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REPUBLIC OF AZERBAIJAN

Agricultural Development and Credit Project-III

Environmental Management Planand

Environmental Guidelinesfor

Project Activities

November 2012

E4007 v1 rev

ADCP-3 EMP and Environmental Guidelines for Project Activities ,

TABLE OF CONTENTSABBREVIATIONS AND ACRONYMS.....................................................................................................................4

1. SUMMARY AND BACKGROUND.......................................................................................................................5

Environmental assessment – purpose..................................................................................................................5 The Project...........................................................................................................................................................5 ADCP-3 Project components...............................................................................................................................6 Project Stakeholders............................................................................................................................................7 Project Area.........................................................................................................................................................8 Project Environmental Aspects............................................................................................................................8 Agriculture related Environmental Issues...........................................................................................................8 Responsibility....................................................................................................................................................10

2. POLICY CONTEXT..............................................................................................................................................12

2.1 GENERAL............................................................................................................................................................122.2 THE WB SAFEGUARDS POLICIES THAT MIGHT BE TRIGGERED.........................................................................12

Table 2.1. World Bank’s Safeguard Policies and their relevance to the project.........................................................122.3 ENVIRONMENTAL ASSESSMENT.........................................................................................................................142.4 PROJECT ENVIRONMENTAL CATEGORY..............................................................................................................152.5 AZERBAIJAN ENVIRONMENTAL LEGISLATION AND PROCEDURES......................................................................15

2.5.1 International Cooperation..........................................................................................................................162.5.2 EIA Procedures..........................................................................................................................................17

2.6 PUBLIC INVOLVEMENT.......................................................................................................................................18Table 2.2: Level of Significance of Potential Impact...................................................................................................19

3. ENVIRONMENTAL ASSESSMENT..................................................................................................................21

3.1 GENERAL............................................................................................................................................................21Table 3.1. Important Environmental and Social Components...................................................................................21Table 3.2: Project Benefits...........................................................................................................................................22

BROAD CATEGORY................................................................................................................................................22

Table 3.3 Socioeconomic Benefits...............................................................................................................................23Table 3.4: Summary of Potential Major Environmental Impacts – broad project categories......................................24Table 3.5. Summary of Potential Major Environmental Impacts – likely subprojects................................................25

3.5 POTENTIAL CUMULATIVE IMPACTS....................................................................................................................263.7 MITIGATION........................................................................................................................................................27

4. ENVIRONMENTAL MANAGEMENT GUIDELINES.....................................................................................30

4.1 GENERAL............................................................................................................................................................304.2 MANAGEMENT....................................................................................................................................................304.3 MITIGATION........................................................................................................................................................30

4.3.1. Recommended Preventive Actions or Mitigation Measures for Laboratory.............................................314.4 MONITORING......................................................................................................................................................31

Table 4.1: Preliminary Selection of Monitoring Indicators.........................................................................................324.4.1 Monitoring plan...................................................................................................................................................334.4.2 Environmental monitoring of long term issues...................................................................................................34

5. ENVIRONMENTAL REVIEW PROCEDURE GUIDELINES........................................................................35

5.1 OVERVIEW..........................................................................................................................................................355.2. ENVIRONMENTAL SCREENING FOR CREDIT APPLICATIONS................................................................................355.3 ENVIRONMENTAL SCREENING FOR GRANT PROPOSALS......................................................................................365.4 SUB-PROJECT CATEGORIES.................................................................................................................................365.5 SECONDARY SCREENING....................................................................................................................................365.5. REJECTION OF SUB-PROJECT..............................................................................................................................375.6. ENVIRONMENTAL MONITORING........................................................................................................................375.7. REPORTING BY THE VCDS, PFIS AND THE PMU.............................................................................................37

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ANNEX 1. ENVİRONMENTAL CATEGORİES ACCORDING TO WORLD BANK OP 4.01.......................39

ANNEX 2. ENVİRONMENTAL SCREENING CHECKLIST FORMS..............................................................42

Table A-2.1 Farm Inputs Screening Checklist.............................................................................................................43Table A -2.2: Agricultural Enterprise Screening Checklist.........................................................................................43Table A- 2.3: Environmental Mitigation Plan.............................................................................................................44

ANNEX 3. ENVİRONMENTAL MİTİGATİON....................................................................................................47

Table A-3.1: Some Agricultural and Laboratory Good Practices – Towards a Protected Environment and Sustainable Agriculture................................................................................................................................................48Table A-3.2: Some Good Practices for Rural Enterprises – Towards a Protected Environment and Sustainable Rural Development................................................................................................................................................................50

ANNEX 4. ACCEPT/REJECT DECİSİON MAKİNG...........................................................................................51

Table A-4.1: Guideline for screening cumulative environmental impacts..................................................................52

ANNEX 5. ENVIRONMENTAL MONITORIMNG..............................................................................................54

Table A-5.1: Environmental Monitoring Plan.............................................................................................................54

ANNEX 6. PUBLİC CONSULTATİON FOR SUB-PROJECTS..........................................................................55

ANNEX 7. IMPACTS, CONSEQUENCES AND MİTİGATİON MEASURES..................................................56

Table A7-1. Laboratory Testing..................................................................................................................................56Table A7-2. Veterinary services..................................................................................................................................57

AUTOCLAVE DECONTAMINATION.............................................................................................................................57Table A7-3. Seed testing.............................................................................................................................................58Table A7-4. Fertilizer..................................................................................................................................................60Table A7-5. Pest Management/Pesticides..................................................................................................................61Table A7-6. Plant production technologies.................................................................................................................64Table A7-7. Livestock production technologies.........................................................................................................66Table A7-8. Slaughter houses.....................................................................................................................................67Table A7-9. Primary processing..................................................................................................................................68

ANNEX 8. INTERNATİONAL BEST PRACTİCE İN SAFETY OF RESEARCH LABORATORİES...........73

ANNEX 9. SUMMARY OF STAKEHOLDERS MEETING ON EMP................................................................78

102.................................................................................................................................................................................87

MAGNESIUM PHOSPHIDE....................................................................................................................................87

TABLES

Table 2.1. World Bank’s Safeguard Policies and their relevance to sub-project

Table 2.2: Level of Significance of Potential Impact

Table 3.1. Important Environmental Components

Table 3.2: Project Benefits

Table 3.3 Socioeconomic Benefits

Table 3.4: Summary of Potential Major Environmental Impacts – broad project categories

Table 3.5. Summary of Potential Major Environmental Impacts - subprojects

Table 3.6. Summary of Probable Residual Effects – subprojects

Table 4.1: Preliminary Selection of Monitoring Indicators

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Table A-2.1 Farm Inputs Screening Checklist

Table A -2.2: Agricultural Enterprise Screening Checklist

Table A- 2.3: Environmental Mitigation Plan

Table A-3.1: Some Agricultural and Laboratory Good Practices – Towards a Protected Environment

and Sustainable Agriculture

Table A-3.2: Some Good Practices for Rural Enterprises – Towards a Protected Environment and

Sustainable Rural Development

Table A-4.1: Guideline for screening cumulative environmental impacts

Table A-5.1: Environmental Monitoring Plan

Table A7-1. Laboratory Testing

Table A7-2. Veterinary services

Table A7-3. Seed testing

Table A7-4. Fertilizer

Table A7-5. Pest Management/Pesticides

Table A7-6. Plant production technologies

Table A7-7. Livestock production technologies

Table A7-8. Slaughter houses

Table A7-9. Primary processing

ABBREVIATIONS AND ACRONYMS

ACUA Azerbaijan Credit Union AssociationADCP-3 Agricultural Development and Credit Project-IIIAPL Adaptable Program LoanAzRIP Azerbaijan Rural Investment ProjectBOD Biological Oxygen Demand (liquid effluent)CAS Country Assistance StrategyCOD Chemical Oxygen Demand (liquid effluent)dB Decibels (noise level)DoSEE Department of State Ecological ExpertiseEA Environmental AssessmentEIA Environmental Impact AssessmentEIAR Environmental Impact Assessment ReportEMP Environmental Management PlanER Environmental ReviewGOA Government of AzerbaijanIAC Information and Advisory CenterIBRD International Bank for Reconstruction and DevelopmentIEC Important Environmental ComponentsIPM Integrated Pest ManagementLEA Limited Environmental AssessmentMENR Ministry of Ecology and Natural Resources

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MOA Ministry of AgricultureNGO Non-Government OrganizationPFI Participating Financial InstitutionsPID Project Information DocumentpH Measure of Acidy/Alkalinity : pH 7.0 is neutralPMU Project Implementation UnitRAC Regional Advisory CenterSAAC State Agency for Agricultural CreditsSEE State Ecological ExpertiseSPRD State Program for Regional DevelopmentSS or SP Suspended solids in air: Suspended Particulates (dust) in airSVS State Veterinary ServiceTS Total Solids in a liquid effluent (dissolved and suspended)VFU Veterinary Field UnitWB World Bank

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1. SUMMARY AND BACKGROUND

Environmental assessment – purpose

The objective of the Environmental Management Plan (EMP) for the Agricultural Development and Credit Project-III (ADCP-3) is to help ensure that the project proposed for World Bank financing is environmentally sound and sustainable and that the project interventions are in compliance with the requirements of the legislation of the Republic of Azerbaijan.

The project is classified as FI (Financial Intermediary) because Component C (provision of agricultural credits through designated banks) is the largest component.

It is a requirement of the Bank and Azerbaijan legislation that for a FI category project, all microprojects should be verified that they are in compliance with the Azerbaijan environmental laws and regulations and are consistent with World Bank policy (OP 4.01) and procedures on environmental assessment. As in the case of economic, financial, institutional and engineering analysis, environmental assessment is part of project preparation. The Environmental Management Plan provides the framework to address environmental considerations of activities to be financed under the ADCP-3.

The Project

The proposed project is being prepared as a third phase of APL and builds on the substantial progress made to date under the ADCP II. The Project Development Objective (PDO) of the project is to contribute to strengthening competitiveness of the Azerbaijan agri-food sector. The proposed project will build upon the lessons learned during implementation of the current phase of ADCP and would further promote agribusiness/food processing; further strengthen agricultural support services; upgrade and modernize the plant protection service and veterinary services; facilitate development of selected high-value chains by targeting key constraints in functioning of agricultural commodity marketing chains; and finally, would contribute to improving a regulatory and institutional basis for food quality and safety system.

The project proposes to develop new national standards in areas of production safety conforming to the international standards in collaboration with various donors; upgrade veterinary and quarantine services to qualify for international accreditations; introduction of international ISO standards; rehabilitate, and in necessary cases building new (e.g. bio-control agents rearing line for enhancing integrated pest management) and refurbishing; procurement of new laboratory equipment to improve the quality or research. Additionally, laboratory staff training which is necessary for efficient use of resources made available under the project, and creation of additional opportunities to liquidate toxic laboratory wastes (e.g. appropriate incinerator setup) will ensure reduction in agro-chemical use and mitigate the environmental risks related to the handling of chemically and biologically hazardous substances significantly. Finally, the project will contribute to improving regulatory and institutional basis for enhanced food quality and safety system, both for domestic consumption and export markets.

The ultimate aim of the project would be to contribute to improving the earning potential of producers and processors through value addition and create additional and higher earning

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employment potential in rural space. The proposed objectives are in line with the Government's food security program and regional development strategies.

The major focus of the project would be to support the development of commercial activities in the rural areas by enhancing the value chains and improving access to financial resources, product quality, competitiveness and capacity of Azerbaijan rural entrepreneurs and producers. The project would support the development of market-driven agri-food value chains; continue the process of expanding financial services for rural enterprises through commercial banks; and scaling up the privatization of veterinary services while continue to upgrade and modernize the State Veterinary Service to support public health functions. The project would also address the increased demand for food safety standards.

While there is little likelihood of harm to environment under this project or its interventions, the Project will strive to do good by ensuring best practice adoption and by addressing the residual impacts of general decline in environmental management of post-Soviet decades. As a matter of fact, significant positive effects on the environment are expected with the use of resource management approaches. Social and economic conditions in rural area as well as information marketing infrastructure will be improved. Increased food safety, including improved monitoring of pesticide residues, and enhanced and streamlined regulatory environment will contribute to significant reduction of negative impacts as well as better enforcement of existing environmental legislation. Thus social and environmental risks during the project implementation are expected to be minimal, and adequate capacity for their monitoring (environmental and social safeguards) already exists in the PMU.

ADCP-3 Project components

The proposed project largely builds on the design of the on-going ADCP II, and it’s institutional and implementation mechanisms, which have been successful in terms of results, achieved on the ground, and achievement of overall development objectives. Additionally ADCP-3 will pursue innovation in food safety and value chain development. The project shall comprise the following components: (i) Support for Sanitary and Phytosanitary Services; (ii) Agribusiness Value Chain Development; (iii) Access to Credit; and (iv) Project Management.Component A: The National Food Safety Strategy has been developed with assistance from the FAO and submitted to the Government. Similarly, the national veterinary reform strategy for the State Veterinary Service (SVS) has been developed together with the World Organization for Animal Health (OIE) and the national phytosanitary strategic framework was created with technical assistance from the International Plant Protection Convention (IPPC). These three strategic plans would provide the guidance and specific activities and interventions to be supported under the project. The component would be structured into three subcomponents: (i) National Food Safety Strategy and Capacity Building; (ii) Upgrading Plant Health and Phytosanitary System (iii) Animal Health and Veterinary Services.

Component A: Support for sanitary and phytosanitary servicesThis component would support strengthening the efficiency and effectiveness of sanitary and phytosanitary services in order to reduce

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existing obstacles to agricultutal and food trade. The component investments would support approximation with the requirements for regional or international trade and to create market opportunities for iport substitution in the agri-food sector. Activities under Component A will be grouped into three subcomponents: (i) National Food Safety Strategy and Capacity Building; (ii) Upgrading Plant Health and Phytosanitary System (iii) Animal Health and Veterinary Services.

Component B: Agribusiness Value Chain DevelopmentThis component would finance activities aimed at improving productivity and market integration of selected supply chains and promote linkages amongst value chain participants. The component will help agro enterprises, farmers and others to actively engage in the development of commodity value chains by partially financing demand-driven investment proposals. The component would also support activities for improving seed varieties and quality of seeds entering the market. The activities will be structured into two sub-components: (i) Investment and advisory support for agribusiness value chain development, and (ii) Seed sector development. Investments under this Component are expected to result in the development of selected supply chains and widespread dissemination of lessons learned to other farms and businesses.

Component C: Access to CreditThe objective of the component is to enhance access to financial services for agribusinesses operating in Azerbaijan’s agrifood sector, in particular towards enhanced competitiveness of the sector, improved quality and food safety standards, and establishment of market linkages. The project will build on the experience gained during ADCP-II which has achieved sizeable results with provision of financial services to medium agribusiness. Under ADCP II, some 119 agribusinesses covering a broad range of sub-sectors have been financed for a total of US$ 18 million. ADCP II also supported capacity building to participating banks to improve their skills in appraising agriculture-related investment loans.

The project will further expand the access to the investments financing through additional lending resources for use by banks and leasing companies for on-lending agribusiness. The project will also support introduction of new financial products better tailored for satisfying the specific needs of the businesses operating in the agrifood sector. Finally, the project would support introduction of agricultural insurance risk management mechanisms for improved risk mitigation in the agricultural sector and implement capacity building program for the participating financial institutions.

Component D – Project Management and Results MonitoringThis component will finance the administrative and operational project implementation and management costs (FM, procurement, safeguards compliance, M&E), including overheads of Project Management Unit (PMU) professional staff as well as support staff. ADCP 3 will continue the current

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practice of regular and rigorous project monitoring and using mixed quantitative and qualitative methods.

Project Stakeholders The main project stakeholders are farmers, agri-businesses, Ministry of Agriculture, as well as the Ministry of Finance and Ministry of Economic Development.

Project AreaThe project coverage is country-wide. The activities under Component A would cover the Stet Phytosanitary Control Services (SPCS) and the network of animal health and veterinary laboratories. The activities to be supported under Components B and C will be implemented in all rural areas of Azerbaijan, depending on demand for agricultural grants and credits.

Project Environmental Aspects

Overall, the project is not expected to have significant environmental implications, and anticipated positive effects are associated with the increased food safety and animal health, adoption of best practices by plant and animal health laboratories and agri-businesses, and improving capacity of agricultural and banking organizations and farmers in terms of environmental management. The environmental concerns relate to inadequate environmental practice in the laboratories to be equipped under Component A and B, indirect impact of increased pesticide use that might be caused by the TA to be delivered under Component A and B, and environmental impacts associated with the implementation of sub-projects under Component B (grant program), such as construction of small-scale farm infrastructure, and under Component C (credit line), such as animal husbandry, agro-processing, fruit and vegetable farming, small scale construction of agricultural facilities etc.

Depending on demand, the project might include raions in the northern region of Azerbaijan where there are national parks, forests and natural reserves that may be impacted by project interventions. Investments that negatively affect national parks, forest or habitats will not be allowed for funding under the project.

This EMP has been prepared to identify potential impacts, mitigation measures and mechanisms for implementation and monitoring. In addition, the Recommendations for the Development of the National Integrated Pest Management Program (IPM) and Pest Management Plan (PMP)have been prepared to address issues related to possible increased use of pesticides and consider introduction of the IPM principles country-wide.

It will be ensured that the IPM aspects are duly covered by the extension services.

Agriculture related Environmental IssuesAzerbaijan has a number of environmental issues, many directly or indirectly related with agriculture, making them relevant to this project that should therefore be addressed. Avoiding harm, the Project will promote activities that might enhance environmental compliance that may mitigate some of the past harm. .

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The operation of agricultural and rural enterprises can also cause negative environmental effects. The issues are listed below, with causes, but in no particular order of importance:

• Groundwater pollution – chemicals including agricultural • Surface water pollution – chemicals including agricultural • Water losses – irrigation systems • Soil salinization and alkalination – irrigation systems • Water logging – irrigation systems (drainage) • Fisheries destruction – over fishing, pollution, and loss of breeding habitat • Biodiversity losses (including pressure on relatives of domestic crops, fruit trees and

medicinal plants) – grazing and deforestation • Soil erosion – overgrazing and deforestation • Soil fertility losses – cultivation practices • Land contamination – industrial wastes • Environmental health and hazards – food contamination and exposure to pollutants

In addition to these issues, there are others related to agro-processing and other agribusiness enterprises, major concerns relate to effluent discharge and their impact on water quality, water use, disturbance of significant sites for biodiversity and cultural protection, and general health and safety issues. The State Phytosanitary Control Service had prepared a list of pests and disease species that pose a threat to Azerbaijani agriculture.

