Section 1_Machakhela 1 & 2 Environmental and Social Impact Assesment ToR

INVITATION FOR TENDER

GEORGIA

”Machakhela HPP 1” LLC: MACHAKHELA 1 and MACHAKHELA 2 HPPs

Environmental and Social Impact Assessment and Bidding Documents

MACHAKHELA 1 and MACHAKHELA 2 HPPs – Georgia – Terms of Reference for ESIA

Eligibility and Qualification Criteria

As a minimum, the Consultant shall mobilise the following experts:

o a senior ESIA team leader, with considerable years of experience in environmental and social impact assessment related to hydropower development, and if possible in transition countries

o a social specialist, with significant experience in transition countries, land use issues, and social issues raised by hydropower development;

o other experts as deemed necessary by the Consultant based on their understanding of the scope,o local experts with at least 5 years experience in a) public consultations, b) environmental and social

impact assessment (ESIA), etc…

The Consultant will be selected on the basis of experience and availability to undertake the work. The Consultant is required to provide a proposal according standard forms indicated in the Selection of ESIA consultants.

The Consultant is expected to have experience working with/for IFIs (preferably with EBRD or IFC) and expertise in environmental and social assessment and public consultation on hydropower projects. The lead environmental and social experts are required to have at least 10 years of relevant experience and be familiar with the region. As some of the existing documentation may be in Russian, the team will need to have a sufficient proficiency of Russian. It is thus mandatory for the Consultant to include sufficient, technically well qualified staff familiar with the sector for information screening and translation. Ability to mobilise staff and resources quickly is important due to the tight timeframe for the assignment.

CVs of the proposed consultants should outline experience in environmental and social assessments, the hydropower sector, region, similar assignments, as well as understanding of IFI’s Environmental and Social policies, procedures, standards and requirements.

In the proposal the Consultant will:

Describe the experience of the firm and team in undertaking ESIAs for similar projects and demonstrate understanding and experience in addressing environmental & social requirements in hydropower projects.

Outline the suggested approach and methodology for the work. Summarise the potential risks associated with the assignment and proposed mitigation methods.

Nominate the experts who will be involved in the work and include in their CV (s), and experience of due diligence in the sector. The Consultants team will need to be able to work both in Georgian and English, because the report shall be prepared on both languages.

Confirm the ability to complete the works within the stipulated time frame.

Provide a project plan (timetable or Gantt chart with key milestones).

Provide information on any history of litigation or arbitration resulting from contracts executed in the last five years or currently under execution.

A detailed time allocation plan of each of the proposed team members and a detailed budget breakdown must be included in the proposal broken down by staff days in field and office days as

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well as daily fee per assigned expert. The budget should also include associated costs, as transport and subsistence and any other cost (e.g. translation, report preparation etc.). All costs shall be presented in GELs and shall include contingency, and taxes. The budget shall cover all direct and indirect costs related to the preparation, development, presentation and consultations of ESIA report.

Provide information on references.

Prospective participants may obtain any additional information and acquire tender documents from:

Zaal Kherkheulidze

Investment Officer

Cell: +995 598 558989

E-mail: [email protected]

The proposal should be presented till 1 of June, 2012 17:00 (GMT +4) at the following address:, Tbilisi, 0179, 34 Chavchacadze Ave., 9th floor, phone: +995 98 55 89 89

Contents

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mailto:[email protected]


1 PROJECT OVERVIEW.............................................................................................................5

1.1 BACKGROUND......................................................................................................................5

2 PROJECT DESCRIPTION.......................................................................................................5

3 GEORGIAN ENVIRONMENTAL PERMITS AND REGULATIONS................................5

4 SCOPE OF WORK.....................................................................................................................7

4.1 OBJECTIVE AND OVERVIEW..................................................................................................7

5 PHASE 1 - PRELIMINARY ENVIRONMENTAL ASSESSMENT AND SOCIAL ASSESSMENT............................................................................................................................7

6 PHASE 2 - ENVIRONMENTAL AND SOCIAL IMPACT ASSESSMENT STUDY........10

6.1 SCOPE OF WORKS...............................................................................................................106.1.1 Objective and overview........................................................................................106.1.2 Project Area of Influence.....................................................................................106.1.3 Key ESIA Tasks – Biophysical Aspects.................................................................116.1.4 Key ESIA Tasks – Socio-Economic Aspects.........................................................126.1.5 Key ESIA Tasks – Resettlement Action Plan (RAP)/Livelihood Restoration

Framework (LRF)................................................................................................126.1.6 Key ESIA Tasks – Stakeholder Engagement........................................................12

7 DELIVERABLES AND TIMEFRAME..................................................................................13

8 ACCEPTANCE OF WORKS..................................................................................................14

