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REPUBLIC OF UZBEKISTAN

KARSHI PUMPING CASCADE REHABILITATION PHASE-I PROJECT

ENVIRONMENTAL ASSESSMENT

EXECUTIVE SUMMARY

January 16, 2001

CONSULTANTS:

Various national and internationalUnder Management of the Project Implementation Unit(Team Leader R.J.P.M. Platenburg, Royal Haskoning)

REPUBLIC OF UZBEKISTANMINISTRY OF AGRICULTURE AND WATER RESOURCESPROJECT IMPLEMENTATION UNIT

Karshi Pumping Cascade Rehabilitation Phase I Project 2Environmental AssessmentExecutive Summarw

KARSHI PUMPING CASCADE REHABILITATION PHASE-I PROJECT

Environmental Assessment and Management Plan

INTRODUCTION

The Government of Uzbekistan has requested the World Bank to finance the rehabilitation of the KarshiPumping Cascade (KPC). . The overall objective of the Karshi Pumping Cascade Rehabilitation Project(Phase I) is to increase the reliability, efficiency, and sustainability of the pumped water supply fromthe Amu Darya to the Karshi irrigated command area (400,000 ha.) in Kashkadarya Oblast on whichthe livelihood, employment and incomes of about 1.5 million people depend. Thereby it avoids apotential social catastrophe in case of a complete or partial breakdown of the KPC. The KPC is themain source of water supply in the Oblast for irrigation, domestic and industrial uses.

The Government of Uzbekistan with support from the World Bank and a grant from the Government ofJapan ("PHRD Grant") has facilitated the preparation of an Environmental Assessment (EA). Thisactivity has been managed by the Project Implementation Unit (PIU) under the Ministry of Agricultureand Water Resources (MAWR). The land on which KPC is located is in Tukmenistan territory and it isleased by Uzbekistan. The land lease agreement was signed by the two countries in April 1996.Uzbekistan is responsible for any environmental issues related to the KPC. Any issues that may arisewith Turkmenistan will be dealt with through the Working Committees in accordance with Article 3 ofthe 'Agreement on Compensational Land Use' signed on April 17, 1996.

The project is a category B project according to the World Bank Operational Policies (OP 4.01). Therehabilitation works of existing infrastructure are not considered to generate significant negativeenvironmental impacts. In fact, mainly considerable positive environmental impacts are predicted forthe Karshi command area, certainly in case the proposed institutional reforms would be implementedduring the subsequent phases of project implementation.

PIU submitted the EA to Goskompriroda (State Committee for Natural Resources) for state ecologicalexpertise (SEE, i.e. review and clearance by Goskompriroda) on December, 27 2001. SEE wascompleted and approved by GosKompriroda on January 14, 2002.

INSTITUTIONAL FRAMEWORK

Irrigation and drainage sector. The institutional set-up of water management in Uzbekistan is complexand highly centralized. The most important central level institution in the field of irrigation and drainageis the Ministry of Agriculture and Water Resources (MAWR). The ministry has subordinated executivebodies at the provincial (oblast) and the district (raion) level. Activities related to water managementand land reclamation are the responsibility of a First Deputy Minister.

Within the MAWR the Republican Association UZVODREMEXPLUATATSIA is responsible for themanagement, operation and maintenance (MOM) of 17 large infrastructural complexes of strategicimportance or inter-provincial or transboundary nature. Among these are the Karshi Pumping Cascade(KPC) and the big (transboundary) Uzny collector. Two water management organizations are directlyresponsible to UZVODREMEKSPLUATATSIA:

* The Operation Directorate of the KPC (ODKPCJ for operation and maintenance of the KPC;* The Collector Drainage Network Directorate (with an operational relationship to OBSELVODKHOZ)

for operation and maintenance of the main collector drains.

Republic of Uzbekistan 01/28/02Ministry of Agriculture and Water ResourcesProject Implementation Unit

Karshi Pumping Cascade Rehabilitation Phase I Project 3Environmental AssessmentExecutive Summary

The Kashkadarya Oblast Irrigation Department (KOID in OBSELVODKHOZ) is responsible for operationand maintenance (O&M) of the irrigation distribution network within the irrigation command area.

The Dostluk Construction Department of GIDROMEKHANIZATSIA is responsible for the dredgingactivities in the Amu Darya and in the lead channel from the river intake to pumping station no. 1(PS 1).

The MAWR is responsible for project implementation under the direction of the Project Head, a DeputyMinister. Day to day responsibility for implementation rests with a Project Implementation Unit headedby a Director. The PIU will employ national and international consultants.

Environment sector. Many laws and regulations on environmental issues have been developed.The Law on Environmental Protection (1992), establishing a legal, economic and organizationalframework for environment protection, ensuring sustainable development and defining principles,including SEE. Although the KPC is located on a strip of land located on the territory of the Republic ofTurkmenistan, the Republic of Uzbekistan is responsible for any environmental issues related to theKPC.

The State Committee for Natural Resources i.e. Goskompriroda is a primary regulatory environmentalagency. Reporting to the Parliament directly, Goskompriroda is responsible for supervising,coordinating and implementing the state's control over environmental protection and the usage andrenewal of natural resources, not only at central but also at the oblast and rayon level. The mandate ofGoskompriroda is based on the "Regulation on the State Environmental Committee of the Republic ofUzbekistan' as approved by Parliament on 26 April 1996. .

The organizational structure of Goskompriroda consists of a central body in Tashkent, oblast and rayonbranches and agencies for scientific and technical support. In Tashkent, Goskompriroda consists ofvarious authorities and departments. The authorities have responsibilities in the field of protection ofair, water and land resources. The departments reflect other administrative and technicalresponsibilities related to environmental standards, environmental law, international relations,environmental fund, etc. Three remaining units concern economics, publicity and governmentalecological review. The latter has the responsibility for EA and SEE. The institutional capacity ofGosKompriroda is still quite weak.

