The World Bank RESTRUCTURING ISDS Electricity Supply Reliability Project () Integrated Safeguards Data Sheet Restructuring Stage Restructuring Stage | Date ISDS Prepared/Updated: | Report No: ISDSR28381 Regional Vice President: Cyril E Muller Country Director: Sebastian-A Molineus Regional Director: Lucio Monari Practice Manager/Manager: Sameer Shukla Task Team Leader(s): Emil Zalinyan The World Bank RESTRUCTURING ISDS Electricity Supply Reliability Project () Note to Task Teams: The following sections are system generated and can only be edited online in the Portal. . I. BASIC INFORMATION 1. BASIC PROJECT DATA Project ID Project Name Electricity Supply Reliability Project Task Team Leader(s) Country Emil Zalinyan Armenia Approval Date Environmental Category 26-May-2011 Partial Assessment (B) Managing Unit Is this a Repeater project? IECE1 PROJECT FINANCING DATA (US$, Millions) SUMMARY -NewFin1 Total Project Cost 52.00 Total Financing 52.00 Financing Gap 0.00 DETAILS -NewFinEnh1 World Bank Group Financing International Bank for Reconstruction and Development (IBRD) 39.00 Non-World Bank Group Financing Counterpart Funding 13.00 Borrower/Recipient 13.00 2. PROJECT INFORMATION The World Bank RESTRUCTURING ISDS Electricity Supply Reliability Project () Current Project Development Objective The project development objective is to increase the reliability and capacity of the transmission network. . Note to Task Teams: End of system generated content, document is editable from here. 3. PROJECT DESCRIPTION The project consists of the following: Part A: Strengthening of the power transmission network A.1. Provision of works, goods, and technical assistance for the replacement of an existing power transmission line from the Hrazdan Thermal Power Plant to Shinuhayr substation and the existing power transmission line Lalvar-Noyemberyan, including compensation and grievance mechanisms for land acquisition and resettlement. A.2. Provision of works, goods, and technical assistance for (i) the rehabilitation and extension of Haghtanak electrical sub-station, and (ii) the rehabilitation of Charentsavan-3, Vanadzor-1, and Zovuni electrical sub-stations. Part B: Technical Assistance Provision of goods, technical assistance, Training, and Operating Costs, to HVEN to strengthen its capacity in: operation and maintenance of power transmission assets, technical supervision, planning, procurement, financial management, and project management. Note to Task Teams: The following sections are system generated and can only be edited online in the Portal. . 4. PROJECT LOCATION AND SALIENT PHYSICAL CHARACTERISTICS RELEVANT TO THE SAFEGUARD ANALYSIS (IF KNOWN) The existing OTLs from Hrazdan TPP to Shinuhayr substation has a total length of around 230 km and runs along a northwest-southeast trending axis through Armenia. The physical environment along the existing corridor is not particularly sensitive or vulnerable. The land is mostly used for grazing or cultivated. There are also residential areas, land under commercial and manufacturing activities, and transport infrastructure. The transmission line corridor traverses the buffer zone of Lake Sevan National Reserve. The protected status of this area was established after the original transmission line had been constructed. The existing 25km Lalvar- Noyemberyan OTLs will be replaced with new OTLs running within the corridor, with some deviations in The World Bank RESTRUCTURING ISDS Electricity Supply Reliability Project () some parts required in order to avoid settlements and sensitive natural receptors. OTLs will run across a complex terrain, including grass-plains, valleys, canyons, steep forested slopes, and Debed River. In several locations, the OTLs over-span deep gorges with villages located on the bottom, which will not be affected by construction and operation of OTLs, however, the project will require land acquisition for tower foundation. Haghtanak substation is located in the capital city of Yerevan, in a sparsely populated area. The substation territory is fenced. It is accessible by a road, which passes nearby the facility. Most of the land around the substation is not in use. It carries next to no vegetation. Some of the land to the north of the substation is being cultivated. There is an industrial facility to the east of the substation. Charentsavan-3 substation is located in the Kotayk marz (region), near the city of Charentsavan. The substation territory is fenced. It is accessible by a local road, which passes nearby the facility. Some of the land around the substation is used by the local farmers primarily for cattle grazing and crop growing. Rehabilitation works will not impact adjacent land users or owners. Vanadzor-1 substation is located in the Lori marz (region), in the city of Vanadzor. The substation territory is fenced. It neighbors with the premises of a chemical plant, which is currently out of service. The rehabilitation will not impact any land users. Zovuni substation is located on the northern border of the city of Yerevan. The territory is fully fenced and the substation has an access road. The construction will not impact any private land plot adjacent to the substation. 5. ENVIRONMENTAL AND SOCIAL SAFEGUARDS SPECIALISTS ON THE TEAM Arcadii Capcelea, Environmental Specialist Sanjay Agarwal, Social Specialist SAFEGUARD_TABLE 6. SAFEGUARD POLICIES TRIGGERED Safeguard Policies Triggered Explanation The project activities would generate environmental and social impacts. To address Environmental Assessment (OP) (BP 4.01) Yes them, the Borrower prepared site-specific EMPs, which specify all necessary mitigation and monitoring activities. Performance Standards for Private Sector No Activities OP/BP 4.03 Hrazdan TPP-Shinuhayr OTL runs through the buffer zone of Lake Sevan National Reserve. There are certain land-use restrictions in this buffer zone, which are intended to protect of Lake Sevan Natural Habitats (OP) (BP 4.04) Yes watershed area through protection of rivers. The EMP includes appropriate mitigation measures, including turbidity control, spill prevention, habitat preservation, and biodiversity protection. Forests (OP) (BP 4.36) No This policy is not triggered. The World Bank RESTRUCTURING ISDS Electricity Supply Reliability Project () Pesticides will not be applied for vegetation control Pest Management (OP 4.09) No in substation or any other purpose related to the construction or operation phases of the project. Armenia is rich in physical cultural resources (PCR) and a screening assessment identified several areas and sites of cultural relevance along the corridors of OTLs. Chance finds of PCR could result from the installation of new foundations for the towers, Physical Cultural Resources (OP) (BP 4.11) Yes especially in the bypass areas, or from the construction of access roads and temporary works. Thus, a thorough PCR assessment and a PCR management plan, including chance find procedures, have been included into the ESIA. Indigenous Peoples (OP) (BP 4.10) No N/A. Acquisition of private land plots is required to construct tower foundations and access roads, along with the possibility that residential structures Involuntary Resettlement (OP) (BP 4.12) Yes close to the transmission line may have to be moved. HVEN has been and will continue conducting the land acquisition as per RAPs, which were approved by the World Bank. The project implementation does not include any works on dams and no part of the project- Safety of Dams (OP) (BP 4.37) No supported infrastructure depends in its operation on any existing dam. The project activities will not use and not influence, Projects on International Waterways (OP) No in any manner, any national or international (BP 7.50) surface waters and groundwater resources. The project does not include any activities in Projects in Disputed Areas (OP) (BP 7.60) No disputed areas. KEY_POLICY_TABLE II. KEY SAFEGUARD POLICY ISSUES AND THEIR MANAGEMENT A. SUMMARY OF KEY SAFEGUARD ISSUES 1. Describe any safeguard issues and impacts associated with the Restructured project. Identify and describe any potential large scale, significant and/or irreversible impacts. The restructured project is not expected to have significant irreversible social or environmental impacts and, therefore, is classified as environmental Category B. The project scope includes: (a) replacement of two existing (OTLs) closely following the existing corridor, and (b) rehabilitation of four substations. Many of the long term environmental impacts have already occurred and will not be significantly influenced by rehabilitation. Incremental permanent impacts will be restricted to relatively minor segments where new bypasses are planned. The physical environment along the existing OTL corridors is not particularly sensitive or vulnerable to The World Bank RESTRUCTURING ISDS Electricity Supply Reliability Project () impacts from construction and operation of OTLs. HVEN ensures that its contractors follow good construction practices. As observed from the operation of the present OTLs, once in operation, the OTLs would leave the surrounding environment relatively undisturbed. Temporary access roads have been mostly re-vegetated by natural attenuation; the OTL is no restriction to agriculture, horticulture, animal grazing or wildlife migration; and Lake Sevan Park is not impacted in any way by existing line. Due to the mostly grassy, sparse vegetation along the line corridor, only minor forest management is required, and no herbicides are used to control vegetation. Due to the proximity to the existing line, no impact on avian fauna beyond the already existing, is