Page 1 INTEGRATED SAFEGUARDS DATASHEET APPRAISAL STAGE I. Basic Information Date prepared/updated: 08/04/2009 Report No.: AC4345 1. Basic Project Data Country: Kazakhstan Project ID: P114766 Project Name: Kazakhstan Moinak Electricity Transmission Project Task Team Leader: Istvan Dobozi Estimated Appraisal Date: May 13, 2009 Estimated Board Date: September 15, 2009 Managing Unit: ECSSD Lending Instrument: Specific Investment Loan Sector: Power (100%) Theme: Infrastructure services for private sector development (100%) IBRD Amount (US$m.): 48.00 IDA Amount (US$m.): 0.00 GEF Amount (US$m.): 0.00 PCF Amount (US$m.): 0.00 Other financing amounts by source: Borrower 21.00 21.00 Environmental Category: B - Partial Assessment Simplified Processing Simple [] Repeater [] Is this project processed under OP 8.50 (Emergency Recovery) or OP 8.00 (Rapid Response to Crises and Emergencies) Yes [ ] No [X] 2. Project Objectives The primary project objective is to increase and improve the supply of electricity to business enterprises and households in southern Kazakhstan in an economically and environmentally sustainable manner. This objective will be achieved by increasing the capacity of the power transmission system to allow the evacuation of clean hydroelectricity generated by the Moinak HPP to southern Kazakhstan. 3. Project Description Key components: 1. Construction of a 220 kV Overhead Transmission Line (OHTL) from Moinak Hydropower Plant (HPP) to Shelek Substation [SS] (about 97 km) 2. Construction of a 220 kV OHTL from Moinak HPP to Robot SS (about 225 km) 3. Construction of outdoor switchyard at Moinak HPP 4. Reconstruction of Shelek SS and Robot SS The above power line configuration differs from that provided at appraisal for legal reasons. There has been publicly voiced concern that routing the power lines across the Charyn and Altyn-Emel national parks (the preferred routing option in the feasibility Page 2 study) would violate the law of the Republic of Kazakhstan (ROK) on Specially Protected Natural Areas (SPNAs). The Bank has raised this matter with the Kazakhstan Electricity Grid Operating Company (KEGOC), the Borrower, and has sought legal clarifications from several competent agencies of the ROK. KEGOC has been advised to seek a cost-effective solution that completely bypasses the national parks. In a letter dated June 17, 2009, KEGOC informed the Bank that the design company "Energostroyproyekt" is still working on the selection of the line routes connecting the Moinak HPP with two existing SSs, but based on previous instructions from KEGOC only corridors that bypass the above-mentioned national parks are being considered. This is confirmed by the maps attached to the letter indicating the new line routes. Therefore, these line corridors are acceptable to the Bank. Nevertheless, as a legal safeguard, the Loan Agreement will include a provision prohibiting the borrower to route the lines, during construction, across any part of the national parks. 4. Project Location and salient physical characteristics relevant to the safeguard analysis The route of the OHTL Moinak HPP - Shelek SS is 97 km long, passing through the territory of Enbekshikazakhsky raion of Almaty oblast used as grazing land. The route of the Moinak HPP - Robot SS is 225 km long, passing through the territory of Enbekshikazakhsky, Ilisky and Talgarsky raions of Almaty oblast used as grazing land. The routes of the OHTLs do not cross any part of the Charyn or Amtyl-Emel SPNAs (national parks) and this will be covenanted in the Loan Agreement. Projected OHTL routes cross a number of rivers. Long-span towers at river crossing will be erected outside of river water protection zone. Civil works at Shelek SS and Robot SS will be carried out within existing fence lines. Limited amount of land will need to be expropriated for the Moinak outdoor switchyard and the OHTL towers. 5. Environmental and Social Safeguards Specialists Mr Bernard Baratz (ECAVP) Ms Janna Ryssakova (ECSS4) Page 3 6. Safeguard Policies Triggered Yes No Environmental Assessment (OP/BP 4.01) X Natural Habitats (OP/BP 4.04) X Forests (OP/BP 4.36) X Pest Management (OP 4.09) X Physical Cultural Resources (OP/BP 4.11) X Indigenous Peoples (OP/BP 4.10) X Involuntary Resettlement (OP/BP 4.12) X Safety of Dams (OP/BP 4.37) X Projects on International Waterways (OP/BP 7.50) X Projects in Disputed Areas (OP/BP 7.60) X II. Key Safeguard Policy Issues and Their Management A. Summary of Key Safeguard Issues 1. Describe any safeguard issues and impacts associated with the proposed project. Identify and describe any potential large scale, significant and/or irreversible impacts: Environmental Assessment (OP/BP 4.01) The site of the switchyard at the Moinak HPP is in a remote rugged area near the Charyn River. There are no significant environmental issues during construction other than the normal issues of dust, noise and disposal of construction wastes as well as protection of the Charyn River water quality during construction.The Ministry of Environment's final feasibility study-level assessment concluded that the proposed project will have "no significant impact" on the environment. Reconstruction works at the Shelek and Robot SSs will be confined to the boundaries of existing fence lines. During construction of the OHTLs there are no significant environmental issues other than the normal issues of dust, noise and disposal of construction wastes. The routes and rights-of-way to be selected will not cross any known structures or sites of cultural significance or areas of proven mineral reserves. Land use along these routes is typically for grazing or agricultural production. In addition, to protect surface water quality, special attention must be paid where transmission line routes cross rivers or streams and where worker construction camps are sited. The routes to be selected will not interfere with any migratory bird flight patterns or other ecologically sensitive areas. During operation, the chief issue is noise (corona discharge) and public health and safety from the high electric field strength. An Environmental Management Plan (EMP) was prepared and disclosed in the Bank's InfoShop (January 16, 2009) and KEGOC's website (December 29, 2008). An updated EMP, reflecting the new power line configuration, was prepared and disclosed on KEGOC's website and in InfoShop on June 26, 2009. Involuntary Resettlement (OP/BP 4.12) Civil works at the Shelek SS and Robot SS will be carried out within existing fence lines, thus not requiring land acquisition. Limited amount of land will, however, need to be expropriated for the Moinak HPP switchyard (about 4 hectares) and the transmission towers (about 9.5 hectares). The exact area of the switchyard and the number of towers Page 4 that will be built are not known precisely at this point in time, but will follow from the detailed working designs for the power lines during the first year of implementation(after selection of the turn-key contractor in or around July 2010). Since the exact scope and incidence of all land acquisition requirements cannot be precisely assessed now, a Land Acquisition Policy Framework (LAPF) acceptable to the Bank was prepared by KEGOC and disclosed as a condition of appraisal. An updated LAPF, reflecting the new SS and new line configuration, will be disclosed shortly. Once the final working designs for the switchyard and the transmission lines are completed by the turnkey contractor and approved by the competent GOK agencies, KEGOC will prepare a specific Land Acquisition Plan (LAP) and submit it to the Bank for approval before proceeding with construction. No physical displacement of people will take place under the project. Land will be acquired by KEGOC through a special government land fund with compensation to be provided to the affected private owners/users. Safety of Dams (OP/BP 4.37) The Moinak transmission component will evacuate power from the Moinak HPP that is currently under construction. Since the transmission lines and the outdoor switchgear are linked to the integrity of the Moinak HPP, this policy is triggered as it represents a potential reputational risk to the Bank. The safety of the dam is of particular importance. The Bank engaged an independent dam safety expert to perform a due diligence assessment of the Moinak dam#s compliance with OP/BP 4.37. The assessment concluded that the dam was designed by qualified engineers and an experienced firm. The drawings are of high quality with sufficient detail and the quantitative calculations were done in an appropriate manner. Several issues (Emergency Preparedness Plan, Operations & Maintenance Plan, Independent Panel of Experts) were raised as part of the due diligence assessment for which the Bank received satisfactory clarifications from KazKuat JSC, sponsor of the Moinak HPP. 2. Describe any potential indirect and/or long term impacts due to anticipated future activities in the project area: None 3. Describe any project alternatives (if relevant) considered to help avoid or minimize adverse impacts. As noted above, the originally proposed routing of the OHTLs has been adjusted to completely bypass the SPNAs. 4. Describe measures taken by the borrower to address safeguard policy issues. Provide an assessment of borrower capacity to plan and implement the measures described. KEGOC's institutional capacity for implementing requirements specified in the EMP and LAPF is satisfactory. The company has had a decade-long relationship with the Bank under two electricity transmission projects. In both cases, KEGOC's environmental management performance has been found to be highly satisfactory and in full compliance with requirements specified in the project EMPs. A comprehensive EMP was prepared, which may need to be updated for the detailed working designs once these are approved. Page 5 Once the exact land areas are defined on the basis of detailed working designs, a specific LAP will be prepared and submitted to the Bank for approval. 5. Identify the key stakeholders and describe the mechanisms for consultation and disclosure on safeguard policies, with an emphasis on potentially affected people. On November 14, 2008, in accordance with Kazakhstani environmental law (Environmental Code, Rules for Conducting Public Hearings), KEGOC conducted public hearings in Almaty with the participation of public interest groups, including ecological associations. The public hearings were announced in the widely read national newspaper "Kazakhstanskaya Pravda" (October 23, 2008) which included the date and venue of the hearings. KEGOC made special transportation arrangements for concerned local groups and NGOs to attend. Documentation of the planned OHTL construction was published in several newspaper articles (Kazakhstanskaya Pravda, December 22, 2007, Egemen Kazakhstan, February 13, 2008 and Kazakhstanskaya Pravda, February 13, 2008). In June 2009, a local design company has developed the preliminary line routing for the two transmission lines (pre-final design stage), Moinak HPP - Shelek SS and Moinak HPP - Robot SS. After formal approval by the competent GOK agencies of this new line routing, the survey, geological and hydrological works will be performed by a company to be engaged by KEGOC during the first year of project implementation. Results of this work will be inputted into the detailed working designs for the OHTLs (developed by the turnkey contractor to be selected). The detailed designs should have a section on EIA, which is subject to the state environmental expertise. The detailed design stage includes the requirement of holding another public consultation for the project. As some further refinements of the EIA and EMP are expected with the completion of detailed design work, the revised documents will be redisclosed if and when significant changes have been made. The EMP originally submitted on January 26, 2009, was deposited in InfoShop on June 26, 2009 with updated information. B. Disclosure Requirements Date Environmental Assessment/Audit/Management Plan/Other: Was the document disclosed prior to appraisal? Yes Date of receipt by the Bank 12/23/2008 Date of "in-country" disclosure 12/29/2008 Date of submission to InfoShop 01/26/2009 For category A projects, date of distributing the Executive Summary of the EA to the Executive Directors Resettlement Action Plan/Framework/Policy Process: Was the document disclosed prior to appraisal? Yes Date of receipt by the Bank 12/23/2008 Date of "in-country" disclosure 12/29/2008 Date of submission to InfoShop 04/20/2009 Page 6 Indigenous Peoples Plan/Planning Framework: Was the document disclosed prior to appraisal? Date of receipt by the Bank Date of "in-country" disclosure Date of submission to InfoShop Pest Management Plan: Was the document disclosed prior to appraisal? Date of receipt by the Bank Date of "in-country" disclosure Date of submission to InfoShop * If the project triggers the Pest Management and/or Physical Cultural Resources, the respective issues are to be addressed and disclosed as part of the Environmental Assessment/Audit/or EMP. If in-country disclosure of any of the above documents is not expected, please explain why: C. Compliance Monitoring Indicators at the Corporate Level (to be filled in when the ISDS is finalized by the project decision meeting) OP/BP/GP 4.01 - Environment Assessment Does the project require a stand-alone EA (including EMP) report? Yes If yes, then did the Regional Environment Unit or Sector Manager (SM) review and approve the EA report? Yes Are the cost and the accountabilities for the EMP incorporated in the credit/loan? Yes OP/BP 4.12 - Involuntary Resettlement Has a resettlement plan/abbreviated plan/policy framework/process framework (as appropriate) been prepared? Yes If yes, then did the Regional unit responsible for safeguards or Sector Manager review the plan? Yes OP/BP 4.37 - Safety of Dams Have dam safety plans been prepared? N/A Have the TORs as well as composition for the independent Panel of Experts (POE) been reviewed and approved by the Bank? N/A Has an Emergency Preparedness Plan (EPP) been prepared and arrangements been made for public awareness and training? N/A The World Bank Policy on Disclosure of Information Have relevant safeguard policies documents been sent to the World Bank's Infoshop? Yes Have relevant documents been disclosed in-country in a public place in a form and language that are understandable and accessible to project-affected groups and local NGOs? Yes All Safeguard Policies Have satisfactory calendar, budget and clear institutional responsibilities Yes Page 7 been prepared for the implementation of measures related to safeguard policies? Have costs related to safeguard policy measures been included in the project cost? Yes Does the Monitoring and Evaluation system of the project include the monitoring of safeguard impacts and measures related to safeguard policies? Yes Have satisfactory implementation arrangements been agreed with the borrower and the same been adequately reflected in the project legal documents? Yes D. Approvals Signed and submitted by: Name Date Task Team Leader: Mr Istvan Dobozi 06/23/2009 Environmental Specialist: Mr Bernard Baratz 06/26/2009 Social Development Specialist Ms Janna Ryssakova 05/04/2009 Additional Environmental and/or Social Development Specialist(s): Approved by: Regional Safeguards Coordinator: Ms Agnes I. Kiss 06/22/2009 Comments: Sector Manager: Mr Ranjit J. Lamech 06/26/2009 Comments: