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AZERSU JOINT STOCK COMPANY National Water Supply and Sanitation Project II AGSTAFA REGION WATER SUPPLY AND SEWER SYSTEM SERVICES PROJECT ENVIRONMENTAL IMPACT ASSESSMENT Client: AZ RSU JSC, Baku. AZ1012. Moscow Avenue, 67. Prepared by: Dr. M RZAKHAN MANS MOV, Environmental Consultant [email protected] Baku FEBRUARY 2008 E1781 V2 Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized

ENVIRONMENTAL IMPACT ASSESSMENT - World Bank€¦ ·  · 2016-07-08agstafa region water supply and sewer system services project environmental impact assessment azersu jsc/world

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AZERSU JOINT STOCK COMPANY

National Water Supply and Sanitation Project II

AGSTAFA REGION WATER SUPPLY AND SEWER SYSTEM SERVICES PROJECT

ENVIRONMENTAL IMPACT ASSESSMENT

Client: AZ RSU JSC, Baku. AZ1012. Moscow Avenue, 67.

Prepared by: Dr. M�RZAKHAN MANS�MOV, Environmental Consultant [email protected]

Baku

FEBRUARY 2008

E1781 V2

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AGSTAFA REGION WATER SUPPLY AND SEWER SYSTEM SERVICES PROJECT

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TABLE OF CONTENTS ABREVIATIONS ...................................................................................................................4 SUMMARY…………………………………………………………………………………………..5 1.INTRODUCTION ...……………………………………………………………………………..12 1.1. GENERAL OBJECTIVES OF THE PROJECT……………………………………………12 1.2. OBJECTIVE OF ENVIRONMENTAL ASSESSMENT………………………..................12 1.3. PROJECT DETAILS…………………………………………………………………………12 1.3.1. General purpose of the project…………………………………………………………...12 1.3.2. Project location and brief summary………………………………………………………14 1.4. ANALYSIS OF PROJECT ALTERNATIVES………………………………………………17 1.4.1. ALTERNATIVE 1. Existence of current situation and “Lack of project” case………..17 1.4.2. ALTERNATIVE 2. Restoration/improvement works will cover drinking water infrastructure only…………………………………………………………………………..17 1.4.3. ALTERNATIVE 3. Restoration/improvement works will cover drinking water infrastructure and sewer systems together……………………………………………..17 2. LEGISLATION, REGULATIONS AND RULES ON ENVIRONMENT……………………21 2.1. WORLD BANK ENVIRONMENTAL MANAGEMENT POLICY………………………….21 2.2. ENVIRONMENTAL CATEGORIES………………………………………………………...22 2.3. ENVIRONMENTAL LAWS AND REGULATIONS OF AZERBAIJAN ………………….22 2.4. REGULATIONS ON WATER SUPPLY AND USE OF WATER………………………...23 2.5. ENVIRONMENTAL MANAGEMENT INSTITUTIONS…………………………………...24 2.6. ENVIRONMENTAL ASSESSMENT RULES……………………………………………...25 3. ASSESSMENT OF THE CURRENT SITUATION OF ENVIRONMENT………………...26 3.1. NATURAL ENVIRONMENT………………………………………………………………...26 3.1.1. Climate………………………………………………………………………………………26 3.1.2. Geological and hydrogeological conditions……………………………………………..26 3.1.3. Surface and ground waters……………………………………………………………….26 3.1.4. Soils and land use…………………………………………………………………………28 3.1.5. Flora and fauna (Plants and animals)…………………………………………………...29 3.1.6. Sensitive areas. Qarayazy reserve………………………………………………………29 3.2. SOCIAL AND ECONOMIC ENVIRONMENT……………………………………………..30 3.2.1. General social-economic situation………………………………………………………30. 3.3. ENVIRONMENTAL POLLUTION …………………………………………………………32 4. ASSESSMENT OF POTENTIAL IMPACTS ON NATURAL AND SOCIAL ENVIRONMENT..................................................................................................................37 4.1. ENVIRONMENTAL IMPACT ASSESSMENT..............................................................37 4.2. POTENTIAL IMPACTS OF THE PROJECT………………………………………………38 4.3. IMPACTS OF USE OF GROUND WATERS ON WATER RESOURCES……………..40 4.4. ASSESSMENT OF IMPACTS FOR OTHER ALTERNATIVES…………………………40 5. ENVIRONMENTAL MANAGEMENT PLAN………………………………………………...42 5.1. IMPACT MITIGATION MEASURES AND ENVIRONMENTAL MANAGEMENT……..42 5.2. MITIGATION MEASURES DURING THE WSSS INFRASTRUCTURE RESTORATION AND RECONSTRUCTION PHASE, ENVIRONMENTAL

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MANAGEMENT…………………………………………………………………………….……..42 5.2.1. Wastes discharged to atmosphere………………………………………………………42 5.2.2. Waste waters……………………………………………………………………………….43 5.2.3. Solid wastes………………………………………………………………………………..43 5.2.4. Noise management………………………………………………………………………..43 5.2.5. Fire safety measures………………………………………………………………………44 5.2.6. Management of impacts on soil and vegetation………………………………………..44 5.2.7. Health and safety management………………………………………………………….45 5.2.8. Regulating people’s movement…………………………………………………………..45 5.3. ENVIRONMENTAL MANAGEMENT DURING UTILIZATION PHASE………………...45 5.4. ENVIRONMENTAL MONITORING PLAN…………………………………………………46 6. PUBLIC CONSULTATIONS………………………………………………………………….48 ANNEX I. ENVIRONMENTAL CATEGORIES…………………………………………………49 ANNEX II. ENVIRONMENTAL MANAGEMENT PLAN………………………………………50 ANNEX III. ENVIRONMENTAL MONITORING PLAN........................................................54 ANNEX IV. DRINKING WATER MONITORING STANDARDS IN AZERBAIJAN.............56 ANNEX V. PUBLIC CONSULTATIONS. I REPORT..........................................................57 ANNEX VI. PUBLIC CONSULTATIONS. II REPORT........................................................59 ANNEX VII. PHOTOS.........................................................................................................63

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ABBREVIATIONS EIA – Environmental Impacts Assessment EMF – Environmental Management Framework EMP – Environmental Management Plan NGO – None-governmental organization PEE – Public Ecological Expertise SEE – State Ecological Expertise SEP – State Ecological Program UN – United Nations UNDP – United Nations Development Program WB – World Bank WHO – World Health Organization

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SUMMARY 1. Introduction Water supply and sewer system in Azerbaijan is characterized by old and half-destroyed physical infrastructure, severe financial restrictions and unsatisfactory utilization. As a result, level and quality of water supply and sewer system services, especially that of small towns, have degraded significantly. Water shortage has affected people’s welfare, and consumption of unpurified water has negatively affected public health. Conveying sewage to non-designated areas without cleaning has caused various infections and pollution of environment. Azerbaijan Government and World Bank are currently discussing implementation of new projects for water supply and sewer system sectors in small towns and regions to eliminate current pitiful situation. Azerbaijan Government and World Bank have commenced development of projects for reconstructing and improving water supply and sewer system in 20 small towns within the framework of “National Water Supply and Sewer System Project” in 2007. One of these towns is Agstafa. The main goal of the project is to totally replace plants and pipelines currently utilized in Agstafa town having no practical use for water supply and sewer systems with new ones, and to provide their long-term and sustainable utilization. For realising these goals, assessment of potential environmental and social impacts during construction and utilization phases and management of these impacts are one of the main issues of the project. 2. Project area and brief content Agstafa region is located in north-west of Azerbaijan Republic, 460 km far from Baku, on Ganja-Qazakh plain (Figure 1). Total area of the region is 1504 km2, and the population is 75.6 thousand, 12.1 thousand of which live in Agstafa town. Drinking water supply of Agstafa town, Khatai and Vurghun settlements and Ashagi Goychaly, Hassansu and Eynally villages, total of 13,900 people, is planned to be improved within the project framework. Natural growth of population and water supply prognoses till 2027 are given in the project. Water supply and the capacity of plants, as well as their exploitation duration are planned till that year. Water demand norm per capita is calculated 210 l/day (including expected losses). 4371 m3/day in 2008-2012 and 5465 m3/day in 2022-2027 water consumption is estimated in the town, including the demands of industrial, commercial and administrative entities. Sewer system will consist of water storing and conveying sewer network and sewage processing plants. Daily volume of sewage produced in Agstafa town is 3631 m3/day, together with Khatai settlement total sewage volume will be 4500 m3/day or 88.6 l/sec. Sewage processing plants will be located 4.5 km north-west of Agstafa town, and sewage will be flowed into Agstafachay River after cleaning in 4.5 km area. Conveying cleaned sewage into man-built ponds where they can be re-processed by plants is also suggested.

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3. Requirements for EIA

In 1996, Azerbaijan Government adopted amended EIA procedures corresponding to the systems applied in other countries. New rules have been described in the Regulations for Conducting Environmental Impacts Assessment in Azerbaijan Republic. These Regulations state that “assessments of wastes discharged into environment should start in the beginning, i.e. in the planning stage and before technical-economic assessment.” According to Environmental Protection Law, development of EIA for all projected enterprises having potential impacts on environment is compulsory. Requirements established for development of EIA match with World Bank requirements (OP/BP 4.01). 4. Analysis of project alternatives The only difference between Options A and B is water source. Option B is more suitable for its environmental and social impacts, as well as from economic point of view. This is stipulated by the following:

• Ground waters under Hassansuchay river-bed selected as water source in Option B are more quality and they have very little chance to be exposed to future pollution;

• There is no need for pumps to convey water from water wells to water storage facilities. Height difference between the water source areas and pressure-flow controlling water storage facilities is 48-130 meters. This means saving power and conveying water by gravity, and there is no need for extra buildings and facilities;

• In Option A, height difference between the water sources under Agstafachay river-bed and the pressure-flow controlling water storage facilities is -45 meters. This, in turn, requires a second level pumping station and construction of an additional water storage facility. Accordingly, construction and utilization costs are higher in this option;

• Water of Agstafachay River is regularly polluted by industrial and domestic wastes in Armenia and by sewage in Qazakh town. As ground water reservoirs under the river-bed are recharged by river waters, pollution risk of ground waters is high. Therefore Option A is not recommended.

Lack of project scenario is the worst case. Critical environmental situation in and around Agstafa town can aggravate, if the current situation will not change. There is great potential of total destruction of damaged water and sewer lines, flooding streets and yards with sewage which, in turn, increases the risk of negative impacts on public health and welfare. Impacts on environment and water ecosystems: pollution of surface and ground water reserves, erosion and pollution of soil, degradation of plants are possible. Existence of such a situation is undesirable, especially with high growth rate of population and creation of new enterprises. 5. Environmental pollution level A field trip to current and projected water supply and sewer system areas was realised with Agstafa Water Canal Department on February 14-15, 2008. It was found out that main pollution source affecting environment and human health are sewage waters flowing both through inside and outside of Agstafa town in open ditches and channels for 5 km and joining Agstafachay River.

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The amount of these sewage waters change depending on hours of day and seasons of year. Waste waters are conveyed from town into an open course by a sewer ditch, then flow through farm lands and Poylu village into Agstafachay River. These waters don’t reach the river in winter time because of small amount, and soak into ground polluting ground waters. Lands along the sewage ditch are cultivated for fodder. These areas are also used as pastures and domestic animals certainly drink these waste waters and eat canes and grass growing in these waters. This in the end cause noxious substance to get into human body and brings about various diseases. Sewage is settled in a number of small ponds made in the sewage course by Agstafa Water Canal Department and evaporated. This primitive method decreases the amount of waste waters flowing along the course, but also accumulates settled solid depositions in the water course. This, in its turn, promotes reproduction of living entities which cause various diseases in hot seasons of year. Most of sewage waters in Agstafa town are streamed into open ditches, and such situation poses serious dangers to human health. Hence, main pollution source for Agstafa town and its sorrounding, Poylu village and Agstafachay River is sewage waters flowing through open ditches and water course. These waters pollute ground waters in the area as well. This kind of situation contains the risk of various infections for people and domestic animals. 6. Impacts of the project As the final goal of the project is improvement of people’s welfare, public health and environment, its impacts are mainly positive. Only in construction phase of the project insignificant impacts and disturbance are expected. Positive impacts of the project. These impacts will be long-term. The following are positive impacts after project implementation:

• People will be supplied with quality drinking water corresponding to standards; • Demand for water will continuously satisfied; • As the water will be conveyed to water distribution system by gravity, less power will

be consumed; • Utilization and technical service expenses will be insignificant, as no coagulants or

flocculants will be used for water purification and ground waters will be produced and conveyed by water pressure;

• Soil erosion and pollution in the streets of the town will be prevented by decreasing water loss in water mains;

• Creation of new management system for water supply and sewer system based on modern technologies and continuous control over water quality will diminish risks of infectious diseases and health care expenses;

• Reconstruction of sewer system will prevent pollution of streets in the town and illnesses among people;

• Sewage water purification will end pollution of soils, ground waters, plants and Agstafachay River;

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• New jobs will be opened; • Previous negative effects of waste waters on Poylu village residents and domestic

animals will be eliminated; • Impacts on sensitive ecosystems, Agstafachay River course, swamp vegetation,

water ecosystems of Hassansuchay River will be minimized. Reduction of pollution in these rivers will also have positive effects on Kur River ecosystems, including Qarayazy state reserve fauna and flora.

Negative impacts of the project. Possible negative effects and disturbance of the project are only expected in its construction phase. These impacts will be noise, vibrations and emissions discharged to atmosphere generated by heavy equipment and construction mechanisms. These impacts will be generated during the following activities:

• Temporary impacts generated during the preparation of sites for drilling water wells; drilling of wells; construction of roads connecting drilling sites, water pipelines and pump stations (only in Option A) for pumping water to the second level (totally 25.5 ha area in Option A, and 28.6 ha area in Option B);

• Temporary impacts during the construction of central urban water storage facility and water pipelines (totally 7.5 ha area);

• Impacts during the replacement of old water lines (41 km) and house connecting (39 km) systems with new one in the town.

7. Impact mitigation measures and environmental management The purpose of developing measures for mitigating negative environmental impacts is to minimize possible negative environmental and social-economic impacts during the construction and utilization phases of the WSSS restoration project. These measures will be carried out by construction company during the construction phase of the WSSS project and by Agstafa Water Canal Department during utilization phase (Table 1). Project Implementation Group and Azersu JSC will control the project management. A World Bank representative will also observe project implementation during its realization. EMP monitoring reports will be submitted to MENR, Azersu JSC and World Bank.

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Table 1 Mitigation measures

Phase Source Impacts Mitigation measures

1. Generation and spread of dust

Areas where asphalt surface of roads are removed, trenches are dug and then filled again will be watered to prevent dust pollution during construction of WSSS in towns, settlements and villages in arid seasons of year

2. Solid wastes (metal, concrete, rock pieces, asphalt, sand and etc.)

- Metal wastes will be collected and taken to metal processing companies; - Construction debris (sand, soil, rocks) will be used as an additional material for filling deep trenches when needed. If not needed, they will be taken to city dumping-grounds; - Removed asphalt debris will be taken to bitumen factories for recycling; - Speed limits will be set for trucks within the town during transportation of wastes.

3. Noise generated by construction equipment and lorries

- Equipment and heavy transport will not be used at night time, on Saturdays and Sundays; - Noise absorbing walls will be set up if there is any dwellings, offices or public places in less than 50 m distance from purification plants and transport routes; - Nearby people and institutions will be warned about high noise during daytime; - Special attention will be given to sensitive institutions, especially schools, kindergartens and hospitals;

Construction phase A. Construction of water supply and sewer system network in town

Excavation of trenches, removal of asphalt surface in the streets, Burial of pipelines, filling trenches, transportation of generated wastes, new paving on roads.

4. Impacts on movement of people and traffic

Borders of construction sites will be marked, safety boards will be placed, signs regulating movement of pedestrians and traffic will be erected

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1. Soil erosion potential

For minimizing erosion of soils, water conveying pipes or concrete field ditches will be placed in highly sloping sites of areas, hollows and dry river courses to prevent land slides in slopes

2. Impacts on use of soil

Water mains and sewage canal will be constructed in old places, involvement of additional lands is not planned, schedule of works will be agreed people, or people will be notified beforehand for not impeding agricultural activities

Construction phase B. Drilling of wells in water sources, construction of pipelines and water mains, construction of water storage, purification plant, and water canal

Preparation of drilling sites, building temporary roads, excavation and filling of trenches for pipelines, construction works

3. Impacts on health of personnel

- health protection trainings will be conducted; - all personnel will be supplied with special uniforms; - personnel working in excavation of polluted soils and collection, loading, transportation and disposal of sewage waters will be supplied with protective safety glasses, gloves, long rubber boots and dust masks; - mobile shower cabins will be set up for personnel; - personnel will pass regular medical check-ups

Utilization phase (2008-2027)

Silt depositions in water cleaning plants

1. Impacts on environment, air and soil through wastes

Neutralisation of depositions, noxious substances and heavy metals, their use in fertilizing lands

1. Degradation of water quality in Agstafachay river course and river-bed

Sewage will be processed in water purification stations and cleaned to irrigation water level

2. Impacts of sewage on sorrounding lands

Sewage will be conveyed by a canal and pollution of sorrounding lands will be prevented

3. Impacts on ground waters

Pollution of ground waters will totally be stopped. There will not be impacts on water-swamp ecosystems of Agstafachay River compared to current situation

Sewage conveyed to Agstafachay River

4. Impacts on sensitive ecosystems

No negative impact on Qarayazy state reserve is expected as there is no direct contact

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8. Environmental monitoring plan Conducting monitoring is the major strategic tool in environmental management. Planning monitoring allows to identify and foresee potential impacts. Duties of Azersu and its regional subsidiaries, including Agstafa Water Canal Department are to supply people with quality and required amount of drinking water, maintain sewer systems in good working condition and purify waste waters. Water quality control is carried out by laboratories of Azersu and its subsidiaries. Planned monitoring in project areas during and after construction phase is discussed in this section. Main elements of the environmental monitoring plan are the following: 1. In construction phase:

• Dust monitoring; • Noise monitoring; • Solid wastes monitoring; • Waste waters monitoring; • Soil monitoring.

2. In utilization phase:

• Monitoring of water volume in water sources and water storages; • Monitoring of microbiological and chemical composition of water distributed to

people, comparison to water standards; • Monitoring of pollution level of sewage; • Monitoring of waste waters after purification; • Monitoring of depositions settled in water cleaning plants; • Monitoring of cleaned sewage in the place where it joins Agstafachay River; • Monitoring of soil where depositions generated in water cleaning plants will be used

as fertilizers. Regular reports on implementation of monitoring plan will be submitted to Azersu JSC, MENR and World Bank.

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1. INTRODUCTION 1.1. GENERAL OBJECTIVES OF THE PROJECT Water supply and sewer system in Azerbaijan is characterized by old and half-destroyed infrastructure, big financial limitations and unsatisfactory exploitation. In the result, the level and the quality of water supply and sewer system services especially in small towns have significantly degraded. Water shortage and use of dirty water for drinking have negatively affected welfare and health of the population respectively. Uncontrolled flow of waste waters to non-designated areas have promoted spread of various infections and pollution of environment. To eliminate this pitiful situation, Azerbaijan Government and the World Bank are currently discussing the implementation of new projects concerning water supply and sewer systems in small towns and regions. Commencing in 2007, Azerbaijan Government has started to develop projects for reconstruction and development of water supply and sewer system in 20 small towns with the World Bank within the framework of “National Water Supply and Sewer System Project”. One of these regions is Agstafa. The main objective of the project is to increase exploitation and water use culture through the development of safe for health, reliable water supply and sewer systems. Assessment of potential environmental and social impacts of the project during construction and exploitation period for obtaining these objectives, and management of these impacts are one of the main issues of the project. 1.2. OBJECTIVE OF ENVIRONMENTAL ASSESSMENT The main objective of environmental assessment (EA) is to identify potential impacts on natural environment and social and economic life in Agstafa region during reconstruction and exploitation periods of the project; to develop measures for mitigation of negative effects, as well as to develop Environmental Management Plan (EMP) and Environmental Monitoring Plan (EMP). The scope of works for environmental assessment includes, but not limited to:

• Brief description of main environmental situation, including quantity and quality of water sources affected by the project and water ecosystems potentially exposed to its impacts; water supply quality; current practices in distribution of wastes produced in water and waste water processing; health level of people regarding infections spreading through water and liquid processing; sewage and solid waste conveyance practice in town and other issues identified during assessment in project areas;

• Description of Azerbaijani laws and regulations on project environmental assessment; especially environmental standards which will be applied during the project; required licenses and rules; environmental monitoring requirements, and institutional responsibility identified for management of environmental issues in water and sewer system projects.

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• Identifying major environmental issues in construction and utilization phases emerged in the result of project impacts. Potential impacts assessment on environment includes, but not limited to, the following:

- impacts on infrastructure; - impacts on sensible ecosystems, such as wetlands, water bodies, rivers and lakes

with global and regional importance; - impacts of ground works; - impacts on human health (sewage infections and pollution risks); - Impacts on biodiversity, traffic and convenience during construction.

This project has been identified as a “B” category project in World Bank classification for EA (OP/BP4.01)1. This requires separate environmental assessment report, including environmental management plan. Moreover, public consultations shall be conducted for discussion of the project and suggested environmental management plan for it. However, considering restoration character of planned works, environmental impact assessment is not expected to be detailed or accurately developed. 1.3. PROJECT DETAILS 1.3.1. General purpose of the project Technical-economic assessment of the project has been developed by ASP� Company in 20072. The main goal of the project is to totally replace all useless equipment and pipeline system currently used in water supply and sewer system in Agstafa town with new ones and to provide their long-term and sustainable utilization. Project activities cover the following strategic issues:

• To provide a reliable water supply system for all consumers in the area covered by the project;

• To supply satisfactory amount of water to every consumer on the base of their real demand for water;

• To provide enough water pressure based on demands of every consumer. The main management components for realising these terms are the following:

• Control over losses in water supply systems; • Distribution of water within the town network on the base of correct measurements; • Production of required amount of water and its conveyance to water supply system

in required quality and amount. Ground waters and deep-well waters are planned to be used as a source of water supply in the project. Total reconstruction of sewer systems and construction of water processing plants, as well as prevention of conveying sewages to surface water bodies are one of the most important parts of the project.

1 (http://lnweb18.worldbank.org/ESSD/sdvext.nsf/52ByDocName/SafeguardPolicie2 Water Supply and Sewer System Development Project in Small Towns. Technical-economic assessment. Agstafa Town. Volume 1. May, 2007. ASPI

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1.3.2. Project location and brief summary Agstafa region is located in north-west of Azerbaijan Republic, 460 km far from Baku, on Qazakh-Ganja plain (Figure 1). Total area of the region is 1504 km2, and the population is 75.6 thousand, 12.1 thousand of which live in Agstafa town. Major railways and highways cross the town.