expected. The physical environment in and around the substations is significantly transformed and not vulnerable to any expected impacts. Out of all types of works to be undertaken at Haghtanak, Charentsavan-3 and Zovuni substations, relatively higher risks are associated with the replacement of small buildings within the land plots allocated for these substations, and the replacement main transformers (MTRs). Replacement of the existing small operational buildings will generate some demolition waste, which will have to be disposed of in an environmentally decent manner; while the replacement of MTRs will generate some hazardous waste. So the main challenges will be to ensure that the used transformer oils are not recycled in an informal manner, but are rather handed over to specialized entities for deactivation and safe recycling. Upgrading of Vanadzor-1 substation has fewer potential impacts given that its operational building will not be replaced. 2. Describe any potential indirect and/or long term impacts due to anticipated future activities in the project area. Operation of the rehabilitated substations will imply periodic replacement of MTR oil and unless undertaken in an environmentally sound manner, that may cause pollution of the environment and impact on human health. The only long term impact of the project is the land acquisition that is required for tower construction. For the ongoing OTL from Hrazdan TPP to Shinuhayr substation, HVEN undertook all design measures to avoid physical relocation. The same is done for the Lalvar-Noyemberyan OTL. Other impacts are expected to be limited. Agriculture will be possible in ROW after construction period, and grazing will be allowed within the corridor. Any private landowners of grazing lands will be compensated for any temporary or permanent impacts on their access to grazing resources. 3. Describe any potential alternatives (if relevant) considered to help avoid or minimize adverse impacts. Alternative to the project is the "no project". This would, while preventing any construction related impacts, make no difference in terms of the operational impacts (as it already exists). "No project" scenario was rejected as it carries high risk of disruptions in power supply, including power outages, as well as accidents at workplace due to highly deteriorated status of infrastructure, which was commissioned in 1950-70s and was not substantially rehabilitated ever since. Alternatives in the transmission lines’ routing were analyzed at the conceptual design stage aiming at the reduction of a need for land take and physical relocation, as well as minimizing risks of erosion on the slopes and impacts on relatively more valuable forest stands. Adjustments to the OTL routing was performed at the detailed design stage with full respect of the environmental and social impact assessment provided in the safeguard documents prepared for the project. The World Bank RESTRUCTURING ISDS Electricity Supply Reliability Project () The RPF of the original ESRP was updated to analyze the resettlement implications of the rehabilitation of the Lalvar and Noyemberyan OTLs, and RAP(s) were prepared and are being implemented. 4. Describe measures taken by the borrower to address safeguard policy issues. Provide an assessment of borrower capacity to plan and implement the measures described. For the Hrazdan-Shinuhayr OTL, six Abbreviated Resettlement Action Plans (ARAPs) have been prepared and implemented. The contractor has completed all construction work in all sections. In total, 702 households with 3,018 family members have been affected in the Hrazdan-Shinuhayr line of which 692 households have titles and 10 households are without titles. 167 households will lose more than 20 percent of their productive land. There is no physical displacement involved. Most of the impacts relates to loss of unused land plot or crops and/or trees. Currently, 466 private land plots have been acquired. Another 8 cases are pending due to technical/legal reasons. In all these 8 cases, compensation has been transferred to an escrow account with either a notary (6 cases) or the court (2 cases). For 6 cases the court has requested additional documents to accept the cases. The issues in these cases primarily involve absence of the PAPs from Armenia and/or lack of respective contact details, death of PAPs and nonexistence of identified and or reachable heirs and seizure of property by the RA Ministry of Justice Compulsory Enforcement Service. For the Lalvar-Noyemberyan OTL, two ARAPs have been prepared. Both ARAPs are currently under implementation. A total of 105 households with 363 family members will be affected under both the ARAPs. It will affect 86 households with title and 19 households without title. Two affected households will lose more than 20 percent of their productive land. There is no physical displacement involved so far. Most of the impacts relates to loss of unused land, crops and/or trees and a few support structures. Currently, of 116 land plots (60 private; and 56 community/state-owned), 79 have been acquired (32 privately owned; 47 community/state-owned). Additionally, 28 cases have been presented to court and compensation amounts for these cases have already been transferred to the notary or court deposit accounts. Owners of the land plots under expropriation in the courts have agreed to the proposed acquisition, however, lack proper documentation. 9 other community-owned land plots are in the process of being acquired by the project. HVEN has agreed to expedite the remaining cases so that ARAP implementation can be completed. To address potential environmental and social impacts, HVEN prepared site-specific EMPs for substations, which contain mitigation and monitoring plan along with their implementation arrangements. The EMPs were reviewed by the World Bank Environmental Specialist, which found it in full compliance with the National EA requirements and World Bank Operational Policies. HVEN remains the implementing agency for the restructured project. HVEN uses consultant services for supervision works under the project. The HVEN has shown satisfactory track record in environmental performance throughout the life of Project. The HVEN has an environmental and social safeguards specialist, which undertakes quality control of supervision consultants and conducts field trips to the sites of the project. 5. Identify the key stakeholders and describe the mechanism for consultation and disclosure on safeguard policies, with an emphasis on potentially affected people. HVEN, administrations of individual power substations, and all electricity consumers in Armenia supplied with power infrastructure targeted by the project are key beneficiaries and stakeholders of the project. They were involved and consulted from early stage of the project preparation onwards; specific concerns and perspectives were heard, recorded and factored into preparation of the safeguards documents. The final versions of EMPs for three existing substations, RPF, and RAPs for Hrazdan TPP - Shinuhayr OTL were prepared, disclosed, and publicly consulted. After incorporation of all relevant comments, the documents were re-disclosed in-country and on the World Bank's The World Bank RESTRUCTURING ISDS Electricity Supply Reliability Project () external website. An updated RPF was prepared, consulted upon, and disclosed in country and on the World bank's external website. RAPs for Lalvar and Noyemberyan OTL were also prepared and disclosed after public consultations. The project will continue supporting widespread stakeholder information-sharing and consultation. The project promotes gender-sensitive consultation mechanisms at all stages. The existing grievance redress mechanism will continue to be used to support citizen engagement in the project. The GRM is operated by HVEN and allows project affected people and other interested stakeholders to submit all types of complaints, suggestions, or questions related to the project. Local self-governing bodies on the community level are involved in the process of GRM as mediators between the stakeholders, community member and HVEN. All affected households were explained about the GRM during Public Consultation meetings as well as through the disclosed project information leaflets. The GRM has been functioning well and HVEN records all questions/concerns, and provides responses in timely manner. The draft EMP for rehabilitation of Zovuni substation in both English and Armenian languages was disclosed in the country (March 14, 2017) for conducting a virtual public consultation and to solicit public feedback. The disclosure was done on the website of HVEN. Furthermore, a hard copy of draft EMP was submitted to the respective municipality, while electronic copy of the document – to a number of environmental NGOs. During the public consultation period (March 14-27, 2017) no concerns, questions, or comments have been received on the draft EMP from any individual or a legal entity. The draft EMP for Zovuni substation was subsequently disclosed at World Bank's external website (May 26, 2017). Considering the fact of delay with commencement of construction works, the final version of the EMP will be re-disclosed on HVEN's and WB external websites by February 28, 2020 after final review by Regional Safeguards Advisor. DISCLOSURE_TABLE B. DISCLOSURE REQUIREMENTS ENV_TABLE Environmental Assessment/Audit/Management Plan/Other Date of receipt by the Bank Date of submission for disclosure 09-Mar-2011 09-Mar-2011 For Category ‘A’ projects, date of distributing the Executive Summary of the EA to the Executive Directors “In country� Disclosure Country Date of Disclosure Armenia 07-Apr-2014 Comments The final ESIA report for the sections of OTL from Hrazdan TPP to Shinuhayr substation was received by the Bank on March 4, 2011 and disclosed in-country and at Bank's external website on March 9, 2011. The final ESIA report for additional Lalvar and Noyemberyan OTLs was received by the Bank on July 16, 2015; was disclosed in-country on August 21, 2015; and on Bank's external website on August 26, 2015. The World Bank RESTRUCTURING ISDS Electricity Supply Reliability Project () EMPs for Haghtanak, Charentsavan-3, and Vanadzor-1 substations were disclosed in-country on April 4, 2014 and on Bank's external website on April 7, 2014. The draft EMP for rehabilitation Zovuni substation was disclosed in the country on March 14, 2017 and at World Bank's external website - on May 26, 2017. Considering the fact of delay with commencement of construction works, the final versions of the EMP will be re-disclosed on HVEN's and WB external websites by February 28, 2020. RESETTLE_TA BLE Resettlement Action Plan/Framework Policy Process Date of receipt by the Bank Date of submission for disclosure 09-Mar-2011 09-Mar-2011 “In country� Disclosure Country Date of Disclosure Armenia 07-Apr-2014 Comments The final updated RPF report, which includes Lalvar and Noyemberyan OTLs, was received by the Bank on July 16, 2015; was disclosed in-country on August 21, 2015; and submitted to InfoShop on August 26, 2015. RAP for Section 1 of the OTL from Hrazdan TPP to Shinuhayr substation was disclosed in-country and on Bank's external website on January 27, 2015. RAP for Section 2 of the OTL from Hrazdan TPP to Shinuhayr substation was disclosed in-country and on Bank's external website on January 27, 2015. RAP for Section 3 of the OTL from Hrazdan TPP to Shinuhayr substation was disclosed in-country and on Bank's external website on April 7, 2015. RAP for Section 4 of the OTL from Hrazdan TPP to Shinuhayr substation was disclosed in-country and on Bank's external website on August 28, 2015. RAP for Section 5 of the OTL from Hrazdan TPP to Shinuhayr substation was disclosed in-country and on Bank's external website on November 24, 2014. RAP for Right-of-Way land plots on Sections 3 and 4 of the OTL from Hrazdan TPP to Shinuhayr substation was disclosed in-country and on Bank's external website on January 8, 2016. RAP Part 1 of the Lalvar-Noyemberyan OTL was disclosed in-country and on the Bank's external website on December 20, 2017. The World Bank RESTRUCTURING ISDS Electricity Supply Reliability Project () RAP Part 1 of the Lalvar-Noyemberyan OTL was disclosed in-country and on the Bank's external website on October 26, 2018. COMPLIANCE_TABLE C. COMPLIANCE MONITORING INDICATORS AT THE CORPORATE LEVEL EA_TABLE OP/BP/GP 4.01 - Environment Assessment Does the project require a stand-alone EA (including EMP) report? Yes If yes, then did the Regional Environment Unit or Practice Manager (PM) review Yes and approve the EA report? Are the cost and the accountabilities for the EMP incorporated in the credit/loan? Yes NH_TABLE OP/BP 4.04 - Natural Habitats PCR_TABLE OP/BP 4.11 - Physical Cultural Resources Does the EA include adequate measures related to cultural property? Yes Does the credit/loan incorporate mechanisms to mitigate the potential adverse Yes impacts on cultural property? IR_TABLE OP/BP 4.12 - Involuntary Resettlement Has a resettlement plan/abbreviated plan/policy framework/process framework Yes (as appropriate) been prepared? If yes, then did the Regional unit responsible for safeguards or Practice Manager Yes review the plan? PDI_TABLE The World Bank Policy on Disclosure of Information Have relevant safeguard policies documents been sent to the World Bank for Yes disclosure? Have relevant documents been disclosed in-country in a public place in a form and language that are understandable and accessible to project-affected groups Yes and local NGOs? ALL_TABLE All Safeguard Policies The World Bank RESTRUCTURING ISDS Electricity Supply Reliability Project () Have satisfactory calendar, budget and clear institutional responsibilities been Yes prepared for the implementation of measures related to safeguard policies? Have costs related to safeguard policy measures been included in the project Yes cost? Does the Monitoring and Evaluation system of the project include the monitoring Yes of safeguard impacts and measures related to safeguard policies? Have satisfactory implementation arrangements been agreed with the borrower Yes and the same been adequately reflected in the project legal documents? III. APPROVALS Task Team Leader(s) Emil Zalinyan Approved By Safeguards Advisor Nina Chee 17-Dec-2019 Practice Manager/Manager Sameer Shukla 17-Dec-2019 . Note to Task Teams: End of system generated content