Environmental Assessment Report


Residual Impact Assuming Full Mitigation: NONE



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Residual Impact Assuming Full Mitigation: NONE

Potential for adverse environmental impact: LOW


3.10 Small-scale irrigation and water supply rehabilitation

Overall Potential Impact: MODERATE TO HIGH




Potential Direct Impacts

Potential Indirect Impacts

Consequences

Mitigation Required

Remarks

Reduction of groundwater, extraction of surface waters




Loss of water to other users

Development of an equitable plan for water sharing.

A water sharing plan may be difficult to negotiate with a broad range of users.

Soil salinization and water-logging




Reduced productivity or loss of agricultural land

Install an appropriate water drainage system.

Technical mitigation is relatively easy to design and implement

Erosion from irrigation channels, debris accumulation




Stream sedimentation, soil erosion and loss, degradation of aquatic ecosystems

Perform maintenance on irrigation channels

Maintenance costs should be estimated and included in sub-project costs.

Restriction of surface water flow (dams)




Modification of aquatic ecosystems

Do not finance dams unless reliable and acceptable levels of stream flow can be maintained during all seasons

Requires knowledge of typical annual flows and also the extremes encountered in dry and wet years.


Residual Impact Assuming Full Mitigation: LOW to MODERATE

Potential for adverse environmental impact: MODERATE


3. 11 Support services (veterinary, medical, dental)

Overall Potential Impact: LOW




Potential Direct Impacts

Potential Indirect Impacts

Consequences

Mitigation Required

Remarks

Human or animal health impact due to improper waste disposal




Increased health costs and lost productivity

Provide for safe disposal of medical wastes





Residual Impact Assuming Full Mitigation: NONE

Potential for adverse environmental impact: LOW


3.12 Transport and communications

Overall Potential Impact: LOW




Potential Direct Impacts

Potential Indirect Impacts

Consequences

Mitigation Required

Remarks

Increased air pollution




Increased health care costs

Require that vehicles and equipment comply with national emissions standards

Generally upgrading of transport services should have a positive environmental impact do to the replacement of antiquated and poorly maintained vehicles.


Residual Impact Assuming Full Mitigation: NONE

Potential for adverse environmental impact: LOW


3.13 Retail and wholesale trade and storage facilities

Overall Potential Impact: LOW to MODERATE




Potential Direct Impacts

Potential Indirect Impacts

Consequences

Mitigation Required

Remarks

Site disruption, social disruption, noise and odors




Localized erosion, noise and dust

Employ good practice in site selection, preparation and construction. Conform to building codes. Grade, seed and landscape site as appropriate

Impact is temporary during the period of construction.
Facilities should be designed to enhance rather than disrupt community integrity

Waste generation

Loss of potable water and degradation of aquatic systems

Sickness, increased health costs and loss of productivity

Conform to existing regulations for waste collection, hauling and discharge.

Install proper sanitation facilities.







Residual Impact Assuming Full Mitigation: NONE

Potential for adverse environmental impact: LOW


3.14 Recreation and tourism (lodging, trekking, food services)

Overall Potential Impact:




Potential Direct Impacts

Potential Indirect Impacts

Consequences

Mitigation Required

Remarks

Disruption and degradation of natural flora and fauna (biodiversity)




Reduced biodiversity and declining tourism value

Site lodging and food services outside of protected areas and away from sensitive sites. Establish well-marked trail systems and educate clients about low-impact nature tourism protocols and regulations.

Good practice guidelines are readily available for design, operation and siting of tourism facilities. Project financed operations should conform to international standards as promoted by ecotourism professional associations and NGOs.




Over-harvesting of natural products such as mushrooms, firewood, medicinal herbs

Reduced biodiversity and productivity

Operators need to educate clients and enforce regulations on harvesting of natural products.

Guides and tour operators should be educated about existing regulations for harvesting of natural products and be held accountable for transgressions by clients.


Residual Impact Assuming Full Mitigation: LOW

Potential for adverse environmental impact: LOW


3. 15 Education, public health, social services (clinics, training centers)

Overall Potential Impact: LOW




Potential Direct Impacts

Potential Indirect Impacts

Consequences

Mitigation Required

Remarks

Site disruption (temporary)




Erosion, sedimentation and degradation of surface waters

Appropriate site selection and effective site preparation methods in conformance with existing codes

The community should have final say in the siting of facilities




Social disruption

Disturbance to community harmony

Appropriate siting and access to avoid congestion and creating a nuisance to neighbors.

Effective community consultation can minimize this threat

Waste generation, water pollution




Sickness and increased health costs, reduced productivity, loss of potable water supplies and degradation of aquatic systems

Installation of proper sanitation facilities and adequate provisions for waste storage and removal

Maintenance costs need to be taken into account in project planning.


Residual Impact Assuming Full Mitigation: NONE

Potential for adverse environmental impact: LOW


3.16 Financial and legal services (equipment leasing, micro-credit, accounting, business planning)

Overall Potential Impact: LOW




Potential Direct Impacts

Potential Indirect Impacts

Consequences

Mitigation Required

Remarks

Services for accounting and planning would have no direct impacts

Equipment leasing and microcredit loans would be evaluated the same as other sub-projects depending on the nature of the activity to be financed.




Review of proposals for equipment leasing and microcredit by same standards and criteria as sub-projects.





Residual Impact Assuming Full Mitigation: NONE

Potential for adverse environmental impact: LOW
The VIP-2 will finance a broad range of sub-projects that involve rehabilitation of local infrastructure and investment in activities that have social and economic benefits to rural communities. To facilitate the screening of potential subprojects for potential environmental impacts, Table 4 provides a summary of the environmental components that may be effected by the various kinds of sub-projects that may be proposed. Along with Table 3 and additional guidance on project mitigation provided in Guidelines for Environmental Review of Micro Projects, this provides guidance to project staff for determining the focus of necessary sub-project environmental review. Appendix B provides lists of project types that, according to national regulations, are subject to environmental assessment and those for which environmental assessment is not required.
Table 4. Project Activities Affecting Different Components of the Environment.

Horizontal Axis

1. Expand cultivated areas

2. Irrigation

3. Fertilizer/pesticide use

4. Increase livestock

5. Confined livestock

6. Open grazing



7. Aquaculture

8. Agro-processing

9. Workshops

10. Forestry

11. Mineral/gemstone

extraction.

12. Sand and gravel


13. Biogas production

14. Micro-hydro energy

15. Storage facilities

16. Building renovation

17. Health facilities

18. Road repair







Sub-Project Activities

Environmental Components

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

Physical Environment

Microclimate

m




















































Air quality







l



m







l

m










m




l

t




t

Water quality (chemical)

m

H

h

m

h







h



















m

t




m

Water quality (physical)




H













h



















h













Soil erosion

m

H




h

h

m










m

m

m
















m

Soil fertility degradation

m




m














































Salinization




H

















































Waterlogging




H

















































Increased runoff

m







h

h

m





































Groundwater quality

m




m

m

m








































Terrestrial Ecosystems

Biodiversity loss

h







h




h







l




























Natural habitat loss

h







h




h







l




























Forest degradation










h




h







l




























Pasture degradation










h

m

h





































Invasive species/ weeds

m




h

h







h


































Aquatic Ecosystems

Biodiversity loss

l




h







m






















m













Natural habitat change




H

h

m

m

l






















m













Exotic invasive species







h

h




h






















l













Sedimentation

m




l

h

h



















h




m




t




m

Socioeconomic Environment

Human health and safety







h













m



















m










Food contamination







h














































Increased Flooding

m







h











































Increased landslides

m







h






















h



















Desertification

m







h




m




































h = relatively high potential impact

m = relatively moderate potential impact

l = relatively low potential impact



t = temporary or transitional impact

5.5 Potential Cumulative Impacts
Financing under the VIP-2 will be available to more than 150 Aiyl okmotu in all oblasts of the Kygyz Republic. The majority of sub-projects are expected to involve renovation, rehabilitation or development of community infrastructure. Sub-projects supporting small and medium enterprises will also be eligible but will likely represent a minor fraction of the overall portfolio. The majority of sub-projects will be small, in the range from US$ 500 to 10,000.
The large number of small grants for diverse purposes that are disbursed widely throughout the country are not expected to generate significant cumulative environmental impacts. In the case of social and market infrastructure investments, small workshops, service sector enterprises and small agro-processing activities, cumulative effects can be avoided by ensuring that current building codes and land use regulations are followed and that waste discharges fall within the acceptable range defined by existing regulations. Discharge of processing wastes into water bodies and landfills should be monitored to ensure that the content and quantities remain within permitted limits. Independent monitoring of surface and ground water quality and quantity should be routinely done to detect contamination.
The sectors where projects are most likely to have cumulative effects in spatial or temporal contexts are in agriculture, livestock and, perhaps, forestry (woodlots). In the case of projects providing agricultural inputs such as fertilizers and pesticides, both the total area and the location of subprojects need to be taken into account to ensure that local carrying capacities for livestock are not being exceeded and the absorptive capacities for fertilizers and other inputs remain within acceptable limits. Within the localized regions (aiyl okmotus) where projects will be implemented, the project should seek input from the MAWPI extension services, the rangeland management authority and the SAEPF monitoring authorities in developing estimates of livestock carrying capacity and land use plans for agriculture. Water resources should be assessed in terms of both quantity and quality as a basis for evaluating investments in repair, renovation or extension of irrigation systems and in terms of their absorptive capacity in the case of enterprises that will generate waste discharge or create runoff. The most effective remedy for avoiding cumulative impacts on soil and water resources is pre-emptive planning that assesses the limits of land and water resources available within a localized region and sets limits on the number of projects that can be supported within these constraints.
In both agriculture and livestock projects, extension services should be consulted in establishing proper crop rotation, stocking rates and grazing rotation cycles to avoid long term degradation of natural vegetation cover and the attendant consequences ( e.g. erosion, desertification, land destabilization). With irrigation as with application of pesticides and chemical fertilizers, the best way to avoid cumulative negative impacts is to set and monitor appropriate application levels and to monitor soil and water quality to quickly detect where safe levels may be being exceeded.
Community forestry projects such as the establishment of woodlots to meet household energy needs should be sited on lands that are already degraded and in need of rehabilitation rather than displacing existing healthy or recoverable natural forests. The extension services of the Department of Forestry and MAWPI should be involved in identifying suitable locations for wood lots and in determining appropriate cutting and harvest cycles and methods that do not lead to temporary but potentially severe land erosion, increased erosion and stream sedimentation.


    1. Mitigation

Mitigation of potential environmental impacts of the sub-projects anticipated will not be costly and can, to a large extent, be addressed through project design and the incorporation of existing codes, guidelines and regulations into project implementation. In the case of some activities such as application of pesticides and fertilizers, intensification and diversification of agriculture and livestock, the extension services of MAWPI can provide guidance and relevant training to project implementers. In the case of agro-processing the anticipation of waste components and quantities and effective planning for waste treatment and safe disposal can effectively minimize impacts.


For the range of projects anticipated, effective monitoring by SAEPF and other appropriate civil authorities (e.g. MoH, MAWPI, Forestry Department, rangeland management authority) can ensure that potential impacts will be minimized or avoided.


    1. Potential Residual Impacts

Residual impacts are those that remain after all mitigation has been done. These are the trade-offs for the benefits achieved through the project. If full and effective mitigation is incorporated in the sub-projects the overall residual effects will be few and insignificant. Table 5 provides a summary of residual effects.


Table 5. Potential Residual Impacts.


Sub-Project Group

Probable Residual Effects

Significance

Agricultural diversification or specialization

Chemical runoff in surface waters, displacement of native flora and fauna, erosion and sedimentation

LOW

Small scale agro-processing

Lower surface water quality

LOW

Handicrafts

None

NONE

Tradesman Workshops

Solid and chemical waste accumulation, requiring disposal

LOW

Handicrafts

None

NONE

Woodlots

None

NONE

Small scale mining and hydro-power production

Disturbance of land cover, sedimentation

LOW

Building renovation and rehabilitation

None

NONE

Small scale irrigation and water supply

Erosion and sedimentation

LOW

Support services

None

NONE

Transport and communications

Noise, lower air quality

LOW

Trade and Storage Facilities

None

NONE

Recreation and Tourism

None

NONE



6. ENVIRONMENTAL MANAGEMENT
6.1 Category A and Category B Sub-projects
The majority of sub-projects anticipated will involve the renovation or improvement of community infrastructure. None of these are expected to be placed in the World Bank's Categories A or B. Possible sub-project proposals that would require a full environmental impact assessment are requests for pesticide application and small scale mining or quarrying activities. Some agricultural intensification and agro-processing enterprises may require Category B environmental evaluation and environmental management plans.
To ensure that adequate and appropriate environmental review and mitigation is carried out the VIP-2 will establish procedures for screening and scoping of sub-project proposals including, as appropriate, consultation with local state environmental inspectors (SAEPF). Based on preliminary review of the potential impacts and the scale of sub-projects (screening and scoping) and in consultation with SAEPF experts at raion or oblast level, the VIP-2 would provide technical assistance to proponents in determining the level of environmental analysis required and the costs of environmental assessment or management plan development would be included in the sub-project financing.
Because the scale of VIP-2 sub-projects will be modest and their potential impacts will therefore be of limited scale it is likely that relatively few proposals, if any, will require Category A or Category B level assessment. A simple format for development of basic environmental management plans is provided as an attachment to Guidelines for Environmental Review of Micro Projects.


    1. Monitoring

Although the legal authority and responsibility of monitoring rests with the SAEPF and other civil authorities (e.g. MoH, MAWPI) the capacity for monitoring and enforcement of these agencies is limited, especially in the rural areas where the majority of project activities will be carried out. The VIP-2 will, therefore need to ensure that an effective monitoring program is built into the projects it finances and paid for under the project. For sub-projects with potential for significant impacts, a monitoring plan would be required as part of the documentation for sub-project approval (see format attached to Guidelines for Environmental Review of Micro Projects). The results of monitoring would be taken into account in consideration of subsequent requests for financing. In addition, as part of its regular supervision missions, the World Bank should monitor a sub-set of subprojects for compliance with mitigation described in environmental management plans.


6.3 Environmental Capacity Development
6.3.1 VIP-2 Environmental Capacity
To ensure compliance of VIP-2 financed sub-projects with existing environmental regulations and those that may be promulgated in the future, the VIP-2 should hire an environmental specialist or contract with a qualified non-governmental organization to: provide guidance on initial project screening and review; develop terms of reference for sub-project review or assessment; review environmental management and monitoring plans submitted as part of the sub-project appraisal process, and; periodically determine that monitoring is being carried out to appropriate standards.
Activities to be carried out by the environmental specialist or contractor would include:


  • review of applications for sub-project financing (whether or not these require permits from SAEPF) to identify potential environmental impacts and carry out field inspections as needed;

  • review of sub-projects requiring an environmental assessment under SAEPF or World Bank guidelines;

  • develop terms of reference for environmental assessments for sub-projects for which these are required;

  • review environmental assessments, environmental management and monitoring plans for sub-projects requiring them;

  • provide guidance to sub-project proponents on environmental mitigation that can be incorporated into project implementation;

  • monitor all sub-projects requiring an environmental assessment to ensure that mitigation is being carried out as planned and no unidentified effects have occurred;

  • selectively undertake field visits to sub-projects for which environmental clearance permits were required to monitor compliance;

  • randomly carry out field visits to projects that do not require environmental clearance permits to ensure that acceptable environmental standards are being met.

The environmental specialist or contractor will ensure that applicable national standards and guidelines are being achieved or followed. Where multiple sub-projects are being carried out in geographical proximity, assess the possible cumulative effects on the environment (in particular natural habitats, forests, soil and water quality).



The environmental specialist or contractor will provide guidance and backstopping to VIP-2 field officers and aiyl okmotu Investment Councils (LICs) on the application of project environmental screening procedures to sub-project proposals.
6.3.2 VIP-2 Staff
Staff of the VIP-2 Project Management Unit and field officers based in the oblasts will not be, primarily, environmental specialists. In order to provide appropriate advice and guidance to LIC's, the VIP-2 field officers and PMU headquarters staff should be generally knowledgeable about the potential impacts of various types of sub-projects, the types of projects that are ineligible for financing, the requirements of SAEPF for environmental clearance at oblast level and the general procedures for screening and scoping of sub-projects as outlined in the environmental guidelines that form part of the VIP-2 Operational Manual (Guidelines for Environmental Review of Micro Projects).
6.3.3 Aiyl Okmotu Investment Councils
As the institution with primary responsibility for identifying and prioritizing potential sub-projects to be financed under the VIP-2 the LIC's are the project entity with the initial responsibility for project screening and for making recommendations for project financing. With guidance provided by VIP-2 field officers, backstopped by the environmental specialist or contractor, the LICs will need to become operationally familiar with project environmental screening criteria and project requirements for environmental management, mitigation and monitoring.

6.3.4 Training
To ensure that all elements of the VIP-2 management structure (LICs, Field Officers, PMU Staff) are fully aware of the environmental screening, assessment, management and monitoring activities that are incorporated in VIP-2 implementation, the project will need to invest in appropriate training for each of these links in the management chain. The Project plan for environmental training is and capacity building provided in Appendix C.
The PMU staff need to be generally aware of the procedures established for environmental screening, scoping, assessment, review, management, mitigation and monitoring as described in the VIP-2 Operational Manual (see Guidelines for Environmental Review of Micro Projects). They also need to be aware of types of projects that are ineligible for financing under World Bank Guidelines and the general procedures and costs that may be associated with carrying out environmental assessment of potential Category A or B subprojects. Appropriate guidance has been included in the project Operational Manual.
VIP-2 Field Officers need to be familiar with the environmental screening procedures incorporated in the VIP-2 Operational Manual for initial project review that will determine the level of environmental assessment a given sub-project may require. They should also be generally aware of the kinds of environmental problems that may be associated with different types of projects and the kinds of mitigation options that may be required to address them. They need to be familiar with the structure and general content of environmental management plans and environmental monitoring plans that may be required for some types of sub-projects. They need to be aware of SAEPF procedures for environmental review and clearance of those projects requiring environmental review as well as any reporting or monitoring responsibilities of the project proponent to assure compliance with national permit requirements for waste discharge or conformance with other environmental standards.
The LICs will need to be familiar with the sub-project screening methods and criteria that are included in the VIP-2 Operational Manual (Guidelines for Environmental Review of Micro Projects) and project requirements for including appropriate mitigation and monitoring in the costs to be financed by the VIP-2. They will also need an understanding of the content of environmental management and monitoring plans and the general nature of mitigation requirements for "typical" sub-project investments. They need to be generally aware of SAEPF requirements for environmental clearance and the permitting process for waste discharge. They need to be aware of the MAWPI and MoH roles in monitoring and enforcement of water quality standards
To achieve the level of awareness among the primary project constituents required to accomplish effective environmental assessment, review, management and monitoring of VIP-2 financed subprojects, three training components should be included in the VIP-2 project design.
Component 1: The target audience is VIP-2-PMU Staff. They should participate in a two day training course on: (i) national and World Bank requirements for environmental assessment, mitigation, monitoring and reporting; (ii) the screening and scoping procedures described in the VIP-2 Operational Manual; (iii) the generic procedures for environmental assessment required by the World Bank and national authorities (SAEPF); (iv) monitoring and reporting requirements of the World Bank for sub-project supervision.
Component 2: The target audience is VIP-2 Field Officers and oblast level SAEPF personnel. They should participate in a three day training course designed to familiarize participants with: (i) checklists and screening criteria included in the VIP-2 Operational Manual for identifying potential project impacts; (ii) the content of environmental management plans that may be required of some project types; (iii) the content of environmental monitoring plans that may be required for some project types and the responsibilities of the VIP-2, SAEPF and other agencies in seeing that monitoring is carried out to acceptable standards. The course should be designed in a seminar/workshop format with a one day field trip to observe practical examples of impacts of activities such as those anticipated to be financed under VIP-2 sub-projects and mitigation measures that are being employed.
Component 3: The target audience is members of LICs, and from those oblasts where such SAEPF initiated programs exist, “public environmental inspectors”. Training workshops should be carried out at oblast level bringing together at least one member from each LIC and public environmental inspectors from the Aiyl okmotu where the VIP-2 expects to establish a program during the initial phase of the VIP-2. Course participation should include state environmental inspectors from SAEPF who are posted in the raion administrations where project activities are planned to assist in developing a common knowledge base and practical working experience between the statutory regulatory authorities (raion-based inspectors) and the LIC members.
The training should consist of a 2-3 day seminar/workshop with a one day field trip to observe local environmental problems similar to those that might be anticipated in unmitigated VIP-2 sub-projects. The training course would include: (i) checklists for project environmental screening; (ii) examples of best practices to be incorporated in representative types of projects to mitigate impacts; (iii) examples of ineligible projects due to high environmental impacts or mitigation costs; (iv) examples of environmental management plans for project types anticipated locally, and; (v) monitoring plans.

Appendix A



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