INTEGRATED SAFEGUARDS DATASHEET APPRAISAL STAGE I. Basic Information Date prepared/updated: 03/12/2013 Report No.: AC6878 1. Basic Project Data Original Project ID: P110679 Original Project Name: ARP/II-Integrated Solid Waste Management Country: Azerbaijan Project ID: P144279 Project Name: AZ Integrated Solid Waste Management Project (AF) Task Team Leader: Bjorn Philipp Estimated Appraisal Date: March 14, 2013 Estimated Board Date: May 30, 2013 Managing Unit: ECSUW Lending Instrument: Specific Investment Loan Sector: Solid waste management (100%) Theme: City-wide Infrastructure and Service Delivery (60%);Pollution management and environmental health (40%) IBRD Amount (US$m.): 40 IDA Amount (US$m.): 0 GEF Amount (US$m.): 0 PCF Amount (US$m.): 0 Other financing amounts by source: Borrower 0.00 0.00 Environmental Category: B - Partial Assessment Simplified Processing Simple [] Repeater [] Is this project processed under OP 8.50 (Emergency Recovery) Yes [ ] No [X] or OP 8.00 (Rapid Response to Crises and Emergencies) 2. Project Objectives A revision to the original PDO to support the reform of the Greater Baku solid waste collection and disposal operations into an effective and sustainable system in the fields of (i) improving environmental conditions at the existing waste disposal sites, (ii) building- up operational, management and communication capabilities, (iii) rollout of collection services, and (iv) data collection and planning' would be proposed to improve its clarity. The revised project objective would be to support (i) improving solid waste disposal management; (ii) increasing waste collection coverage; and (iii) enhancing waste data information and financial management capacity in the Greater Baku area. 3. Project Description The overall original project design has proven to be adequate. No additional components will be introduced and the scaling-up will not trigger new safeguard policies. The Additional Financing (AF) will finance costs associated with additional activities under Component B "Balakhani Landfill Rehabilitation and Management", Component E "Technical Preparation of Future Investment", and Component A "Institutional Reform, Capacity Building and Project Management", but would not require significant changes to the project design. Additional activities under Component B include (i) the full remediation and closure of the old waste disposal parts of the site; (ii) installation of water and leachate controls; (iii) opening of new waste cells by an upward expansion of waste disposal by increasing the "upper plateau" by an additional 50 meter; and (iv) introduction of a methane gas capture system. In addition, Component E would be revised to explicitly include activities for preparation of a national waste management and implementation roll-out plan and other national-level technical assistance to support improving SWM sector performance. Additional funds would also be allocated to Component A to cover additional expenses for project management required by the Project Management Team (PMT). The original project and additional financing would finance activities under the following five components: a. Component A: Institutional Reform, Capacity Building and Project Management (USD9.5 million). The component supports completion of strategic planning and establishment, operationalization and capacity building of the joint stock Solid Waste Management Company 'Tamiz Shaher'(TS) expected to consolidate the fragmented waste collection and disposal systems under one new entity. b. Component B: Balakhani Landfill Rehabilitation and Management (USD53.4 million). The component finances rehabilitation of the Balakhani landfill site, including (i) full remediation and closure of the old waste disposal parts of the site; (ii) installation of water and leachate controls; (iii) opening of new waste cells at the existing site; and (iv) introduction of a methane gas capture system. c. Component C: Closure and Management of Informal Dumps (USD 7.6 million). This component finances closure and cleanup of informal dumps and management improvements at formal sites. d. Component D: Urgent Collection Equipment (USD 5.9 million). This component supports to increase service quality and availability throughout the region by financing urgently needed equipment to improve solid waste collection coverage and service efficiency in the most acutely underserved areas of Greater Baku. e. Component E: Technical Preparation for Future Investment (USD 5.7 million). The component finances feasibility studies and environmental impact assessments needed to develop landfill capacity; introduce transfer stations to maintain an enhanced collection system; preparation of a national waste management and implementation roll- out plan; and other national-level technical assistance to support improving SWM sector performance. 4. Project Location and salient physical characteristics relevant to the safeguard analysis The proposed interventions under the Additional Financing will be implemented at the Balakhani waste management site in the Baku area. 5. Environmental and Social Safeguards Specialists Ms Gulana Enar Hajiyeva (ECSEN) Ms Joanna Peace De Berry (ECSSO) 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: The Environmental Assessment (OP/BP 4.01) Safeguard and Involuntary Resettlement (OP/BP 4.12) Safeguard are triggered under the project. The environmental impacts of activities to be supported under the Additional Financing will be temporary and likely to occur during the implementation of civil works, and are mitigatable. The following impacts have been considered in the Environmental Impact Assessment: • Landscape degradation; • Loss of habitat; • Loss of topsoil; • Erosion of slopes and sedimentation of water streams; • Pollution of soil and water due to improper fuelling and maintenance operations; • Vehicle emissions and dust; • Noise associated with the construction operations; • Damage of infrastructure; • Impacts on quarries and borrow areas. In order to address the impacts above, an Environmental Management Plan has been developed which identifies relevant mitigation measures which will be the responsibility of the Project Management Unit (PMU)/ contractor. The proposed civil works will be implemented within the existing footprint of the Balakhani waste management site which is fenced and not used for any other purposes. The original project triggered OP/BP 4.12 in response to the presence of 'waste-pickers' earning an income from waste collection at the Balakhani site. An RPF was prepared under the original project. There was a need for relocation of 6 families (14 persons) of waste pickers resident at the site, for which a RAP was prepared. To date, all resettlement issues have been solved satisfactorily in line with the project's Resettlement Policy Framework (RPF) and a Resettlement Action Plan. Monitoring shows that resettlement actions have mitigated the effects of relocation on those affected. No detrimental impacts have been identified for the approximately 144 non-resident waste pickers who continue to access waste at the site and have benefitted from improved conditions and employment opportunities at the site. No further resettlement and relocation issues are expected under the Additional Financing. However, the RPF has been updated and disclosed in country and through Infoshop prior to Appraisal to guide any further resettlement issues, which may arise in the course of project implementation. 2. Describe any potential indirect and/or long term impacts due to anticipated future activities in the project area: The long term environmental impact of the improved operation of the Balakhani waste management site is expected to be highly positive. This will include: (i) improved water and soil quality due to decrease in the quantity of leachate; (ii) improved air quality due to reduction of dust, odor and gas emissions; (iii) reduced public health risks due to elimination of inappropriately handled wastes in the project area; (iv) improved landscape after remediation. The project will also contribute to the overall strengthening of the solid waste management system of the Absheron Peninsula. The activities to be financed the Additional Financing are expected to have no negative impacts on waste pickers at the Balakhani site. They will retain access to waste, from which they earn a livelihood, and their conditions are expected to continue to improve with increased work opportunities in recycling and waste management. 3. Describe any project alternatives (if relevant) considered to help avoid or minimize adverse impacts. For the rehabilitation of the Balakahni waste management site, two possible scenarios were considered: (i) rehabilitation of the existing facility for limited disposal capacity (4- 5 years) and identification of new landfill site; or (ii) rehabilitation of the site for long- term disposal capacity (up to 20 years). Due to the increased amount of wastes generated in the Greater Baku area (rapid population growth, trend towards general urbanization etc), and due to the lack of sufficient waste management facilities, it is decided to rehabilitate the existing area for long-term disposal. Rehabilitation of the sanitary landfill for long-term disposal together with the composting plant and the recently opened Materials Recovery Facility (MRF) will also allow for reselling recyclable materials and compost. Furthermore, establishing of a new landfill at green-field sites will be avoided. 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 PMT established for the implementation of the original project and now operated under the 'Temiz Shahar' JSC, the Ministry of Economic Development (MED), has an Environmental Specialist and Social and Communications Specialist in the team. The PMU's environmental and social performance was satisfactory under the original project. In-house environmental expertise allowed for the timely development of good quality EIAs for the rehabilitation of Balakahni as well as for the closure of several other dumps in the Baku area. The PMU enlisted the services of a social consultancy firm to assist in the preparation, implementation and monitoring of a Resettlement Action Plan and this arrangement has been satisfactory. 5. Identify the key stakeholders and describe the mechanisms for consultation and disclosure on safeguard policies, with an emphasis on potentially affected people. The stakeholders include the Ministry of Economic Development, Ministry of Ecology and Natural Resources, local executive authorities, local municipalities, local communities. The EIA has been duly disclosed and discussed at a series of public consultation meetings held in Balakhani and other neighboring settlements in the period of February through April 2011, and in Baku in May 2012, with communal service providers, local communities, representatives of relevant government agencies and other stakeholders. The updated RPF was disclosed and discussed in country prior to Appraisal with special attention given to sharing the document and requesting feedback from the waste pickers at the Balakhai site. B. Disclosure Requirements Date Environmental Assessment/Audit/Management Plan/Other: Was the document disclosed prior to appraisal? Yes Date of receipt by the Bank 04/06/2012 Date of "in-country" disclosure 05/01/2012 Date of submission to InfoShop 08/09/2012 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 03/10/2013 Date of "in-country" disclosure 03/12/2013 Date of submission to InfoShop 03/12/2013 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) Yes review and approve the EA report? Are the cost and the accountabilities for the EMP incorporated in the Yes credit/loan? OP/BP 4.12 - Involuntary Resettlement Has a resettlement plan/abbreviated plan/policy framework/process Yes framework (as appropriate) been prepared? If yes, then did the Regional unit responsible for safeguards or Sector Yes Manager review the plan? The World Bank Policy on Disclosure of Information Have relevant safeguard policies documents been sent to the World Bank's Yes Infoshop? Have relevant documents been disclosed in-country in a public place in a Yes 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 responsibilities Yes been prepared for the implementation of measures related to safeguard policies? Have costs related to safeguard policy measures been included in the project Yes cost? Does the Monitoring and Evaluation system of the project include the Yes monitoring of safeguard impacts and measures related to safeguard policies? Have satisfactory implementation arrangements been agreed with the Yes borrower and the same been adequately reflected in the project legal documents? D. Approvals Signed and submitted by: Name Date Task Team Leader: Mr Bjorn Philipp 03/12/2013 Environmental Specialist: Ms Gulana Enar Hajiyeva 03/12/2013 Social Development Specialist Ms Joanna Peace De Berry 03/10/2013 Additional Environmental and/or Social Development Specialist(s): Approved by: Regional Safeguards Coordinator: Ms Agnes I. Kiss 03/12/2013 Comments: Sector Manager: Mr Pier Francesco Mantovani 03/12/2013 Comments: