MINISTRY OF ECONOMIC DEVELOPMENT 23 Niyazi Street AZ1066, Baku

Republic of Azerbaijan

ABSHERON REHABILITATION PROGRAM

INTEGRATED SOLID WASTE MANAGEMENT PROJECT

ENVIRONMENTAL MANAGEMENT FRAMEWORK

BAKU February 2008

E1827 V1

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List of Abbreviations............................................................................................. 3

Chapter 1 INTRODUCTION............................................................................... 4

1.1. Background..................................................................................... 4 1.2. Project Environmental Assessment Category ............................. 5

Chapter 2 PROJECT DESCRIPTION ............................................................... 6

2.1. Project Components....................................................................... 6 2.2. Brief Project Environmental Situation ........................................ 8

Chapter 3 Applicable Environmental Legislation and Policies ...................... 10

3.1. Overall relevant Azerbaijan legislation...................................... 10 3.2. National Environmental Impact (EIA) policy and legislation . 12 3.3. Relevant World Bank Safeguard policies .................................. 14

Chapter 4 Proposed Framework for EA guidelines and procedures related to

rehabilitation works under the Project (for three formal -

Azizbeyov, Garadagh, and Surakhani - and several informal waste

dump sites) ............................................................................................ 15

4.1. EA process description ................................................................ 15 4.2. Environmental Management Approach .................................... 16

Chapter 5 Institutional Arrangements for the EA process ............................. 17

Chapter 6 Public consultation and information disclosure............................. 20

6.1. Procedures for public consultation on the sub-projects ........... 20 6.2. Procedures for public disclosure................................................. 20

Annex 1 21

Background on characteristics of formal and informal waste

disposal sites financed by the Project ................................................. 21

Annex 2

Assessment of Azerbaijan’s EA/EIA Legislation and Practice........ 23

Annex 3

Briefing on World Bank OP 4.01........................................................ 28

Annex 4 30

EMP Checklist for Construction and Rehabilitation Activities ...... 30

Annex 5

Environmental Management Plan (EMP) ......................................... 38

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List of Abbreviations AP Absheron Peninsula ARP Absheron Rehabilitation Project DHCS Department of Housing and Communal Services EA Environmental Assessment EIA Environmental Impact Assessment EMF Environmental Management Framework EMP Environmental Management Plan EREG Environmental Review Expert Group ESP Environmental State Program IDP Internally Displaced People ISWM Integrated Solid Waste Management MENR Ministry of Ecology and Natural Resources MED Ministry of Economic Development NGO Non-Governmental Organization OP/BP Operational Policies / Bank Procedures PMT Project Management Team RPF Resettlement Policy Framework SEE State Ecological Expertise SOCAR State Oil Company of Azerbaijan Republic TOR Terms of Reference WB World Bank

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Chapter 1 INTRODUCTION

1.1. Background Azerbaijan has a long history of oil exploration and production that has left the country with a massive legacy of oil and other chemical related pollution generating environmental degradation both land based and off shore. The Government of the Republic of Azerbaijan launched in 2006 a proactive approach to cleaning up the oil contaminated environment and reclaiming polluted land for development in the country, specially in the Absheron Peninsula, by establishing a comprehensive Environmental State Program (ESP) involving decontamination operations as well as advanced environmental management. The ESP intends to address both the legacy as well as the on-going environmental pollution from the oil production activities and its implementation involves key ministries and agencies in the country. The Government of Azerbaijan has requested the assistance of the World Bank in financing activities under the proposed Integrated Solid Waste Management Project (the Project) that will help the country towards achieving the ESP goals, one of which is improvement of solid waste management. The Project aims at: (i) improving the solid waste management system for the overall Absheron Peninsula in line with the national solid waste management laws and international environmental legal requirements and standards; (ii) providing solid waste collection, processing, and disposal services in districts surrounding Baku, and enhancing management of the Balakhani Landfill and three other existing open dumps; (iii) reducing public health risks and environmental damage caused by inappropriate handling of solid waste in the project area; and (iv) enhancing public awareness about the importance of proper waste disposal and management. The Project will be wholly implemented by the Ministry of Economic Development (MED) through a Project Management Team (PMT) established within the Ministry responsible for day-to-day project management including monitoring project progress. The Project is part of the broader World Bank supported Absheron Rehabilitation Program (ARP) for cleaning up the environment in Azerbaijan. The program aims to steer implementation of the ESP towards a regional development approach to the rehabilitation of the Absheron Peninsula. It consists of multiple investment interventions selected from priority activities listed in the ESP and agreed with the concerned government agencies. The first stage of projects ready for implementation within this long-term collaboration program (ARP) focuses on (i) critical investments that will quickly tackle some of the worst environmental issues in Absheron and drastically improve living conditions for some of its residents, including informal settlers, and (ii) the development of environmental cleaning capacity. These first phase projects with a proposed implementation schedule during 2008-2013 are: (1) the Contaminated Sites Rehabilitation Project; (2) the Integrated Solid Waste Management Project (the Project); and (3) the Development of SOCAR’s Environmental Strategy and Large Scale Oil Polluted Land Cleanup Project.

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1.2. Project Environmental Assessment Category The proposed Integrated Solid Waste Management Project has been classified as environmental category “B” in accordance with the World Bank policy OP/BP 4.01 on Environmental Assessment given the envisaged improvement activities of four existing waste management sites1 and the rehabilitation or closing of several informal waste collection sites throughout the Greater Baku area. The proposed project investments also trigger the Bank policy OP/BP4.12 on Involuntary Resettlement and the OP 17.50 on Disclosure Policy. In order to manage the potential adverse impacts related to the proposed project investments, the Government of Azerbaijan (MED) prepared the following documents required to properly appraise the project: (i) an Environmental Impact Assessment (EIA) including an Environmental Management Plan (EMP) for the rehabilitation of the Balakhani landfill2; (ii) an Environmental Management Framework (EMF) for the rehabilitation of the operating Azizbeyov, Surakhani and Garadagh disposal sites and rehabilitation or closing works at selected informal dumpsites3, and (iii) a Resettlement Policy Framework (RFP) for the possible relocation of 6 IDP families living at the Balakhani landfill site and the mitigation of loss of income for the various waste pickers operating at different formal and informal waste dumps. The EIA, EMF, and RPF are designed to facilitate Project implementation and to ensure compliance with Azerbaijan's legislation, procedures and policies, international conventions and WB safeguard policies, in particular in terms of environment and resettlement. The EIA report including the EMP prepared for Balakhani landfill rehabilitation investments presents the existing environmental conditions and the current contamination level at the project site, summarizes the applicable local and international legislation (including ecological monitoring standards and requirements for discharge of harmful substances), describes the main environmental impacts and affiliated mitigation measures and required monitoring actions, and outlines the EMP implementation and institutional arrangements. The report also summarizes alternative options for the current operation of the landfill including a comparison of the environmental, health and social advantages of the selected project solution. The RPF developed by MED addresses the principles for the potential relocation of the Balakhani landfill residents4, as well as the income restoration of about 200-300 waster pickers that now earn some income from collecting and recycling different types of waste at the existing dump sites. The final safeguards documents will be disclosed in country in the local language and at the InfoShop in Washington, DC in English prior to project appraisal. Appropriate and site specific EMPs will be prepared during project implementation for the rehabilitation works proposed at the formal existing landfills (Azizbeyov, Surakhani, and Garadagh) or

1 The project will finance modernization of the operating Balakhani landfill as well as the existing Azizbeyov, Surakhani and Garadagh dumpsites; 2 These investments are financed under the project Component B; 3 These investments are financed under the project Component C 4 The Social Assessment developed for the project concluded that several families of IDP are currently living within the premises of the Balakhani landill.

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the closing activities at the informal dump sites, in line with the requirements of this EMF and with adequate public disclosure. The present Environmental Management Framework document has been prepared by MED to ensure that the proposed rehabilitation works at the three formal landfills and or closing works of several unofficial waste collection sites meet the national environmental requirements in addition to the WB safeguard policy on environmental assessment. The EMF document outlines the procedures for the management of environmental issues at three other existing dumpsites and at the uncontrolled landfills within the Baku area to be followed during the project implementation. The final list of informal dumpsites as well as the final technical options proposed for the other three formal dumpsites (e.g., closure of the sites versus their rehabilitation for continuation of operations) will be decided later based on the recommendations of an on-going study guided by investigations executed under the Master Plan. When the situation exists that details of sub-projects to be financed are unclear at the time of project appraisal, Frameworks are developed to ensure compliance with national laws and Bank policies. Therefore, this EMF provides guidanceon the process of proper project implementation including preventing, minimizing or mitigating site-specific environmental impacts possible during the rehabilitation works. The objectives and content of the EMF is described in general below and in detail in the attached annexes.