While small and medium agricultural enterprise is not potential polluter, except for minor liquid and solid waste generation, some particulates and gaseous discharge, and transport and machinery noise especially in inhabited areas, therefore, every investment in these through the grant program and credit lines from commercial banks will be carefully screened for any negative impacts and appropriate mitigations built into their specific EMPs. These would need to be mitigated to National Standards and EMP guidelines by incorporating the necessary controls and treatment systems in the design and, during procurement, by specifying equipment and processes that meet these standards. Processors would also need to incorporate National safety measures for personnel in the vicinity of operating machinery.

The project is not expected to produce major environmental impacts. However, some investment from the grant program and loan proceeds may involve environmental issues related to, for example, the use and storage of agricultural chemicals, laboratory/testing stations, waste management at farms, agro-enterprises, and location or site preparation for facilities or agricultural techniques.

The major potential impacts associated with the sub-project categories including atmosphere water and soil contamination, air quality deterioration, loss of biodiversity and impacts on biophysical resources, including soil erosion. Of the categories, laboratory testing, agriculture production and processing technologies will contribute to the most significant impacts if mitigation measures are not taken into consideration. The production and processing sectors’ activities are usually associated with the generation of various types of wastes: effluents which pose a risk of the contamination of surface water course and underground waters; gas emissions polluting the atmosphere; and solid wastes.

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Special attention will be given to potentially toxic substances application for veterinary and quarantine laboratories activities as well as when implementing the subprojects contemplating to apply pesticides and fertilizers, to ensure proper mitigatory measures are built in their respective EMPs.

Responsibility

During implementation of some of the sub-projects, some impacts to the soil, flora and fauna, soil structure and social environment through discharge of solid and liquid type wastes to environment, emissions of harmful gases to atmosphere and other potential impacts would be mitigated on the basis of good practice as described in the EMP, consistent with existing standards of Azerbaijan. This process besides common requirements also includes additional ecological requirements for projects to be formulated before decision is taken on allocation of funds on the basis of relevant standards, control of purchase of some equipment, and selection of appropriate technologies.

The package containing the list of requirements for grant and loan applications should also include requirement for environmental assessment (EA) applied to project. Depending on initial environmental screening, this may require no EA (e.g. trade, rural advisory services), the Environmental Review (ER), Limited Environmental Assessment (LEA) or Environmental Impact Assessment (EIA), and necessary document would be added to the application package

Sub-projects financed through project grant program and credit lines must be in compliance with the environmental laws and regulations of Azerbaijan and with World Bank safeguard policies. Buildings, equipment and processes; production, storage and marketing technologies; production and processing materials; construction sites and factories, and working environments must all comply with the relevant environmental laws.

Environmental risk management of grants and sub-loans should become a part of grants, sub-loan and micro-loan appraisal by the project’s participating financial institutions. Grant administrators ans Loan officers should be able to verify that grant, sub-loan and micro-loan applications are in compliance with Azerbaijan laws and regulations and will not cause enduring harm to the Azerbaijan natural environment; and comply with the Bank’s environmental guidelines, which require financial intermediaries to undertake environmental screening of the sub-project:

a) To check for potential environmental problems against a checklist, and to categorize and quantify the risk against pre-determined charts;

b) To call for an ER, LEA or environmental impact assessment for any proposal that indicates more than minimal levels of risk.

It is envisaged that the grant administrators, loan officer (or an environmental specialist) will make decisions on environmental and safeguard compliance, provided that there are no complex environmental issues involved in the proposal.

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In the case of complex environmental issues that are beyond the experience of the grant adminsitartor or loan officer, the Value Chain Development Secretariat (VCDS) or PFI will request assistance from the PMU to advise the VCDS or PFIs on the scope of an environmental mitigation plan for the application to the PFI. In case of any doubt, the PFI would consult with the PMU.

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2. POLICY CONTEXT2.1 General

The Project has not been finalized at the stage of environmental assessment although significant changes to the concept and the current description of components are not anticipated.

The challenge in conducting an EA for the Project is that there are no location specifics for the Project (the intent is that the Project and the grants and credits available through the Project will be available country wide). The other challenge is to attempt to determine as best as possible the various activities that individual farmers, agribusiness (including agro-processors) will wish to pursue in terms of loan proposals. As described in the following sections, a list of activities has been prepared based on previous similar studies and on discussions with stakeholders. It should be noted, however, that this list may not be comprehensive, and at the same time it may contain activities that will not be pursued by potential borrowers.

2.2 The WB safeguards policies that might be triggered

There are key 10 Environmental and Social World Bank Safeguard Policies which are intended to ensure that potentially adverse environmental and social consequences of projects financed by Bank are identified, minimized and mitigated. World Bank Safeguard Policies have a three-part format: Operational Policies (OP) - statement of policy objectives and operational principles including the roles and obligations of the Borrower and the Bank, Bank Procedures (BP) - mandatory procedures to be followed by the Borrower and the Bank, and Good Practice (GP) - non-mandatory advisory material. World Bank's Safeguard Policies and their relevance to sub-projects to be funded under the ADPC-3 Project Components (sub-projects) are indicated in the Table 2.1 below.

Table 2.1. World Bank’s Safeguard Policies and their relevance to the project

Safeguard Policies RelevanceEnvironmental Assessment (OP/BP 4.01)This Policy aims to ensure that projects proposed for Bank financing are environmentally and socially sound and sustainable; to inform decision makers of the nature of environmental and social risks; To increase transparency and participation of stakeholders in thedecision-making process

Certain activities under Component A (laboratory upgrade and TA), Component B (grant program and TA) and Component C (agricultural credits) can directly cause environmental impacts. The environmental issues to be dealt with, may include collection and disposal of animal waste and waste water, construction related issues (in case of small scale construction of rural facilities), impacts related to agro-processing, and impacts related to environmental management practices in laboratories to be upgraded under the project. These impacts are anticipated to be temporary, reversible and can be avoided, minimized or duly mitigated if managed appropriately. Component A will include support for upgrading of laboratories, including minor works and equipment among other

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Safeguard Policies Relevanceaspects. Also, TA to be delivered under Components A and B may have environmental implications (for example, lead to increased use of pesticides).

Natural Habitats (OP/BP 4.04)This Policy aims to safeguard natural habitats and their biodiversity; avoid significant conversion or degradation of critical natural habitats, and t ensure sustainability of services and products which natural habitats provide to human society

Generally it is expected that there will be no important wildlife and wildlife habitats in the vicinity of the ADCP-3 sub-; if such cases occur, an EA will be required for specific sub-projects. If the sub-project-specific EA identifies risk of negative impacts on important wildlife and habitats, such sub-project will not be approved.

Pest Management (OP 4.09). This Policy is to ensure pest management activities follow an Integrated Pest Management (IPM) approach, to minimize environmental and health hazardsdue to pesticide use, and to contribute to developing national capacity to implement IPM, and to regulate and monitor the distribution and use of pesticides

This policy is triggered because, while not financing directly the purchase of pesticides, the project may lead to the increased use of pesticides. This will be mitigated through the capacity building (trainings), extension services, and specific measures provided in the framework document and specific EMPs. The Recommendations for the Development of the National Integrated Pest Management Program (IPM) and Pest Management Plan (PMP) has been prepared, with a dual purpose to (i) indicate how safe pesticide handling and integrated pest management practices will be promoted under the project, and (ii) suggest strategic approach for promoting integrated pest management in the country. The project related recommendations of the PMP have been duly incorporated into the project EMP.

Projects on International Waterways (OP 7.50). This Policy ensures that riparian States are duly notified of projects affecting common water bodies. It is applied for any investment involving water abstraction, release of water or materials into water, or hydrological impacts (regardless of scale) on water body shared by 2 or more countries (aquifers, open seas excluded; exception available for rehabilitation of existing schemes)

The project support for development of value chain would include inter alia investments for the improvement of on-farm infrastructure, such as small irrigation systems. Such activities, if any, are likely to be developed inter alia on the transboundary rivers Samur, Kura and Araz, flowing into the Caspian Sea and considered international waterways for the purposes for the Word Bank Operational Policy on Projects on International Waters (OP 7.50). The proposed project, however, is not expected to have any significant impacts on the quantity or quality of water flowing through these rivers or into the Caspian Sea. It is expected that sub-projects would not produce a noticeable change for the abstraction volumes of the systems and would not have an adverse change to the quality or quantity of river flows as the works would not change the nature of the original systems. The irrigation infrastructure improvements will not result in significant increases in either withdrawals from or discharges to the international waterways.Therefore, the project is not expected to have any adverse effects on the water flows or the rights of the other riparian states on the international waterways, so

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Safeguard Policies Relevancethe Bank is seeking a waiver pursuant to paragraph 7(a) of OP 7.50 for this safeguard policy.

Disclosure Policy (BP 17.50) supports decision making by the borrower and Bank by allowing the public access to information on environmental and social aspects of projects and has specific requirements for disclosure

The EMP has been duly disclosed and consulted in the country before appraisal and in the WB Infoshop.

2.3 Environmental Assessment

The World Bank requires an environmental assessment of projects proposed for Bank financing to help ensure that they are environmentally sound and sustainable, and thus improve decision making (OP 4.01, January 1999). The Bank favors preventive measures over mitigatory or compensatory measures, whenever feasible.

The ecological analysis is the process, the volume, depth and type of which depends on potential ecological impact, features and volume of a submitted project. EA assesses the potential ecological risks of a project and its impact to the territories covered by the project; analyses alternatives to the project; determines ways for development of choice, location, planning, design and execution of the project, by taking measures on mitigation, compensation and ensuring minimum negative and strengthening its positive impacts to the environment.

The EA takes into account the environment (air, water and land); human health and safety; social aspects ( involuntary resettlement, and cultural heritage sites ); and trans – boundary and global environmental aspects along with changes taking place in the project area and the country; results of ecological studies held over the country, plans of local ecological measures; common political framework of the country, local legislation and institutional possibilities on ecological and social aspects; obligations of the country on international Agreements and Treaties concerning the projects activities. The Bank does not fund the project activities which are contrary to country’s obligations.

The coverage and depth of the EA process on ADCP-3 is determined by specific properties of proposed sub-projects. It is anticipated, that sub-projects to be funded by ADCP-3, as a rule, will not trigger the process of full-scale analysis of impacts (EIA) to Environment. The EA is an inseparable part of determination, design, assessment, execution based sub-projects. Key considerations to be taken into account during the EA process include:

Generic initial screening to determine appropriate environmental assessment; Compliance with existing environmental regulations in Azerbaijan; Linkages with social assessment; Analysis of alternatives;

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Public participation and consultation with affected people and organizations; and Disclosure of information.

2.4 Project Environmental Category

The Bank undertakes environmental screening of each proposed project to determine the appropriate extent and type of EIA. The Bank classifies the proposed project into one of four categories, depending on the type, location, sensitivity and scale of the project and the nature and magnitude of its potential environmental impacts. The four Categories are A, B, C, and FI, and these categories are detailed in Annex 1. Under Azerbaijan Law an EA is grouped in four environmental categories (1,2,3, or 4), the first three of which are approximately equivalent to Bank environmental categories A, B and C. Azerbaijan Category 4 relates to project activities that have no environmental impact but may need some form of permit and can also be considered as equivalent to Bank category C.

ADCP-3 has been classified as Environmental Category FI because Component C supporting agricultural credits for sub-projects is the largest part of the project. A Category FI project involves investment of Bank funds through a financial intermediary (FI), in subprojects that may result in adverse environmental impacts. Sub-projects may be defined as Category A, B or C within the FI Category. Category A sub-projects will not be eligible for financing. The eligible project activities under ADCP-3 would be Bank Category B or C (Azerbaijan Category 2 and 3 respectively). It is important that the Value Chain Development Secretariat (VCDS), Participating Financial Institutions (PFIs) and regional credit officers are able to identify the Environmental Categories of activities for which funding is being requested. The VCDS and PFIs are required to screen proposed grant and credit applications respectively and must ensure that beneficiaries conduct an appropriate EA for each sub-project, when appropriate. The VCDS and some PFIs may not initially have the technical capacity for environmental screening, but will be trained in environmental issues under the Project before they start screening grant and credit applications. In any case, the PMU Environmental Specialist will provide for prior review of the grant and credit applications and will assist the VCDS and PFIs at all stages of the review and taking decision on sub-project applications. The Environmental Specialist will also advise on complex environmental issues. Based on the sub-project application, the VCDS and PFI must ensure that the sub-project meets the relevant environmental requirements of national and local authorities and is consistent with provisions of this EMP. The sub-project proponent may be required by the PFI to provide an Environmental Assessment and Environmental Management Plan with mitigation measures to be included in the design.

2.5 Azerbaijan Environmental Legislation and Procedures

The Constitution of Azerbaijan Republic (1995) states that nature and all natural resources belong to the people. Nationals of Republic are obliged to protect the nature and its resources. State, in its turn, undertakes efficient, science-based use of land, water resources, flora and fauna, to protect them, ensure air quality, develop the natural resources, recover them and improve quality of environment.

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The Law “On Protection of Environment” is one major laws regulating protection of natural resources and efficient use of them (1999). The Law determines major principles for protection of nature, rights and duties of state, public organizations and nationals in this sphere, provides basis of responsibility for violation of requirements of the nature protection legislation, approves major normative for EA quality, ecological requirements for sphere of economic activity, envisages the role of community in ecological monitoring and control.

The Law on Protection of Environment (Article 42) determines main purposes and duties of State Ecology Expertise (At present the draft of new Law on State Ecology Expertise is in the stage of development).

Besides, the questions related with protection of environment and regulation of use of nature is regulated with following Laws of relevant legislation of Azerbaijan Republic: Water Code (1997), Land Code (1999), Forest Code (1997), On Entrails (1998), On Protection of Flora (1996), On Fauna (1999), On Obligatory Insurance (2002), On radioactive Wastes (1994), On Industrial and Household wastes (1998), On Radioactive safety of population (1997), On Sanitary – Epidemiological Safety (1992), On Melioration and Irrigation (1996), On Water Supply and Sewage (1999), On Safety of Hydrotechnical Plants (2002), On State land cadastre, monitoring of lands and structure of earth (1998), , On protection of the Soil fertility (1999), On specially protected nature areas and objects (2000).

The Cabinet of Ministers issued number of Regulations and Guidelines for effective implementation of Ecology Legislation and the President’s relevant decrees and resolutions and to support provision of mechanism for implementation.

Republican criminal legislation and legislation on administrative faults includes some measures directed to protection of environment and efficient use of nature.

The relevant legislation in force includes some laws regulating activity of natural persons and legal entities in the various spheres of use of natural resources (underground resources, water and land resources, forests, fishes, etc.), also laws on Public Health, Construction, Hydrometeorological Activity and other laws and legal – normative document consisting of articles related with protection of environment.

2.5.1 International Cooperation The International Agreements and Conventions signed by Azerbaijan are inseparable part of legislative system of the country.

During the several last yeasr, Azerbaijan has become a party to more than 15 international conventions related to environmental protection.

Each law of Republic of Azerbaijan includes a special chapter or article stating that if International Agreements provide rules which differ from existing relevant rules of Azerbaijan Legislation, the rules of international agreements/protocols should prevail.

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2.5.2 EIA Procedures

In 1996 Government of Azerbaijan adopted the procedure of EIA process which comply with the systems used in most countries. The new rules are described in the Regulation on conducting Environment Impact Assessment in Azerbaijan Republic (UNO / State Ecology Committee, 1996). This Regulation states, that “Activities on assessment of impacts of wastes to environment should begin in the stage of planning of the project”.

The process of Environmental Impacts Assessment is one of the means of regulating protection of environment, efficient use of nature and effectiveness of economic development.

This existing normative, legal basis of the Azerbaijan Republic broadly uses the notion of EIA. The need for EIA activities is described in following documents:

Law on protection of environment (1999);

Law on ecological safety (1999);

Regulations of EIA process in Azerbaijan Republic (UNDP / State Ecology Committee, 1996);

(Draft Laws “EIA Process” and “Ecological Expertise” are in the preparation stage ? ).

In the EIA process the main objects are projects of state importance which cover the various spheres of industry and agriculture.

The objective of the EIA process is protection of State’s natural resource base while pursuing economic growth through industry and agriculture, preventing environmental degradation as well as ensuring recovery of at least some of the deterioration inflicted in the past, balancing of future economic development with environmental conservation and creating environmentaly, socialy and economically development to improve living standards. .

The State Expertise Board of the Ministry of Ecology and Natural Resources is the authorized state organ for the EIA process.

The EIA process begins with the planning and feasibility preparation of the intervention. The Applicant (the project proponent, nature user) is responsible for content and final version of EIA document submitted to Ministry of Ecology. The Applicant bears the responsibility for fulfillment of conditions shown in the given permission and also for carrying out of monitoring of the project. For ADCP-3 category B sub-projects the state expertise opinion should be obtained by sub-project applicants from the MENR. The MENR should be approached after the sub-project category is assigned.

During the EIA the Ministry of Ecology stating its position on this process should pay special attention to following:

Use of new technologies;

Volume and complexity of proposed processes and technologies;

Anticipated impacts on the environment;

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Impact on social – economic spheres of the district hosting the planned work;

Public opinion about the project, etc.

In the Ist stage: The originator (applicant) of the activity submits application to Ministry of Ecology and informs about major project decisions and possible results of negative Impacts to Environment.

Ministry of Ecology after consideration of the Application informs the Applicant about necessity of carrying out of EIA and scale of this activity. In rare cases, after consideration of application, the permission for carrying out of work may be given immediately (Article 2.5).

In the IInd stage: The document(s) (EIA) prepared by the Applicant are evaluated by the Group of Experts and Summary prepared. The summary also includes proposals and objections/suggestions of the community. On the basis of the summary, the Ministry of Ecology may give permission for work or refuse to grant permission, explaining reasons for rejection. The Ministry of Ecology takes a maximum of three months for consideration of EIA documents.