9 INDICATIVE ESIA STRUCTURE FOR IFIS PROJECT...................................................14

APPENDIX A:.................................................................................................................................14NON-TECHNICAL SUMMARY........................................................................................................14PROJECT DESCRIPTION.................................................................................................................14DESCRIPTION OF THE EXISTING ENVIRONMENT..........................................................................15POTENTIAL IMPACTS....................................................................................................................15ANALYSIS OF ALTERNATIVES......................................................................................................15CHARACTERISATION OF IMPACTS AND ISSUES.............................................................................15MITIGATION AND MANAGEMENT OF IMPACTS AND ISSUES.........................................................17ACTION PLANS AND MANAGEMENT SYSTEMS............................................................................17APPENDICES.................................................................................................................................17

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1 PROJECT OVERVIEW

1.1 BACKGROUND

“Machakhela HPP 1” LLC is developing two projects in the Khelvachauri District of western Georgia’s Adjara Autonomous Region on the Machakhelistskali river: a 22 MW Machakhela 1 HPP and a 20 MW Machakhela 2 HPP.

The Company (hereafter referred to as the Employer) is engaged in research of Machakhela 1 and Machakhela 2 Hydro Power Plants Project (Hereafter Project).

According to “Machakhela HPP 1” LLC, the construction period will last 3 years. Upon completion, the total installed output will be 42 MW with a total annual output of 261 GWh.

In accordance with its development plan, “Machakhela HPP 1” is seeking consulting services for the development of an Environmental and Social Impact Assessment to satisfy the legal requirements of the Ministry of Environment Protection of Georgia, as well as potential project lenders, including but not limited to the International Financial Institutions (IFIs). The Terms of Reference (ToR) outlined herein has been developed to satisfy these requirements.

2 PROJECT DESCRIPTION

The proposed Machakhela 1 and 2 HPPs are located on the Machakhelistskali River, in the Khelvachauri District of western Georgia’s Adjara Autonomous Region. The Machakhela 1 HPP is envisioned to be the upper plant in a possible 2-HPP cascade (Machakhela 1 and Machakhela 2 HPPs) on the Machakhelistskali River.There are some important issues about this project:

Machakhela 1 HPP Location of Machakhela 1 HPP – located about 2.5 km upstream from the confluence of the Machakhela

River with the Chorokhi River, near the village of Kedkedi, in the Khelvachauri District of western Georgia’s Adjara Autonomous Region.

Total Annual Generation - 132 GW/h Potential installed capacity: 22 MW

Machakhela 2 HPP Location of Machakhela 2 HPP – about 10.5 km upstream from the confluence of the Machakhelistskali

with the Chorokhi River, near the village of Kokoleti, in the Khelvachauri District of western Georgia’s Adjara Autonomous Region.

Total Annual Generation - 129 GW/h Potential installed capacity: 20 MW

According to “Machakhela HPP 1”, the construction period will last 3 years. Upon completion, the total installed capacity will be 42 MW with a mean annual output of 261 GWH. Preliminary description of the project is given in the preliminary feasibility study, which is attached to the tender documents and is for introductory purposes only.

3 GEORGIAN ENVIRONMENTAL PERMITS AND REGULATIONS

All hydropower plants with a capacity of more than 2 MW need an Environmental Impact Assessment and State Ecological Examination (SEE) in order to obtain the Construction Permit. Thus, the Environmental Permit is a part of Construction Permit. This Permit is issued by the executive branch of local government or in special circumstances by the Ministry of Economy and Sustainable Development (MESD) with the participation of the Ministry of Environment Protection (MoE) under a procedure involving: a) Environmental Impact Assessment (ESIA), b) public participation and c) State Ecological Examination (SEE).

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The environmental permitting procedure in Georgia is based on the Law of Environmental Impact Permit from 2007. Decree (2011, October 4) No. 14 “On the Charter of Environmental Impact Assessment” regulates the legal relations related to the assessment of environmental impact and requirements the final report should satisfy for the issuance of the Environmental Impact Permit/Construction Permit.

The Law on Ecological Examination/expertise from 2007 mainly determines the SEE procedure. According to this law a state expert opinion will be mandatory for a decision on the issuance of an Environmental Impact Permit/Construction Permit. The MoE is responsible for the SEE through a committee of experts after the ESIA is submitted to the local authority/MESD at the second phase of the construction permit process and the public hearing procedure is completed (see below).

An important part of the permitting process is the preparation of an ESIA. According to the Law of Environmental Impact Permit developer seeking a permit prepares the ESIA within the desired timeframe and according to the provided procedures, organizes its public discussion and takes other measures as appropriate. The developer should invite the MoE, local authority and MESD to take part in the process and afterwards submit ESIA to the local authority/MESD, which in turn involves MoE to provide with the SEE.. The Decree specifies documents to be submitted, and provides the details on the procedure of permit issuance and the role of the MoE and the developer in this process. In the permitting process and when carrying out an ESIA, the following steps should be followed:

1. Preparation of the ESIA document. The report is prepared either by the investor or by an environmental consulting company hired by the investor.

2. Publication of the ESIA, through announcements in newspapers at regional and central level. The announcement should include goals for the planned activity, project title and location, address where the public can access the ESIA report, deadline (45 days for submitting written comments and recommendations), location, date and time for the public hearing, investor’s contact information for submission of written comments and suggestions on the ESIA report.

3. A hard copy and an electronic version of the ESIA should be submitted to the MoE and local authority/MESD no later than 7 days after the publication.

4. The public has 45 days after the date of publication for submitting objections to the ESIA.

5. After 50 days but, no later than 60 days after publication, a public hearing regarding the ESIA should be held in the administrative centre of the region, also inviting affected local and central public bodies.

6. Within 5 days after the hearing the project developer should prepare a public hearing protocol including all comments and recommendations received and expressed during the public hearing. The protocol should be signed by the investor, ESIA report compiler, the representative from the local municipality and the representative from the MoE and local authority/MESD. If any comments are presented, the developer should consider them.

7. It is up to the investor’s decision whether or not to take into account the suggested comments and recommendations in the final ESIA report. In case the investor does not take the comments and recommendations into account, he is responsible to provide written arguments to the authors of these comments. He should also submit a short report, summarizing the arguments to the administrative body issuing permits together with the ESIA report and the public hearing protocol.

8. For environmental permit purposes together with the required documentation for construction permits the following documents should be submitted: 5 hard copies and 1 electronic version of the final ESIA report, the public hearing protocol, the situation plan of the place where the project is planned to be implemented, a report on the types and volumes of possible and permissible emissions, project on emission/discharge norms (4 copies) and a summary of planned activity.

9. The approval of other Ministries relevant for the project is a prerequisite for the issuance of the permit/Construction Permit. There would likely have been some contact between the authorities and the developer during the preparation of the ESIA, where signals about mitigating measures etc. would be given.

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In addition, a Water Consumption Permission would be needed. Depending on the scale and location of the project, the construction permit may also require approval from the Ministry of Culture and Monument Protection stating that the planned plant is not within a zone of historic heritage or an archaeological dig. The Law of Georgia on the protection of Cultural Heritage specifies that costs for archaeological activities, supervision, preliminary investigation, historic-cultural heritage determination, scientific research, publication and protection should be included in design and construction costs.

4 SCOPE OF WORK

4.1 OBJECTIVE AND OVERVIEW

The Consultant shall carry out the work in two inter-related Phases under this assignment:

Phase I Preliminary Environmental Assessments

The Consultant shall carry out an integrated, preliminary environmental and social impact assessment in accordance with Georgian requirements and the operational policies of International Financial Institutions (e.g. EBRD). The Consultant will perform this preliminary assessment during the Phase 1. This preliminary assessment and screening is intended to provide an overview of the range and depth of issues to be subsequently studied in detail under the ESIA to be undertaken in Phase II. This advance overview facilitates the mobilization of studies, data collection or other resources that will be required for the conduct of the full ESIA.

Phase II Environmental and Social Impact Assessment Report

Phase II for each HPP is optional subject to successful completion of the Phase I under the present assignment and financial closing for the project. In case the decision is to enter Phase II for all/any HPP, the Employer will issue letter for works under the Phase II to be commenced for appropriate projects.

The objective of the assignment is to carry out an Environmental and Social Impact Assessment (ESIA) in compliance with Georgian laws and IFI’s requirements.

ESIA shall identify the Project area of influence, including but not limited to the projected dam site and reservoir, as well as all ancillary infrastructure (such as access roads, transmission lines, borrow areas and soil deposits) related to all phases of the project. Details of the site selection process and alternatives shall be provided. The evaluation of impacts should be based on an assessment of their extent (local/regional/national), duration (short, medium or long term effects) and reversibility (temporary or irreversible effects). The ESIA shall also include a Stakeholder Engagement Plan, Resettlement Action Plan/Livelihood Restoration Framework (if applicable) and an Environmental and Social Action Plan that covers all phases of the project.

To ensure compliance with relevant laws and standards, the work shall be carried out in close contact and cooperation with the MoE and IFI. Additional guidance for the preparation of an ESIA is provided in Appendix A.

5 PHASE 1 - PRELIMINARY ENVIRONMENTAL ASSESSMENT AND SOCIAL ASSESSMENT

The Consultant shall carry out an integrated, preliminary environmental and social impact assessment in accordance with Georgian requirements and the operational policies of International Financial Institutions (e.g. EBRD). The Consultant will perform this preliminary assessment during the Phase 1. This preliminary assessment and screening is intended to provide an overview of the range and depth of issues to be subsequently studied in detail under the ESIA to be undertaken in Phase II. This advance overview facilitates the mobilization of studies, data collection or other resources that will be required for the conduct of the full ESIA.

The initial task of the preliminary assessment and screening is a review of the existing literature that is relevant to environmental impact of the HPP. This will enable the identification of areas in this literature where (i) there are

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gaps, (ii) that are deficient, or (iii) that need to be updated. Secondly, Georgian legal and institutional framework on resettlement will be reviewed and compared with Bank safeguard requirements, and gaps will be identified. In doing so, not only relevant official law but also good practice related to resettlement will be assessed for incorporation in the investment project.

The report prepared during this preliminary assessment will elaborate a preliminary environmental inventory of impacts of project alternatives, mainly with the dam site selection and the reservoir impounded by that dam but including any such related identified investments as transmission lines. It shall also be clarified to what extent electricity demand scenarios would impact the project designs and the implementation of the project. All the possible environmental impacts shall be identified and quantified as far as possible, albeit for some costs in terms of order of magnitude, for inclusion in the project cost estimate. The long term and irreversible impacts shall be identified and analysed as a priority.

In addition, the social screening will review land cadastre and other official documents, discuss with local authorities and community leaders, in order to assess the scale of resettlement and socioeconomic impacts for both displaced communities and other communities socially impacted by the investment project. Also, Georgian law on permitting and the role of the Ministry of Environment and other stakeholders as well as on land acquisition and resettlement will be reviewed and compared with Bank safeguard requirements. Specifically, the social screening should carry out the following tasks:

Identify categories of Project-Affected People and key stakeholders who can best represent them Assess existing communication channels between government and local population, and identification of

the communication strategy and mechanisms Profile and map the general population of the immediate basin area Identify temporary and permanent land acquisition requirements and the scale of displacement resulting

from the project Conduct census and socioeconomic survey, to determine the job, income levels, landownership and

tenure pattern, household structure, and other socioeconomic characteristics of the Project-Affected People

Assess the impact of river flow regimes on communities, both those directly impacted by the project and those who live upstream/downstream of the reservoir, in terms of socio-economic activities, fishery resources, land use, drinking water, etc.

Assess the impact of population influx during and after construction Assess the capacity of governmental and non-governmental services that are locally available to carry out

awareness campaign relating to the risk of HIV transmission and other diseases that may result from the inflow of migrant workers

Assess job loss and job creation during and after construction, including indirect economic activities (e.g. transport, tourism, etc.)

Assess availability and cost of alternative land to be provided to the displaced population, locally or otherwise, and assessment of utilities and other critical services provided in such alternative lands

Identify vulnerable population (e.g. especially poor families, single heads of household, women) Consider the impact of any resettlement on neighbouring villages either directly or indirectly Examine the integration of the infrastructural development of the area into the construction requirements

for the Project (e.g. roads and bridges, housing, schools, medical services and disease control programs) Identify issues relating to the minimization of short-term impact during construction to be addressed in

future construction contracts Assess other social and cultural impact resulting from the Project, including family and community as

well as cultural property issues.

During the social screening, consultation with the Project-Affected People should focus on basic information about the project. Details on such topics as resettlement packages would be deferred until the policies and procedures for resettlement are defined. Key among other information that should be disseminated at this stage is the nature and scope of the current studies and the possible future investment project, the policies and procedures if the project moves forward and the Bank is involved in the financing of the project, the approximate scale of displacement related to project alternatives, and cutoff dates. Consultation at this stage will also provide feedback for project design on the attitudes and hopes of the local population. The opportunities for further feedback and participation in conjunction with the RAP will also be communicated. A full communication strategy for the possible investment project is to be prepared as part of the RAP.

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The preliminary assessment shall be completed and the report shall be prepared and submitted in 3 months after commencement. Terms of Reference for the follow-on ESIA and RAP will be reviewed as a logical outcome of this phase.

Reports to be submitted under the Phase I:

Preliminary Environmental Assessment and Social Assessment Report

The Consultant shall prepare Preliminary Environmental Assessment and Social Assessment Report. The report shall comprise as a minimum:

1. An executive summary in Georgian and English

2. Preliminary Environmental Assessment and Social Assessment Report in Georgian and English

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6 PHASE 2 - ENVIRONMENTAL AND SOCIAL IMPACT ASSESSMENT STUDY

6.1 SCOPE OF WORKS

6.1.1 Objective and overview

The objective of the assessment is to carry out environmental and social impact assessment (ESIA) in compliance with:

o Georgian laws and requirements, o EBRD’s Environmental and Social Policy (2008) and Public Information Policy (2008) requirements for

Category A projects (www.ebrd.com), o International best practice (eg. The World Commission on Dams, Sustainability Guidelines of the

International Hydropower Association, World Bank/IFC),

The ESIA shall address the impacts of projected dam sites and reservoirs, as well as of all ancillary infrastructure (including but not limited to access roads, transmission lines, borrow areas and soil deposits) related to all phases of the project. The evaluation of impacts should be based on an assessment of their extent (local/regional/national), duration (short, medium or long term effects) and reversibility (temporary or irreversible effects). Cumulative impacts, including those of prospective facilities not necessarily envisioned in the short term but potentially affecting the same watershed, will be considered. The ESIA should also include a Stakeholder Engagement Plan, Livelihood Restoration Framework (if applicable) and an Environmental and Social Action Plan that cover all phases of the project, as defined in relevant EBRD PRs.

To ensure compliance with relevant laws and standards, the work shall be carried out in close contact and cooperation with the MoE and EBRD. Selected standards should be indicated in the final report. Additional guidance for the preparation of an ESIA is provided in Appendix A.

Reports to be submitted under the Phase II:

Environmental and Social Impact Assessment

The report shall be prepared to comprise as a minimum the following on the basis of the objective of Phase II, the present Terms of Reference and the works carried out:

1. Executive Summary in English and Georgian

2. Environmental and Social Impact Assessment Report with the Resettlement Action Plan if required shall be submitted separately according to the Indicative ESIA Structure for EBRD Category ‘A’ Projects and Georgian law requirements in English and Georgian.

6.1.2 Project Area of Influence

The study area should include the following:

- The whole watershed upstream, the future potential reservoir (and to the extent relevant also the smaller ones) when it comes to water supply, water quality, sediments and floating material supply to the future reservoir; as well as other potential issues the reservoir might influence,

- The area of the future potential reservoir and its surroundings,- The HPP site and immediate surroundings, including the water intakes and ancillary

infrastructure, construction site, workers settlements, access roads, areas required for construction material etc.

- The river system downstream of the reservoir,- Any potentially affected communities upstream or downstream of the Project.

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http://www.ebrd.com/


6.1.3 Key ESIA Tasks – Biophysical Aspects

6.1.3.1 Climate change

The creation of dams/reservoirs may contribute to global climate change through release of the greenhouse gases (GHG) including carbon dioxide (CO2) and methane (CH4) from the reservoirs. The net contribution to GHG release from the dams shall be assessed, and potential measures to limit the emissions shall be considered.

6.1.3.2 Forest resources and protection

Forest areas may be affected by the construction of the reservoir and, more likely, by the construction of new roads and other infrastructure associated with the project. Georgian forest protection and land use regulations shall be taken into consideration.

6.1.3.3 Erosion, flooding and landslide risk

Construction activities could increase the risk of erosion, flooding and/or landslides the project area due to heavy rains and avalanches during winter months. Particular consideration shall be given to erosion and sediment control, slope stabilization, flooding around roads, agricultural land etc. to avoid adverse impacts from the project activities

6.1.3.4 Seismic risk

An assessment of the potential impacts on seismic risk from the dam construction must be included.

6.1.3.5 Wildlife

Local fauna will be affected by the loss and fragmentation of habitats, increased noise levels, traffic and other increases in human activities during construction and operation. The reservoir will also create a new habitat for wildlife, and thus to some extent increase biodiversity within the project area. All likely impacts, both positive and negative, and their associated mitigation measures must therefore be considered.

6.1.3.6 Vegetation

As previously mentioned, the whole Caucasus is particularly rich in biodiversity. The project must therefore explore opportunities to minimize impacts to sensitive plant species.

6.1.3.7 Aquatic ecosystems and fisheries

Impacts to aquatic ecosystems and fish species will likely occur during the construction and operation due to high concentrations of suspended matter during construction, flow interruption, discharge of bad quality water from the reservoir, daily and seasonal water level changes related to discharge water from the power plant, accidental pollution etc. Therefore, sensitive species of fish, and other aquatic biota may be affected.

6.1.3.8 Local air quality

During the construction phase local air quality will be affected due to dust and noise. The extent of any such impact should be estimated and potential damages described and (if appropriate) potential mitigation measures should be considered.

6.1.3.9 River pollution

During the construction phase the water quality downstream the dams would probably be affected by increased suspended material (i.e. runoff from uncovered surfaces), sewage and wastes from worker’s settlement, leaks and accidental spilling of hazardous liquids (e.g. fuel, oils etc.). The potential for these releases and potential measures to limit such incidents should be considered.

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6.1.4 Key ESIA Tasks – Socio-Economic Aspects

6.1.4.1 Loss of agricultural land

Given the location this may be unlikely but needs to be assessed. If there is any loss it should be considered how the land loss could be compensated, for instance through cultivation of new land in the surrounding areas.

6.1.4.2 Flood control

It is possible that the new dams could provide flood control. To what extent this would be possible, and how it might interfere with the power production requirements should be assessed. Potential positive impacts on downstream land use and local water supply for drinking and irrigation purposes shall be assessed.

6.1.4.3 Impacts on local and regional economy

During the construction phase there should be a strong, positive impact on local employment linked to jobs for local people and provision of services to the workers. This could considerably increase the income level in the local communities provided adequate measures are taken to actually enhance locals’ employment. Also during the operational phase new jobs may be created for local people linked to operation and maintenance of the power plants and related installations. However, there might also be negative impacts on the economy in the form of lost agricultural production etc. All potential impacts on the local economy shall be described.

The construction phase may also entail an influx of nonlocal workers. Unless adequate mitigations are planned and implemented, this could cause pressure on the local infrastructure etc. and also cause tensions with the local population and increase health risks. Impacts and related mitigations in this respect shall be described and assessed.

6.1.4.4 Community health potential impacts

Any potential health impact of the facilities shall be described and assessed. This should include disaster management plans and emergency response and preparedness.

6.1.4.5 Cultural heritage and landscape

An assessment of the potential impact of the project on culturally significant sites shall be carried out. Landscape impacts shall also be described and assessed.

6.1.4.6 Labour

Any potential issue raised by the application of the EBRD’s PR2 shall be described and assessed.

6.1.5 Key ESIA Tasks – Resettlement Action Plan (RAP)/Livelihood Restoration Framework (LRF)

The need for a RAP/LRF shall be identified early in the process of developing the ESIA based on a preliminary assessment of potential impacts of permanent or temporary land acquisition entailed by construction and operation of the Project. Services related with the development of the RAP or LRF depends on the outcomes of the phase 1 and therefore optional for the Client and shall be seperately quoted in the Consultant’s proposal as such.

6.1.6 Key ESIA Tasks – Stakeholder Engagement

The ESIA process shall include engagement with stakeholders and affected groups in conformance with the IFI’s regulations, and with Georgian regulations. A key aspect of this process is to avoid duplication of efforts and ensure consistency between the consultation and disclosure exercises required by Georgian law and by IFIs.

The Consultant shall prepare a Stakeholder Engagement Plan, including:- The identification of all stakeholders and potentially affected groups,

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- The development of an engagement strategy covering the whole Project cycle, including the ESIA process, the construction and the operations phase for all relevant stakeholders,

- The development of a grievance mechanism,- Records of any engagement activities carried out as part of the ESIA process, outlining the main

environmental and social issues raised by stakeholders and how they were addressed within the ESIA process and documentation,

- A disclosure plan (what is to be disclosed, how, when and for how long).

The Stakeholder Engagement Plan shall be developed in two stages:- Submission of a draft Stakeholder Engagement Plan at the start of the ESIA process,- Submission of a revised Stakeholder Engagement Plan at the end of the ESIA process taking

consideration of engagement activities carried out by the Consultant during the ESIA process.

In addition to developing the Stakeholder Engagement Plan, the Consultant shall as a minimum implement the following engagement activities:

- Preparation in local language of a brief kick-off leaflet (one page A4 B&W), including:o A summary Project description,o A summary description of the ESIA process, and of the preliminary identified at the scoping

stage,o A summary description of the engagement process and of the grievance mechanism,

- ESIA scoping workshop with stakeholders, including representatives from potentially affected villages, at ESIA scoping stage: this one day workshop, to be organised and facilitated jointly by the Consultant and the Government of Georgia, shall take place at the District headquarters and include presentations on the Project and the scope of the ESIA,

- Preparation in local language of a non technical summary to be submitted together with the draft ESIA (5 to 10 pages, A4 B&W),

- ESIA submission workshop with stakeholders, including representatives from potentially affected villages, upon submission of the draft ESIA: a second one day workshop, to be organised and facilitated jointly by the Consultant and the Government of Georgia, to take place at the District headquarters, which shall include presentations and discussions on the findings of the draft ESIA.

- Analysis of comments and recommendations submitted during the workshops, its inclusion in ESIA draft or preparation of written arguments to the comments and recommendations.

--- Key ESIA Tasks – Environmental and Social Action Plan (ESAP)

Based on the findings of the impact assessment, the Consultant shall develop a concise, easily monitorable ESAP focussing on:

- Measures to prevent and mitigate any potential adverse environmental and social impacts during the construction and operation phases of the HPP.

- Measures providing environmental benefits and improving environmental quality and biological diversity, if realistically possible.

- Measures that could facilitate and/or provide opportunities for socio-economic benefits and improvements, if realistically possible.

- Emergency procedures and management plans to address safety issues like flood and pollution control, containment for potential accidental pollution incidents etc.