Chapter 2 PROJECT DESCRIPTION The overall project objective is to support the reform of the Greater Baku solid waste collection and disposal operations into an effective and sustainable system in the fields of (i) data collection and planning, (ii) buildup of operational, management and communication capabilities, (iii) the rollout of collection services, and (iv) the improvement of environmental conditions at the existing waste disposal sites. In order to reach this objective, the Project will include: (i) a major component to support the institutional transition process, (ii) investments in waste collection equipment to improve urgently the level of collection services, and (iii) investments to rehabilitate the existing three former waste disposal sites to meet acceptable environmental and health standards. 2.1. Project Components

The project will finance activities under the following components.

Component A - Institutional reform, capacity building and project management This component will support the incorporation of the current fragmented waste collection and disposal systems under one new entity to be established for Greater Baku and the build-up of this entity into an adequate and sustainable organization for integrated solid waste management with analytical work, management tools, promotional activities and training. Specific project related activities are grouped in four sub-components as follows: (1) Analytical Work and Reform Action Plan; (2) Capacity Building; (3) Outreach; and (4) Performance Monitoring and Project Management. Activities under Component A are not further discussed in the present EMF.

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Component B - Balakhani Landfill rehabilitation and management This component aims at upgrading operations at the current Balakhani site and deal with the negative environmental impacts from site operations. This component will finance equipment (weighbridges, bulldozers, etc) and civil works (fencing, waste coverage, drainage control, internal roads, etc.) to control environmental impacts and improve site-use effectiveness while other solid waste management options are developed. The investments include measures to prepare the site for continuation of disposal activities in an operationally and environmentally sound manner for at least another five years. The environmental assessment of the activities financed by this component are captured in the EIA including an EMP prepared by MED and therefore are not further discussed in the present EMF. Component C - Closure and management of other dumps This component will finance closure and cleanup of the informal dumps and improve management (or close) of three other existing formal sites to minimize environmental effects associated with the informal dumping locations and improve formal site conditions in the region. It is envisaged that all wild dumps will be removed and the extracted waste transport to the Balakhani site or possible to the other formal waste dumps. At this stage it has not been determined whether the three formal dump sites in Garadagh, Suraxani and Azizbeyov will be closed under the Project or will undergo rehabilitation investments for continuation of operations. A separate study guided by investigations executed under the Master Plan will form the basis to decide on this matter. The specific activities financed by this component will be finalized during the project implementation. They are classified as category “B” based on OP/BP 4.01 and the overall process for assessing and managing environmental impacts during the proposed works are presented in this EMF. Component D - Urgent collection equipment for 5 outer Baku districts This component will help increase service quality and availability throughout the region, including areas that now lack effective collection, by financing urgently needed trucks, containers and bins to improve solid waste collection coverage and service efficiency in the most acutely underserved areas of Greater Baku. The rollout of this equipment requires a careful design to make sure that (i) commencement of services goes hand-in-hand with fee collection; (ii) the operational structure is in place to manage and maintain the equipment; and (iii) sustainable mechanisms are in place to fund the operation and servicing of the equipment. Component E – Technical Preparation of post-Project investments This component will finance feasibility studies and environmental impact assessments needed to develop a landfill capacity and introduce transfer stations to maintain an effective enhanced collection system. The studies will define long-term solid waste management needs and will include a communications-based assessment of stakeholder perceptions, knowledge, and attitudes to help define program communication goals for the component on institutional reform and capacity building.

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The project is expected to have important and positive environmental impacts on the Absheron Peninsula that will lead to reducing public health risks and environmental damage caused by inappropriate solid waste management in the project area. Environmental benefits will arise from closing the existing informal dumps and improving the management of Balakhani landfill and three other formal dumps because water and soil quality will improve over time in the project area due to decreased leachate; air quality will improve due to reduced dust, odors, and gas emissions; and landscape will improve after remediation and potential land reclamation. It is anticipated that environmental risks will be relatively modest in the proposed project. Temporary environmental impacts are expected to arise primarily from investments supporting infrastructure works related to: (i) closing local uncontrolled dump sites and the rehabilitation of operating formal ones; and (ii) improving Balakhani Landfill through fencing, waste coverage, drainage control, internal roads, reducing fires, and mitigating all other environmental impacts related to improper landfill operation. Minor negative environmental impacts could occur during infrastructure rehabilitation works and may include: (i) traffic and noise generated by vehicles and landfill equipment; and (ii) temporary pollution of air, soil, ground and surface water. Long-term environmental impacts such as dust, traffic, noise, and gas emissions may be generated when waste collection/ disposal truck transport increases due to improved waste management. The above risks can be effectively anticipated in advance of project implementation and addressed by direct mitigation activities in the design, planning and construction supervision process as well as during the operation of the facilities. An EMP checklist that covers typical mitigation approaches to common civil works contracts with localized impacts and related monitoring actions that are compatible to the Bank safeguard requirements would be directly usable and applicable in bidding documents and as an integral part of contract documents for the respective civil works.

2.2. Brief Project Environmental Situation The project aims to mitigate environmental impacts of substandard solid waste disposal in the region. Currently, solid waste collected on the AP is disposed of at a number of locations, including both formal disposal sites, and numerous informal sites serving small population clusters and individual generators of solid waste. Most collected municipal solid waste is taken to the centrally located Balakhani Landfill, which has been in continuous use since 1963. Overall conditions at the Balakhani site are severely deficient; extensive fires burn continuously and produce smoke pollution that flows downwind to nearby residential and industrial areas, and solid waste accumulation at the site reaches into the adjacent lake. Until recently, there were four public disposal sites in operation in Baku in the Districts of Balakhani, Surukhani, Garadakh and Azizbeyov. In addition, there is another landfill serving the City of Sumgayit that is operated by ADES. The general locations of these sites in relationship to the various districts and population centers in the AP service area are shown on the Figure below.

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BalakhaniDisposal Site

District Collection Service

KASCO Waste Services

UP Ltd.

AzizbeyovDisposal Site

GaradaghDisposal Site

CURRENT ABSHERON PENINSULACOLLECTION RESPONSIBILITIES

NOTE:Collection and disposal services also provided byagencies such as SOCAR, the Ministry of Defenseand others throughout the AP.

KASCO RCP

SumgayitDisposal Site

ADES Joint Venture

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While they were all in operation, these disposal areas (except for the Sumgayit facility) were under the direct jurisdiction of the DHCS or its district offices. Recently, disposal operations ceased at the Surakhani disposal area as a result of complaints about its operation and conditions from nearby residential areas. Solid waste collected in the Surakhani District that was previously brought to this site is now being transported to the main Balakhani disposal area. Table 1 presents the general physical characteristics of the above referenced disposal areas. More information on the characteristics of each of the formal landfills financed under the project is presented in Annex 1.

Table 1. AP Formal Disposal Areas

Surface Area Total

Surface Area Active

% in Active Operation

Monthly Waste

Receipt Disposal Area Year

(hectares) (hectares) % (Cubic Meters)

Balakhani 1963 200 27 14% 11,390Surakhani 1994 2.5 0.4 16% 3,043Azizbeyov 1980 5 1.8 36% 4,041Garadakh 1994 25 3 12% 5,516Sumgayit 1999 60 10 17% 45,000

The environmental impact of any disposal areas is a function of a number of natural and anthropogenic factors. The geological, climatological, and hydro geological settings for the disposal site have a strong influence on the potential environmental impact associated with it. For example, disposal areas located in an arid environment (as is the case in AP) will develop considerably less leachate than a site located in an area with heavy rainfall rates. There are significant environmental and health consequences to the current disposal practices in the region. This is particularly the case with the operation of the Balakhani site where uncontrolled fires create smoke that is often blown toward industrial and residential areas on the other side of the lake abutting the site. Dangerous substances, most likely, contained in the smoke creates a health risk for downwind receptors in the path of the transported smoke and certainly for disposal area workers, waste pickers, and collection personnel delivering waste to the Balakhani site. In addition, the generally arid conditions at the AP disposal sites should help to minimize groundwater and surface water contamination as a result of decreased leachate generation resulting from dry conditions.

