AZERBAIJAN:

(E2549 REV)

REPUBLIC OF AZERBAIJAN

AMELIORATION AND IRRIGATION

OPEN JOINT STOCK COMPANY

INTERNATIONAL DEVELOPMENT ASSOCIATION

WATER USERS ASSOCIATION DEVELOPMENT SUPPORT PROJECT

Environmental Assessment

Environmental Management and Monitoring Plan

16 December 2010

Water users association development support project

Environmental Assessment

Environmental Management and Monitoring Plan

1. Introduction

1.1 Background

1.2 Objective

1.3 World Bank safeguard policies

1.4 Methodology

1.5 Consultation process

2. Environmental policy, legal & Institutional Framework

2.1 Policy context

2.2 Legal/regulatory framework for environmental management/assessment

2.3 Involvement of Azerbaijan in international cooperation on environment

2.4 Institutional framework for environmental management and assessment

2.5 Environmental monitoring

2.6 Regional processes

3. Key Natural Parameters of Azerbaijan

3.1 Natural setting

4. Analysis of Baseline Conditions

4.1 Description of project

4.2 Analysis of project alternatives

4.3 Description of physical/biological environment

4.4 Description of socio-economic context

4.5 Description of stakeholders and beneficiaries

5. Assessment of Principal Environmental and Social Impacts and Proposed Preventive Actions and Mitigation Measures

5.1 Anticipated positive social and environmental impacts

5.2 Anticipated negative environmental and social impacts

6. ENVIRONMENTAL MANAGEMENT AND MONITORING PLAN

6.1 Objective of the EMMP

6.2 Environmental screening and review of sub-projects

6.3 Environmental monitoring program

6.4 Environmental capacity building and training program

6.5 Implementation arrangements

6.6 Implementation schedule

6.7 Proposed budget and funding sources for EMMP implementation

ANNEXES

ANNEX A – Public Consultations

ANNEX B – International and Regional Conventions

LIST OF ACRONYMS

ADCPAgricultural Development and Credit Project (World Bank)

AIOJSCAmelioration and Irrigation Open Joint Stock Company

ARNAutonomous Republic of Nakhchivan

AZMAzerbaijani manat

BPBank procedure (World Bank)

EAEnvironmental assessment

EIAEnvironmental impact assessment

EMMPEnvironmental management and monitoring plan

FAOFood and Agriculture Organization of the United Nations

FSUFormer Soviet Union

GoAGovernment of Azerbaijan

GDPGross domestic product

GPGood practice (World Bank)

IDPInternally displaced person

IDSMIPIrrigation Distribution System and Management Improvement Project

IUCNWorld Conservation Union

ISFIrrigation service fee

MMKCMain Mill Karabakh Collector

MMMCMain Mill Mugan Collector

MoAMinistry of Agriculture

MENRMinistry of Ecology and Natural Resources

MoHMinistry of Health

NEAPNational Environmental Action Plan

NGONon-governmental organization

OPOperational policy (World Bank)

PEEvapotranspiration

PIUProject Implementation Unit

RIDIPRehabilitation and Completion of Irrigation and Drainage Infrastructure Project

RSURaion WUA Support Units

SACSamur-Apsheron Canal

SSBState Supervisory Body

SSCState Statistical Committee

SSCSuspended sediment concentrations

SSLSuspended sediment loads

US$United States dollars

WBWorld Bank

WSFWUA Support Fund

WUAWater users association

WUAPWater users association development support project

WWFWorld Wildlife Federation

ABBREVIATIONS

hahectare

kmkilometre

lcpdlitres per capita per day

lpslitres per second

mslmean sea level

Water users association development support project

Environmental Assessment

Environmental Management and Monitoring Plan

1. Introduction

This Environmental assessment (EA) and Environmental management and monitoring plan (EMMP) has been prepared for the proposed Water users association development support project (WUAP), to be co-financed by the Government of Azerbaijan (GoA) and the World Bank, in order to ensure that the project (i) incorporates sound environmental and social management principles and practices and (ii) fully complies with all GoA environmental requirements and with applicable World Bank environmental safeguard policies.

1.1 Background

The WUAP will be the World Bank’s third project in the irrigation and drainage sector in Azerbaijan and is a direct follow-up to the existing Irrigation Distribution System and Management Improvement Project (IDSMIP), which became effective in 2003 and is scheduled to close in September 2010. The objective of the IDSMIP was to improve irrigation water management by providing support to (i) development of Azerbaijan’s emerging water users’ associations (WUAs) and. the Amelioration and Irrigation Open Joint Stock Company (AIOJSC) and (ii) selective rehabilitation and improvement of associated on-farm irrigation and drainage infrastructure. The infrastructure improvements were made, for the most part, on a demand-driven basis on farms that met certain eligibility criteria within the eleven project area raions (i.e. Aghjabedi, Beylagan, Geranboy, Imishli, Khachmaz, Quba, Saatli, Sabirabad, and Zardab in Azerbaijan; Babek and Sharur in the Autonomous Republic of Nakhchivan (ARN)). The project had three components: (1) Development of WUAs, (2) Irrigation and Drainage Infrastructure Rehabilitation, and (3) Project Management, which were implemented by a Project Implementation Unit (PIU) under the AIOJSC.

As the positive results of the IDSMIP and the benefits to the rural economy and population became apparent, the GoA requested support from the World Bank for a largerscale followup project. This proposed WUAP will build on the success of the IDSMIP and will have the same core components as the IDSMIP (i.e. WUA development and infrastructure rehabilitation), but it will extend the geographical coverage to an additional 16 raions (depending on project component), bringing the total to 27 raions covered by the project. Map 1 shows the 27 raions that comprise the project area for the WUAP. The on-farm irrigation and drainage infrastructure improvements will continue to be made on a demand-driven basis on farms that meet the eligibility criteria. A limited amount of off-farm infrastructure improvements will be undertaken as necessary to ensure effective delivery of water to the rehabilitated on-farm systems. The proposed project will be implemented by the same IDSMIP PIU under the AIOJSC. The PIU comprises a number of construction engineers who oversee the irrigation and drainage infrastructure improvements and includes an environmental specialist who oversees the environmental management plan and environmental monitoring programme established by the EA and EMMP for the IDSMIP. A more detailed description of the proposed project can be found below (see Section 4.1).

4

Map 1. Project Raions

1.2 Objective

The objective of this EA (Sections 1-5 of the document) is to identify the significant environmental and social impacts of the proposed project (both positive and negative) and to specify appropriate preventive actions and mitigation measures (including monitoring) to prevent, eliminate or minimise any anticipated adverse impacts. The EMMP (Section 6 of the document) is the mechanism that ensures that the environmental prevention and mitigation measures identified, the screening and review process proposed, and the capacity-building and monitoring activities recommended will be properly undertaken during implementation of the proposed project. The EMMP also establishes the necessary institutional arrangements and proposes an implementation schedule for undertaking these EMMP activities, indicating their costs in the proposed project budget.

This EA and EMMP build on the comprehensive EA and EMMP prepared for the IDSMIP, since the WUAP’s overall approach and basic project interventions will be the same. The EA has been updated, however, to reflect the particular environmental and socio-economic characteristics of the new project raions; the EMMP has been modified to reflect lessons learned during implementation of the IDSMIP.

1.3 World Bank safeguard policies

The World Bank’s Integrated Safeguard Data Sheet for the WUAP classified it as a Category “B” project (requiring partial assessment), triggering the Bank’s safeguard policies for environmental assessment, pest management, involuntary resettlement, projects on international waterways, and safety of dams. The EA confirmed the Category “B” designation for the proposed project, finding no significant, irreversible, cumulative or long-term adverse impacts. In fact, the EA identified a number of positive impacts of the proposed project and negative impacts that could be effectively prevented or reduced through application of appropriate preventive actions or mitigation measures (see discussion of impacts in Section 5.). The EA also confirmed the application of the five specified safeguard policies to the WUAP. Four of the five policies are discussed below; the policy on involuntary resettlement has been dealt with separately. The EA also reviewed application of the Bank’s safeguard policy for natural habitats to the project. The EA determined that the project, as currently proposed, does not trigger any of the remaining safeguard policies involving forests, physical cultural resources, indigenous peoples, or projects in disputed areas.

