INTEGRATED SAFEGUARDS DATA SHEET APPRAISAL STAGE Report No.: ISDSA8725 Public Disclosure Copy Date ISDS Prepared/Updated: 29-Sep-2014 Date ISDS Approved/Disclosed: 29-Sep-2014 I. BASIC INFORMATION 1. Basic Project Data Country: Uzbekistan Project ID: P146328 Project Name: Pap-Angren Railway (P146328) Task Team Jacques Bure Leader: Estimated 30-Sep-2014 Estimated 27-Jan-2015 Appraisal Date: Board Date: Managing Unit: GTIDR Lending Investment Project Financing Instrument: Sector(s): Railways (90%), Other domestic and international trade (10%) Theme(s): Trade facilitation and market access (100%) Is this project processed under OP 8.50 (Emergency Recovery) or OP No 8.00 (Rapid Response to Crises and Emergencies)? Financing (In USD Million) Total Project Cost: 1709.13 Total Bank Financing: 195.00 Public Disclosure Copy Financing Gap: 0.00 Financing Source Amount Borrower 1164.13 International Bank for Reconstruction and Development 195.00 China Export Import Bank 350.00 Total 1709.13 Environmental A - Full Assessment Category: Is this a No Repeater project? 2. Project Development Objective(s) The proposed project development objectives are to reduce transport costs and to increase transport capacity through the construction of a reliable rail link between the Uzbek part of the Ferghana Valley and the rest of Uzbekistan. 3. Project Description Page 1 of 10 The proposed project will support UTY to build a single 124 km track rail link between Angren and Pap including a 19.2 km rail tunnel through the Kamchik Pass. It will also support the reconstruction by UzEnergo (UZE) of Obihayot power substation and the construction of power distribution lines Public Disclosure Copy from Obi-hayot power substation to traction power substations (TPS) at Koshminar and Pap, and from power transmission line Angren - Obi-hayot to TPS Sardala to secure reliable power supply for the new railway line. The government and UTY will provide the bulk of the financing for the project. The Bank will finance the signaling, electrification of the railway line, electric power distribution line, track maintenance equipment, and technical assistance to UTY. Component 1. Rail Main Infrastructure (estimated total cost US$1,396.77million): UTY is responsible for the construction of the new railway line main infrastructure including ballast, rail, bridges and a 19.2 km long tunnel. The construction work was initiated in June 2013 and commissioning is planned by July 2016. The proposed loan is not financing this portion of the project. Component 2. Rail Electrification, Signaling, Track Maintenance and Railway video surveillance system (estimated total cost US$267.5 million, of which IBRD US$152 million): This component will finance four investments to equip and maintain the new railway line as follows: • Signaling and Communications (estimated cost US$46 million). The component will finance a microprocessor based train control system with fiber optic-based communications. The system would be controlled from UTY’s existing dispatching center in Tashkent. UTY will carry out the related civil works (buildings, cable ducts and cable laying). • Electrification (estimated cost US$30 million). The component will finance (a) construction of three traction substations and (b) a SCADA system for optimizing energy use. UTY will construct the catenary structure and install the cabling. • Track Maintenance Equipment (estimated cost US$36 million). Track maintenance equipment will be used to maintain the new Pap-Angren line and will consist of cranes, rods, emergency and security trucks, and other machinery and maintenance equipment. Public Disclosure Copy • Railway video surveillance and broadcasting system (estimated cost US$20 million): The component will finance surveillance system, and the broadcasting on any telecommunication channels to inform railway users. A US$20 million contingency is added to this component and embedded in the financing of the project. Component 3. Power Distribution Line (estimated total cost US$36.86million of which IBRD US$35 million): This component will finance three investments to bring energy to the new railway line as follows: • Dismantling of overhead power lines: (estimated IBRD financing US$2.6 million), including the removal of Angren-Obihayot 220kV power line of total 8.8 km length, of which 6 km in Tashkent region and 2.8 km in Namangan region. • Equipment for the installation of new power lines (estimated IBRD financing US$13.3 million), including the procurement of concrete structures for 110-220kV power lines, respective materials and communication equipment, protection relay, metering and controlling instruments, general power equipment and others. • Construction works and commissioning of new power lines (estimated IBRD financing US $17.6 