Environmental and Social Management Framework for the UIP2 selected water supply and wastewater (WS/WW) sub-projects in Kharkiv, Kirovograd, Kramatorsk, Ternopil, Zhytomyr, Kyiv, Kolomyia and Donetsk E4520 ENVIRONMENTAL AND SOCIAL SAFEGUARD DOCUMENTATION FOR THE SECOND URBAN INFRASTRUCTURE PROJECT SELECTED UTILITIES Environmental and Social Management Framework (ESMF) for the UIP2 selected water supply and wastewater (WS/WW) sub-projects in Kharkiv, Kirovograd, Kramatorsk, Ternopil, Zhytomyr, Kyiv, Kolomyia, and Donetsk Kyiv, March 2014 1 Environmental and Social Management Framework for the UIP2 selected water supply and wastewater (WS/WW) sub-projects in Kharkiv, Kirovograd, Kramatorsk, Ternopil, Zhytomyr, Kyiv, Kolomyia and Donetsk ACKNOWLEDGEMENT The Consultant “Komunalprojekts” JSC would like to transmit heartfelt thanks and appreciation to the Ministry of Regional Development, Construction, Housing and Communal Services of Ukraine (Minregion) for procuring his services to provide consultancy services for preparation of Environmental and Social Safeguard Documentation for the Second Urban Infrastructure Project Selected Utilities (UIP2). The Consultant extends genuine thanks and appreciation to all stakeholders who in one way or another supported the completion of this work. Special thanks are due to the staff of the Central Project Management Unit (CPMU) and local authorities for providing valuable information and support which enabled the Consultant to conduct the study slickly and in short term. 2 Environmental and Social Management Framework for the UIP2 selected water supply and wastewater (WS/WW) sub-projects in Kharkiv, Kirovograd, Kramatorsk, Ternopil, Zhytomyr, Kyiv, Kolomyia and Donetsk Table of Contents 1 INTRODUCTION………………………………………………………………………………………………….... 4 2 BACKGROUND…………………………………………………………………………………………………….. 5 3 DESCRIPTION OF THE INVESTMENTS UNDER THE PROJECT AND ENVIRONMENTAL SCREENING………………………………………………………………………………………………………....6 3.1 Description of the Investments under the Project................................................................................... 6 3.2 Environmental Screening........................................................................................................................ 9 4 LEGAL AND REGULATORY FRAMEWORK AND APPLICATION OF THE WB SAFEGUARDS……. 10 4.1 Legal and Regulatory Framework of the Project Activity...............…………………………………..……10 4.2 World Bank Safeguard Policies………………………………………………………………………………. 15 4.3 Comparative of Ukrainian and World Bank Requirements on Environmental Asse ssment…………… 17 5 SOCIAL INFORMATION…………………………………………………………………………………………. 18 6 POTENTIAL ENVIRONMENTAL IMPACTS AND MITIGATION MEASURES…………...……………….. 24 6.1 Environmental Benefits………………………………………………………………………………………...24 6.2 Adverse Environmental Impacts………………………………………………………………………………24 6.3 Proposed Mitigation Measures.............................…………………………………………………………..2 6 7 ENVIRONMENTAL AND SOCIAL MANAGEMENT PLANNING………………………………………….... 28 8 MONITORING PLAN………………………………………………………………………………………………32 9 DISCLOSURE AND STAKEHOLDERS CONSULTATION………………………………………………….. 32 10 REFERENCES…………………………………………………………………………………………………….. 33 ANNEX 1. Suggested Tentative ESMP Structure…………………………………………………………………. 34 ANNEX 2. Environmental and Social Management Plan/Checklist for Small Scale Civil Works……..…. 36 ANNEX 3. ESMF disclosure on the websites for public comments……………………………………….......45 3 Environmental and Social Management Framework for the UIP2 selected water supply and wastewater (WS/WW) sub-projects in Kharkiv, Kirovograd, Kramatorsk, Ternopil, Zhytomyr, Kyiv, Kolomyia and Donetsk 1 INTRODUCTION Since its independence in 1991, Ukraine has established the main premises for a national environmental policy, and has become a Party of important international conventions. On a legislative level, it has approved various national and state programs. Among them are the National Program for Environmental Rehabilitation of the Dnipro River Basin, the State Program on Improvement of the Quality of Drinking Water of Ukraine, the Program for Development of Water Supply and Sewer Systems, the State Program for Establishing Ukraine’s National Ecological Network as well as the State Program for Protection and Rehabilitation of the Azov and Black Sea Environment. Unfortunately, the above ecological programs are being implemented at a minimal level, and the problem with the drinking water quality remains a relevant problem for Ukraine. The key challenge in implementing these programs is lack of financing. The required funds exceed the state budget’s nature preservation funds and other financing mechanisms are not in place. In addition, due to the absence of a legally determined sustainable development policy, regional ecological activity remains unregulated. This leads to conflicts between administrative bodies on the central and local authority levels, and to gaps in responsibility. Therefore, in 2008 Ukraine and the International Bank for Reconstruction and Development (the World Bank) signed the Loan Agreement 4869-UA in the amount of US $140 million for the Urban Infrastructure Project (UIP). The UIP includes four Parts: A) Institutional Capacity; B) Rehabilitation Investments; C) Energy Efficiency and D) Project Management. It assists the Utilities in selected cities in moving towards higher quality and reliability of services and reducing the costs of service through a series of institutional improvements and investments in rehabilitation and upgrading of water supply and wastewater infrastructure as well as solid waste management. In addition to the loan, Ukraine and the World Bank signed the Letter of Grant Agreement for Swedish Trust Fund No.TF091769 in the amount of 35.85 million Swedish Crowns. The UIP is implemented under the overall responsibility of the Ministry of Regional Development, Construction, Housing and Communal Services of Ukraine (Minregion) in close cooperation with the Ministry of Finance of Ukraine (MoF) and the Ministry of Economic Development and Trade of Ukraine (MEDT). Minregion established a Central Project Management Unit (CPMU) to conduct a day-to-day UIP management and coordination and to provide assistance to the Project participating Utilities in disbursement, procurement, financial management, reporting and other activities. In order to continue to improve sustainable development of Ukraine’s municipal sector the Government of Ukraine initiated the Second Urban Infrastructure Project (UIP2) requesting the World Bank to fund it in the amount of about US $250 million. The World Bank confirmed its interest to support preparation and financing of UIP2 starting from the second half of the year 2014. UIP2 is intended as a response to environmental and social issues in eight cities of Ukraine that will be addressed through improvement of the quality and efficiency of water supply, sanitation and solid waste management services in the targeted municipalities. UIP2 will help the municipalities develop their cities in socially and environmentally sustainable manner and support Ukrainian reformation efforts on the way to European integration. This Environmental and Social Management Framework (ESMF) is developed for the UIP2 selected water supply and wastewater (WS/WW) sub-projects in Kharkiv, Kirovograd, Kramatorsk, Ternopil, Zhytomyr, Kyiv, Kolomyia and Donetsk. The description of proposed investment sub-projects is provided in Chapter 3. The ESMF describes procedures and mechanisms to be implemented to ensure compliance of sub-projects with environmental requirements of Ukrainian legislation and the World Bank safeguard policies. The purpose of this ESMF is to identify and direct the safeguard issues affecting the selected cities, and to orient the Utilities in development of Environmental and Social Management Plans (ESMPs), which will be prepared for each investment sub-project at a later stage. 4 Environmental and Social Management Framework for the UIP2 selected water supply and wastewater (WS/WW) sub-projects in Kharkiv, Kirovograd, Kramatorsk, Ternopil, Zhytomyr, Kyiv, Kolomyia and Donetsk This document should be updated as required to reflect any changes to UIP2 investments, Ukrainian legislation or World Bank policies. 2 BACKGROUND The second Urban Infrastructure Project (UIP2) was initiated by the Government of Ukraine and confirmed by the interest of the World Bank to support its preparation and financing starting from the second half of the year 2014 using a loan of approximately US $250 million. This Project is building on the on-going UIP and the World Bank’s long-term engagement in the municipal services sector. The objective of UIP2 is to improve the quality and efficiency of water supply, sanitation and solid waste management services in targeted municipalities. Based on the demand expressed, the Project will invest primarily in upgrading of water supply and waste water treatment facilities and services, as well in municipal solid waste management in Kharkiv for which a stand-alone Environmental and Social Management Plan was prepared. Issues to be solved as a result of implementation of the UIP2 in the area of urban infrastructure development, in particular, rehabilitation and upgrade of water supply and sewage disposal infrastructure are fully compliant with the priorities of development of the housing and utility sector which is confirmed in the provisions of the Law of Ukraine “On National Program of Reforming and Development of Housing and Utility Sector for 2009 – 2014” of 24.06.2004 No. 1869-IV. Considering the area of UIP2 implementation, the proposed Project executor is the Ministry of Regional Development, Construction, Housing and Communal Services of Ukraine (Minregion). The UIP2 will include several sub-projects in the area of water supply and waste water treatment, including wastewater sludge treatment, to be implemented by the public utility companies of Kharkiv, Kirovograd, Kramatorsk, Ternopil, Zhytomyr, Kyiv, Kolomyia and Donetsk. The UIP2 efficiency is proposed to be assessed with due consideration of complexity thereof based on several key aspects:  improvement of drinking water quality;  improvement of financial standing of public utility companies;  improvement of energy efficiency of public utility companies;  improvement of environmental and social situation;  enhancement of institutional capacity of public utility companies;  improvement of water supply and sewage disposal services quality. The expected outcomes of UIP2 implementation will be rehabilitation-driven improvement of service quality, which may facilitate introduction of tariff policy that will ensure financial viability of public utility companies. Installation of more efficient water supply and waste water treatment equipment will result in the reduction of total electric energy consumption which will allow public utility companies to gradually settle all the outstanding payments with the power supply companies. The implementation of a rehabilitation program will demonstrate significant positive social and economic outcomes as the poor quality of the housing and utility services affects the poorer portions of the population the most, as it is not possible for them to afford arrangement of alternative sources of water supply. Other positive outcomes are also probable, namely, health improvement among the consumers and improvement of amenities as a result of proper provision of housing and utility services. The activities and works proposed under the project are not expected to generate significant negative environmental or social impacts. Moreover, positive effects on the environment is expected because of better treatment of waste water, energy saving and reducing water losses in pipelines. Nonetheless, some activities should be closely monitored to ensure that they do not lead to future environmental and social risks. 5 Environmental and Social Management Framework for the UIP2 selected water supply and wastewater (WS/WW) sub-projects in Kharkiv, Kirovograd, Kramatorsk, Ternopil, Zhytomyr, Kyiv, Kolomyia and Donetsk 3 DESCRIPTION OF THE INVESTMENTS UNDER THE PROJECT AND ENVIRONMENTAL SCREENING 3.1 Description of the Investments under the Project Water supply and waste water treatment sub-projects will be implemented in Donetsk, Kharkiv, Kirovograd, Kolomyia, Kramatorsk, Kyiv, Ternopil and Zhytomyr (Figure 3.1). Figure 3.1. Location of the cities where UIP2 activities are planned for implementation [ 3] Most water supply and sewage disposal companies (vodokanals) in these cities are loss-making. Lack of financing makes scheduled maintenance impossible and prevents from timely payment of maintenance costs that include mostly electricity charges. Most electrical and mechanical equipment is not efficient and energy intensive, and non-compliant with modern technological standards. Lack of financing results in malfunctioning or even occasional shut-down of sewage discharge and treatment, which leads to excessive permanent pollution of rivers. Therefore, the UIP2 activities are aimed at supporting the involved public utility companies in their efforts to improve quality and reliability of service provision and energy efficiency through investments in rehabilitation and replacement of water supply, sewage treatment systems and associated networks, as well as improvement of the environmental and social conditions within the involved territories as a result of improvements in sewage treatment [2]. Successful implementation of this project is ensured by its social and environmental focus, support from the local authorities and the World Bank’s experience in implementing investment projects in Ukraine. Donetsk Donetskmiskvodokanal Utility Company plans to upgrade and re-equip water supply sector in Kuibyshevskiy district of Donetsk by rehabilitation of water pipelines and construction of several new pipelines; replacement of pumping equipment; installation of frequency regulators; introduction of automated remote control system for water distribution; putting into operation the sodium hypochlorite station and upgrading a water supply network operation monitoring system. 