1.3.1 Environmental assessment (OP[footnoteRef:1] 4.01, BP[footnoteRef:2] 4.01, GP[footnoteRef:3] 4.01). The anticipated environmental and social impacts of the irrigation and drainage rehabilitation component of the proposed project trigger this safeguard policy. Because the anticipated adverse impacts will not be significant or irreversible, however, and can be prevented or reduced through appropriate preventive actions or mitigation measures, the project is classified a Category “B” project and, as such, requires only partial assessment. This EA, with its EMMP ensuring that recommended preventive actions and mitigation measures will be taken, satisfies this Bank safeguard policy. Because the exact number and location of the specific rehabilitation sub-projects to be undertaken under the WUAP have yet to be determined, the EA is limited to identifying generic impacts for infrastructure rehabilitation in the project areas identified and specifying generic prevention and mitigation measures for these impacts. However, the EMMP includes environmental screening and review procedures similar to those required for financial intermediary operations that will ensure that appropriate preventive actions and mitigation measures are applied, by means of site-specific environmental management plans, to sub-project sites on a case-by-case basis (see Section 6). [1: Operational Policies (OPs) are short, focused statements that follow from the World Bank’s Articles of Agreement, the general conditions, and policies approved by the Board. OPs establish the parameters for the conduct of operations; they also describe the circumstances under which exceptions to policy are admissible and spell out who authorises exceptions. ] [2: Bank Procedures (BPs) explain how Bank staff carry out the policies set out in the OPs. They spell out the procedures and documentation required to ensure Bank-wide consistency and quality. ] [3: Good Practices (GPs) contain advice and guidance on policy implementation, for example, the history of the issue, the sectoral context, analytical framework, best practice examples. ]

1.3.2 Pest Management (OP 4.09, BP 4.09). Although the IDSMIP did not trigger this safeguard policy, the EA prepared for the IDSMIP recognized that the recovery of the agricultural sector in Azerbaijan was likely to increase pesticide use in the longer term. Because the agricultural recovery that will likely take place during the proposed project may induce an increase in the use of pesticides, the project triggers this safeguard policy. The IDSMIP relied on the Bank’s Agricultural Development and Credit Project (ADCP), with its one-day training courses and national information campaigns on pesticide application, to provide awareness raising and training on pesticide management and integrated pest management (IPM) for water users. The proposed project will continue to take advantage of the ADCP’s extension program until its closure in May 2011. But, more importantly, the project will develop and deliver its own training program on pesticide management and IPM under the WUA capacity building component.

1.3.3 Safety of Dams (OP 4.37, BP 4.37). The dams and headworks on the Samur, Kura, and Araz Rivers, which provide most of the water to the irrigation systems to be addressed in the proposed project, trigger this safeguard policy. The EA, however, does not address this policy; the Bank’s dam safety specialist will perform a separate dam safety assessment during project preparation in order to address this safeguard policy.

1.3.4 Projects on international waterways (OP 7.50, BP 7.50, GP 7.50). The Samur, Kura, and Araz Rivers, which supply most of the water to the irrigation systems to be rehabilitated in the proposed project, and the Caspian Sea, into which these rivers and project drainage systems eventually flow, are international waterways that trigger this safeguard policy. The proposed project, however, is not expected to have any significant impacts on the quantity or quality of water flowing through these rivers or into the Caspian Sea for two reasons. First, the project design is limited to the rehabilitation of existing irrigation schemes; no new irrigation schemes or extensions of schemes will be constructed. Second, the rehabilitation activities are expected to have minimal or no impact on the quantity or quality of water in (upstream or) downstream water bodies. The irrigation infrastructure improvements will not result in significant increases in either withdrawals from or discharges to the international waterways. And, based on water quality monitoring conducted during the IDSMIP, which indicated no significant adverse impacts from irrigation drainage in receiving water bodies, the project is not expected to result in significant impacts on the quality of water in these waterways. (The proposed project will discontinue the water quality monitoring performed at sites under the IDSMIP but will include similar water quality monitoring at new sites.) Therefore, the project is not expected to have any adverse effects on the water flows or the rights of the other riparian states on the international waterways, so the Bank will seek a waiver, as it did with the IDSMIP, pursuant to paragraph 7 (a) of OP 7.50 for this safeguard policy.

1.3.5 Natural Habitats (OP 4.04, BP 4.04). The EA determined that the project does not trigger the natural habitats safeguard policy. Planned project activities will take place on lands already converted to agricultural use by previous, non-Bank-related actions. As currently planned, the project will finance principally small-scale on-farm rehabilitation works, will not construct new irrigation systems and will not induce increased water abstraction. To ensure this, the EA proposes that all sub-projects be submitted to environmental screening, the criteria for which will cover natural habitat conversion, new irrigation system construction, and increased water withdrawal. The project will thus not involve “significant conversion or degradation of natural habitats” as defined in OP 4.04. The proposed project, however, includes a number of new raions in the mountainous region of northern Azerbaijan where there are national parks, protected forests and natural reserves (e.g. Qusar Preserve). These protected areas, which are typically on the high mountain slopes, are unlikely to be impacted by project interventions in the surrounding lowlands. To be sure, however, the project will ensure that rehabilitation of irrigation schemes that may result in a potential adverse impact will not be eligible for rehabilitation. The EA also requires the project to determine whether project sites in the new mountain raions will have potential impacts on rivers and their tributaries important for migratory fish populations and their spawning areas. Finally, the EA requires the project to conduct water quality monitoring at all new sites, including those in the new mountainous raions, and to assess potential impacts on the fish populations in the receiving waters.

1.4 Methodology

At the request of the GoA, the World Bank asked the UN Food and Agriculture Organization (FAO) to send an environment officer to work with the PIU environmental specialist and a national environmental consultant to update the EA and the EMMP for the WUAP. This EA team began work on updating the EA and EMMP during the first environmental mission (04-15 May 2010) of the FAO environment officer. During this period, the national environmental consultant also began gathering the baseline information for the EA on the new project raions. The team visited various proposed project areas, viewed a number of irrigation and drainage sites, and met with local officials, WUAs, farmers and other beneficiaries of the proposed project. The team delivered a draft EA and EMMP to the PIU in July 2010. The PIU disclosed it to the public in August and held public consultations on it in Baku and Zardab between 20 and 25 August 2010. This final EA and EMMP, incorporating the comments received from the local consultations, the PIU, and the World Bank, was completed in September 2010.

1.5 Consultation process

The EA team began the process of consulting the relevant stakeholders and beneficiaries of the project during its first environmental mission: meeting with officials in the Ministry of Ecology and Natural Resources (MENR); with local officials and WUA officers and members in a number of the project area raions; and with farmers and other beneficiaries of the project in the field. * The EA team then continued and expanded the consultation process with more formal, publicly announced meetings with stakeholders and beneficiaries on the findings and recommendations of the draft EA and EMMP in Baku and Zardab. The Baku consultation included government officials from the AIOJSC, the MENR, the MoA, and the MoH, as well as representatives from a number of national NGOs. The regional consultation in Zardab included a large number of local raion AIOJSC officials, WUA members from 15 project raions, and local NGOs.. The minutes of these meetings and lists of participants are contained in Annex A.

2. Environmental Policy, Legal & Institutional Framework

This section presents an overview of the policy, legal, and institutional framework for environmental management in Azerbaijan, particularly as it applies to the potential environmental and social impacts of the proposed project, and reviews the requirements and procedures for environmental assessment contained in Azerbaijani law.

2.1 Policy context

Azerbaijan’s national environmental policy has evolved over the years, beginning with the environmental policies of the former Soviet Union and following independence moving increasingly to a more nationally focused policy for Azerbaijan. Although there is no single statement of the national environmental policy as such, a number of national development policy documents articulate the country’s policy. The most relevant of these in the context of the proposed project is the National Environmental Action Plan (NEAP) of 1998. The NEAP represents one of the most recent statements of national environmental policy and identification of the country’s environmental priorities and intended actions. The Forward to the NEAP clearly states the GoA’s commitment to environmental reform (see Box 2.1).

Box 2.1

Government of Azerbaijan’s commitment to environmental reform

... At this stage of the country’s development the issue of natural resource management is of paramount importance for the nation. The disastrous environmental situation inherited from the former Soviet Union is affecting every aspect of the country’s life and presenting a clear threat to the health and well-being of its population.

The Government of Azerbaijan is committed to improving environmental conditions in the country, and it has included the environment as one of the primary concerns of the reform agenda. Unfortunately, economic, social, and institutional constraints inhibit the country’s ability to address the problems promptly and effectively. In order to mobilise and focus the scarce resources available, prioritise existing problems, and solve the most urgent issues, there was a need to develop a national environmental action program. ... (Forward to NEAP, 1998)

Among the priorities identified by the NEAP are two of relevance to the proposed project: (i) deteriorating water quality, especially drinking water, both in rural and urban areas, causing an increase in water-borne diseases, and (ii) loss of fertile agricultural land from erosion, salinisation, pollution with heavy metals and chemicals, and deteriorating irrigation systems (see Box 2.2). The GoA is committed to addressing the highest priorities identified by the NEAP and to incorporating the environmental recommendations made in the NEAP in sectoral policy and investment decisions in the agriculture, water supply and sanitation, and energy sectors.

Box 2.2

Key environmental problems and action priorities

Water quality. Water resources are critical for the country’s economy. Water resources are limited and losses during distribution are high – reaching 50 percent in agriculture, which accounts for 70 percent of total water usage. ...