million). The sub-component will finance the reconstruction of the 220 kV substation Obi- hayot and the construction of 15 km and 48.8 km of 110kV power distribution lines to connect Obi- hoyot power substation with TPSs Koshminar and Pap, and 5 km of 220kV power distribution line to Page 2 of 10 connect 220 kV power transmission line Angren - Obi-hayot with TPS Sardala • Other capital costs associated with construction works (estimated IBRD financing US 1.5 million). Public Disclosure Copy Component 4. Technical Assistance to UTY for railway construction and long-term plan (estimated total cost US$6.7 million, which will be financed by IBRD): This component will finance technical assistance to be provided to UTY. It will provide UTY with options on how to better meet current and future transportation needs, maintain its market share in freight and passenger transportation and increase efficiency of its operations during the period of 20-25 years. Component 5. Technical Assistance to UTY for improving railway logistics in the Ferghana Valley and Angren region (estimated total cost US$1.00 million, which will be financed by IBRD): This component will finance technical assistance to be provided to UTY. It will support UTY in introducing sound logistics arrangements to allow the Pap-Angren railway link to reach its full operational potential. Component 6. Implementation support (estimated total cost US$0.3 million, which will be financed by IBRD): This component will finance implementation support to UTY and UZE. 4. Project location and salient physical characteristics relevant to the safeguard analysis (if known) The railway start/end points are cities of Angren and Pap. Angren is located in Tashkent oblast and has population of 127 thousand people. The city used to be a center of Uzbek coal industry. Pap is a rayon center with population of 25 thousand people, located inthe North-West of Fergana Valley. Within Angren, the project will use the right of way of the existing railroad and new construction “greenfield” section of the project will start from the coal mining area to the East of Angren. The Northern section of the railway (i.e. section between Angren and tunnel portal at km 36) will go along Akhangaran water reservoir and will cross/overpass (bridge or embankment) at least one of the reservoir's small bays. The alignment runs through Akhangaran river canyon/ravine with very diverse Public Disclosure Copy and rough topographic profile. The tunnel will start at km 36 and end at km 57 nearby the river Sansalak-Sai. Between km 63 and km 85 the road will go along Gulistan, Altynkan and Chadak villages and the territory of Almalyk ore mining works (non-ferrous metals). Within the Southern section (i.e. section between Chadak and Pap) the railroad will go through agricultural land. Starting km 95, the rail road will enter agricultural non-arable (currently classified as pastures). The last 20 km of the railroad alignment before entering Pap will be through agricultural arable land. The primary assessment of PAP assets was carried out in December 2013- May 2014 and in Akhangaran raion in January – August 2014 in Pap raion. The available data suggests that approximately 270 households including farms plots and a few commercial entities are affected. The Resettlement Action Plan was developed to clearly identify existing gaps between proposed social impact mitigation measures, including ongoing resettlement and land acquisition and the gap with the Bank's safeguards policies. 5. Environmental and Social Safeguards Specialists Alexei Slenzak (GENDR) Nicolas Perrin (GSURR) Lola Ibragimova (GSURR) Page 3 of 10 6. Safeguard Policies Triggered? Explanation (Optional) Environmental Assessment OP/ Yes The EIA (Statement on Environmental Impacts in Public Disclosure Copy BP 4.01 Uzbekistan) for railway and tunnel was prepared by the Design institute Boshtransloiha. Following the recommendations of the State Expert Review and the Bank, the EIA was updated. The Client has also prepared the EMF: independent consulting company "AL MAR CONSULTING" LLC was hired. The advanced draft of the EIA and EMF acceptable to the Government of Uzbekistan and the World Bank were publicly disclosed and consulted upon with interested stakeholders. The EIA and EMF cover the following issues: (a) management of radioactivity risk, (b) mitigation of negative environmental impacts in sensitive areas (i.e. pollution of rivers and streams, water protection zones), (c) management of borrow pits and sites for waste material, (d) management of geological risks and emergency situations. Site-specific EIAs and EMPs are being and will be prepared by the contractors for specific sections of the alignment. These EMPs will be disclosed at specific project locations and public