6 Environmental and Social Management Framework for the UIP2 selected water supply and wastewater (WS/WW) sub-projects in Kharkiv, Kirovograd, Kramatorsk, Ternopil, Zhytomyr, Kyiv, Kolomyia and Donetsk Implementation of the above measures will improve quality of water supplied to customers; reduce water losses; save electric energy and reduce greenhouse gas emissions; control levels of pollution of sewage discharges and account drinking water and sewage in Kuibyshevskiy district. Kharkiv Kharkivvodokanal Utility Company plans to implement a new technology that provides processing and disposal of sewage sludge after biological treatment, which includes deliquefaction of dewatered sludge, its combustion, generation of heat and electric energy and minimization of sludge residue. Implementation of this component will give the opportunity to reach self-sufficiency of technology of processing and disposal of sewage sludge by using heat and electric energy, a volume of which will satisfy the needs of complex of thermal sludge disposal and own needs of complex of Bezliudkivskyi biological treatment. It will also abate a negative impact on environment: to reduce greenhouse gas emissions; to decrease pollution of rivers of the city and water-collecting area of the river Siverskyi Donets; to improve quality of potable water supply of Kharkiv, Lugansk and Donetsk oblasts. Kirovograd Dnieper-Kirovograd Utility Company plans to replace water supply and sewage disposal systems by new one made of plastic materials to reduce water losses; to replace main flaps at the pumping stations, water supply networks; to replace non-operating fire hydrants for emergency water supply for fire-fighting; to replace pump equipment for increasing efficiency of electricity usage at water supply and sewage disposal pump; to implement new technologies, equipment, materials, devices for improving quality of potable water and sewage treatment; to implement automated control system (ACS) for processes of water supply and sewage disposal system of the city. Implementation of the above measures will reduce water losses from 45.6% to allowed 30%, and hereafter to 20%, as well as reduce electricity consumption by 30-40%. It will also provide the customers with quality potable water from underground and surface sources and decrease impact on the environment by improving quality of sewage treatment. Kolomyia Kolomyiavodokanal Utility Company plans to implement a project at the structural unit “НС -І” “water intake” and at water supply systems of Kolomyia city, which exhausted its life cycle and in some places the exhaustion of pipelines has reached 90%. At the same time, the increase of the city population requires extension of water supply system. Thus, the Utility plans to build a drinking water storage facility for 6000 m3 of water in order to increase water- storage capacity at the second elevation pumping station, and install water processing unit to remove turbidity of water. As a result, a reduction of electric energy consumption is expected at the range of 10-15%. Additionally, reconstruction of water supply systems and building new pipelines will allow reducing a consumption and loss of water in the systems and providing additional 15,000 of city residents with centralized water supply system. There is important aspect, that water abstraction from Prut River, which is international water way, will be reduced due to significant reduction of water losses. Kramatorsk Kramatorskvodokanal Utility Company plans to reconstruct a filtering station and replace liquid chlorine with sodium hypochlorite in water disinfection; to rehabilitate the municipal treatment facilities with enabling use of treated sewage as process water for industrial enterprises; to optimize city’s water supply and sewage disposal system and to introduce equipment for water monitoring service. 7 Environmental and Social Management Framework for the UIP2 selected water supply and wastewater (WS/WW) sub-projects in Kharkiv, Kirovograd, Kramatorsk, Ternopil, Zhytomyr, Kyiv, Kolomyia and Donetsk Implementation of the above measures will improve water supplied quality; to reduce water losses; to save electric energy and reduce greenhouse gas emissions; to account water consumption in rural areas; to improve sewage treatment and quality of sewage water discharged in the Kazennyi Torets River. Kyiv Kyivvodokanal Utility Company plans to reconstruct a river bank filtration pumping stations of the Dnieper water intake with introduction of energy saving equipment and frequency regulation with water intake facilities; to reconstruct the energy facilities of Krutohirna pumping station with replacement of pumping equipment; to reconstruct three elevation stations of the Desna water intake with introduction of energy saving equipment and frequency control; and to upgrade the booster pumping stations by introduction of high efficiency pump sets with frequency shifters. Implementation of these sub-projects will lead to significant energy saving and greenhouse gas emissions reduction; decreasing shut-off valve wear; increasing periods between repairs and reduce labor costs of preventive maintenance; reducing wear of pumping equipment and improving reliability and efficiency of its operation; and to reduction of water losses in the system. Ternopil Ternopilvodokanal Utility Company plans to construct water de-ironing station at the pumping station site (third elevation); to optimize water supply and distribution system; to modernize Ternopil and Verhnyo-Ivachivskyi water intakes; to install general house water counters; to rehabilitate sewage disposal system; to build new sewage pipelines; to upgrade sewage pumping stations No 1a, 2, 9, 10; to reconstruct sewage treatment systems with replacement of emergency and technological outwear equipments, and construct a sludge de- watering unit. Implementation of the above measures will improve quality of supplied water; reduce water losses in water supply networks by 5-10%, energy consumption by 10-20%; reduce greenhouse gas emissions; decrease costs of sludge lagoon release and reduce sludge de-watering period. Zhytomyr Zhytomyrvodokanal Utility Company plans to rehabilitate and replace water supply networks; replace pumping equipment and improve water purification facilities and sewage disposal. Implementation of the above measures will improve quality of supplied water and compliance with standard requirements; reduce water losses; save electric energy and reduce greenhouse gas emissions as well as improve sewage disposal system. Summary of the planned activities in the cities studied is presented in the Table 3.1. Table 3.1. Summary of potential planned activities in the UIP2 cities [2] City Planned activities Donetsk Upgrade and re-equip water supply facilities in Kuibyshevskyi district of Donetsk city. Kharkiv Improvement of sludge management at sewage treatment system. Construction of thermal sludge disposal facility. Kirovograd Reconstruction of water supply and sewage treatment facilities; Introduction of automated system with frequency control at the main 8 Environmental and Social Management Framework for the UIP2 selected water supply and wastewater (WS/WW) sub-projects in Kharkiv, Kirovograd, Kramatorsk, Ternopil, Zhytomyr, Kyiv, Kolomyia and Donetsk sewage pumping station. Kolomyia Reconstruction of water extraction and water supply systems; Construction of a new water storage tank for 6,000 m3 capacity. Kramatorsk Reconstruction and re-equipment of Kramatorsk filtration station; Reconstruction of the urban sewage treatment facilities; Optimization of urban water supply and sewage disposal systems. Kyiv Reconstruction of river bank filtration pumping stations of the Dnieper water supply station; Reconstruction of energy facilities of Krutohirna pumping station; Reconstruction of III elevation stations of the Desna water supply station; Upgrading the booster pump stations. Ternopil Construction of water de-ironing station at the platform of Ternopil third elevation pumping station; Optimization of water supply and distribution system; Modernization of Ternopil and Verhnyo-Ivachivskyi water intakes; Rehabilitation of sewage disposal system and building new sewage pipelines; Upgrade sewage pumping stations No 1a, 2, 9, 10; Reconstruction of sewage treatment systems with replacement of emergency and technological outwear equipments; Construction of sludge de-watering unit; Installment of general house water counters. Zhytomyr Replacement of water supply pipelines and pumping equipment; Improvement of water purification and sewage disposal facilities. 3.2 Environmental Screening Based on the preliminary assessment of the planned activities in the UIP2 cities there could be defined the following main components of the sub-projects, which will be carried out by the Utilities:  Upgrading and re-equipment of water extraction and water supply systems; 9 Environmental and Social Management Framework for the UIP2 selected water supply and wastewater (WS/WW) sub-projects in Kharkiv, Kirovograd, Kramatorsk, Ternopil, Zhytomyr, Kyiv, Kolomyia and Donetsk  Rehabilitation, reconstruction and construction of pipelines networks for both water supply and waste water;  Improvement of drinking water treatment facilities and construction of water storage facilities;  Reconstruction of sewage treatment and disposal facilities;  Construction of sludge de-watering unit and thermal sludge disposal facility;  Introduction of automated control system for processes of water supply and sewage disposal system. Generally, implementation of the above sub-projects will have positive environmental and social impacts in all cities. It includes improvement of drinking water quality; reducing water losses and water consumption; reducing greenhouse gas emissions and air pollutants; decreasing energy consumption; improvement of sewage discharged in the water ways and providing urban and rural areas with appropriate access to the water supply and sewage disposal facilities. However, there are some potential temporary negative impacts on the environment and society during construction and operation phases of the sub-projects. It includes noise and air pollution as a result of machinery operation, handling of materials; assembling of pipelines and demolishing of old facilities; pollution of soil, surface and ground water and risks to human health from accidental spills and leakages; pollution caused by poor transport and disposal of waste materials; landslips and erosion; risks of fire and explosions; increased risk of traffic disruption and accidents. Nevertheless, these potential negative impacts on the environment are temporary and could be avoided or minimized by appropriate mitigation measures during all phases of the UIP2. Chapter 6 provides more detail on potential environmental impacts and proposed mitigation measures. According to the results of the above environmental screening and taking into account the requirements of the World Bank's Operational Policy 4.01 “Environmental Assessment” regarding type, location, sensitivity and scale of the project and the nature and magnitude of its potential negative environmental impacts, it may be concluded that all sub-projects are classified as Environmental Category B. Thus, Environmental and Social Management Plan should be developed defining site-specific environmental impacts and mitigation measures for each sub-project. The tentative structure of the Environmental and Social Management Plan (ESMP) is proposed in Annex 1. 4 LEGAL AND REGULATORY FRAMEWORK AND APPLICATION OF THE WB SAFEGUARDS 4.1 Legal and Regulatory Framework of the Project Activity Taking into account the scope of the proposed sub-projects, namely that:  sub-projects will not lead to increased water intakes or higher volumes of treated water discharges;  construction outside the existing utility sites will take place only within city boundaries;  sub-projects will not generate any new types of wastes (compared to the waste generated by the existing facilities which will be reconstructed), nor will they require additional permits for waste disposal;  there could be potential positive effects on the environment due to higher energy efficiency; better treatment of waste water; reduction of water intake due to reduction in water losses; reduction of the area needed for sludge storage due to better sludge processing;  the overview of legislative and regulatory requirements will concentrate on those aspects which could be relevant for the proposed sub-projects only. The Ukrainian legislative and regulatory base which governs environmental issues is quite comprehensive, sophisticated and sometimes contradictory. It consists of: international conventions, treaties, protocols and 10 Environmental and Social Management Framework for the UIP2 selected water supply and wastewater (WS/WW) sub-projects in Kharkiv, Kirovograd, Kramatorsk, Ternopil, Zhytomyr, Kyiv, Kolomyia and Donetsk agreements ratified by the Parliament (Verkhovna Rada); laws; resolutions ( Postanova) and decrees (Rozporiadzhennia) of the Cabinet of Ministers of Ukraine (CMU); orders of the Ministries. By Resolutions of the CMU and orders of the Ministries various norms, rules, standards and guidances, often jointly referred to as regulations (normatyvno-pravovi akty) are approved. To become legal, every piece of legislation has to be registered with the Ministry of Justice of Ukraine. Policy Documents In 2010 the Parliament passed the Law "On the Main Principles (Strategy) of the National Environmental Policy of Ukraine till 2020", which specified the goal of environmental policy for the current period. Several provisions of this policy are related to drinking water:  Improvement of the ecological situation and increase environmental safety: "Reconstruction of existing and construction of new municipal wastewater treatment facilities with the goal to reach 15% reduction of water pollution by polluting substances (first of all organic compounds, nitrogen and phosphorus compounds) by 2020, and also reduce by 20% (compared to the baseline year) discharge of insufficiently treated wastewater by 2020.  Achieving the state of environment which is safe for human health: "... full compliance by 2015 with the regulatory requirements to the sources of centralized drinking water supply". In 2011, the Parliament of Ukraine passed the Law "On Amendments to the Law of Ukraine "On the National Program Drinking Water of Ukraine for 2006 - 2020". In fact, this Law approved a National Program "Drinking Water of Ukraine" for the years 2011 – 2020. The Program envisages that problems in the sphere of drinking water supply and water disposal shall be resolved, inter alia:  bringing sanitary protection zones and water conservation zones of drinking water sources into conformance with the normative requirements, evaluating environmental and hygienic conditions of drinking water sources for conformance to the established requirements;  inventory of sewage treatment facilities;  constructing and reconstructing water-retaining and sewage treatment facilities in order to decrease the amount of untreated sewage dumped into water bodies, and to utilize the sediments;  equipping water and sewage quality control laboratories with modern control and analysis equipment;  harmonizing the normative and legal base in the sphere of drinking water supply and water disposal with the European Union standards, with consideration to the national specifics, including with respect to increasing the liability for violating environmental pollution norms, primarily regarding dumping industrial waste into water bodies;  comprehensive research and engineering development aimed at energy and resource conservation, increased drinking water quality, and improved sewage treatment, as well as implementing these developments. Water Legislation The legal framework for water management in Ukraine is provided in the Water Code (1995) and other legislative acts, designed to facilitate the conservation, sustainable and scientifically justified use, and restoration of water resources; the protection of waters against pollution, contamination and depletion; the prevention and mitigation of harmful effects of waters; the improvement of ecological state of water bodies; and the protection of water user's rights. The main issues of the water supply and waste water (WS/WW) sector are a permit to take water from the water source ("special water use" permit) and a permit to discharge treated or non-treated wastewater into the environment. These critical areas of legislation recently underwent significant changes in a wake of reorganization of the Ministry of Ecology and Natural Resources of Ukraine (Minpryrody) (new by-laws of the 11 Environmental and Social Management Framework for the UIP2 selected water supply and wastewater (WS/WW) sub-projects in Kharkiv, Kirovograd, Kramatorsk, Ternopil, Zhytomyr, Kyiv, Kolomyia and Donetsk Ministry were approved by the Decree of the President of 13.04.2011 and accepted by the CMU 11.09.2013). One important novelty is that, since 18 May 2013, special water use permits are issued not by the Minpryrody, but by the Cabinet of Ministers of Crimea and oblast administrations (for water sources of national significance) and by Crimean Nature Protection Committee and oblast councils (for water sources of local significance). The procedure for such permits, however, remained unchanged. Key existing environmental regulations and standards in the field of water resource management include:  Resolution of CMU "On the order of approval and obtaining permits for special water use";  Resolution by CMU "On the Procedure of Development and Approval of Pollution Discharge Limits and the List of Polluting Substances, for which the Discharge Limits are Set";  State Sanitary Rules and Norms: "Drinking Water. Hygienic Requirements to the Centrally Supplied Drinking Water Quality";  Order by the State Committee of Construction, Architecture and Housing Policy of Ukraine, approving the "Rules for Conducting the Inspection, Technical Assessment, and Certification of External Networks, Water Supply and Sewerage Facilities" and "Regulation on the Safe and Reliable Operation of External Networks, Water Supply and Sewerage Facilities";  Order by the Ministry of Environment and Nuclear Safety of Ukraine "The Guidance on the Procedure for Developing and Setting the Discharge Limit Values for Polluting Substances Released into Surface Waters with Effluent Discharges";  Regulation "On the Rules of Designing and Operation of the Sanitary-Protection Zones of the Sources of Drinking Water". Air Protection Legislation Air protection legislation is important for the proposed sub-projects because some of them envisage reconstruction of chlorination facilities, and some will lead to additional air pollution (thermal sludge treatment). The legal and institutional frameworks and key environmental requirements in the field of ambient air protection are defined in the Law of Ukraine “On Ambient Air Protection” (1992). This Law aims to facilitate the maintenance and restoration of ambient air to its natural state, the provision of safe living conditions and environmental safety, and the prevention of harmful effects of ambient air on human health and environment. Key existing regulations and standards in the field of air protection include:  Resolution by the Cabinet of Ministers of Ukraine, approving the "Regulation on the Procedure for Determining the Level of Impacts on Ambient Air, Attributed to Physical and Biological Factors";  Resolution by the Cabinet of Ministers of Ukraine, approving the "Regulation on the Air Emission Permitting Regime for Stationary Sources";  Resolution by the Cabinet of Ministers of Ukraine, approving the "Regulation on the Execution of State Control Functions in the Field of Ambient Air Protection";  Guidelines on Preparing the Inventory of Air Emissions and Sources;  Maximum Admissible Concentrations (MACs) and "Probable Safe Effect Levels" for Polluting Substances Present in the Ambient Air in the Populated Areas. Sanitary well-being The Law "On Sanitary and Epidemiological Well-being of the Population" (1994) and regulations based on this law are of major importance for the WS/WW sector. The State Sanitary Epidemiological Service (SSES) within the Ministry of Health operates on the basis of this law and regulation. Access to information and public participation In Ukraine, access to environmental information was ensured when the Parliament ratified the "Aarhus Convention on Access to Information, Public Participation in Decision-making and Access to Justice in 12 Environmental and Social Management Framework for the UIP2 selected water supply and wastewater (WS/WW) sub-projects in Kharkiv, Kirovograd, Kramatorsk, Ternopil, Zhytomyr, Kyiv, Kolomyia and Donetsk Environmental Matters" in 1999. Several regulatory acts were developed by the Minpryrody, which specify provisions of this Convention. Environmental Impact Assessment There is a special Law "On Ecological Expertyza* (Environmental Review)" (1995), but the scope of objects which are regulated (Ecological Expertyza in general) is quite limited (new legislative acts, new technologies, new materials, new substances and products - Art.7). However, the Law also envisages the mandatory State Ecological Expertyza (by the government authority), and in this case the list of objects is much broader and includes (Art.14) not only objects listed above, but also investment schemes, investment projects, construction and reconstruction of enterprises etc. The decision "no objection" of the State ecological expertyza is mandatory for any investment/construction project. Engineering survey, design and construction are regulated by Minregion. There exists a whole set of design and construction norms and standards, including the State Construction Norms on Conducting Assessment of Environmental Impact (Ukrainian acronym OVNS, DBN A.2.2-1-2003). It is not mentioned in the Law "On Ecological Expertyza", but it is prescribed by regulatory acts that the project proponent should submit OVNS documentation - a section (rozdil) or volume (tom) of design documentation for State Ecological Expertyza. The key law which regulates all types of construction activities is the Law "On Regulation of City Planning Activity" of 12 March 2011. This law prescribes what kind of documentation should be prepared for construction projects of different types, and how this documentation should be reviewed. A full-scale EIA/OVNS (as stipulated by DBN A.2.2-1-2003, with materials of public consultations) is required only for projects of high environmental hazard (Article 31 of the Law on Regulation of City Planning Activity). To find out whether the project should be considered as such, a developer with the design organization should use criteria defined by the Law "On High Hazard Facilities" (2001) and Resolution of CMU "On Identification and Declaring of Safety of the Facilities of High Hazard" of 11.07.2002. Identification is the responsibility of the facility owner, and is based on the quantity of hazardous substance (e.g. chlorine). In addition to this, there exists a "List of High Hazard Activities and Facilities ", approved by the Resolution of CMU of 28.08.2013 and published in the official bulletin on 19.11.2013. In this list (p.15) WS/WW facilities, as well as "New construction, reconstruction, rehabilitation and capital repairs" of WS/WW facilities are mentioned. This means that sub-projects fall into the category of "high hazard". Part 2 of Article 31 of the Law “On Regulation of City Planning Activity” prescribes that an expert review (ekspertyza) of the design documentation is carried out by the licensed expert organizations in accordance with the rules laid out by the Resolution (Postanova) of the Cabinet of Ministers of Ukraine (CMU) of 11 May 2011 No 560. This Resolution specifies that the mandatory expert review, which includes environmental and sanitary-epidemiological components, should be conducted for the projects of IV and V categories of complexity. The rules of classification (what projects should be considered under IV or V categories) are defined by the Resolution of CMU of 27 April 2011 No 557. This classification is not related to "high hazard" objects described above, but takes into account number of people that could be permanently on site (over 300) or people outside the object (over 10,000) which could be affected by an accident. It is the responsibility of the project proponent to find out whether the project falls into these categories. If the funding for the projects of IV and V categories of complexity is provided from the state budget, funds of the state and communal enterprises and organizations, or with loans obtained with the state guarantees, an expert review should be conducted by the state-owned expert organization. There is a special Resolution of CMU of 2009, which defines the criteria of risks associated with WS/WW works, including environmental risks. By this Resolution, such objects as "drinking water supply, including water intake facilities, pump stations, water supply pipelines, reservoirs and water towers, wastewater collection and treatment, including sewage pipelines, mains, pump stations, wastewater treatment facilities" are categorized as potentially hazardous or with high hazard. 13 Environmental and Social Management Framework for the UIP2 selected water supply and wastewater (WS/WW) sub-projects in Kharkiv, Kirovograd, Kramatorsk, Ternopil, Zhytomyr, Kyiv, Kolomyia and Donetsk Legislation that governs activities of enterprises in WS/WW The key Law that regulates economic activity in the WS/WW sector is the Law "On Housing and Communal Services" (2004). This law establishes principles of the state policy on provision of housing and communal services, including drinking water supply and wastewater collection. This includes principles of equal access, reasonable pricing, saving of resources, etc. The law regulates transactions between executive authorities, owners of houses and all those who provide communal services (water utilities, vodokanals), including regulation of tariffs. This Law does not touch environmental issues except for the call for "rational use of available resources and sustainable development of settlements". Another important regulation is "Rules of Providing Services of Heating, Cold and Hot Water Supply and Sewage Collection" approved by the Resolution of CMU of 21.07.2005 No 630. An additional regulatory act which introduces a concept of natural monopoly is the Resolution of the CMU "On Providing a Unified Approach to Calculation of Tariffs for Housing-Communal Services" (2011). As far as recent regulations, the Resolution of CMU of 2009 "On Approving Criteria, by which the Level of Risk from Economic Activity in the Sphere of Drinking Water and Waste Water is Assessed and the Frequency of Planned Measures of State Supervision (Control) is Defined" prescribes the assessment of "effectiveness of measures for providing consumers with reliable services for drinking water supply and wastewater collection, which take into account the level of threat of adverse ecological consequences for the population and environment; effectiveness of measures aimed at preventing an emergency ecological situation". The Law "On Local Self-Government" (1997) defines responsibilities of local self-government, including elected (councils) and executive (administrations) authorities. The key responsibility of the local self- government is allocation of land for all sorts of activities, including land allocation for the needs of the WS/WW sector. Permits for operation of enterprise in the WS/WW sector The current environmental permit system in Ukraine is based on a medium-specific approach, with separate regulations related to air and water protection, as well as waste management. All sources of air and water pollution are required to have valid permits which stipulate the maximum allowable values of emissions to air and discharges to water, as well as monitoring requirements. There are also separate permits specifying limits for waste storage and disposal. To clarify the issue, in 2011 the Parliament passed a Law "On the List of Permits ( dokumenty dozvilnoho harakteru) in the Economic Sector". This Law stipulates that subjects of economic activity should possess only those permits that are listed in the Annex to the Law. Those that are relevant to the activities to be carried out under the proposed Project are listed below. Obviously an enterprise working in the WS/WW sector must also obtain a license in accordance with the Law "On Licensing of Certain Types of Economic Activity". List of permits relevant for WS/WW Title of permitting document Legislative act of Ukraine 1. Conclusion (vysnovok) of the state ecological expertyza Law of Ukraine "On Ecological Expertyza (Environmental Review)" 2. Conclusion (vysnovok) of the state sanitary- Law of Ukraine "On sanitary and epidemiological expertyza on operating objects, epidemiological well-being of including those of military and defense sector population"  Expertyza is a review of design documentation in order to confirm that this documentation complies with the requirements of specific legislation. State expertyza is carried out by a state organ. There are (Resolution of CMU of 11.05.2011) several mandatory expertyzas for construction projects: ecological, sanitary-epidemiological, fire protection, labour safety, energy efficiency, nuclear and radiation safety, engineering safety. Other expertyza could be required too - depending on sector. 