

address, phone number, fax, e-mail address of AEDC, headquarters address

in Astana, and other necessary contact details of the company. In case of no

feedback for the announcement, it is published again for another 15 days. In

certain cases, the ads are placed as long until finding a highly qualified

specialist. All resumes that are considered as candidates for the position are

invited for an interview to AEDC. If the qualification of the applicant and

his/her skills match the requirements of the vacancy in full, the person

remains in the company to undergo a probation period (2-3 months) and

attend the additional training. New employees undergo the certification,

besides that they have to attend the education and training of the accident

prevention, pass the exams and tests, as well as the sign the employment

contract for a period of one year. At the end of the first year, the head

assesses the performance of the employee an in case of receiving the

satisfactory results, the employment contract is extended. In this case, the

contract is concluded for an indefinite period, and any further changes to be

agreed pursuant to the norms of the labor contract.

http://www.go.job.kz/



New employees are given the preliminary training and general

awareness, and then their work is being evaluated during the probation

period. Each newly adopted employee should know the general information

about the company, must be aware of who to contact in case of questions,

as well as know how to fill out the documents, how to behave in the

company, where the medical examinations are performed, etc. Also, new

employees should be informed about the internal control process of

AEDCactivities. Employees are provided with a list with the names and

contacts.

According to the legislation, the plan for the next year is drawn up and

agreed with the relevant managers. Division for Labor Resources monitors

the compliance with the norms of the local laws, according to which the

mandatory leave after 12 months of work is to be provided. Sometimes it is

difficult to provide a leave to employees, especially those who workin the

control service room in remote areas where it is impossible to replace one

employee by another. In such situations, the leave is given in parts,thatdoes

not contradict item 3of Article 105of Chapter 8of the Labor Codeof RK.The

duration ofannual leave, in averageis 24calendar days. A daily working day in AEDC lasts 8 hours. As a rule, it is divided into

two parts with a break every 4 hours. Some employees of AEDC work in

shifts (dispatchers and electricians of dispatching departments work 24/7).

Shift work is regulated by law indicating the working time and rest period

between two periods of duty. The duration of the shift in AEDC is 12 hours

and the duration of the rest time is 48 hours. Also, the law provides for an

additional payment for working on weekends and holidays.

Division for Labor Resources of AEDC supportsthe women's rights and

involves them to work with AEDC. Total number of AEDC employees as of

2014 is 2011, 76% of which are men and 24% are women. Women work

almost in all groups of employment of AEDC. Most of the women hold the

management positions, as well as in a group of specialists and service staff.

All activities of AEDCare carried out in accordance with the laws of the

Republic of Kazakhstan, including the policy on maternity leave, as well as

the provision of maternity leave.

11.5Monitoring and reporting on performance of social

adaptation measures

All activities and approaches of AEDC foreseen by the social policy, are

under the control of the Department of Human Resources (responsible for



labor relations, training and professional development of employees,

analysis of possible technical and social factors that have a negative impact

on the efficiency of the staff, the implementation of the analysis of

interpersonal and business relationships between employees within AEDC,

ensuring cooperation with educational institutions, etc.),the Department of

Public Relations (responsible for informing the public and coordination with

stakeholders), the Legal Department (responsible for the legal protection of

the rights and interests of the company for the matters of interaction with

public authorities, the contracting parties, shareholders and employees),

Division of Occupational Safety and Health (responsible for the development

and implementation of measures to prevent accidents and occupational

diseases), Division of Civil Defense and Emergency Management

(responsible for activities related to civil defense, emergency, fire safety and

the measures required to protect the personnel from potentially dangerous

natural and man-made emergencies).

In 2013, AEDC established theDepartment for Human Resources. The

new Departmentof laborconsists of two divisions-Division for Labor and

Wagesand Divisionfor Labor Resources.

AEDC has a mechanism of control of the labor standards observance

by the employees. Contractors and subcontractors carry out their own

monitoring to ensure compliance with the legislation of the Republic of

Kazakhstan, and other policies specified in the contract, even AEDC does

not monitor them. AEDC also provides methodological and consulting

support to Divisions for Labor Resources of AEDC Energosbit. In fact, AEDC-

Energosbit is an independent unit, but most of their documents on labor

resources are coordinated with AEDC. Division for Labor Resources of AEDC-

Energosbit will also be included to the new Department for Human

Resources of AEDC. At present, AEDC developed the regulations concerning

the functions of this unit.

In addition to the activities of the above structural units, the nurse

also ensures the compliance with social and labor policies (responsible for

the mandatory and periodic examination of employees according to the

Order of the Ministry of Health of the Republic of Kazakhstan № 709 dated

November, 16, 2009), and the Trade-Union of AEDC protecting the rights of

employees and contributing to the process of investigation of the complaints

and claims.

Compliance with the relevant rules and regulations on health and labor

safety are verified through attestation of labor conditions of production

units, which are held in all MES through the use of laboratory methods. The

details of certification are listed below:



• Akmola MES has been certified in April-May, 2014. Certification was

carried out by KAERGO, LLP;

• Stepnogorsk MES has been certified in April-May, 2014. Certification

was conducted KAERGO, LLP;

• Esilsky MES has been certified in April-May, 2014. Certification was

carried out by KAERGO, LLP.

Certification is carried outevery 5 years. Based on the results of

certification, if necessary, for MES is prepared anAction Plan for improving

the working conditions. In addition, the passport for each position is made,

including a description of the workplace and responsibilities. Employees are

provided with a special clothing / uniforms and personal protective

equipment, according to Resolution of the Governmentof the Republic

ofKazakhstan datedJanuary 30, 2012№ 172"On approval ofrulesfor provision

of employeeswith special clothing,shoes andother personal protective

equipmentat the expense ofthe employer."

11.6Development of the Gender Policy

AEDC provides equal employment opportunities for both men and

women. The maternity leave is given in accordance with the Labor Code of

the Republic of Kazakhstan. Relationship between the civil contractors and

subcontractors are regulated by the contract. AEDC follows a policy of non-

interference to the work of contractors / subcontractors.

Among the major factors that prevent to involve the women to AEDC

operations, is the need to combine the family responsibilities and the

employment duties. This is especially concerns the women living in rural

areas.The women there cannot leave children and a household without

attendance for a long time, and be on the job full time. Moreover, they need

to spend a lot of time and effort to learn and obtain relevant qualifications,

as well as to pass the exams.This is not possible due to care of children and

hard living conditions. Younger women prefer to work in cities and Astana,

and do not want to work in rural areas. AEDCmanagement noted that it

would be appropriate to attract women to work at the dispatching centers

and substations of AEDC. If there would work more women, then the men

could be redirected to other, more physically hard works.

Policy and the concepts of human resources adhered by CAEPCO are

not contrary to the laws and regulations of the Republic of Kazakhstan, and

ensure compliance with the following principles: not differentiate salary and



benefits among employees of both genders of the same professional

category and to provide maternity leave and benefits to women in childbirth.

In employment,AEDC provides the equal opportunities for both men

and women. Employment, provision of maternity leave and other regulations

were developed in accordance with the Labor Code of the Republic of

Kazakhstan. There are no any positions/jobs for which it is prohibited to hire

a woman. Women are employed almost for all groups of employment of

AEDC.

For the project"Reconstructionof 110/10 kV ASTANA Substation", as

well as for AEDC operationsas a whole,norestrictions forinvolvement

ofwomen to thevarious types of work are set.



VI EXPECTED ENVIRONMENTAL AND SOCIAL IMPACTS AND

MITIGATION MEASURES

Reconstruction of Substation "Astana" is performed within the existing

substation site, does not require additional land plot for SS, does not

assume any radical restructuring of the electrical circuits and large

construction works, during which it would have a significant impact on the

environment. It is expected to replace the obsolete transformers or life-

expired transformers, bus bridges and cells of 10 kV Switchgears.

In order to ensurethe implementation of Rules for treatmentof

persistent organic pollutantsand wastescontaining them, approved by order

ofthe Minister of MEPof24.02.2012, No. 40 it were carried out the laboratory

testsfor the presence ofPCB-containing equipment of JSC "AEDC."

TransformersTRDN-63000/110-U1 are delivered withouttransformer

oilandtransformer oilis filledat thesite of replacement andinstallationof

transformers.Transformer oilhas been testedfor the presence ofharmful

impurities by testing laboratoryLLP "Ekolyuks-As." The testconfirmed that

the oil is free from any harmfulsubstances such as PCB, in addition, we have

made arequestto the plants-suppliers asfor the presence orabsenceof

hazardous organiccontaminants inthe compositionofthe

suppliedtransformeroils.It was received a reply that the transformer oilsdo

not contain any harmfulsubstances (oil refinery "Azerneftyag", "Angarsk

Petrochemical Company" are the plantssupplying transformer oils).

In this regard, the transformersdo not representan environmental

hazard.

Old transformersare storedin AEDC warehouseas a reserve

equipment, i.e. they canbeused subsequentlyto replacethe

damagedsubstation equipment.

Decommissioningof the installedpower transformersconnected with

theiroverloading capacity.Installation, assemblyand replacementof

dismantledtransformerswill be performedat the siteswhere there are the

overloadedpower transformers.

The new equipment to be installed is environmentally friendly, will not

change the environmental conditions in the area of the substation location.

In a mandatory manner JSC "AEDC" will take all necessary measures

to prevent harmful effects on the environment, both in the process of

modernization, and during further operation of the substation. Thus,

reconstruction of the substation cannot in principle increase the load on the

existing environment. However, the reconstruction project provides certain



measures for minimizing the environmentalimpact in the process of projects

of the substations modernization.

For the period of reconstruction of the SS "Astana" the following

activities for environmental protection will be performed:

1. Compliance with environmental requirements during the

installation and operation of substation equipment;

2. Protection against noise and corona discharge and fans for

cooling the transformers and reactors;

3. Protection of flora and fauna;

4. Use of technically sound machines and mechanisms;

5. Arranging the stations for washing the wheels and bottoms of

vehicles on the exit road from the substation territory with recycle of

collected and settled water;

6. Removal of debris, sludge to the specially designated areas;

7. Shielding the debris, sludge during transportation by trucks;

8. Installation of technological platforms and sites for temporary

storage of waste on the site.

During the reconstruction of the designed project no significant impact

on soil, vegetation and fauna in the area of work is expected, because the

project is located at the existing residential area.

Installation works during the realization of SS "Astana" project

reconstruction are conducted in compliance with the environmental

regulations.

Dismantled equipment is stored on separate designated areas

according to the list. The list of dismantled equipment is divided into the

equipment to be liquidated, to sell to the third parties and to create a

reserve.

For the period of operation of SS "Astana" it will be realized the

following measures for the environment protection:

1. Organization and drainage of surface runoff from the roof and

the territory to the relief;

2. In accordance with the requirements of the Environmental Code

of the Republic of Kazakhstan, other legislative and regulatory acts in the

field of environmental protection and sanitary-epidemiological well-being of

the population, adopted in the country, the production and consumption

wastes are collected, stored, detoxified, transported to the place of their

utilization or disposal;

3. For the sound waste management it is necessary to keep

records and control of all types of wastes generated in the process of the

enterprise operation;



4. The separate collection and utilization of all types of industrial

waste;

5. Regular watering of green planting and territories, taking care

after the existing green planting.

The project impact will be provided during the reconstruction works

and it is temporary. However, we must take into account the potential

impact during the preparatory works.

These changes will be temporary and will not require the use of any

measures to reduce the impact level, except that the reconstruction project

should take account the aesthetic issues.

12Assessment of potential impact on air and mitigation

measures

Air pollution can lead to various threats to the health of workers and

the public. During the works of the substation reconstruction it is formed a

dust in small quantities, which is considered as an impact on the air during

the performance of the scheduled works. It is expected that the impact on

air quality will be immediate, small, local and short-term.

AEDCand CAEPCO (in the case of activities related to AEDC) require

from their contractors and subcontractors to provide assurance that any air

pollution associated with the workswill not spread beyond the area during a

definite period of time, will be in compliance with the provisions of state

laws, regulations and standards, and will not worsen "quality of life" of

neighboring properties (e.g., causing inconvenience to them).

The main sources of pollution during the reconstruction are the special

construction equipment, motor vehicles, which have a negative impact on air

basin.

The pollutants formed in a trace amount during the reconstruction

process from the used transport: inorganic dust SiO20-70%, benzo/a

/pyrene, aldehydes, nitrogen dioxide, sulfur dioxide, soot, carbon monoxide,

hydrocarbons.

The following are the examples of activities, which also potentially

form the air pollution:

Preparation of the surface, which may result in dust formation;

Dust from vehicles transporting equipment;

Process of the equipment unpacking, installation and others.

The Contractor shall include appropriate measures to reduce air

pollution levels and the appearance of dust by:

(i) providing the dust masks for operating personnel;



(ii) organization of regular water spraying for dust control;

(iii) supply the filters or dust collectors for the equipment to reduce

dust emissions;

(iv)provide protective tents for the trucks transporting the material

that can produce dust.

It is necessary to take appropriate measures to limit or reduce exhaust

emissions from vehicles. The equipment must be in good working condition.

The Contractor should arrange a regular training for the working personnel

to avoid or reduce the expected impact from the working operations.

The trucks with an open container for transportation of dust-raising

materials should be equipped with drop sides. Dust-forming materials should

be loaded not higher than a level of the drop sides, and they must be

covered with a tent.

The area of impact on the atmosphere is characterized as local, within

the territory of reconstruction and previously assessed as insignificant.

13Assessment of potential impact on local water bodies, and

mitigation measures

Water is required for the reconstruction works and for domestic use.

During the operational phase of the substation, water is required for

domestic consumption, as well as for safety requirements. As for drinking

purposes it will be used the imported bottled water. In other cases will be

used the process water, which enters to the territory of the existing

substation by a municipal water supply system.

The following are examples of activities which may result in formation

of waste water or examples of activities that may have a potential adverse

effect on water quality:

Washing and cleaning of the machines being used (washing the

wheels of trucks, etc.);

Irrigation of territory to prevent the formation of dust;

Check for the leaks the systems of fire protection, water supply,

sewerage, sanitary sewage, storm drains.

Contractor / Subcontractor should be responsible for the proper

discharge of wastewater from the site and installation of water drainage in

accordance with the contract.

During the reconstruction will be arranged the stations for washing the

wheels and bottoms of vehicles on the exit roads from the substation

territory with recycle of collected and settled water;



In view of rational use of water resources it is organized the drainage

of surface runoff from the roof and the territory to the relief.

Degree of the impact on water resources is characterized as local,

within the reconstruction territory and pre-assessed as insignificant.

14Assessment of potential impact to soil and land resources,

and mitigation measures

The works carried out on AEDC substation "Astana" under the

modernization program does not require the allocation of new or additional

land. The current land use involves the use of land plot that is already

rented by AEDC or owned by the company.

The current lease agreement have been concluded for 49-year period,

so that in the course of the modernization program will not need a new lease

agreement. Penetration into areas that are considered sensitive from the

environmental, cultural or historical points of view, will not occur in the

course of the project.

The soil may be contaminated due to spills of transformer oil.

Measures for the soil protection

The main actions to protection the soils from waste products are:

1. Be responsible for the safety of containers (storage of solid waste);

2. Storage areas of solid waste should be kept in proper a sanitary

condition, to prevent contamination of the enterprise area;

3. Landscaping;

4. Provide separate storage of waste from the premises repair, bulky

items and tree branches;

5. Planting trees:

Large shrubs are planted at a distance of 1,0 – 1,5 m from each

other with a width between rows of 1,5 – 2,0 m;

Small shrubs are planted at a distance of 0,5 meters from each

other at the same row spacing. The area free from works, outside the

driveways and sidewalks are planted with the trees and shrubs (birch,

maple, acacia, lilac and others.), the grass lawn with perennial grasses and

flowers are arranged.

Based on the analysis and the characteristics of the territory, it can be

concluded that with the compliance of the proper requirements, no harmful

effectssuch as pollution, erosion and landslide will be made on the soil and

subsoil during the reconstruction and operation periods.



15Assessment of the potential impact on the flora and fauna of

the project area

While making the Initial Environmental Examination of the project of

reconstruction of substation "Astana" it takes into account the impact on

wildlife and habitat.

Rare plants and animals listed in the Red Book are absent.

To prevent and reduce the harmful effects on wildlife and vegetation

cover it is necessary to comply and perform a number of activities to reduce

the negative impacts:

1. To prevent the fire of the existing plantations in and around the

substation area, it is necessary to observe safety rules and fire safety;

2. Ban the breaking of shrubs for household purposes;

3. Avoid littering of the territory with industrial and household

waste;

4. Provide timely care and watering of green plants;

5. Minimizie the movement of vehicles, and ensure their movement

on the roads only;

6. Do not allow the spills of transformer oils;

7. Arrange the environmental education for the wildlife protection,

prevention and control of fire situations;

Herbaceous plants are a source of food and shelter for many species of

animals and birds.

In this connection, there is a need to take measures to preserve the

existing trees and shrubs. The plants also serve as an ornament of the

landscape. Both legal and illegal cutting of trees would make a negative

impact on the project site.

110/10 kV "Astana" Substation is located in the central part of Astana

at the intersection of Omarov and Aymanov streets. Reconstruction of the

substation is planned within the existing building of the Substation in

accordance with the design assignment, so the negative impact on the flora

and fauna in the project area is not expected.

Measures to prevent the impact to the flora and fauna mean the

compliance with the environmental legislation of the Republic of Kazakhstan.

16Assessment of potential noise pollution and mitigation

measures

Sanitary rules governing the noise level in the populated areas are

provided in SanPiN RK (Sanitary norms and rules) №3.01.035-97 ―Maximum



permissible noise levels in residential and public buildings and residential

territories."

In addition to establishing the acceptable standards, the noise level is

usually regulated with respect to the noise levels at specific locations, which

are called "sensitive receptors" such as schools, hospitals, or, in the absence

of such facilities in homes or at a predetermined distance from the noise

source.

It should be made a schedule of installation works so the noise would

not cause any inconvenience near the property owners. Working operations

should be carried out only during the day.

The Contractor shall take all necessary steps:

1. Select a modern and well-maintained equipment and installations

with the reduced noise levels, fitted with the appropriate built-in

technologies and necessary damping devices;

2. Restrict the extremely noisy activities and movement of heavy

equipment at a specific daily working time;

3. Observe the special restrictions of working hours near the

populated and environmentally sensitive areas;

4. Provide the builders with the appropriate hearing protection devices

(hearing protectors);

5.Avoid the operation of the machines at low speeds.

Noise control measures

Measures to limit the adverse effects of noise on the personnel and the

local population should be carried out in accordance with the standard

"Noise. General requirements for safety."

Reduction of the sound pressure at the production site can be achieved by

developing the following special events:

Traffic optimization and management;

Reduce to the extent possible, the traffic heavy-duty trucks;

Noise reduction at source (replacement of the noisy processes and

mechanisms by the silent or less noisy);

Provide the special silencers for the units that generate excessive

noise due to gases exhaust;

Reduction of noise at the route of its distribution propagation h (install

the soundproof barriers, screens);

Use the personal protective devices for the hearing protection

(earplugs, headphones, helmets).

Hygienic rating of sound levels



There are the standards according to which are established the

permitted noise parameters for the various presence of people and animals,

depending on the physiological processes and the type of activity under

these conditions.

In Kazakhstan, currently are effective the hygienic standards of noise

levels in the workplace, approved by order of Acting Minister of Health of the

Republic of Kazakhstan №139 dated March, 24, 2005, according to which

the employees are not allowed to stay in areas with sound pressure levels

above 135 dBA of any octave band. Permissible sound level for permanent

jobs for the enterprise area is set at a level of 80dBA.

There is no indication that the sensitive receptors would be potentially

exposed to contamination of operational noise.

17Assessment of the potential impact on formation and

disposal of the production waste, and mitigation measures

Solid wastes are formed as a result of the reconstruction project

activities. These wastes can include: unprocessed timber (trees, frames,

lumber) and processed timber (plywood, wood preservatives, compressed

wood),paper and cardboard (from containers, packaging materials,

specifications, drawings, reading material), bituminous substances, brick /

stone, concrete, aluminum, plastic (of pipes, hoses, fittings, moldings,

doors, windows, film, tare, containers, packaging), ferrous metals (steel

bars, pipes, lighting, building elements, air tubes, drums, cans, bottles),

gravel (soil, stone, concrete, asphalt, brick), non-ferrous metals (aluminum,

copper, brass, electric wiring, electrical and plumbing equipment) and etc.

All contractors and their subcontractors are responsible for reducing

the amount of solid waste formed on the territory of the site. It is expected

that the Contractor will plan and implement the entire operating activities so

as to reduce the formation of solid waste.

AEDCand CAEPCO (in the case of activities related to AEDC) will

encourage the contractor /sub-contractor in the implementation of strategies

to reduce solid waste:

After the introduction of the waste reduction practice: as far as

possible, to provide the large lots supply and carefully monitor the unused

materials;

When designing the landscaping and planting must avoid

excessive clearing of trees. Instead, better to cut roots and branches,

located directly on the job site;

Clarify the conditions for purchase orders, so the suppliers ship



a minimum of packaging material together with the goods, or require from

suppliers to remove and process the packaging materials after delivery

(unless the packaging material can be reused several times);

Use the purchased materials optimally;

Use the structures of the elements manufactured outside the

site;

Materials should be measured, that there were no surplus and

the need to cut;

Provide garbage containers on the site area, to avoid the

formation of prohibited dumps.

These approaches help to save money, time, protect the environment

by limiting the potential pollution, and save the material resources.

During the reconstruction of the substation the environmental impact

as a result of formation of solid waste is regarded as insignificant, because

AEDCfollows the policy of waste minimization.

18Assessment of potential impact in relation to cultural,

historical and archaeological assets and mitigation measures

Historical and cultural heritage requires the permanent protection from

all dangers. Ensuring such protection in the Republic of Kazakhstan is a

moral duty and determined by the Law dated 02.07.1992, № 1488-XII

(amended on 29.09.2014) "On protection and use of historical and cultural

heritage" as an obligation of all legal entities and individuals. Protectionof

monuments of architecture, archeology and history is provided by the

provisions of this Law of RK.

The liability for safety of monuments is prescribed by the

administrative law of the Republic of Kazakhstan. Violations of the law on

protection of historical and cultural monuments entail the material,

administrative and criminal liability foreseen by the law.

The planned reconstruction of the substation on the territory of Astana

does not affect the monuments registered by the bodies for monuments

protection of the Committee of Culture of the Republic Kazakhstan, that

have architectural and artistic value and scientific interest in the study of

folk architecture of Kazakhstan.

Reconstruction of the substation is planned within the existing building

substation in accordance with the design assignment, so no impact on the

cultural monuments, historical and archaeological assets is expected.

Measures to prevent any impact on the cultural, historical and archaeological



assets mean the compliance with the environmental legislation of the

Republic of Kazakhstan.



VII INFORMATION DISCLOSURE, CONSULTATION AND

PARTICIPATION

19Interaction with related parties

AEDC adheres to the requirements of the legislation the Republic of

Kazakhstan, ESMS, and its internal policies on public relations governing the

information transfer and disclosure.

Along with Safeguard Policy Statement of ADB and Policy on Mass

Communication, managers of PESSHSAEDC should ensure that relevant

information on social and environmental security has been provided in a

timely manner at an accessible place, in a form and language understood by

the people, which are affected, and other interested parties, including the

public, so that they could provide meaningful information for the design and

implementation of the project.