consultations organized (for sites in the proximity of villages) prior to works start. The EIA for transmission line will be prepared by Boshtransloiha. Based on this EIA, Public Disclosure Copy the EMP for transmission line will be prepared, disclosed and consulted upon. An Environmental Audit of works carried out previously is being undertaken. Previous visits to ongoing construction sites by the team’s environmental specialist indicated that there were no significant/ irreversible impacts that would require a suspension of the works, but did identify some needed improvements. The Environmental Audit will review progress in these areas and provide specific recommendations for remedial measures in an Environmental Action Plan. Both Environmental Audit and Environmental Action Plan will be included in the final EMF and disclosed by the Client. Natural Habitats OP/BP 4.04 No Forests OP/BP 4.36 No Page 4 of 10 Pest Management OP 4.09 No Public Disclosure Copy Physical Cultural Resources OP/ Yes OP 4.11 was triggered. The alignment goes BP 4.11 through the historic/cultural heritage site “Settlement Chilhudzhra” (IV century BC – IV century AC) nearby Pap. This historic site was identified during archaeological surveys in 2012. Limited archaeological works on this site were done in 2013 and the site was registered in the National Registry of Historic Monuments. The works on the alignment in the fall of 2013 resulted in some damage to the site. The alignment makes a cut through the central section of the historic site.The dimensions of the cut are 50 m (width) x 120 m (length). Approximately 10 % of the historic area was damaged. When this became known, UTY was required The Bank required from the UTY to stop the works to prevent further damage and prepare the Action Plan for Physical Cultural Resources. Such Plan was prepared and consulted upon/agreed with authorities responsible for protection of historic and cultural heritage. The site Chilkhudzhra will be surveyed by specialists in archeology according to legislation of Uzbekistan. If the survey indicates the need for any additional protection measures for other historic sites, these will be put in place before any additional works Public Disclosure Copy are carried out that could impact these sites. The Action Plan requires that the alignment should avoid going through historic and cultural sites as much as possible. Indigenous Peoples OP/BP 4.10 No Involuntary Resettlement OP/BP Yes The project requires land acquisition (both 4.12 residential and agricultural land) and resettlement. UTY finalized a Resettlement Policy Framework (RPF) following the review by the Bank. Prior to the preparation of the RAP some land acquisition/ resettlement was carried out by the Borrower and the Resettlement audit was carried out to identify retroactive compensation. In cases of discrepancies between the national legislation and the World Bank safeguard policies regarding compensations in general, and those to be paid retroactively to the affected people, the RAP Page 5 of 10 includes provisions which obligate that the World Bank safeguard policies will prevail. A Resettlement Action Plan (RAP), for areas Public Disclosure Copy where the design of the railway line and structures is sufficiently advanced, was completed on August 29, 2014. The RPF and RAP were disclosed and consulted upon with the project affected people, local administration, local makhalla representatives and community associations on September 14-15, 2014. An updated RAP and minutes of the consultations were finalized on September 24, 2014. Safety of Dams OP/BP 4.37 No Projects on International No The team has extensively discussed with the Waterways OP/BP 7.50 Uzbekistan Railway Company (UTY) the applicability of OP 7.50 for the Project regarding (i) water abstraction from a tributary of an international waterway being planned and/or occurred, and (ii) pollution or other downstream impacts on a tributary of an international waterway due to river channelization/ straightening associated with the project activities. The UTY formally confirmed that no abstraction of water from the Akhangaran and Chadak Rivers (tributaries of Syrdarya River that has a status of international waterway) is planned or necessary. The sources of water supply for all Public Disclosure Copy proposed construction activities of the Project are reported to be existing wells (stations Sardala, Razezd 2, Razezd 3 and Razezd 4), water tanks (stations Razezd 1 and Temirjulobod), and existing piped town water supply (stations Angren, Uglesborochnaja and Pap). With this information provided, it is concluded that the policy on international waterways OP7.50 is not triggered. Also, the channelization/straightening activities envisaged under the Project would not trigger OP 7.50. The EMF and project documents reflect this accordingly. The team will work closely with the Client to monitor and supervise the issue. Projects in Disputed Areas OP/BP No 7.60 II. Key Safeguard Policy Issues and Their Management A. Summary of Key Safeguard Issues Page 6 of 10 1. Describe any safeguard issues and impacts associated with the proposed project. Identify and describe any potential large scale, significant and/or irreversible impacts: The proposed alignment of the railway goes through diverse plain and mountainous terrain and Public Disclosure Copy both environmental (Environmental Assessment, OP 4.01) and social (Involuntary Resettlement, OP 4.12) safeguard policies will be triggered. Scale of potential environmental and social (resettlement) impacts is significant and this project should be classified as Environmental Category A. The alignment goes through the historic/cultural heritage site “Settlement Chilhudzhra” (IV century BC – IV century AC) nearby Pap and OP 4.11 will be triggered. This historic site was identified during archaeological surveys. Limited archaeological works on this site were done in 2013 and the site was registered in the National Registry of Historic Monuments. The works on the alignment in the fall of 2013 resulted in some damage to the site. The alignment makes a cut through the central section of the historic site. The dimensions of the cut are 50 m (width) x 120 m (length). Approximately 10 % of the historic area was damaged. 2. Describe any potential indirect and/or long term impacts due to anticipated future activities in the project area: Long-term impacts associated with future activities include potential pollution from railway, tunnel, and associated infrastructure operation and maintenance. Also, pollution due to emergencies and/or accidents on the railroad may cause spills of oil and oil products, chemicals or other types of negative impacts. Potential radioactive hazard in the area of the tunnel has been identified during project preparation, but sampling suggests that there is no excess of radiation levels in the tunnel/shafts so far. 3. Describe any project alternatives (if relevant) considered to help avoid or minimize adverse impacts. Four alternative alignments were considered at initial stage of alignment identification and two alignments were considered at pre-feasibility stage. The tunnel fall/decline in both options is 20/1000. Option A (preferred option) is 123 km long and has two tunnels (19.1 km and 0.2 km) Public Disclosure Copy with the range of tunnel altitudes between 1320 m and 1485 m. Option B is 146 km long, has 14 tunnels with total length of 19.5 km with the range of tunnel altitudes between 1799 m and 1895 m. Option A was selected to minimize overall project costs and environmental and social risks associated with project activities. 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. The Environmental Impact Assessment (EIA) for construction of the railway line and the tunnel was prepared by the Borrower. There were 18 agencies/institutes/organizations that contributed to preparation of the EIA. The EIA was updated taking into account comments from both the State Expert Review and the Bank. The Environmental Management Framework (EMF) was prepared by an independent entity ("AL MAR CONSULTING" LLC) and covers other components and activities in the project not included in the EIA for the railway line and tunnel (e.g. borrow pits, river channeling works, bridges and overpasses, power supply). All of these works will require preparation of stand-alone EIAs under Uzbekistan law, and the EMF provides further guidance for ensuring that these EIAs and site-specific EMPs also fulfill the requirements of OP 4.01. An Environmental Audit and Environmental Action Plan covering works undertaken previously will be included in the final version of the EMF. Supervision engineering company (Deutsche Bahn International) was mobilized and checks environmental performance of the tunnel contractor and compliance with the action plan for radioactivity control on a regular basis. The Action Plan for Physical Cultural Resources was prepared and consulted upon/agreed with Page 7 of 10 authorities responsible for protection of historic and cultural heritage. In order to document the historic and cultural assets the site will be surveyed by specialists in archeology according to legislation of Uzbekistan (the UTY will contract an organization with appropriate archaeological Public Disclosure Copy expertize). The Borrower has established the PIU within the UTY. The PIU will have designated safeguards specialist to monitor the environmental performance of the project. Also, the UTY hired external experts to help monitor environmental performance of the contractors. 5. Identify the key stakeholders and describe the mechanisms for consultation and disclosure on safeguard policies, with an emphasis on potentially affected people. Key project stakeholders are the population of Uzbekistan broadly, who will benefit from the railway, residents of the areas nearby the railway, The EIA and EMF were disclosed on September 15, 2014 and will be consulted upon with interested stakeholders. Site-specific EIAs and EMPs will be disclosed and consulted upon with potentially affected communities. The Action Plan for Physical Cultural Resources was prepared by the Institute of Archeology of the National Academy of Science. B. Disclosure Requirements Environmental Assessment/Audit/Management Plan/Other Date of receipt by the Bank 11-Aug-2014 Date of submission to InfoShop 08-Sep-2014 For category A projects, date of distributing the Executive 29-Sep-2014 Summary of the EA to the Executive Directors "In country" Disclosure Uzbekistan 05-Sep-2014 Comments: Tentative Resettlement Action Plan/Framework/Policy Process Public Disclosure Copy Date of receipt by the Bank 20-Aug-2014 Date of submission to InfoShop 15-Sep-2014 "In country" Disclosure Uzbekistan 15-Sep-2014 Comments: The copy of Resettlement Policy Framework report was published on the web site of SJSRWC «Uzbekiston Temir Yullari» on September 15, 2014. Public meetings and consultations with the affected HHs were conducted in the project raions (Akhangaran and Pap) on September 15-16. The main principles and provisions of the resettlement policy in accordance with the laws of the Republic of Uzbekistan and the WB OP 4.12 were presented during the meetings. These activities were aimed at increasing the legal literacy on ongoing resettlement activities. Representatives of relevant state organizations, khokimiyats, makhalla committees, cadastral service and other local authorities, and also the persons, affected by the project implementation took part in these consultations. The mechanism for complaints was once more explained in details during the consultations. Upon the consultations all the participants were provided with handouts and brochures in Russian and Uzbek languages with details of the issues raised during the consultations Page 8 of 10 If the project triggers the Pest Management and/or Physical Cultural Resources policies, the respective issues are to be addressed and disclosed as part of the Environmental Assessment/ Audit/or EMP. Public Disclosure Copy If in-country disclosure of any of the above documents is not expected, please explain why: C. Compliance Monitoring Indicators at the Corporate Level OP/BP/GP 4.01 - Environment Assessment Does the project require a stand-alone EA (including EMP) Yes [ ] No [ ] NA [ ] report? If yes, then did the Regional Environment Unit or Practice Yes [ ] No [ ] NA [ ] Manager (PM) review and approve the EA report? Are the cost and the accountabilities for the EMP incorporated Yes [ ] No [ ] NA [ ] in the credit/loan? OP/BP 4.11 - Physical Cultural Resources Does the EA include adequate measures related to cultural Yes [ ] No [ ] NA [ ] property? Does the credit/loan incorporate mechanisms to mitigate the Yes [ ] No [ ] NA [ ] potential adverse impacts on cultural property? OP/BP 4.12 - Involuntary Resettlement Has a resettlement plan/abbreviated plan/policy framework/ Yes [ ] No [ ] NA [ ] process framework (as appropriate) been prepared? If yes, then did the Regional unit responsible for safeguards or Yes [ ] No [ ] NA [ ] Practice Manager review the plan? The World Bank Policy on Disclosure of Information Have relevant safeguard policies documents been sent to the Yes [ ] No [ ] NA [ ] Public Disclosure Copy World Bank's Infoshop? Have relevant documents been disclosed in-country in a public Yes [ ] No [ ] NA [ ] place in a form and language that are understandable and accessible to project-affected groups and local NGOs? All Safeguard Policies Have satisfactory calendar, budget and clear institutional Yes [ ] No [ ] NA [ ] responsibilities been prepared for the implementation of measures related to safeguard policies? Have costs related to safeguard policy measures been included Yes [ ] No [ ] NA [ ] in the project cost? Does the Monitoring and Evaluation system of the project Yes [ ] No [ ] NA [ ] include the monitoring of safeguard impacts and measures related to safeguard policies? Have satisfactory implementation arrangements been agreed Yes [ ] No [ ] NA [ ] with the borrower and the same been adequately reflected in the project legal documents? III. APPROVALS Page 9 of 10 Task Team Leader: Name: Jacques Bure Approved By Public Disclosure Copy Regional Safeguards Name: Agnes I. Kiss (RSA) Date: 29-Sep-2014 Advisor: Practice Manager/ Name: Juan Gaviria (PMGR) Date: 29-Sep-2014 Manager: Public Disclosure Copy Page 10 of 10