Goskompriroda exercises the State Ecological Expertise (SEE) review for projects and programs withpotential adverse impacts to the environment, stimulates low waste technologies, arrangesimplementation of ecological regulations and standards, coordinates environmental programs,elaborates the structure for environmental monitoring, governs nature reserves, etc. As part of the SEEresponsibility, Goskompriroda approves regulations proposed by the environmental committees atvarious levels. It also issues permits for pollution discharge emissions and may prohibit projects andconstruction works that do not comply with (environmental) legislation.

PROJECT DESCRIPTION

Project at full development. The proposed project is the first phase of a much larger undertakingenvisaged by the Government of Uzbekistan to rehabilitate not only the KPC but also to rehabilitate theirrigation and drainage (I&D) infrastructure in the command area and implement a program ofinstitutional reforms of the existing irrigation and drainage institutions, including but not necessarilylimited to the following major tasks:

;w Comprehensive rehabilitation of the KPC, including better sediment control;# The formation of Water Users Groups (WUG's) and Water Users Associations (WUA's) to take

charge of O&M in the areas of the former sovkhozes and kolkhozes (FSK's);> The rehabilitation of the l&D channels within the FSK's;



' The rehabilitation of the major l&D canal network, with an emphasis on water control andwater management;Institutional reform of the irrigation institutions supplying bulk water and possibly including:

c The transformation of the ODKPC into a public authority;c The establishment of Canal Coordinating Committees or Federations of WUA's to

operate and maintain the inter-farm networks between the Karshi Main Canal (KMC)and the areas under the jurisdiction of the WUA's;

o The transformation of the Collector Drainage Directorate into a Drainage Board;o The introduction of l&D fees to recover progressively the costs for l&D O&M, including

the electricity cost for pumping in the KPC;> Related agricultural, market and price reforms to provide the necessary incentive structure to

the farmers.

The current Phase 1 project mainly aims at urgent rehabilitation of the KPC and the establishment ofand support to WUA's in pilot areas of Karshi command area.

Karshi Pumping Cascade Rehabilitation Project (Phase 1). The cascade was constructed in the early1970's and its reliability has been reduced in recent years as the installed equipment nears the end ofits useful life. The project is focused on identifying and implementing the immediate rehabilitationneeds to assure continued water supplies through the cascade in the short to medium term.

The intake channel for the pumping cascade located on the Amu Darya is unregulated and subject toannual movements of this major river. Difficulties exist in ensuring that the river continues to supplywater to the intake canal under low flow conditions. In addition, despite continuous dredging, the20 km long unlined lead channel to PS1 suffers from siltation problems and is frequently unable toprovide flows to PS1 at an acceptable level. The seven PS's in series on the KPC lift water 160 mdirectly into KMC or storage in Talimarjan Reservoir. Total water supply from the KPC to thecommand area is about 4.5 km3. PS's 1-6 are located on the territory of Turkmenistan.

The main project components are:

A. Rehabilitation of Pumping Stations* Of the 36 pump units in PS's 1-6 the project would provide two new pump units and

rehabilitate 20 units, and general rehabilitation of PS7;* Related electrical works and the installation of a Supervisory Control and Data Acquisition

(SCADA) system;* Strengthening of the interior and exterior coating of the discharge pipelines;* Talimarjan workshop refurbishment and procurement of spare parts;* Rehabilitation of the pumping station and workshop buildings;

B. Sediment Management and Hydraulic Control* Improvement of the river intake and the construction of a gated regulator (overflow type) about

1.0 km downstream of the intake;* Dredging of two desilting basins: one to be located just upstream of the gated regulator and

one to be located just downstream of the regulator; erosion protection of the lead channel's leftbank from the river, probably by sheet piling; the remaining section of the lead channel up toPS1 will be restored to its original profile;

* Repair of the damaged canal lining between PS1 and PS2;* Repair of the concrete panels originally installed for the protection of the embankments of

Talimarjan dam; rehabilitation of the dam's drainage system; installation of piezometers etc.;

C. Institutional and Infrastructural Improvements in Karshi Command Area* Development of about fourteen WUA's, two in each rayon, in total about 28,000 ha. (less than

10% of total);* Selective rehabilitation of key l&D infrastructure for these WUA's up to a cost of about $

200/ha;

Republic of Uzbekistan 01/28102Ministry of Agriculture and Water ResourcesProject Implementation Unit


D. Project Management; Monitoring and Evaluation and Institutional Strenqtheninq* Procuring the services of engineering consultants to assist the PIU with detailed design,

construction supervision, and procurement for the KPC, the establishment of WUA's and theimplementation of the command area works, financial management and monitoring andevaluation (M&E);

* Increasing the capacity of the PIU in project implementation and preparation, and the capacitiesof (i) the Dostuk Construction Department in dredging operations; (ii) the ODKPC in O&M of thecascade; and (iii) the KOID and the raion level l&D organizations in irrigation scheduling;

* Undertaking preparatory studies for restructuring the ODKPC, KOID and rayon levelorganizations into financial autonomous organizations that will be operated on commercialprinciples.

CONSULTATIONS AND DISCLOSURE

A structured public participation and consultation process was followed during the project activitiesthrough the social assessment (SA) and the EA, inter-alia, through in-depth interviews, focus groupdiscussions and stakeholder seminars. Through the SA a wide range of recommendations werereceived on how to improve water resource management and operations in the Karshi command area.Stakeholders views were divided in two broad categories: (i) water users, especially farmers andheads of collective farms (shirkats), who believe the existing system should be reformed, in part byencouraging private sector initiatives and involvement of social structures, such as WUA's; and (ii)water management specialists who support strengthening the role of the state and the need for morepublic investment. However, there was a strong consensus that the Phase I project should beimplemented as soon as possible to secure the water supply to the irrigated areas and the other waterusers.

With respect to the EA, two scoping sessions with stakeholders were held in Tashkent and Karshi onrespectively 1 8 and 20 July 2001 to discuss specifically the environmental aspects of the project. Thefindings have been used to further determine the EA scope. Subsequently, the impact analyses werecarried out during the August - October 2001 period The EA report and draft executive summary weredrafted in November 2001. Both documents have been made available in Russian to facilitate transferof knowledge to and discussion of findings with regional and national organizations involved oraffected by the project. The EA findings and recommendations have been thoroughly discussed duringworkshops in December 2001 (December 18 in Dostiuk City, December 19 in Tashkent, December 20in Talimardjan, and December 21 in Karshi).

The final EA study report and its Executive summary report, in English and Russian, will be placed inthe World Bank InfoShop, made available at the World Bank office in Uzbekistan and will be widelydisseminated within Uzbekistan.

PRESENT STATE OF THE ENVIRONMENT

Amu Darya (river). The Amu Darya is one of the two major rivers, which feed the Aral Sea. It rises inthe Hindu Kush and experiences sumrmier floods due to snow melt. In the lower reaches, throughTurkmenistan and Uzbekistan, the river has a sand bed and meanders across a relatively wide plain. Itswidth varies between 1 km and 3 km and low flow channels are evident in the winter period. Out ofthe total annual flow of the Amu Darya, about 80 km3, Uzbekistan utilizes about 34 km3, mostly forirrigation. The rest is used by Turkmensitan and or flows to into the Aral Sea. The water quality of theAmu Darya is characterized by a salinity of about 0.6 g/l. The Amu Darya river has very high sedimentconcentrations (in the order of 2800 ppm) which has a significant effect on the KPC. Sediment loadshave increased during the past decade.

RepublicofUzbekistan 01/28/02Ministry of Agriculture and Water ResourcesProject Implementation Unit


Karshi Pumping Cascade. The KPC runs from its intake at the Amu Darya to Talimardjan reservoir nearthe irrigated lands in Nishan district (see Figure 1) and diverts about 5 km3 from the Amu Darya toKarshi command area. Most of the KPC is situated in Turkmenistan (up to PS6). The basicenvironmental conditions around KPC are mainly characterized by desert. Along the upstream part nearthe Amu Darya, lands have been cultivated during the last decades. There are fourteen irrigation off-takes from the KPC for irrigation in Turkmenistan, most at or below 1.0 m3/s and three off-takes of3.0-4.0 m3/s. The Hakims of the Lebap Oblast in Turkmenistan and the Kashkadarya Oblast inUzbekistan have taken the initiative to create a water protection zone along the KPC and pumpingstations (width 100/150 m).

In the area directly adjacent to the KPC lead channel which is located outside the irrigation area, somewater logging is being caused by the KPC (canal water levels higher than land level between PK 70 andPK 195). A drainage scheme, originally designed to intercept seepage water from the channel, andconsisting of a single tile drainage line, four pump stations and discharge pipe to the KPC, has beeninstalled directly after construction of the KMC (and before the implementation of the Turkmenneighbouring irrigation scheme) in order to reduce the effects of seepage from the canal. It must berecognized that a single tile drainage line has little effect on groundwater levels. Actually the drainagesystem is practically out of order.

Irrigation of 30,000 ha formerly unused land in Turkmenistan has been made possible by the off-takesfrom the KPC. Cultivation of unsuitable land, unsuitable irrigation practices including over-irrigation, andlack of a proper drainage network have led to an elevated groundwater table, water logging, soilsalinization, and damage of KPC canal lining. The Turkmen district administration Khokimiat of S. NiyazovEtrap claims that water logging and salinization of 4100 ha of the dekhan farms "Enish" has been causedby seepage from the KPC, an assumption which cannot be confirmed by the environmental consultants.

During the 25 years of operation 230 million m3 of sediment have been removed from the approachchannel to Pump Station 1 of which 79% - the sandy sediments dredged in the first reach of the channel- have been returned to the river, while 21 % have been deposited on 550 ha of disposal basins which arelocated, on marginal (desert-steppe) land alongside the channel. Sediment disposal in disposal basinslocated on marginal land is not considered a significant impact, although overflow of some basins due toinsufficient capacity and vertical drains sometimes have resulted in minor inundations.

Water diversions and sludge return to the river has decreased the river's sediment carrying capacity andcontributed to the elevation of the river's longitudinal profile. It is suspected by the Turkmenadministration that the dredging operations for Karshi have caused significant erosion of the left riverbank. No research has yet been undertaken to verify this assumption. However, it must be recognizedthat the sediment load of the Amu Darya river has been increasing since years and that also the Karakumscheme in Turkmenistan may have contributed to this development.

Talimarjan Reservoir. The Talimardjan reservoir has developed as an environmentally very valuablearea. Talimarjan is part of two Water Protection Zones. Since the reservoir was created, two otherwater bodies have developed through flooding of two quarries. New habitats have established and bio-diversity has increased considerably. Fish has migrated via the KPC to the reservoir where the fishpopulation has increased and fishery activities now take place. A number of animal types live aroundthe reservoir. The Talimardjan reservoir and its surrounding areas have become important sites for waterrelated birds, including red list species. The area lies on the flyways of some important migrating birdspecies and is part of the routes between Siberia and Africa, the Arabian Peninsula and the IndianSubcontinent. Valuable plants have been observed as well.

Construction of Talimardjan reservoir has considerably improved the potable water supply of Kashkadaryaoblast. Daily water abstraction from the reservoir amounts to 200,000 m3 /d which covers 44% of theconsumption requirements of the interconnected communal, departmental and rural water supplysystems. The water in the Talimardjan reservoir meet potable quality standards. However, it has ratherhigh phenol content (0.02 mg/I), the origin of which remains unknown.


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Karshi Pumping Cascade Rehabilitation Phase I Project 8Environmentai AssessmentExecutive Summary

The turbidity (100 to 1000 mg/1) continuously exceeds standard limits for potable water supply. Otherindicators of temporary concern are total hardness, BOD and COD. A water treatment plant will startoperation near the outlet of the Talimardjan reservoir. As a result Talimardjan reservoir has gainedvarious un-official functions like nature function, fishery function, drinking water function. However,storage for irrigation water supply is widely regarded as its sole official function.

Karshi command area. The Karshi main canal (KMC) - which begins just downstream of Talimarjanreservoir - commands a large part of Kashkadarya Oblast. Some decades ago Karshi was establishedby the former Soviet Union especially to produce cotton on a large scale. The KMC has been wellmaintained and functions satisfactorily. However, during the last 10 years, the other parts of theirrigation and drainage networks and particularly the networks of canalettes (flumes) within the formersovkhozes and kolkhozes (FSK's) have deteriorated considerably due to a lack of funds for O&M. This,together with a breakdown of the water management practices within the FSK's, has resulted in highwater losses. The environmental conditions in the command area are therefore mainly characterized bythe poor status of wide spread land salinization and some waterlogging especially near canals.

Apart from the primary and secondary salinization due to irrigation and drainage practices, Karshi canbe considered an area in which large amounts of salt are mobilized underground (up to 30ton/halyear!), induced by infiltrating irrigation water. Eventually, water of much higher salinity isdrained by the collector drainage system. The soils are slightly to highly saline for over 60% of thecommand area. About 20% of the area is moderately to highly saline, while about 5% can beconsidered highly saline. The areas where crop cultivation is not possible any more are:

* scattered as relatively small saline plots throughout the command area; reasons may be insufficientland leveling and/or leaching practices; these saline plots can not be recognized on the remotesensing image as these are too small in size; at many locations farmers continue to cultivatedirectly around these saline plots rather than abandoning these lands.

* farms at the boundaries of the command area (in districts Mubarek, Guzar, Karshi, Kasan andNishan) and thus at the tail end of canals may structurally suffer from marginal land quality andsevere deterioration of the irrigation network; in extreme situations this leads to land abandonment,which has also been confirmed by the Social Assessment.

Lakes and sinks. The collector drainage water (CDW) from Karshi is mainly discharged by theSichankul and Yuzny collectors. Subsequently, the CDW ends up in the desert sinks Atchinsk andSichankul or through the Yuzny floodplain into the Amu Darya through Lake Sultandag. The desertsinks show gradually increasing salinities lAtchinsk about 15 g/l) which eventually results in a strongdecline in bio-diversity. The flow-through water bodies have rather stable salinities at relatively lowlevel (Sultandag 7 g/l, with locked spots of very high salinities).

All lakes show valuable bio-diversity in the form of fish and reeds. This especially holds true for thelarge Yuzny floodplain and the.large area covering Lake Sultandag. In general proper management ofCDW takes an optimal environmental development into consideration. As such it even replaces orcompensates part of the bio-diversity loss of the Aral Sea.

ANALYSIS OF ENVIRONMENTAL IMPACT

The Phase 1 project.Environmental impacts of the Phase I project are considered limited and generally positive. Allenvironmental issues with its characteristics are indicated in Table 1. The findings are based on ananalysis of the past and current impacts by the KPC on the surrounding environment and by thesurrounding environment on the KPC. The two main issues concern:

* Disposal of dredged material: the quantities are reduced as a result of the project; in additionoperation of the disposal basins will be improved and the disposal plan requires disposal areas



to be covered with sandy-loam and planted with vegetation to prevent wind erosion; storagespace is sufficient for 30 years of operation;

* The environmental hazards during rehabilitation/construction works in case these are notproperly managed by the contractors and/or not properly supervised.

The KPC Phase I project is a rather small step towards complete rehabilitation of the infrastructure ofthe KPC and its command area. Phase I mainly concentrates on the urgent KPC needs; here 22 of the36 pumping units in PS 1-6 would be rehabilitated as well as a general rehabilitation of PS 7. In thecommand area, rehabilitation works and improvement of water management would only be undertakenin pilot areas. These pilot areas cover less than 10% of the total Karshi command area. However,considerable positive impacts are expected from these pilot area interventions within their respectiveareas.

Full project developmentParticularly, the following two environmental issues would be of concern when considering the overalldevelopment of the Karshi command area: (i) water quality in the command area and beyond; and (ii)land salinization and land abandonment.

During the preparation of the proposed Uzbekistan Drainage Project two background scenarios havebeen assumed with realistic long-term (30 years) conditions. Scenario A represents a continuation ofthe current situation, which means without any major policy reforms and minimal investments inrehabilitation. Scenario C assumes a high level of economic and institutional development, includingthe long-term impacts from the institutional component of the project and including'high investments ininfrastructural works.

The scenario's have been studied separately but also in relation to the Phase I rehabilitation of the KPCand a full rehabilitation of KPC.

Water Allocations. For the Amu Darya, which is the source for the water supply to the project area, thepresent arrangements are that Uzbekistan and Turkmenistan are to equally share the Amu Darya tlowsmeasured at Kerki (just below Tajikistan). The share of Karshi project is 5 Bcm and the annualdiversions have averaged 4.7 Bcm over the last 10 years. The Talimarjan reservoir located in theproject area has a storage capacity of about 1.5 Bcm. The water pumped by KPC during the non-vegetation period or when the water requirements are low is stored in the reservoir and used to meetthe requirements during the. peak period. Therefore, fluctuations in the river flows and conflicts inwater use between energy and agriculture sectors have relatively little affect on water deliveries to theproject area.

Water quality. The main conclusions of this analysis show that water quality and in specific watersalinities are not expected to change seriously on the short/medium run, but:

* in Scenario A "with project" ( the full-fledged KPC rehabilitation project but without l&Drehabilitation and restructuring of the water management organizations) would result in amaximum diversion of'irrigation water combined with continuing low water use efficiencies;therefore this alternative scores worst with respect to CDW salt load released to the Amu Darya(also compared to Phase I rehabilitation); however, this scenario would create better conditionsfor the flow-through lakes.

* in Scenario C considerably less irrigation water would be diverted from the Amu Daryacompared to scenario A; this would result in considerably less CDW flow and eventually insome 20% salt load reduction in the Amu Darya; however, the serious reduction in CDW flowthrough the Yuzny floodplain and Lake Sultandag would affect their bio-diversity seriously aslow flows create higher salinity levels;

The water quality analysis supports the idea that full project development IKPC and otherinfrastructure) should only be perused along with serious institutional and market reforms. Through

RepublicofUzbekistan 01/28/02Ministrx of Agriculture and Water ResourcesProject Implementation Unit

Karshi Pumping Cascade Rehabiiitation Phase I Project 10Environmental AssessmentExecutive Summary

integrated water management it is possible to find a balance between CDW disposal and biodiversityconservation / enhancement.

Land salinization and abandonment. In the short run a slight further deterioration of the land quality isexpected at basin level. In the long run the scenario studies show:

* that in Scenario A the current trends based on the current practices are expected to continue;this means that in general salinization is expected to increase slightly; small highly saline plotswithin the farm plots and large marginal lands will slightly grow in size.

* that in Scenario C the small salinized plots would be reclaimed (e.g. by means of land leveling),which would make them more suitable for agriculture; at the same time, (part of the) muchlarger tracks of marginal lands are likely to be abandoned as these can not be utilizedeconomically in a more open market system where, eventually, high water charges would haveto be paid;

For Phase I at pilot level it is evident that considerable improvements in water management andirrig.ation efficiencies are foreseen due the institutional support and partial upgrading of infrastructure.The direct impact on basin level is very small in terms improvement of environmental conditions.However, indirect effects through demonstration, etc. may be substantial.

The issue of actual abandonment of saline land would very much depend on the customs and opinionsof the farmers. It may depend on, for instance, to what extent the farmers are open to otheroccupations, to what extent they can cope with poverty, and to what extent they are socially linked tothe farming community. Karshi farmers have established themselves in the area only some decadesago. This may make them relatively open-minded for abandoning their land in favor of appropriatealternatives if available.

In a future with better management and open markets, the issue of land abandonment is expected tobecome very important for Karshi. The findings of the social assessment confirm that landabandonment takes place. Various farmers in Mubarek have taken up assignments as wage workerselsewhere. However, this is considered an extreme situation. It is proposed that this issue be taken upby the Social Assessment during the subsequent phases of the project.

COMPLIANCE WITH WORLD BANK SAFEGUARD POLICIES

As necessary, provisions have been made under the project to ensure compliance with the Bank'ssafeguard policies:

Environmental Assessment (OP 4.01). The project is essential for to ensure the reliable supply ofwater to about 400,000 ha of agricultural land and for the livelihood of more than 2 million people.The EA confirms that the project has indeed no significant negative environmental impacts, except forcertain environmental hazards quite normal during construction, which will be mitigated under theproposed environmental management plan (EMP). The PIU and an international team of consultantswould monitor the implementation of the EMP.

Natural Habitats (OP 4.04). The project would have a positive impact on natural habitats and it willnot adversely affect any protected areas. In fact, the project would implement the first phase of anenvironmental enhancement plan for Talimarjan reservoir.

Forestry (OP 4.36). There are no existing forest resources in the phase I project area. The project willin fact contribute to the forestry sector through the creation of a green zone between the reservoirand the by-pass canal.

Republic of Uzbekistan 01/28/02Ministry of Agricuiture and Water ResourcesProject Implementation Unit


Pest Management (OP 4.09). The project is not expected to directly or indirectly support or changethe use of pesticides.

Cultural Property IOPN 11.3). Since this is a rehabilitation project there is no danger thatarchaeological sites would be disturbed.

Indigenous Peoples (OD 4.20). No indigenous people would be affected by the phase I project.

Involuntary resettlement (OD 4.30). There is no need for resettlement under this project.

Safety of Dams (OP 4.37). Talimarjan reservoir is an off-stream reservoir with two embankments. Itsmain embankment is 9,745 m long and has a maximum height of 35 m; the second embankment is1,000 m long and has a maximum height of 36 m. International consultants have carried out a damsafety review through field inspection and a review of available reports. The Bank's Dams Specialisthas reviewed the consultants' report. There are no serious dam safety issues involved in Talimarjanreservoir. Some problems were identified and the necessary remedial works would be implementedunder the project.

Projects in International Waters (OP 7.50). The project is situated on the Amu Darya, which is aninternational waterway. The project would not change the quantity or quality of the water in the riverbasin because it is strictly a rehabilitation intervention. On request of the Government of Uzbekistan,the Bank notified the riparian states, Turkmenistan and Tajikistan about the project by letter of January9, 2001. No response has been received yet from these governments. The riparian states haveagreements for sharing Amu Darya water. Uzbekistan and Turkmenistan are to equally share the AmuDarya flows measured at Kerki (just downstream of Tajikistan). The share of the Kashi project is 5km3 and the annual diversions have averaged 4.7 km3 over the last 10 years. The water pumped byKPC during the non-vegetative period or when the water requirements are low is stored in the reservoirand used to meet the requirements during the peak period. Therefore, fluctuations in the river flowshave relatively little affect on water deliveries to the project area. Under the project, limitedrehabilitation of the KPC would be carried out, which would not result in an increase in the pumpingcapacity of KPC or in extracting additional flows from the Amu Darya. Altogether this reflects the factthat there are no issues related to international waterways caused by the rehabilitation project.

Projects in Disputed Areas (OP 7.60). The project area is not part of a disputed area. The intake andthe first six pumping stations of the KPC are located on a strip of land on the territory of Turkmenistan.Uzbekistan and Turkmenistan maintain an agreement whereby Uzbekistan leases from Turkmenistanthe strip of land on which these facilities are located for an annual payment of about US$ 12 millionand the free use of about 10% of the pumped water for irrigation in Turkmenistan.



Table 1 Potential impacts from the Karshi Pumping Cascade Rehabilitation Phase I Project activities

Rehabilitation Activities Physical Effect Environmental Impact Significant Remarksimpact ?

KPC

Improved river intake and the 40 % reduction of sediment load and consequently Less dredging and lower need for disposal of positiveconstruction of a new gated control reduction of sediment to be dredged dredged sediment Less recharge of dredgedstructure in the lead canal sediments to the river

Repair of canal lining in "uplift" Only on project infrastructure Requires removal and disposal of 7,000 m3 of no See constructionsections PK 310 to PK 389 concrete slabs activities

Protection (with gabions) of eroded Prevent further bank erosion Protection of adjacent areas positivecanal left bank at PK 367

Dredging

Improved dredging scheme Dredging efficiency improved and increased Protection of agricultural land adjacent to the positive Polders are dredgingoperational security of polders. Measures include disposal polders form inundation. material disposal sitesstrengthening polder embankments to avoid break having a drainagethrough and overfilling. system (mixture of

water and silt shouldbe separated) that areseparated each from

other byembankments).

Sludge disposal Disposal plan covers disposal in appropriated zone After disposal or reaching maximum height, Neutral to See constructionalong KPC and in polders; by pumping over sludge will be covered with sandy-loam (0.2-0.3 positive activities)distance if required m) and planted with grass, bushes, etc. to

prevent wind erosion

Pumping stationsReplacements and refurbishment of Performance quarantined short/medium term, long Positivepumps and motors term quarantine of 40% performance (phase I only) - Removal and disposal of hazardous materials

No to See constructionnegative activities

Strengthening of coating of discharge Avoid corrosion and leakage no See constructionpipelines activities

New motors in existing dredgers Improved efficiency and performances Less energy consumption, less air and water positivepollution

Rcpublic of Uzbekistan 01/28/02Ministry of Agriculture and Water ResourcesProject Inplementation Unit

Karshi Pumpinig Cascade Rehabilitation Phasc I Project 13Environmental AssessmentExecutive Summary

Rehabilitation Activities Physical Effect Environmental Impact Significant Remarksimpact ?

Other related activities (phase 11. MAWR i favor for phase IJ

Revetment made of gabions on the Prevention of erosion of the river bank Prevention of river bank erosion. Positive Socio- positiveleft bank of the Amu Darya at Kyzyl economic impacts for farmers adjacent to riverInot part of Phase I; proposed for bank.phase 11).

Replacement of mechanical and Limited or negligible effect on local groundwater positive butelectrical equipment: of drainage level very limitedsystem along KPC, including pumpsand discharge pipe lines; (not part ofPhase l; proposed for phase 11).

Completion of construction of the The rudimentary bridge is being used frequently by Improved communication and prevention of Positiveunfinished bridge at PK 63 (not now the local population and several accidents have accidentspart of Phase l; proposed for phase 11) been reported

Command Area Development in pilot areasEstablishment of water users Improved water management, considerable water Beneficial Combined with gradualassociation in pilot areas. savings on the long run. less state control and

. market/price reformSelective rehabilitation of irrigation and More efficient use of the existing irrigation and Reduction of irrigation water conveyance losses; Positive but Focus on poor statusdrainage systems drainage systems in 20,000 ha (5%) of the command more efficient on-farm irrigation, improved drainage limited at of canelletes / flumes.

area and reduced water logging and satinity (land basin levelconditions)

Environmental hazards due to construction activities

Construction activities are regular in sensitivity and generally small in size, and as such do not require particular environmental precaution. negative ifNevertheless, the risk of accidental environmental damage should be controlled, especially with regard to: not controlled

(i) the risk of spilling and groundwater or water contamination with fuels, oil and lubricants;jii) the risk of dangers to workers and of air pollution during application of exterior and interior coatings to the discharge pipelines;(iii) the disposal of construction and other discarded (hazardous) materials(iv) uncontrolled heavy traffic.



ENVIRONMENTAL MANAGEMENT PLAN

Environmental management plan. The general objectives of environmental management are:

* Implementation of measures to prevent or reduce any negative impacts to acceptablelevels;

* Implementation of measures that help ensuring that the environmental actions are inphase with engineering and other project activities throughout implementation.

* Implementation of measures to deal with risks that arise during construction andO&M stages;

* Supervising and monitoring significant issues during installation and operation.

All EMP issues and activities have been listed in Table 2. This table contains the mitigation /enhancement and monitoring measures as identified as well as the proposed responsible organizations.Total cost for the EMP amounts to about US$ 0.8 M in incremental investment costs, US$ 0.2 M/yearfor O&M and US$ 0.2 M/year for M&E.

Technical measures. The identified technical enhancement measures relate to some specificimprovements of pumping stations buildings. These are incorporated in the project design.

With respect to the waterlogged area adjacent to the KPC it is suggested that the Turkmen administrationenforces appropriate irrigation practices and a proper drainage system. The project will encourage co-operation between Turkmen and Uzbek authorities, ODKPC and Ministries of Agriculture and WaterResources in order to co-ordinate rehabilitation of the KPC drainage system and to determine the reach ofinfluence of both the KPC and the irrigation system.

Environmental due diligence. Environmental due diligence is incorporated in the projectimplementation to control the residual risk of accidental environmental damage and to prevent thenegative environmental impacts during construction. The contractor(s) and the supervising Engineer willhave the primary responsibility for due diligence. Mitigation measures are out in the EnvironmentalManagement Plan (EMP) and are reflected in the project's final designs and will be included tenderdocuments. Supervision, of EMP implementation, including activities requiring environmental duediligence will be done by the Environmental Management Unit within PIU. The construction risks to bemonitored will include, but not limited, to the following issues:

* handling of hazardous material as far as part of construction activities;* movement of machinery;* management of quarries and borrow areas, if any;* collection and safe disposal of hazardous residues and dismantled material,: big quantities of

electro-mechanical equipment and concrete slabs will have to be removed;* occupational safety and health;* management of pollution incidents.

Environmental enhancement. The ecological importance of Talimardjan area, due to the Talimarjanreservoir constructed as part of KPC, warrants the implementation of environmental protectionmeasures such as habitats protection and management of the Water Protection Zones. KarshiObselpriroda suggested the creation of a green belt of 500 m width along the 41 km long perimeteraround the reservoir for enhancing environment and social forestry. Instead, it is proposed to consider amore problem-oriented approach, consisting of:

* Green belt of mixed vegetation types on a 10-km long strip along the north-west border of thereservoir.



* Bio-physical revetment to stabilize water erosion patterns on the north-western shore of thereservoir.

* Planting mixed vegetation types in the area between the reservoir and the by-pass canalbelonging to the Water Protection Zone.

These measures would be beneficial for protection of the reservoir and the Water Protection Zone andalso for maintaining the habitats of rare and endangered species. It is recommended to leave thisenhancement measure as a serious option for at least the full-scale KPC rehabilitation project. Phase Imay incorporate a first phase of this enhancement. This should be feasible with a nominalenvironmental budget.

Monitoring measures . The environmental issues and mitigation measures recommended for monitoringconcern:

* transboundary traffic;* nature preservation at and around Talimardjan;* pilot areas with WAU interventions and l&D infrastructure rehabilitation;* monitoring groundwater level and water logging in agricultural areas on Turkmen territory; this

task is the responsibility of the Turkmen authorities;* monitoring land salinization and land abandonment;* monitoring water quality of KMC, in Karshi command area and especially the Karshi drainage

system and further downstream.

Moreover, environmental due diligence is required with respect to environmental management practicesduring and after rehabilitation of the cascade. In addition, some environmental monitoring will becarried out during project operation. These surveys include: (i) the disposal and utilization of dredgedmaterial for amelioration purposes; (ii) utilization of quarry nr. 4 near Talimarjan reservoir for fishproduction; (iii) long term river erosion on the Amu Darya left bank; and (iv) determining the origin ofphenol as observed in the Amu Darya water.

Transboundary communication. A large part of the KPC is located in the territory of Turkmenistan.Communication with the Turkmen authorities about the rehabilitation plans has been initiated byMAWR-PIU. The main issues concern the waterlogging in agricultural lands of Turkmenistan and thelong term river erosion on the Amu Darya left bank. Therefore, the EA proposes to develop acommunication strategy during Phase 1. Initiation of a common activity on groundwater levelmonitoring near the waterlogged areas and KPC would be an achievement. A number of project issuesincluding environmental aspects have distinct transboundary aspects. Some of these require bilateralco-ordination and for some of the issues bilateral communication at least would be preferred.

Institutional setting.

The responsibilities for EMP implementation relate to the following various phases of activities:

* Overall responsibility during the preparation and implementation phases will rest with theProject Implementation Unit (PIU) of the MAWR with an office in Karshi.

* An Environmental (Sub) Unit will be established within the local PIU for that purpose. The stafffor EMU would be recruited from institutes including ODKPC. The EMU will be supported by ateam of national and international consultants to ensure the scope and quality of environmentalmanagement including monitoring and to facilitate training. The team will, as a minimum,include expertise in natural environment/hydrology, pollution abatement and environmentalmanagement in large water resources development works.



The EMU would prepare an annual Monitoring and Evaluation (M&E) report. The EMU may sub-contract a number of training and monitoring activities to national or local environmentalinstitutes or local consultants

* Environmental protection measures related to construction activities will be specified in detail inthe various civil works and equipment supply and installation contracts. These contracts willbe prepared by the PIU with the assistance of international consultants, and will be reviewedby the EMU. During the construction phase these contracts will be managed by the Engineerdesignated in the contracts and supervised by the EMU

* Responsibility for general oversight and environmental auditing will rest with Goskomprirodaand they will receive regular progress and M&E reports.

* For the subsequent O&M phase (when the PIU will have been abolished) the EMUenvironmental capacity is likely to be moved to either the Karshi Oblast Irrigation Department(KOID) and,'or the Operation Directorate of the KPC (ODKPC). This would contribute tosustaining environmental capacity at local level.



Table 2 Summary Environmental Management Plan activities for Phase I project

Activity / issue / Environmentaf Mitigation measure Responsibility Extra Monitoring nneasure Responsibility Extrastage impact environmental environmental

cost (US$) for cost (US$1 for. Phase I only Phase I only

Rehabilitation project: design issuesCascade System No change in 0 Monitoring of water use and ODKPC/EMU 0

extraction of water reporting biannuallywhich reducesdownstream flow

Repair of canal None with proper The concrete may be Contractor/PIU Extra\ costs are Verification EMU 1.1lining disposal of broken crushed and reused for expected to be

concrete slabs other purposes; otherwise offset by useproper disposal sites would of materialbe identified.

Replacement of Discarded pumps Would be transferred to Contractor/PIU Extra\ costs are Verification and monitoring, and EMU (*pumps and motors and motors and Talimarjan workshop to be expected to be reporting biannually

other metals reused for other purposes offset by scrapand/or sold as scrap. sales.

Pumping stations Birds excrements in Repair pumping stations PIU will Window repair Verification EMU l*)buildings and windows incorporate in part of overallequipment project design design.

Pumping stations Sanitary hazards Rehabilitation of bathrooms PIU will Toilets are part Verification, review design EMU ()buildings in the buildings Incorporate in of overall

project design designTalimarjan Dam safety Repairs as identified. MAWR / PIU 0 Inspection and Monitoring MAWRReservoir Avoidance of high reservoir

draw down rates.Inspection of theembankment to verify thatthey are safe

Inundation of quarry None 0 Included in monitoring program EMUfrom reservoir



Activity / issue I Environmental Mitigation measure Responsibility Extra Monitoring measure Responsibility Extrastage impact environmental environmental

cost (US$) for cost 1US$) forPhase I only [Phase I only

seepage and nowused for fishproduction

Dredging Possible pollution Check if diesel dredgers still MAWR - PIU Verification and regular EMUfrom diesel dredgers may exist; phase out and Monitoring

use electrical driven units

Dredging Investigate possible MAWR - PIU 0.03 million Review of plans and monitoring EMUutilization of dredgedmaterial by agriculture

Rehabilitation project: issues during constr ctionConstruction Environmental Detailed specifications to Contractor and The identified Supervision of contracts EMU 0.05 millionactivities hazards: be developed for bidding supervising actions and through environmental due annually

documents Engineer requirement diligencewill be included

Fuel and oil spills Proper transport, storage in the biddingand handling documents of

the contractsDust Dust prevention and

Protection of workers,personnel and the public

Air pollution from Protection of workers,pipe coatings personnel and the public

Disposal of Designation of disposalconstruction sites; sale of scrap material;materials concrete may be crushed

and reused.

Traffic and road Traffic control, roaddamage maintenance and repair

Talimardian Increased bio- Vegetation and bio-physical EMU, 0.4 million + Nature preservation around EMU and/or (see O&MIenvironmental diversity; functional revetment in phases GosKompriroda 0.02 million Talimarjan GosKomprirod __



Activity / issue / Environmental Mitigation measure Responsibility Extra Monitoring measure Responsibility Extrastage impact environmental environmental

cost (US$) for cost (US$) for. _ ~~~~~~~~~~~~~~~~Phase I only .. _Pase I only

protection (start use according to budget (total annually aup in Phase I) 1.6 million; Phase 125% ?) . _Rehabilitation project: operation issuesO&M of cascade Environmental Internal (ODKPC) ODKPC; PIU; 0 Environmental due diligence EMU 0.05 million

hazards (various) environmental management MAWR annuallyguidelines

Dredging and Negative if sludge Disposal areas designated Dredging 0.05 million Verification and regular EMU 0.01 millionsludge disposal returned to river on marginal lands along KPC contractor and annually monitoring annually

(increase of sufficient for 30 yrs storage MAWRsediment load andrising river bed)

Inundation of Increased operationalgrazing areas, security of polders,railway and including strengthening ofdrainage collectors embankmentsdue to overflow ofpolders wheresludge is disposed

Wind erosion and After disposal reachesdust from heaps of maximum height materialdisposed material will be covered with sandy

loam and planted with grassand bushes

Dredging Alleged erosion of This erosion is unlikely due MAWR/PIU $0.2 million in Monitor start and progress of PIU/EMUthe river's left bank to the dredging operation project the studyin Turkmenistan but appears to be caused by

the inherent morphologicalconditions of the river;further studies will examinethis in more detail

Seepage from KPC Some waterlogging Improvement/rehabilitation MAWR/PIU N/A Monitoring of ground water ODKPC/EMU 0.01 million/yof vacant lands of the seepage interceptor levels along the KPCleased by drain (incl. pumps) may beUzbekistan along considered for inclusion in a

_____________the KPC second phase project .


Karshi Pumping Cascade Rehabilitation Phasc I Project 20Environmental AssessmentExecutive Summary


cost (US$) for cost (US$) forPhase I only Phase I onil

Alleged Allegation can not be Turkmen N/A Monitoring of irrigation water Turkmen 0waterlogging of agr. substantiated. The irrigation deliveries, water management irrigationLands (4,100 ha in waterlogging appears to be authorities practices, condition of drainage authoritiesTurkmenistan) caused by poor water system, ground water levels and

management and drainage soil salinitypractices,

Quality of No direct effect Improved dredging operation MAWR 0 Monitoring of water quality 0Talimarjan may slightly reduce thereservoir water amounts of fine sediments

entering the reservoir andreduce turbidity

Waterlogging and Reduces agricultural Promotion of improved MAWR/PIU 0 (in project Monitoring of progress and PIU/EU 0salinity in productivity and irrigation and drainage costs) impact of the mitigationscommand area endangers practices in 14 pilot areas (2 measures

sustainability of in each raion) on aboutagricultural 28,000 ha; includingproduction in the development of WUAs, I&Dlong term rehabilitation and technical

assistance

Modern irrigation schedulingto be provided to KOID andselected raion organizations;TA to improve O&M, incl.flow measurement

Preparatory studies will beundertaken to transformexisting water organizationsinto autonomousorganizations to be operatedon commercial principles

Salt mobilization Risk of long term System rehabilitation and Drainage 0 (in project Soil salinity (combined with Currently by 0.1 (remoteIncrease in salinity more efficient water use Directorate: institutional groundwater level and salinity); MAWR sensing,




cost (US$) for cost (US$) forPhase I only Phase I onlY

and discharge in should reduce risk. Issue MAWR component) river, KPC, CDW and lakes equipmentAmu Darya down- will be addressed in follow water quality (incl. phenol); etc)stream up project.

UzGI GIS unit 0.01 million/yUzGI Drainage 0.01 million/y

.____________________________ departm entChange in water Risk of long term No immediate action (and Drainage 0 (in project Water flows Currently by 0.1 (remoteflows impact on Amu part of follow up projects) Directorate; institutional MAWR sensing,

Darya downstream Integrated water MAWR component) equipmentmanagement, institutional etc)support and systemrehabilitation may have an UzGI GIS unit 0.01 million/yindirect effect. UzGI Drainage 0.01 million/y

departmentEMU support (e.g. Improved EMP Training, support, audit by PIU USS 0.03 mly Monitoring missions World Bank ?for 3 years) implementation local and international US$ 0.10 m/y and the GOU

consultants .

Total indicative 1 US$ 0.63 US$ 0.2cost: million + 0.20 million

.__ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ -_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ ._ _ _ _ _ _ _ _ _ _ _ m /y_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ . _ _ _ _ _ _ _ _ _ + 0 .1 6 m /y.

(*): see monitoring part of 'Construction activities'

RepLublicofUzbekistan 01/28/02Ministry of Agriculture and Water ResourcesProject Implementation Unit

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