Organizational structure of AEDC includes Departments of Public

Relations responsible for coordination with the stakeholders and the public.

AEDC has a policy on public relations to communicate with internal and

external stakeholders, including employees, customers, corporate partners,

investors, government agencies, civil society organizations and the media.

Managers ofPESSHSof AEDC with the assistance of a design

consultant, construction and renovation contractors, supervision and

operation contractors, as well as other personnel carry out the important

consultations with various stakeholders.

Targeted consultation - a process that (i) starts at the beginning of the

preliminary stage of the project and is carried out in the course of the whole

project; (ii) ensures the timely disclosure of relevant and adequate

information that is easily understood by the people, which are affected; (iii)

is taken in an environment in which there is no threat or coercion; (iv) takes

into account the gender requirements and specifically adapts to the needs of

socially disadvantaged and socially vulnerable groups of the population;( (v)

allows to take into account all the points of view of people that are affected

and other interested third parties, when taking the decision on the design,

measures aimed at protection from the impact, mutual use of benefits and

development opportunities, and implementation issues.



Managers of PESSHSof AEDC with the assistance of the design

consultant, contractors for reconstruction and construction, supervision and

operation and other staff keep contact with the public, groups or people

which are impacted by the project, as well as with the public through the

disclosure of information and consultation to ensure the awareness of

participants which is carried out in accordance with the risks and impact on

the population.

The consultation process includes a number of formal and informal

methods of consulting, such as the detailed interviews, public meetings,

discussions with focus groups, etc. Examples of the main applicants, who

must be consulted during the preparation and implementation include the

following stakeholders:

(i) Heads and members of the family, which may be affected;

(ii) The families, which have effect on them and who belong to the

socially vulnerable groups;

(iii) Representatives of communities impacted by (including women);

(iv) Local civil society and non-governmental organizations;

(v) representatives of relevant government authorities and

organizations.

Women's participation is ensured by involving them to the public

consultations at various levels and stages of project preparation and with the

help of the preparatory work that allow them to attend such meetings.

Preparatory workbegan with theconsultative meetingswith

representativesof state bodies,AEDC representatives, the local population.In

April and May2014were heldtwomeetings anddiscussedissues related to

thereconstruction ofthe substation with the followingparties:

• Departmentof Energyof Akmola Oblast Akimat;

•Department of Ecology ofAstana;

• Committeefor Construction,Housing and Utilities;

• AEDC Representatives

•Local communitiesand private individuals.

No problems or concerns were raised from the local communities and

other stakeholders that will interfere with the reconstruction of the existing

substation were found.

AEDC has the Stakeholders Involvement Plan, which is obligatorily to

be performed. SEP provides the detailed data on the participation of

stakeholders in each of the regional offices of AEDC. In particular, SEP

determines the type of information delivered to the stakeholders and for

public,places for disclosure of the environmental and social information and



negotiation, the contact details of designated staff of AEDC, mass media,

attracted media.

20Scheduled disclosure of information

Some information on environmental and social issues for the

interested parties and public is available through: (i) posting the data on the

corporate website; (ii) placing on the corporate publications, regional and

national newspapers, as well as information leaflets and posters; (iii) (iii)

public meetings, hearings, discussions, and providing information through TV

and radio.Also the information can be shared through mailing lists, unions

and associations. AEDC monitors the implementation of the measures of

ПВЗС, and includes the results of the actions to the Corporate Report on the

PESD.

AEDC reveals through the mass media its annual Audit and Financial

Reports, announcements on public hearings, the proposed tariffs for

services, norms of technical losses, as well as an annual report on AEDC

operations. Announcement of the date and place of such hearings are

published in newspapers of general circulation in the region.

AEDC cooperates with the regional administration (district towns and

the city) by means of telephone communication, and informs them of

upcoming meetings and discussions. AEDC is also working with the NGO

"Kazakhstan Association of Electricity" which is responsible for the energy

sector’s issues.

No special publications on the environment and social issues AEDC did.

However, the company specializing in the analysis of environmental impacts

attracted by design companies engaged by AEDC, fulfill the requirements for

the organization of public consultations within the framework of EIA report,

to provide the interested parties with the opportunity to review the analysis

and feedback.

21Comments and responses

During the consultations, public hearings and meetings all those

affected and interested parties have the right to express their comments and

ask questions. In its turn, the initiator of the project will provide a response

to the comments received and consider all comments on the project and

mitigation measures on the environment, with special attention paid to the

needs and concerns of the socially vulnerable groups, including women and



children, the poor, the disabled population, older persons and indigenous

peoples.

Public consultationshave providedthe detailed information onthe

planneddesignfeatures,its expectedactionsand pre-project dataon the

environment.

During the consultationsfor the project development and

replacementof power transformers, allinterested partieshad the opportunity

toask questionsandmake suggestions. Allrelevant andinteresting

questionswere answeredby representatives ofthe Government bodies and

AEDC engineers: PavlovA.V.- Chief Engineer ofJSC "AEDC", LamonN.M.-

Chief Engineerof AkmolaMES, GolikovA.L.- Chief Engineerof the Project,

Martynenko V.A.- Head ofEnergy Department of Akmola Oblast Akimatand

the Departmentof Ecologyin Astana.



VIII GRIEVANCE MECHANISM

22 Levels of settlement of grievances

AEDC considers the complaints in accordance with the Law on the

Procedure for considering the complaints of individuals and legal entities No.

221-III, dated January,12, 2007 (Act as amended was adopted on July,27,

2011). The approved term for consideration and discussion of complaints is

15-30 days, depending on the complexity of the process. In AEDCwas

established the Commission for the resolution of complaints, which includes

an equal number of trade-union representatives, and representatives of the

AEDCadministration (appointed by the President of AEDC). The Commission

considers the complaints and disputes relating to labor relations.

Any disputes, misunderstandings or disagreements in many cases are

resolved with the help of an informal discussion with the direct supervisor of

a person who wrote the complaint or the Commission on resolves the

complaints and in this case, no written complaints aresent to the

management. At the level of MES / RES the regular meetings are held with

the participation of trade unions, which review and discuss all outstanding

issues, disagreements and complaints.In most cases, the complaints concern

to the supply of personal protective equipment (boots, special clothing) of a

wrong size, delay in the provision of personal protective equipment (in most

cases a delay of 1-2 days arises due to the need to deliver the clothes from

the warehouse), wrong calculation of the wage and other issues related to

payment, etc. Department for Labor Resources informs the new employees

on procedures for complaints and call them to share the problems also with

the Department of Human Resources and tries to find an informal resolution,

thus facilitating the solution of complaints.

According to the AEDC management within the whole period of AEDC’

s activities, no single case of the judicial examination of any disputes

between employees and management has occurred. Also, in the process of

resolution of complaints the trade-union actively participates that seeks to

promote to the amicable and informal resolution of complaints.

Human Resources Group periodically visits MES / RES, during which it

carried out the discussions with management and staff of all outstanding

issues and complaints. Moreover, in a situation when the Department for

Labor Resources identifies certain problems that may prevent the smooth

operation of the affiliate (e.g., staff rotation, etc.), they visit a particular

affiliate and discuss the situation with the employees of the company.In

some cases, it is arranged an informal interview of employees and analysis



of results. Questionnaire is anonymous, so all workers can express an

objective opinion on the situation and make suggestions on ways to improve

the situation. Department for Labor Resources adheres this approach when

necessary to prevent conflict.

In general, in 2012, 34 complaints were received by AEDC. Complaints

regarding the tariff increases, the use of differentiated tariffs, installation of

metering equipment, theft of electricity (madeby anonymous person), the

procedures for concluding contracts for electricity, issuance of technical

documentation, etc. All complaints received were addressed and resolved.

No complaintswere received regarding the environmental and social issues.

23Coordination with the complaints, accounting and reporting

In addition to the creation of the Grievance Committee, the points to

receive complaints will be established at the local level in order to get help,

to receive a report or send complaints that received from affected persons

and the public.

Affected persons or other interested persons may attend, call, send a

letter or fax to any of the Complaints Reception Points to register their

complaints and suggestions regarding the land use, social and

environmental aspects of the project (including, but not limited to violations

caused by traffic flow, noise, invasion of foreign territory, etc.).

Grievance Committee, Complaints Reception Points at the local level

must keep a logbook for recording the complaints and will monitor their

status. Complaint forms are available in these areas in order to facilitate the

writing of complaints. Information on the resolution of the complaint will be

summarized in reports submitted to ADB.

24Disclosure of the complaint process

All contact details of the assigned persons and a detailed description

of the mechanism of complaintsconsideration will be published in the print

media, and will be distributed in the form of brochures on AEDC website.

Such mechanisms to address complaints will be presented during the

public consultations and informal meetings on the project. Existing NGOs

can also serve as a tool to distribute the information on the procedures for

complaints and promote awareness rising in the project area. Information

on the dispute resolution process will also be available from Grievance

Committee, as well as in the offices of the designated person at the local

level.



IXENVIRONMENTAL AND SOCIAL PLANNING AND

MANAGEMENT

25 ENVIRONMENTAL AND SOCIAL MANAGEMENT PLAN (ESMP)

For the projects of electricity transmission and/or distribution of

category B, AEDC with the assistance of consultants of the third party LLP

«TITECO» (Appendix 3) has prepared the Initial Environmental Examination

(hereinafter IEE), including ESMP.

IEE has been prepared in accordance with the Safeguard Requirements

of 1 (SR 1) of Annex 1 PSP of ADB 2009. IEE describes the researches

needed to determine the potential impacts on the environment. IEE has

been prepared and will be made public in accordance with the ADB’s Public

Information Policy- 2011. IEE will be available to the public (in English and

local language) prior to the Project approval. Based on the Environmental

Impact Assessment of the project, it was developed a Plan of Environmental

and Social Management (PESM) within the framework of the project on

mitigation of the adverse effect on the environment. PESM indicates the

adverse effects and possible mitigation measures, the requirements for

monitoring, timing, as well as the list of authorities, which are responsible

for PESM implementation (Refer to Annex 1 – Environmental and Social

Management Plan).

The resulting matrix of environmental and social impact and the

mitigation measures are presented below in Table 23.1, which provides a

detailed environmental analysis of the project sites and review of the

environmental impacts of the standard power transmission projects. AEDC

will document any unintended consequences of any project activity.

PESM implementation

The total PESM of the project is given in Annex 1, which defines

possible and cost-effective measures to be taken in order to reduce potential

adverse effects to an acceptable level in the reconstruction of 110/10 kV

Substation "Astana". There are given the appropriate mitigation measures

offered for each potential impact, including the detailed information about

the responsibility of the parties for the implementation of mitigation

measures and supervision.



Table 25.1: Potential environmental and social impacts

Environmental

parameters

Potential impact Impact type Level of impact

None Low Average High

Topography Changesinsurface

featuresand the

existingaesthetics due to

the works

Direct/Local/

Irreversible

X

Climate Lack ofclimateimpact Direct/Local

/

Irreversible

X

Air Quality Project will havea

negligible impact onair

quality during the

reconstruction stage

Direct/Local

/ Reversible

X

Noise Noisefrom

generalreconstruction

works

Direct/Local

/ Reversible

X

Quality

ofsurface

andground

water

Water discharge from the

work site

Direct/Local

/ Reversible

X

Domesticwaste waterfrom

the workingsite

Direct/Local

/ Reversible

X

Soils

andGeology

Damage caused byseismic

activity

Direct/Local/

Reversible

X

Terrestrial

ecology

Loss ofvegetation Direct/Local/

Irreversible

X

Terrestrial

fauna

Disturbance of local

faunaduring the

reconstruction

Direct/Local/

Reversible

X

Health care Fires, explosions and

otheraccidentsat the site/

PZ

Direct/Local X

Exposure to

electromagnetic fields

Direct/Local/

Long-term

X

Labor A positive impact onthe

availability of jobsduring

thereconstruction stage.

Job opportunities for local

Direct/Regio

nal

X



Environmental

parameters

Potential impact Impact type Level of impact

None Low Average High

workers.

Jobsorassistance

providedto women

Cultural

objects

Archaeological ,

historicalorcultural

significantobjectsare not

affected during the

substation reconstruction

Direct/Local/

Reversible

X

Formation of

Solid waste

The possibility of

contaminationof surface

andgroundwater

Indirect/Loc

al/

Reversible

X

Land

acquisition

and

resettlement

Direct/Local X

Indigenous

Peoples

Direct/Local X

Contractors / subcontractors must comply with all applicable national,

state and local environmental laws and regulations, social issues and

obligations. As mentionedabove, AEDC adheres a policyof non-interferenceto

the workof contractors.It is expected thatthe contractors will employ 12

employees for the period ofsubstation reconstruction and 2AEDC

technicalsupervisors will be involved. The Contractor creates a functional system to manage the impact on

the environmental and social spheres, including all the arrangements for

monitoring and impact mitigation outlined in the Environmental and Social

Management Plan (ESMP).

Disaster clean-up operations / emergency response management

The Contractor shall appoint an emergency response team to respond

to the potential environmental incidents. Annex 2 provides more detailed

information.

AEDC manager for PESSHSis responsible for internal monitoring of

ESMP implementation, consideration of reports of technical supervision, pays

attention to the state / local requirements, and defines the necessary



measures.



X CONCLUSIONS AND RECOMMENDATIONS

Land Acquisition

The conclusions were made according to the results of the Initial

Environmental Examinationof the project for reconstruction of 110/10 kV

Substation "Astana".

Land plot under the existing production facility and infrastructure

isowned by AEDCor rented in accordance with the provisions of the laws of

the RK. Land plot is leased from the State for 49 years, and AEDC pays a

rental fee stipulated by the contract. The land lease does not include any

use of the land plot owned by a private individual / private entity.

Indigenous Peoples/ethnic minorities

According to the 2009 census, the population of Kazakhstan consists of

more than 100 ethnic groups (nationalities), including Kazakhs (63% of the

total population), Russian (24% of the total population), Ukrainians, Uzbeks,

Uighurs, Tatars, Germans, etc. The ethnic groups, other than the principal,

settled in the area many years ago.

All ethnic groups are fully integrated into the Kazakh majority, having

an equal access to land and natural resources, health, education, means of

living and social security.

None of these ethnic groups does not show the cultural and social

identity from the rest of society in Kazakhstan, that could be appropriate to

ADB's definition on Indigenous population, as defined in ADB Safeguard

Policy Statement (paragraph 6, Safeguard Requirements 3 of ADB's SPS -

2009 ). This statement is also supported by the documents and reports

submitted by international organizations implementing projects in the

Republic of Kazakhstan (including ADB–supported projects), as well as

during negotiations with AEDC.

Labor and working conditions, Corporate Social Responsibility

AEDC policy in the social sphere is designed to increase the level of

social protection of workers and their families through the provision of social

assistance, support, warranties, and cover (i) development of appropriate

policies and mechanisms; (ii) providing training, improvement of

professional skills; (iii) providing compulsory insurance for employees; (iv)

preliminary and periodic medical examination of workers; (v) providing

financial aid to workers in certain cases (child birth, death in the family, help

to large families, families with disabled children, etc.); (vii) continuous

monitoring of working conditions and preparation of relevant reports,



etc.Particular attention is paid to supply for the workers of special clothing,

personal protective equipment, as well as to provide medical examination for

the staff. The company provides the employees with compulsory social

insurance and employers' liability insurance against injury or disease,

received by employees during the execution of their duties. Collective

agreements in subsidiaries are concluded between the employer and

employees. Training of managers, specialists and workers (including various

training courses on occupational health and safety, industrial safety,

improvement of skills and the acquisition of related disciplines) is organized

in the training center of the company. To improve the educational level of

the staff, the company applies a system of incentives and provides

educational scholarships and compensation for travel.