The Regulations include requirements for components – content of the Summary. The permit issued to Applicant specifies obligatory conditions that must be met to ensure strengthening of environmental management and determine monitoring parameters. The Ministry of Ecology retains the right to verify accuracy and authenticity of the results of monitoring.

The main laws of the environmental regulatory framework include the Law “On Protection of Environment” (1999). The Law determines major principles of protection of Environment, rights and duties of state, public organizations, and nationals in this sphere, formulates bases of responsibility for violation of requirements of legislation on protection of Environment, confirms major normative of quality of Environment, ecological monitoring and control, role of community.

Main duties and responsibilities of State Ecology Expertise and Public Ecology Expertise are delineated in the Law on Protection of Environment (Article 42) (Draft of the new Law on State Ecology Expertise is in the stage of preparation). Observation of opinion of the State Ecology Expertise (SEE) is obligatory. The public opinion is necessary for adoption of optimal or alternative decisions. But Public Ecology Expertise differ from the SEE and featured by informative and recommendation character.

2.6 Public Involvement

One of the major principles in the area of environmental protection according to the Law “On Environmental Protection” (Article 3) is participation of the population and public organizations in the discussion of ecological issues.

In accordance with the “Provision on the process of environmental impact assessment (EIA) in Azerbaijan”, where the full EIA is required, the developer of Design documentation has to inform the public about the design decisions made through mass media, submit the report

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copies and provide additional information, which will be requested by the Expert Group to answer the questions raised by the public.

The public participating in the discussion of the Projects can be conventionally divided into two groups. One group usually consists of the people who will be in some way affected by the activity planned under the Project. The other group is more often represented by participants of the ecological organizations, activists, groups or specialists concerned with the ecological problems in the given region. The Client and the EIA Developers should organize a meeting with the public and be ready to answer the questions raised by the representatives of some public group or another.

2.7. Criteria for Impact Assessment

Criteria used for determining the significance of an impact includes severity, extent, duration, frequency, possibility of occurrence, and possibility of reversibility of the impact. The extent of each of the criteria was based on judgment and no numerical ranking or consideration was given.

Project activities may have varying levels of potential impacts and for each of these a matrix has been established that describes the potential direct and indirect impacts that can be expected, and the consequences of these impacts. The mitigation action to these impacts are also provided. Each input is given a level of impact significance prior to mitigation and a level of significance (for the residual impact) assuming that mitigation is carried out. All ‘levels of significance’ ratings (Table 2.2), and other ratings, are relative and subjective.

Table 2.2: Level of Significance of Potential Impact

Level of Significance DescriptionVery High SignificanceAzerbaijan Law Environmental Categories 1

Potential impact of the enterprise could cause damage to an IEC over a large area affected (e.g. loss of important habitat, loss of biodiversity, loss of large areas of productive land). Mitigation is not possible and the impact is irreversible.

High SignificanceAzerbaijan Law Environmental Categories 1 or 2

Potential impact of the enterprise could cause irreparable damage to a small area (e.g. on site) of an IEC; or, potential impact could cause damage to an IEC over a large area, but the ecosystem can still function (e.g. surface water contamination causing limited aquatic ecosystem damage). The impact is reversible over a long period of time.

Moderate SignificanceAzerbaijan Law Environmental Categories 2 or 3

Potential impact damages an ecosystem over a small area but it is still functional and the damage is reversible over a long period of time. Damage to an ecosystem over a large area, still functional, and the damage is reversible over a relatively short period of time.

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Low SignificanceAzerbaijan Law Environmental Categories 3 or 4

Potential impact of the enterprise could cause damage to an IEC over a small area but system still very functional and damage is reversible over a short period.

No ImpactAzerbaijan Law Environmental Categories 4

Non measurable impact.

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3. ENVIRONMENTAL ASSESSMENT3.1 General

The overall environmental effect of the Project should be positive. Farming and agri-business loans will result in improved agricultural production and marketing, and in general, improved socioeconomic conditions of the rural population. Other aspects of the Project including the extension services, will also contribute to an improved socio-economic environment in the rural areas. The Project will further contribute to the country’s food security, hopefully contribute to the generation of foreign exchange through increased agricultural exports, and significantly contribute to the alleviation of rural poverty. . In the past 20 years rates of chemical inputs in agriculture have been significantly reduced, resulting in cleaner watercourses, lower levels of soil contamination and relatively chemical free food, although residues in soil and water, and their effects, still remain. The Project could lead to an increase in the use of farm inputs but mitigation measures, extension services and training associated with the Project should minimize the potential negative impacts associated with these inputs.

3.2 Important Environmental and Social Components

A number of broad environmental issues have been identified and these have been used to compile a set of important environmental components (IECs). IECs are those components of the environment which society generally feels are worthy of protection in light of the general activity (e.g. agricultural development) that will occur. Table 3.1 lists the IECs identified.

Table 3.1. Important Environmental and Social Components

Physical Components Biological Components Socioeconomic Components

Soil quality Soil fertility Soil erodibility Soil organic content Hydrological regime Groundwater quality Surface water quality Topography Land Air quality

Forests Flora Fauna Forest habitat Aquatic ecosystems Livestock Crops Germplasm

Culture Employment Income Poverty Gender Education Health Migration Waste disposal Domestic water Fuelwood Markets and

marketing

3.3 Project Benefits

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Project activities are expected to lead to increased incomes of farmers, rural entrepreneurs, and other rural residents. This increase in farmers’ income would result from the direct incremental benefits of the competitive funding sub-projects implemented, as well as the spread-over effects in terms of: (i) improved benefit/cost indicators, (ii) lowered production and processing losses and quantities of rejected products, (iii) improved quality of products (including recognized quality of produced commodities that has been ignored due to the absence of laboratory test confirmations), that fetches higher prices on internal and external markets, (iv) improved access to market (infrastructure and information) and related up- and down-stream linkages, that reduces transaction costs and sales and marketing margins, and (v) employment generation, either as hired labor or as increased household labor requirements for both on-farm and off-farm activities.

At the national level, the improved competitiveness of agricultural and food production would increase the value and volume of rural domestic and export trade and it would contribute to an improved trade balance.

Other potential benefits include: (i) gradual increase of marketable products and export opportunities and linkages; (ii) medium- and long-term effects of sub-projects’ positive experience leading to innovations that are beyond the scope and implementation period of the project; (iii) improved food safety; and (iv) improved consumers’ confidence in the food system.

The key social development outcome expected from the project is improved access to markets and knowledge for farmers and rural entrepreneurs. The main stakeholders which will benefit from positive social impacts of the project are: (i) owners of small private farms as well as managers/owners of large farms and agricultural enterprises, (ii) farm workers; (iii) managers/owners of small and medium rural non-farm enterprises, (iv) managers of agricultural processing companies; and (v) key village informants.

Table 3.2: Project Benefits

Broad Category BenefitsLaboratory/Testing stations

Improved food safety; Improved enforcement of environmental legislation Improved consumers’ confidence in the food system; Strengthened control over plant and animal health; Improved access of Azerbaijan agricultural products to external

marketMarketing infrastructure

New jobs and potentially improved incomes; Improved rural economy. May result in an export market; Provision of arrangements for large and small farmers to market

goods as well as the marketing of manufacturing goods; Production quality improvement

Agriculture production and processing technologies

Provision of jobs, incomes, and meeting demand for agricultural related products;

Improved rural socioeconomic conditions;

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Development of sustainable agricultural practices; Creates potential export products resulting in improved balance

of payments and increased foreign exchange reserves; Provides value added to agricultural production.

Table 3.3 Socioeconomic Benefits

Input BenefitsLaboratory Testing Contribution towards national security; Azerbaijan agricultural

competitiveness on both internal and external marketsVeterinary services Healthy livestock, improved production and farm incomesSeed testing Increased production; increased farm income; contribution towards

national food securityFertilizer Increased production; increased farm income; rural economy

improved; contribution towards national food securityPest management/ Pesticides

Increased production; increased farm income; rural economy improved; contribution towards national food security

Plant production technologies

Increased production; improved farm income; rural economy improved; contribution towards national food

Livestock production technologies

Improved farm income; rural economy improved; contribution towards national food

Slaughter houses Improved quality of meat product for marketplace; improved farm income

Primary Processing Value added stays in rural areas leading to improved local economy through provision of jobs; improved farm income; reduction in transportation costs and fossil fuel consumption

Storage facilities Reduce wastage and spoilage of crops and grains leading to improved economic efficiency and higher farm incomes

3.4. Potential Impacts

Project’s potential impacts and/or risks are as well as proposed mitigation measures are summarized in Tables A7-1 to A7-10 of Annex 7. The level of significance of those impacts is presented in Table 3.4.

The major potential impacts are associated with the implementation of sub-projects under Components B and C and may include water and soil contamination, air quality deterioration, loss of biodiversity and impacts on biophysical resources, including soil erosion. Agriculture production and processing technologies present most of the concern and should be carefully mitigated. The production and processing sectors generally produce a wide range of wastes that

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are disposed of in the form of effluents that flow into surface watercourses, seepage into groundwater, emission gases that are released into the atmosphere and solid wastes that are disposed of in municipal and unorganized dumps. Such wastes pose a threat to groundwater supplies, air quality, aquatic ecosystems, and ultimately to human health.

Livestock rearing in large numbers and in closed conditions, results in a concentration of animal waste that can contaminate both groundwater and surface waters. In the case of the former, public health is at risk, in the case of the latter, aquatic ecosystems and, possibly public health, are both at risk. Livestock expansion, particular for farms in the hills and near the mountains, can lead to pressure on common public lands including forests. Loss of biodiversity and soil erosion can occur if livestock and pastureland is not managed effectively and if livestock numbers are not controlled.

Another set of environmental issues might be related to the improper environmental practices in the laboratories which are to be upgraded under Components A and B, as well as to the implementation of minor civil works. A special attention will be required on the issues of toxic substances application for veterinary and quarantine laboratories activities as well as when implementing the subprojects where pesticides and fertilizers use is necessary. Insufficient infrastructure for storage and disposal of the toxic wastes represents a high risk for the environment.

Although pesticides will not be purchased under the project, the increased use of pesticides can be triggered by the TA to be provided under Components A and B, and due to the implementation of some sub-projects under Components B and C. This can lead to pesticide residue built up in the soil. Pesticides and fertilizers can migrate to both surface waters and groundwater resulting in contamination of these two sources and leading to damaged aquatic ecosystems and threatened health to downstream users.

In assisting borrowers to manage pests that affect agriculture, the Bank supports a strategy that promotes the use of biological or environmental control methods and reduces reliance on synthetic chemical pesticides.

As mentioned above, the use of pesticides may be triggered by Components B and C of the project that will provide grants and credits to small and medium size agribusinesses. The use of pesticides in Azerbaijan is regulated by the list of pesticides of Class I a and I b of the World Health Organization (WHO) Classification of Pesticides by Hazard and Guidelines to Classification (Geneva: WHO, 2009); materials listed in the UN Consolidated List of Products Whose Consumption and/or Sale have been Banned, Withdrawn, Severely Restricted, or not Approved by Governments (New York: UN, 1994); and pesticides included into the pesticide registration list is appended below at Annex 8.

Table 3.4: Summary of Potential Major Environmental Impacts – broad project categories

Broad category Potential negative Impacts Level of Significance

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Laboratory/Testing stations Air pollution Water pollution Land pollution

LowModerateModerate-High

Seed Water and soil contamination through chemical inputs

Low-moderate

Marketing infrastructure Water pollution Land pollution

ModerateLow

Agriculture production and processing technologies

Water pollution Land degradation Air pollution Biodiversity loss Aquatic ecology altered GHG emission

Moderate-HighLow-ModerateLow-Moderate Low-ModerateModerateLow-Moderate

Although Table 3.5 indicates a large number of Low-Moderate potential impacts, through mitigation and adoption of best practices most of these can be reduced to low, as indicated in the tables in Annex 7.

Typical impacts for those potential subprojects which have high likelihood to be applied for are presented in Tables 7A-1 to 7A-10 in Annex 7. The tables also consider consequences of the impacts, including residual risks, provide for impact rating and indicate relevant mitigation measures. A summary of the potential impacts and their level of significance is given in Table 3.5.

Table 3.5. Summary of Potential Major Environmental Impacts – likely subprojects

Project Input Potential Negative Impacts Level of Significance

Laboratory Testing Water pollution through chemical inputs; Air pollution. Land contamination through hazardous wastes disposal

Moderate- High

Veterinary services Chemical inputs; Hormones and chemicals in meat and animal products

Moderate

Seed testing Water pollution Low-Moderate

Fertilizer Water pollution ModeratePest management/ Pesticides Ground and surface water pollution; Soil

contaminationModerate- High

Plant production technologies Soil erosion; Water pollution and Soil contamination; Water extraction and salinisation

Moderate-High


Overgrazing; Loss of biodiversity; GHG emission

Moderate

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Slaughter houses Water and soil pollution ModeratePrimary Processing Surface water contamination ModerateStorage facilities (collection and cooling)

Reduction in productive land; high energy use

Low

The major potential negative impacts associated with likely potential sub-project types mainly relate to water and soil quality, soil erosion and contamination.

More intensive laboratory research activities to be facilitated due to the project supported laboratory upgrade may lead to increase of hazardous wastes and waste water formation. Hazardous waste disposal might lead to leakage to the ground water sources and drinking water pollution/contamination.

Increasing pesticide applications can lead to pesticide residue built up in the soil. Pesticides and fertilizers can migrate to both surface waters and groundwater resulting in contamination of these two sources and leading to damaged aquatic ecosystems and threatened health to downstream users. Land preparation can promote erosion, particularly if tractors are too heavy and cause soil compaction, and if fields are ploughed (with or without the contour) and left a longtime before the sowing period. Risks of erosion may increase, particularly on steep sites.

Livestock rearing in closed conditions, both on the small farm holding and the large commercial farm, results in a concentration of animal waste that can contaminate both groundwater and surface waters. In the case of the former, public health is at risk, in the case of the latter, aquatic ecosystems and, possibly public health, are both at risk. Livestock expansion, particular for farms in the hills and near the mountains, can lead to pressure on common public lands including forests. Loss of biodiversity and soil erosion can occur if livestock and pastureland is not managed effectively and if livestock numbers are not controlled.

A system of ex-ante environmental screening of subprojects has been developed and will be implemented to decide if and which mitigation measure is required.

3.5 Potential Cumulative Impacts

The major environmental concerns, as described in Section 3.3 are water and soil pollution, soil erosion, and the consequences and secondary effects that erosion will cause.

Considering the small size of most sub-projects, it would be easy to dismiss the negative effects that each project might have on the environment. For instance, it is anticipated that small farmers will request modest loans for the purchase of basic farm inputs of seed, fertilizers, pesticides and fuel, and for livestock. Such a loan to a single farmer would present little environmental concern and a large number of such small loans spread throughout the country would have a relatively negligible effect. However, if by chance a large number of requests for loans originated from the same area, and more importantly from the same watershed, the cumulative effect of all of the small (negligible) effects could be significant.

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Cumulative effect is important in spatial terms, as indicated above, and also over time. For instance, a loan for seed purchase in itself has no negative impact, and in fact, has much the opposite with an increased production and return to the farmer. However, the same loan provided for more than two years in a row could promote poor crop and land management and disrupt a relatively current good agricultural management system characterized by long rotations. By avoiding a crop rotation program the farmer can deplete the fertility and organic content of his soil and further promote soil erosion. Over time there would be a cumulative effect.

Farmers should not be denied grants and credits on the basis of their location, but if monitoring of patterns indicates concentrations of loans (e.g. fertilizers) in one watershed, the PMU environmental specialist should alert the PFIs and local environmental authorities and the PMU office for special monitoring of the situation. If the cumulative effects have the potential to become severe, lending for the activity should be suspended.

Another example applied to small and medium enterprises is the application of loans for rehabilitation or for the start-up of new businesses. With agro-processing and other agribusinesses, the environmental concerns usually focus on air emissions and effluent discharge. In the case of air emissions, there are usually standards in place that guide the concentration of various emissions at the stack. Although each industrial activity may have emission controls well within established national standards, cumulatively, all of the enterprises in one region (e.g. in a small closed valley with poor air circulation) could significantly contribute to the deterioration of overall air quality, resulting in an impact on human health. Similarly for water quality, a number of enterprises releasing effluents into a water body could cumulatively affect the quality of the water in a significant manner even though each enterprise may be releasing very small amounts of effluent that meet set standards.

The other aspect of cumulative effects of the overall project is the accumulation of a large number of very small impacts over the full range of grant and credit-funded activities. That is, the cumulative impact of all of the small impacts as a result of a number of loans for fertilizer purchase, added to the cumulative impact of all of the small impacts from the livestock purchase sub-project, added to the cumulative impact of all of the small impacts from the non-farm enterprises. The overall cumulative impact could be significant. Since many of these activities can have an effect on water quality, the overall effect on water quality could be significant.

In a comprehensive examination of cumulative effects, analysis would be made of all of the other activities taking place that have impacts. For instance, other programs that could be providing agricultural lines of credit or agricultural grants, forestry programs that could be contributing to soil erosion, and in the same vein, road construction activities and other general construction that could add to the soil erosion problem. Although the ADCP-2I cannot be concerned about the impacts of other projects, it is important to place the Project and the effects that it does have on the environment within the context of the overall development paradigm..

In order to prevent the risk of adverse cumulative environmental effects, a brief environmental analysis will be made of the portfolio every year by the PMU environmental specialist and reported to the relevant authorities in the Ministry of Ecology and Natural Resources and the World Bank.

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3.7 Mitigation

For agricultural activities mitigation should not necessarily entail expensive inputs and much can be achieved towards the minimizing of residual impacts through applying appropriate, efficient and safe farming techniques. For instance when implementing the subprojects requiring pest management, the EMP will recommend the application of Integrated Pest Management practices. The PMP is referred for the provisions for encouraging safe pesticide handling and disposal. That would allow mitigating not only impact on the environment but significantly reduce costs for plants treatment since the major quantity of pesticides is quite often consumed with no need and does not contribute to gain the required output.