Chapter 3 Applicable Environmental Legislation and Policies

3.1. Overall relevant Azerbaijan legislation The most relevant Azerbaijan environmental sector and health safety related regulations applicable to the proposed Project are the following:

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1) The Law on Environment Protection (1999) establishes the main environmental protection principles, and the rights and obligations of the State, public associations and citizens regarding environmental protection. It also establishes the principles and requirements for the preparation of the State Ecological Expertise (SEE) which is the official EIA procedure in Azerbaijan. The Law states the basics of SEE in Azerbaijan as a process of “identification of the environment’s correspondence with the quality norms and ecological requirements aimed at revelation, prevention, and prediction of possible negative impacts of economic activities on the environment and related consequences” (Article 50). Such definition presents a technocratic approach to environmental issues, whereby the legislation provides the economic activities with certain limits for using natural resources rather than mechanisms to achieve minimal environmental impacts through preventive and mitigation measures. The other key document forming the legal basis for EIA is the Handbook on the Process of Environmental Impact Assessment in Azerbaijan (1996) on which more detailed information are presented in the following sub-chapter. 2) The Environmental Safety Law (1999) indicates that land users are responsible for rehabilitation of damaged soil and other natural resources for their subsequent use. Specifically, the law prohibits import of radioactive wastes, processed re-usable nuclear fuel, other radioactive substances and nuclear materials. 3) The Law on Radiological Safety of Population (1997) calls for ensuring radiation safety in industrial entities during operation. The Law also establishes main principles of government policy on meeting radiation safety requirements, as well as environmental norms providing safety of employees and population in areas affected by use of radioactive sources. The Law provides for compensation which can be claimed by population for damage to their health, property and life during accidents. 4) The Law on Sanitary and Epidemiological Safety (1992) establishes rights and obligation of citizens and national monitoring institutions in provision of sanitary and epidemiological safety; basic principles of establishing sanitary-hygienic norms and standards; sanitary and epidemiological requirements for industrial entities, to be met at design, construction and operation stage, and for other economic activities. According to Article 39 of this Law, and Criminal Code of Azerbaijan Republic, violating sanitary-hygienic norms and rules causes criminal responsibility. 5) The Law on Protection of Atmospheric Air (2001) establishes norms for mitigating physical and chemical impacts to atmosphere, as well as provides for legal basis for state registration of negative impacts on atmosphere, for control over air protection, solving disputes emerging due to pollution of atmosphere. 6) The Land Code (1999) sets mandatory requirements for remediation of all soils after their use, including soils where mining works have been conducted. 7) The Soil Fertility Law (2000) sets up requirements for land owners, leasers and land users to protect fertile top layer of soils during any construction activities. The Law fixes

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specific time frame for restoration soil fertility as 3, 3.5 and 5 years based on specific soil characteristics. 8) The Law on Industrial and Domestic Wastes (1998) determines main principles of the state policy in solid waste management; obligations of the state authorities responsible for solid waste management, including allocation of plots for waste processing and disposal, coordination of waste recycling activities, setting rules for trans-boundary transportation of wastes, licensing of waste generating activities etc.; and also describes property rights. The Law specifies requirements for design, construction and reconstruction activities, for waste collection, transportation and disposal (prohibited within residential city areas and other residential settlements, in resorts, forest and recreational zones, in the areas where underground and potable water is available and in the zones of mining activities), for waste processing sites (shall be properly equipped with waste processing tanks, signage and control access points shall be available). The Law also encourages introduction of technologies for minimization of waste generation by industrial enterprises. The Law envisages both state and community (public) control over the waste generating activities and waste management, and imposes payments for collection, disposal, use and processing of wastes. 9) The Law on Public Health (1999) sets out basic principles for public health protection and the health care system. The Law also assigns liability for harmful impact on public health, stipulating that damage to health resulting from polluted environment shall be compensated by the entity or person that caused the damage.

In addition, a large number (some 75+) of Decisions of the Cabinet of Ministers have been issued to help interpret the body of environmental legislation and related Presidential Degrees and Orders. Furthermore, Azerbaijan is a party to several international conventions regulating the EIA process and waste management issues including: (i) the Aarhus Convention on Access to Information, Public Participation in Decision-Making, and Access to Justice in Environmental Matters; (ii) the Espoo Convention on EIA in Trans-boundary context; and (iii) the Basel Convention on Hazardous Wastes Transportation.

3.2. National Environmental Impact (EIA) policy and legislation The current EIA system in Azerbaijan is rooted in the old Soviet central planning system and largely follows the procedure of State Ecological Expertise (SEE) adopted by the former Soviet Union in the late 1980s. Unlike EIA, and in line with the definitions of SEE in the Law on Environmental Protection (EP), the core purpose of the SEE system lies in the formal verification by state authorities of all submitted developments for their possible environmental impacts, regardless of their scale, sector type or nature. The Law on EP states that SEE is the official EIA procedure in Azerbaijan, but it is not a specific EIA related legislative document. According to Article 54.2 of the Law, EIAs are subject to SEE which means that the environmental authority - Ministry of Ecology and Natural Resources (MENR) - is responsible for the review and approval of EIA reports submitted by developers. The Law on EP establishes the basis for the SEE procedure,

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which can be seen as a stand-alone check of compliance of the proposed activity with the relevant environmental standards (e.g. for pollution levels and discharges, noise). In addition, the Law on EP determines that projects cannot be approved without a positive SEE resolution. The basic procedures for the conduct of EIA are laid down in the 1996 Handbook on the EIA Process in Azerbaijan. Although these provisions are not technically legally binding, compliance with them is to all intents and purposes regarded as mandatory. The EIA Handbook introduces the main principles of the ‘western’-type EIA process to the country, and details (i) the EIA process, i.e., the sequence of events, roles and responsibilities of applicants and Government institutions, charges; (ii) the purpose and scope of the EIA document; (iii) public participation in the process; (environmental impact review); and (v) environmental review decision. It defines EIA as a process aimed at identification of, evaluation of, mitigation of, or avoiding, possible negative impacts of development proposals, but also mentions principles of integrated approach of such assessment. It is acknowledged to introduce transparency in the process of decision-making through involving the interested public in the discussion of the proposed activities and taking the public opinion into account (Paragraph 1.1.) The EIA definition also suggests that not only should the developer design their proposals in a way least harmful for the environment, but they also should consider certain activities under each proposal to eliminate or minimize its possible negative impacts. The EIA Handbook also outlines the main parties to the EIA process, which are the Developer, the Environmental Authority (MENR), the Experts and the Public. The Developer is responsible for preparation of all EA related documentation, and for further implementation of proposed mitigation measures. The MENR has to review the documentation submitted by the Developer, and make a decision on issuing environmental Permission. The Experts are involved in analyzing all applications and drawing their conclusions on the proposed activities. The Public is expected to provide its feedback to the proposed activities through various types of public involvement techniques. The EIA principles outlined by the Azerbaijan’s legislation is in general consistent with international principles, calling for transparency, integration of environmental, social, engineering, economic and other assessments. In terms of timeframes, the EIA Handbook provides for one month for the Environmental Authority to make a decision on EIA scope, and for 12 months for the Developer to submit EIA after the Environmental Permission is issued by the Environmental Authority. Not all EIA stages are adequately covered by the local legislation. A distinctive screening list with activities that are likely to cause significant environmental impact is not established either by the Law on EP nor by the EIA Handbook. Consideration of alternatives is not explicitly required by any of the two basic legal EA documents. However, in practice most of the developers, in an effort to meet requirements of international donors and achieve higher environmental performance do cover alternatives

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and their impacts in their EIAs. On the other hand, the reporting requirements are specified in detail in the EIA Handbook. In relation to public participation, the Law on EP and the EIA Handbook do not contain clear regulations/procedures on public participation and the access for the public to the relevant information and thus do not meet international requirements for public participation at the present time. Public participation is mainly understood as public access to EIA documentation, but has no role in the decision-making process. Public consultation requirements for this Project are outlined in Chapter 6. Monitoring and post-project analysis are among the weak aspects of Azerbaijani EIA system, covered only by rather vague requirements of the Law and Handbook for monitoring and audit of economic activities. This can partially be explained by the lack of adequate mechanisms of monitoring and up-to-date system of internationally applied indicators. Annex 2 provides the description of Azerbaijan’s EIA procedure in more details, including the identification of the investor’s and relevant authorities’ obligation. This procedure will be mandatory for the cleanup investments under the proposed Project.

3.3. Relevant World Bank Safeguard policies For the proposed Integrated Solid Waste Management Project, the relevant safeguard policies to be considered at all stages of project preparation and implementation are: (i) the OP/BP 4.01 on Environmental Assessment; the OP/BP 4.12 on Involuntary Resettlement, and (iii) the OP 17.5 on Public Disclosure. These policies and procedures are available for view and download on the World Bank’s external website5.

The World Bank undertakes environmental screening of each proposed project to determine the appropriate extent and type of EA. The Environmental Assessment is defined through Operational policies OP 4.01. The Bank classifies all proposed projects into one of four categories6, depending on the type, location, sensitivity, and scale of the project and the nature and magnitude of its potential environmental impacts. In accordance with the OP/BP 4.01, the proposed Project has been classified as environmental category “B”. A proposed project is classified as Category B in accordance with the OP 4.01 if it is likely to have less significant adverse environmental impacts than those of Category “A” projects. The scope of EA for a Category “B” project may vary form project to project, but it is narrower than that of category “A”. Annex 3 provides a detailed explanation on the OP 4.01 policy applicable in this project. The WB OB/BP on Involuntary Resettlement requires WB-assisted projects to avoid or minimize involuntary land taking. If such cannot be avoided, displaced persons need to be meaningfully consulted, compensated for lost/damaged assets and assisted in restoring or improving their living standards and livelihood. The policy requires that if involuntary land taking and resettlement become necessary, a clear plan for compensating and

5 http://lnweb18.worldbank.org/ESSD/sdvext.nsf/52ByDocName/SafeguardPolicies6 The four environmental categories are: category A; B; C or FI, on which detailed explanations can be found in the OP/BP 4.01.

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assisting displaced persons be prepared by the borrower by appraisal for WB review. Such a plan must be substantially completed prior to the commencement of civil works. An Involuntary Resettlement Policy Framework has been prepared for the proposed Project and is the subject of discussion in separate document. The WB policy on Public Disclosure follows specific procedures according to which the Borrower (i.e. the MED) will have to make the draft EIA Report, EMF, and RPF documents available in Azerbaijan at a public place accessible to project-affected groups, different stakeholders and local NGOs. The Borrower must also officially transmit these documents to WB. Once the reports have been locally disclosed and officially received and approved by WB, the WB will also make them available to the public through its Infoshop.

Chapter 4 Proposed Framework for EA guidelines and procedures related to rehabilitation works under the Project (for three formal - Azizbeyov, Garadagh, and Surakhani - and several informal waste dump sites)

4.1. EA process description The sub-projects including investments related to the rehabilitation of three formal landfills and closing of several other informal dump sites in Baku area financed under the proposed Project will have to conform to current Azeri environmental laws and comply with international requirements and the regulations and the procedures of the WB’s safeguard policies, including Environmental Assessment (EA) policy outlined in the Operational Policy 4.01 and the Involuntary Resettlement (OP 4.12). Table 2 summarizes the approach to be completed by the Borrower (MED and PMT) to streamline the EA process applicable to the above investments, which meet both the Bank and the local environmental assessment requirements. Table 2 Management of the EIA process for proposed rehabilitation of formal and informal dump sites sub-projects Steps of EIA process Procedures to be followed by MED

based on the Azeri EIA legislation7 and on the WB OP 4.01 Sub-Project Preparation Stage Screening and scoping of sub-projects (approx. 1 month) (Category B based on OP 4.01)

• MED submits an application (e.g., project brief) to MENR with copy to WB;

• Decision on EIA to be conducted and notification of MED on the scope and depth of the study by MENR

Sub-project EIA/EMP Preparation, Review and Disclosure Stage EIA/EMP report preparation and its dissemination

• Prepare EIA or EMP based on the EMP checklist before commencement of works as addressed in Annex 4;

• Submit draft EIA/EMP to WB for review and clearance before disclosure in country;

• Submit EIA/EMP to MENR review for SEE; • Prepare final draft EIA/EMP including MENR,WB and public

7 EIA procedure according to “Handbook of the EIA process in Azerbaijan”, 1996

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comments if any; • MENR issue the SEE (approval of the project); • Submit officially final EIA/EMP report to WB for “no

objection” Sub-project Implementation and Monitoring Stage Implementation of the EMP • MED/PMT supervise works in accordance with EMP and

submits progress reports to WB and MENR

The project will include small to medium scale rehabilitation works connected to modernization, renovation or closing of existing waste collection sites. These rehabilitation works will be subjected to a site-specific environmental screening and review process. This process will minimize site-specific environmental impacts and will use a standardized appraisal format (“Environmental Management check list”) that includes, but is not limited to, review of: (i) current environmental problems at the sites (soil erosion, water supply contamination, etc.); (ii) potential environmental impacts, if any, due to the project (disposal waste from construction, construction noise and dust, vibrations, etc); (iii) Potential impacts if any after the project. It is anticipated that this format (Annex 4) provides the key elements of an Environmental Management Plan (EMP) to meet World Bank Environmental Assessment requirements under OP 4.01.

4.2. Environmental Management Approach

The EMF includes a checklist-type format that provides “pragmatic good practice” in a user friendly format that is compatible with Bank’s safeguard requirements. A blank sample is attached as Annex 4.

The checklist-type format attempts to cover typical mitigation approaches to common civil works contracts with localized impacts and provides information at the level of an Environmental Management Plan (EMP) (Annex 5) to meet World Bank Environmental Assessment requirements under OP 4.01. The intent is that this checklist would be directly usable and applicable in bidding documents and as an integral part of contract documents for civil works under Bank-financed projects.

The checklist has three sections:

• Part 1 constitutes a descriptive part that describes the project specifics in terms of physical location, the institutional and legislative aspects, the project description, inclusive of the need for a capacity building program and description of the public consultation process. Attachments for additional information can be supplemented if needed.

• Part 2 includes the environmental and social screening in a simple Yes/No format followed by mitigation measures for any given activity.

• Part 3 is a monitoring plan for activities during project construction and implementation. It retains the same format required for standard World Bank EMPs. It is the intention of this checklist that Part 2 and Part 3 be included as bidding documents for contractors.

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The practical application of the EMP-checklist would include the filling in of Part 1 to obtain and document all relevant site characteristics. In Part 2 the type of foreseen works, as obtained from the design documents, would be checked and the resulting provisions listed below highlighted (e.g. by hatching the field or copy pasting the relevant text passages into the special provisions of the tender documents.

The whole filled in tabular EMP is additionally attached as integral part to the works contract and, analogous to all technical and commercial terms, has to be signed by the contract parties. More information on the application of this EMP Check list is presented in the following chapter.

Chapter 5 Institutional Arrangements for the EA process Overall, the proposed subprojects will be subject of national and WB environmental procedures including: (i) subproject screening and environmental classification (confirmed as Category “B”); (ii) application of good practice environmental and social guidelines; (iii) implementation of required environmental work; and (iv) monitoring and supervision of subprojects. The MED via PMT will be responsible to prepare and implement the proposed sub-projects while ensuring that the required environmental procedures outlined in Table 2 are followed. In the event of any work deviations or unreasonable delays the MED will seek the advice of the relevant parties and provide any necessary support and advice to overcome the problems. The PMT will be in charge of overall project management and to ensure proper preparation and implementation of the project-specific EIAs/EMPs. At the national level, the key environmental institution in Azerbaijan is the MENR which divides his activities in several areas such as environmental policy development; environmental protection; water monitoring and management; protection of marine (Caspian Sea) bio-resources; and bio-resources and protected areas management. At the level of MENR, the State Ecological Expertise (SEE) Department is the body responsible for carrying out SEE and making decisions on environmental soundness of development activities through issuing environmental permits. With regard to operations, the Department of Housing and Communal Services (DHCS) of the Baku City Executive is responsible for delivering solid waste services throughout Greater Baku. During the project construction and operation, the MED via PMT and the Regional Monitoring Departments of the MENR will be responsible for the supervision and enforcement of environmental management plans (EMP) and carrying out routine monitoring during the operational phase of the projects. The renovation and/or closing of the dump sites will be carried out by contractors selected through competitive procedures; they will be responsible for the proper implementation of mitigation measures during the rehabilitation stage defined in the documents which will be a part of the bidding package. The works done by the contractors will be supervised by independent technical consultants who will ensure that

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the related environmental mitigation measures are strictly applied and reported to MED through PMT. A brief overview of the main institutional arrangements in the EA process in Azerbaijan including supervision and enforcement of EMPs is presented in Annex 2.

The EA process for the proposed sub-projects outlined in Table 2 and the institutions responsible for its implementation are described in detail below: Site specific environmental screening –the MED will prepare a sub-project/site specific brief (official application) in accordance to the EIA Handbook to the MENR for their review and assessment (including scoping). For this purpose, the MED will carry-out the preliminary screening of the subproject and identify the environmental classification (in this case, confirmation of Category B as per OP 4.01). Part 2 of the tabular EMP can be used to select typical activities from a “menu” and relate them to the typical environmental issues and mitigation measures. Based on the completed information, the MENR (SEE) has one month to examine the application, screen the proposed subproject for its potential environmental and social impacts in compliance with national laws and norms, consult with experts and the public, and inform the MED of the scope and depth of the EIA study. Once the decision is given by MENR, the borrower (MED) will engage the consultants to prepare the draft EIA/EMP. Subproject EIA/EMP preparation: According to the MENR screening decision on the type of EA, the MED will proceed as indicated in Table 2 (developing an EIA or an EMP as in Annex 4 and organizing public consultation or disclosure on the draft document). MENR has 3 months to complete the review before providing its decision. The MED will notify the affected parties for the public consultation or disclosure of the EIA/EMP report. Finally, the MENR will decide on the approval or rejection of the sub-project based on a written explanation. MED will perform an overall quality assurance that the documents prepared meet the World Bank and Azerbaijan environmental legal requirements. The WB will provide no objection to the disclosure result and final EIA /EMP. Overall Project Implementation and Monitoring: During the detailed design and tendering phase, the specifications and bills of quantities for individual works, integrating environmental provisions in form of a tabular EMP (see Annex 4) will be prepared. This phase also includes the tender and award of the works contracts and in this phase the Contractor’s obligations for environmental measures during the works are contractually fixed. The MENR is responsible for the management of environment and the state control of ecological safety. MENR through its department of Environmental Policy and Environment Protection will perform inspection visits during the rehabilitation works to ensure compliance with local environmental standards and regulation.