14 Environmental and Social Management Framework for the UIP2 selected water supply and wastewater (WS/WW) sub-projects in Kharkiv, Kirovograd, Kramatorsk, Ternopil, Zhytomyr, Kyiv, Kolomyia and Donetsk 3. Conclusion (vysnovok) of the state sanitary- Law of Ukraine "On sanitary and epidemiological expertyza on documentation for the epidemiological well-being of technologies, machinery, instruments etc. under population" development 4. Permit for emission of polluting substances in Law of Ukraine "On Ambient Air atmospheric (ambient) air by stationary sources Protection" 5. Permit for construction works Law of Ukraine "On Regulation of City Planning Activity" 6. Permit for special use of nature resources within the Law of Ukraine "On Nature Reserves boundaries of territories and objects of nature-protection and Protected Areas of Ukraine" fund 7. Permit for waste management operations Law of Ukraine "On Waste" 8. Permit for special works to construct water extraction Water Code of Ukraine wells 9. Permit for waste placement (disposal) Law of Ukraine "On Waste" 10. Permit for preparing and approval of norms of discharge Water Code of Ukraine of polluting substances in water objects 11. Approval of water user's application with justification of Water Code of Ukraine the need for water, for obtaining of special water use permit 12. "No objection" for placing of enterprises, buildings and Water Code of Ukraine other objects activities of which are related to the use of water objects of local significance and which could have adverse impact on them 13. Certificate that the completed constructed object meets Law of Ukraine "On Regulation of City the provisions of design documentation, state Planning Activity" construction norms, standards and rules 14. Permit for storage and disposal of wastes Law of Ukraine "On Waste" 4.2 World Bank Safeguard Policies Taking into account the nature of the proposed sub-projects, out of 10 Operational Policies four policies (OP/BP 4.01: Environmental Assessment, OP/BP 7.50: Projects on International Waterways, OP/BP 4.11: Physical Cultural Resources; OP/BP 4.12: Involuntary Resettlement) are triggered. These four policies are described below. OP/BP 4.01: Environmental Assessment This policy is triggered if a project is likely to have potential (adverse) environmental risks and impacts in its area of influence, which is the case with our sub-projects. OP/BP 4.01 covers impacts on the natural environment (air, water and land); human health and safety; physical cultural resources; transboundary and global environment concerns. As discussed earlier, the sub-projects in WS/WW sector are classified as Environmental Category B. 15 Environmental and Social Management Framework for the UIP2 selected water supply and wastewater (WS/WW) sub-projects in Kharkiv, Kirovograd, Kramatorsk, Ternopil, Zhytomyr, Kyiv, Kolomyia and Donetsk The Borrower is responsible for carrying out the site-specific EA and preparation of ESMPs. The Borrower will disclose this ESMF and site-specific ESMPs and provide relevant information in a timely manner prior to consultation and in a form and language accessible to the groups being consulted. The above documents will be made available in the country and in the project locations in the local language and at a public place accessible to project-affected groups and local NGOs prior to appraisal. OP/BP 4.11: Physical Cultural Resources The policy on Physical Cultural Resources is triggered. However, it is not known yet whether which of the sub- projects will affect physical cultural resources at specific locations. In case the sub-project may potentially affect physical cultural resources, the sub-project proponent/beneficiary jointly with the CPMU will prepare the Action Plan for Physical Cultural Resources (APPCR) and clear it with the local cultural authority. The plan should be based on the provisions of the Law of Ukraine “On Cultural Heritage” No. 1805 -III from 08.06.2000. The APPCR should become an integral part of site-specific ESMPs for sub-projects where registered buildings or/and other historic and cultural sites were identified as potentially affected by the sub-projects. Standard chance finds procedures will be included in works contracts. The utilities will ensure that an appropriate clause is included in Sub-borrower loan agreement obligating the Sub-borrower to exercise due diligence in implementing the mitigation, monitoring and reporting measures specified in the ESMP and in the event of chance finds. OP/BP 7.50: Projects on International Waterways The water supply and wastewater systems that will be rehabilitated under the project draw water from rivers that are international waterways shared by Ukraine with neighbouring Russia, Moldova and Romania. Potential changes in water flow or deterioration in water quality during the construction works will be limited in scope and mitigated through implementation of the site-specific ESMPs. As there will be no increase in water abstraction by water supply utilities, project interventions are not expected to adversely affect the quality or quantity of water flows to upstream or downstream riparian states. The rehabilitation and modernization of infrastructure, optimization of water supply and wastewater networks and improvements in overall management of the utilities should result in an increase in system efficiency, thereby generating water savings and providing reliable water supply to the customers. Considering all this, the project falls under the exception to the notification requirement contained in the safeguard policy, approved by the Vice President for Europe and Central Asia Region for UIP-1. The task team will submit a request for a waiver stating that this also applies to the interventions under the proposed project. OP/BP 4.12: Involuntary Resettlement The policy covers not only physical relocation, but any loss of land or other assets resulting in:  relocation or loss of shelter;  loss of assets or access to assets;  loss of income sources or means of livelihood, whether or not the affected people must move to another location. The policy also applies to the involuntary restriction of access to legally designated parks and protected areas resulting in adverse impacts on the livelihoods of the displaced persons. The planning of resettlement activities is an integral part of preparation for Bank-assisted projects. During project identification, the Task Team (TT) identifies any potential involuntary resettlement under the project. As a condition of appraisal for projects involving involuntary resettlement, the Borrower submits to the Bank a resettlement plan, a resettlement policy framework, or a process framework that conform with the requirements of OP/BP 4.12. In the Project Appraisal Document (PAD), the TT describes the resettlement 16 Environmental and Social Management Framework for the UIP2 selected water supply and wastewater (WS/WW) sub-projects in Kharkiv, Kirovograd, Kramatorsk, Ternopil, Zhytomyr, Kyiv, Kolomyia and Donetsk issues, proposed resettlement instrument and measures, and the Borrower's commitment to and institutional and financial capacity for implementing the resettlement. The implementation of the resettlement instrument is supervised throughout the project life, and the requisite social, financial, legal, and technical experts are included in supervision missions. Supervision focuses on compliance with the legal instruments, including the Project Implementation Plan and the resettlement instrument. 4.3 Comparison of Ukrainian and World Bank Requirements on Environmental Assessment The analysis of Ukrainian and the World Bank requirements on the Project's Environmental Assessment and Environmental Management Plan indicates that they are largely similar. Environmental Assessment The World Bank's EA policy and procedure is generally compatible with the EIA system and practice established in Ukraine, both terminologically and methodologically. A key common requirement, articulated in both systems, relates to the mandatory character of the environmental impact assessment as an integral part of project preparation, design and development for any project activity that involves a new construction and/or upgrade of an existing facility. Full-scale EIA (as prescribed by Section 2 of the State Construction Norms DBN A.2.2-1-2003) is mandatory for all objects of "high hazard". According to Ukrainian legislation and regulations, sub-projects fall into this category of "high hazard" objects. For "non-high-hazard" objects a shorter version of EIA can be prepared. The scope of this "shorter" version is agreed by the local environmental protection authorities and sanitary-epidemiological service. In case of a full-scale EIA, the requirements to the scope of environmental and social assessment, as well as requirements to the disclosure of EA information according to Ukrainian legislation are similar to the requirements of the World Bank policies. Key Ukrainian document which regulates EIA process and stipulates requirement to EIA documentation is State Construction Norms DBN A.2.2-1-2003. At the same time, it should be noted that while the EIA is mandatory for “high hazard” facilities in Ukraine, these EIAs in real life are different from EIA/EMPs required by the World Bank. First, the mitigation measures identified by the EIA are often too general and do not take into account site-specific features. Second, the responsibility for implementation of the mitigation measures is not assigned to specific actors or organizations. Third, the costs of the mitigation measures are not specified and schedule of implementation of the mitigation measures is missing. In order to bridge the gap in the requirements, the above issues (i.e. focus on site- specific mitigation measures, institutional responsibility, costs and implementation schedule) should be explicitly required by the ToR for the EIA. Management of Cultural Heritage There is close similarity in requirements and approaches adopted by the World Bank and Ukraine with regard to the management of cultural heritage. A key common requirement, set out in the Bank's policy and Ukrainian legislation, is to ensure the preservation of cultural assets and historical heritage (DBN A.2.2-1-2003). Involuntary Resettlement There is no specific legislation regulating the management of involuntary resettlement issues as part of development projects in Ukraine, though these issues are addressed in a number of state regulations. 17 Environmental and Social Management Framework for the UIP2 selected water supply and wastewater (WS/WW) sub-projects in Kharkiv, Kirovograd, Kramatorsk, Ternopil, Zhytomyr, Kyiv, Kolomyia and Donetsk 5 SOCIAL INFORMATION Data on population and the average level of income in the sub-project cities are given in the Table 5.1. Table 3.1. Social data of project areas [17] City Population Average income (in UAH) (on 1st January 2013) Kharkiv 1451 thousand people 23731,3 (in Kharkiv region in 2012) Kyiv 2845 thousand people 49651,9 (in 2012) Kirovograd 234 thousand people 19741,7 (in Kirovograd region in 201) Donetsk 953 thousand people 27541,7 (in Donetsk region in 2012) Kramatorsk 164 thousand people 27541,7 (in Donetsk region in 2012) Ternopil 217 thousand people 17401,1 (in Ternopil region in 2012) Zhytomyr 271 thousand people 20740,4 (in Zhytomyr region in 2012) Kolomyia 61 428 people 18895,0 (in Ivano-Frankivsk region in 2012) The proposed sub-projects are focused on improvements in the quality and efficiency of water supply, sanitation in the targeted cities which include rehabilitation and upgrading of existing water systems, wastewater and sludge treatment facilities, equipment for water quality testing laboratories, equipment for operations and maintenance as well as spare parts, preparation of detailed designs and tender documents and construction supervision. Besides improvement of environmental conditions in the sub-project areas expected from the implementation of the projects, these activities will improve overall life conditions in the cities. A summary of the estimated benefits for society is given in Table 5.2. 18 Table 3.2. Estimated benefits for society [1,2,3,4,5,6,7,8,10,18] City Number of persons served Planned new Effects on society (direct and indirect) by the existing water and connections wastewater utilities within the subprojects Kharkiv Water supply services: No new users Direct effects: 1 270 000 customers – Conditions for attraction of new Clients created; – Quality of potable water supply of Kharkiv, Luhansk and Donetsk oblast improved; Wastewater services: – Improvement of water quality in the rivers (Kharkiv, Lopan, Udy, Seversky Donets) and elimination of sludge 1 000 760 customers (78,8%) fields will contribute to improving the living quality of people; – Safety of energy supply of the city through independent production of electric and heating energy improved; – Additional workplaces at electricity and heat energy production plant created; – Better working conditions for the Utility’s employees ensured; – Value of land plot, where deliquified sludge lagoons are located increased; – The sub-project implementation may cause the impact on wastewater services tariff; – Additional working places developed for re-construction works. Indirect effects: – Discomfort through pollution of the city’s rivers and water-collecting area of the river Siverskyi Donets avoided; – Discomfort through non-proper environmental conditions of water-collecting area of Azov Sea avoided; – Improved conditions for tourism and business development in the area created through better environmental and the Utility’s operation conditions; – Transparency and accountability of municipal service provision increased. Kyiv Water services users: No new users Direct effects: 32 144 customers (2 845 – Better quality of water and wastewater supply ensured for the Clients and conditions for attraction of new thousand people 100% of Clients created; people) – Accurate and consumption-based water metering ensured; – Quality (incl. water supply pressure) and energy efficiency of potable water supply of Kyiv improved; Wastewaters customers: – Interruptions in water supply minimised; 19 259 customers (2 765 – Better working conditions for the Utility’s employees ensured; thousand people - 97,2% of – The sub-project implementation may cause the impact on water supply and wastewater services tariff; people) – Additional working places developed for re-construction works. Environmental and Social Management Framework for the UIP2 selected water supply and wastewater (WS/WW) sub-projects in Kharkiv, Kirovograd, Kramatorsk, Ternopil, Zhytomyr, Kyiv, Kolomyia and Donetsk Indirect effects: – Discomfort from pollution of surrounded territories avoided; – Diseases related to poor quality water reduced; – Improved conditions for tourism and business development in the area created through better environmental and the Utility’s operation conditions; – Transparency and accountability of municipal service provision increased. Kirovograd Water supply services: No new users Direct effects: 98 200 customers – Better quality of water and wastewater supply ensured for the Clients and conditions for attraction of new Clients created; Wastewater services: – Accurate and consumption-based water metering ensured; 69 600 customers – Additional costs for water losses in the pipelines eliminated; – Quality of potable water of underground and ground sources improved; – Quality of wastewater treatment improved; – Interruptions in water supply and wastewater supply minimised through minimisation of pipelines accidents; – Better working conditions for the Utility’s employees ensured; – The sub-project implementation may cause the impact on water supply and wastewater services tariff; – Additional working places developed for re-construction works. Indirect effects: – Discomfort from pollution of surrounded territories avoided; – Discomfort from interruptions in water and wastewater supply avoided; – Diseases related to poor quality water reduced; – Improved conditions for tourism and business development in the area created through better environmental and the Utility’s operation conditions; – Transparency and accountability of municipal service provision increased. Donetsk Water services users: No new users Direct effects: 342 327 customers (743 686 – Better quality of water and wastewater supply ensured for the Clients and conditions for attraction of new people) Clients created; – Additional costs for water losses eliminated; Wastewater customers: – Accurate and consumption-based water metering ensured; 236 281 customers (526 764 – Accurate and consumption-based wastewater metering ensured; persons) – Interruptions in water supply and wastewater supply minimised through minimisation of pipelines accidents; 20 Environmental and Social Management Framework for the UIP2 selected water supply and wastewater (WS/WW) sub-projects in Kharkiv, Kirovograd, Kramatorsk, Ternopil, Zhytomyr, Kyiv, Kolomyia and Donetsk – The sub-project implementation may cause the impact on water supply and wastewater services tariff; – Better working conditions for the Utility’s labourers ensured; – Additional working places developed for re-construction works. Indirect effects: – Discomfort from pollution of surrounded territories avoided; – Discomfort from interruptions in water and wastewater supply avoided; – Diseases related to poor quality water reduced; – Improved conditions for tourism and business development in the area created through better environmental and the Utility’s operation conditions; – Transparency and accountability of municipal service provision increased. Kramatorsk Water supply services: No new users Direct effects: 176 000 domestic customers – Better quality of water and wastewater supply ensured for the Clients and conditions for attraction of new and 2 000 industrial and Clients created; commercial customers – Additional costs for potable water losses eliminated; – Accurate and consumption-based water metering ensured in dwelling houses and villages; Wastewater services: – Interruptions in water supply and wastewater supply minimised through minimisation of pipelines accidents; estimated 140 000 (70%), not – Improvement of water quality in the Kazennyi Torets river and elimination of sludge fields will contribute to collected from individual improving the living quality of people; households – The sub-project implementation may cause the impact on water supply and wastewater services tariff; – Better working conditions for the Utility’s labourer ensured; – Additional working places developed for re-construction works. Indirect effects: – Discomfort from pollution of surrounded territories avoided; – Discomfort from interruptions in water and wastewater supply avoided; – Diseases related to poor quality water reduced; – Attraction of new residents to the village areas with improved in water and wastewater supply systems; – The sub-project implementation may cause the impact to wastewater services tariff; – Improved conditions for tourism and business development in the area created through better environmental and the Utility’s operation conditions; – Transparency and accountability of municipal service provision increased. 21 Environmental and Social Management Framework for the UIP2 selected water supply and wastewater (WS/WW) sub-projects in Kharkiv, Kirovograd, Kramatorsk, Ternopil, Zhytomyr, Kyiv, Kolomyia and Donetsk Ternopil Water supply services: No new users Direct effects: 83 500 customers (from which – Better quality of water and wastewater supply ensured for the Clients; 80 000 domestic customers, – Water losses due to increase accident risk and excess heads in water pipes reduced; the rest - institutional and – Additional costs for potable water losses eliminated; industrial customers) – Accurate and consumption-based water metering ensured in individual apartments; – Interruptions in water supply and wastewater supply minimised in the micro-districts through minimisation of Wastewater services: pipelines accidents; 78 000 customers (74500 – – Better working conditions for the Utility’s labourers ensured; domestic customers, the rest - – Improvement of water quality in Seret River and reduction of wastewater leakage through pipelines institutional and industrial accidents will contribute to improving the living quality of people; customers) – Reduction of potable water losses in apartment houses ensured; – The sub-project implementation may cause the impact on water supply and wastewater services tariff; – Additional working places developed for re-construction works. Indirect effects: – Discomfort from pollution of surrounded territories avoided; – Discomfort from interruptions in water and wastewater supply avoided; – Diseases related to poor quality water reduced; – Improved conditions for tourism and business development in the area created through better environmental and the Utility’s operation conditions; – Transparency and accountability of municipal service provision increased. Zhytomyr Water supply services: No new users Direct effects: 100 072 customers (92 724 – Better quality of water and wastewater supply ensured for the Clients; domestic customers, the rest - – Quality (incl. water supply pressure) and energy efficiency of potable water supply in multi-storey house institutional and industrial districts improved; customers) – Additional costs for potable water losses eliminated; – Improvement of water quality in Dnipro River will contribute to improving the living quality of people; Wastewater services: – Interruptions in water supply and wastewater supply minimised in the micro-districts through minimisation of 208 683 customers pipelines accidents; – The sub-project implementation may cause the impact on water supply and wastewater services tariff; – Better working conditions for the Utility’s labourers ensured; – Additional working places developed for re-construction works. 22 Environmental and Social Management Framework for the UIP2 selected water supply and wastewater (WS/WW) sub-projects in Kharkiv, Kirovograd, Kramatorsk, Ternopil, Zhytomyr, Kyiv, Kolomyia and Donetsk Indirect effects: – Discomfort from pollution of surrounded territories avoided; – Discomfort from interruptions in water and wastewater supply avoided; – Diseases related to poor quality water reduced; – Improved conditions for tourism and business development in the area created through better environmental and the Utility’s operation conditions; – Transparency and accountability of municipal service provision increased. Kolomyia Water supply services: New pipelines. Direct effects: 70% of city residents 15 000 of new – Better quality of water supply ensured for the Clients and conditions for attraction of new Clients created; water supply – Quality (incl. water supply pressure) and energy efficiency of water supply in dwellings improved; domestic – Living comfort level for city residents living in dwellings improved; customers – Additional costs for potable water losses eliminated; – Improvement of water quality in Prut river will contribute to improving the living quality of people; – Interruptions in water supply and wastewater supply minimised in the micro-districts through minimisation of pipelines accidents; – Better working conditions for the Utility’s labour ensured; – The sub-project implementation may cause the impact on water supply and wastewater services tariff; – Additional working places developed for the re-construction works. Indirect effects: – Discomfort from pollution of surrounded territories avoided; – Discomfort from interruptions in water and wastewater supply avoided; – Diseases related to poor quality water reduced; – Improved conditions for tourism and business development in the area created through better environmental and the Utility’s operation conditions; – Value of land plot, in which reconstructed water supply system lie, increased significantly; – Transparency and accountability of municipal service provision increased. 23 6 POTENTIAL ENVIRONMENTAL IMPACTS AND MITIGATION MEASURES 6.1 Environmental Benefits The proposed sub-projects on water supply and wastewater rehabilitation (incl. construction of new ones) will lead to improve the quality and efficiency of water supply and sanitation in targeted municipalities, and will produce a positive effect on the environmental and public health situation. A summary of the potential environmental benefits is provided below. Kharkiv, Kyiv, Kirovograd, Kramatorsk – Better wastewater treatment and sludge handling; – Improvement of energy efficiency; – Conservation of water resources. Donetsk – Better wastewater treatment and sludge handling; – Improvement of energy efficiency; – Improvement of drinking water quality and prevention of continuous contamination; – Reduction of water losses; – Conservation of water resources. Ternopil – Improvement of drinking water quality; – Prevention of contamination; – Reduction of water losses; – Reduction of atmospheric emission of pollutants through decrease in electricity consumption; – Improvement of water quality in the Seret River. Zhytomyr – Improvement of drinking water quality; – Prevention of contamination; – Reduction of water losses; – Reduction of atmospheric emission of pollutants through decrease in electricity consumption; – Improvement in water quality in Teterev River; – Conservation of water resources. Kolomyia – Reduction of water extraction from Prut River; – Reduction of water losses; – Improvement of drinking water quality and prevention of continuous contamination; – Reduction of atmospheric emission of pollutants through decrease in electricity consumption. 6.2 Adverse Environmental Impacts Due to the nature of rehabilitation sub-projects, the common potential negative environmental impacts of the sub-projects during demolition and construction, as well as during the operational phases are described below. Demolition and Construction phase Pollution of surface water at the construction and demolition sites Surface water can be contaminated by accidental spills and leaks from the machinery, and can be contaminated with suspended particles during the reconstruction works on/near the surface water body. Soil and ground water pollution and risks to human health from accidental spills and leakages Soil and groundwater can be polluted by accidental spillages, leakages from temporary oil and/or fuel storage and leakages from machinery. Environmental and Social Management Framework for the UIP2 selected water supply and wastewater (WS/WW) sub-projects in Kharkiv, Kirovograd, Kramatorsk, Ternopil, Zhytomyr, Kyiv, Kolomyia and Donetsk Impacts on historical, cultural or religious places or monuments It is not expected that the project will affect any historical, cultural or religious places or monuments. At the same time, in case some sub-projects will have an impact on the sites of cultural heritage, the procedures described in the Law of Ukraine “On Cultural Heritage” No. 1805 -III from 08.06.2000 will be followed and special mitigation measures (i.e. Action Plan for Physical Cultural Resources) developed to avoid or minimize potential negative impacts. Landslips and erosion Improper supporting structures of deep excavations may lead to landslips thus causing risks to workers and nearby structures. Bare ground is prone to land slides in case of heavy rainfalls. Air pollution Air pollution will temporarily be increased locally due to machinery used at the sites and due to increased traffic connected with construction and demolition works. The increase of air pollution is temporary and local, and will not exceed the established standards. Main pollutants will be dust, NO x and CO. Negative impacts on ambient air quality take place mainly in the vicinity of the construction and demolition sites and along the roads leading to these sites. Poor waste management In case construction and demolition waste is not properly transported and disposed, it may cause soil, ground water and surface water pollution at the disposal sites and health hazards along the transportation route. Noise Noise may affect construction workers if they are not using proper individual protective gear thus causing occupational health risks, and may also disturb people living and/or working near the sites. Risk of fires and explosions Risk of fires and explosions can increase especially if necessary public safety measures are not followed. This may lead to injuries of workers and people visiting or passing-by the site. It may also cause damage to property. Increased risk of traffic accidents Intensified traffic of heavy machinery and trucks to and from the construction and demolition sites increases the risk of traffic accidents. Injuries to workers and visitors Workers and visitors may be injured at the construction and demolition sites, if applicable safety and occupational health standards are not followed. Damage to human health due to exposure to asbestos containing materials Old construction materials, pipe insulation may contain asbestos which may affect the workers, especially during demolition activities and also during construction works. The Contractor will make sure that: (a) temporary on-site storage for asbestos-containing waste will be arrange on the construction site to prevent improper handling or use of the material and respective information signs will be put in place, (b) the asbestos- containing material will be disposed in a legal disposal site and mitigation measures to prevent further use or potential pollution (i.e. waste material should be covered by layers of soil at the landfill) are taken, and (c) necessary personal protection gear (i.e. respirator masks, protective glasses, clothing, etc.) are provided. Operational phase Soil and ground water pollution and risks to human health from accidental spills and leakages 25 Environmental and Social Management Framework for the UIP2 selected water supply and wastewater (WS/WW) sub-projects in Kharkiv, Kirovograd, Kramatorsk, Ternopil, Zhytomyr, Kyiv, Kolomyia and Donetsk Soil and groundwater can be polluted by accidental spillages, leakages from temporary oil and/or fuel storage and leakages from machinery. Impacts on historical, cultural or religious places or monuments It is not expected that the project will affect any historical, cultural or religious places or monuments. Air pollution No direct negative impact on air quality is expected, but an indirect effect is expected on the reduction of pollution as a result of energy savings. Potential air pollution from new/reconstructed sludge treatment facilities must be prevented. Noise pollution and impact on vulnerable public institutions Noise levels are not expected to increase. Risk of fires and explosions No fire or explosion risks are expected. Waste management Improper handling and storage (management) of waste (especially hazardous waste) can potentially lead to contamination of soil, groundwater and surface water, as well as can increase human health risks. Wastewater sludge generated by waste water treatment plants is a hazardous waste and may cause serious pollution of surface water, groundwater aquifers and soil. 6.3 Proposed Mitigation Measures The mitigation measures outlined in this section should be undertaken as part of the project implementation process to mitigate potential impact from construction, demolition and operating activities. Construction and demolition phase Soil, ground water and surface water pollution and risks to human health from accidental spills and leakages Surface water can be contaminated by accidental spills and leaks from machinery, and can be contaminated with suspended particles during the reconstruction works on/near the surface water body. The risk of oil/fuel pollution will be minimized by good operation management and site supervision. Machinery will be checked regularly to find possible leaks. Washing of machinery at the sites is not allowed. Waste oil will be collected and stored in special containers located at a designated secure area until final utilization or disposal. In case PCB-containing oil is found, these will be removed in full compliance with the respective regulations on hazardous waste. Transport and disposal of liquid waste materials will be done by licensed waste management operators. Impacts on historical, cultural or religious places or monuments Appropriate clause on chance find procedures will be included in the Contracts in order to obligate the Contractor to exercise due diligence in implementing the mitigation, monitoring and reporting measures specified in Environmental Management Plan and strictly follow the procedures according to Law of Ukraine “On Cultural Heritage” No 1805-III from 08.06.2000 in the event of any chance finds during the works. Landslips and erosion Walls of deep excavations should always be enforced/supported according to relevant technical requirements. Unnecessary removal of vegetation and pavement should be avoided and bare ground planted or paved as soon as possible after closure of the construction or demolition site. Storm water drainage will be arranged before excavation works have commenced. 26 Environmental and Social Management Framework for the UIP2 selected water supply and wastewater (WS/WW) sub-projects in Kharkiv, Kirovograd, Kramatorsk, Ternopil, Zhytomyr, Kyiv, Kolomyia and Donetsk Temporary air pollution Dust and traffic emissions will be minimized by good operation management and site supervision. Dust suppression measures (e.g. water sprinkling) will be applied during long dry periods. Open surfaces at the site and nearby will be cleaned from dust regularly. Workers will be provided with protective masks when necessary. Waste management Scrap metal will be separated from construction and demolition waste for re-use. Hazardous waste (i.e. asbestos-containing materials etc.) is also separated and managed properly according to regulations and instructions on hazardous waste. Disposal of all types of waste will be done only at the designated landfills. Transport and disposal of waste will be performed by a licensed organization in compliance with the respective national and company-level regulations. Noise Works are performed strictly during normal weekday working hours. In the proximity to residential housing the Contractor will operate machinery and undertake works only during specified hours according to local requirements. In case there is a need to carry out works causing higher noise levels at night time, the residents living nearby are notified 10 days in advance. Noise barriers should be installed where appropriate. Workers will be provided with individual protective gear to be used when performing high-level noise works. Recommended noise reduction options are as follows: – selecting equipment with lower sound power levels; – installing silencers for fans; – installing suitable mufflers on engine exhausts and compressor components; – installing acoustic enclosures for equipment casing radiating noise; – installing vibration isolation for mechanical equipment; – limiting the hours of operation for specific pieces of equipment or operations, especially mobile sources operating through vulnerable areas; – reducing project traffic routing through vulnerable areas, wherever possible. Risk of fires and explosions Respective fire protection standards and instructions have to be observed. Regular inspection of the water supply facilities by the respective fire protection authorities will be conducted. Emergency plan in case of fires should be developed. Workers should receive regular training on fire situations and on the use of fire extinguishers. Increased risk of traffic accidents A traffic management plan will be developed and followed for construction and demolition sites. Management plans will include identification of optimal routes and time for construction materials delivery, transportation of construction and demolition waste to disposal sites and so on. If found necessary, traffic will be temporarily diverted and safe speed limits will be established and enforced during the working period. The site will be clearly marked with special signs and/or fences and separated from public areas. Safe passageways will be organized and marked for pedestrians. During the night special lighting will be arrange to prevent accidents. Injuries to workers and visitors Adherence to safety regulations and instructions, including use of individual protective equipment, will be enforced and constantly monitored by the construction or demolition site supervisor. The person responsible for health and safety issues at the company level will take part in monitoring and random on-site checks on a regular basis. 27 Environmental and Social Management Framework for the UIP2 selected water supply and wastewater (WS/WW) sub-projects in Kharkiv, Kirovograd, Kramatorsk, Ternopil, Zhytomyr, Kyiv, Kolomyia and Donetsk Damage to human health due to exposure to asbestos containing materials In case the site is assessed as containing asbestos materials, or if such materials are encountered during the works, workers must wear proper protective equipment, respirator masks being the most important. When asbestos containing structures are demolished, the working area will be isolated – where possible – from adjacent areas using plastic or fabric made covers. Transport and disposal of asbestos-containing waste will be performed by an authorized organization in full compliance with the respective national and company level procedures. Operation phase Soil, ground water and surface water pollution and risks to human health from accidental spills and leakages A proper system to contain spill should be designed. Emergency response equipment to collect spilled material should be on-hand. Appropriate emergency response procedures should be developed. The personnel should have adequate knowledge of how to act in case of oil or fuel spillages and leakages. In addition, the use and maintenance of emergency response equipment should be included in the training. Training and drills simulating emergency situations should be performed regularly. Risk of fires and explosions Respective fire protection standards and instructions have to be observed. Regular inspection of the water supply facilities by the respective fire protection authorities will be conducted. An emergency plan in case of fires must be developed. Workers should receive regular training on fire situations and on the use of fire extinguishers. Improper waste management The waste management plan should be updated regularly. Waste should be separated as much as practical. Waste collection, transport and disposal will be performed by an authorized organization in full compliance with the respective national and company level procedures. Special mitigation measures will be required for safe disposal of waste water treatment sludge and sludge processing for further incineration. These include facility location (with a designated sanitary protection zone) and special engineering features of the sludge infrastructure/ponds (waterproofing of the pond bottom, drainage-filtration equipment, enforcement of embankments etc.) and sludge treatment and incineration (sludge transportation, operation and maintenance of de-watering unit, incineration facility etc.). In addition to that personal protection measures for personnel dealing with sludge handling should be in place and enforced by facility operators. 7 ENVIRONMENTAL AND SOCIAL MANAGEMENT PLANNING Site-specific ESMPs will be prepared by the Utilities with support from the CPMU as part of preparation of the design documentation for specific sub-projects. These ESMPs will provide guidance to the contractors on site- specific environmental impacts and proposed mitigation measures to avoid and/or minimize those impacts. Suggested tentative structure of the ESMP is contained in Annex 1. For simple sub-projects with known small- scale impacts and straightforward mitigation measures the simplified EMP Checklist may be applied (see Annex 2). Besides environmental impacts, any construction works during Project implementation may result in the disturbance of the everyday life of inhabitants and employers, such as through temporary or permanent land acquisition, traffic disturbances or access restrictions. Large-scale activities may cause the temporary or permanent resettlement of the population. The closure for reconstruction of the existing sewage treatment plants, pumping stations, water supply equipment and the reconstruction of pipelines systems can create an inconvenience for residents and public facilities, as well as business associated with water supply and wastewater collection may have their operation disrupted and there may be some restrictions on access and noise. The main activities of the proposed Project which may cause disturbance in everyday life include: 28 Environmental and Social Management Framework for the UIP2 selected water supply and wastewater (WS/WW) sub-projects in Kharkiv, Kirovograd, Kramatorsk, Ternopil, Zhytomyr, Kyiv, Kolomyia and Donetsk  Reconstruction of sewage treatment plants and pipelines, construction of sludge treatment plants, renovation of drinking water supply systems including water intake facilities - temporary traffic increase and possible temporary traffic disruption; increase in noise and air pollution;  Construction of facilities and pipelines - land occupation, economic displacement, relocation of inhabitants;  The grievance mechanism operated by the utilities will be used to register and address grievances that may arise as a result of Project works, including temporary land use. The site-specific environmental and social management plan will provide that a grievance mechanism be established by the Contractor. Disturbance of traffic Traffic disturbances are expected to be temporary and limited to short periods of time. Where the construction works require excavating across streets, temporary alternate routes need to be arranged or temporary bridges constructed. If the works will affect public transport routes, the Utility has to coordinate with the municipality and the traffic operator to define the alternative transport route and inform the public of such route changes in advance. For example, information needs to be posted of changes in the relevant buses, bus stops, on the route affected, on the company’s website and in the public media. Access restrictions As the works will mostly be conducted at utility-owned sites, access restrictions to public services and institutions will be limited. Minor temporary restrictions may be caused where the construction works require excavating across streets. In such cases, the temporary routes must be arranged and the safety of the public be ensured by protective fences and other guidance as needed. Disturbance of business The works may cause disturbance to normal business or other service operations by causing temporary traffic or access restrictions, or by requiring the utilization of alternative routes. As the works will mainly be conducted on Utility sites, no major disturbance is expected. The Utility has to coordinate with the affected business and service operators to limit the disturbance by, where possible, choosing the most suitable time for conducting the works to minimize losses. In the event alternative routes are required, information is to be posted on websites of the Utility and affected companies and in the public media. Resettlement Some of the proposed activities of the Project can require or cause the temporary or permanent physical resettlement of people. Whenever possible, the works must be conducted in the summer season which will cause only limited nuisance for living conditions. Construction works will take place mainly within existing equipment and pipeline and thus will minimize economic displacement. The Project is not expected to have any adverse economic or social impacts. The Project may require permanent acquisition of the municipal land area rented out for business activities. In such cases, relevant substitute land or monetary compensation for the losses will be provided to tenants. However, there may be cases, however, where Project works will temporarily occupy areas used for commercial purposes by informal vendors or used by private citizens for unsolicited parking of their cars. This will lead to temporary relocation of these vendors and cars. The above effects will be mitigated by either providing compensation for the period of disturbance or by finding an alternative place for trade or parking. The period of displacement is supposed to be short. 29 Environmental and Social Management Framework for the UIP2 selected water supply and wastewater (WS/WW) sub-projects in Kharkiv, Kirovograd, Kramatorsk, Ternopil, Zhytomyr, Kyiv, Kolomyia and Donetsk In such cases, according to the Bank's OP/BP 4.12, a Resettlement Plan needs to be drafted by the borrower based on the developed Resettlement Policy Framework. Such plan shall, as a minimum, include the following elements: (a) census survey of displaced persons and valuation of assets; (b) description of compensation and other resettlement assistance to be provided; (c) consultations with displaced people about acceptable alternatives; (d) institutional responsibility for implementation and procedures for grievance redress; (e) arrangements for monitoring and implementation; (f) timetable and budget. Resettlement planning includes early screening, scoping of key issues, the choice of resettlement instrument, and the information required to prepare the resettlement component. The scope and level of detail of the resettlement instruments vary with the magnitude and complexity of resettlement. In preparing the resettlement component, the borrower draws on appropriate social, technical, and legal expertise and on relevant community-based organizations and NGOs. The borrower informs potentially displaced persons at an early stage about the resettlement aspects of the Project and takes their views into account in project design. The Project shall not be considered complete until the objectives of any of the site specific resettlement actions plans produced are considered complete and have been verified by the World Bank and the Borrower. Potential risks to social environment and possible mitigation measures are shown in Table 7.1. Table 7.1. Potential risks to social environment and possible mitigation measures Component Potential Risks Mitigation Measures Social Environment Aesthetics and  Local visual impact  Careful selection and design of Landscape of parts of completed works works, screening of intrusive items. and some intrusions in  Replace lost trees, boundary landscape, loss of trees, structures, etc., re-vegetate work areas. vegetation, etc.  