- Outline of a public information programme to inform affected people on the progress and environmental impacts of the project.

A suggested format is provided in Appendix B.

7 DELIVERABLES AND TIMEFRAME

Seven months in total.

Phase 1 – Preliminary ESIA up to 3 months from commencement date

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Phase 2 – ESIA up to 4 months after instruction from Client to begin the second phase and could be extended by the Client in accordance with the permitting procedural timeframe.

8 ACCEPTANCE OF WORKS

Consultants work for each HPP will be accepted in 2 parts.

First phase accepted will be the Preliminary ESIA, which shall be accepted with the value of up to 20% of the lump sum (the 20% shall be amended according to the proposal, but can not exceed 20%);

The Client has the right to terminate the Contract after the Preliminary ESIA; If the first phase report is satisfactory, the client makes a decision to give instructions to the consultant to proceed with the second phase and the consultant takes the responsibility to carry out the EIA which is in full compliance with EBRD and Georgian Law requirements ;

Second phase will be accepted after the Client receives all necessary permits for construction;

The period for the receipt of permits will not be counted as the period of Consultants works and therefore the final payment will not be reduced due to delay. However in case of comments to the Consultant after expertise, the Consultant shall be liable to fix the errors within 1 months from receiving the SEE comments, otherwise the final payment will be reduced for each day delayed afterwards.

The technical proposal shall also include:

Percentage of the lump-sum, that will be used as the value of Phase I. Such percentage shall not exceed 20%;

Statement of Compliance, stating that the Bidder accepts all conditions of the Tender Documentation (including the Terms of Reference) and it’s proposal shall only supplement such conditions but shall not prevail over such conditions;

9 INDICATIVE ESIA STRUCTURE FOR IFIS PROJECT

APPENDIX A:

NON-TECHNICAL SUMMARY

Concise summary description of the proposed project, its rationale, the existing environment, the area of influence, significant environmental and social impacts, issues and opportunities, summary of key aspects of the Environmental and Social Action Plan, residual risks/issues, nature of the client/projects’ systematic approach to managing the environmental and social aspects of the project including monitoring activities. Material information gaps or the need for further studies should be highlighted.

PROJECT DESCRIPTION

Precise up-to date description and delineation of the proposed project within its geographical, environmental and socio-economic context. This should include information on whether and how the project is part of a wider development programme including land use planning.Project alternatives could also be considered on a consolidated basis in this section or else treated in later sections of the ESIA document.

DESCRIPTION OF THE EXISTING ENVIRONMENT

A description of relevant aspects of the physical and natural environment, social and socio-economic conditions in the projects’ area of influence which will serve as the baseline for impact assessment. Existing receptors and sources of impact should be described as appropriate.

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Climatic Conditions Geomorphology and Geology Land Use and Settlement Patterns Water Resources

Surface Groundwater

Biological and Ecological ResourcesKey Flora and FaunaProtected, Listed or Endangered SpeciesHabitatsEcosystem IssuesExisting Environmental Pressures (inc Climate adaptation)

Landscape and Visual Issues (inc light impact if appropriate) Air Quality and Existing Emissions Load Noise and Vibration Social and socio-economic issues

Demography (population, trends, age/gender profiles, migration)Social Composition (ethnicity, clan/tribal structure, minority groups)Power Relationships and Governance IssuesConflict and Social TensionLand Ownership and TenureEconomic Activities (formal and informal sector)EducationPopulation Health ProfileGender IssuesVulnerable Groups Cultural HeritageCommunity Health, Safety and Security

Occupational Health and Safety Labour Issues and Working Conditions (as per PR 2)

POTENTIAL IMPACTS

Identify the potential environmental and social impacts that could be associated with the proposed project and its feasible alternatives including those of an indirect and cumulative nature. Through a process of reasoned argumentation, impacts which are unlikely to arise or be insignificant should be discounted. Local impacts National impacts Cumulative impacts Transboundary and Global impactsANALYSIS OF ALTERNATIVES

A systematic comparison of feasible alternatives to the project in terms of location, project technology or design in terms of potential environmental impact. This should include the ‘do-nothing’ option. Where appropriate, a least-cost analysis of alternative forms of production should be conducted (for energy generation projects for example).CHARACTERISATION OF IMPACTS AND ISSUES

This section should identify and characterise positive and negative environmental impacts in terms of magnitude, significance, reversibility, extent and duration. The possibility for cumulative impacts should also be considered. Quantitative data should be employed to the extent possible. The chapter should also identify opportunities for environmental enhancement and identify key uncertainties and data gaps.

Environmental and social impacts should be identified and characterised for relevant stages of the project cycle such as:

Pre-construction phase Construction Operation & Maintenance Decommissioning or Closure and Reinstatement

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Where third parties such as contractors are involved, their roles and capacity and the degree of control the project can exert over them should be considered.