Legislative requirements fulfillment should be the obligatory provision. The Ministry of Agriculture (MoA) is in a position to advise farmers on the proper handling and application of pesticides and fertilizers, including application rates and timely application. Application of those permitted pesticides is also significant. The Government of Azerbaijan is committed to ensuring compliance with POPs Convention to eliminate the use of insecticides listed under POPs. Further, in compliance with World Bank O.P. 4.09 on Pest Management, which states “The Bank does not finance formulated products that fall in WHO classes IA and IB, or formulations of products in Class II, if (a) the country lacks restrictions on their distribution and use; or (b) they are likely to be used by, or be accessible to, lay personnel, farmers, or others without training, equipment, and facilities to handle, store, and apply these products properly.” The Project will ensure no Class 1A and 1B products are used, and wherever and whenever possible, proper trainings are conducted wherever Class II products may be used.

MoA can also advise on effective cultivation techniques (including the size of tractors and the type of equipment to be engaged) that will reduce the threat of soil erosion. The advanced agricultural practice will contribute to the additional mitigation of impact (e.g. organic farming or zero tillage) which would have not only environmental advantages but allow growing with the lowest costs and get the environmentally clean products. These methods do not cause wind erosion and on the contrary contribute to increase the natural soil fertility. The application of driven livestock methods will allow significantly reduce the impact of livestock pasturing on soil and increase the pasture productivity.

Adherence to national water and air quality standards will be monitored by local environmental agencies to ensure that these environmental components are protected. Techniques to be used in extraction and manufacturing sectors are often a matter of choice, albeit mostly economic. The environmental requirement will have to be considered when such choices are made. Such consideration will be the responsibility of the proponent and he/she will be required to absorb the economic cost of the environmental mitigation.. . Suggested mitigation for the various potential impacts is provided in Annexes 7. Guidance for preparation of mitigation plans is attached at Annexes 2 and 3 (Tables A-2.3, A-3.1, A-3.2). Measures to ensure proper environmental management in laboratories are specified in Section 4.3.1 below. Also, guidelines for laboratory waste management according to international good practice are listed in Annex 8.

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To further ensure that environmental concerns are given proper consideration, the PMU will hire an environmental expert (Environmental Specialist, TOR outline is attached in Annex 7A) who can advise on environmental aspects of grants and credit line to agribusinesses, as well as conduct overall project environmental monitoring. Similarly the PMU Environmental Specialist will provide advice and monitoring to PFIs regarding environmental screening of grant and small credit applications.

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4. ENVIRONMENTAL MANAGEMENT GUIDELINES

4.1 General

This EMP includes specific management activities that will be followed for ensuring that any Category B type project (e.g. an agro-processing enterprise) that results from on-lending by a PFI receives an appropriate environmental assessment. The responsibility for recognizing the environmental category of loan applications rests with the loan officers of the various lending institutions.

4.2 Management

The PMU within the SAAC of the Ministry of Agriculture will be responsible for overall Project implementation. The Project in general will be regularly supervised by the World Bank task team. At the beginning of the project the PMU will hire a full time Environmental Specialist to ensure implementation of the Project in compliance with the EMP. The individual must be able to recognize an activity for which a loan is being sought that may fall into Category A, B or C of the World Bank and ensure that the EMP guidelines are followed. The same consultant will maintain a working relationship with the relevant officers in the DoSEE of MENR and the relevant environmental inspectorates. As well, this individual will have a working relationship with the PFIs and provide assistance in cases where determining the category of a particular activity that has been proposed for financing may be in question.

4.3 Mitigation

Mitigation of any environmental effects will be the responsibility of the activity proponent. However, it will also be the responsibility of the SEE, VCDS, PFIs and the PMU to ensure that mitigation is carried out successfully for sub-projects of Category B and some sub-projects of Category C as it might be required. This responsibility will be reflected in an effectively established monitoring system. Tables A-3.1 and A-3.2 (Annex 3) provide suggestions for agricultural good practices and non-agricultural rural activity good practices which, if followed, will prevent many of the potential impacts from occurring.

Most mitigation for the various activities that have been suggested as likely candidates for financial support can be conducted through the application of best practices. Often it is a choice of how an activity is conducted – between the right way and wrong way with little, if any, additional cost to the activity’s proponent. However, often the proponent will not be aware of an approach that will minimize the environmental effects. The advisory services sub-component of the Project will have an important role to play in directing farmers and agribusinesses towards best practices in order to eliminate or reduce environmental impacts as these are related to the various farm inputs that would be sought through the grant and credit program. For example, if a borrower has purchased a tractor, cultivating with the contour as opposed to against the contour will significantly reduce erosion.

Mitigation Plans for each of the 10 potential subprojects are presented in Tables 7A-1 to 7A-10 in Annex 7. A format for a mitigation plan is attached at Annex 2 (Table A-2.3)

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4.3.1. Recommended Preventive Actions or Mitigation Measures for Laboratory

Good international practice emphasizes preventive actions in order to avoid these potential risks by employing good housekeeping, general cleanliness and diligent laboratory and medical waste handling and disposal procedures based on international best practice guidelines (see Annex 8). Currently the laboratory is not in full compliance with good practice. The revised procedures, once they are put in place and implemented, should help ensure (i) the health and safety of laboratory personnel and (ii) the protection of the general public.

A training program will be designed with the help of experienced local and/or international Consultants to demonstrate how in employing these procedures the proper handling of potentially hazardous, noxious or toxic materials and waste will be ensured. To the extent feasible, laboratory staff at the appropriate level should also be included in this training program, so that they understand the human health and environmental implications of laboratory waste management.

Chemicals and laboratory equipment which are disbanded, dismantled or disposed off during rehabilitation works will be strictly separated and disposed appropriately in coordination with the MoA.. Directions for laboratory waste management according to international good practice are listed in Annex 8.

Environmental management during laboratory operation: For the operational of laboratories a number of international best practice guidelines exist, such as

The environmental management guidelines for small laboratories (US-EPA, May 2000); http://www.epa.gov/sbo/pdfs/smalllabguide_500.pdf, or

Safety and Environmental Management Requirements for Operating Laboratory Facilities at the University of Maryland; http://www.des.umd.edu/ls/pi_requirements.html

These guidelines cover air emissions, aqueous discharges, hazardous and non-hazardous wastes, biologically active substances and wastes (which may contain pathogenic organisms), emergency planning and community information, toxic and hazardous materials storage, handling and management, drinking water management and sustainable practices in some detail.

4.4 Monitoring

Monitoring of all activities within the Project will be the responsibility of the PMU. The PMU Environmental Specialist will be undertaking regular monitoring of the project activities, identify any environmental issues, suggest solutions and timing and ensure follow up. As to the sub-projects, with the potential of hundreds of small farm loans it will not be feasible to monitor all of them on regular basis. The Environmental Specialist will need to select sampling individual activities within categories of activities for regular monitoring purposes. A number of activities will be environmentally benign and as such will not require monitoring on a regular basis.

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http://www.des.umd.edu/ls/pi_requirements.html

http://www.epa.gov/sbo/pdfs/smalllabguide_500.pdf


Nevertheless, they should be examined on occasion to ensure that this EA did not overlook any potential impacts. Rural enterprise activities should be monitored regularly on a random sample basis. A checklist for random sampling monitoring is attached in Annex 5. Preliminary Selection of Monitoring Indicators for each of the 10 potential subprojects are presented in Table 4.1

The PMU Environmental Specialist will develop a monitoring procedure and schedule. It will be important that for each category of activity that indicators upon which to base monitoring are identified. However, in reality it will be impossible to collect base line information, particularly since the Project is not site specific and investment applications can come from anywhere in the country. Indicators may be quantifiably measurable or they may be measured subjectively. Some indicators will require precise measurement, for instance in the case of the water quality indicator to measure the effects of effluent discharge from an agro-processing facility. In the case of fertilizer application on individual small holdings, and the effects on downstream aquatic systems, monitoring will be extremely difficult if not impossible. The real concern might be the cumulative effect on important downstream systems and in catchments where a significant number of loans have been made for fertilizer purchase, monitoring of system health may have to be done on a qualitative basis. For this case, observation of the presence of superfluous downstream aquatic plant growth may be the only indicator available, otherwise monitoring will be almost impossible and certainly determining the extent of impact attributed to farmers receiving loans vs. other external causes of the impact will be impossible.

Overuse of fertilizers may lead to accumulation of some nutrients downstream in rivers. Fertilizer use can be monitored, and to mitigate this, based on soil type, fertilizer is applied on the basis of soil fertility coupled with crop requirement. This kind of nutrient leakage is the “Non-Point” sources of pollution.

From an environmental viewpoint, those groups of projects which have the potential for creating the most serious environmental problems should be given highest priority for sampling The findings of the monitoring visits should be summarized in monitoring reports which will also provide for specific recommendations on the actions to be taken, if necessary, to address environmental concerns identified by the monitoring.

Table 4.1: Preliminary Selection of Monitoring Indicators

Sub- project Indicator BaselineLaboratory Testing Quality of waste water

Amounts of disposed wastesSafety and health of record of employees

Current level of chemical inputsCurrent waste generation data

Veterinary services Amounts of chemical inputs Current level of chemical inputs

Seed testing Water consumption per production unit

Current level of water consumption per unit

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Sub- project Indicator BaselineFertilizer Water quality

Soil qualityCurrent surface water qualityCurrent soil quality

Pest management/ Pesticides Water quality Current surface water qualityCurrent level of pesticides application

Plant production technologies Soil productivityWater quality

Current soil productivityCurrent surface and groundwater quality


Water qualityPasture productivity

Current surface water qualityCurrent pasture productivity

Slaughter houses Quality of waste water Existing standardsPrimary Processing Energy rate Current energy rateStorage facilities Use of fumigants Current level of chemical

inputs

4.4.1 Monitoring plan

The PMU Environmental Specialist will review the quarterly activity reports submitted by the VCDS and PFIs, and will conduct random sampling review of 10% of grants and small and medium credit applications every 6 months to verify compliance with the EMP, including pesticide use. Review of the sub-projects selected for the random sampling will be based on (i) in the case of the credit line on the environmental screening sheet provided by the PFIs on each loan; and (ii) in the case of grants on the environmental screening sheet provided by the VCDS on each grant. The review should include a visit to the activity site, an interview with the applicant, and a consultation with the regional environmental authorities. In sub-projects selected for environmental monitoring, a typical environmental monitoring plan would be prepared as shown in Annex 5.

The PMU Environmental Specialist will be responsible for monitoring of the use of authorized pesticides by borrowers and grant beneficiaries as part of the regular monitoring for compliance with the EMP.

Based on the sub-project activity reports, site visits, data on pesticide sales, and information from local environmental authorities, the PMU environmental specialist will analyze pesticide use by rayon to determine whether purchases under ADCP-3 investments has increased, potentially creating cumulative impact. If this occurs, ADCP-3 may suspend lending that include pesticide purchases of products falling in Class Ia, Class Ib, and in some cases, even WHO Class II.

The PMU Environmental Specialist will review plans for training and advisory services to ensure that IPM, pesticide safety, storage and handling and other sustainable agricultural practices for farmers and agro-business personnel are included, and that environmental due diligence for VCDS and PFI staff is addressed.

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The PMU Environmental Specialist will work in cooperation with the project M&E specialist to integrate monitoring of EMP implementation into the overall project M&E design.

4.4.2 Environmental monitoring of long term issues

The Ministry of Environment and Natural Resources and its local agents will decide on measures to monitor the long-term effects of activities that could have negative environmental impacts. This may include monitoring by its staff, or by specialists contracted to undertake specific monitoring duties. Typically this may include:

- Monitoring effluents from production units and factories, and monitoring the water body into which effluents discharge, to ensure no negative impacts

- Monitoring air quality in and around mills to ensure compliance with air quality standards- Monitoring soil/water conditions in and around chemical and fuel storage depots and chemical

mixing plants to ensure no negative impacts- Monitoring forestry and large scale farming operations to ensure the ecology is being maintained

(run-off and erosion) - Monitoring wet-lands or areas of scientific, natural or historic interest where they may be

affected by the project

Special environmental studies may also be called for in the event of sudden environmental change near to a sub-project activity. The frequency of monitoring and type of samples analyzed would be dependent on the nature of the pollutant.

Bank supervision missions will include an environmental specialist to audit monitoring procedures and results. The specialist should assess one or two loan activities where impacts are likely to occur in order to ensure compliance.

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5. ENVIRONMENTAL REVIEW PROCEDURE GUIDELINES

5.1 Overview

Each sub-loan/ grant proposal will undergo an environmental review procedure, as follows:

- Credit/grant applicants: identify possible environmental impacts of proposed activities, identify and undertake mitigation measures if appropriate. The credit/grant application form will include a checklist to identify environmental risks. The credit/grant applicants are also responsible for obtaining appropriate permits and approvals that may be required for the particular type of activity to be financed, and are issued by the local authorities responsible for environmental issues. In all cases where an environmental assessment report or environmental monitoring plan are required, these are to be prepared by the credit/grant applicants and, where relevant, submitted to the Ministry of Ecology and Natural Resources (or its Agents), and the EIA report and monitoring plans are to be provided with the credit/grant application. The PMU Environmental Specialist will provide assistance and guidance as necessary.

- VCDS and PFIs: screening of applications including for environmental impacts, ensuring required permits have been obtained. Carry out field site visits for secondary environmental screening at site (specifically, for sub-projects classified as category B) to physically establish the veracity of the environmental data provided by applicants, and to confirm that the environmental category is appropriate and EMP is adequate;

- PMU: monitor compliance with EMP, provide advice on specific issues that may arise; monitor for cumulative impacts; provide training on environmental due diligence to PFIs; through the IAC and RACs, provide training and information on IPM and sustainable agricultural practices via advisory services component

5.2. Environmental screening for credit applications

The potential sub-borrower shall complete Environmental Screening Checklist (Form 1, Annex 2). It is expected that the majority of mid-size credit sub-projects will fall into category B and therefore the proponent may need permits from the DoSEE and these are to be obtained by the borrower and submitted to the PFI with the sub-project proposal. Credit application package must include guidelines and instructions to the borrower with information to be provided. The Ministry of Environment of Azerbaijan shall issue environmental permits, if required. The procedure for issuing permits includes: (i) state ecological expertise, and (ii) public participation in the decision-making process.

The PFI will screen each sub-project against the environmental checklist (Form 2, Annex 2) to define the environmental category of the sub-project, review the proposed mitigation measures, and ascertain that all required permits have been obtained and are valid. In addition, for sub-projects classified as Environmental Category B or when the initial screening reveals high or significant risks, a secondary screening is made through a visit to proposed site to physically

35


ascertain the veracity of the data. The PFI shall complete Field Site Visit Checklist (Form 3, Annex 2).

In cases when possible adverse impacts are discovered during the Field Site Visit, the Environmental Screening and Field Site Visit Checklists are submitted to the Ministry of Environment, which issues a preliminary environmental statement listing potential environmental concerns and mitigation measures and whether an environmental assessment (EA) is required.

During the project implementation, the PFI should ensure that the environmental mitigation measures are implemented. In the case of non-compliance, the PFI (with assistance of PMU Environmental Specialist as needed) will investigate the nature and reason(s) for noncompliance, and a decision is taken about what is needed to bring a sub-project into compliance or whether financing should be suspended.

5.3 Environmental screening for grant proposals

The grant proposal process is managed by the VCDS. The selection process will include environmental screening by the Secretariat to ensure compliance with the criteria, followed by a technical review by independent contracted specialists based on specified scoring procedures. The PMU Environmental Specialist will assist the Secretariat to conduct the environmental screening of proposals to determine the environmental category and evaluate the proposed mitigation measures. Environmental Screening Checklist to be completed by the Secretariat is given in Annex 2 (Form 2). Specialist consultants will be contracted as needed to assess environmental impacts that may be high risk, or involve a subject outside the expertise of the PMU Environmental Specialist. The same environmental screening and categories are used as for the credit components. Secondary screening to the proposed sub-project may be conducted for potentially high risk projects, and on a random basis to cover 10% of the proposals per year.

5.4 Sub-project Categories

Sub-projects assessed as Category A, (high environmental risks). No Category-A sub-projects will be financed by the project.

Sub-projects assessed as Category B, (moderate environmental risks) may require Secondary Screening during appraisal. An EIA may be required for some Category B sub-projects . For expansion of existing facilities or where change of technology is proposed, an environmental audit may be required, depending on the nature of the sub-project.

Sub-projects assessed as Category C, (sub-projects having no significant environmental issues) require no Secondary Screening.

5.5 Secondary Screening

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Secondary Screening may be conducted to establish the veracity of the environmental data provided by the sub-project proponent. This is a physical check executed by the PFI loan officer and VCDS as part of sub-project appraisal. The completed Secondary Screening form (Form 3, Annex 2 – Field Site Visit Checklist) will be entered in the project files.

Secondary Screening during site inspection includes updating and physical verification of all data provided in the credit/grant application:

- Confirm actions taken since submittal of the credit/grant application- Environmental data provided by the applicant is correct - No potential environmental issues have been ignored - The environmental category classification is appropriate - Environmental management and monitoring plan is adequate- EIA report has been completed (where required)- Statutory environmental permits have been received and are adequate - Public Participation/Information consultations are complete (Annex 6)- Land and resettlement (where relevant) has been identified and compensation arrangements

agreed.

In cases where Secondary Screening substantially modifies any of the above, the Environmental Screening Category and the Environmental Management Plan may need to be revised. The sub-project must not be financed by the PFI until the revisions have been accepted and checked by the PFI.

5.5. Rejection of sub-project

If the sub-project is rejected on environmental grounds after an unsatisfactory site visit, an improved environmental proposal may be submitted by the proponent, and re-appraised as above. Re-appraisal should be restricted to one improved proposal, and the proponent should not expect to make multiple applications on the basis of continuous marginal improvements to the scheme. Re-appraisal should be at the discretion of the PFI. More detailed information is given in Annex 4.

5.6. Environmental Monitoring

If the credit/grant application is accepted for funding, environmental monitoring will be required for Category B projects in compliance with the environmental management plan (EMP) agreed in the screening procedure. The extent of project monitoring will be dependent on the nature, scale and potential impact of the sub-project. Monitoring may require the services of environmental specialists or a company with laboratory and analytical facilities (for complex environmental problems) or inspection by the local government environmental officer. Environmental monitoring is the responsibility of the PMU.

5.7. Reporting by the VCDS, PFIs and the PMU

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Credit line PFI’s and VCDS are required to submit quarterly reports to the PMU on the sub-projects financed using WB funds in accordance with uniform reporting formats as prescribed by the Project and agreed by the World Bank. That reports would have a section on environment.

The PMU will address in physical progress report section of the regular quarterly Financial Management Reports (FMRs) that are to be provided to the Bank.

The PMU will address environmental aspects of the financed sub-projects and the related documents (i.e., environmental management plans and mitigation measures) in its routine reporting to the World Bank and during the periodic supervision missions. In addition, there will be annual reporting of the PMU to the World Bank and the Government, specifically focusing on the safeguards issues and reviewing and assessing cumulative impacts occurred during the year.

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ADCP-3 EMP and Environmental Guidelines for Project Activities , ANNEX 1. ENVİRONMENTAL CATEGORİES ACCORDING TO WORLD BANK OP

4.01

Category A: A Category A project is likely to have significant adverse environmental impacts that are sensitive, diverse, or unprecedented. These impacts may affect an area broader than the sites or facilities subject to physical works, can cause serious and irrevocable impact upon the environment or human health. The EIA for a Category A project examines the project's potential negative and positive environmental impacts, compares them with those of feasible alternatives (including the "without project" scenario), and recommends any measures needed to prevent, minimize, mitigate, or compensate for adverse impacts and improve environmental performance for a Category A project, the borrower is responsible for preparing a report, normally an Environmental Impact Assessment. Category B: A Category B project has potential adverse environmental impacts on human populations or environmentally important areas - including wetlands, forests, grasslands, and other natural habitats - which are less adverse than that of Category A projects. These impacts are site-specific; few if any of them are irreversible; and in most cases mitigatory measures can be designed more readily than for Category A projects. The scope of EIA for a Category B project may vary from project to project, but it is narrower than that of Category A assessment. Like Category A, a Category B environmental assessment examines the projects potential negative and positive environmental impacts and recommends any measures needed to prevent, minimize, mitigate, or compensate for adverse impacts and improve environmental performance. Category C: A Category C project is likely to have minimal or no adverse environmental impacts. Beyond screening, no further EIA action is required. Category-C includes activities, the scope, location and content of which will not bring about serious impact on the environment.

It is important that the project management unit and the lending institution be able to identify activities for which funding is being requested and which may fall into either of the World Bank’s Category A or Category B. For the most recent information on environmental categories see Website www.worldbank.org/environment and http://web.worldbank.org/WBSITE/EXTERNAL/PROJECTS/EXTPOLICIES/EXTOPMANUAL/0,,contentMDK:20064724~menuPK:64701637~pagePK:64709096~piPK:64709108~theSitePK:502184~isCURL:Y,00.html

Sub-projects classified as Category A, B or C may include1:Category A Projects (projects/components which may have diverse and significant impacts – normally require EA)

Category B Projects (projects/components which may have diverse and significant impacts – more limited environmental analysis appropriate)

Category C Projects (projects/components which may have likely to have minimal or no adverse environmental impacts beyond screening, no further EIA action is required

- dams and reservoirs- forestry depletion projects- industrial plants (large

scale)* and industrial estates, including major expansion, rehabilitation, or modification

- irrigation, drainage and flood control (large scale)**

Agriculture (medium scale)- Agriculture, horticulture, vineyards and orchards

(medium scale intensive operations >50 ha)***- Animal husbandry (medium scale) (100-500

heads of cattle (cows) or 5 small farm cattle (sheep) per head of cattle(cow))

- Construction and operation of potable and irrigation water supply

- Re-cultivation of land (greater than 100 hectares);

Agriculture (small scale)- Agriculture,

horticulture, vineyards and orchards (small scale <50 ha)

- Animal husbandry (small scale – less than 100 head )

- Construction of a grain drying, cleaning,

1 These are illustrative examples intended to assist the VCDS, PFIs and credit/grant applicants throughout the screening process, and should not be considered as a definitive list of activities

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http://www.worldbank.org/environment

ADCP-3 EMP and Environmental Guidelines for Project Activities , Category A Projects (projects/components which may have diverse and significant impacts – normally require EA)



- aquaculture- land clearance and leveling- reclamation and new land

development- resettlement- river basin development- manufacture, transportation

and use of pesticides or other hazardous and/or toxic materials

- production, transportation and sale of fuel

- new construction or major upgrades of highways or rural roads

- Setting up of mariculture and aquaculture farms on rivers or lakes larger than 0.5 ha (no exotic species)

- Utilization of agricultural land (30 to 50 hectares) for non-agricultural purposes

- Utilization of agricultural land (30 to 50 hectares) for non-agricultural and commercial purposes (Farm buildings for stock and machinery, Storage facilities (fuel, chemicals, grain and other produce), markets and etc.)

- Utilization of virgin soils and unbroken expanses for intensive agriculture

Food processing industries (medium scale)- Canning industry (annually processing 3000 to

5000 tons of raw materials).- Complex poultry and cattle breeding farms (100-

500 head) Dairy goods, milk and milk products factories

- Fiber industry- Fruit and pickle processing, jams, syrups. Juices

and beverages (medium scale > 3000 tons/year of raw materials)

- Grain products factory- Non-alcoholic wine and spirit bottling enterprise.- Hide processing- Slaughter-houses, meat packing and animal

remains processing plants (medium scale – 5000 -10000 tons/year)

- Sugar production- Yeast production- Establishment of semi-finished food factories

( 1000-5000 tons/year)

storage and silo towers

- Construction of buildings to store agriculture goods and agricultural products

- Construction of glass-houses or polytunnels

- Construction of warehouses for chemical pesticides and mineral fertilizers

- Production of flax

- Utilization of agricultural land (20 to 30 hectares) for non-agricultural purposes

Food processing industries (small scale)- Canning industry (processing <3000 tons/year of raw materials).- Collection of

medicinal herbs- Construction of a

roasting enterprise (coffee beans, sunflower etc)

- Construction of agricultural products process buildings, facilities and enterprises

- Establishment of egg product enterprise (capacity exceeding 40 tons/year)

- Establishment of semi-finished food factories (200-1000 tons/year)

- Production of non-alcoholic beverages

- Setting up slaughter-houses (small scale)

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ADCP-3 EMP and Environmental Guidelines for Project Activities , Category A Projects (projects/components which may have diverse and significant impacts – normally require EA)



and butcheries

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ADCP-3 EMP and Environmental Guidelines for Project Activities , Notes:* Large-scale here is defined as enterprises with annual sales of US$ 3 million or more equivalent. ** Large-scale here means an irrigated area of 50 hectares or above.*** There is no specific requirements for EA of agricultural, horticultural or orchard and vineyard

activities under the local Law, so the ADCP-3 will specify >50ha and less than 100 ha category B and <50ha as Category C.

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ANNEX 2. ENVİRONMENTAL SCREENING CHECKLIST FORMS.

Environmental Screening Checklist forms shall be prepared by credit/grant applicants and will be included in the credit/grant application forms.

FORM 1 - ENVIRONMENTAL SCREENING CHECKLIST(To be completed by credit/grant applicant)

1. Sub-project name:_____________________________________________________________________________

2. Brief Description of Sub-project: __________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

2.1 Nature of the activity: __________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

2.2 Cost: ________________________________________________________________________

2.3 Physical characteristics (biology, soil, water resources of sub-project site): ________________________________________________________

2.4 Site area:_____________________________________________________________________

2.5 Location: _____________________________________________________________________

2.6 Property ownership:____________________________________________________________

2.7 Existence of ongoing operations?_________________________________________________

2.8 Plans for Expansion of Ongoing Opertions?___________________________________________________________

2.9 New construction with project funds?______________________________________________________________

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3. Will the Sub-project have impacts on the environment as listed below? Indicate with a check, which impacts are likely to occur and whether mitigation measures are required by completing the appropriate sections below.

Table A-2.1 Farm Inputs Screening Checklist

Input Potential Impact Mitigation Measures needed/to be identified

Yes NoSeed Water and soil contamination through chemical

inputs: Yes____ No______Pedigree seed Biodiversity loss: Yes___ _No_____

Chemical inputs: Yes___ No_____Fertilizer Water pollution: Yes__ _ No_____Pesticides Ill health: Yes_____No____

Water pollution: Yes_____No_____Soil contamination: Yes____No_____

Pedigree animals Water and soilpollution by animalwastes: Yes____No_____

Animals for finish-ing

Overgrazing: Yes_____No___Forest degradation: Yes____ No___

Land preparation (tractor and ma-chinery hire)

Soil erosion: Yes_____No_____

Tractors Soil compaction and erosion: Yes_____No____Other farm imple-ments None

Small equipment NoneIrrigation equip-ment and irrigation maintenance

Water extraction and salinization

Yes_____No_____Primary processing equipment

Water pollution: Yes_____No_____

Veterinary Services Hormones and chemicals in meat: Yes____No___Laboratory testing Water and soil contamination through chemical

and biological inputs: Yes____ No______

Table A -2.2: Agricultural Enterprise Screening Checklist

Broad Category Potential Impact Mitigation measuresYes No Yes No

Agro-processing water pollutionsafety and healthbiophysical and cultural losses through location

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Market refurbishment of new market struc-ture

Poor location disrupting people and perhaps important biophysi-cal and cultural resources

Agriculture equip-ment hire

Soil erosion and soil compaction as result of farm mechanization

Irrigation systems Desertification and depletion of water resources

Other agribusiness Variety of minor impacts al-though aquaculture could result in damage to aquatic ecosystems, particularly the loss of endemic fish species

Agrotourizm, eco-tourism

Location: biophysical losses aestheticsconstruction impactswater pollution

4. For the environmental components that were indicated above with a check, describe the mitigation measures that will be included during the construction (C) or operational (O) phase of sub-project or both (B)

Table A- 2.3: Environmental Mitigation Plan

Environmental compo-nent (What is to be mit-

igated)

Sub-project Phase(C, O or B)

How and where will it be mitigated

Responsibility and cost

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FORM 2 – ENVIRONMENTAL SCREENING CHECKLIST(To be completed by VCDS/PFI)

1. Sub-project name: _____________________________________________________________

2. Environmental Category (A, B or C): _____________________________________________

3. Environmental assessment required: _____________________________________________

4. What environmental issues raised by the sub-project: _________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

5. If an environmental assessment is required, what are the specific issues to be addressed: _______________________________________________________________________________________________________________________________________________________________________________________________________________________________________

6. What is the time frame and estimated cost of conducting the environmental assessment? ________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

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FORM 3 – FIELD VISIT CHECKLIST(To be completed by VCDS/PFIs)

Project Name: Date/time of Visit:Raion: Visitors:

Location Obtain a site map or make a sketch Locate site on local map or indicate area (e.g. for grazing)

Current activity and site history Who is the site contact (name, position, contact information)? What is the area of the site to be used for project activities? What are current uses of the site? What were previous uses of the site (give dates if possible)?

Environmental Situation Are there sensitive sites nearby (nature reserves, cultural sites, historical landmarks)? Is anything known about the geology/hydrology of the site? Are there water courses on the site? What is the terrain or slope? Does the site experience flooding, waterlogging or landslides? Are there signs of erosion? What are the neighboring buildings ( e.g. schools, dwellings, industries) and land uses? Estimate distances. Will the proposed site affect transportation or public utilities?

Licenses, Permits and Clearances Does the site require licenses or permits to operate the type of activity proposed? Are these available for

inspection? What environmental or other (e.g., health, forestry) authorities have jurisdiction over the site?

Water Quality Issues Does the proposed activity use water for any purposes (give details and estimate quantity). What is the source? Will the proposed activity produce any effluent? (estimate quantity and identify discharge point) Is there a drainage system on site for surface waters or sewage? Is there a plan available of existing drainage or

septic systems? How waste water is managed (surface water courses, dry wells, septic tanks)?Soils What is the ground surface (agricultural land, pasture, etc.)? Will the project damage soils during construction or operations? Will the project affect the landscape significantly (draining wetlands, changing stream courses)

Biological environment Describe vegetation cover on the site. Is there information about rare or threatened flora and fauna at or near the site? If yes, would the project have an

impact or increase risk to the species? Obtain a list of vertebrate fauna and common plants of the site (if available). Note potential negative impacts on biota if project proceeds.

Visual Inspection Procedures Try to obtain a site map or make a sketch to mark details. Take photos, if permitted. Walk over as much of the site as possible, including boundaries, to note adjacent activities. Note any odors, smoke or dust emissions, standing water, etc.

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ANNEX 3. ENVİRONMENTAL MİTİGATİON

Likely Impacts, mitigation, and permissible limits of pollutants

Mitigation measures will be needed for category B sub-projects. Most farming, orchards, horticulture and forestry operations have the potential to harm the environment through the use of chemicals, and due to inappropriate land and water management. Credits and grants for medium-scale agriculture activities (>50 ha) that use fertilizers, pesticides and other farm chemicals would be Environmental Category-B, and would require mitigation and monitoring plans..

Most processing facilities produce some form of pollution and need to treat their effluent, control dust and smoke, dispose of solid wastes, and limit noise pollution from the plant. They are also subject to health and safety laws, and require permits to operate. Most medium scale processing plants that are potential applicants for project funding would be Category-B.

In sub-projects where environmental mitigation is required, a typical environmental mitigation plan would be as shown in Table A- 2.3 in Annex 2.

The following headings cover the likely environmental impacts of different activities, possible mitigation of environmental issues, and guidelines on the permissible limits of various pollutants:

- Airborne pollution - Waste water treatment- Solid wastes- Noise pollution- Use of chemicals- Irrigation and drainage- Use of water for agriculture and industry- Health and safety in the workplace

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Table A-3.1: Some Agricultural and Laboratory Good Practices – Towards a Protected Environment and Sustainable Agriculture

ActivityGood Practices

Laboratory testing . safe handling, sampling, and storage of chemicals. proper conditions for the storage, housing, handling and care of biological test systems. appropriate labeling of chemicals. neutralization of acids. recycling and/or re-use of solvents. selection of energy efficient equipment. selection of equipment that uses less toxic reagents. safe work environment

Seed - Selection of seed with lowest agro-chemical input requirements to achieve high yields- Selection of seed with minimal level of pest and disease vulnerability. rigorous sanitation facilities and procedures for imported seed- Seed selection to be subject to seeds adaptation capacity- Consultations with MoA and MENR on minimization of potential impacts on biodiversity- rigorous sanitation facilities and procedures for exported seed- Extension services provide advice on appropriate fertilizer and pesticide applications. Wherever possible, extension service to promote sustainable agricultural practices including IPM, minimum tillage, contour ploughing, crop rotations, and green manure.

Fertilizers - selection of best fertilizers for crop and prevailing soil conditions; - introduction of the methods of integrated crop management for building or maintaining soil fertility- application levels as per recommended by manufacturer and extension service ;- testing of soil to determine actual requirements for fertilizers, before applying fertilizers

Pest management/Pesticides. IPM is a priority and pesticides to be applied sparingly and only where absolutely necessary. careful handling of pesticides;. protective clothing and equipment to be used. safe storage of chemicals. safe disposal of pesticide containers. applying of alternative and natural methods for pests management, e.g. setting up the insects catcher and insectivorous birds population support.-use of only registered pesticides for registered uses and according to the specified directions dosage, waiting periods etc.)

Plant production technologies . implements suitable for minimal tillage. organic farming methods. selective planting to avoid sensitive areas, adverse aesthetics. zero-tillage. contour ploughing. grassed waterways. crop rotation


. manure containment facilities-avoiding excess application of manure to fields especially during non-

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growing seasons. application of biogas digesters. pasture management

Slaughter houses . wastes handling facilities designed to ensure zero runoff. blood recovery. incineration of wastes, with capturing and reusing methane gas-where appropriate, application of other renewable energy technologies

Tractors

- purchase of engine efficient tractors that provide highestratio of power and work to fuel input- adequate maintenance to ensure emission minimization- tractors with high efficiency emissions control- tractors no larger than necessary for the most extensivework anticipated

Farm implements - implements suitable for minimal tillageLand preparation - contour ploughing, minimum tillage, grassed waterways, etc.

Small equipment - energy efficient equipment

Irrigation equipment- highest efficiency equipment- application of advanced irrigation solutions, such as drip irrigation, rainwater capture, etc.)

Farm buildings for stock, machinery, and chemicals

- Location of buildings where least disturbance of resources required.- energy efficient building design including heating, ventilation- building design to minimize materials and use of environmentally friendly materials

Fencing materials N/APrimary processing equipment - high efficiency equipment including low emission fuels (e.g. gas, solar)

Fuel, lubricants, spare parts and other operating requirements

- safe storage of fuels, lubricants and chemicals

Veterinary services - minimal use of drugs, especially antibiotics- safe and secure storage of drugs

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Table A-3.2: Some Good Practices for Rural Enterprises – Towards a Protected Environment and Sustainable Rural DevelopmentEnterprise Category Good PracticesAgro-processing - not to be located in environmentally sensitive areas

- effective effluent management system in place- effective disposal of solid wastes- labor safety in place- control of noise- control of odors

Other agribusiness - aquaculture: .use of non-exotic species- effective disposal of animal wastes- use of local feed stocks- avoid use of sensitive water courses- avoid location on sensitive sites- effective waste disposal- safety precautions and systems during construction- control of effluents and emissions

Extractive industries – forestryand fisheries

- not be located in environmentally sensitive areas- extraction not to directly or indirectly harm other aspects of theecosystem- forest and fishery harvesting to be conducted on a sustainable basis

Trade (wholesale and retail) – rural markets

- location of markets to take into account micro- environmental effects such as erosion and potential water contaminationmarket operations to be guided by a printed and displayed list of good practices including waste disposal and sanitary procedures

Ecotourism, agrotourism - environmentally sensitive areas not disturbed- hygiene standards to meet national requirements- sustainable harvesting of wood fuels and any other natural resources- safe work environment . proper disposal of wastes preventing water contamination, disease and vermin

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ANNEX 4. ACCEPT/REJECT DECİSİON MAKİNG

It is the responsibility of the VCDS and PFI to accept or reject a sub-project proposal on the grounds of environmental issues. Providing that the sub-project has been adequately screened into Bank Categories B or C and that adequate EMP is proposed to mitigate significant environmental issues and adequately monitor the results, there should be no reason to reject a sub-project on environmental grounds. The decision-making procedure for credit applications is detailed in the Agribusiness Investment Guidelines (Manual), and for grant applications in Porject Operational Manual respectively.

If the sub-project is rejected on environmental grounds after an unsatisfactory site visit the proponent, at the discretion of the PFI, may submit an improved environmental proposal. Re-appraisal should be restricted to one iteration, and the proponent should not expect to make multiple applications on the basis of continued marginal improvements to the scheme. Any further consideration of the sub-project should be at the discretion of the PFI .

In some instances, however, there may be a number of environmental issues associated with a sub-project, and cumulatively the issues could be more serious than any one individual issue would indicate. For example, a sub-project may have several issues that individual screening would put in Category B or C. Cumulatively, however, the environmental issues may be more serious, and the sub-project may need a more stringent EMP, be screened into a higher Environmental Category or be rejected out of hand.

The possibility of cumulative environmental impacts of projects will be given special consideration:

(i) Sub-project applications will undergo ‘cumulative impact verification’ at the stage of assigning environmental category. This will involve VCDS and PFIs comparing each application to other proposed and approved projects in the same area to determine whether they are likely to have significant negative impacts on a common ecological resource (e.g., impacts on quality or quantity of water in the same river or lake basin, impacts on air quality in the same airshed, excessive overall noise levels in a residential area, etc.). When VCDS or PFIs find that this is may be the case, they will consult with the PMU Environmental Specialist regarding the possible need to carry out a cumulative impact assessment as part of the EIA for the project; and

(ii) As part of PMU’s annual reporting to the World Bank on safeguard issues, the PMU Environmental Specialist, in collaboration with M&E Specialist, will report on the potential for cumulative environmental impacts among projects within the portfolio and on the measures being taken to address this issue.

The PFI may use a checklist to provide a score of magnitude of impacts to produce a cumulative index. The higher the index the higher the environmental risk of the sub-project. Using Table-

52


A4-1 as a guide and noting that each activity requires its own individual score – the cumulative score of impacts will provide the overall score for that sub-project.

Table A-4.1: Guideline for screening cumulative environmental impactsActivity Risk Significance of Impacts Examples Score

None There is no detectable impact of any kind as a result of the activity

A procurement project with no direct impacts

0

Low Small changes, measurable, usually confined to a small area, mitigation is simple or not necessary

Market facilities: small social disruption.

Small scale processing, small scale farming; creates minor pollution

1

Low-moderate without mitigation

Measurable losses, or ecosystem disruption; ecosystem able to cope without mitigation

Small-medium scale agro-processing, livestock production, slaughter facilities; potential to produce some minor pollution

2

Moderate with mitigation

Measurable losses, or ecosystem disruption; Proposed EMP is adequate but in the event it is not fully used, ecosystem would be disrupted

Medium scale agro-processing, livestock production, slaughter facilities, most category B sub-project activities with potential for pollution or disruption

3

High Substantial losses or ecosystem disruption: Ecosystem would probably still function at a lower level.

EMP inadequate or difficult/costly to operate and maintain

Livestock overgrazing or deforestation causing land erosion.

Paper mills, chemical mix plants, leather production etc

5

The sub-project may comprise many activities, and the cumulative score of the activities would indicate to the PFI the overall risk of the sub-project Determination of cumulative score is indicative and should be used for revisiting the overall sub-project category on a case-by-case basis. Overall, the cumulative score thresholds for revisiting sub-project category are as follows:

- If cumulative score is 5 or less the screened Environmental Category for individual activities is probably adequate.

- If cumulative score is >5 the appraised Environmental Category may be inadequate, and additional requirements may be placed on the sub-project.

In case, the sub-project has to be re-categorized and additional requirements are to be applied, these should be incorporated into the sub-project EMP. In order to identify these additional requirements, the applicant, PFI and PMU will need to take additional steps for the preparation of ‘extended’ EMP. Specifically:

53


(iii) The applicant may be required to:o Describe in detail the cumulative impacts likely to be experienced.o Determineand describe practical and reasonable measures and good practices to

be followed, to address impacts.o Update a monitoring schedule, if necessary

(iv)The VCDS and PFI will be required to:o Consult with PMU Environmental Specialist and Government environmental

agencyo Ensure the ‘extended’ EMP is incorporated into sub-loan agreement.

(v) The PMU will be required to:o Ensure the extended EMP implementation.o Monitor activity on a regular basis, or more frequently if required by the nature of

identified cumulative impact.

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ANNEX 5. ENVIRONMENTAL MONITORIMNG

Environmental monitoring for the overall project is addressed in the Monitoring section of the EMP above. Table below shows a sample environmental monitoring plan for selected sub-projects.

Table A-5.1: Environmental Monitoring Plan

Project phase What is to be monitored

How and where will it be monitored

Frequency of monitoring

Responsibility Cost

BaselineConstructionOperationDe-commissioning

FORM 1 – CHECKLIST FOR ENVIRONMENTAL MONITORING(For random sampling monitoring by PMU)

1. Was an Environmental Assessment needed? (Y or N)___ If yes, was it done?___Have national and World Bank requirements for public consultation been met and fully documented? (Y or N) ___

2. Was an Environmental Management Plan prepared? (Y or N) ___

3. Are the mitigation measures followed? (Y or N) ___ If No, which measures are not followed?

4.

5. Does the project comply with existing pollution control standards for emissions and wastes? (Y or N) _____ If No, which pollution standards are not followed?

6.

7. What follow-up actions are required by the beneficiary, the PFI and the PMU? ______________________________________________________________

____________________________________________________________________________________________________________________________________________

8.Dates Participants_____________________ ____________________________________________________________ ____________________________________________________________ _______________________________________

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ANNEX 6. PUBLİC CONSULTATİON FOR SUB-PROJECTS

Consultation is essential in any circumstances where the sub-project will affect local communities or individuals that are not directly part of the sub-project.

The physical and social environment must not be changed to the detriment of local residents, and any changes must be with their agreement. Consultation will involve public participation of affected community members and NGOs. The sub-borrower must:

- Provide compensation to the community (replacement of public amenities etc)- Fully consider cumulative impacts- Deal with political and social problems associated with development- Offer further consultation and participation with affected communities

In the event of public consultation, minutes are to be recorded of the discussions and records maintained of all public comments, both positive and negative, to the sub-project, together with the mitigating measures proposed by the sub-project proponent. The sub-borrower must provide the VCDS and PFI with a report (where appropriate) describing the consultation with residents and of their support or rejection of the development plans.

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ANNEX 7. IMPACTS, CONSEQUENCES AND MİTİGATİON MEASURES

Table A7-1. Laboratory Testing

Potential Direct Negative Impacts

Potential Indirect Negative Impacts Consequences Recommended Mitigation Measures /

Best Practices Remarks

Cost estimate (thous. AZN)

Pollution of surface and ground waters by waste water

. Aquatic ecosystem damaged;. Domestic water supply contamination. Human and animal diseases

Biodiversity of aquatic ecosystem decrease

. Staff training on handling with toxic materials. Spent chemicals decontamination Availability of appropriate facilities and

systems to separate and handle hazardous/toxic materails

. Application of less toxic reagents when laboratory researches are carried out. Application of analysis and equipment requiring less use of chemical reagents. Local facility for waste water treatment up to the fixed norms

20

Atmosphere and air pollution in the working area

. Respiratory and allergic diseases of staff. Plants damage

. Indisposition

. Working days loss. Social costs

. Effective ventilation system in the buildings

. Safety requirements fulfillment working with liquid and volatile substances.. Protective facilities use by staff

Covered by laboratory budget

Toxic wastes contamination of the environment as well as human health impact.

. Toxic substances impact on the human health;. soil and water sources pollution.Biodiversity decrease

. Human diseases. Social costs. Payments for wastes placement

. effective system for storing, collecting, transporting and disposal of toxic materials waste separation, e.g. separate collection of biological waste, use of containers and chemical glassware for the following utilization.. Incinerator for wastes burning (temperature at least 1000º С) equipped with the additional chamber for burning and gas control.

Covered by laboratory budget

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Table A7-2. Veterinary servicesPotential Direct Negative Impacts

Potential Indirect Negative Impacts

Potential Consequences

Recommended Mitigation Measures / Best Practices

Remarks Cost estimate (thous. AZN)

Meat and animal products containing hormones and other chemicals

Human illness . Proper awareness and training of farmers and animal health workers;. Organic methods of livestock husbandry could be used;. minimal application of only necessary drugs;. Alternative medicine

Only approved drugs and hormones should be used but even these could have some long term, and yet unknown, effects on humans

20

Soil and water contamination with insecticides used in dip tanks

. Contaminated soil and water not useable for cultivation or potable water; or water for irrigation;. Affected downstream aquatic ecosystems

Proper disposal of diptank liquids to avoid soil and water contamination, e.g.:

- Chemical disinfection of liquids with further discharge into sewerage system

Autoclave decontamination

Covered by veterinary facility budget

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Table A7-3. Seed testingPotential Direct Negative Impacts


Consequences Recommended Mitigation Measures / Best Practices


Water contamination . increased use of pesticides (e.g. Round-Up ready genetically modified crops) and chemical fertilizers

. development of pesticide resistant weeds. long term dependence on high yielding varieties (HYV) requiring continual high level inputs; could be costly to the farmer

. determination and application of optimum quantities and scheduling for fertilizers and other inputs;. use of pesticides that comply with IPM principles – namely specific in action against target pests; are readily biodegradable; and relatively safe for human, domestic animals and environmental health.. raising awareness of organic farming techniques that might be relevant to apply. introduction of an integrated pest management program (IPM). Mitigation will be moderately difficult without support of an active

. in general terms, high yielding varieties (HYV) require large inputs to achieve expected results - plant species and varieties would have to be examined on a case by case basis. organic farming techniques are currently practiced in other areas of the FSU and some of these could be adopted

Covered by the project budget

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extension service.Introduction of genetically modified plant seed

. genetic drift into other areas where GMOs are not wanted;

. policies and legislation to prevent import of GMO plant seeds

Government has to decide if the potential gains of GMOs outweigh the impacts

No additional cost

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Table A7-4. FertilizerPotential Direct Negative Impacts



Remarks

Reduction in soil organic content

. modified soil structure and reduction in soil moisture holding capacity

. in the long run, possible loss of productivity as a result of insufficient soil moisture;. loss of soil’s natural fertility

. use of mulch or compost in conjunction with crop rotation practices.- Control over the use of mineral fertilizers – excessive use should not be allowed . further reduce chemical fertilizer use through incorporation of various organic cultivation practices. Mitigation moderately easy since chemical fertilizer costs are high

. extension agents should work closely with farmers to develop application rates and best land husbandry and crop rotation plans

Nutrient enrichment of water bodies

. eutrophication of water bodies. contaminated potable water sources

. modified aquatic ecosystems

. loss of household water supply;. must search for new source

. organic farming;

. crop rotation

. optimum fertilizer quantities and application schedules should be planned and implemented Mitigation moderately easy since fertilizer costs are high

. work closely with extension workers to develop best land and crop management plans. potential impact on international waters

Emission of greenhouse gases from chemical fertilizers

. contribution to global warming

. climate change . optimum fertilizer quantities and application schedules should be planned and implemented Mitigation moderately easy since fertilizer costs are high

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Table A7-5. Pest Management/PesticidesPotential Direct Negative Impacts




Impaired health of handlers including those who store, sell, transport and apply pesticides

. increased health costs;. lost family income;. insurance costs

Ensure selection of pesticides that are relatively safe (preferably WHO Class III and Class II after training in the proper handling and use of pesticides;The objective of introducing IPM (integrated pest management program) is to ensure safe crop production practices.

MoA and MENR should develop application certification programs.MOA will encourage the revival of elements of IPM such as monitoring pest activity, establishing economic injury thresholds, cultural and mechanical control and biological control practices with the aim of adopting an IPM Program.

No additional cost

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Possible impaired health of food consumers

. increased health costs;. lost work time;. lost family income

. health warnings to wash foods;. use of appropriate chemicals that minimize residue and are least harmful to consumers;Delaying first spray to maintain natural population of biological control agents;. consider organic farmingavoid the use of pesticides like those in POPs categories, and broad-spectrum products with mammalian toxicity and high persistence... monitoring pest activity with pest surveys and light and pheromone trap catches where feasible.. insectivorous bird population support

Public education is required and this could be done through MoA and the NGO community. It should be determined if MoA is developing an IPM program.

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Soil contamination . long term loss. altered soil microfauna important to soil. biodiversity loss

. eventual loss of soil productivity

. Use of appropriate pesticides that do not have residuals or in which residuals do no harm to soil;. Prevent back siphoning or overfilling of sprayer tanks

Difficult because agrochemical companies promote their products amongst farmers and farmers will generally adopt the least cost chemical that does the job

Ground and surface water contamination due to:. Leakage of stored concentrate or discarding unrinsed 'empty' containers in or near to a water supply. spray drift under windy conditions or application too close to open water.

. movement of pesticide from treated land by heavy rains and runoff waters. spills that leak to groundwater and move laterally in aquifers

. impaired health of local and downstream water consumers. biodiversity losses. aquatic ecosystems damaged

. Use optimal (recommended) amount of pesticides. Consider planting across the slope. Make sure pesticides storage areas are away from water supplies and above high water flood levels.. Cover wells if spray operations are to be carried out in their vicinity.. Do not spraying when winds exceed 11 km/hr.

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Table A7-6. Plant production technologiesPotential Direct Negative Impacts




Deep cultivation contributes to soil erosion

Loss of soil productivity and stream sedimentation

Water regulation losses;modified aquatic ecosystems

Practices other than deep ploughing (e.g. direct seed drilling without disturbing the soil, or shallow tilling). Mitigation will be difficult

Difficult to change old ways. Agriculture extension service will be required to provide training, advice and demonstrate advantages.

No additional cost

Soil erosion . stream sedimentation. modified hydrological regime. desertification

. loss of productivity

. loss of soil moisture

. aquatic ecosystem modified. flooding and drought conditions increased

. contour ploughing required. optimal ploughing schedules to ensure minimal time for exposed soil.. organic agricultural practices adopted (e.g. shallow tilling)Mitigation will be difficult.

. should be conducted in conjunction with other good husbandry practices including maintenance of cropping residues (i.e. no burning). coordinate with agricultural extension field services

No additional cost

Reduction of groundwater; extraction of surface water

. biodiversity loss

. desertification. loss of water to other current and potential users

Water sharing plan to ensure equitable distribution.Water saving techniquesMitigation very difficult.

Water sharing plan will be challenging to prepare and implement

No additional cost

Salinization; . desertification . loss of productive Appropriate No additional cost

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waterlogging land drainage system. Mitigation relatively easy.

Water contamination as a result of application of fertilizers and pesticides

. eutrophication of water bodies. contaminated potable water sources

. modified aquatic ecosystems

. optimum fertilizer quantities and application schedules should be planned and implemented. use optimal (recommended) amount of pesticides. consider planting across the slope. adopt organic farming. use Integrated Pest Management methods

Training on organic farming and IPM will be required during extension phase.

10

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Table A7-7. Livestock production technologies

Potential Direct Negative Impacts

Potential Indirect Negative Impacts Consequences

Recommended Mitigation Measures / Best Practices

Remarks

Overgrazing . loss of ground cover. soil erosion. loss of water holding capacity

. reduced productivity

. loss of soil

. sedimentation

. hydrological regime modified resulting in flooding and drought conditions

. consider pasture management. ensure that pasture carrying capacities are not exceeded.

. work closely with agricultural extension services

In high altitude areas stock may threaten forested or other protected areas

. reduced vegetation cover. soil erosion. loss of water holding capacity

. loss of soil

. sedimentation

. hydrological regime modified resulting in flooding and drought conditions. reduced biodiversity

. ensure that grazing does not occur in protected or other important areas.

. work closely with agricultural extension services. regular monitoring

Livestock in a confined area – concentration of manure

. close confinement can result in animal diseases

. high nutrient loading in runoff waters leading to poor water quality and threat to human health. loss of stock and income

. manure use as fertilisers;. biogas facilities use. alternative to confined quarters.

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Table A7-8. Slaughter houses Potential Direct Negative Impacts



Remarks

Surface water contamination from effluent discharge

. human and animal diseases. loss of potable water supply;. damaged aquatic ecosystems. BOD5 level increase

.increased health costs

. biodiversity loss. design suitable bloodcollection facilities and allowing sufficient time for bleeding, typically seven minutes;. Fit drains with screens and/or traps to prevent solid materials fromentering the effluent system.

Slaughterhouse waste is first converted into intermediate products like Meat Bone Meal (MBM), Dicalciumphosphate (DCP) & bicalphos (BCP) which are essentially feed supplements. They are then mixed with various crop ingredients to make a complete feed for animals.

Soil contamination . Reduction in the amount of land available for food production. income loss

. slaughterhouse wastes can be used as inputs to feeds for the poultry, fish and pets like dogs and cats;. incineration of infected animals remains and carcasses

Necessity to incinerate the infected animals is the legislative requirement

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Table A7-9. Primary processingPotential Direct Negative Impacts


Potential Consequences Recommended Mitigation Measures / Best Practices

Remarks

Surface water contamination from effluent discharge (e.g. blood from meat processing)

.impaired health of downstream users;. loss of potable water supply;. damaged aquatic ecosystems

.increased health costs,

. lost work days and family income;. alternative source of potable water must be found;. reduced biodiversity

.assurance that effluents are treated before discharge;. alternative ways of handling effluents (e.g. recycling);. good housekeeping to prevent product and by-product losses;. blood recovery;. serum use as animal fodder or new milk products output

Each processing operation will differ and for a number there will be no impacts;project design must be submitted and reviewed; monitoring of operations requiredMitigation will be a condition of the issuance of an environmental agreement.

High level of water and energy consumption

. air pollution from boilers

. lost income . Use high pressure rather than high volume for cleaning surfaces;. Maintain optimal combustion efficiencies on boilers.. Improve insulation on heating and cooling systems and piping.

Injury and illness as a result of poor working conditions

. injuries and illness;

. lost work time;

. lost family incomes

. provision of appropriate safety features and protective clothing;. training on the use of equipment;. awareness of dangersMitigation relatively difficult.

