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2.3 Environmental Assessment

The World Bank requires an environmental assessment of projects proposed for Bank financing to help ensure that they are environmentally sound and sustainable, and thus improve decision making (OP 4.01, January 1999). The Bank favors preventive measures over mitigatory or compensatory measures, whenever feasible.

The ecological analysis is the process, the volume, depth and type of which depends on potential ecological impact, features and volume of a submitted project. EA assesses the potential ecological risks of a project and its impact to the territories covered by the project; analyses alternatives to the project; determines ways for development of choice, location, planning, design and execution of the project, by taking measures on mitigation, compensation and ensuring minimum negative and strengthening its positive impacts to the environment.

The EA takes into account the environment (air, water and land); human health and safety; social aspects ( involuntary resettlement, and cultural heritage sites ); and trans – boundary and global environmental aspects along with changes taking place in the project area and the country; results of ecological studies held over the country, plans of local ecological measures; common political framework of the country, local legislation and institutional possibilities on ecological and social aspects; obligations of the country on international Agreements and Treaties concerning the projects activities. The Bank does not fund the project activities which are contrary to country’s obligations.

The coverage and depth of the EA process on ADCP-3 is determined by specific properties of proposed sub-projects. It is anticipated, that sub-projects to be funded by ADCP-3, as a rule, will not trigger the process of full-scale analysis of impacts (EIA) to Environment. The EA is an inseparable part of determination, design, assessment, execution based sub-projects.

Key considerations to be taken into account during the EA process include:

Generic initial screening to determine appropriate environmental assessment;

Compliance with existing environmental regulations in Azerbaijan;

Linkages with social assessment;

Analysis of alternatives;

Public participation and consultation with affected people and organizations; and

Disclosure of information.

2.4 Project Environmental Category

The Bank undertakes environmental screening of each proposed project to determine the appropriate extent and type of EIA. The Bank classifies the proposed project into one of four categories, depending on the type, location, sensitivity and scale of the project and the nature and magnitude of its potential environmental impacts. The four Categories are A, B, C, and FI, and these categories are detailed in Annex 1. Under Azerbaijan Law an EA is grouped in four environmental categories (1,2,3, or 4), the first three of which are approximately equivalent to Bank environmental categories A, B and C. Azerbaijan Category 4 relates to project activities that have no environmental impact but may need some form of permit and can also be considered as equivalent to Bank category C.

ADCP-3 has been classified as Environmental Category FI because Component C supporting agricultural credits for sub-projects is the largest part of the project. A Category FI project involves investment of Bank funds through a financial intermediary (FI), in subprojects that may result in adverse environmental impacts. Sub-projects may be defined as Category A, B or C within the FI Category. Category A sub-projects will not be eligible for financing. The eligible project activities under ADCP-3 would be Bank Category B or C (Azerbaijan Category 2 and 3 respectively). It is important that the Value Chain Development Secretariat (VCDS), Participating Financial Institutions (PFIs) and regional credit officers are able to identify the Environmental Categories of activities for which funding is being requested. The VCDS and PFIs are required to screen proposed grant and credit applications respectively and must ensure that beneficiaries conduct an appropriate EA for each sub-project, when appropriate. The VCDS and some PFIs may not initially have the technical capacity for environmental screening, but will be trained in environmental issues under the Project before they start screening grant and credit applications. In any case, the PMU Environmental Specialist will provide for prior review of the grant and credit applications and will assist the VCDS and PFIs at all stages of the review and taking decision on sub-project applications. The Environmental Specialist will also advise on complex environmental issues. Based on the sub-project application, the VCDS and PFI must ensure that the sub-project meets the relevant environmental requirements of national and local authorities and is consistent with provisions of this EMP. The sub-project proponent may be required by the PFI to provide an Environmental Assessment and Environmental Management Plan with mitigation measures to be included in the design.

2.5 Azerbaijan Environmental Legislation and Procedures

The Constitution of Azerbaijan Republic (1995) states that nature and all natural resources belong to the people. Nationals of Republic are obliged to protect the nature and its resources. State, in its turn, undertakes efficient, science-based use of land, water resources, flora and fauna, to protect them, ensure air quality, develop the natural resources, recover them and improve quality of environment.
The Law “On Protection of Environment” is one major laws regulating protection of natural resources and efficient use of them (1999). The Law determines major principles for protection of nature, rights and duties of state, public organizations and nationals in this sphere, provides basis of responsibility for violation of requirements of the nature protection legislation, approves major normative for EA quality, ecological requirements for sphere of economic activity, envisages the role of community in ecological monitoring and control.
The Law on Protection of Environment (Article 42) determines main purposes and duties of State Ecology Expertise (At present the draft of new Law on State Ecology Expertise is in the stage of development).
Besides, the questions related with protection of environment and regulation of use of nature is regulated with following Laws of relevant legislation of Azerbaijan Republic: Water Code (1997), Land Code (1999), Forest Code (1997), On Entrails (1998), On Protection of Flora (1996), On Fauna (1999), On Obligatory Insurance (2002), On radioactive Wastes (1994), On Industrial and Household wastes (1998), On Radioactive safety of population (1997), On Sanitary – Epidemiological Safety (1992), On Melioration and Irrigation (1996), On Water Supply and Sewage (1999), On Safety of Hydrotechnical Plants (2002), On State land cadastre, monitoring of lands and structure of earth (1998), , On protection of the Soil fertility (1999), On specially protected nature areas and objects (2000).
The Cabinet of Ministers issued number of Regulations and Guidelines for effective implementation of Ecology Legislation and the President’s relevant decrees and resolutions and to support provision of mechanism for implementation.
Republican criminal legislation and legislation on administrative faults includes some measures directed to protection of environment and efficient use of nature.
The relevant legislation in force includes some laws regulating activity of natural persons and legal entities in the various spheres of use of natural resources (underground resources, water and land resources, forests, fishes, etc.), also laws on Public Health, Construction, Hydrometeorological Activity and other laws and legal – normative document consisting of articles related with protection of environment.

2.5.1 International Cooperation

The International Agreements and Conventions signed by Azerbaijan are inseparable part of legislative system of the country.
During the several last yeasr, Azerbaijan has become a party to more than 15 international conventions related to environmental protection.
Each law of Republic of Azerbaijan includes a special chapter or article stating that if International Agreements provide rules which differ from existing relevant rules of Azerbaijan Legislation, the rules of international agreements/protocols should prevail.

2.5.2 EIA Procedures

In 1996 Government of Azerbaijan adopted the procedure of EIA process which comply with the systems used in most countries. The new rules are described in the Regulation on conducting Environment Impact Assessment in Azerbaijan Republic (UNO / State Ecology Committee, 1996). This Regulation states, that “Activities on assessment of impacts of wastes to environment should begin in the stage of planning of the project”.

The process of Environmental Impacts Assessment is one of the means of regulating protection of environment, efficient use of nature and effectiveness of economic development.

This existing normative, legal basis of the Azerbaijan Republic broadly uses the notion of EIA. The need for EIA activities is described in following documents:

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  Law on protection of environment (1999);
  
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  Law on ecological safety (1999);
  
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  Regulations of EIA process in Azerbaijan Republic (UNDP / State Ecology Committee, 1996);
  
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  (Draft Laws “EIA Process” and “Ecological Expertise” are in the preparation stage ? ).
  

In the EIA process the main objects are projects of state importance which cover the various spheres of industry and agriculture.

The objective of the EIA process is protection of State’s natural resource base while pursuing economic growth through industry and agriculture, preventing environmental degradation as well as ensuring recovery of at least some of the deterioration inflicted in the past, balancing of future economic development with environmental conservation and creating environmentaly, socialy and economically development to improve living standards. .

The State Expertise Board of the Ministry of Ecology and Natural Resources is the authorized state organ for the EIA process.

The EIA process begins with the planning and feasibility preparation of the intervention. The Applicant (the project proponent, nature user) is responsible for content and final version of EIA document submitted to Ministry of Ecology. The Applicant bears the responsibility for fulfillment of conditions shown in the given permission and also for carrying out of monitoring of the project. For ADCP-3 category B sub-projects the state expertise opinion should be obtained by sub-project applicants from the MENR. The MENR should be approached after the sub-project category is assigned.

During the EIA the Ministry of Ecology stating its position on this process should pay special attention to following:

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  Use of new technologies;
  
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  Volume and complexity of proposed processes and technologies;
  
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  Anticipated impacts on the environment;
  
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  Impact on social – economic spheres of the district hosting the planned work;
  
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  Public opinion about the project, etc.
  

In the Ist stage: The originator (applicant) of the activity submits application to Ministry of Ecology and informs about major project decisions and possible results of negative Impacts to Environment.

Ministry of Ecology after consideration of the Application informs the Applicant about necessity of carrying out of EIA and scale of this activity. In rare cases, after consideration of application, the permission for carrying out of work may be given immediately (Article 2.5).

In the IInd stage: The document(s) (EIA) prepared by the Applicant are evaluated by the Group of Experts and Summary prepared. The summary also includes proposals and objections/suggestions of the community. On the basis of the summary, the Ministry of Ecology may give permission for work or refuse to grant permission, explaining reasons for rejection. The Ministry of Ecology takes a maximum of three months for consideration of EIA documents.

The Regulations include requirements for components – content of the Summary. The permit issued to Applicant specifies obligatory conditions that must be met to ensure strengthening of environmental management and determine monitoring parameters. The Ministry of Ecology retains the right to verify accuracy and authenticity of the results of monitoring.

The main laws of the environmental regulatory framework include the Law “On Protection of Environment” (1999). The Law determines major principles of protection of Environment, rights and duties of state, public organizations, and nationals in this sphere, formulates bases of responsibility for violation of requirements of legislation on protection of Environment, confirms major normative of quality of Environment, ecological monitoring and control, role of community.

Main duties and responsibilities of State Ecology Expertise and Public Ecology Expertise are delineated in the Law on Protection of Environment (Article 42) (Draft of the new Law on State Ecology Expertise is in the stage of preparation). Observation of opinion of the State Ecology Expertise (SEE) is obligatory. The public opinion is necessary for adoption of optimal or alternative decisions. But Public Ecology Expertise differ from the SEE and featured by informative and recommendation character.