Supply chain issues central to the project’s core functions should be considered where the resource utilised by the project is ecologically sensitive, or where low labour cost is a material factor related to project competitiveness.

Environmental Impacts and IssuesPollutionBiodiversitySustainable Natural Resources ManagementRegional and Trans-boundary impactsGreenhouse Gas EmissionsClimate Change and Adaptation

Social Impacts and IssuesCommunity health and socio-economic impacts and issues are likely to occur over different time scales and may well be inter-related with each other and environmental ones; hence the need for integrated impact assessment.

Labour and Working Conditions

Population movements Temporary or permanent acquisition of land, property, economic assets (see Involuntary Resettlement

Guideline). Migration into or out of area.

Economic Impact on economic assets including land Loss of employment Employment creation – temporary as a result of construction, or permanent during operations. Potential indirect employment creation, for example through sub-contracting. It is particularly important to look carefully at the potential impact on the informal sector. The informal

sector is important as changes in this area can have significant consequences on the livelihoods of vulnerable people.

Community Health, Safety and Security The ESIA may need to identify how the Project could influence the health of the affected communities. There are a number of effects that need to be considered:

- Potential for increased incidence of communicable diseases.- Environmental conditions created by Project which may lead to deterioration in health. - The impact of the Project on access to health care. Would the project lead to severance from health care

facilities.

It is important that there is initial baseline information on the health situation of the community within the area of impact. This will enable changes in health condition to be more accurately measured and attributed.

Education The impact of the Project on access to education facilities. Would the project lead to severance from

education facilities. Are there opportunities for education facilities to benefit from the Project?

Social Conflict Projects related to the development and use of resources can often lead to creation of tensions within and between communities; particularly in situations where the affected population is characterized by low levels of economic development and there is a struggle for access to resources. Using the information on socio-economic characteristics and social dynamics, the base line should look at whether there is a need to carry out a detailed conflict analysis. Issues to consider include:

What interests do the different stakeholders have and what are their relations to each other. Potential sources of conflict between different stakeholders.

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Will the project have an impact on the distribution of resources?

The SIA needs to aware of existing social and economic tensions and the potential for the project to create a situation where these tensions may be exacerbated leading to creation of conflict.

Gender Social impacts are often experienced very differently between men and women. Rather than carry out a separate gender analysis, the aim of the SIA should be to mainstream gender so that it is considered in all stages of analysis. In certain circumstances a project may adversely impact men rather than women, due either to the nature of the project or the socio-cultural and economic context of a society. What is important in a gender analysis is to understand the differential impact on men and women. Questions that need to be asked include:

- What are men and women’s social and economic roles in the impacted area? - Will the project impact adversely on men and women’s social and economic roles. - What institutional arrangements have been made for consulting with women? - Are there equal opportunities for both men and women to benefit from the Project? - Are there barriers to women’s participation and how can they be overcome without creating tensions

within the community.

MITIGATION AND MANAGEMENT OF IMPACTS AND ISSUES

ACTION PLANS AND MANAGEMENT SYSTEMS

Management plans, programmes and systems to address in an integrated and comprehensive fashion environmental and social impacts, issues and opportunities should be established with clearly stated outcomes or targets, timeframes, responsibilities and resources required. The Bank has issued a Guidance Note on Environmental and Social Action Plans which can assist in this respect.

The Plan needs to embrace adaptive management and include appropriate monitoring activities to ensure that:

mitigation measures are effective unforeseen negative impacts or trends are detected and addressed expected project benefits or opportunities are achieved

Monitoring should focus upon key indicators of project performance and social and environmental impact. Indicators should be aligned to elements of the existing pre-project baseline and be specific, measurable, achievable, relevant and conducted at an appropriate frequency.

Provision also needs to be made for: capacity building such as training of project staff or third parties (if appropriate) contingency and emergency response plans and measures (including adequate resourcing)

APPENDICES

Names of those responsible for preparing the ESIA References and Sources of Information Records of public meetings and consultations held Supporting Technical Data Photo Log

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Appendix BAnnex 1 - Suggested format for Environmental and Social Action Plan

No Action Environmental Risks Liability/ Benefits

Legislative requirement/Best practice

Investment Needs/Resources/ Responsibility

Timetable Action to be Completed by End of Year

Target and Evaluation Criteria For Successful Implementation

Comment

1 EHS Management and training1.1 Develop and

implement an Environmental Management System (EMS). .

Optimisation of environmental management through a formalised system. Provide resources for training and monitoring of emissions.

Voluntary and best practice

Own resources, external consultants.Cost Assign responsibilities

2012 Develop an EMS.Attain ISO 14001 or equivalent. Attain Annual EHS Report to the Bank