Degradation of agricultural lands, loss of forestry and biodiversity. About half of the country’s land resources are being used for agriculture. Some 1.2 million ha is affected by high salinity; many soils are exhausted by years of poor agricultural practices and policies; and many areas are damaged by erosion. Loss of productive land in some locations is resulting in increased pressure on fragile lands and resources in other locations. ... (Executive summary, NEAP, 1998)

2.2 Legal/regulatory framework for environmental management/assessment

Azerbaijan inherited its basic legal framework for environment, public health and safety management from the former Soviet Union, but the period since independence has seen a burst of legislative activity in the environmental field. The new Constitution of the Republic of Azerbaijan itself includes the right to a healthy environment among the fundamental rights it guarantees its citizens.

2.2.1 Constitution. Adopted in 1995, the Constitution of the newly independent Republic of Azerbaijan recognises the importance of environmental protection among the principal human and civil rights and freedoms it establishes for the people of Azerbaijan. Article 39 guarantees the people’s right to live in a healthy environment, to acquire environmental information, and to secure compensation for environmental damage:

Every Person shall have the right to live in healthy environment. Everybody

shall have the right to collect information on environmental situation

and to get compensation for damage rendered to the health and property

due to the violation of ecological rights. (Article 39)

All subsequent environmental legislation is grounded in this constitutional right to the maintenance of environmental quality, to access to environmental information, and to environmental equity.

Again, the Constitution of the Azerbaijan Republic includes a number of articles that establish the national and international requirements to be applied to the WUAP:

· Article 39 – the right to live in healthy environment, to get information on the state of environment and to receive compensation for the damage caused to person or property because of the violation of environmental legislation shall be affirmed.

· Article 148.2 – international agreements that the Azerbaijan Republic joined shall be an integral part of the legislation system of the Azerbaijan Republic;

· Article 151 – in cases where national legislation contradicts international agreements, the provisions of the international agreements shall be applied (except for provisions of the Constitution of the Azerbaijan Republic and acts adopted by the referendum).

2.2.2 Legislation. Since its independence Azerbaijan has made important strides in enacting environmental legislation. * The last decade and a half saw the adoption of a number of significant environmental management and public health laws that cover the full range from environmental protection to natural resources management to public health and safety. The most relevant among these for the proposed irrigation project are the Law on environmental protection (1999), the Water code (1997), and the Law on amelioration and irrigation (1996).

Legislation on environmental protection in the Azerbaijan Republic is comprised of statutory acts which regulate relations between society and nature. Under nature protection legislation, a number of laws regulate the interventions for prevention of harmful effect of any activity to natural environment and organization of efficient use of nature, and preservation of natural balance for future generations.

Furthermore, there are effective codes of the Azerbaijan Republic on air, water and land, forest, etc. Clause 14 of the Constitution of Azerbaijan states that the natural resources belong to the Azerbaijan Republic with no damage to the rights and benefits of any physical or legal person. Under the legislation, the use of natural resources and every activity concerning environmental impact should be subject to state examination and regular control, and every activity feasibility study conducted should provide the norms, and procedures of nature protection, and also negative impact to the environment should be revealed and indicated.

The protection of natural resources and their efficient use are regulated with the main laws “On environmental protection”, “On specially protected natural areas and objects”, “On the animal kingdom” and “On environmental safety”.

In order to meet the water demand of the population, as well as the economic and agricultural sectors, and to regulate the protection of water resources and the use of water, water protection legislation was adopted, the “Water code”, and the laws “On water supply and waste water” and “On Amelioration and Irrigation” are effective.

2.2.2.1 Law on environmental protection, EIA handbook. In recent years Azerbaijan has enacted an array of new environmental protection laws, including a new Law on Environmental Protection that specifies relevant environmental assessment requirements. As a rule, these laws require further legal acts, decrees, and regulations, to permit effective implementation of their provisions. In most cases some but not all of these decrees and regulations have been promulgated.

Law on environmental protection (1999). Azerbaijan modernised its basic environmental protection framework with adoption of the Law on environmental protection in 1999. The stated purpose of the law is to ensure protection of the ecological balance, prevent harmful impacts from economic and other activities, conserve biological diversity, and promote rational utilisation of natural resources. The law recognises the state’s rights and responsibilities in the area of environmental protection, including setting national policy and strategic measures for its implementation, developing environmental norms and regulations, conducting environmental impact assessments, regulating the use of natural resources, monitoring environmental quality and natural resources, and establishing parks and protected areas. The law also identifies the rights and responsibilities of citizens, including living in an environment favourable to life and health, obtaining environmental information, receiving compensation for damage caused by environmental violations, using natural resources, participating in environmental decision-making, and bringing legal action for violation of environmental legislation.

Of particular interest in the context of the proposed project, the law authorises the establishment of environmental quality standards, discharge and emission limits to control the range of environmental impacts. Irrigation drainage discharges to receiving waters resulting from the rehabilitation works of the proposed project will have to comply with applicable discharge limits and water quality standards. * Also, the law identifies specific environmental requirements concerning agricultural and irrigation activities (Article 42) with which the proposed project will have to comply*:

... agricultural and irrigation systems shall incorporate pollution control systems, health buffer zones, and environmentally sound technologies and meet specific environmental requirements. They must be equipped with effective waste treatment and management systems, utilise efficient fuels and natural resources in an economical and efficient way, and include environmental safeguards. ... (Article 42, 1.)

Furthermore, the law sets out specific requirements with respect to official “environmental review” (Articles 50-58) for the purpose of complete assessment of the environmental impacts of “economic and other activities” undertaken in Azerbaijan. The infrastructure rehabilitation activities of the proposed project will have to comply with these review requirements:

Environmental review is defined as determination of the potential adverse impact of human economic activity on the environment and determination of the compliance of economic activity with environmental standards and requirements for prevention and forecasting purposes. ... (Article 50)

These provisions state the purpose and objectives of environmental review, including the suitability and quality of proposed environmental safeguards, and establish the basic principles on which such review is based, including comprehensive socio-environmental-economic assessment of impacts, the public’s right to good environmental conditions for health and well-being, and preservation of the ecological balance and biological diversity for present and future generations. The MoENR is responsible for conducting official environmental reviews. Officials and companies are held accountable under the law for complying with the decisions made in official environmental reviews.

As the primary environmental protection law governing “economic and other activities” in Azerbaijan, the requirements of the Law on environmental protection apply to the irrigation and drainage rehabilitation works of the proposed project. Thus, it will be necessary to comply with any decrees and implementing regulations adopted for execution of the law’s various provisions. Certainly the proposed project must comply with Article 42’s environmental requirements for agricultural and irrigation systems, as well as the environmental review requirements for the individual rehabilitation sub-projects financed by the project.

Handbook for the environmental impact assessment process in Azerbaijan (1996). Adopted in 1996 under authority of the Law on environmental protection of 1992, the EIA handbook continues in force under the new Law on environmental protection. The handbook establishes the GoA’s policies and procedures with respect to environmental assessment of “all development proposals, by the private as well as the public sector” that are likely to have environmental impacts. Specifically, the handbook details (i) the EIA process, i.e., the sequence of events, roles and responsibilities of applicants and GoA institutions, charges; (ii) the EIA document, i.e., its purpose and scope; (iii) public participation in the process; (iv) environmental impact review; and (v) the environmental review decision.

The requirements of the EIA handbook apply to the types of infrastructure rehabilitation to be financed by the proposed project. Therefore, some form of individual, site-specific environmental review may be required by the MoENR for each of the rehabilitation and improvement sub-projects undertaken under the infrastructure rehabilitation component of the proposed project. Because this present EA is based on the general areas and not on the specific farms or sites where most of the infrastructure works will take place, it does not provide the sort of site-specific preventive actions or mitigation measures required by the EIA handbook (or by the World Bank safeguard policy). For this reason, the EMMP contains an environmental screening and review process, designed to be consistent with the EIA handbook, to ensure that appropriate site-specific actions and measures are identified as proposed sites are considered for rehabilitation over the life of the project.

Instructions on the EIA process in Azerbaijan were outlined in the “Regulations on Environmental Impact Assessment in Azerbaijan”. The regulations present the main principles of the EIA process and the following:

· The EIA process, a sequence of implementation of works, also duties and responsibilities of applicants and authorities;

· Aim and coverage of EIA document;

· Public involvement in the process;

· Resolution of the environmental examination (After submission to the MENR, EIA document shall be checked by the group of experts); and

· Appeal process.

A summary of the instructions outlined in the instruction book is presented below in Table 1. As a result of approval of the EIA document by the MENR, the main principles and environmental and social standards, which should be followed by the organization, are determined.

Table 1: Summary of EIA Instructions

Scope and method of assessment - Scope of EIA research works for the design of construction works and general methods of assessment were depicted as follows. In conformity with the requirements for EIA in Azerbaijan, the following three methods of component assessment are used for gathering information on the current state of the environment at the project location:

· Physical Environment - This section includes the climate of the raion area where the project is located (weather temperature, humidity, atmosphere rainfall), change of the wind directions, degree of atmosphere weather pollution in the project site, studying geological and hydrogeological condition of the area, comments and information on tectonic developments and seismic characteristics.