This may come under any regulations relating to occupational safety.

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Table A7-10. Storage facilitiesPotential Direct Negative Impacts



Remarks

Reduction in the amount of land available for food production

Reduced income from lower total crop production.

. Efficient design to minimize space required.. Accurate selection of site for storage constructionMitigation easy.

CFC emissions from compressors

Ozone layer depletion Global warming . replace CFC-based refrigerants by less hazardous HCFCs or preferably, by ammonia;. closed circuit systems and leak prevention. consider passive ventilation methods

Leakage of fuel and chemicals into surface and groundwater

Pollution of ground and surface water leading to contaminated drinking water and irrigation water as well as affecting aquatic ecosystems

Construction to include impermeable flooring. Mitigation easy.

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ANNEX 7A

REPUBLIC OF AZERBAIJAN

Third Agricultural Development and Credit Project (ADCP III)

TERMS OF REFERENCE

Environmental Specialist

Introduction

The Government of Azerbaijan is implementing a third phase of the "Agricultural Development and Credit Project" (ADCP III) in Azerbaijan. The overall objective of the project is to to contribute to enhancing the competiveness of the agrifood sector. The project components and activities are:

Component A: Support for sanitary and phytosanitary servicesThis component would support strengthening the efficiency and effectiveness of sanitary and phytosanitary services in order to reduce existing obstacles to agricultutal and food trade. The component investments would support approximation with the requirements for regional or international trade and to create market opportunities for iport substitution in the agri-food sector. Activities under Component A will be grouped into three subcomponents: (i) National Food Safety Strategy and Capacity Building; (ii) Upgrading Plant Health and Phytosanitary System (iii) Animal Health and Veterinary Services.

Component B: Agribusiness value chain developmentThe objective of Component B is to improve productivity and market integration of selected supply chains and promote linkages amongst value chain participants. This component will be structured as two sub-components: (i) Investment and advisory support for agribusiness value chain development;and (ii)Seeds Sector Development, including support to private seed growers and associations, support to state seed inspectorate services, equipment acquisition and support with research equipment for crop variety development program.

Component C: Access to CreditThe objective is to enhance access to financial services for agribusinesses operating in Azerbaijan’s agrifood sector, in particular towards enhanced competitiveness of the agribusiness sector, achievement of food product quality and safety standards, new products development, and establishment of market linkages. Specifically, the component will include the following activities: (i) credit line through commercial banks and leasing institutions, and (ii) capacity building of PFIs.

Component D – Project Management and Results Monitoring

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This component will finance the administrative and operational project implementation and management costs (FM, procurement, safeguards compliance, M&E), including overheads of Project Management Unit (PMU) professional staff as well as support staff. ADCP 3 will continue the current practice of regular and rigorous project monitoring and using mixed quantitative and qualitative methods.

The Project is managed by the Project Management Unit (PMU) established within the State Agency for Agricultural Credits (SAAC) under the first phase of ADCP, which continued under ADCP - II, The SAAC is the Ministry of Agriculture’s agency for overseeing international agricultural development projects. The PMU functions include among others, implementation of project activities, financial management, procurement, project monitoring and evaluation.

Environmental aspects

The project has been assigned environmental category FI, as its largest Component C involves credit lines through authorized agent banks. The anticipated environmental risks are mainly associated with Components A and B envisaging upgrade of laboratories, and Components B and C which will be supporting agricultural sub-projects via credit lines and grant programs. Laboratories to be supported under Components A and B may practice improper environmental management and improper handling of hazard/chemical and medical wastes. The risks likely to occur due to Components B and C activities are local and temporary, lasting during the implementation of sub-projects. Possible environmental implications of Component B may also include increased use of pesticides (for example, due to facilitation of crop cultivation).The ADCP II Environmental Assessment and Management Plan (EMP) has been updated by the PMU to address the environmental aspects of ADCP III and determine key actions that the project should take to safeguard negative environmental impacts. The EMP includes a framework for assessing and mitigating potential impacts that may occur during implementation of activities financed by on-lending to small and mid-sized agricultural enterprises.

The project will benefit from the institutional capacity developed under ADCP I and II which improved environmental management practices of the PMU and participating PFIs. The project’s information and advisory service activities will continue to promote the adoption of improved and environmentally sound technologies, provide training and advice on integrated pest management techniques as well as on improved use and handling of fertilizer and agro-chemicals. A large number of trainings were provided during ADCP I and II to project beneficiaries including borrowers and PFIs. The ADCP III will continue building capacity among potential applicants and those PFIs which are new to the project.

Objective of the assignment

Overall objective of the assignment is to ensure compliance of the project with the Azerbaijan national laws and regulations as well as with the World Bank environmental safeguards (OP/BP 4.01) and with the project EMP. The PMU will engage the services of an experienced environmental specialist who will supervise the implementation of mitigation measures outlined in the environmental management plan, and provide guidance and recommendations as necessary.

Scope of work

The detailed functions and responsibilities of environmental specialist will include:

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Task 1. Review and discuss in detail the implementation of EMP per each component; evaluate how each component of ADCP III follows the requirements of the project EMP; identify gaps and develop work plan or action plan for implementation of EMP in regards with each component. Specifically:

Under Component A, the Environmental Specialist will review the existing environmental management practices in the laboratories to be upgraded under the project, and will deliver training to laboratory personnel on best international practices, including handling of hazard and toxic materials and management of medical wastes.

Under Component B, the Environmental Specialist will facilitate raising awareness among project beneficiaries on the principles of Integrated Pest Management. This will be done trough both capacity building activities supported by the project, and trough extension services.

Under Components B and C, the Environmental Specialist will (i) ensure that sub-project proposals are correctly screened, (ii) review environmental management documentation of proposed sub-projects, (iii) participate in the evaluation of the proposals, and (iv) deliver series of trainings to potential applicants, VCDS and PFIs, in order to improve the capacity of those to deal with environmental risks associated with the sub-project implementation. The Environmental Specialist will also advise credit/grant applicants, VCDS and PFIs on ‘as needed’ basis at all stages of sub-project preparation and implementation.

Task 2. The Environmental Specialist will:

conduct random sampling monitoring of sub-projects and will report to the PMU accordingly. For the sub-projects associated with higher risks and/or sensitivities, the monitoring will be conducted as frequently as needed by the project nature. Individual monitoring schedules should be identified by the consultant at the stage of sub-project applications review and agreed with VCDS/PFIs and PMU M&E Officer. The report should specify the status of implementation of mitigation measures outlined in site specific EMPs. In case of any issues the report should specify recommendations/follow up actions by PMU and a credit/grant beneficiary, with indicative timeframe;

On an annual basis, undertake assessment of cumulative impacts based on indicative cumulative scores specified in the project EMP. The determination of cumulative scroe and decision on revisiting sub-project category will be case-specific.

The Environmental Specialist shall coordinate with the PMU M&E Officer and provide inputs for regular quarterly and annual progress reporting of the PMU to the Bank. The Environmental Specialist, together with M&E Officer, will prepare annual report on the status of safeguard implementation under the project. Such reports shall be furnished by the PMU to the Bank.

Timing and Reporting:

The duration of the assignment will be twelve (12) months. The period of the assignment will be extended throughout the project life depending on performance and projects needs. Detail working schedule will be agreed with the consultant at the time of contract signing.

The Environmental Specialist will report to the PMU Director. The task will be carried out in cooperation with the Ministry of Environment and Natural Resources. The consultant will also coordinate closely with the Environmental Specialist of the WB Country Office.

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ANNEX 8. INTERNATİONAL BEST PRACTİCE İN SAFETY OF RESEARCH LABORATORİES2

Procurement / Transport Minimize acquisition / quantity of hazardous materials, minimize storage time needed Identify mechanism of waste disposal before acquisition For chemicals, have Material Safety Data Sheets (MSDSs) accessible/confine deliveries to areas that are equipped to handle them (and train relevant personnel) Ensure container is intact and appropriately labelled (US regulations detail how hazardous materials have to be identified, packaged, marked, labelled, documented and placard) Transport in appropriate (secondary) containers Use triple packaging system for infectious and potentially infectious substances Adhere to international air transport regulationsStorage / Management Inventory should have name as printed on the container For chemicals: include molecular formula for further identification and to provide a simple means of searching chemicals; include CAS (Chemical Abstract Service) registry number for unambiguous identification of chemicals despite the use of different naming conventions Source Size of container Hazard classification, as a guide to safe storage, handling, and disposal Date of acquisition, to ensure that unstable chemicals are not stored beyond their useful life, and Storage locationProcedures Dispose of materials anticipated to not be needed within a reasonable time frame Use approved containers; make sure storage containers remain intact and sealed Dispose of chemicals prior to expiration date, monitor reactive chemicals Replace deteriorating labels before information is obscured or lost Follow regulations for safe storage in stockroom or lab Avoid storing chemicals on bench tops or lab hoods Store volatile chemicals in ventilated cabinet (near hood) If ventilation is not required, store in closable cabinet or on shelf with lip to prevent sliding Do not expose stored chemicals to heat or direct sunlight Observe all precautions regarding the storage of incompatible chemicals Provide vented cabinets beneath hoods for storing hazardous materials Use chemical storage refrigerators for storing chemicals Have fire protection system (sprinklers) Follow storage limits for flammable and combustible liquids Restrict access to storage facility

2 US National Institutes of Health

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Protocols / Facilities for Use in Research Wear and use appropriate personal protection materials to minimize exposure Wash hands Reduce the possibility of creating splashes or aerosols Contain in biological safety cabinets operations that generate aerosols Use good housekeeping Use mechanical pupating devices Promptly decontaminate work surfaces Never eat, ring, smoke, handle contact lenses, apply cosmetics, or take medicine in the lab Take special care when using sharps Keep lab doors closed when experiments are in progress Use secondary leak-proof containers to move or transfer cultures Decontaminate infectious waste before disposal Post appropriate warning signs Mark emergency equipment, maintain it, inspect it; list telephone numbers to call in case of accident Control accessFor Radioisotopes Use only in designated areas Allow the presence of essential staff only Use personal protective equipment Monitor personal radiation exposures Use spill trays lined with disposable absorbent materials Limit radionuclide quantities Shield radiation sources Mark radiation containers with the radiation symbol, including radionuclide identity, activity, and assay date Use radiation meters to monitor working areas, protective clothing, and hands after completion of work Use appropriately shielded transport containers Remove radioactive waste frequently from the working area Maintain accurate records of use and disposal of radioactive materials Screen dosimeter records for materials exceeding the dose limits Establish and regularly exercise emergency response plans In emergencies, assist injured persons first Clean contaminated areas thoroughly Write and keep incident reportsFor Animal laboratories Require good microbiological techniques Establish policies and protocols for all operations and for access to vivarium Establish appropriate medical surveillance program and supervision for staff Prepare and adopt safety or operations manual Post warning signs Decontaminate work surfaces after use Use appropriate biological safety cabinets or isolator cages; handle and decontaminate animal bedding and waste materials appropriately Transport material for autoclaving or incineration safely, in closed containers Treat, report, and record injuries

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Training of PersonnelEmployer develops Chemical Hygiene Plan containing (models available from U.S. government and from some professional societies) Employee information and training about the hazards of chemicals in the work area:

o How to detect their presence or releaseo Work practices and how to use protective equipmento Emergency response procedures

Circumstances under which a lab operation requires prior approval from the institution Standard operating procedures for work with hazardous chemicals Criteria for use of control measures Measures to ensure proper operation of fume hoods and other protective equipment Provisions for additional employee protection for work with select carcinogens and toxins Provisions for medical consultations and examinations for employees Labs should establish their own safety groups at the department level (include students and support staff) Labs should provide training in safety and waste management for all lab workers, including students in laboratory classes Labs should incorporate institutionally supported lab and equipment inspection programs into their overall health and safety programs Review exit / evacuation routes Know how to report fire, injury, chemical spill, or summon emergency response Know first aid Know location and use of emergency equipment such as safety showers and eyewashes Know location and use of fire extinguishers and spill control equipment (have appropriate kits readily available) Lab personnel should establish ongoing relationships and clear lines of communication with emergency response teams Include information on safe methods for highly hazardous procedures commonly encountered by lab personnel that involve:

o Inhalation riskso Ingestion riskso Risks of percutaneous exposureso Bites and scratches when handling animalso Handling of blood and other potentially hazardous pathological materialso Decontamination and disposal of infectious material

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Segregation / Triage of WasteMulti-hazardous waste – goal is reduction of waste to a waste that presents a single hazard. Consider frequency and amount of waste generated; assess risk Identify / characterize waste:

o Physical descriptiono Water reactivityo Water solubilityo pH and possibly neutralization informationo ignitability / flammabilityo presence of oxidizero presence of sulfides / cyanideso presence of halogenso presence of radioactive materialso presence of biohazardous materialso presence of toxic constituents

Minimize waste’s hazards Determine options for management of hazards If appropriate, take steps to neutralize waste or render it non-hazardous When possible, select a single management option Establish procedures for dealing with unstable waste, or waste that requires special storage or handling Store safely:

o Designated room or facility modified to contain the waste (with ventilation and effluent trapping)o Protect workerso Minimize risk of fire or spillo Minimize radiation levels outside of areao Consider compatibility of materials being accumulated (e.g., aqueous and non-aqueous waste

should be separated) Give particular attention to the handling or cleaning of radioactive laboratory ware, and to the proper disposal of sharps.

o Non-contaminated (non-infectious) waste can be reused or recycled or disposed of as general waste

o Contaminated (infectious) sharps – collect in puncture-proof containers fitted with covers and treated as infectious; autoclave if appropriate

o Contaminated material for decontamination by autoclaving and thereafter washing and reuse or recycling

o Contaminated material for direct incineration

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DisposalNo activity should begin unless a plan for the disposal of hazardous waste has been formulated Use appropriate disposal method for each category of waste Use appropriate containers Label and securely close waste containers Separate wastes as appropriateFor low level radioactive waste, options include Storage time for decay and indefinite on site storage, Burial at a low-level radioactive waste site, Incineration, or Sanitary sewer disposalFor biological waste, options include Disinfection Autoclaving For liquids, disposal in sanitary sewer; putrescible waste disposed of by incineration; needles and sharps require destruction, typically by incineration or grindingCollection and storage of waste At satellite area near lab:

o should be clearly identified, ventilated if necessaryo determine whether to recycle, reuse, or disposeo hold here for less than one year; when containment volume limits reached, move to central

accumulation area – package appropriately At central accumulation area:

o separate according to compatibility, commingle solvents when appropriateo label clearly, store in appropriate containerso limit storage time to 90 dayso (ensure that employees are trained to handle waste materials as well as contingency planning for

emergencies)o When transporting, make provisions for spill control in case of accident; have internal tracking

system to follow movement of wasteo Ensure that all necessary records have been generated (Quantities and identification of waste

generated and shipped; Documentation and analyses of unknown materials; Manifests for waste shipping as well as verification of waste disposal; Any other information required to ensure compliance and safety from long-term liability)

Disposal options:o Incineration – is method of choice for most wastes, but is most expensiveo Normal trash – only where appropriate, must be clearly identified and appropriately labelledo Sanitary sewer – not commonly used; solutions must be aqueous and biodegradable, or low

toxicity inorganics – make sure sewer doesn’t drain into water supply inappropriate for waste disposal, and make sure waste is highly diluted

o Release to the atmosphere – not acceptable; fume hoods must have trapping devices to prevent discharge to atmosphere

If hazardous and non-hazardous wastes are mixed, entire waste volume must be treated as hazardous Preparation for transport to a treatment, storage, and disposal facility (TSDF) Waste generator must obtain assurance (in terms of documentation, permits, records) that provider is reliableFor infectious material Decontaminate, autoclave, or incinerate in lab Package appropriately (for incineration or for transfer to another facility for incineration) Protect against hazards to others to those who might come in contact with discarded items

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ANNEX 9. SUMMARY OF STAKEHOLDERS MEETING ON EMP

REPORT of the seminar conducted in Baku on the discussion of Ecological Evaluation and Ecological Management Document of the III phase of Agricultural Development and Credit Project Baku city, Park İnn hotel January 26, 2012

The seminar-discussion of Enviromental Management Plan Document on III phase of Agricultural Development and Credit Project was held on January 26, 2012 in Baku with the participation of the partners. 20 businessmen, farmers, state organizations, mass media and NGO representatives participated in the seminar (the list of the participants is attached). The seminar was opened by the banking specialist of PMU Kanan Hasanov with the introduction speech. He greeted the seminar participants and gave the information related to the Project. The monitorinq specialist of the PMU Anar Azimov gave short information about the results of the project and also informed that ADCP-3 is the continuation of the ADCP-2. Then the presentation of the document was held by the expert of the environmental issues Tofik Hasanov. The information on the necessity of the ecological analyses of the project, supporting of the ecologically confidenciality and sustainability of the projects and the role of the making decesion for identification of the projects, provision of the compliance of project proposals according to the legislative requirements of Azerbaijan Republic and preparation process of ecological evaluation plan was provided in the presented slides. The seminar participants shared their opinions on the above mentioned issues in the interactive discussions. The participants of the seminar shared their opinions on the process of the ecological analyses, requirements for the analyses, responsibility, ecological problems, necessary enviromental components, the main impacts and their mitigation in the farms and agricultural entities, in different agricultural service fields, i.e in veterinary service during the presentation.The above mentioned issues, especially which projects are concerned with the ecological evaluation, the necessity of the ecological evaluation process and the necessity of assitance to the applicants in this field which apply for the financing were the main discussion objects. Some participants of the seminar made reports after the presentation. The chairman of Environmental Ecological Defense Social Union Azizaga Humbataliyev proposed the possibility of the participation of NGOs during the implementation of this project. He also noted that the participation of NGOs will be effective for the project during the monitoring of implementation of this project.The chairman of Social Union for Future Development Support Mammadov Ramin shared his opinion related to the food safety issues. He noted that the lands are exteremly dirty at the result of use of pesticides more than norm for a long time in Azerbaijan and recommended to take it into consideration in the project. He also noted the necessity of the analyses of the produced agricultural products. T.Hasasnov informed that the projects on direct purchaisng of pesticides will not be financed in ADCP-3. But the farmer will be allowed to use only the pesticides which their usage is permitted in Azerbaijan in necessary cases. Furthermore, use of Pest Management Plan (PMP) prepared by the international expert within ADCP-3 will regulate the usage of pesticides.

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Banking employee Jarchiyev Vidadi told about the difficulties occured during the agreement of the ecological evaluation forms of the projects in the Ministry of Ecology.Owner Mustafayev Serkhan (Potato Seed Association) noted that the application of new and more productive seed sorts will be effective in production of agricultural products and told about the achievments of the Association in this field. The seminar participants noted that they support the project once more. They emphasized the necessity of starting the implementation of the project without delaying. T.Hasanov informed that the given proposals will be taken into consideration in the final EMP report.

s/n Name and surname of the

participants Name of the organization

1 Movla Musayev Turan bank2 Fikret Selimov Owner, Baku3 Vuqar Alakbarov Banking employee4 Azizaga Humbataliyev Environment Ecological Defense Social

Union5 Mammadov Ramin Social Union for Future Development Support6 Musayev Famil Owner, Şhamkir raion7 Kazımov Vidadi Mugan bank8 Asadov Turan Owner, Neftchala9 Ferruxov İslam Mugan bank10 Quliyev Natiq Texnikabank11 Agayev Elshen Banking employee12 Jabrayilov Bashir Banking employee13 İsrafilov İlham CIA14 Balayev Valeh “Agri-Finance” CU LLC15 Avazov Vugar “VPB-Soft” LLC16 Mustafayev Serkhan Potato Seed Association17 Poladov Muzaffar Owner, Processor18.

Nabiyev Shahin Owner, Gazakh

19.

Pashayev Nabi Owner, Guba

20.

Sadatov Elchin Owner, Bilasuvar

21.

Hasanov Kanan PİU

22 Azimov Anar PİU23 Hasanov Tofig Ecological expert

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REPORT of the seminar conducted in Barda on the discussion of Ecological Evaluation and

Ecological Management Document of the III phase of Agricultural Development and Credit Project

Barda city February 21, 2012

The public discussion of Enviromental Management Plan and Manuals Document on III phase of Agricultural Development and Credit Project was held on February 21, 2012 in Barda with the participation of the partners. 38 businessmen from Barda, Tartar, Yevlakh, Agdam and Goranboy raions, farmers, state organizations, mass media and NGO representatives participated in the seminar (the list of the participants is attached). The seminar was opened by the leader of Barda Regional Advisory Center Social Union Tofig Ibrahimov with the introduction speech. He greeted the seminar participants and gave the information related to the Project. He noted that the project is logical continuation of Agricultural Development and Credit Project and this project will play a great role in sustainable development sphere of agriculture. Then the presentation of the document was held by the expert of the environmental issues Tofik Hasanov. The information on the necessity of the ecological analyses of the project, supporting of the ecologically confidenciality and sustainability of the projects and the role of the making decesion for identification of the projects, provision of the compliance of project proposals according to the legislative requirements of Azerbaijan Republic and preparation process of ecological evaluation plan was provided in the presented slides. The seminar participants shared their opinions on the above mentioned issues in the interactive discussions. The participants of the seminar shared their opinions on the process of the ecological analyses, requirements for the analyses, responsibility, ecological problems, necessary enviromental components, the main impacts and their mitigation in the farms and agricultural entities, in different agricultural service fields, i.e in veterinary service during the presentation.The above mentioned issues, especially which projects are concerned with the ecological evaluation, the necessity of the ecological evaluation process and the necessity of assitance to the applicants in this field which apply for the financing were the main discussion objects. The main questions and proposals made by the participants of the seminar after the presentation

1. Agayev Vagif – he is interested that for what criterions do the projects classify ecological categories?

2. Rustamov Gara – He noted that the lands are exteremly dirty at the result of use of pesticides more than norm for a long time in the rayon and he was interested with the issues related to usage of pesticides in the project.

3. Agayev Azad – he noted the necessity of the advisory services within the project.

4. Aliyeva Leyla – she asked giving of the detailed information about the data related to the enviromental issues included into credit package and ecological evaluation rules.

5. Mehdiyev Yusif- he was interested with provision of the small loans in the project.

6. Karimov Namaz -NGO – He proposed to train the farmers and stakeholders on business plans and ecological evaluation of the projects.

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The expert gave detailed information about the issues raised during the discussions. The owners told about the difficulties occured in the Ministry of Ecology during the agreement of the ecological evaluation documents included into credit package and gave suggestions to facilitate this prosedure. Thus the seminar completed its activity.

The list of participantss/n The name and surname of

participant Employment/activity sphere

1 Ahmadov Kamran Majid Terter rayon, owner2 Huseynov Rafail Latif Terter rayon,3 Huseynov Rahbar Salman Terter rayon,4 Kazımov Asif Sabir Barda5 İbrahimov Elsever Giyas Terter rayon,6 Nabiyev Rasim İbrahim Goranboy rayon7 Axundov Muheddin Fettah Goranboy rayon8 Agayev Azad Adil Goranboy rayon9 Salmanov Elbrus Ali Barda rayon10 Kerimov Natiq Akbar Goranboy Rayon11 Alxasov Yusif Yusif Goranboy Rayon12 Avazov Dilqam Shamil Goranboy Rayon13 Qarayev Arif Hasan Goranboy Rayon14 Mammadov Namiq Tapdıq Terter rayon,15 Aliyev Eldar İbish Terter rayon,16 Agayev Vaqif Niyaz Agdam rayon17 İsgenderov Sahib Misgin Yevlakh rayon18.

Bakhshaliyev Agali Alihuseyn Yevlakh rayon

19.

Rahimov Etibar Sattar Yevlakh rayon

20.

Bakhshaliyev Zaur Alı Yevlakh rayon

21.

Huseynov Gilman Abdulla Yevlakh rayon

22 Ahmadov Gulam Latif Agdam rayon23 Rustamov Mohubbat Humbat Agdam rayon24 Mahmudov Jafar Mehemmedeli Agdam rayon25 Memmedov Oktay Husu Agdam rayon26 Atayev Rafael Lenkaran Agdam rayon27 Huseynov Khaqani Barda rayon28.

Mehdiyev Yusif Baheddin Barda rayon

29. Kerimov Namaz Barda rayon, NGO YAEKK30 Aliyeva Leyla Barda rayon, OXRAM31 Mehdiyeva Shefiyye Barda, owner32 Qarayeva Zarife Barda, owner33 Amoyev Aziz Cherkez Yevlakh, social union34 Rustamov Gara Barda, owner

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35 İbrahimov Tofig Kerim Barda, RAC social union36 Sultanov Sabuhi Barda, FAO project representative

REPORT of the seminar conducted in Ganja on the discussion of Ecological Evaluation and Ecological Management Document of the III phase of Agricultural Development and Credit Project

Ganja city February 17, 2012

The public discussion of Enviromental Management Plan and Manuals Document on III phase of Agricultural Development and Credit Project was held on February 21, 2012 in Barda with the participation of the partners. 28 businessmen from Ganja-Gazakh and Aran economic districts raions, farmers, state organizations, mass media and NGO representatives participated in the seminar (the list of the participants is attached). The seminar was opened by the director of PMU Huseyn Huseynov with the introduction speech. He greeted the seminar participants and gave the information related to the Project. He noted that the project is logical continuation of Agricultural Development and Credit Project and this project will play a great role in sustainable development sphere of agriculture. Then the presentation of the document was held by the expert of the environmental issues Tofik Hasanov. The information on the necessity of the ecological analyses of the project, supporting of the ecologically confidenciality and sustainability of the projects and the role of the making decesion for identification of the projects, provision of the compliance of project proposals according to the legislative requirements of Azerbaijan Republic and preparation process of ecological evaluation plan was provided in the presented slides. The seminar participants shared their opinions on the above mentioned issues in the interactive discussions. The participants of the seminar shared their opinions on the process of the ecological analyses, requirements for the analyses, responsibility, ecological problems, necessary enviromental components, the main impacts and their mitigation in the farms and agricultural entities, in different agricultural service fields, i.e in veterinary service during the presentation.The above mentioned issues, especially which projects are concerned with the ecological evaluation, the necessity of the ecological evaluation process and the necessity of assitance to the applicants in this field which apply for the financing were the main discussion objects. The main questions and proposals made by the participants of the seminar after the presentation 1. Ahmadov Shirin, Tovuz rayon, Alimardanlı village – he asked to be provided with the detailed information about the project components. 2. Hasanov Metleb, Ganja, GRİMM – He asked that who can conduct the ecological evaluation of the project?3. İbadov Shirin, Tovuz rayon, owner – he asked to be provided with the detailed information about the ecological evaluation procedure of the project. 4.Mammadov Rustam, Samukh, owner – He is interested with the usage issues of pesticides by the farmers and the requirements made in this field. 5. Mammadov Oruj –Shamkir rayon. He asked to be provided detailed information about Pest Management Plan. 6. Mammadova Solmaz, owner – She is interested with that when will the project start? The expert gave detailed answers.

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The necessary ecological components, environment and mitigation of the issues, monitoring issues were defined together with the seminar participants in the final. Thus, seminar completed its activity. s/n The name and surname of the

participant Name of the organization

1 Mammdov Rustam Samux rayon, owner2 Nagıyev Samir Farmer3 Allahverdiyev Natiq Dashkesen rayon, owner4 Babayeva Gulnara Owner5 Asgarova Elmira Owner6 Mammadov Adil Owner7 Verdiyev Vusal Farmer8 Veliyeva Gulnigaz Owner9 Mustafayeva Elza Owner10 Mehdiyev Musamaddin Owner11 Aslanova Sveta Owner12 Bashirov Ramin Owner13 Mammadova Solmaz Owner14 Mammadov Shakir Owner15 Abdulazizov Yusif Owner16 Mammadov Neriman Social Union17 Guliyev Asim Social Union18.

Mammadova Gizkhanum Owner

19.

Aliyev Rafael Private Adviser

20.

Aliyev Mursal farmer

21.

Huseynov Israil farmer

22 Ahmadov Shirin Private Adviser23 Ibrahimov Mahir Private Adviser24 Mestanov Mahmud farmer25 Jahangirov Arif GRİMM social union26 Hasanov Matlab GRİMM social union27 Agamalıyev Kamran AİİATRM social union28.

Nejefov Metleb GRİMM social union

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REPORT of the seminar conducted in Khachmaz on the discussion of Ecological Evaluation and Ecological Management Document of the III phase of Agricultural Development and Credit Project

Khachmaz city February 23, 2012

The public discussion of Enviromental Management Plan and Manuals Document on III phase of Agricultural Development and Credit Project was held on February 23, 2012 in Baku with the participation of the partners. 20 businessmen from Guba-Khachmaz economic district (Shabran, Khachmaz, Guba, Gusar and Siyazan administrative raions), farmers, state organizations, mass media and NGO representatives participated in the seminar (the list of the participants is attached). The seminar was opened by the director of PMU Huseyn Huseynov with the introduction speech. He greeted the seminar participants and gave the information related to the Project. He noted that the project is logical continuation of Agricultural Development and Credit Project and this project will play a great role in sustainable development sphere of agriculture. Then the presentation of the document was held by the expert of the environmental issues Tofik Hasanov. The information on the necessity of the ecological analyses of the project, supporting of the ecologically confidenciality and sustainability of the projects and the role of the making decesion for identification of the projects, provision of the compliance of project proposals according to the legislative requirements of Azerbaijan Republic and preparation process of ecological evaluation plan was provided in the presented slides. The seminar participants shared their opinions on the above mentioned issues in the interactive discussions. The participants of the seminar shared their opinions on the process of the ecological analyses, requirements for the analyses, responsibility, ecological problems, necessary enviromental components, the main impacts and their mitigation in the farms and agricultural entities, in different agricultural service fields, i.e in veterinary service during the presentation.The above mentioned issues, especially which projects are concerned with the ecological evaluation, the necessity of the ecological evaluation process and the necessity of assitance to the applicants in this field which apply for the financing were the main discussion objects. The main questions and proposals made by the participants of the seminar after the presentation Gafarov Khasmammad-owner. He informed that the chemical substances used against pests in horticulture and vegetable-growing in Guba-Khachmaz zone are not necessary effective and the quality of these substances is low. Expert Tofig Hasanov gave detailed information about enviromental problems during usage of pesticides in horticulture and fruit-growing and requirements of the project in this field. He gave information related to Pesticides Management Plan (PMP) prepared for the pest control within the project. He told about the advantages of the biological substances used in pest control and noted that he supports the usage of this method against pests within the project.Aslanov Musannif–Guba rayon, farmer. He asked to give detailed information related to the enviromental evaluation form included into credit documents package. Gurbanov Sabir- Guba rayon, Social Union. He told about the difficulties occured during the agreement of the ecological evaluation forms of the projects in the Ministry of Ecology. Sheydayeva Gulnara, Khudat rayon – She noted that the existing laboratories for the analyses of food products do not meet the requirements.

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Rashidov Bahruz, Gusar rayon, owner–consultant. He suggested to prefer the projects which modern technologies used in storage and processing of agricultural products during the selection of projects. Expert T.Hasanov gave detailed information about the issues raised during the discussions. The participants of the discussion noted that they support the project once more. They emphasized the necessity of starting the implementation of the project without delaying. PICTURES

The view from social discussions of the project in Khachmaz district.

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ANNEX 10: List of Pestisides Approved for Import in Azerbaijan1. 2,4 D Acid dimetylamine2. 2,4 D+ Dicamba3. Abamectin4. Acetamiprid5. Alphacypermethrin6. Aluminium Phosphide7. Amitraz8. Azoksistrobin9. Bentazone10. Bentazone+ terbuthylazine11. Beta Cyfluthrin12. Bifenthrin13. Bordeaux + mancozeb14. Bordeaux mixture+ Copper15. Brodifacoum16. Buprofezin17. Captan18. Carbendazim19. Carboxin + thiram20. Carbosulphan21. Chloridazon22. Chlorothalonil23. Chlorothalonil+ Carbendazim24. Chlorpyrifos + bifenthrin25. Chlorpyrifos + cypermetrin26. Clodinofop propargyl + antidote27. Clopyralid28. Copper Hidroxide29. Copper hydrochloride30. Copper oxychloride31. Copper oxychloride + zineb32. Copper oxychloride+cymoxalin33. Copper sulphate34. Coumatetralyl35. Cyhexatin36. Cypermethrin37. Cyprodinil38. Cyprodinil +fludioxonil39. Cyromazine40. Deltamethrin41. Deltamethrin + dimethoate42. Desmedipham + phenmedipham + etofumesate43. Diafenthiuron44. Diazinon45. Dicamba46. Dicamba + chlorsulfuron47. Dicamba +triasulfuron48. Dicloran49. Dicofol50. Difeconazole+ propiconazole51. Difeneconazole52. Difeneconazole + propiconazole53. Diflubenzuron54. Dimethenamid55. Dimethoate56. Dimetimorf + Mankazeb57. Dimetomorf+ Ditianon58. Dithianon59. Dithianon+ pyraclostrobin60. Emamectin benzoate61. Esfenvalerate62. Ethephon63. Ethephon+ cyclanilide

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64. Ethoprop65. Ethoprophos66. Ethylphenacine67. Famoxadone+ simoksanil68. Fenarimol69. Fenazaquin70. Fenbutation Oxide71. Fenoxaprop-P-ethyl72. Fenoxaprop-p-ethyl + antidote73. Fenoxycarb74. Fenphropathrin75. Flocumafen76. Fluazifop-p-butyl77. Fludioxonil+ cyproconazole78. Fluronoset79. Flusilazole80. Flutriafol81. Glyphosate82. Hexythiazox83. Helimacide-laktobakter84. Humic Acid85. Hymexazol86. İmazamox87. Imidacloprid + lambda cyhalothrin88. Imidacloprid+ mineral oil89. Indoxacarb90. Iprodione91. Klopiralid92. Klotianidin93. Kresoxim-methyl94. Qaloxifop-P- methyl95. Quizalofop-p-ethyl96. Quizalofop-P-tefuryl97. Laktobakteriyalar98. Lambda cyhalothrin99. Linuron100. Lyufenuron101. Lyufenuron+ Fenoxycarb102. Magnesium phosphide

103. Malathion104. Mancozeb105. Mancozeb + carbendazim106. Mancozeb + copper107. Mancozeb +dimetomorf108. Mancozeb +metalaxyl109. Mancozeb+Cymoxanil110. Mancozeb+famoxadon111. Mancozeb+mefenoxam112. Mandipropamid113. Mandipropamid+ Mancozeb114. Maneb115. Mepiquat chloride116. Metalaxyl117. Metaldehyde118. Metallic copper119. Metam Sodium120. Metamitron121. Methidathion122. Methomyl123. Metiram124. Metiram+ copper hydroxide125. Metolachlor126. Metrafenone

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127. Metribuzin128. Metsulfuron-methyl129. Mineral oil130. Mitallik mis+misxlor oksid131. Modifiye Hint Yağı132. Myclobutanil133. Nicosulfuron134. Oxamyl135. Oxyfluorfen136. Parafinic mineral oil137. Paraquat138. Pendimethalin139. Phosmet140. Piridaben141. Pirimiphos methyl142. Polret+triadimenol143. Profenofos + cypermetrin144. Proquinazid145. Prometrin146. Propargite147. Propargite+tefradfion148. Propiconazole149. Propiconazole+cyproconazole150. Propiconazole+tebuconazole151. Propineb152. Propineb+Cymoxanil153. Pyraclostrobin+ metiram154. Pyridaben155. Pyrimethanil156. Rebound157. Sulphur158. Tebuconazole + sulphur159. Texnik Bordo Bulamacı160. Tepraloxydim161. Thiabendazole + tebuconazole162. Thidiazuron + diuron163. Thiodicarb164. Thiophanate-methyl165. Thiophonate methyl +epoxikonazol166. Thiram167. Triadimefon168. Triadimefon + tebuconazole169. Triadimenol170. Triasulfuron171. Tribenuron methyl172. Trifloxystrobin173. Trifluralin174. Triticonazole+ pyraclostrobin175. Zetacypermethrin176. Zinc Phosphide177. Zineb178. Еtofymezam+phenmedipham+ desmedipham179. Тiomethaxam

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Documents

documents.worldbank.org€¦ · Web viewThe project proposes to develop new national standards in areas of production safety conforming to the international standards in collaboration