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2.6 Public Involvement

One of the major principles in the area of environmental protection according to the Law “On Environmental Protection” (Article 3) is participation of the population and public organizations in the discussion of ecological issues.

In accordance with the “Provision on the process of environmental impact assessment (EIA) in Azerbaijan”, where the full EIA is required, the developer of Design documentation has to inform the public about the design decisions made through mass media, submit the report copies and provide additional information, which will be requested by the Expert Group to answer the questions raised by the public.

The public participating in the discussion of the Projects can be conventionally divided into two groups. One group usually consists of the people who will be in some way affected by the activity planned under the Project. The other group is more often represented by participants of the ecological organizations, activists, groups or specialists concerned with the ecological problems in the given region. The Client and the EIA Developers should organize a meeting with the public and be ready to answer the questions raised by the representatives of some public group or another.

2.7. Criteria for Impact Assessment

Criteria used for determining the significance of an impact includes severity, extent, duration, frequency, possibility of occurrence, and possibility of reversibility of the impact. The extent of each of the criteria was based on judgment and no numerical ranking or consideration was given.

Project activities may have varying levels of potential impacts and for each of these a matrix has been established that describes the potential direct and indirect impacts that can be expected, and the consequences of these impacts. The mitigation action to these impacts are also provided. Each input is given a level of impact significance prior to mitigation and a level of significance (for the residual impact) assuming that mitigation is carried out. All ‘levels of significance’ ratings (Table 2.2), and other ratings, are relative and subjective.

Table 2.2: Level of Significance of Potential Impact

Level of Significance	Description
Very High Significance Azerbaijan Law Environmental Categories 1	Potential impact of the enterprise could cause damage to an IEC over a large area affected (e.g. loss of important habitat, loss of biodiversity, loss of large areas of productive land). Mitigation is not possible and the impact is irreversible.
High Significance Azerbaijan Law Environmental Categories 1 or 2	Potential impact of the enterprise could cause irreparable damage to a small area (e.g. on site) of an IEC; or, potential impact could cause damage to an IEC over a large area, but the ecosystem can still function (e.g. surface water contamination causing limited aquatic ecosystem damage). The impact is reversible over a long period of time.
Moderate Significance Azerbaijan Law Environmental Categories 2 or 3	Potential impact damages an ecosystem over a small area but it is still functional and the damage is reversible over a long period of time. Damage to an ecosystem over a large area, still functional, and the damage is reversible over a relatively short period of time.
Low Significance Azerbaijan Law Environmental Categories 3 or 4	Potential impact of the enterprise could cause damage to an IEC over a small area but system still very functional and damage is reversible over a short period.
No Impact Azerbaijan Law Environmental Categories 4	Non measurable impact.

3. ENVIRONMENTAL ASSESSMENT

3.1 General

The overall environmental effect of the Project should be positive. Farming and agri-business loans will result in improved agricultural production and marketing, and in general, improved socioeconomic conditions of the rural population. Other aspects of the Project including the extension services, will also contribute to an improved socio-economic environment in the rural areas. The Project will further contribute to the country’s food security, hopefully contribute to the generation of foreign exchange through increased agricultural exports, and significantly contribute to the alleviation of rural poverty. . In the past 20 years rates of chemical inputs in agriculture have been significantly reduced, resulting in cleaner watercourses, lower levels of soil contamination and relatively chemical free food, although residues in soil and water, and their effects, still remain. The Project could lead to an increase in the use of farm inputs but mitigation measures, extension services and training associated with the Project should minimize the potential negative impacts associated with these inputs.

3.2 Important Environmental and Social Components
A number of broad environmental issues have been identified and these have been used to compile a set of important environmental components (IECs). IECs are those components of the environment which society generally feels are worthy of protection in light of the general activity (e.g. agricultural development) that will occur. Table 3.1 lists the IECs identified.

Table 3.1. Important Environmental and Social Components

Physical Components	Biological Components	Socioeconomic Components
Soil quality Soil fertility Soil erodibility Soil organic content Hydrological regime Groundwater quality Surface water quality Topography Land Air quality	Forests Flora Fauna Forest habitat Aquatic ecosystems Livestock Crops Germplasm	Culture Employment Income Poverty Gender Education Health Migration Waste disposal Domestic water Fuelwood Markets and marketing