· Ecological Environment - The research carried out in this respect covers information and review of environmental impact assessment, degree of the area pollution with hazardous substances and oil products, flora and fauna, also cultural and historical monuments in the project area.

· Socio-economic Environment - The socio-economic condition of the project area is studied, and information on nearby settlements and population census, characteristics of the existing structural plan of population, population growth on living settlements in the project site, and main employment of population is gathered and reviewed.

Assessment Plan - In accordance with the generally accepted guidelines, the EIA process arises from submission of preliminary justification materials in advance of project preparation. Here the purpose is to minimize the irreversible environmental impacts and to eradicate reversible impacts completely. The assessment plan includes the following main principles:

· Environmental impact assessment of construction works;

· Selection of main assessment criteria;

· Prediction of possible impact coverage;

· Assessment of impact coverage;

· Determination of respective regulatory measures;

· Extension of future research and investigations and preparation of monitoring programs.

2.2.2.2 Law on amelioration and irrigation, Water code, Construction norms and rules for reclamation systems and works.

Law on amelioration and irrigation (1996). The primary legal authority governing the irrigation and drainage infrastructure rehabilitation activities contained in the proposed project is the Law on amelioration and irrigation of 1996, which establishes the legal framework for activities in the field of land amelioration and irrigation. The law establishes the GoA’s institutional structure for management of the sector and defines its authority to include, among other things, setting national policy for the sector; implementing the national legislation; planning ameliorative and irrigation measures; establishing standards, norms and rules; and registering information on and monitoring irrigated and ameliorated lands.

To ensure compliance with appropriate standards and technical requirements, the law specifies GoA review (including environmental review) of amelioration and irrigation construction and rehabilitation projects:

State ecological examination in the field of amelioration and irrigation shall be carried out in accordance with the legislation of Azerbaijan Republic on environment protection and environmental review. (Article 18)

Furthermore, the law expressly requires that all ameliorative and irrigation measures comply with the requirements of environmental and natural resources legislation:

Ameliorative and irrigation measures should not result in deterioration

of environment conditions.

Ameliorative and irrigation measures shall be carried out following

requirements of land, water, forest legislation of Azerbaijan Republic

and the legislation of Azerbaijan Republic on environment protection,

on land lots, on flora and fauna. (Article 22)

The law also specifies that the use of water in amelioration and irrigation systems shall be governed by the water legislation (Water code). It authorises water charges to encourage efficiency and reimburse GoA expenditures for water supply. The proposed project will have to comply with all of the provisions of the Law on amelioration and irrigation, observing in particular the requirements of Articles 18 and 22 on environmental review and environmental legislation, including any regulations or decrees implementing these articles.

Water code (1997). Approved in 1997, the Water code provides the framework for regulating the protection and use of water resources in Azerbaijan, including surface and subsurface waters, boundary water bodies, and the Azerbaijan sector of the Caspian Sea. To this end, the code establishes the institutional arrangements for management of the use and protection of water resources. Specifically, the code authorises the GoA to determine policy for the use and protection of water resources, promulgate the rules for use of water resources, perform monitoring of water bodies, and provide for economic regulation (fees for use) of water resources. The code authorises “state ecological examination” (environmental assessment) of any projects for building and reconstruction of facilities affecting the condition of water resources. Further, it recognises different types of water uses, from agriculture to potable water to recreation and sport, and establishes the procedures for permitting these uses of water resources.

The code describes the rights and obligations of water users and details the requirements for the use of water resources as: potable and service water sources; health treatment, resort, recreation and sports; agriculture; industry and hydro-power production; transport; fishing and hunting; and specially protected water resources. (However, the code does not grant or define specific legal authority for WUAs and thus may require amendment to facilitate the full institutional development of WUAs envisioned under the IDSMIP component.) Furthermore, the code provides for the protection of water bodes from pollution, silting, and depletion, as well as for the establishment of water protective zones. For economic regulation of water use, the code authorises the charging of fees for the use of water. Finally, the code establishes liability for violating the water laws of the country and the right to compensation for damages caused by the violation of water legislation.

The requirements of the Water code and its implementing regulations are directly applicable to water resources management activities in the irrigation and drainage sector. Therefore, the proposed project will have to ensure that its components comply with the water use and protection requirements of the Water code. As noted above, the code may have to be strengthened in order to provide authority for the development of effective WUAs.

Construction norms and rules for reclamation systems and works (1986). Among the environmental protection regulations inherited from the former Soviet Union are a set of “Construction norms and rules” that apply to lands reclaimed for agricultural use. Dating from 1986, the rules specify fairly detailed measures to ensure that the design and construction of land reclamation and irrigation systems take into account environmental protection (e.g. reuse of waste and drainage waters, controls on discharge of water from reclamation systems, protection of the boundaries of preserves and wild life sanctuaries, conservation of flora and fauna). Further, the rules specifically address fish protection measures and mechanisms, forest shelterbelts, wildlife protection, anti-erosion works, and water protection requirements. *These norms and rules remain in effect in Azerbaijan and thus are applicable to the irrigation rehabilitation works under the proposed project.

2.2.2.3 Other applicable environmental and public health laws. In addition to the foregoing environmental and irrigation laws, Azerbaijan has a number of other environmental, public health and safety laws with requirements that potentially apply to the infrastructure rehabilitation activities of the proposed project. Specifically, the protected area and habitat requirements of the Law on specially protected natural areas and objects (2000) and the Law on wildlife (1999), as well as the public health requirements of the Law on protection of public health (1997), will have to be considered in any project decisions with respect to specific rehabilitation sub-projects.

2.2.3 International environmental conventions. Azerbaijan is party to a number of international environmental conventions. Of most relevance to the proposed project are the Conventions on biological diversity (Rio de Janeiro) and on wetlands of international importance (Ramsar), both of which Azerbaijan ratified in 2000. In ratifying these conventions and their implementing resolutions, the GoA committed to protecting its biodiversity and wetland resources and performing environmental assessments of projects that may affect these resources. This EA recommends measures to prevent/mitigate and monitor any potential impacts on biodiversity and wetlands located near project areas.

2.3 Involvement of Azerbaijan in International Cooperation in Environmental Policy

The Republic of Azerbaijan, in order to implement its policy of integrating into world cooperation, has joined tens of environmental conventions, agreements and treaties. These international conventions and agreements on environmental protection and nature use, to which Azerbaijan has become a party, comprise an integral part of the country’s of national ecological legal base. A special clause in all legislation adopted by the Azerbaijan Republic specifies that the procedures fixed with the international agreements shall be applied in cases where they are different from those foreseen with the national laws. Tables 1 and 2 in Annex B summarize information on the international and regional conventions that Azerbaijan has joined.

2.4 Institutional framework for environmental management and assessment

Public administration of enviornmental management in Azerbaijan with respect to nature protection and the use of natural resources is implemented by a number of GOA agencies and bodies. These agencies include the following:

· President of the Azerbaijan Republic

· Parliament of the Azerbaijan Republic

· Cabinet of Ministers of the Azerbaijan Republic

· Local government.

The main responsibility for implementing environmental legislation belongs to the Ministry of Ecology and Natural Resources (MENR). The MENR was established and its regulations were approved with the decree of the President of the Azerbaijan Republic in May 2001.

2.4.1 Ministry of Ecology and Natural Resources. Established by consolidating a number of national institutions dating from the Soviet period (i.e. the State Committee for Ecology, State Committee for Hydro-meteorology, Azerbaijan Fisheries Agency, Azerbaijan Forestry Agency, State Committee for Geology), the MoENR has the primary responsibility for environmental management in Azerbaijan, including pollution prevention and control, natural resources conservation and management, and environmental impact assessment. In this role, the MoENR implements and enforces the principal environmental laws of Azerbaijan (including the Laws on environmental protection, specially protected natural areas and objects, and wildlife mentioned above), setting national environmental policy, establishing environmental quality standards and emission limits, and managing a national network of protected natural areas.

The MENR maintains the state monitoring system for environment and natural resources, monitoring groundwater, soils, fauna, flora, mineral deposits, forestry and other resources. It is charged with ensuring proper oversight of soil salinity, swamping, and erosion prevention, as well as prevention of any other damage that may result from construction or excavation of minerals. It also manages an information system for environmental, hydro-meteorological and geological data. Through its Department of Environmental Expertise, the MENR administers the environmental impact assessment requirements of the EIA handbook. As mentioned above, the EIA handbook requirements apply to the irrigation infrastructure sub-projects to be financed by the WUAP; the full extent of which remains to be determined with the MENR. The EMMP establishes an environmental screening and review process for these sub-projects to ensure that they comply with the MENR’s EIA handbook requirements.

Based in Baku, the MENR works at the local level through the 30 district agencies it inherited from the State Committee for Ecology and coordinates its functions with other central government institutions (e.g. SAIC), local governments, municipalities and public funds. An extremely ambitious organizational structure has been proposed for the MENR (see Box 2.3), but it remains to be seen whether the new ministry can find the technical capacity, at both the national and district levels, to carry out its host of environmental management functions effectively.

Box 2.3

Organisational structure of the Ministry of Environment and Natural Resources

Given the wide range of its environmental management responsibilities, the organizational structure of the new MENR includes a complex array of management departments (e.g. natural resource use regulation), exploitation services (e.g. geological exploitation service), monitoring centres (e.g. Caspian ecological monitoring), and research institutes (e.g. forestry, fisheries, hydro-meteorological). The MoENR maintains a National Monitoring Service and has scientific stations at a number of sites, including Lake Ag gel, throughout the country. Once the institutional capacity has been established at the regional level, the bulk of MoENR’s work will be executed by its Regional departments on Environmental Protection and Use of Natural Resources.

2.4.2 Other Regulatory Bodies in the Area of Nature Protection and Use of Natural Resources

Other ministries and committees involved in environmental administration have the following functions:

· Ministry of Emergency Situations (MES) – bears responsibility for implementation of technical safety rules in construction, mine and industrial works. In case of an emergency situation or catastrophe, or natural disassters, in addition to the MENR, the State Oil Company of the Azerbaijan Republic and other respective ministries, the MES shall also be notified;

· Ministry of Health – has control over sanitary epidemiological situations in the country and safeguards healthcare in the work place;

· Ministry of Industry and Energy – bears responsibility for oil and gas operations, sale of oil and oil products, and effective use of energy resources of Azerbaijan;

· Amelioration and Agricultural Water (OJSC) – has control over water use, gives permission for the use of surface water and fixes the payments for water use;

· State Town-Building and Architecture Committee – regulates the implementation of design and construction procedures and standards;

· State Land and Mapping Committee – implements the following in its sector:

· Sstate policy on effective use of plots of land, protection and restoration of land fertility;

· Cadastre and monitoring of the State Lands;

· State policy on cartography arrangements.

· State Custom Committee – prevents the illegal export of environmentally dangerous, unique and valuable goods, also endangered species and flora and fauna samples entered in the Red Book of the Azerbaijan Republic.

2.4.3 Municipalities. Azerbaijan is in the process of strengthening local governance at the municipality level after a history of extremely weak local institutions. This history is reflected in the weakness of the traditional environmental services and infrastructure provided by the municipalities (e.g. water supply and sanitation, waste management). In most cases municipal water supply and sanitation services do not meet the minimum needs of the local population, but the municipalities lack the resources to address this problem. Chronically underfunded, municipalities continue to rely on state budget transfers as their principal source of municipal revenue, followed by land and property taxes and rental and/or sale of municipal land. Under the current political framework and economic conditions this situation is unlikely to change in the near term.

The GoA initiated a process of decentralisation to address the problem of deteriorating municipal infrastructure. With a new legal framework established and the transfer of assets arranged, local elections were held in 1999. Some 2 669 municipalities were created and given responsibility for managing local public infrastructure. This decentralisation process, however, has not produced the intended results. The chronic lack of resources at the municipal level, the limited understanding of their responsibilities by municipal officials, and the partial transfer of assets to the municipalities have all left the state of municipal environmental services pretty poor. These problems are further exacerbated by the apparent absence of civic culture and community initiative and by the presence of pervasive corruption.

2.5 Environmental Monitoring

As described above, the MENR is the primary GOA institution charged with environmental monitoring in Azerbaijan. The main goal of its environmental monitoring is to organize natural protection measures and environmental safety. Environmental monitoring covers the following: (1) All technological processes implemented during construction works (i.e. preparation works, industrial waste management, operation of hydraulic structures) and (2) Composition of the natural enviornment (i.e. atmosphere weather, surface water, ground water, plant-soil cover).

The implementation of environmental monitoring is a complex matter and is carried out in accordance with the agreement made by the client with the specialized enterprises in this field. Environmental aspects of the enterprise’s work are regulated: (1) Construction supervision under accepted guidelines and (2) Keeping records of water resources and waste (i.e. get permission for use of water resources, agree with the supervisory bodies on creation and management of soild wastes, submit the statistical reports on air emissions, water use and waste water and hazardous wastes to the relevant organizations of the MENR; and organize analytical (laboratory) control over sources of man-made pollutants.

The main goal of the environmental monitoring is to organize control over observation of environmental standards (air, water, land). Environmental monitoring is comprised of three main components: (1) monitoring of production; (2) monitoring of environment; and (3) additional research and testing-methodological works on environmental supervision. These components provide for the preservation and protection of the environment in the project area. Table 2 describes the structure of each of these components.

Table 2: Structure of Environmental Monitoring

Monitoring of production

Monitoring of environment

Additional research

1. Control on technology and pollutants

1. Water quality control

1. Ichthyological-biological research, definition of bioindicators of water quality

2. Control on water resources

2. Hydrological monitoring

2. Selection of methodologies for soil cultivation

3. Quality control on roads and transportation of materials

3. The vegetative cover and monitoring of soil

3. Improvement of technologies and construction works, preparation of waste management and utilization

4. Control on waste water

4. Monitoring of water biota, bottom sedimentation

4. Additional engineering-environmental research

5. Control on observation of maintenance procedures, use of dangerous substances, fuel and lubricants.

5. Monitoring of fauna, flora and ichthyofauna

6. Control on transportation and rendering harmless pollutants

2.6 Regional processes - European Union

Relations between the European Union and Azerbaijan on environmental protection are primarily based on the EU-Azerbaijan Agreement on Partnership and Cooperation (APC) and European Neighbourhood Policy (ENP). APC became effective in 1999. In conformity with Clause 43 of the agreement: “Azerbaijan Republic shall demonstrate efforts in order to provide regular coordination of its legislation with the legislation of the Union”. Under the APC, the EU proposed some recommendations for conforming Azerbaijan’s environmental legislation to the EU regulations. Based on these recommendations, considering institutional potential and costs, a draft version of the national program emphasizing a universal approach to adding amendments and additions to the national legislation was developed.

Since 2004, Azerbaijan has been a part of the ENP of the European Union. The present National Indicative Program on ENP implementation includes an obligation to support legislative reforms in environmental protection, which includes:

· Conforming Azerbaijan’s legislation and standards on environmental protection to EU legislation and standards;

· Strengthening the management potential of environmental protection through a complex permit system;

· Improving environmental impact assessment procedures and structures; and

· Working out environmental protection plan (waste and water resources management, air pollution etc.).

Environment for Europe

“Environment for Europe” is the partnership of member states and other organizations under Azerbaijan and United Nations Organizations European Economic Commission (UNECE) region. With the guidance and support of “Environment for Europe” partnership, a number of ministerial conferences were held on environmental protection and consequently UNECE conventions were established.

3. Key Natural Parameters of Azerbaijan

3.1 Natural setting

Bold relief, recurring seismic activity and a multitude of active mud volcanoes, all imply that Azerbaijan is in the throes of powerful internal (tectonic) and external (denudation) natural agents. This section briefly presents the geological processes that have shaped Azerbaijan’s salient geographic features, as well as its climatic diversity; soil types; distribution, flow regimes and quality of surface water, and the occurrence and quality of its groundwater resources. To set the backdrop for the project’s target areas, emphasis is placed on the Kura-Araz basin and the north-eastern foothills of the Greater Caucasus.

3.1.1 Geology and geomorphology[footnoteRef:4], [footnoteRef:5] Azerbaijan is characterised by large elevation differences across rather short distances: only 70 km separate Mount Bazardyuzu, Azerbaijan’s highest peak (4 466 m above msl) from its central plains to the south (elevation 0) or the Caspian Sea’s shoreline to the north-east (27 m below msl). Mountains in excess of 2 500 m, while comprising only 3.5 percent of the total land area, play a crucial role in nourishing Azerbaijan’s water resources. [4: SCP ESIA, Azerbaijan, draft for disclosure, Geology and Soils Baseline Report, May 2002 ] [5: State of the Environment Azrbaijan, a joint UNEP/GTZ web site: http://www.grida.no/enrin/htmls/azer/soe/ecology/html/countryprofile_environmental_and_geographical_charastics.html]

Azerbaijan consists of four major physiographic units: (i) the Greater Caucasus Mountains to the north, crowned by the country’s highest peak. Their south-eastern extension comprises the Apsheron Peninsula, a geologically active, low elevation (up to 350 m) protrusion into the Caspian Sea that divides it into a northern, relatively shallow basin, and a southern, deep basin. (ii) The Lesser Caucasus Mountains, with maximum elevation of 3 740 m, and the (iii) Talysh Mountains to the south. These three mountain chains enclose (iv) the Kura-Araz Plain, the main intermontane lowlands of eastern Transcaucasia. A significant portion of this extensive lowland, or about 18 percent of the country’s total area, lies below mean sea level.