Careful de-commissioning of  Noise, dust, waste, construction areas and disposal of wastes. etc., during and after  See also Soil, Air Quality and construction. Acoustic. Human Health  Health and safety  Appoint experienced contractors. hazards during and after Incorporate safety and environmental construction, including requirements in contract documents. habitants’ access and Provide information on mitigating comfort. measures. Capacity building to  Health impacts from emphasize need for safe working, good hazardous construction supervision, careful planning and materials and untreated scheduling of work, involve communities, wastes. fence hazardous areas.  Correct disposal of waste; training in O&M (operation and maintenance) plans. 30 Environmental and Social Management Framework for the UIP2 selected water supply and wastewater (WS/WW) sub-projects in Kharkiv, Kirovograd, Kramatorsk, Ternopil, Zhytomyr, Kyiv, Kolomyia and Donetsk Component Potential Risks Mitigation Measures Business Temporary risks during Before the start of project implementation constructions works: Project developer must agree with the  problems in employers of certain measures to manufacturing/service reduce/prevent possible risks. process (interruptions in water supply and sewage services);  traffic disturbance & access restrictions;  reduction of financial income;  business resettlement. Implementation of sub-projects will have a wide range of environmental and social implications. In general, successful implementation of the Program will have high socio-economic benefits to the people. Grievance Mechanism It must be emphasized that the risk of complaints and grievances will be reduced to a minimum owing to the fact that affected persons to be displaced will be involved in the evaluation committee and will have an opportunity to reach consensus during joint discussion. Should such consensus not be reached, affected persons may submit prejudicial claims to local authorities against the decisions of the evaluation commission. If potentially affected persons oppose the location of the proposed land or structures, they can register an objection during the discussions and design plan. Once the Resettlement Action Plan (RAP) has been adopted with respect to the relevant land plot, affected persons can negotiate with Utility and local self-governments or executive a compensation for the lease of land prior to the commencement of civil works in the vicinity of the affected land plots. Grievances related to any aspect of the Project will be addressed through negotiation, which will aim at achieving a consensus settlement. Project Affected Persons (PAPs) may follow the procedures outline below: – Grievance will be submitted by the affected person through one of the existing channels for grievances established by the Utility (hot line, written grievance form delivered by post or in person to the office of the utility) and/or the municipality (call-centre, written grievance form delivered by post or in person to the office of the municipal administration). – If no understanding or amicable solution is reached, or affected person does not receive a response, the affected person can appeal to the CPMU. A person has been designated by CPMU to register claims and grievances and attempt to resolve them at the local level. Contact details for this person within CPMU will be shared with PAPs at public meetings and will be included in the RAP. Further record of the grievances shall be performed and submitted to the World Bank at agreed timeframe. – If an affected person is not satisfied with the decision received, he/she can as a last resort appeal to a court of competent jurisdiction. – The grievance procedure shall be introduced at local level during the public hearings of RFP and further public hearings of the Resettlement Action Plan (RAP). The Resettlement Policy Framework (RPF) was jointly elaborated by the CPMU and the Consultant “Komunalprojekts” JSC (Latvia) separately from this document. 31 Environmental and Social Management Framework for the UIP2 selected water supply and wastewater (WS/WW) sub-projects in Kharkiv, Kirovograd, Kramatorsk, Ternopil, Zhytomyr, Kyiv, Kolomyia and Donetsk 8 MONITORING PLAN In order to ensure efficient implementation of the mitigation measures proposed, including the respect of environmental obligations during the project implementation (construction, demolition and operation stage), a Monitoring Plan will be prepared in the framework of the site-specific ESMPs. The format of the Monitoring Plan is contained in Annex 1. A Monitoring Plan has the following objectives:  Verify the compliance with mitigation measures;  Meet the requirements of the national permits;  Ensure that the construction and operation of the sub-projects is not causing impacts that were not previously identified;  Ensure that the construction and operation of the sub-projects is not causing known impacts to a greater significance than predicted;  Identify at an early stage unforeseen adverse effects, and to take remedial action;  Monitor the rehabilitation of the environment post construction. The Monitoring Plan of the social issues is focused on the following objectives:  Build positive relationships between the sub-projects developer and local communities;  Mitigate (or minimize) negative social impacts caused by the sub-projects acc. to the Mitigation Plan;  Optimize potential benefits brought by the sub-projects. The scope of the Monitoring Plan includes aspects specified in Annex 1. The Monitoring Plan will be updated during the Construction phase. Regular local monitoring will be conducted by the regional Water and Waste Water Utilities (Vodokanal), contractors and also by project developer during the operation stage. Local environmental authorities will also perform regular inspections of the water supply facilities during the construction and operation phases. It should also be noted that, according to Ukrainian legislation, it is the facility operator and environmental authorities who bear the cost of local environmental monitoring during facility operation. The World Bank will be informed about the results of the monitoring. 9 DISCLOSURE AND STAKEHOLDER CONSULTATION To ensure effective implementation of the sub-projects, to minimize the implementation risks and to prevent or mitigate potential negative impacts of project activities as well as to increase the benefits of the project, it is necessary to ensure stakeholder involvement to the consultation process of project activity. Stakeholders’ participation was ensured through disclosure of this ESMF in all participating municipalities. The ESMF was publicly disclosed in electronic format at the websites of Minregion, city administrations and utilities (if available) and in hard copy at accessible and convenient place (city administration, office of the utility etc.) in respective municipalities, and the ESMF was opened for comments during 30 days according to Ukrainian legislation. Comments and suggestions on ESMF received after ESMF disclosure were taken into account and reflected in the final version of the ESMF. Site-specific ESMPs will be developed based on this ESMF and disclosed in the sub-project municipalities for soliciting comments and suggestions prior to implementation of the sub-projects. Public consultation meetings will be organized by the participating utilities after a preparation and disclosure of the site-specific ESMPs. The records of the public consultation, including newspaper announcement, minutes, list of attendees, etc. will be appended to the ESMP’s, after which they will be re-disclosed as final. 32 Environmental and Social Management Framework for the UIP2 selected water supply and wastewater (WS/WW) sub-projects in Kharkiv, Kirovograd, Kramatorsk, Ternopil, Zhytomyr, Kyiv, Kolomyia and Donetsk 10 REFERENCES 1. Terms of Reference. Preparation of Environmental and Social Safeguard Documentation for the Second Urban Infrastructure Project Selected Utilities (UIP2). World Bank, November 2013, 31 pages. 2. Project proposal for urban infrastructure project 2 financed by the World Bank through investment loan. Kyiv, 2013, 49 pages. 3. Draft Inception Report, UKR31481, Hydroplan Ingenieur-Gesellschaft mbH, 43 pages. 4. Investment Plan, Reconstruction of Water Intake Facilities and Water Supply Systems in Kolomyia with Implementation of Modern Technologies. Energy-saving in Apartment Buildings. Kolomyia Utilities Enterprise, Kolomyia, 2012, 55 pages. 5. Urban Infrastructure Project - Preparation of Comprehensive Water and Wastewater Feasibility Studies and Priority Investment Plans to be financed by International Financial Organizations in Ukraine. Kharkiv, Kirovograd, Kramatorsk, Ternopil, Zhytomyr and Uzhgorod. Base Line Study Report – Kirovograd. TF N°: TF091769, Project ID N°: P095337. 88 pages. 6. Preparation of Comprehensive Water and Wastewater Feasibility Studies and Priority Investment Plans to be financed by International Financial Organizations in Ukraine. Kharkiv, Kirovograd, Kramatorsk, Ternopil, Zhytomyr and Uzhgorod. TF N°: TF091769, Project ID N°: P095337. Base Line Report – Kramatorsk. Status of October 2013, 136 pages. 7. Preparation of Comprehensive Water and Wastewater Feasibility Studies and Priority Investment Plans to be financed by International Financial Organizations in Ukraine. Kharkiv, Kirovograd, Kramatorsk, Ternopil, Zhytomyr and Uzhgorod. TF N°: TF091769, Project ID N°: P095337. Base Line Report – Ternopil. Status of October 2013, 111 pages. 8. Preparation of Comprehensive Water and Wastewater Feasibility Studies and Priority Investment Plans to be financed by International Financial Organizations in Ukraine. Kharkiv, Kirovograd, Kramatorsk, Ternopil, Zhytomyr and Uzhgorod. TF N°: TF091769, Project ID N°: P095337. Base Line Report – Zhytomir. Status of October 2013, 137 pages. 9. Guidance on EIA. Scoping. European Commission, Office for official publications of the European Communities, Luxembourg, 2001. 10. Information about Water and Sanitation Utility of Kyiv (AK Kyivvodokanal PJSC). Available at - http://vodokanal.Kyiv.ua/ 11. Information about Donetskmiskvodokanal UC Enterprise. Available at - http://wdk.dn.ua/ 12. World Data Center for Geoinformatics and Sustainable Development. Available at - http://wdc.org.ua/en/node/193 13. Збірник "Чисельність наявного населення України на 1 січня 2013 року''. Державна служба статистики України. Київ, 2013. 14. Information on historic and cultural heritage monuments about Kharkiv, Kyiv, Kirovograd, Donetsk, Kramatorsk, Ternopil, Zhytomyr, Kolomyia cities from web pages of the municipalities and related Wikipedia data. 15. Internet Encyclopedia of Ukraine. Available at http://www.encyclopediaofukraine.com/default.asp 16. Information on nature protection areas of Ukraine. Available at - http://www.pzf.in.ua/ 17. Data on average income levels in the subprojects cities. Available at - http://www.ukrstat.gov.ua/ 18. National report on drinking water quality and the condition of drinking water supplying in Ukraine in 2011. Available at - http://wdk.dn.ua/sample-page/ 33 ANNEX 1. SUGGESTED TENTATIVE ESMP STRUCTURE FOR WATER SUPPLY AND WASTEWATER SUB-PROJECTS 1 Brief project background. Objectives of the sub-project 2 Environmental Legislation, relevant to ESMP 3 Summary description of investments under proposed sub-project  Priority Water Supply Investments  Priority Wastewater Investments This section should describe what is involved in terms of physical infrastructure, buildings, other structures (existing and new), works, etc. Priority Water Supply Investments Brief Description of the Project Component 1-Priority Water Supply  Location of the project  Existing land-use on and adjacent to the site, boundaries of the sanitary protection zone (for waste water treatment plants, water intakes, de-ironing facilities, other facilities, if relevant) Potential impacts  Description of construction phase Description of important site-specific environmental features/conditions of the sub-project area that may be negatively affected by the sub-project Water quality, resources and regime (surface water and groundwater)  Soils (in case of land-slide – prone areas reinforcement of walls during earthworks for workers safety)  Air quality (standard impacts during small- to medium-scale construction)  Noise (standard impacts during small- to medium-scale construction) Waste, contaminated soil (standard impacts during small- to medium-scale construction)  Cultural heritage, public objects (buildings, sites) (only if the sub-project affects the site of historic and/or cultural heritage)  Impact on people, human health (standard impacts during small- to medium-scale construction)  Impact on socio-economic development (better service delivery in terms of quality, quantity and reliability of supply, access to better drinking water and sanitation services) NOTE: SIMILAR FORMAT ON POTENTIAL IMPACTS SHOULD BE USED FOR WASTEWATER OR OTHER TYPES OF INVESTMENTS 6 Mitigation Plan* 7 Monitoring Plan * 8 Disclosure and Public Consultations 9 A non-technical summary for the public * Use templates for Mitigation Plan and Monitoring Plan below Mitigation plan Cost to: Institutional Comments Responsibility to: (e.g. nature of the impact) Phase Impact Mitigating Install Operate Install Operate measure Pre-construction phase Construction Operation Decommissioning Monitoring Plan Costs: Responsibility for: Phase What Where How When Why Installation Running Installment Operation parameter the is it to be is it to be is the costs costs (to is to be monitoring monitored/ monitored - parameter operate monitored? is to take type of periodical to be the place? monitoring or monitored monitoring equipment? continuous? (optional)? equipment) Baseline Construct Operate Decommission 35 ANNEX 2. ENVIRONMENTAL AND SOCIAL MANAGEMENT PLAN/CHECKLIST FOR SMALL SCALE CIVIL WORKS General Guidelines for use of ESMP checklist: For low-risk construction projects, such as minor roads rehabilitation works or the construction of bicycle paths, the ECA (Europe and Central Asia) safeguards team developed an alternative ESMP (environmental and social management plan) format to provide an opportunity for a more streamlined approach to mainstreaming the World Bank’s environmental safeguards requirements into projects which (a) are small in scale or by the nature of the planned activities have a low potential environmental impact, (b) are located in countries with well-functioning country systems for environmental assessment and management. The checklist-type format has been developed to ensure that basic good practice measures are recognized and implemented, while designed to be both user friendly and compatible with the World Bank’s safeguards requirements. The ESMP checklist-type format attempts to cover typical key mitigation measures to civil works contracts with small, localized impacts or of a simple, low risk nature. This format provides the key elements of an Environmental Management Plan (ESMP) to meet the minimum World Bank Environmental Assessment requirements for Category B projects under OP/BP 4.01. The intention of this checklist is that it offers practical, concrete and implementable guidance to Contractors and supervising Engineers for simple civil works contracts. It should be completed during the final design phase and, either freestanding or in combination with any environmental documentation produced under national law (e.g. EIA reports), constitute an integral part of the bidding documents and eventually the works contracts. The checklist ESMP has the following sections: Part 1 includes a descriptive part that characterizes the project, specifies institutional and regulatory aspects, describes technical project content, outlines any potential need for capacity building and briefly characterizes the public consultation process. This section should indicatively be up to two pages long. Attachments for additional information may be supplemented as needed. Part 2 includes a screening checklist of potential environmental and social impacts, where activities and potential environmental issues can be checked in a simple Yes/No format. If any given activity/issue is triggered by checking “yes”, a reference to the appropriate section in the table in the subsequent Part C can be followed, which contains clearly formulated environmental and social management and mitigation measures. Part 3 represents the environmental monitoring plan to follow up proper implementation of the measures triggered under Part B. It has the same format as required for MPs produced under standard safeguards requirements for Category B projects. Part 4 contains a simple monitoring plan to enable both the Contractor as well as authorities and the World Bank specialists to monitoring due implementation of environmental management and protection measures and detect deviations and shortcomings in a timely manner. 36 Part 2 and 3 have been structured in a way to provide concrete and enforceable environmental and social measures, which are understandable to non-specialists (such as Contractor’s site managers) and are easy to check and enforce. The ESMP should be included in the BoQ (bill of quantities) and the implementation priced by the bidders. Part 4 has also been designed intentionally simple to enable monitoring of key parameters with simple means and non-specialist staff. CONTENTS Part 1 General Project and Site Information Part 2 Safeguards Information Part 3 Mitigation Measures Part 4 Monitoring Plan 37 PART 1: GENERAL PROJECT AND SITE INFORMATION INSTITUTIONAL & ADMINISTRATIVE Country Project title Scope of project and activity Institutional WB Project Management Local Counterpart and/or Recipient arrangements (Project Team Leader) (Name and contacts) Implementation Safeguard Supervision Local Counterpart Local Inspectorate Contactor Supervision Supervision arrangements (Name and contacts) SITE DESCRIPTION Name of site Describe site location Attachment 1: Site Map [ ]Y [ ] N Who owns the land? Description of geographic, physical, biological, geological, hydrographic and socio-economic context Locations and distance for material sourcing, especially aggregates, water, stones LEGISLATION Identify national & local legislation & permits that apply to project activity PUBLIC CONSULTATION Identify when/where the public consultation process took place INSTITUTIONAL CAPACITY BUILDING Will there be any capacity [ ] N or [ ]Y if Yes, Attachment 2 includes the capacity building program building? 38 PART 2: SAFEGUARDS SCREENING AND TRIGGERS ENVIRONMENTAL /SOCIAL SCREENING FOR SAFEGUARDS TRIGGERS Activity/Issue Status Triggered Actions A. Roads or building rehabilitation [ ] Yes [ ] No If “Yes”, see Section A below B. New construction of small structures or infrastructure [ ] Yes [ ] No If “Yes”, see Section A below C. Impacts on surface drainage system [ ] Yes [ ] No If “Yes”, see Section B below Will the site activity D. Historic building(s) and districts [ ] Yes [ ] No If “Yes”, see Section C below include/involve any E. Acquisition of land1 [ ] Yes [ ] No If “Yes”, see Section D below of the following? F. Hazardous or toxic materials2 [ ] Yes [ ] No If “Yes”, see Section E below G. Impacts on forests and/or protected areas [ ] Yes [ ] No If “Yes”, see Section F below H. Risk of unexploded ordinance (UXO) [ ] Yes [ ] No If “Yes”, see Section G below I. Traffic and Pedestrian Safety [ ] Yes [ ] No If “Yes”, see Section H below 1 Land acquisitions includes displacement of people, change of livelihood encroachment on private property this is to land that is purchased/transferred and affects people who are living and/or squatters and/or operate a business (kiosks) on land that is being acquired. 2 Toxic/hazardous material includes but is not limited to asbestos, toxic paints, noxious solvents, removal of lead paint, etc. 39 PART 3: MITIGATION MEASURES ACTIVITY PARAMETER MITIGATION MEASURES CHECKLIST 0. General Conditions Notification and Worker Safety (a) The local construction and environment inspectorates and communities have been notified of upcoming activities. (b) The public has been notified of the works through appropriate notification in the media and/or at publicly accessible sites (including the site of the works). (c) All legally required permits have been acquired for construction and/or rehabilitation. (d) The Contractor formally agrees that all work will be carried out in a safe and disciplined manner designed to minimize impacts on neighbouring residents and environment. (e) Workers’ PPE will comply with international good practice (always hardhats, as needed masks and safety glasses, harnesses and safety boots). (f) Appropriate signposting of the sites will inform workers of key rules and regulations to follow. A. General Rehabilitation Air Quality (a) During excavation works dust control measures shall be employed, e.g. by spraying and moistening the ground. and/or Construction Activities (b) Demolition debris, excavated soil and aggregates shall be kept in controlled area and sprayed with water mist to reduce debris dust. (c) During pneumatic drilling or breaking of pavement and foundations dust shall be suppressed by ongoing water spraying and/or installing dust screen enclosures at site. (d) The surrounding environment (side walks, roads) shall be kept free of soil and debris to minimize dust. (e) There will be no open burning of construction/waste material at the site. (f) All machinery will comply with Ukrainian emission regulations, shall well maintain and service and there will be no excessive idling of construction vehicles at sites. Noise (a) Construction noise will be limited to restricted times agreed to in the permit. (b) During operations the engine covers of generators, air compressors and other powered mechanical equipment shall be closed, and equipment placed as far away from residential areas as possible. Water Quality (a) The site will establish appropriate erosion and sediment control measures such as e.g. hay bales and / or silt fences to prevent sediment from moving off site and causing excessive turbidity in canalization and nearby streams and rivers. 40 Waste management (a) Waste collection and disposal pathways and sites will be identified for all major waste types expected from excavation, demolition and construction activities. (b) Mineral construction and demolition wastes will be separated from general refuse, organic, liquid and chemical wastes by on-site sorting and stored in appropriate containers. (c) Construction waste will be collected and disposed properly by licensed collectors. (d) The records of waste disposal will be maintained as proof for proper management as designed. (e) Whenever feasible Contractor will reuse and recycle appropriate and viable materials (except when containing asbestos). B. Impacts on surface drainage Water Quality (a) There will be no unregulated extraction of groundwater, nor uncontrolled discharge of process waters, cement slurries, or any other system contaminated waters into the ground or adjacent streams or rivers; the Contractor will obtain all necessary licenses and permits for water extraction and regulated discharge into the public wastewater system. (b) There will be proper storm water drainage systems installed and care taken not to silt, pollute, block or otherwise negatively impact natural streams, rivers, ponds and lakes by construction activities. (c) There will be procedures for prevention of and response to accidental spills of fuels, lubricants and other toxic or noxious substances. (d) Construction vehicles and machinery will be washed only in designated areas where runoff will not pollute natural surface water bodies. 41 ACTIVITY PARAMETER MITIGATION MEASURES CHECKLIST C. Historic building(s) Cultural Heritage (a) If construction works take place close to a designated historic structure, or are located in a designated historic district, notification shall be made and approvals/permits be obtained from local authorities and all construction activities planned and carried out in line with local and national legislation. (b) It shall be ensured that provisions are put in place so that artefacts or other possible “chance finds” encountered in excava tion or construction are noted and registered, responsible officials contacted, and works activities delayed or modified to account for such finds. D. Acquisition of land Land Acquisition (c) If expropriation of land was not expected but is required, or if loss of access to income of legal or illegal users of land was not expected Plan/Framework but may occur, that the Bank’s Task Team Leader shall be immediately consulted. (d) The approved Land Acquisition Plan/Framework (if required by the project) will be implemented. E. Toxic materials Asbestos management (a) If asbestos is located on the project site, it shall be marked clearly as hazardous material. (b) When possible the asbestos will be appropriately contained and sealed to minimize exposure. (c) The asbestos prior to removal (if removal is necessary) will be treated with a wetting agent to minimize asbestos dust. (d) Asbestos will be handled and disposed by skilled & experienced professionals. (e) If asbestos material is be stored temporarily, the wastes should be securely enclosed inside closed containments and marked appropriately. Security measures will be taken against unauthorized removal from the site. (f) The removed asbestos will not be reused. Toxic/hazardous waste (a) Temporarily storage on site of all hazardous or toxic substances will be in safe containers labelled with details of composition, properties management and handling information. (b) The containers of hazardous substances shall be placed in a leak-proof container to prevent spillage. (c) The wastes shall be transported by specially licensed carriers and disposed in a licensed facility. (d) Paints with toxic ingredients or solvents or lead-based paints will not be used. 42 F. Affected forests, wetlands Ecosystem protection (a) All recognized natural habitats, wetlands and protected areas in the immediate vicinity of the activity will not be damaged or exploited, all and/or protected areas staff will be strictly prohibited from hunting, foraging, logging or other damaging activities. (b) A survey and an inventory shall be made of large trees in the vicinity of the construction activity, large trees shall be marked and cordoned off with fencing, their root system protected, and any damage to the trees avoided. (c) Adjacent wetlands and streams shall be protected from construction site run-off with appropriate erosion and sediment control feature to include by not limited to hay bales and silt fences. (d) There will be no unlicensed borrow pits, quarries or waste dumps in adjacent areas, especially not in protected areas. G. Risk of unexploded Hazard to human health and (a) Before start of any excavation works the Contractor will verify that the construction area has been checked and cleared regarding UXO by ordinance (UXO) safety the appropriate authorities. H. Traffic and pedestrian safety Direct or indirect hazards to (b) In compliance with national regulations the Contractor will insure that the construction site is properly secured and construction related public traffic and pedestrians traffic regulated. This includes but is not limited to: by construction activities  Signposting, warning signs, barriers and traffic diversions: site will be clearly visible and the public warned of all potential hazards.  Traffic management system and staff training, especially for site access and near-site heavy traffic. Provision of safe passages and crossings for pedestrians where construction traffic interferes.  Adjustment of working hours to local traffic patterns, e.g. avoiding major transport activities during rush hours or times of livestock movement.  If required, active traffic management by trained and visible staff at the site for safe passage for the public.  Ensuring safe and continuous access to all adjacent office facilities, shops and residences during construction. 43 PART 4: MONITORING PLAN (POPULATED WITH EXAMPLES, TO BE ADAPTED AS NEEDED) What Where How When Why Cost Who (Is the (Is the (Is the (Define the (Is the (if not (Is Phase parameter to parameter to parameter to frequency / parameter included in responsible be be be or being project for monitored?) monitored?) monitored?) continuous?) monitored?) budget) monitoring?) site access at the site check if design before launch of safety of marginal, within Contractor, and project construction general public budget Engineer traffic planning management foresee diligent procedures at the site timely detection of waste availability of disposal waste disposal before start of bottlenecks marginal, within facilities visual / rehabilitation budget in site vicinity analytical if in works During activity doubt (prepare special preparation on site before approval account for hazardous to use materials public and analyses at waste inventory workplace CPMU?) (asbestos) visual / health and Contractor’s research in safety store/building toxic materials yard databases construction material quality control (e.g. paints / solvents) on site and in dust generation immediate visual daily avoidance of marginal, within Contractor, neighbourhood, public nuisance budget Engineer close to consultation of potential locals noise emissions impacted daily residents at discharge visual, avoidance of During activity points or in analytical if daily / negative waste and continuous supervision storage facilities suspicious impacts on wastewater ground/ surface types, quality count of waste waters and volumes transports off site, check flow ensuring proper rates and runoff daily / waste routes for continuous management surface wastewater and disposal drainage soundness ANNEX 3. ESMF DISCLOSURE ON THE WEBSITES FOR PUBLIC COMMENTS MINREGION (14.01.2014) 45 KYIV (13.01.2014) 46 47 KOLOMYIA (13.01.2014) 48 49 KRAMATORSK (14.01.2014) 50 ZHYTOMYR (14.01.2014) 51 52 DONETSK (15.01.2014) 53 KIROVOGRAD (15.01.2014) 54 KHARKIV (15.01.2014) 55 56 TERNOPIL (15.01.2014) 57 58