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The MED in cooperation with PMT will have overall responsibility for ensuring implementation and monitoring of the EMP for each subproject. However, the various parties identified in the EMP (contractors, construction supervisors, supervisor engineers) are immediately responsible for implementing and monitoring their own activities in accordance with the current local construction standards. MED will designate within the PMT a specialist responsible for the environmental compliance with related EMP requirements of the rehabilitation investments proposed at specific sites. MED, through its designated specialist, will monitor the implementation of the EMPs based on unannounced supervision visits at the sub-project sites during the cleanup works. The monitoring plan in Part 3 of the EMP table in Annex 4 is that basis to verify the Contractor’s compliance with the required environmental provisions. During site visits, MED will be responsible for observing the compliance with all environmental aspects at the site as stipulated in the Contractor’s ToR and as highlighted in the EMP mitigation and monitoring plans (including verification of all environmental permits requested for the Contractor on the site). The MED and local authorities where the sub-projects will be carried out will ensure that the following are carried out in a proper manner: (i) supervision on the potential environmental impacts during works including construction noise, air quality, water quality, etc.; (ii) supervision on the compliance with contractor’s performance of works without disruption of regular traffic; (iii) ensuring that the contractor understands and follows its obligations on overall maintenance of the construction site related to environmental protection measures; (iv) ensuring that a work and occupational health safety plan is on the site (during work performance) along with valid environmental permits and related documents for proper implementation of works; (v) supervision of proper removal of construction waste to the dump site according to local regulations; (vi) monitoring of mitigation measures of environmental pollution impacts at the construction site (e.g., construction noise; brief assessment of short-term impacts during constructions on surface waters, etc.). At present, practical experience in the implementation and management of EMPs in the country appears to be weak and skilled technical staff is not available at either central or the local level, where EMP implementation will have to be monitored. Institutional strengthening for EMP supervision and enforcement will be provided under the Project through regular training focusing on practical aspects of environmental monitoring and mitigation during the project preparation and implementation stages. The World Bank will supervise the project preparation, implementation, and safeguard compliance on regular basis and conduct site visits, and review the subprojects EMPs. Regular supervision will as well include continuous monitoring of environmental compliance with EA/EMP. Reports will be prepared on each of the environmental supervisions, specifying mitigation measures and assigning responsibilities for implementation. The findings and recommendations of the reports will be discussed, as appropriate, with organizations and neighbors concerned. In the semi-annual reports that MED will submit to the Bank, it

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would provide information on the environmental compliance of the Project, taking into account Bank and local procedures, highlighting environmental issues arising from the project supported activities, the status of mitigation measures and next steps.

Chapter 6 Public consultation and information disclosure The current EMF, presenting a guidance tool to ensure that the proposed sub-projects financing the rehabilitation of three existing landfills and the closing or rehabilitation of several informal dump sites in Baku area comply with the existing environmental regulations and standards in Azerbaijan as well as with the World Bank’s Safeguards Policies, was publicly disclosed on February 21, 2008 on the MED website. Several other project relevant safeguard documents were disclosed and discussed during a public meeting held on February 20 including the draft EIA for the Balakhani lanfill rehabilitation works and the project and the project RPF. Minutes of the meeting and comments received from the public are incorporated in the final draft EIA and disclosed further in country and at the WB Infoshop.

6.1. Procedures for public consultation on the sub-projects For projects falling into WB Category B projects, MED will consult the project affected groups and local NGOs about the project's environmental aspects and take their views into account during the sub-project preparation. For meaningful consultations, MED will provide relevant information to the public in an appropriate form and language, and in timely manner.

6.2. Procedures for public disclosure For Category “B” sub-projects, MED will ensure that the findings of the EIAs/EMPs are accessible to the public affected by sub-project and NGOs in local language. Also, MED will ensure that the EIAs/EMPs are officially submitted to WB in English for review and clearance. WB will disclose the drafts and final EIAs/EMPs in the Infoshop for overall public review.

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Annex 1

Background on characteristics of formal and informal waste disposal sites financed by the Project

The Azizbeyov Disposal Areareceives approximately 2.5% of the solid waste generated in the AP service area (excluding the waste generated in Sumgayit). The Azizbeyov landfill is located on a hillside to the east of the village of Shuvelan and has been in continual use since 1994. The site has an overall area of approximately 5 hectares. Approximately 35% of the available disposal area has been filled which would imply a remaining capacity equivalency of approximately 20 years. The site has no security fencing and there is little effort made to spread and compact the solid waste after it is deposited. The disposal sites in Garadakhactually consist of three individual locations within the district of Garadakh. These locations are operated by the DHCS district office and have been in use since 1994. The main site consists of 25 hectares located northeast of Lokbatan village. To date, only about 3% of the main site is filled. The site is located in a setting where natural ravines cause the flow of surface water through the disposal active area. It does not appear that the solid waste placed in the main cell is routinely spread or compacted. In addition, while soil cover appears to be readily available, the actual process of covering is sporadic. As is the case with the other disposal sites in the region, there is no fencing or other means for assuring site security or preventing unauthorized access. An additional disposal cell in Garadakh is located in a location at a higher elevation than the main cell. This secondary site is located to the east of the road from the village of Lokbatan to Gobu. The site has significant topographical relief and is in an area where there are a number of abandoned oil wells including some that are located within the disposal area itself. This secondary location is only used when the access road to the primary location is unusable which has been reported to be as frequent as 2 to 3 times per month. Similar to the main disposal location, cover application is sporadic. It is noteworthy that, at the time of a site visit by the mission, the primary disposal location was inaccessible. In addition to the above, there is another small disposal area located in an abandoned quarry that was developed by Garadakh Cement. There is little formal operation of this site and waste is placed randomly. A notable feature of this location is a 600 mm gas main that runs through the site. Until its recent closing, the Surakhanidisposal area received approximately 9% of the waste delivered to formal disposal areas in the AP service area (excluding the waste generated in Sumgayit). This waste primarily came from the Surakhani District collection area. Approximately three months ago, the District closed the disposal area and began transporting their solid waste to the Balakhani disposal area. When it was operational, the disposal area was managed by the Surakhani DHCS district office. The site is located about 3 km south of Surakhani village and began disposal operations in 1994. An initial landfill cell was constructed and utilized from 1994 to 2002. This original cell was then capped with soil cover. The most recent cell was used for approximately 3 years before site closure and, at closure, was expected to have remaining capacity for about two years

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of further operations based on the historical solid waste receipt levels. The entire site covers an area of about 2.5 hectares and its potential for expansion, prior to closure, was minimal since it was actually constructed in a quarry excavation which establishes its lateral constraints. In addition to the above formal disposal locations, there are a number of other informal disposal sites throughout the AP that have evolved as a result of IDP settlements or through the operations of other agencies such as the State Oil Company (SOCAR). Ultimately, with the evolution of a comprehensive ISWM program that includes an effective collection system throughout the AP service area, some of the solid waste placed in these other informal sites will, most likely, be captured and transported to one of the formal disposal location or new locations developed in the future.

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Annex 2

Assessment of Azerbaijan’s EA/EIA Legislation and Practice8

1. The parties to the EIA process The Azeri EA system is based mainly on two documents: the Law on Environmental Protection (EP) (1999) and the non-binding EIA Handbook (1996). The main parties to the EIA in Azerbaijan, outlines in the EIA Handbook, are the Developer, the Environmental Authorities, the Experts and the Public. Of these, the Developer is responsible for the completion and submission of the Application for the Environmental Permission (hereinafter ‘Application’) and all; the related fees, for undertaking and EIA and public consultations and for the subsequent documenting of both processes; and for the compliance of the proposed activity to the conditions of approval during the whole project life-cycle The main responsibilities of the Environmental Authority include reviewing Applications; consultations with Experts; making initial public enquiries; informing the Developer of the required depth of the EIA process; appointment of the date for the Scoping Meeting; setting the Environmental Review Expert Group (EREG) for consideration of the EIA Document and announcing the results to the public; attaching any necessary environmental performance-related conditions to the Environmental Permission; and processing the relevant monitoring and audit information The Experts, comprising the EREG, are responsible for undertaking EIA process according to the field of their expertise, analyzing all Applications and comments received from the public, as well as for drawing its own conclusions on the proposed activities. The Public is generally “anyone who is in any way affected by the proposal o shows a genuine interest in it. After the information on the development proposal has been made available to the Public, the latter is expected to provide its written comments and suggestions on the proposed activity to the Developers through various types of public involvement techniques (such as public hearings, discussion forums, public and consultations). 2. EIA principles As provided in Article 53 of the Law on EP, SEE is carried out in accordance with: (i) Azerbaijan’s international legal commitments; (ii) Principles of legality, scientific validity, transparency, integration of environmental, social, engineering and technological, technical, architectural and planning, economic and other assessments; (iii) The results of comprehensive socio-economic and ecological assessment of environmental impacts of economic activities; (iv) the people’s right to healthy

8 Extracted from the “Assessment of Effectiveness of EIA system in Azerbaijan”, CENN (2004).

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environment the principles of sustainability, (v) the presumption of potential danger of the unregulated use of natural resources, the risk of disasters, and (vi) the necessity to preserve the nature as an integral part of the society. 3. EIA timeframes The EIA Handbook specifies that within one month after the submission of the Application the Developer should be informed of whether the proposed activity requires a full EIA or not (Paragraph 2.7). In case a full EIA process is needed, the Environmental Authority must make its decision on the proposed development within three months upon the submission of the EIA documentation. Thus, the timeframes of the EIA process for each particular project depend on the type of the activities under consideration. At the same time, the EIA Handbook states that the Developer is not limited, in terms of time, in undertaking investigations and producing an EIA report, but is obliged to submit the report within 12 months after the Environmental Permission is issued by the Environmental Authority. 4. EIA objects Article 54 of the Law on EP lists activities subject to SEE. According to the list, following economic activities should undergo SEE before they can be implemented: (i) drafts of state and local programs for development and allocation of labor forces according to sectors and regions, (ii) feasibility studies (the so-called technical-economic substantiation documentation), (iii) projects of construction (reconstruction, extension, technical upgrading) and demolishing of economic objects and complexes, (iv) OVOS documents, (v) documents related to development and import of new techniques, technologies, materials and substances, (vi) draft vocational and regulatory and technical documents on environmental protection, (vii) ecological conditions established as a result of economic activities or emergencies, (viii) ecological conditions of the region, isolated natural objects and ecosystems, (viii) ecology related sections of the draft agreements providing for use of natural resources based on the decision of the respective executive authority. As stated in the EIA Handbook, “the EIA Process is applied to all development proposals in principle” (Paragraph 2.1). The Environmental Authority further decides on the extent to which the EIA procedure should be applied to each particular activity based on the severity of the likely impacts which the activity under construction may have. 5. Contents of the EIA report The EIA Handbook defines the content of EIA reports as separate documents describing the proposal, the environmental baseline, potential environmental impacts of the proposal, and the measures to avoid, remedy or compensate for them, and containing of introduction and conclusion sections (Paragraph 3.2.2.).

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6. EIA stages 6.1. Screening

There is no distinctive screening procedure outlines by either the Law on EP or the EIA Handbook, in the country, despite the ratification of the Espoo Convention by Azerbaijan in 1999. According to the Law on EP, nearly all types of developments, regardless of their scale and sector, are subject to SEE, e.g. state and local development programs, feasibility studies, new developments as well as new construction, extension and upgrading of the existing objects, new technologies, regulatory and technical documents on environment protection, and environmental sections of draft contracts for the use of natural resources (Article 54). The EIA Handbook lays down a two-tiered EIA procedure, in which the Developer is required to submit an Application containing basic information on the proposal for any type of activities. Based on the experience of the past EIAs and sometimes on screening lists of various organizations (e.g. the World Bank), rather than on specifically developed lists of activities. The Environmental Authority further decides on the necessity of a full-scale EIA for each particular development 6.2. Scoping

There is no distinctive scoping process outlined in the Law on EP. The Law, however, mentions tasks of the SEE, which include identification of the degrees of ecological safety of the planned and implemented economic activities; assessment of the compliance of the developments with the environmental and health legislation and regulations; and verification of the proposed nature protection measures (article 52). According the EIA Handbook, the Environmental Authority holds a Scoping Meeting for the Developers, experts and representatives of the concerned public, aiming at reaching the consensus of the scope of the EIA (Paragraph 3.2.1.). In case the consensus has not been reached, the Environmental Authority decides on the contents of the EIA Documents which the Developer should then produce. 6.3. Assessment –environmental studies

The EIA Handbook requires a study of baseline environment as part of the EIA Document (Paragraph 3.2.2). A description of the environment should cover physical, ecological and social aspects of any development and should relate to all the sites affected by the proposed developments, but nevertheless, in the opinion of the majority, the baseline studies are one of the strongest features of the EIA process in Azerbaijan 6.4. Alternatives, mitigation and impact management

The EIA Handbook, requires the Developer to include the description and assessment of all the potential adverse environmental impacts of the proposed activity, as well as the description of any measures to avoid, reduce, or compensate for, these impacts, in the

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EIA documentation (Paragraph 3.2.2.). The EIA Handbook does not require discussion of alternatives, including the so-called “do-nothing” alternative, and their potential impacts, in the EIA documentation except the description of alternative technologies. There is currently no methodology that would guide developers, EIA experts, the public involved, environmental authorities and the decision-makers through the process of dealing with such effects 6.5. Reporting

The purpose of the EIA Report, as stated in the EIA Handbook, is to describe the proposed development, the environment likely to be affected by this development, and to identify potential impacts and suggest ways to m minimize these impacts (Paragraph 3.2.2.). The EIA Documents are expected to provide the Environmental Authority and the affected public with the relevant information about the planned activity, and to convince the stakeholders that the negative impacts are going to be controlled and minimized to acceptable levels. The reporting should be done in a way acceptable to, and easily understood by, the public at large, which can be achieved through bringing all the technical details in annexes, and using maps, diagrams and photographs. During the public hearings, the relevant documentation is provided to all the interested parties to the process through the Environmental Authority (in hard copies and, most recently, through the Internet) which is responsible for making it available through central libraries and mass media. Reporting to the Environmental Authority should also reflect upon the most important comments received from the public as well as statistical data on all submissions from the public on justification of why some of these comments have not been included in the documentation on proposal 6.6. Reviewing

In accordance with the EIA Handbook, the EIA Document review for those developments, which are expected to have significant impacts and are thus required to undergo EIA, is undertaken by Expert Group chaired by the Environmental Authority, but comprised of experts hired from outside (Paragraph 5.1.). The outcomes of such reviews of the EIA documentation, statistical information on submissions received from the concerned public, comments on the proposal and the environment, analysis of the potential environmental impacts of the development, conclusions, and recommendations. 6.7. Decision-making and environmental clearance (permitting & licensing)

One of the distinguishing features of the SEE system is the obligation for any development activity to obtain a positive SEE resolution before receiving an approval for implementation (Article 51). The EIA Handbook unambiguously states that the Developer is obliged to obtain the Environmental Permission for any type of economic activities through submitting an

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Application to the Environmental Authority, carrying out EIA, and submitting the EIA Document to the Environmental Authority for approval (Paragraph 2.3.1). 6.8. Post-decision monitoring –monitoring, implementing and auditing

As stated in the EIA Handbook, the Developer is responsible for continuous compliance with the conditions of Environmental Permission through a monitoring program (Paragraph 2.3.1.). The Environmental Authority undertakes random inspections of the implementation of proposed activities in order to verify accuracy and reliability of the Developer’s monitoring data. It is the Developer who is responsible for notifying the Environmental Authority and taking the necessary measures in case the monitoring reveals inconsistencies with the conditions of the Environmental Permission. 7. Public participation in the EIA process The EIA Handbook’s public involvement procedure is rather unstructured and vague. It requires informing the affected public about the planned activities twice: when the Application is submitted to the Environmental Authorities for the preliminary assessment and during the EIA process per se. The Developer is expected to involve the affected public in the discussions of the proposal, but there are no clear mechanisms to ensure that the public’s comments are taken into account at the stage of project development. The Developer should inform the public of the planned activity once the application procedure has been launched. Surprisingly, it is not the Developer, but the Environmental Authority who is responsible for making the relevant EIA documentation available to the public through its offices, local government offices, schools and libraries, according to the EIA Handbook (Paragraph 4.1.). 8. Enforcement of the national legislation Enforcement of the national legislation has been one of the major issues for the country since Azerbaijan gained its independence in the early 1990s. The mechanisms of enforcement of the environmental legislation, particularly of the Law on EP, are underdeveloped, for example, with regard to setting liabilities for environmental damage, or to public participation in the EIA process. Azerbaijan’s environmental legislation performs the functions of a punishment tool to ensure economic activities are developed and implemented in accordance with the existing environmental standards. On the contrary, international environmental protection legislation is a tool to ensure environmentally conscious, transparent and accountable decision-making.

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Annex 3

Briefing on World Bank OP 4.01

Environmental Assessment (EA) is the most widely applied of 10 environmental, social and legal safeguard policies of the WB. EA is used in the WB to identify, avoid and/or mitigate the potential negative environmental impacts associated with lending operations. The purpose of EA is to improve decision making, to ensure that project options under consideration are sound and sustainable, and that potentially affected people have been adequately consulted. The WB’s environmental assessment policy and recommended processing are described in Operational Policy (OP)/Bank Procedure (BP) 4.01: Environmental Assessment. A brief summary is presented below:

• Environmental Screening is an important step through which proposed projects are assessed for the appropriate level and type of EA. In practice, the significance of impacts, and the selection of screening category, depends on the type and scale of the project, the location and sensitivity of environmental issues, and the nature and magnitude of the potential impacts.

• Projects are classified as Category A if they are ‘likely to have significant adverse impacts that are sensitive, diverse, or unprecedented, or that affect an area broader than the sites or facilities subject to physical works.’ Hence, the EA for a Category A project examines a project’s potential negative and positive environmental impacts, compares them with those of feasible alternatives (including the ‘without project’ situation), and recommends any measures needed to prevent, minimize, mitigate or compensate for adverse impacts and improve environmental performance. The EA of a Category A project considers both the social and the physical environmental impacts. Socioeconomic environment includes themes such as land acquisition and resettlement; indigenous or traditional populations, cultural heritage, aesthetics and landscapes, noise and human health and safety.