Disclosure, Negotiation and Participation: Stakeholders Involvement

AEDC adheres to the requirements of the legislation of the Republic of

Kazakhstan, PESA and its internal policies on public relations governing the

information transfer and disclosure.

Organizational structure of AEDC includes Departments of Public

Relations, responsible for working with the stakeholders and the public.

AEDC has a policy on public relations to communicate with internal and

external stakeholders, including the employees, consumers, corporate

partners, investors, government agencies, civil society organizations and the

media.

Companies specializing in the analysis of environmental impacts,

attracted by the design organizations hired by AEDC, fulfill the requirements

for the organization of public consultations in the EIA report, to provide the

interested parties with the opportunity to review the analysis and feedback.

Resolution of complaints

AEDC has a mechanism for resolving the internal and external disputes

and the complaints. AEDC uses an internal communication system / intranet

to give employees the possibility of submitting their written complaints.

If a disagreement or agreement is related to the performance of labor

duties, a complaining employee writes a letter to the head of the trade-

union, and the trade-union representative discusses then and resolves issues

with the foreman and superiors of the employee. To submit a proposal, the

employee shall prepare a draft memo, which is sent to the heads of

appropriate structural units, for consideration and decision making. No time

limit for resolving disputes is indicated, but it is desirable to make efforts to

resolve the issue as soon as possible and without delay.



Gender issues

Policy and the concepts of human resources, supported by AEDC are

not contradict to the laws and regulations of the Republic of Kazakhstan, and

ensure compliance with the following principles: (i) do not differentiate

salary and benefits among employees of both genders of the same

professional category and (ii) to provide maternity leave and allowances for

the women for childbirth.

AEDC provides the equal employment opportunities for both men and

women. Employment, maternity leave and other working provisions are

developed in accordance with the Labor Code of the Republic of Kazakhstan.

There are no positions/ jobs that are prohibited to employ a woman. Women

are employed in almost all groups of employment and subsidiaries. The

above is also true for AEDC.

Organizational responsibility, resources and capacity

At present the Environmental and Social Management System operates

in AEDC. Some units of AEDC (for example, the Department of Public

Relations, Division of Occupational Safety and Health, Human Resources,

etc.) cover some environmental and social problems.

As for AEDC activities it was not required any land acquisition, there is

no separate division to address the issues of land acquisition and

resettlement, and coordination with the Government on these issues.

Environmental and Social Management Plan

Environmental analysis, impact assessment, definition of mitigation

measures, monitoring of environmental conditions are drawn up in

accordance with the laws of the Republic of Kazakhstan, and executed by

the third parties engaged by AEDC under the contract (in most cases the

project organizations attracted by AEDC conclude the subcontracts with the

specialized environmental organizations for the development of EIA and

IEE). With regard to social issues and land use, mostly such issues are

solved by Department of Human Resources and Legal Department.

Corporate ESMS. CorrectiveAction Plan

According to ADB requirements, AEDC has implemented Environmental

and Social Management System (ESMS) that meets the requirements of the

ADB SPS (2009) for the implementation of the investment plan of AEDC,

funded by the ADB.

Environmental and Social Management System focuses on the roles

and responsibilities of CAEPCO and AEDC, and also provides guidelines and



procedures for managing the environmental and social risks of the electricity

distribution business.

The following measures to increase the capacity and conduct trainings

are recommended to improve AEDC’s production activities, as well as to

solve the environmental and social issues within the proposed investment by

the relevant employees:

Training for AEDC staff in accordance with the requirements of

ADB SPS (2009), Social Protection Strategy (2001), Gender and

Development Policy (1998) and PublicCommunication Policy (2011), the

requirements for monitoring and reporting of ADB;

Training for AEDC staff in accordance with the requirements of

ISO 9001 (Quality Management Certificate), ISO 14000 (Environmental

Management System), ISO 18000 (Occupational Health and Safety), 50001

(Energy Management).

Maintain the relevance of the information on the corporate

website of AEDC which serves as a platform for providing information on the

activities carried out by AEDC (including the environmental and social

activities), as well as for the disclosure of documents;

Organization of periodic public consultations (involving the

government agencies, stakeholders, NGOs and the public) to distribute the

information about AEDC’s environmental and social events, and reporting on

the implementation of environmental management systems and social

environment;

Ensuring the availability of boxes of "complaints and

suggestions" in pay points of AEDC (AEDC - Energosbyt) and in other

appropriate locations, as well as the proper functioning of the window

"question-answer" on the corporate website to allow the stakeholders and

the public to ask their questions; ensure a mechanism to provide answers

and explanations to all questions.

The project has no negative impact on the physical, environmental,

social and economic environment during the reconstruction of the substation

and its operation. Since there are no environmentally sensitive areas in the

project area, there are no a potential risk of harm to the environment.

110/10 kV "Astana" Substation already exists, and this project is a project

for improvement.

Temporary environmental impacts are expected during the

reconstruction, but they will be minimized by proper planning, good design

and implementation of the proposed mitigation measures.

The project is classified as Category B with respect to the impact on

the environment and as shows the prepared environmental analysis, the



project has no significant effect on the environment. In this regard, no

further inspections are required.

Plan on environmental management is prepared with the description

of mitigation measures and monitoring actions to be taken during the

preliminary phase, the phase of reconstruction and maintenance, as well as

at the decommissioning phase.

Special environmental provisions that are related, but not limited to

ESMP:

(a) erosion control, air and water quality control,

(b) ensure security

(c) basic and ongoing monitoring of noise and vibration in the

substation territory,

(d) basic and ongoing monitoring of quality of air, water and

ecosystems,

(e) public relations;

Control and monitoring of the environment. It is recommended a basic

and ongoing monitoring and review of mitigation measures during the

detailed design phase.

Strengthening the capacity for environmental management. It is

recommended a training program for selected staff in order to improve the

management activities.



Annex 1

ENVIRONMENTAL AND SOCIAL MANAGEMENT PLAN Project

operation

/phase

Potential

impact

Offered mitigation

measures

Monitoring

scope

Measurement

and

periodicity

Institutional

responsibility

Execution

Schedule

Design and preliminary phase

Design of the

transformer

substation

modernization

Inconveniences

to adjacent

areas and

people due to

the disassembly

and assembly

operations

Provide for safe and

sufficient removal of

obstacles, minimize the

activities in the areas

adjacent to residential /

office buildings

Proximity to

residential /

office buildings

and other

structures of

Technical

specifications -

once

JSC "CAEPCO",

JSC"AEDC",

Detailed Design

consultant

During

preparing a

detailed design

Noise impacts

associated with

the supply of

equipment

Inconveniences

to neighboring

owners during

transport and

storage / on-site

installation

Make a schedule of

installation works so the

noise would not cause any

inconvenience. Perform

the works only at the

daytime.

Noise level Noise level is

determined in

the tender

documents -

once

JSC "CAEPCO", JSC

"AEDC",

Detailed Design

consultant

During

preparing a

detailed design

and tender

documentation

Equipment

which

undergone the

changes due to

severe weather

conditions

Impact on the

equipment,

wires, cables,

equipment for

dismantling/

assembly

operations

Usinga suitable material

resistant to weather

conditions

Design adapted

to the harsh

weather

conditions

Review of

technical

specifications at

preliminary

stage of the

project - once

JSC "AEDC"

Detailed Design

consultant

Supplying company

During

preparing a

detailed design

and tender

documentation



Project

operation

/phase

Potential

impact

Offered mitigation

measures

Monitoring

scope

Measurement

and

periodicity

Institutional

responsibility

Execution

Schedule

Explosions /

fires in

substations

Security risks Prepare the design

solutions, which should

include the modern fire

fighting and alarm

systems

Compliance with

requirements

for the

prevention and

control of fire

Tender

documents

should refer to

the detailed

specifications -

1 time

JSC "AEDC" Detailed

Design consultant

During

preparing a

detailed design

and tender

documentation

Invasion into

the precious

ecological areas

Loss of precious

ecological

values/ damage

to valuable

species

Avoid the invasion by

selecting a place of an

existing object

Loss of habitat of

flora and fauna

National

legislation on

environmental

protection - 1

time

JSC "AEDC"

Detailed Design

consultant

During

preparing a

detailed design

Reconstruction phase

Transportation

and installation

of equipment

Safety on roads,

health and

safety of

workers

On the transportation

route indicate any

obstacles before

transportation

Visual inspection Once JSC "AEDC"

Detailed Design

consultant

At

reconstruction

phase

Placement and

installation of

equipment

Noise and

vibration

Technology and selection

of equipment are

designed to minimize the

ground disturbance

Visual

inspection, the

methods used,

and equipment

testing

Construction

technologies

and equipment

that make

minimal ground

disturbance -

once at the

beginning of

reconstruction

phase

JSC "AEDC"

Detailed Design

consultant

At

reconstruction

phase



Project

operation

/phase

Potential

impact

Offered mitigation

measures

Monitoring

scope

Measurement

and

periodicity

Institutional

responsibility

Execution

Schedule

Throwing the

packaging

materials

Contamination

of receptors

(earth, water,

air)

Utilization of recycled

materials through the

processors, send the

waste that cannot be

reused for disposal the

agreed waste collection

Number of

recyclables /

Number of non

recyclable waste

(kg)

Every week

JSC "AEDC"

Detailed Design

consultant

At

reconstruction

phase

Electric shock Death or injure

of workers or

the population

Security fences around

substations.

Installation of warning

signs.

A clear limitation of the

reconstructing area to

prevent an unauthorized

access

Proper

installation of

fences and

warning signs

Every week

JSC "AEDC"

Detailed Design

consultant

At

reconstruction

phase

Construction

waste

Solid Waste

Management

Utilization of recycled

materials through the

processors, send the

waste that cannot be

reused for disposal the

agreed waste collection

Location and

volume (m3)

Acceptablelocat

ion-every2

weeks

JSC "AEDC"

Detailed Design

consultant

At

reconstruction

phase

Storing of old

transformers

and other

materials (if

any)

Contamination

of receptors

(earth, water,

air)

Secure safely the old

transformers(includingoil

used

inoldtransformerswhich do

notcontainPCBs)

Location of

allplaces of

materials

storage;

ACCIDENTALrep

orts(typeof

spilledmaterial,

quantity,

Storageof old

transformers in

AEDC

warehouse as

the reserve

equipment.

JSC "AEDC"

Detailed Design

consultant

At

reconstruction

and operation

phase



Project

operation

/phase

Potential

impact

Offered mitigation

measures

Monitoring

scope

Measurement

and

periodicity

Institutional

responsibility

Execution

Schedule

measures

takento clean up

the

spilledmaterial,

measures to

preventspills)

Pollutant

emissions from

vehicles

Air pollution Regular and timely

accounting of vehicle

movement;

Use of good quality fuel

Maintenance of

vehicles by the

contractors

as necessary Contractor At

reconstruction

phase

Inconveniencee

xerted to the

property

located nearby

Infringement on

theneighboring

territories

Contract clauses that

strictlyprohibit the

improperextension ofthe

reconstructing site

anddetermine

theexacttechnology of

works

performance

Contract clauses Include the

effective

management

methods- 1

time

JSC "AEDC"

Detailed Design

consultant

At

reconstruction

phase

Inadequate

monitoringdurin

g the

reconstruction

Maximizing of

adverse effects

Implementation

ofeffectiveenvironmental

monitoring and

reportingusing alist ofall

contractualenvironmental

requirements

Appropriate

contractualcheck

listsandmeasures

takento

eliminate them

Submissionof

duly

completedcheck

lists for each

area-at

leastonce a

month

JSC "AEDC"

Detailed Design

consultant

At

reconstruction

phase



Project

operation

/phase

Potential

impact

Offered mitigation

measures

Monitoring

scope

Measurement

and

periodicity

Institutional

responsibility

Execution

Schedule

Appropriate contractual

clauses to

ensuresatisfactory

implementation of the

contractual environmental

actions

Report on

compliance

relatedto the

environmental

aspectsof the

contract

Submission of a

properly issued

compliance

report for each

contract - at

least once

month

Removal

ordamage to

otherutilities

Inconvenience

to population

Notify in advance the

populationof the time

andduration of the

enterprise malfunction

Immediately rehabilitate

the public in order utility

to eliminatethe

inconveniences

Violation of

otherindustrialan

d social

activities/public

complaints

Technical

specifications -

onthe basis of

complaints

JSC "AEDC"

Detailed Design

consultant

At

reconstruction

phase

Works

Schedule

Noise

interferencecaus

ed to the

neighboringresi

dents

Restrict the performance

of worktodaytimeonly,

inform localpeople on the

works schedule

Works schedule Reconstruction

in accordance

with the

planneddates

JSC "AEDC"

Detailed Design

consultant

At

reconstruction

phase

Transportation

and storage

ofmaterials,

transportation

and disposal of

Inconvenience

to population

Transport loading and

unloading

ofmaterialsshould

notcause any

inconveniences tothe

Availability of

the designated

areasat the

sitesfor

temporarywaste

technical

specificationsof

contracts-on a

monthly basis

JSC "AEDC"

Detailed Design

consultant

At

reconstruction

phase



Project

operation

/phase

Potential

impact

Offered mitigation

measures

Monitoring

scope

Measurement

and

periodicity

Institutional

responsibility

Execution

Schedule

garbage

andwaste

population

Building materialsshould

be storedin closedareasin

order to ensurethe

groupingof such materials

by the

environmentallyfriendly

way, not causing any

inconvenience

collection.

Timely removal

ofwasteto the

agreed disposal

places

Occupationalhe

althandsafety

Injuriesand

illnessof workers

andthe

population

Terms of the

contractdetermining

theminimum requirements

for the

reconstructionsites.

The Contractor

shallprepare

andimplement a plan

foroccupational healthand

safety

The Contractor

shallorganizeawareness-

raising activitiesof health

and safety.

Contract clauses

(number of

accidents

andcompletelylos

t work daysdue

to injuriesand

illnesses)

Rules

onoccupational

healthandsafety

- quarterly

JSC "AEDC"

Detailed Design

consultant

At

reconstruction

phase

Operationandmaintenancephase



Project

operation

/phase

Potential

impact

Offered mitigation

measures

Monitoring

scope

Measurement

and

periodicity

Institutional

responsibility

Execution

Schedule

Transformeroils

pill

Soil

contamination

Transformer oilshould be

stored insuitable

containerslocated

onimpermeable surfacesin

closedstorehouses

Items from the

Operation and

maintenance

manuals

Checking the

storage

conditions– 1

time

JSC ―AEDC‖

During

operation

Insufficient

provision

ofhealthand

safety of

personnel/empl

oyeesinthe

course of

operation

Injuries and

illnessesof

employees/staff

Development of guidelines

foroperation and

maintenance, using

appropriate technologiesto

minimize therisk

Use of

appropriate

technologies(lost

work days due

toinjury or

illness)

Level of

expertise forthe

use of

suchtechnologie

sin crisis

situations-once

a year

JSC ―AEDC‖

During

operation

Preparean action planfor

firesand training the

personnel to implement

the planfor emergency

response

Trainingprogram

s/alertprograms

Numberand

percentage of

the

involvedstaff

/workers-once a

year

Instructing the

case ofelectric

shock,

Injury/deathof

staff/population

Familiarizationwith safety

rules when working with

electricityin the project

area

Training

programs/alertpr

ograms to be

performed by

the whole staff

Numberand

percentage of

the

involvedstaff

/workers

JSC ―AEDC‖ During

operation

Lack ofperiodic

environmental

Reducingenviron

mental and

Training of AEDC and

CAEPCO personnel in

Training

programs/alertpr

Numberand JSC ―AEDC‖ (possible

with the assistance of

During



Project

operation

/phase

Potential

impact

Offered mitigation

measures

Monitoring

scope

Measurement

and

periodicity

Institutional

responsibility

Execution

Schedule

monitoring social

requirements

environmental

monitoringof the project

ograms to be

performed by

the whole staff

percentage of

the

involvedstaff

/workers

the consultant) operation

Maintenance

and repair of

the equipment

Leakage of

chemicals and

gases into the

receptors (air,

water, earth)

Ensure compliance with

the specifications and

limits established by local

law

Maintenance of

equipment(the

number of

inspections,

reports on

breakdowns,

etc.)