Figure 1. The location of Agstafa region Current water supply and sewer system. Water supply system of Agstafa town was constructed in 1965-70s, and the main source of water is pressure-free ground waters on the left bank of Hassansuchay river nearby Eynally village which is located 8.5 km south-east from the town (Fig 1). Besides this, 4 water wells which have been drilled in town in 2001-2003 are also used. 1750 subscribers (8612 people), 20 state institutions and 18 other institutions are using the water supply system. Total length of water pipelines is 55.4 km. Technical condition of water supply system is not satisfactory, water loss is great, there is no water cleaning plants and water supply is not continuous. The sewer system is reported to be developed in 1980-86s, but, in fact, the sewer system is almost ruined to non-existence. There are total 8.2 km of various diameter collectors within the town. Sewage is conveyed to Agstafachay River nearby Poylu village without

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Fig. 2. Project area

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cleaning. Water cleaning plants belonging to Railways Station have collapsed, a farmer is settled in the place where the town utilities service plans to build a water cleaning plant. Project coverage area and facilities. Water supply. The project covers total reconstruction of water supply and sewer systems of Agstafa town. Drinking water supply of villages nearby water sources and around the town will also be improved. Drinking water supply of Agstafa town, Khatai and Vurghun settlements and Ashagi Goychaly, Hassansu and Eynally villages, total population of which is 13,900, is planned to be improved. Natural growth of population and water supply prognoses are given in the project3. Water supply and the capacity of plants, as well as their exploitation duration are planned till that year. Water demand norm per capita is calculated 210 l/day (including expected losses). 4371 m3/day in 2008-2012 and 5465 m3/day in 2022-2027 water consumption is estimated in the town, including the demands of industrial, commercial and administrative entities. Water supply alternatives for the project are suggested depending on water sources and local topography:

• Option A suggests using the ground water source in Hassansu valley, alongside the railways (35.9 l/sec.) and the ground water source in Agstafachay river-bed (55.1 l/sec.). In this case, existing water sources (wells) in Eynally village remain as back-up. The length of pipelines connecting water sources and water storages will be 13.35 km (Fig. 3).

• Option B suggests using the ground water source in Hassansu valley, alongside the railways; currently used ground water source in Eynally village (70 l/sec.); and the ground water source in Hassansuchay river-bed (30 l/sec.). The length of pipelines connecting water sources and water storages will be 13.25 km. (Fig.4).

The location of water storage facilities and picturing general scheme of in-town pipeline network will be decided in one of the options according water sources. Local topography, allowable working and static pressure limits in water lines network will be the main criteria for making a choice. All of the equipment used will be the same in both of the options. These include pumps for producing water from wells, pump station for pumping water to second level, water storages and pressure-flow controlling water station sites. The following are the plants planned to be built in water storage facilities:

• Water storages – 2 off 1500 m3;• Chlorinator for water chlorination and a store for keeping chlorine containers; • Auxiliary buildings (control-security room, toilet); • In-site connection lines and flushing sewer network.

Delivery of water from water storage facilities to consumers will be carried out through water distribution and conveyance lines. Construction works within the project will start from building water distribution lines in streets.

3 Water Supply and Sewer System Development Project in Small Towns. Technical-economic assessment. Agstafa Town. Volume 1. May, 2007. ASPI

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Sewer system will consist of water storing and conveying sewer network and sewage processing plants. Daily volume of sewage produced in Agstafa town is 3631 m3/day, together with Khatai settlement total sewage volume will be 4500 m3/day or 88.6 l/sec. sewage processing plants will be located 4.5 km north-west of Agstafa town, and sewage will be flowed into Agstafachay river after cleaning in 4.5 km area. Conveying cleaned sewage into man-built ponds where they can be re-processed by plants is also suggested. 1.4. ANALYSIS OF PROJECT ALTERNATIVES 1.4.1. ALTERNATIVE 1. Existence of current situation and “Lack of project” case This case can be considered the worst. The existing water supply system is not able to supply people with drinking water and sewer drainage is almost destroyed anyway. Critical environmental condition in and around Agstafa town can aggravate, if the current situation will not change. There is great potential of total destruction of damaged water and sewer lines, flooding streets and yards with sewage which, in turn, increases the risk of negative impacts on public health and welfare. Impacts on environment and water ecosystems: pollution of surface and ground water reserves, erosion and pollution of soil, degradation of plants. Existence of such a situation is undesirable, especially with high growth rate of population and creation of new enterprises. Water shortage and damaged sewer system will promote consumers to refuse paying bills; losses in water lines, and etc. This can also render Agstafa water canal economically ineffective. 1.4.2. ALTERNATIVE 2. Restoration/improvement works will cover drinking water infrastructure only This alternative suggests construction of totally new water supply and sewer systems, and additionally, surrounding villages of Agstafa town will also be supplied with drinking water according to Options A and B. New water sources will be involved in water supply for this reason. These sources are ground waters under Hassansuchay and Agstafachay river-beds. Insignificant environmental impacts will occur during exploitation of these water sources. Sewage is planned to be flowed to Agstafachay river without cleaning. According to this alternative, the population will be supplied with continuous, quality drinking water, and water supply will cover 100% of Agstafa town population. Centralized water supply covered only 60-70% of population before the project. Water loss will be reduced, flow-meters will help to save water, and accordingly electricity, and payments by people and organizations will increase. Continuous and quality water supply will affect public health positively and reduce the infections risks. Improvement of water supply system will increase the volume of sewage waters, and there will be no waste from town sewer system into environment. However, conveying sewage waters to Agstafachay without cleaning will kill ecosystems in river-bed and valley and will pollute ground waters under the river-bed. As sewage will flow into lower parts of the river, self-cleansing capacity of the river will be reduced, because most of the river water is regulated through Agstafachay water storage pond and distributed to irrigation canals.

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During lo-flow periods (winter, summer) water flow in the river is very low. As Agstafachay flows into Kur river, sewage can affect sensible ecosystems, such as river water quality, river flora and fauna, and forest ecosystems along the river banks. Infection risks to people living along the river banks can increase. 1.4.3. ALTERNATIVE 3. Restoration/improvement works will cover drinking water infrastructure and sewer systems together

This alternative suggests construction of totally new water supply and sewer systems, and additionally, surrounding villages of Agstafa town will also be supplied with drinking water according to Options A and B. New water sources will be involved in water supply for this reason. These sources are ground waters under Hassansuchay and Agstafachay river-beds. Insignificant environmental impacts will occur during exploitation of these water sources. Sewage is planned to be cleaned in water purification plants, then re-processed in “bio areas” and streamed to Agstafachay. This alternative will also provide continuous and quality drinking water to people, and water supply will cover 100% of Agstafa town population. Water loss will be within the allowable standards, flow-meters will help to save water, and accordingly electricity, and payments by people and organizations will increase. Continuous and quality water supply will affect public health positively and totally reduce the infections risks. Impacts on surface and ground waters will be minimal. Concluding analysis of suggested alternatives and options, use of Alternative 3 and Option B is more suitable. This is the most appropriate choice regarding minimal environmental impacts and minimizing project costs.

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Fig.3. Variant A.

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Fig. 4. Variant B.

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2. LEGISLATION, REGULATIONS AND RULES ON ENVIRONMENT

2.1. WORLD BANK ENVIRONMENTAL MANAGEMENT POLICY The World Bank requires an environmental assessment (EA) of projects proposed for Bank financing to help ensure that they are environmentally sound and sustainable, and thus improve decision making (OP 4.01, January 1999). Environmental assessment (EA) is such a process effects, scale and type of which depends on potential environmental impacts, especially volume of the suggested work. The purpose of EA and its management is to identify potential environmental risks and spread of their impacts to project areas; to analyze alternatives; to decide ways of making choice; to determine locating, planning, projecting and implementing, as well mitigating measures; to compensate for negative effects on environment and reduce them to minimum; and to identify positive environmental effects. EA includes environment (air, water and soil); human health and safety; social aspects (deportation, living and historical-cultural areas); and transboundary and global aspects. All changes which can possibly take place in the country, including ongoing ecological researches, national environmental plans, political framework of the country, laws and responsible organizations on ecological and social aspects, country’s behaviour on international treaties and conventions are also taken into account in proposed projects. The Bank does not finance any project, including any EA project which does not comply with country’s commitments. The following are the issues that the Bank requires to focus on and consider important during EA process:

• Major initial environmental indicators; • Compliance with environmental regulations of Azerbaijan; • Sources of social assessment; • Analysis of alternatives; • Public participation, discussions and consultations with public and organizations; • Information disclosure.

2.2. ENVIRONMENTAL CATEGORIES As the project is aimed at improving public welfare and health, collecting and cleaning waste waters, there are less chances of major environmental impacts. Therefore this project is considered Category A project in World Bank classification, and category criteria and their compliance with national legislation is described in Annex I. A Category A project is likely to have significant adverse environmental impacts that are sensitive, diverse, or unprecedented. These impacts may affect an area broader than the sites or facilities subject to physical works, can cause serious and irrevocable impact upon the environment or human health. The EIA for a Category A project examines the project’s potential negative and positive environmental impacts, compares them with those of feasible alternatives (including the "without project" scenario), and recommends any

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measures needed to prevent, minimize, mitigate, or compensate for adverse impacts and improve environmental performance for a Category A project. The borrower is responsible for preparing a report, normally an Environmental Impact Assessment (or a suitably comprehensive regional or sectoral EIA). 2.3. ENVIRONMENTAL LAWS AND REGULATIONS OF AZERBAIJAN Main legislation acts regulating EA in Azerbaijan are given in Table 1. Main law on environmental protection and regulating its efficient use is Environmental Protection Law (1999). The Law states main principles of preservation of nature, rights and obligations of government, public institutions and citizens in this area; determines objectives of users of nature in conducting environmental monitoring, term of “ecological insurance” for dangerous activities, and establishes volunteer and compulsory environmental audit of economic activities. Basic responsibilities for violation of its requirements have also been formulated.

Table 1 Main environmental laws

Acts of legislation Year adopted Environmental Protection Law 1999 Environmental Safety Law 1999 Specially Protected Natural Areas and Objects Law

2000

Radiation Safety of Population Law 1997 Sanitarian-epidemiological Safety Law 1992 Protection of Atmosphere Law 2001 Soil Code 1999 Industrial and Domestic Wastes Law 1998 Water Code 1997 Radioactive Wastes Law 1994 Soil Productivity Law 2000

The law establishes basic standards of environmental quality, environmental requirements for economic activities, and sets requirement for state and local environmental monitoring. Quality of environment is included in environmental standards:

• Maximum concentration limit of noxious substances (MCLNS) in environment; • Tolerance limits of noxious substances thrown into environment; • Level of radiation safety; • Sanitary-hygienic norms and standards.

Violation of above-mentioned norms and requirements can result in termination or restriction of economic activity. Main goals and objectives of State Ecological Expertise (SEE) and Public Ecological Expertise (PEE) have been identified in Environmental Protection Law. Implementation of recommendations of State Ecological Expertise is compulsory. Public opinion is necessary for making optional or alternative decisions, but different from environmental expertise (EE) and SEE recommendations, this is informative and suggestive.

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2.4. REGULATIONS ON WATER SUPPLY AND USE OF WATER The main law on water supply and efficient use of water resources is Azerbaijan Republic Water Code (1997). The list of norms and standards valid in Azerbaijan is given below, considering parameters of pollutants and elements:

• “Rules for protecting surface water sources form impure water contamination”. State

Committee on Environment and Control over Use of Natural Resources. Baku, 1994;

• “Standardizing rules for use and protection of water sources”, Resolution #2006 of

the Cabinet of Ministers of Azerbaijan Republic, October 15, 1988, article 8;

• “Developing draft version of MCLNS standards for enterprises applying technical standards and tolerance limits of waste and recommendations on its content”. State Environmental Committee, 1994;

• Handbook for standardizing concentration of noxious substances discharged into

atmosphere and water bodies. State Environmental Committee of USSR. Moscow, 1989;

• State Standard #17.0.0.04-90. Recommendations for filling and updating

environmental passport of an enterprise. State Environmental Committee of USSR. Moscow, 1990;

• State Standard 17.0.04-90. Environmental passport. Baku, 1990.

• Rules for use of water objects for cultural and community purposes, recreation and

sport purposes. Resolution #216 of the Cabinet of Ministers of Azerbaijan Republic (1998).

• Allowable limits of detrimental effects to fishery water bodies. Resolution of the

Cabinet of Ministers of Azerbaijan Republic (1999).

• Guidelines on regulating discharge of pollutants into atmosphere and water bodies. Goskompriroda USSR, 11.09.1989 No.09-2-8/1573

• Rules for state control over protection and use of water bodies. Resolution #198 of

the Cabinet of Ministers of Azerbaijan Republic (1998).

• Resolution #150 of the Cabinet of Ministers of Azerbaijan Republic on Application of rules for paid use of water in Azerbaijan Republic (1996).

• Regulations on development and application of limits for use of water. Article #8

(15.10.1998. Council of Ministries’ Decision No: 206).

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• Resolution #122 of the Cabinet of Ministers of Azerbaijan Republic on Application of

fees for use of natural resources, discharge of pollutants into environment, and on use of funds formed from these sources (1992).

• Regulations on processing, preparation, submission, state expertise, approval and

application of systems for comprehensive use and protection of water resources –Article #8 (15.10.1998, The Cabinet of Ministers Resolution #206).

• Radiation Safety Norms QN 2.6.1.054-90 (NRB-90);

• State Standard 2874-82. Drinking Water. Hygienic Requirements and Water Quality

Control;

• SNIP (Construction Norms and Regulations): - For water treatment plants: SNIP 2.04.02-84; State Construction Committee, 1985 - For waste water treatment plants: SNIP 2.04.03-85; State Construction Committee, 1985.

2.5. ENVIRONMENTAL MANAGEMENT INSTITUTIONS Azerbaijan Government is responsible for the protection of environment. The Ministry of Ecology and Natural Resources (MENR) is the central state institution controlling the protection of environment. MENR is commissioned to control application of environmental rules and adherence to norms and standards. National Hydrometeorology Department of MENR is commissioned with registration and monitoring of surface water bodies and Geological Department of MENR is commissioned with assessment of ground water resources. State Melioration and Water Systems Agency is the responsible institution for use of water, exploitation of water storages, canals and melioration facilities, supply of irrigation water. Azersu JSC carries responsibility for water supply for people, houses, industrial and public entities and for utilization of sewer systems. According to Article 42 of Environmental Protection Law, EIA should be prepared by independent experts and exposed to public discussions. The document becomes effective after being approved by SEE. SEE is the department of MENR. MENR also approves Environmental Passports and issues licenses for management of dangerous wastes. State Committee on Soil and Cartography regulates use of soil, and State Registration of Real Estate Service carries out registration of real estate, including registration of land owners.

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The Ministry of Emergency Situations (MES) is the responsible institution for management of natural disasters and industrial accidents. MES also controls the implementation of safety rules in construction, mining and industry. The Ministry of Health is the state institution controlling the sanitarian-epidemiological situation in the country. The ministry also regulates health protection in work places. State Metrology and Standardization Service determines relevance of and quality and quantity standards for units of measurement, and carries out governmental policy in this area. Norms and rules established for implementation of acts of legislation are compulsory for all institutions regardless of their legal form. Norms and rules become effective after being approved by the Cabinet of Ministers. All organizations have health, safety and environment department. They provide implementation of all norms, rules and standards, and are responsible for keeping appropriate records and conducting trainings. It should be noted that sometimes uncertainties and parallelisms are encountered in environmental management. This is mostly due to indefiniteness in legislation and regulations, in other cases, are the result of misuse of power by ministries. For example, SEE in MENR carries out EIA and expertise Ecological Passports in one hand, and Ecological Centre in MENR prepares EIA. This is contrary to rules established in EIA Guidelines (i.e. EIA should be prepared by independent consultants). Another problem is poor coordination of activities among authorized institutions. This sometimes causes conflicting issues. Such kinds of issues include, but not limited to, standards control, private ownership and state registration of lands, and etc. To solve the above mentioned problems, relevant changes to regulations and strengthening control over their implementation are required. 2.6. ENVIRONMENTAL ASSESSMENT RULES In 1996, Azerbaijan Government adopted amended EIA procedures corresponding to the systems applied in other countries. New rules have been described in the Regulations for Conducting Environmental Impacts Assessment in Azerbaijan Republic. These Regulations state that “assessments of wastes discharged into environment should start in the beginning, i.e. in the planning stage and before technical-economic assessment.” According to Environmental Protection Law, development of EIA for all projected enterprises having potential impacts on environment is compulsory. Requirements established for development of EIA match with World Bank requirements (OP/BP 4.01).

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3. ASSESSMENT OF THE CURRENT SITUATION OF ENVIRONMENT 3.1. NATURAL ENVIRONMENT 3.1.1. Climate Restored as one of the administrative area units of Azerbaijan Republic in 1990, Agstafa region occupies 1503.7 km2 of area which expands to north-west end of Ganja-Qazakh plain and Jayranchol plain. The region is bordered with south-west and north-east slopes of low highland range which is north-west slope of Small Caucasus Mountains inclining towards north. Two major climate zones are distinguished in Agstafa region:

1. Mild hot climate with dry winter 2. Mild hot semidesert and arid plain climate with dry winter.

These climate types are characterized by mild winter and hot summer. Depending on orographic structure of the region territory, all climate elements are distributed unequally due to height changing from north to south and from south to center. Total annual radiation is 125-130 kkal/sm2, and total annual radiation balance is 45-50 kkal/sm2.

Annual weather temperature is 12-14°C. Temperature changes from +2°C to -2°C in the coldest month of January, and fluctuates between 20-24°C in July. The highest temperature observed in summer is 40-43°C, and the lowest temperature in winter is -20-25°C. Precipitation ranges between 420-250 mm changing from north-west to south-east. Precipitation ranges during the year. Most of the atmospheric depositions fall in spring. Average annual humidity is 70-75%. Possible annual evaporation is 800-1000 mm. Average annual wind speed is 1.3 m/sec. Eastern winds dominate in the area. Number of sunny days is 5-15, number of dark days is 10-20 and number of days hailing is 1-3 a year. 3.1.2. Geological and hydrogeological conditions Locating in low highlands of north-west slope of Small Caucasus Mountains, Agstafa region constitutes part of Qazakh synclinorium regarding relation of modern relief to tectonic structures and has mainly flat terrain. Geological structure consists of chalk, volcanic-sedimentary and sedimentary rock compositions of Palaeogene, as well as alluvial-proluvial and deluvial-proluvial clay loams, sandstone, gravel and etc. of Quaternary. Total thickness of top chalk depositions on the right bank of Kur river and Agstafachay river-bed reaches 1800-2000 mm which has been exposed to wrinkling during mountain formation processes and complicated by tectonic breaks and furrows. This restricts economic activities in lowlands which constitute southern borders of the region and cause some problems. Tokens of mineral depositions among natural resources of the region are signs of structural-lithological characteristics of geological development, magmatism and geological development history. Mineral resources are represented poorly within the area, can only be

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observed in south-western slopes. Existence of endless non-mineral natural resources (whetstone, bentonite, pebble, sand, volcanic ash, raw cement and etc.) makes Agstafa region one of the areas of the Small Caucasus with good perspective. One of the problems related to geological and geomorphological conditions of the region is the seismicity of the area. Although the region is rated to Richter magnitude 7 earthquake, very weak shocks are observed in the area. Regarding the hydromorphological condition of the region, ground waters in continental sedimentary depositions have much more importance and cover large area. These waters are less mineralised and can be used for various purposes, including domestic services, balneological purposes and etc. Depending on tectonic, geomorphological and lithological characteristics of the region area, ground erosion can be wide spread not only in easily corroded rocks, but also in pebbled deep layers. Bottom erosion is 7-8 cm along the right bank of Agstafachay River and reach 1.5-3 m in furrows along the Kur River. Development of furrows along the right bank of Kur River is intensive. 3.1.3. Surface and ground waters Two rivers cross Agstafa region territory, which are used as a source of fresh water. These are Agstafachay and Hassansuchay. Both rivers start from the territory of Armenian Republic and join Kur River in the end crossing Agstafa region. A dam was built on Agstafachay River on the border with Armenia and the dam is currently used for irrigating agricultural lands of Qazakh and Agstafa regions through left and right bank canals. Hassansuchay starts from Armenia and joins Kur River crossing Tatly, Goychaly, Vurghun and Eynally villages of Agstafa region. 40-50% of annual water flow of the river originates from rain, 20-25% from snow and 25-30% from ground water recharge. Some morphometric indicators of Agstafachay and Hassansuchay are given in Table 2.

Table 2 Morphometric characteristics of rivers

Rivers Length, km

Area of drainage

basin (watershed),

thousand km2

Density of river

network, km/km2

Rate of water flow,

m3/sec.

True vertical

height of source,

m

True vertical

height of mouth,

m

Agstafachay 133 2.85 0.6 13.2 3002 210 Hassansuchay 71 0.35 0.8 1.75 2680 196

Hassansu River almost dries out in its terminus in summer time because of intensive irrigation. 293.3 million m3 of annual water flow of Agstafachay is abstracted for irrigation. Annual distribution of flows of the above-mentioned rivers is given below in relative tables.

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Table 3 Annual distribution of water flow

No. River/ destination

Unit Winter XII-II

Spring III-IV

Summer VI-VIII

Fall IX-XI

II

m3/sec. 3.05 17.49 9.2 4.4 8.65 mln. m3 24.2 139 73,3 34,9 271

1 Agstafachay/ Barkhudarly

(situated below water storage

level)

%10 51 26.5 12.5 100

m3/sec. 0.54 2.6 1.8 0.85 1.43 mln. m3 4,19 20,7 14,3 6,76 45,0

2 Hassansu/ Sakhkavan

% 9.0 44.9 31.4 14.7 100

Ground waters. Because of the complicated hydrogeological structure of the area, ground waters in Agstafa region largely differ from each other in regard to depth, feeding specifications, and inclination and mineralisation degree. Climate, rivers and lakes, lithologic composition of rocks, inclination specifications, permeability, economic impacts of people and soil-vegetation layer play special role among factors determining complexity of hydrogeological condition. Formation, feeding, dynamics, as well as mineralisation degree and chemical composition of ground waters depend on the above mentioned factors. It has been discovered that the amount of sulphuric and nitric compositions in ground waters in the areas between Agstafachay and Shamkirchay has been increasing because of intensive agricultural activities. Main reason of this is that various organic and mineral compositions used as fertilizers get solved in water and soak into ground waters. In the result of long-term studies in Agstafa region, special hydrogeologic expedition group of the Ministry of Environment and Natural Resources of Azerbaijan Republic discovered that there is huge ground water reservoir in between the courses of Agstafachay and Hassansuchay Rivers. 3.1.4. Soils and land use Agstafa is one of the regions of Azerbaijan Republic exploited since old times and intensively irrigated depending on characteristics of its landscape. The following soil types are wide spread in Agstafa region: light gray-brown; dark gray-brown; wet grassland; wet grassland-forested; wetland-grassland; and gray. The above-mentioned soil types are distributed in the region in order of horizontal height zones. Therefore, various soil types expanding from plains, especially from Kur River banks to low and medium highlands formed under different climate circumstances vary for their genetic, physical, chemical and mechanical characteristics, as well as for the intensity of exploitation. The amount of humus in gray-brown and gray soils comprises 1.8-3.0% and suffers from salinity. Especially, semideserts have been formed with low productive bushes, wormwoods and ephemers in soils developed on salty rocks under arid climate conditions in sloping plains along the Kur River, foothills and Jayranchol lowland. Salinities are wide spread in lowlands of Jayranchol where water table is too close to the surface and in plains between ridges.

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Soil types typical for Agstafa region allow cultivation of agricultural plants. Main agricultural areas are winegrowing, cereal production and animal husbandry. Secondary areas are sheep-breeding, potato-growing, gardening and vegetable-growing. Major natural agricultural resource of the region is winter pastures in Jayranchol plain. These areas are mainly used for grazing livestock (sheep husbandry) and fodder production. 3.1.5. Flora and fauna (Plants and animals) Vegetation in Agstafa region consists of riparian forests on the left bank of Kur River and winter pastures of Jayranchol grassland. Alluvial grasslands along the Kur River are characterized by tamarisk forests besides riparian forests rich with willow, white poplar, alder-tree and various shrubs. Mountain xerophyte, wormwood steppes in highlands, ephemer, wormwood rich dry steppes in foothills and wormwood semideserts dominate in the region. Wormwood and Batis group of plants (saltwort and etc.) are developed in sloping foothill plains and in Jayranchol highland where arid climate dominate. Vegetation in semidesert and dry steppe zones of the region have been exposed to essential changes as a result of the development of irrigative agriculture, subsidence and industrial-technological impacts. Natural phytocenosis have been destroyed in these areas because of growing various agricultural plants and grape and fruit gardens replaced them. Moreover, quarries and sand-pits and various construction plants in the area, as well as construction of roads and hydro-technical infrastructure also removed vegetation. Jayranchol highland belonging to Agstafa region has 170 thousand ha of pastures, 165 thousand of which is useful. Desert, semidesert, steppe and partially grassland vegetation type phytocenosis constitutes main part of natural vegetation in the area. Wormwood ephemers, wormwood frail salinity, wormwood and other meadow type cenoses are wide-spread. Agstafa region area has rich animal life typical for various landscape types. Wild boar, wolf, fox, rabbit, hare, badger, beaver, squirrel, pheasant, eagle, wood-pigeon, migrating ducks, white and black geese and other animals and birds live in the forests. 3.1.6. Sensitive areas. Qarayazy reserve Forests in Agstafa region occupy 7500 ha of area and mainly consist of white poplar, willow, oak and elm-tree. White poplar forests occupy 1826 ha, willow forests 200 ha, oaks 920 ha and alder 50 ha of area in forestry. Because of poor protection of forestry, density of highly productive soil-protecting and water-purifying forests have decreased, even disappeared in some places in the result of illegal felling of trees and impromptu animal grazing in forests along year. As poplar forests have suitable conditions for natural self-restoration, lots of sprouts and shoots grow there. But shoots perish as a result of cattle grazing in forests, and this impedes natural self-restoration of forests.

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Qarayazy oak-aspen tree forest is situated nearby Mughanly and Sadikhly villages of Agstafa region. Qarayazy reserve was established in 1978 in riparian woodlands around the Kur in Agstafa region. According to the Ministry of Environment and Natural Resources of Azerbaijan Republic, the area of the reserve is 4855 ha. 40.9% of this area is covered with forests, 30.8% is not covered with forest, and 28.3% is non-forest (sand flat, swamp, cultivated land, hayland, roads and water bodies) area. 42.8% of forests consist of oak-trees, 28.2% aspen tree and 19.7% of planted trees. Specially protected oak-aspen forests in Qarayazy reserve consist of biodominant groves where oak-tree or aspen predominate, and there is a small biodominant grove of oak-elm trees. Average age of trees ranges between 150-200 years. Density of forests is low, mainly 02-04. Most of the trees have been exposed to anthropogenic impacts, branches and topsides are cut. Although this forest is within the state reserve, continuously used for animal grazing and trees are cut illegally. Riparian forests in central and southern parts of Qarayazy reserve have been severely damaged by negative impacts of people. There is no tree in its natural (untouched) condition. It is necessary to prohibit all illegal activities – illegal felling of trees, animal grazing and etc. which impede restoration of forests, and to take special forestry measures. 3.2. SOCIAL AND ECONOMIC ENVIRONMENT 3.2.1. General social-economic situation Agstafa region is situated in north-west of Azerbaijan Republic, 460 km far from Baku, in Ganja-Qazakh sloping lowland. Located in favourable natural-geographic area, the region is one of the oldest inhabited places not only in Azerbaijan, but also in entire South Caucasus. Territory of the region is bordered with Georgia, Armenia, and Tovuz and Qazakh regions of Azerbaijan. As an administrative district, Agstafa region was established on January 24, 1939, then was abolished on December 4, 1959, united with Qazakh region and became part of it. By the resolution of Azerbaijan Government, Agstafa region was separated from Qazakh region and regained its region status since April 1990. Agstafa region has 1 town, 9 settlements and 29 villages. Although Agstafa is a quite “young” administrative region, it is one of the socially and economically well-developed regions. Main economic activities. 23 big and small economic sectors have been developed in Agstafa region. Main business sectors are agriculture, production of and trade with domestic goods, non-alcohol drinks and etc. Majority of the population works in agriculture sector. Animal husbandry is the major agricultural sector. Cattlebreeding and poultry have well-developed. More than 23,159 cattle and more than 222,000 poultry are maintained in the region. Most of them are bred in private facilities and small farms.

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Table 4

Cultivated agricultural lands (for all categories), ha Year 2000 2002 2003 2004 2005 2006 Cereals and leguminous plants 9231 12036 9736 12064 12623 12542 Potatoes 536 460 574 580 498 430 Vegetables 1097 1318 1370 1373 1397 1450 Melon plantations 209 119 150 151 82 101 Vine gardens 290 286 286 286 313 287 Fruit and berry gardens 912 915 918 923 981 950 Wheat 6317 9386 7523 9129 9188 9135

Table 5 Main crops (for all categories), tons

Year 2000 2002 2003 2004 2005 2006 Potato 4419 4003 5744 5807 5050 4484 Vegetables 12584 13803 14289 14386 15308 15874 Cereal 21594 32292 26599 33157 35271 3436 Melons 2001 1304 1643 1653 831 1026 Grape 3604 3687 3738 3744 3792 4261 Fruits and berries 11151 11299 12705 12764 14553 14248 Wheat 14284 25529 20833 25908 26999 26959

Table 6 Quantity of animals (for all categories), each

Year 2000 2002 2003 2004 2005 2006 17869 19884 20792 21786 22524 23159 Cattles, including cows and

buffalos 8824 9521 9918 10232 10421 10559

Sheep and goats 129488 144123 151386 156576 161366 163850Pigs 28 13 17 29 47 53

Health. Current level of health care in the region is partially satisfactory. Such as there arehospitals and medical stations in all settlements and villages of the region supplied with relevant medical personnel. Main indicators of health care in the region are shown in table 7.

Table 7 Main indicators of health care

Year 2000 2002 2003 2004 2005 2006 Number of doctors 122 129 130 129 127 128 Number of nurses 458 474 479 484 455 465 Number of hospitals 13 13 13 13 13 13 Number of beds in hospitals 560 560 560 560 560 560 Number of outpatient departments and polyclinics

20 19 20 20 20 20

Capacity of outpatient departments and polyclinics (number of patients)

737 709 744 744 744 744

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Marriage, birth and child death statistics characterize the health level of the population in Agstafa region. Main indicators of public health:

• Number of marriages 501 • Number of divorces 35 • Number of newborns 1202 • Number of deaths 618 • Death of children under 1 year age 14

Main diseases and illnesses among the region population in all categories (2007)

• All diseases 1963 • Some infectious parasites 738 • New derivatives 85 • Endocrinal disturbance 374 • Blood and blood producing organs 151 • Neural system and sense organs 321 • Blood circulation system 504 • Respiratory organs 304 • Skin and connective tissue 46 • Bones, muscles and connective tissues 94

Infections and parasitic diseases among population in the region

• Tuberculosis of respiratory organs 41 • Total hepatitis virus 25

Hepatitis A 21 Hepatitis B 4 Hepatitis C -

There are 93 sports complexes in Agstafa region for public health protection and 6500 people make use of these complexes. 35 preschool institutions, 39 high schools and 49 libraries serve to educate people. In addition, there are 38 clubs and 2 museums in the region. Historical monuments. There are 36 locally important historical, architectural and art memorials in the region. 10 of these left from Stone Age, 22 from Bronze Age and 4 from Middle Ages. These monuments are mainly located in Agstafa town, Ashagi Goychaly, Tatly, Kochasgar, Pyrily, Yukhari Goychaly, Qyrily, Hassansu and other villages. 3.3. ENVIRONMENTAL POLLUTION There is no big industrial plant in the region and wastes discharged to atmosphere have local effects. The project areas cover lowlands and are surrounded by dwellings and farms. A field trip to current and projected water supply and sewer system areas was realised with the Head of Agstafa Water Canal Department Mr. Vidadi Shahmammadov on February 14-15, 2008. It was found out that main pollution source affecting environment and human

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health are sewage waters flowing both through inside and outside of Agstafa town in open ditches and channels for 5 km and joining Agstafachay River. The amount of these sewage waters change depending on hours of day and seasons of year. Waste waters are conveyed from town into an open course by a sewer ditch (Figure 1), then flow through farm lands (Figure 2) and Poylu village (Figure 3) into Agstafachay River (Figure 4). These waters don’t reach the river in winter time because of small amount, and soak into ground polluting ground waters. Lands along the sewage ditch are cultivated for fodder.

Figure 1. Sewage waters on the way out of the town

Figure 2. Sewage waters among fodder plants farms

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These areas are also used as pastures and domestic animals certainly drink these waste waters and eat canes and grass growing in these waters. This in the end cause noxious substance to get into human body and brings about various diseases.

Figure 3. Sewage waters near Poylu village (caned water course)

Figure 4. Place where sewage waters join Agstafachay River Sewage is settled in a number of small ponds made in the sewage course by Agstafa Water Canal Department (Figure 5) and evaporated. This primitive method decreases the

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amount of waste waters flowing along the course, but also accumulates settled solid depositions in the water course. This, in its turn, promotes reproduction of living entities which cause various diseases in hot seasons of year.

Figure 5. Small ponds in sewage water course where sewage is settled Most of sewage waters in Agstafa town are streamed into open ditches, and such situation poses serious dangers to human health (Figure 6).

Figure 6. Sewer ditches in Agstafa town The results of the field trip confirm that main pollution source for Agstafa town and its sorrounding, Poylu village and Agstafachay River is sewage waters flowing through open

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ditches and water course. These waters pollute ground waters in the area as well. This kind of situation contains the risk of various infections for people and domestic animals.

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4. ASSESSMENT OF POTENTIAL IMPACTS ON NATURAL AND SOCIAL ENVIRONMENT 4.1. ENVIRONMENTAL IMPACT ASSESSMENT This section discusses potential impacts on environment and social-economic sectors during water supply and sewer system construction and utilization works in project areas. Environmental impact is the penetration of activity to anything, i.e. to a receiver not actively related to operations. The receiver might be environment (air, soil or water) or biosphere depending on it (human health, society, flora and fauna). The following criteria are used for assessing environmental impacts (Table 8). Legal, administrative and social framework of the project is detailed in Environmental Impact Assessment Framework4.

Table 8 Criteria used for environmental impact assessment

Category Terminology

Scope of impacts Presice 100 %

Possible More than 50 %, less than 100%

Predicted More than 10 %, less than 50%

Occurance potential

Not predicted Less than 10%

Constant Non-stop

Many times Once or more a day

Less Less than once a day

Repetition of occurance

Once Ad hoc occurance

Regional More than 10 km (for example, Absheron Peninsula)

Provincial Within 10 km radius

Local Outside sanitarian zone

Scale of occurance

Direct Inside sanitarian zone

Continuous Over exploitation period

Long-term As long as exploitation period

Medium-term More than a year

Duration of occurance

Short-term Less than a year

Very high 200 % more than normal

High Up to 200 % of normal

Medium Almost equal to normal

Low More than 50 % of normal

Indicator of impact on receiver

Very low Less than 50 % of normal

4 Environmental Impact Assessment Framework for the National Water Supply and Sanitation Project II. January. 2008

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Main possible impacts on environment and social-economic sectors during water supply and sewer system restoration operations will occur in construction phase of works. These impacts are short-term, temporary and local impacts. Assessment of potential impacts on environment and social-economic sectors covers the following areas:

• Dust generated by digging and ground works during construction of pipelines; • Solid wastes generated by destroying asphalt surface and excavations in streets;

• Noise and vibrations created by construction machines (bulldozers, excavators),

power and welding generators, lorries;

• Temporary impacts on traffic, people’s movement and agricultural activities during pipeline construction;

• Overflow of sewage during pipeline welding;

• Impacts on greenery and cultural-social entities in town;

• Impacts on soil and vegetation during excavation of trenches for building water

mains connecting water sources with water storage facilities and water supply systems;

• Less expected cases, impacts on health and safety of employees during

construction works;

• Impacts on sensitive areas and biodiversity;

• Social and economic impacts;

• Impacts on health. Water supply and sewer system restoration project comply with all environmental laws and regulations of Azerbaijan Republic. The project is also relevant to Warranty5, EA (OP/BP 4.01)6 procedures of the World Bank and the Bank’s Information Transparency Policy7. In all cases, the project will be implemented in compliance with national requirements and EIA Statue, all norms, rules and standards will strictly be followed. 4.2. POTENTIAL IMPACTS OF THE PROJECT As the final goal of the project is improvement of people’s welfare, public health and environment, its impacts are mainly positive. Only in construction phase of the project insignificant impacts and disturbance are expected.

5 http://www.mca.gov/guidance/IEG.shtml6 http://lnweb18.worldbank.org/ESSD/sdvext.nsf/52ByDocName/SafeguardPolicie7 http://wwwl.worldbank.org/operations/disclosure

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Positive impacts of the project. These impacts will be long-term. The following are positive impacts after project implementation:

• People will be supplied with quality drinking water corresponding to standards; • Demand for water will continuously satisfied; • As the water will be conveyed to water distribution system by gravity, less power will

be consumed; • Utilization and technical service expenses will be insignificant, as no coagulants or

flocculants will be used for water purification and ground waters will be produced and conveyed by water pressure;

• Soil erosion and pollution in the streets of the town will be prevented by decreasing water loss in water mains;

• Creation of new management system for water supply and sewer system based on modern technologies and continuous control over water quality will diminish risks of infectious diseases and health care expenses;

• Reconstruction of sewer system will prevent pollution of streets in the town and illnesses among people;

• Sewage water purification will end pollution of soils, ground waters, plants and Agstafachay River;

• New jobs will be opened; • Previous negative effects of waste waters on Poylu village residents and domestic

animals will be eliminated; • Impacts on sensitive ecosystems, Agstafachay River course, swamp vegetation,

water ecosystems of Hassansuchay River will be minimized. Reduction of pollution in these rivers will also have positive effects on Kur River ecosystems, including Qarayazy state reserve fauna and flora.

Negative impacts of the project. Possible negative effects and disturbance of the project are only expected in its construction phase. These impacts will be noise, vibrations and emissions discharged to atmosphere generated by heavy equipment and construction mechanisms. These impacts will be generated during the following activities:

• Temporary impacts generated during the preparation of sites for drilling water wells; drilling of wells; construction of roads connecting drilling sites, water pipelines and pump stations (only in Option A) for pumping water to the second level (totally 25.5 ha area in Option A, and 28.6 ha area in Option B);

• Temporary impacts during the construction of central urban water storage facility and water pipelines (totally 7.5 ha area);

• Impacts during the replacement of old water lines (41 km) and house connecting (39 km) systems with new one in the town.

Measures for mitigation of negative effects are described in Annex II.

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4.3. IMPACTS OF USE OF GROUND WATERS ON WATER RESOURCES

Project area water resources include ground waters in the area and water resources of Agstafachay and Hassansuchay Rivers. Detailed information is given in Section 3. Comparing the amount of water removed from water sources to reserves of rivers in the project area, use of water will have no effect on river plume. Option A. Annual water flow of Agstafachay River in the area selected as water source is 271 mln m3 or 8.65 m3/sec. Planned volume of water which will annually be removed from ground water reserves under the river course is 1.8 mln m3 or 57.1 litre/sec. Removed volume constitutes 0.4% of annual water flow of the river. Therefore it will not affect hydrologic balance of the river. Annual water flow of Hassansuchay River in the area selected as water source is 45 mln m3 or 1.45 m3/sec. Planned volume of water which will annually be removed from ground water reserves nearby the river course is 1.13 mln m3 or 35.9 litre/sec. Removed volume constitutes 2.5% of annual water flow of the river. This will not affect hydrologic balance of the river. Option B. 3.4 mln m3 or 110 litre/sec. of water is planned to be removed only from Hassansuchay River basin ground waters annually. It constitutes 7.7% of annual water flow of the river. Even in this case, significant effect on hydrologic balance of the river is not expected. In fact, there is not a connection between ground waters and river flow in selected water source area of Hassansuchay River. As this area is located in foothills, its ground waters are formed in middle highland zone and recharge potential of ground waters is higher. Hence, removal of water from the area will not have significant effect on its ground water and surface water reserves. On the other hand, both of the rivers are used for irrigation, and Hassansuchay does not reach its mouth in summer time, i.e. other impacts on river balance are larger and deeper in scale. 4.4. ASSESSMENT OF IMPACTS FOR OTHER ALTERNATIVES The only difference between Options A and B is water source. Option B is more suitable for its environmental and social impacts, as well as from economic point of view. This is stipulated by the following:

• Ground waters under Hassansuchay river-bed selected as water source in Option B are more quality and they have very little chance to be exposed to future pollution;

• There is no need for pumps to convey water from water wells to water storage facilities. Height difference between the water source areas and pressure-flow controlling water storage facilities is 48-130 meters. This means saving power and conveying water by gravity, and there is no need for extra buildings and facilities;

• In Option A, height difference between the water sources under Agstafachay river-bed and the pressure-flow controlling water storage facilities is -45 meters. This, in

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turn, requires a second level pumping station and construction of an additional water storage facility. Accordingly, construction and utilization costs are higher in this option;

• Water of Agstafachay River is regularly polluted by industrial and domestic wastes in Armenia and by sewage in Qazakh town. As ground water reservoirs under the river-bed are recharged by river waters, pollution risk of ground waters is high. Therefore Option A is not recommended.

Lack of project scenario is the worst case, and maintenance of situation described in section 3.3. means regional-scale environmental and social crisis exists.

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5. ENVIRONMENTAL MANAGEMENT PLAN 5.1. IMPACT MITIGATION MEASURES AND ENVIRONMENTAL MANAGEMENT

The main objective of environmental management is to mitigate negative environmental and social impacts, minimize environmental risks, adhere to safety rules and follow all current and strategic measures intended for health protection during construction and utilization phases of the project. The elements of system determining environmental management during the project implementation are the following:

• Roles, duties and responsibilities of Azersu and Agstafa Water Canal Department management;

• Management of water supply and sewer systems (WSSS); • Assessment and management of wastes and risks; • Data and records; • Exploitation of and technical services to equipment and machines; • Management of changes; • Services of other organizations; • Study of accidents and incidents, analysis and elimination of their consequences; • Public information; • Bringing up the reliability, and assessment of, operations.

The purpose of developing measures for mitigating negative environmental impacts is to minimize possible negative environmental and social-economic impacts during the construction and utilization phases of the WSSS restoration project. These measures will be carried out by construction company during the construction phase of the project and by Agstafa Water Canal Department during utilization phase. Environmental Management Plan is given in Annex III. 5.2. MITIGATION MEASURES DURING THE WSSS INFRASTRUCTURE RESTORATION AND RECONSTRUCTION PHASE, ENVIRONMENTAL MANAGEMENT 5.2.1. Wastes discharged to atmosphere

Heavy equipment and machines used within the project framework will mainly be new and comply with all standards. Impact of emissions from auxiliary equipment (welding equipment, pumps and etc.), construction mechanisms and lorries on atmosphere will be minimal:

• Local impacts on chemical composition and pollution level of air; • Emissions will quickly spread and disappear.

Management of emissions will depend on compliance of equipment and machinery exploitation with technical and utilization specifications. The following are measures for emission and dust management:

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• Due services to bulldozers, graders, excavators and trucks will be performed in compliance with their exploitation standards, use of recommended fuel will be controlled;

• Regular check of technical condition of all equpment Programme will be prepared and carried out regularly;

• Areas where asphalt surface of roads are removed, trenches are dug and then filled again will be watered to prevent dust pollution during construction of WSSS in town, settlements and villages in arid seasons of year;

• 30 km/h speed limit will be set for movement of vehicles on dirt roads; • Excavating trenches, building temporary dirt roads and loading/unloading operations

will be stopped when wind speed exceeds 11m/s; • Transported loads will be covered if there is any people and dwellings at 300 m or

closer distance. 5.2.2. Waste waters Possibility of spill of waste waters contained in sewer lines during construction and restoration works is very high. During completion of these works in the town waste waters in every built and reconstructed site (block) will be stored in temporary pits dug in the ground in sewer line level. Then they will be sucked up and taken out of town by septic vacuum trucks and disposed to sewer ponds. These works will be done in the beginning of construction activities in every block. People will be notified not to dispose sewage into open ditches, and these waters will be removed from yard by septic vacuum trucks. 5.2.3. Solid wastes As mentioned before, solid wastes (metals, asphalt chunks, rocks, concrete, gravel, sand and etc.) will be generated during drilling operations, removal of asphalt surface, dumping sand for building base underneath pipelines, filling excavated soil back, paving roads, building storages and other works within the project framework. Solid wastes will be managed as follows:

• Borders of construction sites will be marked beforehand and signs will be erected warning people not to dump garbage and not to enter;

• Metal wastes will be collected and taken to metal processing companies; • Construction debris (sand, soil, rocks) will be used as an additional material for filling

deep trenches when needed. If not needed, they will be taken to city dumping-grounds;

• Removed asphalt debris will be taken to bitumen factories for recycling; • Speed limits will be set for trucks within the town during transportation of wastes.

5.2.4. Noise management Noise is disturbing sound. It is measured by energy or pressure intensity unit and measured in decibels (dB). Noise level is proportional to audio-frequency range of human

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ear and is called A-frequency or dBA. Noise during construction works will be generated by sources shown in Table 9.

Table 9 Expected noise level from technical equipment

Equipment Maximum expected noise level in 15 meter distance (dBA)

Bulldozers and excavators 87 Cranes 86 Welding equipment 73 Generators 92 Tipper trucks 87

Concrete mixers 87

According to norms valid in Azerbaijan, allowable noise level should be as follows: • 65 dBA in daytime; • 45 dBA at night-time.

These are very close to World Bank standards8.

The following actions are planned to reduce noises:

• Equipment and heavy transport will not be used at night time, on Saturdays and Sundays;

• Noise absorbing walls will be set up if there is any dwellings, offices or public places in less than 50 m distance from purification plants and transport routes;

• Nearby people and institutions will be warned about high noise during daytime; • Special attention will be given to sensitive institutions, especially schools,

kindergartens and hospitals; • Mufflers of heavy equipment will always be kept in good condition.

5.2.5. Fire safety measures Appropriate measures against fire will be taken in compliance with existing laws and safety rules. These measures are as follows:

• Fire fighting equipment will be placed in all sites having fire potential; • All personnel will be trained on fire fighting.

5.2.6. Management of impacts on soil and vegetation There is a potential of land erosion during excavation of trenches for water mains connecting water storage facilities with water sources; construction of a sewer canal; building a water purification plant; and temporary use of dirt roads. For minimizing erosion of soils, water conveying pipes or concrete field ditches will be placed in highly sloping sites of areas, hollows and dry river courses to prevent land slides in slopes.

8 Guidance of the World Bank on prevention and release of pollution, 1997

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Impacts on vegetation will be little and insignificant during construction of water mains and canals. If linear objects will come across trees, their trajectory will be changed. But this possibility is very low, because there is no forest in the project areas. 5.2.7. Health and safety management

Safety and safe work place is obtained when all personnel strictly and punctually follow all safety rules and regulations. Construction contractor will train its personnel on safety, environment and quality control, as well as control implementation of safety rules. Works will be guided by existing laws, sanitarian rules and Azersu JSC manuals. The following measures will be taken to protect health of personnel working in polluted areas:

• Health protection trainings will be conducted; • All personnel will be supplied with special coveralls; • Personnel working in excavation of polluted soils and collection, loading,

transportation and disposal of sewage waters will be supplied with protective safety glasses, gloves, long rubber boots and dust masks;

• Mobile shower cabins will be set up for personnel; • Personnel will pass regular medical check-ups.

Use of asbestos and other dangerous substances is not planned. 5.2.8. Regulating people’s movement Impacts on people and their economic activity, public transport, agricultural activities during construction phase are inevitable. Construction sites will be divided into sections, works will be planned according to schedule prepared beforehand, people and organizations will be notified ahead of time. Borders of construction sites will be marked, safety boards will be placed, signs regulating movement of pedestrians and traffic will be erected. 5.3. ENVIRONMENTAL MANAGEMENT DURING UTILIZATION PHASE

Agstafa Water Canal Department will be supplied with various modern control, repair, measurement equipment and small laboratory, as well as administrative building, vehicles, special equipment for cleaning sewer systems. Sewage purification process will cover mechanical and biological stages, and these waters are planned to be cleaned to irrigation water level. WSSS management is carried out according to internal procedures of Azersu JSC. These procedures comply with requirements set by the legislation and management regulations of Azerbaijan Republic.

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Potential environmental impacts during utilization phase are small, and their management is described below:

• Continuous control over water quality and standards (Annex V); • Control over water consumption; • Prohibiting entrance of people and animals in water protection areas and providing

regular guarding; • Continuous control over chlorination process in water storage facilities,

accommodating chlorine storage in chlorination building to safety rules; • Continuous control over mechanical and biological sewage aeration in sewage

purification stations, use of mobile power generator for providing continuous purification;

• Continuous control over quality (microbiological and chemical composition) of purified sewage water;

• Researching options of using purified waters for irrigation purposes and for growing technical crops during dry seasons. Conducting consultations with authorized organizations;

• Continuous control over neutralisation of noxious substances and heavy metals in silt depositions settled in sewage purification plants as a part of technical processes;

• Researching options of mixing depositions with mineral fertilizers and using in agricultural lands agreeing with authorised organizations;

• These depositions are possible to use as fertilizer for plants decorating Agstafa town.

5.4. ENVIRONMENTAL MONITORING PLAN Conducting monitoring is the major strategic tool in environmental management. Planning monitoring allows to identify and foresee potential impacts. Duties of Azersu and its regional subsidiaries, including Agstafa Water Canal Department are to supply people with quality and required amount of drinking water, maintain sewer systems in good working condition and purify waste waters. Water quality control is carried out by laboratories of Azersu and its subsidiaries. Planned monitoring in project areas during and after construction phase is discussed in this section (Annex IV). Main elements of the environmental monitoring plan are the following: 1. In construction phase:

• Dust monitoring; • Noise monitoring; • Solid wastes monitoring; • Waste waters monitoring; • Soil monitoring.

2. In utilization phase:

• Monitoring of water volume in water sources and water storages; • Monitoring of microbiological and chemical composition of water distributed to

people, comparison to water standards;

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• Monitoring of pollution level of sewage; • Monitoring of waste waters after purification; • Monitoring of depositions settled in water cleaning plants; • Monitoring of cleaned sewage in the place where it joins Agstafachay River; • Monitoring of soil where depositions generated in water cleaning plants will be used

as fertilizers.

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6. PUBLIC CONSULTATIONS According to Environmental Protection Law, consultations with local communities and NGOs must be conducted and their participation should be provided in all stages of project implementation. These consultations will have great importance when project activities directly affect these communities. Natural and social environment must not be changed to their detriment, and any change directly affecting local community shall be made conditional to their prior consent. Representatives of local communities affected by the project and NGOs should be involved in consultations. Azerbaijan has joined Convention on Access to Environmental Information, Public Participation in Decision Making Process and Access to Justice in Environmental Matters (Aarhus, Denmark, 1998) in 1999. Public consultations will be conducted and press releases will be disclosed in all stages of the project implementation in compliance with Azerbaijani laws on NGOs and Media, as well World Bank Policy on Disclosure of Information9. Information about the project will also be disclosed on internet sites of Azersu (www.azersu.az) and Caucasus Environmental NGO Network (CENN). Public consultations were held on February 08, 2008 and February 29, 2008 (Annex VI). Meetings with Agstafa town community and representatives of the region’s executive power were held on February 14-15, 2008. Conflict resolution and handling complains. There is possibility of conflicts with local people during the project implementation, because construction works will cause some inconveniences. If any conflicts, these will be solved through mutual discussions. Claimants can bring issues to Agstafa Water Canal Department and Azersu in case of the conflict of interests. If they do not get satisfactory answer to their complaints, they can bring issues to local and central executive bodies as established by legislation.

9 http://wwwl.worldbank.org/operations/disclosure

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ANNEX I. ENVIRONMENTAL CATEGORIES Bank Category A (Azerbaijan Law Category 1): A Category A project is likely to have significant adverse environmental impacts that are sensitive, diverse, or unprecedented. These impacts may affect an area broader than the sites or facilities subject to physical works, can cause serious and irrevocable impact upon the environment or human health. The EIA for a Category A project examines the project’s potential negative and positive environmental impacts, compares them with those of feasible alternatives (including the "without project" scenario), and recommends any measures needed to prevent, minimize, mitigate, or compensate for adverse impacts and improve environmental performance for a Category A project. The borrower is responsible for preparing a report, normally an Environmental Impact Assessment (or a suitably comprehensive regional or sectoral EIA). Bank Category B (Azerbaijan Law Category 2): A Category B project has potential adverse environmental impacts on human populations or environmentally important areas - including wetlands, forests, grasslands, and other natural habitats - which are less adverse than that of Category A projects. These impacts are site-specific; few if any of them are irreversible; and in most cases mitigatory measures can be designed more readily than for Category A projects. The scope of EIA (EA) for a Category B project may vary from project to project, but it is narrower than that of Category A assessment. Like Category A, a Category B environmental assessment examines the projects potential negative and positive environmental impacts and recommends any measures needed to prevent, minimize, mitigate, or compensate for adverse impacts and improve environmental performance. Bank Category C (Azerbaijan Law Category 3-4): A Category C project is likely to have minimal or no adverse environmental impacts. Beyond screening, no further EIA action is required. Category-C includes activities, the scope, location and content of which will not bring about serious impact on the environment. Bank Category FI: A Category FI project involves investment of Bank funds through a financial intermediary (FI), in subprojects that may result in adverse environmental impact. (also known as Category F). Sub-projects may be defined as Category A, B or C within the FI Category1. Where FI operations are expected to have Category A sub-projects, the PFI will provide to the Bank a written assessment of the institutional mechanisms for sub-project EIA. This is done prior to the Bank’s appraisal of the PFI and may include identification of measures to strengthen the EIA capacity of the PFI. If the Bank is not satisfied that adequate EA capacity exists within the PFI, all Category B sub-projects EIA reports and, where appropriate, Category B sub-project EIA reports, are subject to prior review by the Bank. It is important that the project management unit and the lending institution be able to identify activities for which funding is being requested and which may fall into either of the World Bank’s Category A or Category B (for the most recent information on environmental categories see Website (www.worldbank.org/ environment)

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ANNEX II. ENVIRONMENTAL MANAGEMENT PLAN

Phase Source Impacts Mitigation measures Measurecost

Institutionalresponsibility

Notes or reverseeffects

1. Generationand spread ofdust

Areas where asphalt surface of roadsare removed, trenches are dug andthen filled again will be watered toprevent dust pollution duringconstruction of WSSS in towns,settlements and villages in aridseasons of year

Notapplicable (n/a)

Constructioncontractor

Reverse effectsare not expectedafter completionof constructionand restorationworks

2. Solid wastes(metal, concrete,rock pieces,asphalt, sand andetc.)

- Metal wastes will be collected andtaken to metal processing companies;- Construction debris (sand, soil,rocks) will be used as an additionalmaterial for filling deep trenches whenneeded. If not needed, they will betaken to city dumping-grounds;- Removed asphalt debris will betaken to bitumen factories forrecycling;- Speed limits will be set for truckswithin the town during transportationof wastes.

n/a Constructioncontractor

Reverse effectsare not expectedafter completionof constructionand restorationworks

Constructionphase A.Constructionof watersupply andsewer systemnetwork intown

Excavation oftrenches,removal ofasphaltsurface in thestreets,burial ofpipelines,fillingtrenches,transportationof generatedwastes, newpaving onroads.

3. Potential ofsewage spillsfrom sewer linesduringsonstruction andrestoration works

Waters will be stored in temporarypits, then will be sucked up and takenout of town by septic vacuum trucksand disposed to sewer ponds

n/a Constructioncontractor

Reverse effectsare not expectedafter completionof constructionand restorationworks

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ANNEX II. ENVIRONMENTAL MANAGEMENT PLAN

Phase Source Impacts Mitigation measures Measurecost

Institutionalresponsibility

Notes or reverseeffects

4. Noisegenerated byconstructionequipment andlorries

- Equipment and heavy transport will notbe used at night time, on Saturdays andSundays;- Noise absorbing walls will be set up ifthere is any dwellings, offices or publicplaces in less than 50 m distance frompurification plants and transport routes;- Nearby people and institutions will bewarned about high noise during daytime;- Special attention will be given tosensitive institutions, especially schools,kindergartens and hospitals;

n/a Constructioncontractor

Reverse effectsare not expectedafter completionof constructionand restorationworks

Constructionphase A.Constructionof watersupply andsewer systemnetwork intown

Excavation oftrenches,removal ofasphaltsurface in thestreets,burial ofpipelines,fillingtrenches,transportationof generatedwastes, newpaving onroads.

5. Impacts onmovement ofpeople and traffic

Borders of construction sites will bemarked, safety boards will be placed,signs regulating movement ofpedestrians and traffic will be erected

n/a Constructioncontractor

Reverse effectsare not expectedafter completionof constructionand restorationworks

1. Soil erosionpotential

For minimizing erosion of soils, waterconveying pipes or concrete field ditcheswill be placed in highly sloping sites ofareas, hollows and dry river courses toprevent land slides in slopes

n/a Constructioncontractor

Reverse effectsare not expectedafter completionof constructionand restorationworks

Constructionphase B.Drilling ofwells in watersources,constructionof pipelinesand watermains,constructionof waterstorage,purificationplant, andwater canal

Preparation ofdrilling sites,buildingtemporaryroads,excavationand filling oftrenches forpipelines,constructionworks

2. Impacts onplant life

Impacts on vegetation will be little andinsignificant during construction of watermains and canals. If linear objects willcome across trees, their trajectory will bechanged. But this possibility is very low,because there is no forest in the projectareas

n/a Constructioncontractor

Reverse effectsare not expectedafter completionof constructionand restorationworks

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ANNEX II. ENVIRONMENTAL MANAGEMENT PLAN

Phase Source Impacts Mitigation measures Measurecost

Institutionalresponsibility

Notes or reverseeffects

1. Deteriorationof water quality inAgstafachay rivercourse and bed

Sewage will be processed inwater purification stations andcleaned to irrigation water level

Included intotal costs ofthe project

AgstafaWater CanalDepartment

Reverse effectscan only occurduring emergencycases

2. Impacts ofsewage onsorroundinglands

Sewage will be conveyed by acanal and pollution of sorroundinglands will be prevented

Included intotal costs ofthe project

AgstafaWater CanalDepartment

Reverse effectscan only occurduring emergencycases

3. Impacts onground waters

Pollution of ground waters willtotally be stopped

No cost isrequired

AgstafaWater CanalDepartment

Reverse effectscan only occurduring emergencycases and spills

4. Impacts onsensitiveecosystems

There will not be impacts onwater-swamp ecosystems ofAgstafachay River compared tocurrent situationNo negative impact on Qarayazystate reserve is expected as thereis no direct contact

No cost isrequired

No reverse effect isexpected

Utilizationphase (2008-2027)

Sewageconveyed toAgstafachayRiver

5. Impacts onhealth

Positive impacts are expected.Risks of people being exposed toinfections decrease

No cost isrequired

No reverse effect isexpected

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ANNEX III. ENVIRONMENTAL MONITORING PLAN

Phase Whichparameters willbe monitored?

Where will themonitoring beconducted?

How will themonitoring beconductedand with whatequipment?

When will monitoringbe conducted on this

parameter?

Why monitoring isconducted on this

parameter?

Cost ofmeasures

Institutionalresponsibility

Dust Construction sitesand loadtransportationroutes

Observationandinspection

Everyday, untilconstruction worksfinish

Protecting humanhealth

n/a Contractor

Noisemonitoring

Construction sites Observationandinspection

Everyday, untilconstruction worksfinish

Protecting humanhealth

n/a Contractor

Solid wastemonitoring

Construction sitesand loadtransportationroutes

Observationandinspection

Everyday, untilconstruction worksfinish

Protectingenvironmental pollution

n/a Contractor

Waste watermonitoring

Construction sites Observationandinspection

Everyday, untilconstruction worksfinish

Protectingenvironmental pollution,decreasing risks ofinfectious diseases

n/a Contractor andAgstafa Water

CanalDepartment

Constructionphase A.Constructionof watersupply andsewer systemnetwork intown

Soil monitoring Sites wherepipelines andtemporary dirtroads will be built

Observationandinspection

Regularly Preventing degradationof soil and vegetation

n/a Contractor andAgstafa Water

CanalDepartment

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ANNEX III. ENVIRONMENTAL MONITORING PLAN

Phase Whichparameters willbe monitored?

Where will themonitoring beconducted?

How will themonitoring beconducted andwith whatequipment?

When willmonitoring be

conducted on thisparameter?

Why monitoring isconducted on this

parameter?

Cost ofmeasures

Institutionalresponsibility

Monitoring ofwater volume inwater sourcesand waterstorages

Water sourcesnearby Eynally villageand Hassansuchayriver-bed

Measuring fluidlevel and flowrate in waterwells with fluidshot device andflow meter

Fluid level every 10days, and flow ratecontinuously

Efficient use ofwater resources inwater sources

Included intotal costsof theproject

Agstafa WaterCanalDepartment

Monitoring ofmicrobiologicaland chemicalcomposition ofwaterdistributed topeople,comparison towaterstandards

Quality indicators ofwater sources nearbyEynally village andHassansuchay river-bed:- physicalcharacteristics ofwater- turbidity- amount of anionsand cations- microbiologicalindicators- heavy metals

Water sampleswill be taken instandard bottlesand analysed inlaboratory

Once a month;every 3, 5, or 10days in emergencysituations

To keep waterquality and qualitywater supply topeople undercontrol

Included intotal costsof theproject

Agstafa WaterCanalDepartment

Utilizationphase (2008-2027)

Monitoring ofpollution levelof sewage

Quality indicators ofsewage generated intown:- physicalcharacteristics ofwater- turbidity- amount of anionsand cations- microbiologicalindicators- heavy metals

Water sampleswill be taken instandard bottlesand analysed inlaboratory

Once a month;every 3, 5, or 10days in emergencysituations

To control sewagepurification

Included intotal costsof theproject

Agstafa WaterCanalDepartment

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ANNEX III. ENVIRONMENTAL MONITORING PLAN

Phase Whichparameters willbe monitored?

Where will the monitoringbe conducted?

How will themonitoring beconducted andwith whatequipment?

When willmonitoring be

conducted on thisparameter?

Why monitoringis conducted onthis parameter?

Cost ofmeasures

Institutionalresponsibility

Monitoring ofsewage afterpurification

Quality indicators of waterin the outlet of waterpurification plant:- physical characteristicsof water- turbidity- amount of anions andcations- microbiologicalindicators- heavy metals

Water sampleswill be taken instandard bottlesand analysed inlaboratory

Once a month;every 3, 5, or 10days inemergencysituations

To controlsewagepurification

Included intotal costsof theproject

Agstafa WaterCanalDepartment

Monitoring ofdepositions inwaterpurificationplants

Determining mechanicalcomposition ofdepositions, noxioussubstances andmicrobiologicalparameters required bystandards

Water sampleswill be taken instandard bottlesand analysed inlaboratory

Once a month,and wheneverdepositions areremoved frompurification plant

To controlsewagepurification and tokeep recycling ofdepositions undercontrol

Included intotal costsof theproject

Agstafa WaterCanalDepartment

Utilizationphase (2008-2027)

Monitoring ofcleanedsewage in theplace where itjoinsAgstafachayRiver

Where sewage canaljoins the river

Water sampleswill be taken instandard bottlesand analysed inlaboratory

Once a month To controlsewagepurification

Included intotal costsof theproject

Agstafa WaterCanalDepartment

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ANNEX IV. DRINKING WATER MONITORING STANDARDS IN AZERBAIJAN

INDICATOR

Standards

pH 6,0-9,0 Turbidity 1.5 mg/l

Microorganism (Colonies are formed in 1 ml test water) <100

Coliform bacteria (coliform index), intestinal bacteria formed in 1 litre of test water

<3

Nitrates (N03) 45 mg/l

Nitrites (N02) 3 mg/l

Chlorides

350 mg/l

Phosphates

1.0 mg/l

Sulfates (S04) 500 mg/l

Total hardness

7 mmol/1

Remained chlorine 0.3-0.5

Al 0.5 mg/l

As 0.05 mg/l

Fe 0. 3 mg/l

Ni 0.1 mg/l

Cr (Cr6+) 0.05 mg/l

Cu (Cr2+) 1 mg/l

Zn 5 mg/l

Cd 0.001 mg/l

Pb 0.03 mg/l

Hg 0.0005 mg/l

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ANNEX V. PUBLIC CONSULTATIONS. I REPORT.

Water Supply and Sewer System Project in Small Towns. Agstafa Town.

Azerbaijan – World Bank

LIST OF PARTICIPANTS

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ANNEX V. PUBLIC CONSULTATIONS. I REPORT.

Water Supply and Sewer System Project in Small Towns. Agstafa Town.

Azerbaijan – World Bank

Public consultations were held in the first stage of Environmental Impacts Assessment development, in a conference organized by Azersu JSC on February 9, 2008. A public notification was released for organizing the meeting.

• An information about organizing the meeting was placed in www.azersu.az website on January 31, 2008;

• Applications for participation were received from NGOs till February 6, 2008. Head of International Relations and Development Department of Azersu JSC, Mr. Ilgar Tagiyev opened the meeting and delivered general information about the project. He mentioned that one of the main terms of water supply and sewer system project implementation is EIA development. Then the consultant Mr. Mirzakhan Mansimov talked about the content of EIA document for Agstafa WSSS. Discussions started after project presentation. Questions were asked first. Fuad Akhundov – Karvan, NGO Which equipment and methods will be utilized for sewage purification? How will depositions generated in purification plants be treated? Answer: Sewage is planned to be fully cleaned, i.e. using mechanical and microbiological purification plants according to technical-economic assessment of the project. Cleaned water will be conveyed to Agstafachay River by an open canal which will allow additional aeration of water. Depositions settled in purification plants are suggested to be cleaned and used with mineral fertilizers. Rafig Verdiyev – International Hydrology Program, NGO

How will use of ground waters affect hydrologic balance of rivers? Answer: Ground waters used as water source for the project are artesian and subartesian waters, and water mainly formed in middle and upper parts of river basins and recharging ground waters. These waters are close to surface in synclinal and monoclinal (hollows) parts of the landscape. Areas suggested as water sources are located in lower parts of river basins and almost no river flow is formed in these areas. These waters most likely will not affect hydrologic balance of rivers. This issue will be studied in EIA.

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Samir Isayev – Ecolex, NGO

Why river waters are not used in water supply? Is this related to volume of water flow and water quality of rivers? Answer: River waters are enough for water supply and their use will not have significant effect on rivers. The main issue here is quality. Agstafachay River waters are regularly polluted in Armenian territory, Agstafachay dam was constructed for irrigation purposes only, and hardness of Hassansuchay River waters is very high. Ground waters are clearer and higher quality, as well as costs for their purification are minimal. Soltanhamid Malikov – Lazer Ltd.

The issue worrying me is sewage purification level. What level will these waters be cleaned to, and how can they be used afterwards? Answer: Purification of water is planned to irrigation water level. This allows to use these waters in dry seasons mixing with irrigation waters. Main discussions Discussions were mainly about impacts on small river ecosystems; prevention of sewage disposal to rivers; status of ground waters under river courses as most of river waters are consumed; positive role of the project in water supply for people; and potential impacts on ground water resources. Brisk discussions about issues causing major NGO and public concerns, such as sewage and exploitation of most modern technologies for its purification and further utilization of depositions generated in purification process were led. Compliance of the project with requirements of World Bank and Azerbaijani legislation, standards, monitoring, ways of minimizing potential environmental impacts during construction phase of the project were also discussed. It was noted that the project is supported by NGOs, and finally, wide-scale works towards solution of water supply and sewer system problems existing for 20-30 years will have positive effects on public welfare and health.

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ANNEX VI. PUBLIC CONSULTATIONS. II REPORT

Water Supply and Sewer System Project in Small Towns. Agstafa town

Azerbaijan – World Bank

Public consultations were conducted on March 1st, 2008 at the last stage of Environmental Impact Assessment, in a meeting organized by Agstafa Water Canal Department. The public was informed about the meeting in advance:

• An information about organizing the meeting was placed in www.azersu.az website on February 22nd, 2008? As well as Agstafa Water Canal Department informed town community about it.

• Applications for participation were received from NGOs till February 28, 2008 Head of Agstafa Water Canal Department, Mr. Vidadi Shahmammadov opened the meeting and delivered general information about the project. He mentioned that one of the main terms of water supply and sewer system project implementation is EIA development and draft version of the document has been developed. Then the consultant on Agstafa WSSS project Mr. Mirzakhan Mansimov talked about the content of EIA document. Discussions started after project presentation. Questions were asked first. Mehriban Karimova – resident, teacher We experience water shortage for many years, especially in summer time. They talk about this project too much, and it is unknown yet when it will be launched and when we will get normal water in our town. Can you tell when these works will be started? Answer: Complete reconstruction of water supply and sewer system is planned to finish within 2007-2008 according to the project. Sevda Abdullayeva – resident, house woman As understood from your conversations, we will not have to buy water by tank trucks and we have 24 hours water, correct? Answer: Yes, the project plans to ensure supply of 210 litres fresh water per day per capita and 24 hours water supply. Elkhan Mammadbayov – Geography Society (NGO) You mentioned that the volume of sewage will increase few times compared to current volume. What is the reason of this? Answer: First of all, currently fresh water is supplied to the town only once every two days and accordingly water consumption is low. Secondly, most of the generated sewage is not conveyed to sewer system, it is either discharged to ditches in yards or streamed to streets. That is why total volume of sewage is quite small, and as the system is ruined they can not be collected into a single place. According to the project, water consumption will

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LIST OF PARTICIPANTS

Agstafa March 1, 2008

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increase after reconstruction of water supply and accordingly, sewage volume will approximately be 4500 m3 per day. Nariman Hajiyev – Representative of Agstafa region executive power The role of the project in improvement of welfare and sanitation of our town and its population is invaluable. We impatiently wait for the project to be implemented. How will be the fee payment? If the same old method, then consumers will not save water. What shall be done in this situation? Answer: Of course, if water consumption is not controlled, it will be impossible to collect the spent money back, and uncontrolled water consumption will cause water shortage again and water taps will be open in yards all the time. The only way to avoid such a situation is supply of flow meters to people. If not, water will not be used efficiently. Galina Kozlova – Echograph (NGO) You mentioned that sewage waters will fully be cleaned. It is very good. What will happen to waters generated by industrial entities built in Agstafa in the future? Answer: According to legislation, every enterprise or plant can discharge its waste waters to sewer system after cleaning it minimum to sewage level. Main discussions

Discussions were mainly about water supply, purification of fresh water, length of construction works and its inconveniences, depositions generated during purification and their potential use and etc. The main concern of Agstafa community is immediate commencement of the project, as they are fed up with water shortage and sewage problems, and they do not want to experience the same problems in the forthcoming spring-summer season. NGOs also supported the project once again, and mentioned the importance of its immediate commencement.

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ANNEX VII. PHOTOS

Office of Agstafa Water Canal Department

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Sewage in the outskirts of Agstafa town

Domestic wastes in sewage conveying ditch

Sewage waters

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Sewage waters

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Ruins of a bridge across sewage conveying ditch

Working water well nearby Eynally village

500 m³ water storage nearby Eynally village

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1000 m³ water storage nearby Vurghun village supplying water to Agstafa town

Agstafachay River course

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Hassansuchay River in Goychaly village area (place where ground waters are selected as future water source)

Hassansuchay River in Goychaly village area

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