220 KV TRANSMISSION LINE AKHALTSIKHE-BATUMI

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1 220 KV TRANSMISSION LINE AKHALTSIKHE-BATUMI ENVIRONMENTAL AND SOCIAL IMPACT ASSESSMENT TERMS OF REFERENCE

2 Transmission line Akhalsikhe-Batumi Georgia Terms of Reference for Tender docs and ESIA 2 1 PROJECT OVERVIEW 1.1 BACKGROUND Clean Energy Group, Tata Power International and International Finance Corporation (IFC) Infraventure are jointly developing the Adjaristsqali Hydro Power Cascade Project in the autonomous republic of Adjara, Georgia, with a planned total installed capacity of up to 341 MW. The special purpose vehicle Adjaristsqali Georgia LLC (AGL) has been established to manage the development of the project. The project is planned with a total of three power stations, the 6 MW Skhalta power station, the 185 MW Shuakhevi power station and the 150 MW Koromkheti power station. Construction for the Skhalta and Shuakhevi power stations started in the summer of In order to connect the Shuakhevi and Koromkheti power stations to the grid, it is planned to construct an approximately 150 km double circuit 220 kv Overhead Transmission Line (OHTL), connecting the sub stations in Akhalsikhe and Batumi. GSE, the grid operator in Georgia, wants to construct the transmission line to strengthen the grid stability in the Adjara region. The government of Georgia approached the World Bank (WB) with a view to possible participation in the financing of the Overhead Transmission Line. The WB has expressed interest in participation provided that the scheme meets certain standards and procedures. The whole newly installed OHTL will be owned and operated by Georgian State Electricity (GSE), the grid operator in Georgia. The tender and detailed design for the OHTL as well as the Environmental and Social Impact Assessment (ESIA) is financed and developed by Adjaristsqali Georgia LLC, the owner of the hydro license on the Adjaristsqali River. All the documents will be developed to comply with WB standards. The detailed design and ESIA study will be developed by the ESIA team in close cooperation with the design team integrating the environmental aspects into the final route selection for the transmission line. The procurement documents will be submitted to GSE and the WB for approval. GSE will responsible for the construction and commissioning of the OHTL including land acquisition. 1.2 PROJECT DESCRIPTION The power stations will be connected to the grid through an approximately 150 km long 220 kv OHTL connecting the sub stations in Batumi and Akhalsikhe. The OHTL will strengthen grid access to Batumi and reduce the risk of outages in South East Georgia. A routing study to identify a

3 Transmission line Akhalsikhe-Batumi Georgia Terms of Reference for Tender docs and ESIA 3 feasible route for the transmission line from an environmental and technical point of view was undertaken in the autumn of 2012 by Mott MacDonald (UK) and one segment of the route was updated in June The route has been approved by GSE. To help ensure conformity with this parameter, the OHTL routing corridor is planned to a width of 500m (see ANNEX 1 for further details). The construction of the OHTL is being designed closely with the construction on the powerhouses to ensure both the OHTL and the hydro schemes are completed at the same time. In addition to the construction activities, AGL has ensured compliance with the design requirements of the associated ESIA document by acquiring the assistance of experienced local Georgian personnel with international specification and procedures supplied its own team of management. The corridor planned for the OHTL has been selected to minimise its impact on social and environmental aspects of the project. Close consultation with affected persons and/or families will be crucial, AGL and GSE have a specialist team of Community Liaison Officers to help with project related information dissemination to the wider communities and act swiftly and positively to credible grievances received. 2 SCOPE OF WORK 2.1 OBJECTIVE AND OVERVIEW The objective of the present consultant assignment is to carry out ESIA covering the whole planned route including all associated infrastructure to facilitate construction. The ESIA will be undertaken in compliance with Georgian laws and requirements, international best practice including WB, IFC and European Bank for Reconstruction and Development (EBRD) standards. The ESIA shall address all the areas affected by the construction of the transmission line related to all phases of the project. The evaluation of impacts will be proportionately based on an assessment of their extent (local/regional/national), duration (short, medium or long term effects) and reversibility (temporary or irreversible effects). The ESIA will also include a Stakeholder Engagement Plan, Livelihood Restoration Framework (where applicable), Resettlement Action Plan (if applicable) and an Environmental and Social Management Plan (ESMP) that covers all phases of the project. To ensure compliance with relevant laws and standards, the work shall be carried out in close contact and cooperation with the GSE, AGL and the WB.