The Kura-Araz Lowland is an element of the vast Aral-Caspian depression. It extends across 250 km from Mingachevir Reservoir in the west to the Caspian Sea in the east and some 150 km between the foothills of the Greater and Lesser Caucasus. Gradually opening up and gently sloping to the south-east, this flat alluvial plain drained and is still being aggraded by the Kura-Araz Rivers and their tributaries. The Kura-Araz Lowland is divided from north to south into the Shirvan steppe on the right bank of the Kura, the Mil-Karabakh steppe between the Kura and the Araz, and the Mugan steppe, south of the Araz. The shallow, brackish Sarisu and Ag-Gel lakes occupy mild depressions, ‘windows’ to the shallow groundwater table.

The Caucasus Mountains and the intervening Kura-Araz depression were formed during the Alpine-Himalayan Mountain-building episode. Starting in the Late Miocene Period, about five million years ago, enormous compressive forces resulting from the collision of the Eurasian and the African and Indian continental plates formed a series of complex folds and reverse faults. Older (Jurassic and Cretaceous), gigantic rock slivers were thrust over younger (Pliocene) ones to form the uplifted Greater Caucasus ranges. Associated fault zones along the margins of the uplifted area and its extension into the Caspian, have since become the focus of (i) recent intense seismic activity (e.g. the November 2000 earthquake that damaged Baku’s water treatment facilities) and (ii) neotectonic subsidence of the Apsheron Basin by several hundred metres.

During the peak of the orogenic activity in the Pliocene period, the shoreline of the ancient Aral-Caspian Sea receded from the Kura-Araz depression, transforming it into a continental basin. This basin became a sink for massive terrigenous sedimentation fed by intense erosive denudation of the Caucasus Mountains. As a result, the Kura River Plain has since accumulated some 7-8.4 m of continental sediments. Inclined piedmont plains, consisting of fluvio-glacial deposits that have been dumped at the foot of the Caucasus ranges, separate the Kura and Araz River plains from the adjacent mountains. Deposits of similar nature comprise the north-eastern foothills of the Greater Caucasus, between the Quba-Qusar area and the Caspian Sea. The alluvial plain of the Kura is still accreting due to the high sediment loads of the fast-running rivers that drain the Caucasus Mountains. The intense erosion is driven by steep slopes, torrential rainstorms, seasonally concentrated snowmelt-generated river flows, flash floods, limited vegetation cover and fine, erodible soils. Consequently, the sediment loads of the rivers that drain the Greater Caucasus are among the highest of any rivers in the world.

3.1.2 Hydrogeology[footnoteRef:6] The thick sequence of sediments that infills the Kura-Araz Lowland consist of three sediment types. To the west and in proximity to the mountains, outwash/alluvial fan sediments dominate, which were eroded and fluvially transported from the Lesser and Greater Caucasus Mountains. Thick layers of poorly sorted sands, gravels and cobbles are inter-layered with silty/clayey sediments. Transported by high-energy, steep river flows fed by seasonal firn and snow thaws, these sediments were dumped as the streams entered the plains, and accumulated in a sequence of contiguous alluvial fans. Towards the Caspian Sea in the east, marine sediments of the predecessor Caspian-Aral Sea become predominant and recent Kura-River alluvial deposits overlie the two other types. [6: SCP ESIA, Azerbaijan, draft for disclosure, op. cit. ]

Towards the western end of the intermontane basin and along the foothills of the Greater and Lesser Caucasus, the proluvial/alluvial fan sediments are dominated by coarse-grained components, forming interconnected aquifers of high hydraulic conductivity and good quality water. Farther away from the Caucasus foothills towards the centre of the basin, coarse-grained sediments become subordinate to and intercalated with low permeability marine deposits of the extinct Caspian-Aral Sea. As a result, individual aquifer horizons underneath much of the Kura-Araz Plains have low hydraulic conductivity and a limited degree of interconnectivity. The groundwater of these aquifers typically contains moderate to high amounts of dissolved salts.

At the north-eastern foothills of the Greater Caucasus, alluvial fan deposits, consisting of coarse-grained, high-energy flow continental sediments, alternate with clay horizons deposited under low-flow conditions and with marine sediments deposited by the predecessor Aral-Caspian Sea. The proportion of fine-grained marine deposits increases towards the Caspian shoreline. The alternating low and high permeability rock units give rise to half a dozen aquifer horizons.

3.1.3 Climate Azerbaijan’s climate is shaped by the country’s remoteness from moderating oceanic influence, the extreme relief, and the disposition to the prevailing winds. The distribution of the various climate zones – semi-arid, dry subtropical, wet subtropical, temperate, and Alpine - is a function of the altitude and the proximity to the Caspian Sea. Dry subtropical to semi-arid steppe climate characterises the Kura-Araz Lowlands and the Apsheron Peninsula. Wet subtropical climate is restricted to the south Talysh Mountains and foothills and the adjacent Lankaran depression. Temperate climate belts of dry, warm-dry, warm-wet and cool zones dominate successively higher elevations of the Greater and Lesser Caucasus Mountain slopes. Finally, Alpine and sub-Alpine conditions prevail at the high altitudes of the Greater and Lesser Caucasus.

The average annual temperature across Azerbaijan varies between 14 °C in the lowlands and 0 °C and below in the highlands, a large range that is typical of continental climate. The average July temperatures are 25-27 °C in the lowlands and 5 °C in the highlands. Absolute maximum and minimum temperatures reach 43 C (Nakhchivan depression) and minus 30 °C (in the highlands), respectively. The prevailing winds are northern (on the Apsheron peninsula), north-west/south-west (Kura-Araz Lowlands), and western (Lankaran depression). Precipitation is characterised by large spatial, seasonal, and inter-annual variability. Average annual rainfall ranges from less than 200 mm at the southern coast of the Apsheron Peninsula, through 300-900 mm in the foothills and lower mountainous zones, 1 000-1 300 mm on the southern slope of the Greater Caucasus, and up to 1 200-1 600 mm in Lankaran and Talysh[footnoteRef:7]. [7: Social-Ecological Center "EcoSphere" (Azerbaijan) and the Association of Environmental Protection of Georgia "The Earth in XXI century": Azerbaijan-Georgia Regional Ecological Portal: http://ecocaucasus.org/en/glav.htm]

The climate of Azerbaijan’s cultivated lowlands and foothills is classified as Middle Latitude Steppe to Semi-Arid, with at least one month below freezing average temperatures. The large annual sun radiation balance of between 2 100-2 300 MJ/m2 and the great excess of potential evapotranspiration (PE) over precipitation make irrigation an imperative for reliable crop production. The only agriculture possible without irrigation is low intensity livestock production on natural pasture severely limited by low rainfall.

Table 3.1 presents average annual climate parameters, representing the Kura-Araz Plains (Imishli), the foothills of the Greater Caucasus (Khachmaz). Comparing the meteorological data of the north-eastern foothills of the Greater Caucasus (Khachmaz[footnoteRef:8]; about 75 m above msl) with that of the Mill Mugan Plains above the confluence of the Kura and Araz Rivers (Imishli; elevation: 5 m below msl), suggests the following. Both areas are characterised as semi-steppe, but in the Khachmaz area the hot season temperatures are slightly cooler and winter temperatures slightly colder than in the Imishli area. The Imishli area is characterised by hot, dry summers and mild, sub-humid winters, with a longer growing season. The humidity in the Khachmaz area is higher as a result of its proximity to the Caspian Sea, as are wind velocities. Annual precipitation values are rather similar in both areas; however, in Khachmaz about 40 percent of the mean annual total occurs during the growing season (spring and summer) and a maximum in the fall, while in Imishli slightly over half of the rainfall occurs in the main growing season between April and October. Finally, the average annual PE in Imishli is about 30 percent higher than in Khachmaz. During the main growing season, the PE in Imishli on average will exceed effective rainfall by a factor of five or more[footnoteRef:9]. [8: Based on measurements between 1988-1997; EA and monitoring, Annex A.7, op. cit.] [9: Caspian Environmental Program, Caspian Regional Thematic Centre (CRTC) for Integrated Transboundary Coastal Area Management and Planning: http://www.caspianenvironment.org/itcamp/azeri.htm; and PCD, March 2002.]

Azerbaijan’s physiographic and climatologic diversity gives rise to nine different agro-climatic zones. The availability of several significant rivers offers the potential for highly diversified irrigated agriculture. Representative agro-climatic zones include, among others, the (i) humid sub-tropical zone along the southern coastal plain of the Caspian, with paddy rice and tea plantations; (ii) hot and dry Kura-Araz Plains where cereals (wheat and barely), cotton, fodder (alfalfa and maze), water melons and pomegranates are prevalent, and livestock benefits from lush grazing grounds; and (iii) sub-humid, chilly Caucasus foothills, where fruit orchards (apples, pears, quince, peaches, cherries), vineyards, and walnuts prevail. In addition, vegetables, high value-added crops, are cultivated wherever there is an access to a steady supply of good-quality irrigation water.

Table 3.1 Average annual climate parameters,

three representative weather stations

Parameter\District

Imishli

Khachmaz

Average Temperature (C)

15.2

12.6

Average Temp. July (C)

27.2

24.6

Average Temp. Jan. (C)

3.6

-2.2

Maximum Temp. (C)

42

42

Minimum Temp. (C)

-26

-28

Number of frost-free days

240-260

210-230

Precipitation (mm)

287*

300

Annual relative humidity, winter (%)

73-76

82-86

Annual relative humidity, summer (%)

56-58

65-75

Annual average wind velocity (m/s)

1.4

2.3

Average annual PE (mm)

1 000

708

* A recent ten-year average shows a range from 186-354 mm.

** Lowlands; high mountains average 660 mm.

N/D: No data.

3.1.4 Climate Change Azerbaijan is well aware of the potential impacts of climate change on its environment, particularly its water resources, agriculture and forests. In its Initial National Communication on Climate Change (2001), the GOA estimated, based on a trend analysis of 100 years of data from the State Committee on Hydrometeorology, that the air temperature has increased by 0.5-0.6°C. Moreover, between 1960 and 1990 the warming level was 0.3-0.6°C and precipitation decreased by 10 percent. An assessment of future climatic trends, using IPCC recommended models, estimates warming by the year 2100 to be 2°C with precipitation stable or insignificantly below the norm. The same report included the following analysis of climate impacts on water resources, agriculture, forest ecosystems, and the coastal Caspian Sea:

· Water resources. With an increase in air temperature of 2.0-4.5°C, a reduction of water resources in the rivers of Azerbaijan is expected to be in the range of 15-20 percent. With the current water deficiency of 3.8 km3, by the middle of the 21st century it will constitute 9.5-11.5 km3. The GOA proposed the following measures as mitigation: improvement of water resources management system, regulation of river flow, increase of irrigation systems efficiency by 75 percent and reconstruction of drainage systems, applying of water-saving irrigation technologies, reuse of treated drainage water, and setting up shoreline plantations along water reservoirs.

· Agriculture. With the warming of climate, an increase in evaporation is expected to be up to 30-35 percent, which will result in the decline in natural humidification and moisture deficiency, with the humidification zones being shifted by 300 m to mountains. Such conditions will further aggravate due to the reduction of river water resources. The recurrence of drought and dry winds will increase, especially in the Kura-Araz lowland. Dramatic consequences are expected at winter pastures. As mitigation measures, the GOA proposed: introduction and cultivation of highly productive crops, optimization of planting location and structure of crops, introduction of soil and water-saving technologies, provision of drainage for irrigated lands, melioration and recultivation of salinized soils, setting of shelterbelt forests, and prevention of desertification processes.

· Forest ecosystems. Climate change will result in a considerable increase in the upper climatic boundary of the forest cover on the Greater and Lesser Caucasus. However, due to existing anthropogenic impacts, any decrease of which would not be expected in the future, most probably the upper boundary will remain at the current levels. In the Talish Mountains, a decrease of the upper boundary is expected to be 50-200 m, with up to 300 m in some places. The lower boundary of forest will rise up to 100-200 m. As a result, the share of different draught-resistant tree and bush species will increase. The density and estimated productivity of the forests will also decrease and, as a result, wood stocks will be reduced. The GOA proposed mitigation measures involving afforestation of eroded mountain slopes, afforestation and binding of sands, rehabilitation of near-Kura tugay forests, etc.

· Coastal area of the Caspian Sea. The recent rise of the Caspian Sea level by 250 cm is also associated with climate change. Currently, 48.5 thousand ha of coastal lands have been flooded, with total damage to the economy as a result of flooding as of 1995 of USD 2.2 billion. By the years 2020-2040 the increase in sea level is expected to be 120-150 cm. At that level, potential losses of land will amount to 130-160 thousand ha, and damage to the social and economic sectors is estimated at USD 4.1 billion. Prevention of the expected damage is possible through measures on protection of settlements, industrial and infrastructure facilities in the zone of potential sea impact, as well as improvement of environmental conditions in the coastal area.

The EA recognizes that a number of the measures identified above in the analysis of climate impacts on water resources and agriculture are relevant to the proposed project. In fact, the EA signals the fact that the proposed project incorporates a number of the measures identified above (e.g. improved water resources management, increases in irrigation system efficiency, rehabilitation of drainage systems, melioration and recultivation of salinized soils) and includes them in the analysis of environmental impacts, preventive actions, and mitigation measures in Table 5.1 below, which will be managed and monitored as stated in the EMMP in Section 6.

3.1.5 Soils[footnoteRef:10] The distribution of Azerbaijan’s soils is congruent with its topographic and climate zoning. Grey-brown saline and chestnut-coloured soils predominate in the semi-desert areas of the Apsheron peninsula and Gobustan. Greyish-meadow, greyish saline, and saline soils prevail in the flat and poorly drained semi-desert belt of the Shollar and Kura lowlands. Mountain-woody greyish-brown and brown soils prevail in the semi-steppe (woody-steppe) belt in the northeastern foothills of the Greater Caucasus and Talysh Mountains. Finally, the sub-alpine to alpine belt of the high elevations of the Caucasus Mountains typically contains mountain-meadow (turf and peat) and skeletal, stony soils. * [10: Caspian CRTC, op. cit.]

3.1.6 Surface and subsurface water Azerbaijan, a former Soviet Union (FSU) country, still employs water resources computation practices that go back to the Soviet era. These practices have important bearing on the degree of confidence that can be placed in the water resources data[footnoteRef:11]. 3- is deleted First, as a result of the large and protracted withdrawals, the assessment of surface water runoff is made difficult by the absence of chronological series of natural flow measurements. Indeed, most of the available flow data relate to measurement of actual runoff rather than natural flow. In addition, runoff data are frequently conflicting, a reflection of inconsistent measurement points along a watercourse that are either upstream or downstream from other measurement points that are separated by intervening tributary inflow and/or canal abstractions and large natural inter-annual variability of runoff, typical of arid to semi-arid regions. Furthermore, in semi-arid areas like Azerbaijan’s, complex interrelation between surface water and groundwater makes it difficult to assess the extent of their overlap. Finally, in the computation of groundwater, a distinction is usually made between groundwater resources (the average annual recharge of the aquifers), and extractable groundwater (computed on the basis of aquifer productivity and a theoretical network of wells). Subject to the cited practices, most of the references on groundwater rely on an estimate of extractable groundwater, which is usually less than the groundwater resources. [11: Irrigation in the Countries of the Former Soviet Union in Figures, Food and Agriculture Organisation of the United Nations, Rome, 1997]

Further, data reliability is hampered by two additional factors[footnoteRef:12]: there is a limited database pertaining to the post-Soviet period, because the hydrometric network in Azerbaijan was severely curtailed after 1991-1992. Consequently, the older data would not reflect any subsequent climate variations, basin land-use changes, channel geometry shifts, and local river channel interference (e.g. riverbed pebble mining). Little information is available on hydrological and monitoring techniques adopted, such as sampling conditions, constraints, timing and frequency, analytical methods, precision limits and data collection problems. The limited amount of data collected is not assessed, laboratory equipment is not calibrated, neither quality assurance nor quality control is carried out and there is no reporting. The fact that the data are not converted into forms that would be helpful for managers and decision-makers results in inadequate government support for monitoring. This, in turn, adversely impacts the average age of the laboratory equipment[footnoteRef:13]. As a result, some data may be of questionable value, and data inconsistencies are quite common. [12: Section 1.4, SCP ESIA, Draft for Disclosure, op. cit.] [13: Joint River Management Programme on Monitoring and Assessment of Water Quality on Transboundary Rivers: Kura Basin Report. http://www.jointrivers.org/eng/docs/inception/kura/main/php]

Surface water Azerbaijan’s water resources are unevenly distributed, both spatially and temporally, with only about 29 percent of the total surface resources originating in Azerbaijan. The average annual amount of surface flow is about 33.1 billion m3, but in extremely arid years it may diminish down to 20.7 billion m3. Both the large inter-annual and intra-annual fluctuations have necessitated the construction of large storage reservoirs.

Azerbaijan’s rivers can be divided into three groups:

· Rivers of western and central Azerbaijan: the Kura River with its main tributaries - Araz, Alazani and Iori;

· Rivers of northeastern Azerbaijan, flowing from the Greater Caucasus directly into the Middle Caspian Sea: primarily the Samur, Qusarchay, Quruchay, Qudyalchay, Agchay, Qarachay, Chagachuqchay, and Velvelichay.

· Rivers of south-eastern Azerbaijan, flowing from the Talysh Mountains directly into the South Caspian Sea (these will not be further discussed).

The Kura-Araz Rivers With a total length of more than 1 500 km and a catchment basin of over 188 000 km2, the Kura is the largest waterway in Transcaucasia. The Kura originates in Turkey, at an elevation of 2 741 m above msl, and flows through Georgia before crossing into Azerbaijan. Average flow volume figures are inconsistent, apparently representing averages of measurements across different time sequences. According to one source, the average flow below its confluence with the Araz is 908 m3/s (26.8 billion m3 annually), or over 90 percent of Azerbaijan’s total average surface-flow (see hydrograph in Table 3.2). According to data spanning measurements that go back to the early 20th century,* the average annual flow near the Mingachevir Reservoir is 401 m3/s. In that area, the highest and lowest flows of the Kura were reported as 2 420 m3/s and 61 m3/s, respectively. Average annual flow of the Kura near Sabirabad, just below its confluence with the Araz, is 590 m3/s. The Kura’s annual flow is the highest in the spring (59-69 percent of the total), with lower and sub-equal flows in the summer (10-14 percent), fall (12-16 percent) and winter (9-15 percent). This flow regime reflects the predominance of snow melt water from the Greater and Lesser Caucasus.

Table 3.2. Monthly hydrographs of Azerbaijan’s main rivers (m3/sec[footnoteRef:14]) [14: Samur at…, 1947-1992 average; Araz at Saatli, 1971-1980 average; Kura above confluence at Mollaken, 1955-1979 average; Kura below confluence at Surra (NE of Sabirabad), 1953-1980 average.]

River\Month

I

II

III

IV

V

VI

VII

VIII

IX

X

XI

XII

Average

Samur

21.9

20.4

23.5

52

117

167

135

79.9

59.9

48.7

35.9

27.2

65.7

Kura, above*

417

432

280

310

332

396

321

279

281

279

198

383

325.7

Kura, below**

570

578

572

700

794

663

402

341

378

329

431

523

523.4

Araz

119

144

172

253

299

235

87

67

84.3

61.5

86.1

102

142.5

* Above confluence with Araz

** Below confluence with Araz

The Kura’s average suspended sediment concentrations (SSC) and sediment loads (SSL) are high, comparable to those of other glacial/snowmelt-fed rivers. Mean annual SSC values for the Great Caucasus rivers are ten times those of the Lesser Caucasus systems, the highest being for Girdemanchay River (0.52 g/l) and Geokchay River (0.48 g/l), two of the Kura’s left bank tributaries. Suspended sediment transport is highly seasonal, with peak fluxes in the high-flow period between March and June. In its mid-course, a cascade of two regulating dams and associated reservoirs, the Shamhkir and Mingachevir, causes the River to dump much of its annual 26-28 million tons of suspended alluvial load. Consequently, the capacity of the Mingechevir Reservoir that removes approximately 70 percent of the sediment discharge from the Kura River has diminished from an original 16 km3 (when built in 1953), to 14.5 km3 in 1982.

The total ionic content of the Kura waters shows considerable seasonal variability. Two mid-summer measurements of total dissolved matter[footnoteRef:15] yielded between 0.85 and 0.95 g/l, rendering the water slightly brackish but still suitable for irrigation of most crops. A series of early winter (mid-November 1998) measurements yielded better water quality values, possibly due to dilution by seasonal runoff. The total dissolved matter ranged between 0.45-0.48 g/l at three measurement points between the town of Yevlakh and Sabirabad, and between 0.51- 0.56 g/l at four measurement points below the confluence with the Araz and down to Naftacala, close to the Kura’s discharge into the Caspian Sea. A sequence of measurements downstream at Salyan demonstrates a persistent increase in ionic content, from 0.42 g/l in the late 1940s, up to 1.26 g/l in the late 1980s. This apparently represents a cumulative trend of mineralised, irrigation return flows discharged into the Kura along its course. [15: Water analyses results of field trip, 26-27 July, 1999; Annex A25, EA and Monitoring in the Project Areas of the SAC and MMMC Drain, Final Report, CES, Consulting Engineers Salzgitter GmbH, 3/2000. ]

The 1 072 km-long Araz River is the second largest waterway. Flow data are again inconsistent: one source cites an average flow of 138 m3/s at Saatli (or 4.35 m3 billion/year)[footnoteRef:16] (see hydrograph in Table 3.2), while another cites 290 m3/s not far downstream near Sabirabad, close to its confluence with the Kura. This southern tributary of the Kura, with a catchment area of about 102 000 km2, originates at an elevation of 2,600m on the slopes of the Bingel-Dag ridges in Turkey. Along most of its route the Araz marks the international boundary between Azerbaijan and Armenia on the north and Turkey and Iran to the south. The Araz is one of the most turbid rivers in the world; on average it carries 2.5 g/l of suspended particles or an annual total of about 18 million tons. Its arid watershed and outcrops of soluble rocks contribute to a high level of dissolved salts; mineral content values of 0.87 and 1.57 g/l were recorded in November 2001 in the Fizuli raion several tens of kilometres upstream from the Barahmtepe and in Sabirabad, respectively. [16: Average for 1971-1980. Table 20, Quality of Surface Water and Efficiency of Water Safety Activities in the Jurisdiction of the Azerbaijan State Committee of Hydrometeorology in 1987, Soviet Union Committee for Hydrometeorology and Environmental Control, Central Hydrochemical Laboratory of SAIC, Baku, 1988. ]

The Samur, Qudyalchay and Velvelichay Rivers These rivers supply the Samur-Apsheron Canal (SAC). Five additional rivers, all discharging ultimately into the Caspian Sea, cross that portion of the SAC that is slated for restoration under the RIDIP. Draining the north-eastern slopes of the Greater Caucasus, they all share a common hydrological regime. During the spring and early summer, glacial, firn and snow melt at their high catchment areas feed peak flow that provides about 40 percent of the total annual recharge. Surface runoff, with maxima during spring and fall, contribute about 20 percent of the total recharge, and the remaining 40 percent is groundwater recharge base flow, of particular importance in the coastal area. The average annual flow of the Samur River (catchment area of 5 000 km2) are, according to different sources, 1.4 or 2.07 billion m3, and that of the seven other rivers combined -- about 657 million m3 (see hydrograph in Table 3.3).

Table 3.3. Long-term average monthly natural runoff of rivers

on the north-east slope of the Greater Caucasus (m3/s) (1961-1992)[footnoteRef:17] [17: Table 2.3, EA and Monitoring, op.cit. For detailed information, see RIIDA II Feasibility Study, Annexes 1.1 – 1.8.]

River

I

II

III

IV

V

VI

VII

VIII

IX

X

XI

XII

Average

Samur1

22.2

20.3

23.8

51.2

115.7

163.1

133.2

77.2

56.4

47.3

35.7

27.0

64.4

Qusarchay2

1.8

1.8

2.0

3.6

6.9

11.2

11.7

7.3

4.8

3.4

2.5

2.0

4.9

Quruchay3

0.4

0.4

0.7

1.4

1.7

1.5

0.9

0.7

0.8

0.7

0.6

0.5

0.9

Qudyalchay4

2.8

2.8

3.4

6.4

11.8

16.0

11.6

7.6

6.0

5.6

4.6

3.4

6.8

Agchay5

0.6

0.7

1.7

2.8

2.3

2.1

1.0

0.8

1.3

1.4

1.1

0.7

1.4

Qarachay6

1.0

1.0

1.2

2.1

4.0

6.0

4.4

2.4

2.3

1.9

1.5

1.2

2.4

Chagachuqchay7

0.5

0.5

1.3

2.5

2.8

1.9

0.8

0.4

0.6

0.8

0.8

0.6

1.1

Velvelichay8

1.5

1.6

3.1

7.1

10.0

8.3

5.1

3.3

3.1

3.1

2.5

1.9

4.2

Calculation Points: 1- u/s Weir CP1; 2 - CP3; 3 - CP4; 4 – CP5/6; 5 – CP7; 6 – CP8; 7 – CP-9; 8 – CP11.

All the area’s rivers transport periodically heavy sediment loads. At the headworks of the Samur River, the sediment load increases from 0.37 g/l in March to 5.4 g/l in July, then decreases to 1.6 g/l in October. The total annual suspended load ranges between 2.6 and 3.6-million m3. In the absence of functioning desilting installations on the SAC system, much of the silt settles in the Jeiranbatan Reservoir, Baku’s primary water storage, decreasing its live storage by 1 percent annually[footnoteRef:18]. The low total ionic contents of these rivers, between 0.170 and 0.504 g/l, make them suitable for use as a potable water source as well as for irrigation of all crops. [18: RIDIP II Feasibility Study, op. cit., sections 3.1.4 and 3.2.2.7]

The hydrograph presented in Figure 3.1 clearly shows that the peak flow of the Araz is about one month earlier (May) than that of the Kura and Samur (June). This probably reflects an earlier seasonal snowmelt on the Lesser Caucasus Mountains, compared to a later snow and firn melt on the higher-elevation Greater Caucasus Mountains. The phased peak flow regime of the Kura-Araz serves to extend the temporal availability of irrigation water in the eastern lowlands, below the confluence