• The impacts of Category B projects are ‘site-specific in nature and do not significantly affect human populations or alter environmentally important areas, including wetlands, native forests, grasslands, and other major natural habitats. Few if any of the impacts are irreversible, and in most cases mitigation measures can be designed more readily than for Category A projects.’

• For both the Category A and B projects, an Environmental Management Plan (EMP) needs to be established in accordance with the Bank’s OP 4.01. EMPs as an essential feature of category A projects; and for category B projects, the EA may result in development of an EMP only, with no separate EA report. The specific requirements relating to EMPs are set out in Annex C to the WB’s procedure 4.01 (BP 4.01).

• Category C projects are likely to have minimal or no adverse environmental impacts. Beyond screening, no further EA action is required.

• For Category A projects, the Borrower should consult with project affected groups at least twice: (i) shortly after screening and before the TOR for the EA are finalized, involving discussion on issues to be addressed in the EA; and (ii) once a draft EA is

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prepared, involving discussion of issues raised in the EA. In addition, the Borrower consults with such groups throughout project implementation as necessary to address EA related issues that affect them.

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Annex 4

EMP Checklist for Construction and Rehabilitation Activities NOTE: This checklist will be prepared for each waste dump site

PART 1: INSTITUTIONAL & ADMINISTRATIVE Country Azerbaijan

Project title Integrated Solid Waste Management Project

Scope of project and activity

To be completed by MED

Institutional arrangements

(Name and contacts)

WB Task Team

Leader

Project Management

(……………)

Local Counterpart and/or Recipient MED

(…………..)

Implementation arrangements

(Name and contacts)

Safeguard Supervision

(………)

Local Counterpart Supervision (………….)

Local Inspectorate Supervision

(………)

Contractor (…………)

SITE DESCRIPTION Name of site Describe site location Attachment 1: Site Map [ ]Y [ ] N Who owns the land? The Government of Azerbaijan Geographic description

LEGISLATION Identify national & local legislation & permits that apply to project activity

PUBLIC CONSULTATION Identify when / where the public consultation process took place

INSTITUTIONAL CAPACITY BUILDING Will there be any capacity building?

[ ] N or [ ]Y if Yes, Attachment 2 includes the capacity building program

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PART 2: ENVIRONMENTAL /SOCIAL SCREENINGActivity Status Additional references

A. Building rehabilitation [ ] Yes [ ] No SeeSection B belowB. New construction [ ] Yes [ ] No SeeSection B belowC. Individual wastewater treatment system [ ] Yes [ ] No SeeSection C belowD. Historic building(s) and districts [ ] Yes [ ] No SeeSection D belowE. Acquisition of land9 [ ] Yes [ ] No SeeSection E belowF. Hazardous or toxic materials10 [ ] Yes [ ] No SeeSection F belowG. Impacts on forests and/or protected areas [ ] Yes [ ] No SeeSection G belowH. Handling / management of medical waste [ ] Yes [ ] No SeeSection H below

Will thesiteactivityinclude/involveanyof the following:

I. Traffic and Pedestrian Safety [ ] Yes [ ] No SeeSection I belowACTIVITY PARAMETER MITIGATION MEASURES CHECKLIST

A. GeneralConditions

Notification and Worker Safety (a) The local construction and environment inspectorates and communities havebeen notified of upcoming activities(b) Thepublic hasbeen notified of theworks through appropriatenotification in themediaand/or at publicly

accessiblesites (including thesiteof theworks)(c) All legally required permits have been acquired for construction and/or rehabilitation(d) All work will becarried out in asafeand disciplined manner designed to minimize impacts on neighboring

residents and environment.(e) Workers’ PPE will comply with international good practice (always hardhats, as needed masks and safety

glasses, harnesses and safety boots)(f) Appropriate signposting of the sites will inform workers of key rules and regulations to follow.

Air Quality (a) During interior demolition use debris-chutes above the first floor(b) Keep demolition debris in controlled area and spray with water mist to reduce debris dust(c) Suppress dust during pneumatic drilling/wall destruction by ongoing water spraying and/or installing dust screen

enclosures at site(d) Keep surrounding environment (side walks, roads) free of debris to minimize dust(e) There will be no open burning of construction / waste material at the site(f) There will be no excessive idling of construction vehicles at sites

Noise (a) Construction noise will be limited to restricted times agreed to in the permit(b) During operations the engine covers of generators, air compressors and other powered mechanical equipment

should be closed, and equipment placed as far away from residential areas as possibleWater Quality (a) The site will establish appropriate erosion and sediment control measures such as e.g. hay bales and / or silt

fences to prevent sediment from moving off site and causing excessive turbidity in nearby streams and rivers.

B. GeneralRehabilitation and/or ConstructionActivities

Waste management (a) Waste collection and disposal pathways and sites will be identified for all major waste types expected fromdemolition and construction activities.

(b) Mineral construction and demolition wastes will be separated from general refuse, organic, liquid and chemicalwastes by on-site sorting and stored in appropriate containers.

(c) Construction waste will be collected and disposed properly by licensed collectors(d) The records of waste disposal will be maintained as proof for proper management as designed.(e) Whenever feasible the contractor will reuse and recycle appropriate and viable materials (except asbestos)

9 Land acquisitions includesdisplacement of people, change of livelihood encroachment on private property this is to land that ispurchased/transferred and affectspeople who are living and/or squattersand/or operate a business (kiosks) on land that isbeing acquired.10 Toxic / hazardous material includesand is not limited to asbestos, toxic paints, removal of lead paint, etc.

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ACTIVITY PARAMETER MITIGATION MEASURES CHECKLIST

C. Individual wastewatertreatment system

Water Quality (a) Theapproach to handling sanitary wastes and wastewater from building sites (installation or reconstruction)must beapproved by the local authorities

(b) Beforebeing discharged into receiving waters, effluents from individual wastewater systems must be treated inorder to meet theminimal quality criteriaset out by national guidelines on effluent quality and wastewatertreatment

(c) Monitoring of new wastewater systems (before/after) will becarried outD. Historic building(s) Cultural Heritage (a) If thebuilding is adesignated historic structure, very close to such astructure, or located in adesignated historic

district, notify and obtain approval/permits from local authorities and address all construction activities in linewith local and national legislation

(b) Ensure that provisions are put in place so that artifacts or other possible “chance finds” encountered inexcavation or construction are noted, officials contacted, and works activities delayed or modified to account forsuch finds.

E. Acquisition of land Land AcquisitionPlan/Framework

(a) If expropriation of land was not expected and is required, or if loss of access to income of legal or illegal usersof land was not expected but may occur, that the bank task Team Leader is consulted.

(b) The approved Land Acquisition Plan/Framework (if required by the project) will be implementedAsbestos management (a) If asbestos is located on the project site, mark clearly as hazardous material

(b) When possible the asbestos will be appropriately contained and sealed to minimize exposure(c) The asbestos prior to removal (if removal is necessary) will be treated with a wetting agent to minimize asbestos

dust(d) Asbestos will be handled and disposed by skilled & experienced professionals(e) If asbestos material is be stored temporarily, the wastes should be securely enclosed inside closed containments

and marked appropriately(f) The removed asbestos will not be reused

F. Toxic Materials

Toxic / hazardous wastemanagement

(a) Temporarily storage on site of all hazardous or toxic substances will be in safe containers labeled with details ofcomposition, properties and handling information

(b) The containers of hazardous substances should be placed in an leak-proof container to prevent spillage andleaching

(c) The wastes are transported by specially licensed carriers and disposed in a licensed facility.(d) Paints with toxic ingredients or solvents or lead-based paints will not be used

G. Affects forests and/orprotected areas

Protection (a) All recognized natural habitats and protected areas in the immediate vicinity of the activity will not be damagedor exploited, all staff will be strictly prohibited from hunting, foraging, logging or other damaging activities.

(b) For large trees in the vicinity of the activity, mark and cordon off with a fence large tress and protect rootsystem and avoid any damage to the trees

(c) Adjacent wetlands and streams will be protected, from construction site run-off, with appropriate erosion andsediment control feature to include by not limited to hay bales, silt fences

(d) There will be no unlicensed borrow pits, quarries or waste dumps in adjacent areas, especially not in protectedareas.

H. Disposal of medicalwaste

Infrastructure for medicalwaste management

(a) In compliance with national regulations the contractor will insure that newly constructed and/or rehabilitatedhealth care facilities include sufficient infrastructure for medical waste handling and disposal; this includes andnot limited to:� Special facilities for segregated healthcare waste (including soiled instruments “sharps”, and human tissue

or fluids) from other waste disposal; and� Appropriate storage facilities for medical waste are in place; and� If the activity includes facility-based treatment, appropriate disposal options are in place and operational

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ACTIVITY PARAMETER MITIGATION MEASURES CHECKLIST

I Traffic and PedestrianSafety

Direct or indirect hazards topublic traffic and

pedestrians by constructionactivities

(b) In compliancewith national regulations thecontractor will insure that theconstruction site isproperly securedand construction related traffic regulated. This includes but isnot limited to� Signposting, warning signs, barriers and traffic diversions: sitewill beclearly visibleand thepublic warned

of all potential hazards� Traffic management system and staff training, especially for siteaccess and near-siteheavy traffic.

Provision of safepassages and crossings for pedestrians whereconstruction traffic interferes.� Adjustment of working hours to local traffic patterns, e.g. avoiding major transport activities during rush

hours or times of livestock movement� Active traffic management by trained and visiblestaff at thesite, if required for safeand convenient

passage for thepublic.� Ensuring safeand continuous access to office facilities, shops and residences during renovation activities,

if thebuildings stay open for thepublic.

34

PART 3: MONITORING PLANPhase What

(Is theparameter to bemonitored?)

Where(Is theparameter to be

monitored?)

How(Is theparameter to be

monitored?)

When(Define the frequency /

or continuous?)

Why(Is theparameter being

monitored?)

Cost(if not included inproject budget)

Who(Is responsible for

monitoring?)

Air Quality/airpollution (solidparticles, CO, NO2,Pb (randomsampling))

Vehicle ExhaustEmissions

Dust

At the landfill Site

At theLandfill Site

During theoperation

phaseof the landfill.

PortableMeasurementDevices

Visual

Visual

At theProject Start

After all servicingvehicles

Weekly

Continuously

To assure compliancewith the Air PollutionControl Regulation inorder to mitigate anypotential negativeenvironmental effects.

To prevent any possibledisturbance and adversehealth effects on theresidents.

Criteria / specificationsto be incorporated intobidding and contractdocuments.

Contractor isresponsible to executetheMitigation Measure.

Supervision Engineer isresponsible to supervise.

Municipality isresponsible to supervise

RE

NO

VA

TIO

N/C

ON

STR

UC

TIO

N

Noise (noise levels(dB); equipment) Near the landfill Site

During theoperating

phaseof the landfill.

PortableNoiseMeters

Auditory

oncea month or oncomplaint

Continuously

To assure compliancewith the Noise ControlRegulation in order tomitigate any potentialnegative environmentaleffects.

To prevent any possibledisturbance and adversehealth effects on theresidents.

Criteria / specificationsto be incorporated intobidding and contractdocuments.It is not considered as aseparatecost item.

Contractor isresponsible to executetheMitigation Measure.

Supervision Engineer isresponsible to supervise.

Municipality isresponsible to supervise

35

PART 3: MONITORING PLANPhase What

(Is theparameter to bemonitored?)

Where(Is theparameter to be

monitored?)

How(Is theparameter to be

monitored?)

When(Define the frequency /

or continuous?)

Why(Is theparameter being

monitored?)

Cost(if not included inproject budget)

Who(Is responsible for

monitoring?)

RE

NO

VA

TIO

N/C

ON

STR

UC

TIO

N

Collection of SolidWastes

Demolition DebrisHandling

Hazardous WasteHandling

At theConstruction Site

At theLandfill Site

In accordance with theplan to beprepared.inspection; observation

In accordance with theplan to beprepared.inspection; observation

In accordance with theplan to be prepared andvolumeof debris.

In accordance with theplan to beprepared.

To assure compliancewith theWasteRemovalRegulation

To assure compliancewith the HazardousWaste ManagementRegulation in order tomitigate any potentialnegative environmentaleffects.

.

Criteria / specificationsto be incorporated intobidding and contract

documents.It is not considered as aseparatecost item.

Engineer is responsibleto monitor andsupervise theactivity.

Contractor isresponsible toimplement themitigation measure.

MED/PMT isresponsible to monitorand supervise theactivity.

Municipality isresponsible to assist theContractor, approve theplan and supervise theimplementation.

Engineer is responsibleto monitor andsupervise theactivity.

Contractor isresponsible toimplement themitigation measure.

Municipality isresponsible to assist theContractor

Staff safety protectiveequipment; At work site Unannouncedinspection

To assureprotection ofworkers at site

minimal Supervision Engineer

36

PART 3: MONITORING PLANPhase What

(Is theparameter to bemonitored?)

Where(Is theparameter to be

monitored?)

How(Is theparameter to be

monitored?)

When(Define the frequency /

or continuous?)

Why(Is theparameter being

monitored?)

Cost(if not included inproject budget)

Who(Is responsible for

monitoring?)

Handling AsbestosContaining Material

At theLandfill and finalDisposal Site

In accordancewith theplan beprepared.inspection; observation

In accordancewith theplan to beprepared.

To assurecompliancewith theDirective forHandling of AsbestosProducts in order tomitigateany potentialnegativeenvironmentaleffects

Criteria / specificationsto be incorporated intobidding and contractdocuments.It is not considered as aseparatecost item.

Engineer is responsibleto monitor andsupervise theactivity.

Contractor isresponsible toimplement theMitigation Measure.

MED/PMT isresponsible to approvethehandling plan andsupervise itsimplementation

Municipality isresponsible to monitorand supervise theActivity

RE

NO

VA

TIO

N/C

ON

STR

UC

TIO

N

Traffic disruptionduring constructionactivity; Vehicle andpedestrian safety

Near and at theLandfillSite

Utilization ofDesignated Routes.

On Daily Basis. To mitigatepotentialnegativeeffects.

Criteria / specificationsto be incorporated intobidding and contractdocuments.It is not considered as aseparatecost item.

Contractor isresponsible toimplement theMeasure

Engineer is responsibleto monitor andsupervise theactivity.

TransportationDepartment ofMunicipality to assistand supervise the

Contractor.

37

PART 3: MONITORING PLANPhase What

(Is theparameter to bemonitored?)

Where(Is theparameter to be

monitored?)

How(Is theparameter to be

monitored?)

When(Define the frequency /

or continuous?)

Why(Is theparameter being

monitored?)

Cost(if not included inproject budget)

Who(Is responsible for

monitoring?)

Waste WaterHandling

Near and at the LandfillSite

Observation,unannounced inspection

Continuous To mitigate potentialnegativeeffects.

Criteria / specificationsto be incorporated intobidding and contractdocuments.It is not considered as aseparatecost item.

Engineer is responsibleto monitor andsupervise theactivity.

Contractor isresponsible toimplement themitigation measure.

Municipal Water andSewerage Authority toassist and supervise theactivity.

38

Annex 5

Environmental Management Plan (EMP)

The objective of the EMP is to ensure the integration of the possible project environmental issues and proposed mitigation into the detail design and project implementation. To achieve satisfactory implementation of cleanup works, the EMP should ensure that: (i) implementation is monitored and meets the requirements of the environmental law in Azerbaijan; the clean-up and re-development standards for contaminated land; and the WB safeguard policies; and (ii) environmental impacts are mitigated The borrower (MED) and the selected EA Consultant will (a) identify the set of mitigation actions to potentially adverse environmental impacts; (b) determine requirements for ensuring that these mitigations are made effectively and in a timely manner; and (c) propose activities to monitor mitigation actions. The following content is developed based on WB OP 4.01 Annex C, and adapted to the proposed Project. It is suggested that the following information be included: (a) Mitigation Plan: This should include a description of the steps to be taken to identify all anticipated significant effects, to mitigate the major potential impacts on land, water, air and other media during the cleanup works. Potential impacts during the cleanup works are expected such as solid oily waste, noise, pollution caused by spills and leakages, waste water. Special attention should be paid for proper collection of asbestos structures/materials abandoned at the sites. (b) Monitoring Plan: Project monitoring plan includes conducting standard monitoring on environment (soil pollution, solid waste, noise) as well as continuous monitoring in emergency situations. This should include a description of the key parameters to be monitored (including monitoring locations, schedules and responsible entities) and reporting procedures to ensure that the construction and operation of the project is in conformance with local law and other relevant norms and standards. If such details are covered by permits or construction or monitoring contracts these can be referenced as attachments. Special attention should be given to general monitoring in oil polluted areas of former oil and gas production sites through regular soil, water and radio-ecological measurements. (c) Institutional Arrangements: There should be a narrative discussion that provide a brief presentation on how the monitoring data is going to be used for sound environmental performance - who collects the data, who analyzes it, who prepares reports, who are the reports sent to and how often, what is done by the responsible authorities after they receive the information; and how is non-compliance with the EMP managed. This should also include (a) technical assistance programs (training), (b) procurement of equipment and supplies, and (c) organizational changes.

39

(d) Implementation Schedule and Cost Estimates: For all three aspects (mitigation, monitoring, and capacity development), the EMP should provide (a) an implementation schedule for measures that must be carried out as part of the project, showing phasing and coordination with overall project implementation plans; and (b) cost estimates and sources of funds for implementing the EMP. These figures are also integrated into the total project cost tables.