4 Transmission line Akhalsikhe-Batumi Georgia Terms of Reference for Tender docs and ESIA STUDY AREA The area of study should cover the planned transmission route as outlined in annex 1 including associated infrastructure that will be built to facilitate the construction of the transmission line. 2.3 KEY ESIA TASKS BIOPHYSICAL ASPECTS Forest resources and protection Forest areas may be replaced by the transmission line construction. In addition some fringes of forests would be affected by the construction of new roads, and other parts of the project. Georgian forest protection and land use regulations shall be taken into consideration, as well appropriate WB safeguard policies as they relate to potential impacts on forests and biodiversity Erosion, flooding and landslide risk Construction activities could increase the risk of erosion, flooding and/or landslides the project area due to heavy rains and avalanches during winter months. Particular consideration shall be given to erosion and sediment control, slope stabilisation, flooding around roads, agricultural land etc. to avoid adverse impacts from the project activities Seismic risk The region is known to have a medium level of seismic activity which makes it susceptible and vulnerable to various natural hazards inflicting potential considerable damages to infrastructure and environment. Several strong earthquakes have been recorded in the region in the past Wildlife Local fauna, including migratory birds which use the project area as a resting place, will be affected by the loss and fragmentation of habitats, increased noise levels, traffic and other increases in human activities during construction and operations. All impacts, both positive and negative, and their associated mitigation measures must therefore be considered Vegetation As previously mentioned, the whole Caucasus is particularly rich in biodiversity. The project must therefore explore opportunities to minimize impacts to sensitive plant species Cumulative impacts The project should assess the cumulative impacts of developing the transmission line.

5 Transmission line Akhalsikhe-Batumi Georgia Terms of Reference for Tender docs and ESIA KEY ESIA TASKS SOCIO-ECONOMIC ASPECTS Loss of agricultural land It will be considered how the land loss could be compensated, for instance through cultivation of new land in the surrounding areas Impacts on local and regional economy During the construction phase, there should be a modest positive impact on local employment linked to jobs for local people and provision of services to the workers. This could considerably increase the income level in the local communities provided adequate measures are taken to actually enhance locals employment. Also during the operational phase, new jobs may be created for local people linked to operation and maintenance of the power transmission lines and related installations. However, there is a remote potentiality for negative impacts on the economy in the form of lost agricultural production etc. All potential impacts on the local economy shall be considered. The construction phase may also entail an influx of non-local and international workers. Unless adequate mitigations are planned and implemented, this could cause pressure on the local infrastructure etc. and also cause tensions with the local population and increase health risks. Impacts and related mitigations in this respect shall be described and assessed. Potential positive or negative impacts on tourism, mining and other economic activities in the area (including existing users of the affected river resources) shall be assessed as well Community health potential impacts Any potential health impact of the transmission line shall be described and assessed Cultural heritage and landscape An assessment of potential interference between the various parts of the project and culturally significant sites such as churches, burial and archaeological sites etc. shall be carried out. Landscape impacts shall also be described and assessed Labor Any potential issue raised by the application of the appropriate standards to the WB, IFC and EBRD shall be described and assessed.

6 Transmission line Akhalsikhe-Batumi Georgia Terms of Reference for Tender docs and ESIA KEY ESIA TASKS LIVELIHOOD RESTORATION FRAMEWORK/RESETTLEMENT ACTON PLAN The purpose of the LRF, to be developed in conformance with the appropriate WB s OP/BP 4.12 and EBRD s PR5 and IFC s PS2, is to address the potential economic impacts of land acquisition. It shall include the following components: - Description of Project impacts on land, immoveable assets and people, including economic displacement as defined under OP/BP 4.12 and PR5 or PS2, - Legal analysis (what is the legal framework for compensation of affected properties in Georgia and what are the gaps, if any, with the WB s OP/BP 4.12, EBRD s PR5 and IFC s PS5), - Description of the land tenure regime in the Project area and related issues, - Entitlement framework (proposed compensation measures for each category of affected assets/people), - Assessment of potential livelihood restoration mitigations, including for example access to employment, support to small businesses, technical assistance in the agricultural field (honey production, livestock, greenhouses, access to markets), eco-tourism, etc. - Consultation with stakeholders on potential compensation and livelihood restoration measures, - Resettlement Action Plan, including costing, implementation arrangements and timeframe. 2.6 KEY ESIA TASKS STAKEHOLDER ENGAGEMENT The ESIA process shall include engagement with stakeholders and affected groups in conformance with the appropriate WB standards and EBRD s PR1 and PR10, and with Georgian regulations. The Consultant shall prepare an Engagement Plan, including: - The identification of all stakeholders and potentially affected groups, - The development of an engagement strategy covering the whole Project cycle, including the ESIA process, the construction and the operations phase for all relevant stakeholders, - The development of a grievance mechanism, - Records of any engagement activities carried out as part of the ESIA process, outlining the main environmental and social issues raised by stakeholders and how they were addressed within the ESIA process and documentation, - A disclosure plan (what is to be disclosed, how, when and for how long). The Engagement Plan shall be developed in two stages: - Submission of a draft Engagement Plan at the start of the ESIA process, - Submission of a revised Engagement Plan at the end of the ESIA process taking consideration of engagement activities carried out by the Consultant during the ESIA process. In addition to developing the Engagement Plan, the Consultant shall as a minimum implement the following engagement activities: - Preparation in local language of a brief kick-off leaflet (one page A4 B&W 2,000 copies), including:

7 Transmission line Akhalsikhe-Batumi Georgia Terms of Reference for Tender docs and ESIA 7 o A summary Project description, o A summary description of the ESIA process, and of the preliminary identified at the scoping stage, o A summary description of the engagement process and of the grievance mechanism, - ESIA scoping workshop with stakeholders, including representatives from potentially affected villages, at ESIA scoping stage: this one day workshop, to be organised and facilitated jointly by the Consultant and the Government of Georgia, shall take place at the District headquarters and include presentations on the Project and the scope of the ESIA, - Preparation in local language of a non-technical summary to be submitted together with the draft ESIA (5 to 10 pages, A4 B&W), - ESIA submission workshop with stakeholders, including representatives from potentially affected villages, upon submission of the draft ESIA; a second one day workshop, to be organised and facilitated jointly by the Consultant and the Government of Georgia, to take place at the District headquarters, which shall include presentations and discussions on the findings of the draft ESIA. 2.7 KEY ESIA TASKS ENVIRONMENTAL AND SOCIAL MANAGEMENT PLAN (ESMP) Based on the findings of the impact assessment, the Consultant shall develop an ESIA report, including an Environmental and Social Management Plan (ESMP) in conformance with the WB s OP/BP 4.01 Environmental Assessment, and EBRD & IFC Standards focussing on: - Measures to prevent and mitigate any potential adverse environmental and social impacts during the construction and operation phases of the transmission line - Measures providing environmental benefits and improving environmental quality and biological diversity, if realistically possible. - Measures that could facilitate and/or provide opportunities for socio-economic benefits and improvements, if realistically possible. - Monitoring programs to be implemented during the construction and operation phases. - Emergency procedures and management plans to address safety issues like pollution control, containment for potential accidental pollution incidents etc. for implementation during the construction and operation phases. - Outline of a public information programme to inform affected people on the progress and environmental and social impacts of the project. 3 DELIVERABLES AND TIMEFRAME Deliverables for December 31 st 2013 deadline: Schedule of report submission and workshops: - Month 0 : Notice to proceed, - Month 1: o Draft stakeholder Stakeholder Engagement Plan, o Scoping leaflet, o Scoping workshop

8 Transmission line Akhalsikhe-Batumi Georgia Terms of Reference for Tender docs and ESIA 8 - Month 2 to 5: Field investigations and ESIA / LRF development - Month 6: o Draft ESIA report, including ESMP, o Draft LRF/RAP, o ESIA leaflet, o ESIA Workshop, - Month 12: o Final ESIA report, including minutes of public consultation at the initial stage of ESIA and at the stage of draft final ESIA report, o Final LRF/RAP, including minutes of stakeholder consultation process. Final Stakeholder Engagement Plan updated to reflect engagement undertaken as part of the ESIA. The ESIA team and the team of engineer conducting the detailed design of the transmission line are expected to coordinate their work closely and attend bi weekly meetings to ensure coordination of the working parties. 4 PROJECT TEAM The following is the minimum experience and expertise required for this Assignment. - a senior ESIA team leader, with at least 10 years of experience in environmental and social impact assessment related to transmission line developments if possible in transition countries - a social specialist with at least ten 10 years experience working with social issues associated with design and construction of HV transmission lines - a landscaping and visual specialist preferably with 10 years experience working with visual and landscaping issues associated with the construction of HV transmission lines - a biodiversity specialist with at least 10 years experience working with bio diversity issues associated with the construction of HV transmission lines - a social specialist, with significant experience in transition countries, land use issues, and social issues raised by hydropower development; - other local experts with at least 5 years experience in a) transmission line engineering, b) public consultations, and c) ESIA.

9 Transmission line Akhalsikhe-Batumi Georgia Terms of Reference for Tender docs and ESIA 9 ANNEX 1 Map 1: Batumi substation Keda

10 Transmission line Akhalsikhe-Batumi Georgia Terms of Reference for Tender docs and ESIA 10 Map 2: Keda Zamleti

11 Transmission line Akhalsikhe-Batumi Georgia Terms of Reference for Tender docs and ESIA 11 Map 3: Zamleti Beshumi

12 Transmission line Akhalsikhe-Batumi Georgia Terms of Reference for Tender docs and ESIA 12 Map 4: Beshumi Akhaltsikhe

13 Transmission line Akhalsikhe-Batumi Georgia Terms of Reference for Tender docs and ESIA 13 Map 5: Akhaltsikhe - Substation

14 ANNEX 2 Suggested Outline of the ESIA Report EXECUTIVE SUMMARY Introduction Technical and Environmental Standards and Regulations Environmental Screening Public Participation Sensitive Environmental Receptors and Potential Impacts Project Alternatives Project Description Environmental and Social Impact Assessment Methodology Environmental and Social Baseline Expected Impacts and Mitigation Environmental and Social Management Plan Operation of the Transmission Line (Not more than 10 pages) CHAPTER 1. Introduction CHAPTER 2. Legal and Policy Framework CHAPTER 3. Technical and Environmental Standards and Regulations CHAPTER 3. Environmental Screening CHAPTER 4. Physical and Natural Environment CHAPTER 5. Sensitive Receptors and Potential Impacts CHAPTER 6. Impact Mitigation CHAPTER 7. Environmental and Social Management Plan Annex 1 Environmental and Social Management Matrix (mitigation and monitoring tables) Annex 2. Public Consultation Annex 3. References Annex 4. Maps, Graphs, Pictures

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