ProperGuidance

onmaintenance

and repair

ofequipment–

once a quarter

JSC ―AEDC‖

During

operation

Oil leaking Contamination

of soil / adjacent

water bodies

Use in transformers the oil

without PCBs.

Proper handling of

transformers, recycle

waste oil

Oil transformers

should be

handled only by

certified persons

and processors

National

legislation, best

practices in the

field of

environmental

protection

JSC ―AEDC‖

Duringoperatio

n

Decommissioning phase

Contamination

of soil or

groundwater

during the

substation

decommissionin

g

Contamination

of soil / adjacent

water bodies

Proper handling with

transformers, disposal of

oil wastes

Plans for

decommissioning

of the project:

The proposed

methods of

disposal,

recycling

possibilities

Availability of

plans,

agreements

with the

disposal site

JSC ―AEDC‖

At

decommissioni

ng phase



Project

operation

/phase

Potential

impact

Offered mitigation

measures

Monitoring

scope

Measurement

and

periodicity

Institutional

responsibility

Execution

Schedule

considered by

the operation

period

Identification of

approved

processing

entities or places

of hazardous

waste

Availability of

approved

processing

entities,

agreement with

them



ANNEX 2

DISASTER MANAGEMENT / EMERGENCY RESPONSE

AEDC and the contractor shall appoint emergency teams to respond to

potential environmental incidents. The purpose of the rescue group is as follows:

Personnel protection against further hazards Conversion of the site in a safe condition,

Stop, control or containment of emissions of hazardous materials

on the construction site, Control of cleaning the hazardous materials after emissions

Handling, packaging, storage and disposal of materials as a result of leakage,

Disinfection of the construction site and equipment, Ensuringand uninterrupted andqualitypower supply to

consumers, Fast and accurateexecution of instructionsand orders of

thedispatcher on dutyto conductthe network mode, make routine switchingin both the normalandemergencymodes,

Preparation ofjobs, admission of personnelto work, timely commissioning ofequipmentafter completion of works,

Performsomeoperation and maintenanceworksat substationsby the emergency response teams.

The construction and rescue team will be supervised by a Team Leader for emergency response, a representative of the contracting organization.

The purpose of the team leader for emergency response is to provide: General management and control of the emergency,

Control of safety and supervise the staff at the workplace, members of the rescue group and the public,

Technical supervision and responsibilities to assess, reduce and clean up the spills; disposal of hazardous waste, as well as decontamination

of equipment and grounds, Coordination with external response groups

Notify AEDC management on the environmental incidents Protection of facilities at the work site.

Emergency response teams work at the around the clockschedule approved by AEDC management, the shift duration is 24 hours(from08-

00am till 08-00am of the next day).

Emergency response teams are based on 110 /10kVAstana Substation and have the robust telephoneandradio communication meanswith the

dispatcher. The vehicle of the emergency response teams should be equipped



withradioto communicate with thedispatcher on duty, as well as a set of

necessarytools, protective equipment, materials, first aid kits, fire extinguishers.The vehicle should be equipped with the protective equipment

anddevicesthat are transmitted between the shifts and confirmed by a record in theoperating log of the emergency response teams.

Evacuation procedure

Evacuation procedures should include the mechanisms used to alarm

on the evacuation from the work site. These mechanisms should include the means by which the evacuation will be started and determined the

evacuation routes, areas for gathering and means for accounting the staff.It

is recommended that an alarm system to be used by a rescue group, not in an attempt to gather the employees in various master points.

Personnel responsible for evacuation should be specified in the plan, including the case of the appointment of responsible persons during periods

of overtime shifts and lack of primary coordinator for emergency situations. Evacuation routes and master points will be developed in collaboration with

the staff of "AEDC."

Contact information

Communication platform should include:

Intercomsystems for immediate notification of an emergency and instructing the staff to respond.

Alarm or notification system to provide immediate warning of the site personnel of an emergency such as a fire.

External telephones and wireless communication devices to call

for the emergency assistance from the rescue institutions in emergency situations.

Will be a list or a matrix of contact information for regulators and

resources for emergency response. Relevant authorities and contact information will be determined by the coordinator for emergency response.

It should be given the contact information of the following institutions:

National Centre for Emergency Response,

Any State Pollution Control Board, Fire / Police or any local agency, etc.

In addition to the corresponding numbers of institutions, the contact

information must be provided to the head of the rescue team or his deputy. The Contractor shall determine a sufficient number of staff to ensure the

safety of several shifts and rapid response to emergencies.



ANNEX 3:

LIST OF INVESTMENT ACTIVITIES PROHIBITED BY ADB

The following activities are not eligible for funding from the Asian

Development Bank:

1. Production or activities related to hazardous or exploitative forms of

forced15or child labor;16

2. production or trade of any product or activity that is illegal under the

laws of the host country or international conventions, agreements, or

subject to international phase-out or is prohibited, such as (a)

pharmaceuticals,17 pesticides and herbicides,18 (b) ozone-depleting

substances,19 (c) polychlorinated biphenyls20and other hazardous

chemicals,21 (d) wild animals or wildlife products regulated under the

Convention on International Trade of Endangered Species of Wild

Fauna and Flora,22 ((e) cross-border trade of wastes or by-products;23

3. Production or trade of arms and ammunition, including paramilitary

materials;

4. manufacture or sale of alcoholic beverages except beer and wine;24

5. manufacture or sale of tobacco products;

6. gambling, casinos and equivalent business;

15Forced labor means any work or services that are not performed voluntarily, that is performed by

persons under threat of force or punishment.

16Child labor means the employment of children whose age below the statutory minimum age of employment in the country, or the employment of children is in conflict with the International Labour Organisation Convention №138 "Convention on the minimum working age» (www.ilo.org).

17 List of pharmaceutical products discontinued or banned can be found at http://www.who.int

18 List of pesticides and herbicides discontinued or banned, can be foundhttp://www.pic.int 19 List of chemical compounds, reactive and deplete stratospheric ozone, resulting in the formation of

ozone holes is listed in the Montreal Protocol, together with the dates of the target reduction and phasing out. Information is available on the websitehttp://www.unep.org/ozone/montreal.shtml

20Group of highly toxic chemicals, polychlorinated biphenyls were found in oil-filled electrical transformers, capacitors and switchboards in the period from 1950 to 1985.

21List of hazardous chemicals can be found at http://www.pic.int 22The list can be found on the website http://www.cites.org 23By the definition of the Basel Convention. Seehttp://www.basel.int. 24 This does not apply to project sponsors who essentially do not participate in these events. Not

substantial borrowed funds of the activity are ancillary to the main activities of the project sponsor.

http://www.ilo.org/

http://www.who.int/

http://www.pic.int/

http://www.unep.org/ozone/montreal.shtml

http://www.pic.int/

http://www.cites.org/

http://www.basel.int/



7. Production or trade in radioactive materials,25including nuclear

reactors and their components;

8. production, sale or use of unlinked asbestos fibers;26

9. commercial forest harvesting operations or purchase of forest

harvesting equipment for use in the primary moist tropical forests or

old-growth forests, and

10. marine and coastal fishing methods, such as large pelagic driftnet

fishing nets and fishing nets of a fine mesh, dangerous for vulnerable

and endangered species in large quantities and are harmful to the

marine biodiversity and habitats.

25 This does not apply to the purchase of medical equipment, quality control (measurement), and any

equipment, which ADB considers the radioactive source as a minor and largely protected.

26This does not apply to the sale and use of protective coatings connected asbestos -cement protective covers where the asbestos content is less than 20%.



ANNEX4





ANNEX 5





