ARMENIA

Additional Financing for the Municipal Water and Wastewater Project

Revised Environmental Management Plan Framework

I. INTRODUCTION

This document presents the Revised Environmental Management PlanFramework (EMPF), for the Armenia Municipal Water and Wastewater Project (MWWP) to cover additional activities to be supported by additional funds from the World Bank. The EMPF is revised to ensure that the additional activities are implemented in accordance with the World Bank operational guidelines. The EMPF includes procedures and implementation arrangements for ensuring full consideration of environmental safeguards in the annual investment program, in accordance with OP 4.01 as well as Republic of Armenia (ROA) laws and regulations on environmental protection and environmental impact assessment. The main purpose of this EMPF is to serve as a valuable tool for identifying key environmental and social impacts that will result from the project, proposing mitigation measures to address the most significant impacts, and outlining the monitoring programs and institutional responsibilities for implementation.

For the purpose of the Operational Policy (OP) 4.01 of the World Bank, the original project was rated as an environmental category FI (Financial Intermediary) given the fact that the exact investment items wereunknown at the time of project appraisal. The additional activities are also rated Category FI, with the likely sub-projects rated Category B and C.

Although no major environmental issues are anticipated during the implementation of the MWWP additional activities, since most of investments will concentrate on rehabilitation of existing infrastructure, certain investments items to be funded under the project may require special mitigation measures to protect the environment and enhance health safety.

The budget for implementing the EMPF has been included in the project cost for the additional activities, and includes the salary of the environmental specialist. Monitoring aspects are included separately in the management contract (MC) of the international operator responsible for the implementation of the project, and are therefore have not been included in the costs.

  1. BACKGROUND AND PROJECT DESCRIPTION

Water Supply: Presently, there are 37 towns and 268 rural populated areas within the service area of the Armenia Water Supply Company (AWSC). Water supply to these populated areas is implemented by means of about 110 systems and 730 water intake structures of these systems, through 4,370 km of water main pipelines, 5,890 km of inside-community water and sewerage networks, pumping stations, chlorinating stations, wastewater treatment plants (WTPs) and other structures (according to the Report on Water Metering Project Preparation, MWWP, 2002). The analysis of data presented in Part I Armenia Water Supply Project Report in the framework of the Armenia - Municipal Water and Wastewater Project (MWWP) shows that inappropriate technical equipment of the networks reduces to almost 65% the general amount of drinking water intake reaching the users and to 85% - the supplied water volume. Water is supplied to consumers according to schedules of daily supply in the range from 1 to 24 hours (with an average of 11.5). Apart from failing to meet consumers’ needs, losses have negative impact on the environment and causes swamping, erosion of cultivated lands, activates land sliding, etc.

Wastewater: Domestic and industrial wastewaters from all cities of the RoA are disposed through wastewater networks and collectors. The existing networks collect sewage water from 60-80% of urban areas, while rural areas mainly do not have wastewater systems and sewage water is entirely discharged into the ROA river network. There are 6 WWTP under the AWSC, through which only 45-50% of the disposed sewage water is undergoing mechanical treatment. As some structures providing for technological processes at the WWTP-s are no longer operated for various reasons, normal procedure of sewage water treatment they have to provide is disrupted. About 63% of the total length of wastewater collectors and net pipe works were built more than 20 years ago, and today they need to be repaired or are in emergency situation.

Within the above context, the World Bank prepared a US$26million project in 2004 with the objective to help the improvement of water and sanitation services in RoA so that adequate services can be provided to all customers, and the sector can contribute to the economic development of the country in an environmentally sound way. The project aimed to achieve this objective by assisting the RoA Government in testing and developing important aspects of the water sector reform process. The investment program under the project has largely proceeded on track, and the repair and rehabilitation program for AWSC water supply systems has already resulted in improved water quality and increased availability of clean and safe water supply in areas participating in the project. The Government is now seeking additional funds from the World Bank to continue with the project.

The revised project will now includes the following additional components:

AWSC Management Strengthening (US$6.9 million): This component will include: (i) the financing of the continuation of the management contract for an additional two years (US$5.2 million); (ii) project management and supervision by the Contract Management Unit (US$1.1 million); and consultants to prepare a strategy and implementation of a lease contract for AWSC’s service area (US$0.6 million)

AWSC Investments (US$5.2 million): This component will finance: (i) the procurement of equipment, machinery, motor vehicles and computer equipment and software to improve the operations of AWSC (US$3.5 million); (ii) institutional and financial capacity building, including consultancies for fixed assets inventory and re-evaluation, and AWSC operating costs (US$0.5 million), (iii) assistance to the AWSC Training Center (US$0.5 million); (iv) rehabilitation and improvement of chemical and biological laboratories (US$0.4 million); and (vi) assistance to condominiums to continue with a program to install block meters and partial repair to internal networks (US$0.3 million)

Investments in Branch Systems (US$9.9 million): This component will support: (i) procurement and replacement of deteriorated treatment and chlorination equipment (US$0.5 million); (ii) procurement and installation of pressure loggers, pipes and fittings, water meters including chambers for meter housing, including rehabilitation of pumping station (US$4.2 million); (iii) repair and reconstruction of sector offices (US$0.9 million); and (iv) design and civil works for network rehabilitation in the town of Hrazdan (US$4.3 million) .

The original project cost was US$25.5 million. The revised project cost is now US$47.5 million, including the US$22 million for the additional activities to be supported by the additional financing.

III. LEGAL AND INSTITUTIONAL SETTINGS

A. Legal Setting

A number of relevant laws were promulgated to regulate water use and protect the environment.

  • Law on the Principles of Environmental Protection (1991);
  • Water Code (2002);
  • Law on Expertise of Environmental Impact Assessment (1995);
  • Law on Ensuring Sanitary-Epidemiological Security of the ROA population (1992)
  • Law on Specially Protected Nature Areas (2006);
  • Law on the Protection and Use of Fixed Cultural and Historic Monuments and Historic Environment (1998).

Law on the Principles of Environmental Protection (1991)

The Law on the Principles of Environmental Protection (1991) outlines the environmental protection policy of the RoA. Its purpose is to ensure state regulation of environmental protection and use within the territory of the RoA. It provides a legal basis for the development of environmental legislation regulating the protection and use of entrails, forest, water, flora and fauna, and the atmosphere.

ROA Water Code (2002)

The main purpose of this Code is to provide the legal basis for the conservation of the country’s water resources, the satisfaction of water needs of citizens and economic sectors through effective management of water resources, and safeguarding the protection of water resources for future generations. Adoption of the new ROA Water Code generated the need for further modifications in several pieces of existing legislation. At present there are 7 draft laws being developed by the RoA. In addition the Government is drafting a number of procedures and regulations, including Procedure of Implementation and Reporting on Water Resources Monitoring, Standards Limiting Environmental Impact on Water Resources, Standards of Minimum Drinking Water Supply Rates for Population, and other normative documents which will provide guidelines directly linked with water and wastewater environmental issues.

ROALaw on Expertise of Environmental Impact (EEI) (1995)

The RoA Law on Expertise of Environmental Impact (EEI), adopted in 1995 establishes in Articles 2-5, the generallegal, economic, and organizational principles for conducting mandatory state EEI of varioustypes of projects and “concepts” of sectoral development (e.g., energy, mining, chemicalindustry, construction, metallurgy, pulp and paper, agriculture, food and fishery, water,electronics, infrastructure, services, tourism and recreation). In addition, an EEI may be alsoinitiated for projects that do not meet “threshold” value requirements. This right was given tolocal authorities, ministries, local communities and nongovernmental organizations in Article4(4). Other national legislation that determines the “special status” of a particular territory may also trigger a review of environmental impact. The Ministry of Nature Protection caninitiate a review of environmental impact when it deems it to be necessary. The EEI Law specifies notification, documentation, public consultations, and appeal procedures andrequirements (Articles 6-11). The law also seeks to ensure high professional credentials(“certification”) of environmental assessment experts as well as to exclude any potential forconflict of interest.

The Law on EIA is generally consistent with the EIA approaches followed by international conventions and development assistance agencies (e.g., World Bank, USAID, and EU). The Law demands that for the operation of any economic unit, or implementation of a plan or programs, a positive conclusion of an environmental impact assessment must be obtained. The EIA law also provides for public involvement and participation at all stages of the EIA.

ROA Law “On Ensuring Sanitary-Epidemiological Security of the ROA Population”(1992)

The RoA Law “On Ensuring Sanitary-Epidemiological Security of the ROA Population” adopted in 1992, which sets legal, economic and institutional bases for ensured sanitary and epidemiological safety of the RoA population, as well as other guaranties provided for by the State to exclude influence of adverse and hazardous factors on human organism and ensure favorable conditions for vital capacity of the present and future generations.

ROA Law on Specially Protected Nature Areas (2006)

The new law on Specially Protected Nature Areas (SPNA) was adopted in 27.11.2006 and is in force since 04.01.2007. The law regulates the legal bases for state policy of sustainable development, rehabilitation, maintenance and usage of special protected natural areas. In Chapter 1, Article 6 the content of Management Plan for Special Protected Nature Areas is described. Such a management Plan shall include a) main information on SPNAs (including description on ecosystems and their element, assessment of changes and development perspectives); b) SPNAs zone formation, borders, biodiversity, location of biological resources, land use and other thematic maps and master plans; c) stakeholders participating in SPNAs maintenance and use processes; d) socio-economic and natural use characteristics of SPNAs; e) annual plan and schedule of mitigation measures of anthropogenic adverse impact; f) costs and funding necessary for SPNAs conservation and execution of scientific researches and other procedures within those areas. In Chapter 1, Article 7 SPNA zones are described.

ROA Law on the Protection and Use of Fixed Cultural and Historic Monuments and Environment (1998)

The Law on the Protection and Use of Fixed Cultural and HistoricMonuments and Historic Environment, adopted by the National Assembly on November 11, 1998, provides the legal and policy basis for the protection and use of such monuments in Armenia and regulates the relations among protection and use activities. Article 15 of the Law describes procedures for, among other things, the discovery and state registration of monuments, the assessment of protection zones around them, and the creation of historic-cultural reserves. Article 22 requires the approval of the authorized body (Department of Historic and Cultural Monuments Preservation) before land can be allocated for construction, agricultural and other types of activities in areas containing monuments.

Water Quality Standards

Armenia has adopted various quality standards from the former Soviet Union, including the following:

  • Drinking Water Quality Standards (GOST No. 2472-82 and 29183-93). This norm pertains to microbiological, chemical, and physical contaminants in drinking water, measured at the consumer’s tap.
  • Sanitary Rules and Norms on Protection of Surface Water from Pollution (SanPiN #4630-88). The Norms sets water quality norms for water units with purpose of drinking and domestic water supply; water protection requirements in case of different household activities; sanitary requirements for conditions of wastewater discharge to the surface water unit, etc.

The standards are currently under review.

International Conventions

Armenia has signed or ratified several international environmental conventions, including among others:

  • Convention on Environmental Impact Assessment in the Trans-Boundary Context (Espo, 1991);
  • Dublin Convention on Water and Sustainable Development (1992);
  • Convention on the Protection of World Cultural and Natural Heritage (1993);
  • Convention on access to information, public participation in decision-making and access to justice in environmental matters (Aarhus, Denmark. 1998);

IV.INSTITUTIONAL SETTING

In Armenia, the State Committee of Water Economy (SCWE) is the primary agency in charge of the management of water-related services and activities, whereas the Ministry of Nature Protection (MoNP) has overall responsibility for water resources and environmental protection and management, including hazardous waste management. The Water Resources Management Agency subordinated to the MoNP is responsible for the allocation and issuing of permits of water resources in Armenia. In addition, the Ministry of Health plays a leading role in controlling the spread of malaria and other water-borne diseases. Local and regional authorities (LRA) assume responsibility for natural resource use and protection within their jurisdiction.

The supervision of safeguard activities under the on-going project has been adequate. All safeguard activities were documented in Bank supervision reports, and the CMU prepared all sub-project safeguard screening activities diligently.

V.ADDRESSING ENVIRONMENTAL ISSUES

The on-going project isfinancing the rehabilitation of the existing water supply and sewerage systems and expenditures to improve management and operations of water supply/wastewater companies, which should contribute to improve the quality of life and the environment. Specific physical investments are defined only during the course of the project by the private operator. Although no new structures of significant size are envisaged under the project or the additional activities, some reconstructions can entail the installation of new facilities. In those cases, where type, location, sensitivity and scale of the projects are of nature and magnitude likely to have significant adverse environmental impacts, the borrower through the Project Implementation Unit will be responsible for preparing an Environmental Screening Assessment (EA) that examines the project’s potential negative and positive environmental impacts, compares them with those of feasible alternatives, and recommends any measures needed to prevent, minimize, mitigate, or compensate for adverse impacts and improve environmental performances. The current project does not involve land acquisition or result in involuntary resettlement, since most of the work will be done in properties owned by water/wastewater companies, municipal land or rights-of-way assigned to municipal infrastructure. The additional activities will also not involve any land acquisition. The EMPF provides and will continue to provide water/wastewater companies with an overall framework to guide the preparation and implementation of their annual work program. The EMPF will reflect the environmental guidelines and standards existing in RoA. As noted in Section III above, detailed legislation for Environmental Impact Assessment has been enacted in RoA in 1995.

The EMPF describes procedures for deciding on whether environmental assessment categories B or C are appropriate for each sub-project. Only environmental categories B and C sub-projects are expected. Therefore the EMPF will only develop procedures for categories B and C. Procedures and requirements to be followed for each category will include requirements for public information and disclosure, and will set implementation arrangements for ensuring full consideration of environmental concerns in accordance with WB OP 4.01 and Armenian laws and regulations.

VI.GENERIC POTENTIAL ENVIRONMENTAL IMPACTS AND MITIGATION MEASURES

The potential environmental impacts will vary with the subprojects depending on the project specific features. In general, the environmental issues that may need to be addressed during different stages of subprojects development will be related but not limited to:

Potential Positive Impacts:

  • Improvement of the public health. The project will increase water availability and improve the physiological and microbiological quality of water supplied to consumers, which should lead to a reduction of the water-borne diseases and a general improvement in public health.
  • Improvement of the public socio-economic situation. The project will improve the socio-economic situation of population of 306 urban and rural settlements.
  • Repair and improved operation of water supply system will ensure water savings, higher quality of drinking water thus reducing pollution threat. A possible reduction in the amount of raw water used could potentially improve the sustainability of water resource use, as well as leak correction and control will prevent water contamination and activation of land sliding and erosion processes.
  • Reduction of production cost and energy savings. Rehabilitation of pumping stations and conversion to gravity water supply will allow reducing amount of produced energy and substantial reductions in production costs.
  • Reduction of untreated wastewater discharge into the environment. Repair and improvement of wastewater collection will reduce risk of sewerage blockage and allow discharging treated wastewater of higher quality to nature environment.

Potential Negative Impacts: