Azerbaijan republik

ANNEX 5. ENVIRONMENTAL MONITORIMNG

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

Table A-5.1: Environmental Monitoring Plan

Project phase	What is to be monitored	How and where will it be monitored	Frequency of monitoring	Responsibility	Cost
Baseline
Construction
Operation
De-commissioning

FORM 1 – CHECKLIST FOR ENVIRONMENTAL MONITORING

(For random sampling monitoring by PMU)

1. 
   Was an Environmental Assessment needed? (Y or N)___ If yes, was it done?___
   

Have national and World Bank requirements for public consultation been met and fully documented? (Y or N) ___

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

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

4. 
   
   

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

6. 
   
   

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

______________________________________________________________________

______________________________________________________________________

8. 
   
   

Dates Participants

_____________________ _______________________________________

_____________________ _______________________________________

_____________________ _______________________________________

ANNEX 6. PUBLİC CONSULTATİON FOR SUB-PROJECTS

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

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

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

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

ANNEX 7. IMPACTS, CONSEQUENCES AND MİTİGATİON MEASURES

Table A7-1. Laboratory Testing

Potential Direct Negative Impacts	Potential Indirect Negative Impacts	Consequences	Recommended Mitigation Measures / Best Practices	Remarks	Cost estimate (thous. AZN)
Pollution of surface and ground waters by waste water	. Aquatic ecosystem damaged; . Domestic water supply contamination . Human and animal diseases	Biodiversity of aquatic ecosystem decrease	. Staff training on handling with toxic materials. Spent chemicals decontamination Availability of appropriate facilities and systems to separate and handle hazardous/toxic materails . Application of less toxic reagents when laboratory researches are carried out . Application of analysis and equipment requiring less use of chemical reagents . Local facility for waste water treatment up to the fixed norms		20
Atmosphere and air pollution in the working area	. Respiratory and allergic diseases of staff . Plants damage	. Indisposition . Working days loss . Social costs	. Effective ventilation system in the buildings . Safety requirements fulfillment working with liquid and volatile substances. . Protective facilities use by staff		Covered by laboratory budget
Toxic wastes contamination of the environment as well as human health impact.	. Toxic substances impact on the human health; . soil and water sources pollution .Biodiversity decrease	. Human diseases . Social costs . Payments for wastes placement	. effective system for storing, collecting, transporting and disposal of toxic materials waste separation, e.g. separate collection of biological waste, use of containers and chemical glassware for the following utilization. . Incinerator for wastes burning (temperature at least 1000º С) equipped with the additional chamber for burning and gas control.		Covered by laboratory budget

Table A7-2. Veterinary services

Potential Direct Negative Impacts	Potential Indirect Negative Impacts	Potential Consequences	Recommended Mitigation Measures / Best Practices	Remarks	Cost estimate (thous. AZN)
Meat and animal products containing hormones and other chemicals		Human illness	. Proper awareness and training of farmers and animal health workers; . Organic methods of livestock husbandry could be used; . minimal application of only necessary drugs; . Alternative medicine	Only approved drugs and hormones should be used but even these could have some long term, and yet unknown, effects on humans	20
Soil and water contamination with insecticides used in dip tanks		. Contaminated soil and water not useable for cultivation or potable water; or water for irrigation; . Affected downstream aquatic ecosystems	Proper disposal of diptank liquids to avoid soil and water contamination, e.g.: Chemical disinfection of liquids with further discharge into sewerage system Autoclave decontamination		Covered by veterinary facility budget

Table A7-3. Seed testing

Potential Direct Negative Impacts	Potential Indirect Negative Impacts	Consequences	Recommended Mitigation Measures / Best Practices	Remarks	Cost estimate (thous. AZN)
Water contamination	. increased use of pesticides (e.g. Round-Up ready genetically modified crops) and chemical fertilizers	. development of pesticide resistant weeds . long term dependence on high yielding varieties (HYV) requiring continual high level inputs; could be costly to the farmer	. determination and application of optimum quantities and scheduling for fertilizers and other inputs; . use of pesticides that comply with IPM principles – namely specific in action against target pests; are readily biodegradable; and relatively safe for human, domestic animals and environmental health. . raising awareness of organic farming techniques that might be relevant to apply . introduction of an integrated pest management program (IPM). Mitigation will be moderately difficult without support of an active extension service.	. in general terms, high yielding varieties (HYV) require large inputs to achieve expected results - plant species and varieties would have to be examined on a case by case basis . organic farming techniques are currently practiced in other areas of the FSU and some of these could be adopted	Covered by the project budget
Introduction of genetically modified plant seed		. genetic drift into other areas where GMOs are not wanted;	. policies and legislation to prevent import of GMO plant seeds	Government has to decide if the potential gains of GMOs outweigh the impacts	No additional cost

Table A7-4. Fertilizer

Potential Direct Negative Impacts	Potential Indirect Negative Impacts	Consequences	Recommended Mitigation Measures / Best Practices	Remarks
Reduction in soil organic content	. modified soil structure and reduction in soil moisture holding capacity	. in the long run, possible loss of productivity as a result of insufficient soil moisture; . loss of soil’s natural fertility	. use of mulch or compost in conjunction with crop rotation practices. - Control over the use of mineral fertilizers – excessive use should not be allowed . further reduce chemical fertilizer use through incorporation of various organic cultivation practices. Mitigation moderately easy since chemical fertilizer costs are high	. extension agents should work closely with farmers to develop application rates and best land husbandry and crop rotation plans
Nutrient enrichment of water bodies	. eutrophication of water bodies . contaminated potable water sources	. modified aquatic ecosystems . loss of household water supply; . must search for new source	. organic farming; . crop rotation . optimum fertilizer quantities and application schedules should be planned and implemented Mitigation moderately easy since fertilizer costs are high	. work closely with extension workers to develop best land and crop management plans . potential impact on international waters
Emission of greenhouse gases from chemical fertilizers	. contribution to global warming	. climate change	. optimum fertilizer quantities and application schedules should be planned and implemented Mitigation moderately easy since fertilizer costs are high

Table A7-5. Pest Management/Pesticides

Potential Direct Negative Impacts	Potential Indirect Negative Impacts	Consequences	Recommended Mitigation Measures / Best Practices	Remarks	Cost estimate (thous. AZN)
Impaired health of handlers including those who store, sell, transport and apply pesticides		. increased health costs; . lost family income; . insurance costs	Ensure selection of pesticides that are relatively safe (preferably WHO Class III and Class II after training in the proper handling and use of pesticides; The objective of introducing IPM (integrated pest management program) is to ensure safe crop production practices.	MoA and MENR should develop application certification programs. MOA will encourage the revival of elements of IPM such as monitoring pest activity, establishing economic injury thresholds, cultural and mechanical control and biological control practices with the aim of adopting an IPM Program.	No additional cost
Possible impaired health of food consumers		. increased health costs; . lost work time; . lost family income	. health warnings to wash foods; . use of appropriate chemicals that minimize residue and are least harmful to consumers; Delaying first spray to maintain natural population of biological control agents; . consider organic farming avoid the use of pesticides like those in POPs categories, and broad-spectrum products with mammalian toxicity and high persistence. . . monitoring pest activity with pest surveys and light and pheromone trap catches where feasible. . insectivorous bird population support	Public education is required and this could be done through MoA and the NGO community. It should be determined if MoA is developing an IPM program.
Soil contamination	. long term loss . altered soil microfauna important to soil . biodiversity loss	. eventual loss of soil productivity	. Use of appropriate pesticides that do not have residuals or in which residuals do no harm to soil; . Prevent back siphoning or overfilling of sprayer tanks	Difficult because agrochemical companies promote their products amongst farmers and farmers will generally adopt the least cost chemical that does the job
Ground and surface water contamination due to: . Leakage of stored concentrate or discarding unrinsed 'empty' containers in or near to a water supply . spray drift under windy conditions or application too close to open water.	. movement of pesticide from treated land by heavy rains and runoff waters . spills that leak to groundwater and move laterally in aquifers	. impaired health of local and downstream water consumers . biodiversity losses . aquatic ecosystems damaged	. Use optimal (recommended) amount of pesticides . Consider planting across the slope . Make sure pesticides storage areas are away from water supplies and above high water flood levels. . Cover wells if spray operations are to be carried out in their vicinity. . Do not spraying when winds exceed 11 km/hr.

Table A7-6. Plant production technologies

Potential Direct Negative Impacts	Potential Indirect Negative Impacts	Consequences	Recommended Mitigation Measures / Best Practices	Remarks	Cost estimate (thous. AZN)
Deep cultivation contributes to soil erosion	Loss of soil productivity and stream sedimentation	Water regulation losses; modified aquatic ecosystems	Practices other than deep ploughing (e.g. direct seed drilling without disturbing the soil, or shallow tilling). Mitigation will be difficult	Difficult to change old ways. Agriculture extension service will be required to provide training, advice and demonstrate advantages.	No additional cost
Soil erosion	. stream sedimentation . modified hydrological regime . desertification	. loss of productivity . loss of soil moisture . aquatic ecosystem modified . flooding and drought conditions increased	. contour ploughing required . optimal ploughing schedules to ensure minimal time for exposed soil. . organic agricultural practices adopted (e.g. shallow tilling) Mitigation will be difficult.	. should be conducted in conjunction with other good husbandry practices including maintenance of cropping residues (i.e. no burning) . coordinate with agricultural extension field services	No additional cost
Reduction of groundwater; extraction of surface water	. biodiversity loss . desertification	. loss of water to other current and potential users	Water sharing plan to ensure equitable distribution. Water saving techniques Mitigation very difficult.	Water sharing plan will be challenging to prepare and implement	No additional cost
Salinization; waterlogging	. desertification	. loss of productive land	Appropriate drainage system. Mitigation relatively easy.		No additional cost
Water contamination as a result of application of fertilizers and pesticides	. eutrophication of water bodies . contaminated potable water sources	. modified aquatic ecosystems	. optimum fertilizer quantities and application schedules should be planned and implemented . use optimal (recommended) amount of pesticides . consider planting across the slope . adopt organic farming . use Integrated Pest Management methods	Training on organic farming and IPM will be required during extension phase.	10

Table A7-7. Livestock production technologies

Potential Direct Negative Impacts	Potential Indirect Negative Impacts	Consequences	Recommended Mitigation Measures / Best Practices	Remarks
Overgrazing	. loss of ground cover . soil erosion . loss of water holding capacity	. reduced productivity . loss of soil . sedimentation . hydrological regime modified resulting in flooding and drought conditions	. consider pasture management . ensure that pasture carrying capacities are not exceeded.	. work closely with agricultural extension services
In high altitude areas stock may threaten forested or other protected areas	. reduced vegetation cover . soil erosion . loss of water holding capacity	. loss of soil . sedimentation . hydrological regime modified resulting in flooding and drought conditions . reduced biodiversity	. ensure that grazing does not occur in protected or other important areas.	. work closely with agricultural extension services . regular monitoring
Livestock in a confined area – concentration of manure	. close confinement can result in animal diseases	. high nutrient loading in runoff waters leading to poor water quality and threat to human health . loss of stock and income	. manure use as fertilisers; . biogas facilities use . alternative to confined quarters.

Table A7-8. Slaughter houses

Potential Direct Negative Impacts	Potential Indirect Negative Impacts	Consequences	Recommended Mitigation Measures / Best Practices	Remarks
Surface water contamination from effluent discharge	. human and animal diseases . loss of potable water supply; . damaged aquatic ecosystems . BOD5 level increase	.increased health costs . biodiversity loss	. design suitable blood collection facilities and allowing sufficient time for bleeding, typically seven minutes; . Fit drains with screens and/or traps to prevent solid materials from entering the effluent system.	Slaughterhouse waste is first converted into intermediate products like Meat Bone Meal (MBM), Dicalciumphosphate (DCP) & bicalphos (BCP) which are essentially feed supplements. They are then mixed with various crop ingredients to make a complete feed for animals.
Soil contamination		. Reduction in the amount of land available for food production . income loss	. slaughterhouse wastes can be used as inputs to feeds for the poultry, fish and pets like dogs and cats; . incineration of infected animals remains and carcasses	Necessity to incinerate the infected animals is the legislative requirement

Table A7-9. Primary processing

Potential Direct Negative Impacts	Potential Indirect Negative Impacts	Potential Consequences	Recommended Mitigation Measures / Best Practices	Remarks
Surface water contamination from effluent discharge (e.g. blood from meat processing)	.impaired health of downstream users; . loss of potable water supply; . damaged aquatic ecosystems	.increased health costs, . lost work days and family income; . alternative source of potable water must be found; . reduced biodiversity	.assurance that effluents are treated before discharge; . alternative ways of handling effluents (e.g. recycling); . good housekeeping to prevent product and by-product losses; . blood recovery; . serum use as animal fodder or new milk products output	Each processing operation will differ and for a number there will be no impacts; project design must be submitted and reviewed; monitoring of operations required Mitigation will be a condition of the issuance of an environmental agreement.
High level of water and energy consumption	. air pollution from boilers	. lost income	. Use high pressure rather than high volume for cleaning surfaces; . Maintain optimal combustion efficiencies on boilers. . Improve insulation on heating and cooling systems and piping.
Injury and illness as a result of poor working conditions		. injuries and illness; . lost work time; . lost family incomes	. provision of appropriate safety features and protective clothing; . training on the use of equipment; . awareness of dangers Mitigation relatively difficult.	This may come under any regulations relating to occupational safety.

Table A7-10. Storage facilities

Potential Direct Negative Impacts	Potential Indirect Negative Impacts	Consequences	Recommended Mitigation Measures / Best Practices	Remarks
Reduction in the amount of land available for food production		Reduced income from lower total crop production.	. Efficient design to minimize space required. . Accurate selection of site for storage construction Mitigation easy.
CFC emissions from compressors	Ozone layer depletion	Global warming	. replace CFC-based refrigerants by less hazardous HCFCs or preferably, by ammonia; . closed circuit systems and leak prevention . consider passive ventilation methods
Leakage of fuel and chemicals into surface and groundwater		Pollution of ground and surface water leading to contaminated drinking water and irrigation water as well as affecting aquatic ecosystems	Construction to include impermeable flooring. Mitigation easy.

ANNEX 7A
REPUBLIC OF AZERBAIJAN

Third Agricultural Development and Credit Project (ADCP III)
TERMS OF REFERENCE
Environmental Specialist
Introduction
The Government of Azerbaijan is implementing a third phase of the "Agricultural Development and Credit Project" (ADCP III) in Azerbaijan. The overall objective of the project is to to contribute to enhancing the competiveness of the agrifood sector. The project components and activities are:
Component A: Support for sanitary and phytosanitary services

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

Component B: Agribusiness value chain development

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

Component C: Access to Credit

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

Component D – Project Management and Results Monitoring
This component will finance the administrative and operational project implementation and management costs (FM, procurement, safeguards compliance, M&E), including overheads of Project Management Unit (PMU) professional staff as well as support staff. ADCP 3 will continue the current practice of regular and rigorous project monitoring and using mixed quantitative and qualitative methods.
The Project is managed by the Project Management Unit (PMU) established within the State Agency for Agricultural Credits (SAAC) under the first phase of ADCP, which continued under ADCP - II, The SAAC is the Ministry of Agriculture’s agency for overseeing international agricultural development projects. The PMU functions include among others, implementation of project activities, financial management, procurement, project monitoring and evaluation.

Environmental aspects
The project has been assigned environmental category FI, as its largest Component C involves credit lines through authorized agent banks. The anticipated environmental risks are mainly associated with Components A and B envisaging upgrade of laboratories, and Components B and C which will be supporting agricultural sub-projects via credit lines and grant programs. Laboratories to be supported under Components A and B may practice improper environmental management and improper handling of hazard/chemical and medical wastes. The risks likely to occur due to Components B and C activities are local and temporary, lasting during the implementation of sub-projects. Possible environmental implications of Component B may also include increased use of pesticides (for example, due to facilitation of crop cultivation).

The ADCP II Environmental Assessment and Management Plan (EMP) has been updated by the PMU to address the environmental aspects of ADCP III and determine key actions that the project should take to safeguard negative environmental impacts. The EMP includes a framework for assessing and mitigating potential impacts that may occur during implementation of activities financed by on-lending to small and mid-sized agricultural enterprises.

The project will benefit from the institutional capacity developed under ADCP I and II which improved environmental management practices of the PMU and participating PFIs. The project’s information and advisory service activities will continue to promote the adoption of improved and environmentally sound technologies, provide training and advice on integrated pest management techniques as well as on improved use and handling of fertilizer and agro-chemicals. A large number of trainings were provided during ADCP I and II to project beneficiaries including borrowers and PFIs. The ADCP III will continue building capacity among potential applicants and those PFIs which are new to the project.
Objective of the assignment
Overall objective of the assignment is to ensure compliance of the project with the Azerbaijan national laws and regulations as well as with the World Bank environmental safeguards (OP/BP 4.01) and with the project EMP. The PMU will engage the services of an experienced environmental specialist who will supervise the implementation of mitigation measures outlined in the environmental management plan, and provide guidance and recommendations as necessary.

Scope of work
The detailed functions and responsibilities of environmental specialist will include:
Task 1. Review and discuss in detail the implementation of EMP per each component; evaluate how each component of ADCP III follows the requirements of the project EMP; identify gaps and develop work plan or action plan for implementation of EMP in regards with each component. Specifically:

• 
  Under Component A, the Environmental Specialist will review the existing environmental management practices in the laboratories to be upgraded under the project, and will deliver training to laboratory personnel on best international practices, including handling of hazard and toxic materials and management of medical wastes.
  
• 
  Under Component B, the Environmental Specialist will facilitate raising awareness among project beneficiaries on the principles of Integrated Pest Management. This will be done trough both capacity building activities supported by the project, and trough extension services.
  
• 
  Under Components B and C, the Environmental Specialist will (i) ensure that sub-project proposals are correctly screened, (ii) review environmental management documentation of proposed sub-projects, (iii) participate in the evaluation of the proposals, and (iv) deliver series of trainings to potential applicants, VCDS and PFIs, in order to improve the capacity of those to deal with environmental risks associated with the sub-project implementation. The Environmental Specialist will also advise credit/grant applicants, VCDS and PFIs on ‘as needed’ basis at all stages of sub-project preparation and implementation.
  

Task 2. The Environmental Specialist will:

• 
  conduct random sampling monitoring of sub-projects and will report to the PMU accordingly. For the sub-projects associated with higher risks and/or sensitivities, the monitoring will be conducted as frequently as needed by the project nature. Individual monitoring schedules should be identified by the consultant at the stage of sub-project applications review and agreed with VCDS/PFIs and PMU M&E Officer. The report should specify the status of implementation of mitigation measures outlined in site specific EMPs. In case of any issues the report should specify recommendations/follow up actions by PMU and a credit/grant beneficiary, with indicative timeframe;
  
• 
  On an annual basis, undertake assessment of cumulative impacts based on indicative cumulative scores specified in the project EMP. The determination of cumulative scroe and decision on revisiting sub-project category will be case-specific.
  

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

Timing and Reporting:
The duration of the assignment will be twelve (12) months. The period of the assignment will be extended throughout the project life depending on performance and projects needs. Detail working schedule will be agreed with the consultant at the time of contract signing.
The Environmental Specialist will report to the PMU Director. The task will be carried out in cooperation with the Ministry of Environment and Natural Resources. The consultant will also coordinate closely with the Environmental Specialist of the WB Country Office.