KYRGYZ REPUBLIC

FINANCIAL SECTOR DEVELOPMENT PROJECT

ENVIRONMENTAL MANAGEMENT FRAMEWORK

Bishkek, November 2011

E2897

List of Abbreviations

APAP Agricultural Productivity Assistance ProjectCFC Chlorofluorocarbons

CLMU Credit Line Management UnitEA Environmental AssessmentEE Environmental ExpertiseEIA Environmental Impact AssessmentEMF Environmental Management FrameworkEMP Environmental Management PlanFSDP Financial Sector Development ProjectGOK Government of the Kyrgyz RepublicGMO Genetically Modified OrganismIDA International Development AssociationIPM Integrated Pest ManagementISDS Integrated Safeguards Data SheetMoF Ministry of FinancePCB Polychlorinated biphenylsPFI Participating Financial Institution

SAEPF State Agency on Environmental Protection and ForestrySME Small and Medium Size EnterpriseTA Technical AssistanceTOR Terms of Reference

List of Abbreviations

Contents

Part I – Background and Applicable Policies

1. Introduction2. Purpose3. World Bank Safeguard Policies4. Project Description5. Environmental Category and Impacts6. Guidance for TrainingPart II – Procedures for Sub-Projects under the Credit Line

1. Probable Sub-Project Activities2. Vulnerability and Risk3. Environmental Screening Categories4. Environmental Screening Process5. Environmental Assessment6. Steps in the Environmental Review Process

Part III – Kyrgyz Context

1. The system of environmental state management in the Kyrgyz Republic.

Part IV – Management of CFCs, PCBs and Asbestos

Annexes

Annex A Environmental Screening ChecklistAnnex B Environmental Impacts, Causes, Consequences and Mitigation Measures for

AgribusinessesAnnex C Environmental Impacts, Causes, Consequences and Mitigation Measures for

AgricultureAnnex D Content of an Environmental Assessment Annex E Content of an Environmental Management Plan (including Monitoring Plan)Annex F Field Site Visit ChecklistAnnex G Final Environmental Assessment ChecklistAnnex H Checklist for the reconstruction and constructionAnnex I Legislation of the Kyrgyz Republic of the environmental protectionAnnex J Reference Documents for World Bank Operational Policies (OP) and Procedures

(BP) Relevant to Environmental Assessment and World Bank Safeguard PoliciesAnnex K Stakeholder Consultation

Part I – Background and Applicable Policies

1. Introduction

The Government of the Kyrgyz Republic is preparing an Financial Sector Development Project (FSDP) for funding by the International Development Agency (IDA or World Bank). The Project will focus on enhancing financial sector stability through a strengthened legal, supervisory, and regulatory framework for the financial sector; and (b) increasing access to financial services by underserved segments of the market..

These Guidelines relate to sub-projects to be financed under a credit line to be provided Aiyl Bank, linked to technical assistance to support deposit mobilization and privatization. These Guidelines have been adapted from the Environmental Management Plan prepared for the Kyrgyz Republic Agricultural Productivity Assistance Project (APAP), since the APAP project and FSDP will support similar sub-projects, and since Aiyl Bank serves as a participating financial institution for on-lending under both projects

2. Purpose

The purpose of these Guidelines is to provide Aiyl Bank and other Project implementing partners] with a set of guidelines and procedures that will assist in determining the potential environmental impacts of relevant activities to be financed under the FSDP, to identify mitigation measures to be built into the activities to minimize negative impacts and maximize positive ones, and to determine monitoring requirements to ensure that agreed mitigation measures are carried out and are effective in minimizing environmental impacts. The main Project implementing partners are the Aiyl Bank and the Credit Line Management Unit (CLMU) under the Ministry of Finance..

3. World Bank Safeguard Policies

The principal documents that guide and describe the World Bank’s environmental assessment (EA) policies are its Operational Policy (OP) and Bank Procedure (BP) 4.01 on EA. EA is one of ten Safeguard Policies that projects must comply with to remain eligible for Bank financing. These key policies are intended to ensure that potentially adverse environmental and social consequences of Bank financed projects are identified, minimized and mitigated. The policies are listed with web links in Annex J. The Project triggers OP 4.01 (EA), and is a World Bank environmental category FI (Financial Intermediary) project, presenting potential moderate environmental risks that cannot be identified prior to implementation, but that can be adequately mitigated and monitored during implementation.

4. Project Description

The relevant sub-component (2) (iii) of the proposed project is expected to provide financing for a credit line to Aiyl Bank, which lends for the rural sector. The credit line would support increased productivity in the agricultural sector, by improving access to finance for investments in farm inputs, agricultural machinery, agribusinesses, and marketing infrastructure. The project has two components as described below.

(1) Enhance financial sector stability by: (i) strengthening the supervisory and regulatory framework (improving onsite and offsite supervision, improving bank regulations, adopting risk-based and macroprudential supervision, enhancing stress tests, building capacity); and (ii) strengthening the IT infrastructure (supporting an improved off-site database, early warning system, stress tests, dynamic modeling, macro-prudential supervision model, etc.).

(2) Increase access to financial services by: (i) supporting institutional reform of the Kyrgyz Post Office (KPO), including the expansion of its existing payment and remittance services, and the addition of deposit services; (ii) supporting legal, regulatory, and institutional reform to modernize the system for moveable collateral registration and execution; (iii) providing a credit line to Aiyl Bank, linked to technical assistance to support deposit mobilization and privatization; and (iv) support to the credit union sector.

Under sub-component (2) (iii), providing a credit line to Aiyl Bank (US$ 4 million):

The Credit Line will enable Aiyl Bank to continue lending to the rural sector during the transfer to deposit mobilization and privatization. The Credit Line will increase farmers’ access to financing in order to promote increased productivity in the rural sector. The Credit Line will consist of two products:

i. Working capital loans , providing access to much needed short-term financing for spring and winter planting (agricultural inputs, such as seeds, fertilizers and fuel) and harvesting activities for small farmers and farmer cooperatives.

ii. Investment loans and leases , to enable farmers and farmer cooperatives to purchase farm machinery, invest in warehouses and other productive assets in the heavily under-invested farming sector. Long-term investment loans and leases will be provided under the sub-component.

Aiyl Bank’s mission is to increase the efficiency and profitability of the rural sector in the Kyrgyz Republic and improve living conditions of the village population by providing financial services. The bank’s objectives are to: (i) provide high quality financial services to agricultural and rural sectors in an efficient and cost-effective manner; (ii) support the development and raise efficiency of production and incomes of the private agricultural and rural sectors of the country; (iii) meet the client target groups’ demand for credit resources; (iv) provide high quality management of the credit portfolio ensuring appropriate pricing, minimization of lending risks, diversification of the portfolio, and sustainability of the lending operations through timely repayment of the loans by the borrowers. Aiyl Bank devotes 70 percent of its lending to agriculture (including agribusiness) and 30 percent to non-agricultural businesses. The credit line under FSDP will be used to finance projects that fall within the agricultural portion of Aiyl Bank’s lending policy, subject to the negative list cited in Section XX of this EMF. The average working capital loan size is expected to be around US$5,000, while the average investment loans is expected to be in the range of US$25,000 equivalent, with a maximum of US$50,000 per loan under this Credit Line. The Credit Line beneficiaries will receive sub-loans/leases in accordance with agreed eligibility criteria. The financial and commercial viability of the sub-projects and beneficiaries under this facility will be assessed by Aiyl Bank. It is estimated that around [500] farmers will have access to sub-loans under this program.

Implementation Arrangements

The Credit Line Management Unit (CLMU) under the Ministry of Finance will implement Sub-component (2) (iii) (the Credit Line and undertake the Safeguards functions for the project. Aiyl Bank will serve as the financial intermediary and implement the Credit Line. CLMU will recruit a local environmental specialist to support implementation of the project in keeping with this EMF.

5. Environmental Category

The project is assigned World Bank environmental category FI, as the exact sub-projects to be funded under the credit line are not identified prior to implementation. However, only sub-projects that present moderate environmental risks that can be readily mitigated during implementation would be eligible for funding. The planned new Credit Line for farmers and agribusinesses is intended to support productivity increase in agriculture. These activities may generate some positive and adverse environmental and social impacts. The identified positive impacts of the project include: (a) increased food security and household income for the smallholder farmers, due to higher agricultural productivity; (b) improved nutritional status of the farmers due to increased agricultural production; (c) improved soil fertility due to fodder crop sowing (enrichment by nitrogen), use of phosphorus-potassium fertilizers; d) increased savings mobilization and increased productivity on farms; and (e) increased opportunity for engagement in other income generating activities or small scale businesses by smallholder farmers due to increased food security for the households. The potential negative environmental impacts that may result from implementation of the project include: (a) increased pollution of ground and surface waters due to soil erosion and use of fertilizers and pesticides; (b) threats to human health and wildlife due to improper handling of treated seeds, fertilizers and pesticides; (c) increased siltation of water bodies due to soil erosion; (d) introduction of genetic monoculture through seed purchased with credit line financing; and (e) construction waste. These potential negative impacts will be mitigated through the environmental screening and sub-project environmental management plans (EMPs) under this EMF. The project will not finance acquisition of land, genetically modified organisms (GMOs), pesticides, or World Bank Category A sub-projects under the Credit Line.

6. Training

The CLMU environmental specialist will not only provide environmental guidance, support and review for sub-projects under the Credit Line, but will also serve as a resource for the design and delivery of the environmental training services for Aiyl Bank loan officers. . The training for Aiyl Bank loan officers will ensure their ability to apply the environmental screening procedures required under this EMF. Annexes A-H provide materials that form the basis for the training for Aiyl Bank loan officers under the project. Training may be combined with training provided under the APAP project.

Part II – Procedures for Sub-Projects under the Credit Line

1. Probable Sub-project Activities

It is not possible to anticipate all of the activities for which project financing may be requested. Sub-projects are expected to primarily include the renovation, rehabilitation and expansion of

existing agro-processing businesses as well as agricultural production inputs and improvements, transportation, warehousing and marketing. Credits will be available for both sub-projects and working capital.

Relevant activities not supported by the World Bank include (sub-project type in brackets): tobacco growing/or processing (agriculture); development, production or purchase of genetically modified organisms (GMOs) (agriculture); any activity related to illegal pesticides (agriculture); use of chlorofluorocarbons (CFCs) (agro-processing requiring refrigeration); use of natural products listed under CITES Appendix 1 (tanning industry).

2. Vulnerability and Risks

The impacts of sub-projects to be financed under the FSDP credit line to Aiyl Bank are expected to be easily mitigated through good practices and project design. While cumulative impacts are not likely to be an issue, attention will have to be given to agro-processing activities within the same watershed and within the same region due to their characteristic common impacts resulting from solid waste, effluent discharges and air emissions. This will be monitored by the CLMU environment specialist.

3. Environmental Screening Categories

The proposed sub-projects are classified into one of three categories based on the type, location, sensitivity and scale of the subproject and the magnitude of potential environmental impacts. The three categories are: Category A - High Potential; Category B - Intermediate Potential, and; Category C - Low Potential. A list of potential sub-projects classified by category (for A and B) and is provided in the table below. Category A sub-projects are not eligible for World Bank financing.

Category A Category B dams and reservoirs forestry production projects industrial plants (large scale) and

industrial estates irrigation, drainage and flood control

(large scale) aquaculture land clearance and leveling reclamation and new land development resettlement river basin development manufacture, transportation and use of

pesticides or other hazardous and/or toxic materials

new construction or major upgrades of highways or rural roads

agro-industries (small scale) electrical transmission irrigation and drainage (small scale) renewable energy rural electrification tourism facilities rural water supply and sanitation watershed projects (management or

rehabilitation) protected areas and biodiversity

conservation rehabilitation of highways or rural

roads rehabilitation or modification of

existing industrial facilities (small scale)

energy efficiency and energy conservation

4. Environmental Screening Process

Screening. The first stage of the environmental review process is the screening of sub-project proposals and concepts for potential impacts and the determination of the level of environmental assessment that will be required. Annex B Part 1 provides an environmental screening checklist to be completed by sub-project proponents with assistance from Aiyl Bank. This will be reviewed by the FSDP CLMU environmental specialist, and a preliminary assignment of the environmental risk category will be made.

Based on the Environmental Screening Checklist, the recommendations of the Aiyl Bank loan officer and, if necessary, a field site visit, the CLMUin consultation with the SAEPF State Environmental Inspector will determine the sub-project category and extent of environmental assessment that will be required.

Consultation. In the case of Category B sub-projects, during the environmental assessment process the proponent provides a forum or hearing for consultation and comment by project-affected groups and local non-governmental organizations, and takes their views into account before finalizing project design and submission of the project to Aiyl Bank and subsequently, the FSDP CLMU for final approval. The sub-project proponent provides any relevant materials (process descriptions, maps, building plans, etc.) to participants in a timely manner and in a form and language that are understandable to the group being consulted. The CLMU environmental specialist or the Aiyl Bank loan officer describes and records consultations held on the project screening form (Annex B Part 3).

Public Disclosure. For Category B sub-projects for which an environmental assessment is prepared, the draft assessment report is made available at a public place accessible to project-affected groups. This would usually be the raion or oblast level office of SAEPF. Aiyl Bank and the CLMU would also retain a copy of the report for its records and possible review by World Bank supervision missions.

5. Environmental Assessment

An environmental assessment is conducted to identify, predict and evaluate potential impacts and to plan for mitigation measures that may be incorporated in sub-project design to minimize negative impacts. The purpose is to anticipate potential consequences and to improve the environmental aspects of sub-projects by minimizing, mitigating or compensating for negative effects.

Annex A provides a set of matrices for agricultural activities and agro-processing businesses (and other non-agricultural activities) which indicate impacts to be expected, causes, consequences and mitigation required.

For sub-projects that require an environmental impact assessment (Category B) the scope and contents of an environmental assessment are described in Annex B.

The project proponent is responsible for preparing the environmental assessment. The costs of the environmental assessment may be included in the credit amount.

6. Steps in the Environmental Review Process

This section outlines the sequence of steps to be carried out for environmental review of sub-projects and the responsibilities of the various actors and authorities. These steps are shown in the schematic, Figure 1.

Step 1: The proponent prepares an initial sub-project concept for discussion with Aiyl Bank. If the project receives preliminary endorsement by Aiyl Bank, the proponent completes Part 1 of the Environmental Screening Checklist (Annex A). At this time the proponent initiates discussions with the respective local environmental authorities (SAEPF) to determine requirements for environmental review. The proponent is also responsible for obtaining appropriate permits and approvals that may be required by other local authorities.

Step 2: Aiyl Bank, after consulting with PIU, assigns a preliminary environmental category. Aiyl Bank in consultation with the PIU completes Part 2 of the Environmental Screening Checklist (Annex A).

Step 3. Aiyl Bank carries out a field site visit and completes the Field Site Visit Checklist (Annex F). The Environmental Screening and Field Site Visit Checklists are submitted to SAEPF (raion level) which issues a preliminary environmental statement listing potential environmental concerns and mitigation measures and whether an environmental assessment is required. Aiyl Bank further reviews the checklists and assigns a final category to the sub-project. For Category B sub-projects, the Aiyl Bank (with assistance from the PIU) provides framework terms of reference for preparation of an environmental assessment. For some Category B projects, an environmental management plan may be required. The proponent, in consultation with Aiyl Bank (and possibly in consultation with the CLMU and SAEPF) arranges for preparation of the EA and management plan. Annex D provides the content of an environmental assessment, and Annex E provides the management plan content.

Step 4: For Category B sub-projects, the proponent organizes a public consultation session with community representatives and affected groups. Formal minutes record the participants, issues raised and steps taken or recommended to address them. The scope of the EA is discussed.

Step 5: The SAEPF (oblast level) reviews ( carries out ecological expertise (EE) on) the environmental assessment and management plan. The PIU reviews the assessment report, the environmental management plan and the documentation of necessary permits and clearances and completes the Final Environmental Assessment Checklist (Annex G). These documents are then included in the package that goes forward to Aiyl Bank and the PIU for a decision on approval of project financing. The SAEPF (oblast level) issues a final environmental statement (EE). If supported by SAEPF, SAEPF then issues an Environmental Passport which includes discharge permits for solid and liquid wastes and aerosol emissions.

Step 6: The proponent incorporates the recommendations provided in the environmental assessment, as well as those received during the review and clearance process by SAEPF and other local authorities, into the sub-project design and implementation plan.

Step 7: Aiyl Bank and the local (raion) SAEPF representative monitor implementation of agreed design and mitigation measures.

Step 8: When implementation is complete, SAEPF and other agencies, as appropriate, monitor emissions and discharge during operations.

Step 9: The status of compliance with agreed environmental mitigation measures is reported by Aiyl Bank officers (in collaboration with SAEPF for monitoring results) in their regular (quarterly) reporting on project implementation. In the case of non-compliance, the Aiyl Bank officers (with SAEPF and PIU assistance) investigate the nature and reason(s) for noncompliance, and a decision is taken about what is needed to bring a sub-project into compliance, or whether financing should be suspended.

Step 10: The PIU makes available information on Aiyl Bank monitoring of environmental management plans and mitigation measures in its routine reporting on sub-project implementation to the World Bank and during periodic Bank supervision missions.

Part III

1. Government control system of environment in the Kyrgyz Republic

Relations in the field of the environment protection and rational use of natural resources are regulated by the Constitution of the Kyrgyz Republic, the Law of the Kyrgyz Republic “ On the environment protection” (as of May 13,1999) other laws, and legal normative acts of the Kyrgyz Republic accepted according to them.

According to Constitution of the KR, the Law of the KR “On the environment protection”:Each citizen has the right on favorable for life and health environment and indemnification caused to health or property by adverse impact on environment as a result of economic or other activity implementation.

1) Principles of the environment protection.

The main principles of the environment protection are:1) The principle of priority: to ensure the respect for human rights, favorable for life, work and rest the environment providing life and health of the people;2) The equilibrium principle: preservation of ecological systems stability, avoiding the environment and people’s health irreversible consequences;3) The complexity principle: the harmonious scientifically proved combination of ecological, economic and social interests of the society, integrated approach of the resource-saving issues and the environment protection;4) The restraint principle: rationing, obligatory ecological assessment, validity and restriction of economic activities and other influences on environment;5) the principle of liability: strict compliance with the legislation on environmental protection, the inevitability of punishment for its infringements, damage compensation caused to the environment by enterprises, institutions, organizations, households and citizens;6) The openness principle: publicity in the decision of nature protection problems at the economic and other activity having ecological consequences, a close connection with public organizations and the population, encouragement and stimulation of the measures directed on protection and rational use of natural resources, a combination of national, regional and international interests in the field of environment protection.

The followings should be protected from pollution, deterioration, exhaustion, destruction, extermination and other negative impacts:- the land and its subsoil;- soil cover;- water;- forests;- flora, fauna and their genetic fund;- ambient air;- other natural objects, systems and ecological systems;- as well as climate and ozone layer.

The natural complexes and nature objects having particular ecological, environmental, scientific, historical, cultural, aesthetic, recreation value, rare or endangered species of plants, animals and their habitats shall be subject to special protection. In this regards, specially protected natural areas: state reserve, biosphere reserves, state natural reserves, national parks, natural monuments, resorts and recreational areas, botanic gardens, dendrological and zoological

parks are created in the KR.

In order to protect rare or endangered plant and animal species the Red Book is established in the Kyrgyz Republic. The government of the Kyrgyz Republic determined the list of rare or endangered plant and animal species which are subjected to list in the Red Book, and the order of their protection.

2) Environmental protection measures

In the Kyrgyz Republic the following measures are implemented in order to protect the environment:1) state records and socio-economic evaluation of natural resources;2) environmental quality control (maximum permissible concentrations of harmful substances

in air, water, soil, subsoil and other natural objects);3) complex regulation of economic and ecological relationships;4) establishment the environmental requirements to economic or other activities related to the

impact on nature;5) establishment the charges standards for natural resources use, dumping, pollutants emissions,

physical and other harmful effects of waste disposal in the environment;6) state support by nature waste-free and low-waste technologies implementation;7) ecological entrepreneurship introduction;8) environmental impact assessment at economic and other activities implementation in order

to prevent possible adverse effects of these activities on the environment;9) special protection of nature reserves, wildlife preserve, national parks, rare species of

animals, plants and other facilities;10) nature protection funds establishment;11) the guilty compensates the damages caused to environment, and conducts environment

restoration activities;12) establishment of environmental violations and responsibility measures for these acts;13) making the guilty answerable for environment damage;14) preservation and reproduction of forests;15) natural waters restoration;16) prevention the atmosphere pollution;17) use wind and solar energy, as well as other non-conventional energy sources;18) integration of environmental aspects during the construction of hydroelectric stations (the

human pressure on fragile mountain ecosystems, and rising water tables, provoking landslides and earthquakes, etc.).

Other environment protection measures can be established by the legislation of the Kyrgyz Republic, decisions of local state administrations and local self-government.

3) Nature management

Nature management in the Kyrgyz Republic is carried out in the form of general and special nature management.

The general nature management does not require any special permission, is carried out by citizens owing to the natural rights arising and existing as result of its birth and existence (atmospheric air using, water for drinking, medical-improving needs etc.).

The special nature management of used objects divided into land, subsoil, forests, water management, use of flora and fauna, use of atmospheric air.The special nature management is carried out within the established limits.

Limitation is subdivided into:

Maximum permissible standards of natural resources withdrawal from the environment; Maximum permissible levels of emissions, harmful substances discharge into the

environment, waste disposal.

The special nature management is carried out on a fee basis.Natural resources payments are royalty on a natural resource, payment for environmental pollution and other negative impacts on nature.The royalty on a natural resource is fixed within established limits, for the above-limit use and entered into the state budget, is used for protective activities and environmental sanitation. The Law of the KR “On payment rates for natural objects of fauna and flora use in the Kyrgyz Republic” dated August 11, 2008.Norms and procedure of payments collecting for the natural resources use in the Kyrgyz Republic, approved by Resolution of the Government of the Kyrgyz Republic dated July 7, 1995, # 269.

Payments for environmental pollution such as emissions, discharges of pollutants, disposal of waste and other types of pollution and negative impacts on nature.Law of the Kyrgyz Republic “On payment rate for environmental pollution (emissions, discharges of pollutants, waste disposal) dated March 10, 2002.Government Resolution “On approval of Instructions and guidance on the rate definition for environmental pollution in the Kyrgyz Republic” dated November 10, 2004 of the KR, # 823.Rates and payments for environmental management standards developed by the Government of the Kyrgyz Republic and approved by the Parliament (Jogorku Kenesh) of the Kyrgyz Republic. Emissions, discharges of hazardous substances - exit to the external environment (in air, water bodies, land) pollution from any source.Fees for natural resources does not relieve the polluter to comply with measures to protect the environment, damages compensation caused by them due to violations of environmental laws, the prosecution of the offense.

4) Environmental requirements to economic and other activities

1) The design, location, construction, reconstruction, technical upgrading and commissioning of facilities and activities that have a direct or indirect impact on the environment should be set and activities for nature protection, rational use, reproduction, natural resources, improve the environment in compliance with environmental standards should be implemented and impact assessments of proposed activities on the environment (EIA) should be conducted.

Identification of location, design, construction, household objects operation is made in accordance with active legislation and based on the positive confirmation of state ecological expertise. An approved project is not allowed to be changed at the expense of environmental safety.Objects that haven’t been provided with cleaning facilities and equipment, decontamination and disposal of hazardous waste, emissions and discharges to the limit level, monitoring requirements of environmental pollution are prohibited to going into operation.Environmental impact assessment is carried out in order to prevent possible adverse effects on the environment by proposed economic and other activities.Environmental impact assessment is carried out on commitment to the adoption of its economic decisions, reasonableness, independence, objectivity, legitimacy and transparency of its findings.It is prohibited to fund and implement projects related to environmental management, without the positive conclusion of state ecological expertise.Relations connected with the environmental assessment, regulated by law of the Kyrgyz Republic “On ecological expertise”.

2) During economy and other entities activities implementation, they are obliged to comply with the approved technology regimes, to have and ensure reliable and effective operation of treatment facilities, installations and control devices, decontamination and waste disposal, to introduce environmentally sound technologies and industries, to carry put protection and rational use of land, minerals, water, air, forests, flora and fauna, the reproduction of natural resources.

3) Entities engaged in commodity production in the field of animal husbandry and agricultural products processing should have the necessary sanitary protection zones and treatment facilities.

4) Measures on the water balance preservation, efficient use of water, land conservation, forest depletion, rising sea levels, flooding, and prevention of other adverse effects on the environment should be observed during operation of reclamation projects and implementation of reclamation work.

5) Operation of hydroelectric power stations should be carried out in strict conformity with requirements of fish stocks protection, and avoiding of negative environment changes.

6) It is prohibited to use toxic chemicals, which are not exposed to decay, and negatively influence on human health and environmental. Activity of economic or other subjects related to the use of radioactive materials and toxic chemicals carried in the presence of licenses (permits). Permits (licenses) for handling of radioactive materials and toxic chemicals are issued by specially authorized state bodies.

7) Protection of the environment from uncontrolled and harmful biological influence. Import, including the transit of biological objects and their metabolic products is prohibited without a quarantine certificate. Introduction and acclimatization of unknown biological objects for the Republic are allowed only in scientific research, medical and veterinary purposes after an ecological examination passage. New plant varieties, animal breeds, microorganism strains of local and foreign breeding allowed to industrial production only after passing the examination, development of measures of ecological security and state tests. The use and cultivation of biological objects, not peculiar to the nature of the region, as well as obtained by artificial means, without multiplication and penetration of the artificial genetic material in natural communities is prohibited. During the production, reproduction, storage, transportation, trade, disposal, destruction of organisms of animal and vegetable origin the measures of environmental safety, avoiding the possibility of negative consequences for the gene pool, as well as human health should be necessarily complied.

8) Protection of the environment from the harmful physical influences. It is prohibited to exceed standards of maximum allowable levels of production and other background noise, vibration, electromagnetic fields and other harmful physical effects influencing on human health and environment. Legal and physical persons are obliged to take necessary measures for prevention and elimination of the manufacturing standards excess, and other background noise, vibration, harmful effects of electromagnetic fields and other harmful physical impacts on the environment. Measures ensuring compliance with limit values developed at the planning and building cities and other settlements, designing the construction, reconstruction of enterprises, shops, production lines, establishment and development of new equipment, renovation, design and use of land, water and air transport, entertainment institutions.

9) Protection of the environment from industrial, household and other wastes.Discharge of industrial and other wastes in the prescribed manner permitted only in specially designated areas. It is prohibited to dump wastes and sewage into water reservoirs of general use, underground aquifers.

Legal and physical persons are obliged to take effective measures for disposal, recycling,

disposal, storage or disposal of industrial and domestic waste, comply with applicable environmental, sanitary and anti-epidemic norms and regulations. Storage and waste disposal are made in the places determined by the decision of local governments in coordination with the state environmental authorities and public health services of the Kyrgyz Republic. Storage and waste disposal are made in order provided by legislation.

10)Protection of the atmosphere’s climate and ozone layerProtection of the environment from the environmentally dangerous climate change, ozone layer of the atmosphere provided by: Organization of observation, recording and monitoring of climate change, ozone layer under the influence of economic and other activities and other processes; Organization of collecting and recording data on the consumption of ozone-depleting substances; Establishment of and compliance with standards of maximum permissible emissions of pollutants affected on climate and ozone layer; Regulation in the production and in domestic the chemicals depleting the ozone layer; Use of responsibility measures for violation of these requirements, including the suspension or prohibition of harmful activities, by decision of public authorities of Environment of the Kyrgyz Republic. In accordance with international agreements of the Kyrgyz Republic, ministries, departments, enterprises, institutions, organizations must reduce and subsequently completely terminate consumption and use of chemicals harmfully influencing on ozone layer. List of chemicals and waste products harmfully influencing on ozone layer of the atmosphere approved by republican state environmental authorities of the Kyrgyz Republic. All public authorities, administration, enterprises, institutions, and organizations provided by this list.

The ozone layer is the layer of the atmosphere at an altitude of 7-8 km at the poles, 17-18 miles - at the equator of the planet's surface with a high concentration of ozone molecules that absorbs ultraviolet radiation from space harmfully influencing on living organisms.

5) Monitoring of the environment

The system of state monitoring of the environment is created in order to ensure the observation, recording, assessment, prediction, control and management of the condition and changes in the environment and its resources in the territory of the Kyrgyz Republic.The structure, content and procedure of the State environment monitoring are established by the Government of the Kyrgyz Republic.Monitoring of the environment condition, including transboundary pollution, natural resources use, carried out by specially authorized bodies over the country through the observation system of the cities, industrial centers, natural objects and the individual territories, as well as enterprises, organizations and institutions, activities which cause or may lead to environmental degradation.Specially authorized bodies, as well as enterprises, organizations and institutions are obliged to charge the materials of their observations to the relevant state bodies engaged in environmental monitoring and health.

6) Control of the environment

Control of environment and natural resource management has the following objectives: observation of the condition and environmental change under the influence of economic and other activities, verification of compliance measures for nature protection, rational use of natural resources, environmental health, compliance with environmental laws and environmental quality standards.

Control system for environmental protection includes state, department and public control.Economic and other entities affecting on the environment at their respective territories and objects exercise control over the environment.The ministries and administrative departments of the Kyrgyz Republic implement departmental control of the environment state at their convention facilities to verify compliance with measures for nature protection, rational use, reproduction, natural resources, environmental health and compliance with environmental legislation.State and higher organization monitoring of environment state and natural resource use implemented by the Republican state and territorial environmental authorities of the Kyrgyz Republic. The order of state control exercising over the environmental state.The order of public control in the field of environment protection and natural resources is regulated by legislation on public associations, statutes and regulations which do not contradict to the present law.

7) Prevention of the environmental emergencies

The measures preventing accidents and eliminating their consequences are designed and implemented at the design, exploitation, conservation and the elimination of economic and other facilities.In case of accident, disaster, legal and natural persons are obliged immediately proceed to eliminate them and immediately notify the relevant government bodies, specialized services and people.

8) The competence of public authorities at the environment protection

The organization of interdepartmental cooperation, management and regulation in the field of environmental protection are subject to the jurisdiction of the Government of the Kyrgyz Republic.The Republican state environmental authorities of the Kyrgyz Republic supervises the activities of ministries, administrative departments, enterprises, institutions and organizations in the field of environmental protection.The competence of the republican state environmental authorities of the Kyrgyz Republic is carrying out the unified state policy and integrated management of environment and natural resources, coordination among ministries, departments, implementation of the state ecological expertise and public control in the field of environmental protection. Decisions of state environmental authorities of the KR are obligatory for all legal and physical persons and may be appealed in court.Local state administrations and local authorities in the field of environmental protection within the jurisdiction territory involved in the development of environmental programs and implement measures to protect the environment, and act in accordance with the legislation regulating local government bodies and local authorities.

9) Rights and obligations of natural resource users.

The natural resource user has the right to use natural resources for the provided purposes, use the properties of other natural resources without prejudice to the environment, to claim damages caused by both legitimate and illegal actions, to demand restoration of violated rights.The user should rationally use natural resources for the provided purposes, does not violate the rights and lawful interests of other natural-resource users, and comply with approved requirements and limitations on use, preservation, and rehabilitation of the environment.

10) Liabilities for ecological offenses.

For committing environmental crimes provided disciplinary, administrative, criminal, civil liability in accordance with the laws of the Kyrgyz Republic.Attraction to disciplinary, administrative or criminal liability does not absolve the perpetrators of the reparation harm to the environment.Compensation for damage done voluntarily or by court order in accordance with approved in due course fees and methods of damages calculation, but in their absence – at actual cost to the restoration of the environment taking into account incurred losses, including loss of profits.For example, the decree "On the liability for damage caused by damage to the land" of the Government of the Kyrgyz Republic as of September 7, 2004 # 668.

11) Principles of international cooperation in the field of environmental protection In order to ensure universal environmental security for present and future generations the Kyrgyz Republic carries out the international environmental cooperation and guided by the following principles:- Everyone has the right to life under favorable environmental conditions; - State has the right to use the environment and natural resources for development to ensure the needs of its citizens; - Environmental well-being of one state can not be achieved at the expense of other states or without regard for their interests; - The activity of the state shall not damage the environment; - Compliance with the fundamental principle of mutual benefit; - Establishment of the intercontrol to the state and change of environment and its resources based on internationally recognized criteria and parameters; - Mutual assistance between States in environmental emergencies; - Peaceful settlement of disputes in the field of environmental protection; - Combination of international organizations activities with the national interests of the Kyrgyz Republic.

If the International treaty, (the Kyrgyz Republic participant of it) establishes other rules than those contained in the legislation of the Kyrgyz Republic on Environmental Protection, the rules of the International treaty are used.

The main normative acts of the Kyrgyz Republic in the field of environmental protection are given in Appendix I.

Part IV – Management of CFCs, PCBs and Asbestos

Chlorofluorocarbons (CFCs)

FSDP does not support any projects involving equipment containing CFCs. Aiyl Bank must ensure that all new purchases of refrigeration equipment is ozone friendly, getting in this regard special written proofs from the subproject beneficiaries.

CFCs are used as the working substances as cooling agent, also in firefighting at hazardous installations (power stations, ships, etc.), perfume and medicine for aerosols creation.

Potential PCBs issues

The oil used in electricity transformers can contain and/or be contaminated with the PCBs

(substances interdicted to be used per Stockholm Convention). Aiyl Bank officers in this regard, for all new such activity they have to request a proof there will be no PCB containing/contaminated oils used. In the case of sub-projects involving the replacement of old transformers, these should be handed over to the raion level State Inspection for Energy and Gas (SIEG) as the specialized agency responsible for de-commissioning old transformers. The borrower signs an agreement the SIEG and may include payment for their services in the credit budget.

Polychlorinated Biphenyls (PCBs) are a class of synthetic organic chemicals. Since the 1930s, PCBs were used globally for a variety of industrial uses (mainly as dielectric fluids in capacitors and transformers) because of their chemical stability. In the 1970s it became generally recognized that their chemical stability also represented a serious threat to human health and the environment if they were released. PCBs are considered to be immune-toxic and affect reproduction with specific adverse effects associated with chronic exposure, including damage to the immune system, liver, skin, reproductive system, gastrointestinal tract and thyroid gland. While local impacts close to the source of release of these chemicals into the environment are of concern, the primary impacts are widely distributed and effectively global in nature, given the chemical’s characteristics of bioaccumulating higher in the food chain and being subject to long range, multi media transport mechanisms. Based on these characteristics they are generally classified as persistent organic pollutants (POPs). Through the late 1970s and 1980’s the production and use of PCBs was generally discontinued, with regulatory bans being applied in many countries. However, there were and remain substantial global inventories of the chemical remaining in operating electrical equipment, stockpiles of retired equipment and PCB contaminated waste, and on localized sites where concentrated releases have occurred.

Asbestos.

Asbestos is the collective name of fine-fibered minerals from the silicates class. Asbestos is painted in white, green, yellow or gray. It has high fire resistance, and therefore used in compositions where the combination of flexibility and heat resistance is need (construction, automotive industry, rocket production). Asbestos included in numerous types of products in various areas such as textiles, paper, filters, tarpaulins, protective clothing (fire), paper, asbestos building materials (roofing sheets, pipes).

Asbestos is not commonly used in new construction materials. However, renovations of older buildings frequently involve removal of asbestos-containing materials (e.g., roof sheets, pipe insulation). In these cases, great care must be taken in handling the old materials:

The risk presented by asbestos is from inhalation of asbestos fibers in dust, which causes lung disease, including cancer. Asbestos bound in materials (e.g., unbroken roofing sheets) is stable and not a risk.

If asbestos is located on the project site, it should be marked clearly as hazardous material.

When possible the asbestos will be appropriately contained and sealed to minimize exposure.

The asbestos prior to removal (if removal is necessary) will be treated with a wetting agent to minimize asbestos dust.

Asbestos will be handled and disposed by skilled & experienced professionals using proper protective gear (mask, gloves, coveralls).

Milk is not a prophylactic. In some countries, drinking milk is considered helpful to mitigate the effects of toxic materials. While nutritious, milk has no influence on toxic materials that are inhaled.

Asbestos containing materials (roofing sheets) should not be broken or cut. This releases dust.

If asbestos material is to be stored temporarily, the wastes should be securely enclosed inside closed containers and marked as hazardous material. Security measures needs to be taken against unauthorized removal from the site.

The removed asbestos should not be reused (except for intact roofing sheets, with approval of San-Epi Department).

Asbestos-containing materials must be disposed in at approved hazardous waste disposal site.

Annex AEnvironmental Screening Checklist

(to be completed by Sub-borrower)

1. Project Name:

2. Brief Description of Sub-project to include: nature of the project, project cost, physical size, site area, location, property ownership, existence of on-going operations, plans for expansion or new construction.

3. Will the project have impacts on the environmental parameters listed below during the construction or operational phases? Indicate, with a check, during which phase impacts will occur and whether mitigation measures are required.

Environmental Component ConstructionPhase

Operational Phase

Mitigation Measures

Terrestrial environmentSoil Erosion: does the project involve crop agriculture? If so, which crops? Is agricultural field is located on the slopes and/or on the plain areas? Will the project involve plowing/plant cultivation on the slopes?Habitats and Biodiversity Loss: Will the project involve use or modification of natural habitats (pasturing on and plowing up the steppe areas, cutting or removal of trees or other natural vegetation, etc.)

Soil pollution: Will the project applies pesticides? If yes which types and their amount?Land, habitats & ecosystems degradation: Is the area which is to be used currently a natural (not converted) habitat (forest, wetland, natural grassland, etc.)?Land degradation: Will the project involve land excavation?Generation of solid wastes – what type of wastes will be generated (various types of construction wastes, wastes from agro-processing activities, livestock manure) and their approximate amountGeneration of toxic wastes – what types of toxic waste will be generated (obsolete and unusable pesticides and mineral fertilizers; chemicals used in agro-processing activities; asbestos) and their approximate amount.Biodiversity and Habitats Loss: Will the project located in vicinity of protected areas or other sensitive areas

supporting important habitats of natural fauna and flora? Is it planned enlargement of area under agricultural crop production based on transformation of natural habitats?Underground water pollution - if the project involves production of stall fed livestock does it has a manure platform? ConstructionAir qualityWill the project provide pollutant emissions? Which types of pollutants (SOx, NOx, solid particles, dioxins, furans, etc.)Aquatic environmentWater Quantity: will the project involve water use? Which volumes and from which water source (centralized water supply system and/or from water reservoir)?Water Quality/Pollution: Will the project contribute to surface water pollution – what will be the approximate volumes of waste water discharge? Does the project involve discharges of waste waters in water reservoirs and/or in centralized sanitation network/septic tank?Loss of Biodiversity: Will the project involve introduction of alien species (in case of aquaculture projects)? Loss of Biodiversity: Will the project located in vicinity of protected area or wetlands?Degradation of natural aquatic ecosystems – if the project involves discharges in water courses and reservoirs of solid wastes; pesticides; cutting of protective shelterbelts.Weeds, pests, diseases: will the project contribute to spreading of weeds, pests and animal and plant diseases? Sedimentation of water bodies – will the project contribute to sedimentation of water bodies due to soil erosion?Socio-economic environmentSocial impacts – does the project involve the following: (a) occupational safety issues; (b) health hazards; (c) land acquisition; (d) loss of the access to sources of income; and (e) disturbance of residents living near the project area.Does the project per national legislation require public consultation to consider local people’s environmental concerns and inputs?Will the project assure non-deterioration of human health, occupational safety and non-disturbance of residents living near project area? If no, is it possible by applying proposed mitigation measures to reduce the project environmental and social impacts to admissible levels?

4. For the environmental components indicated above, and using the information provided in the table below describe the mitigation measures that will be included during the construction (C) or operational (O) phase of the project or both (B). Typical mitigation measures could be found in the point 5 and in Annex C and D below.

Environmental Component Phase(C, O or B)

Mitigation Measures

5. Examples of Mitigation Measures (for more detailed description of listed below and other potential mitigation measures refer to Annexes C and D).

Environmental Component Mitigation MeasuresSoil Erosion: does the project involve crop agriculture? If so, which crops? Is agricultural field is located on the slopes and/or on the plain areas? Does the project involve ploughing/plant cultivation on the slopes?

1) Plowing across the slope2) Contour tillage 3) Avoid creation of new terraces since it is linked with loss of topsoil, etc.4) Appropriate crop rotation: fallow land – wheat – maize – sunflower – Lucerne – Lucerne (2 years long) – legumes (pea, haricot, etc.) / wheat maize, etc.5) On lands which are subject to erosion preferable cultivation of plants with require dense sawing (e.g. wheat, rye, etc.) and avoid cultivation of tilled crops (e.g., maize, sunflower), 6) Orchards: creation of grass strips between the rows, deep cultivation between the rows,7) Where possible, to use the branch of field crops with the branch of cattle-breeding and gardening, etc.

Habitats and Biodiversity Loss: Will the project involve use or modification of natural habitats (pasturing on and ploughing up the steppe areas, cutting or removal of trees or other natural vegetation, etc.)

1) Avoiding use of remained natural or semi-natural steppe areas for pasturing and crop production2) Avoid, where possible, cutting of trees and other natural vegetation, etc.3) Minimize loss of natural vegetation/ Protection of vegetation during construction activities

Soil pollution: Will the project applies pesticides? If yes which types and their amount?

1) Use of less harmful (non-persistent) pesticides2) Not to apply more pesticides than needed 3) To ensure appropriate pesticides handling to avoid polluted surface runoff, etc.

Land, habitats & ecosystems degradation: Is the area which is to be used currently a natural (not converted) habitat (forest, wetland, natural grassland, etc.)? Does the project involve production of livestock? If so, what type and how many? Will the animals be stall-fed, pastured or free-ranging?

1) Not to exceed pastures’ capacity (on degraded lands this is 0,3-0,5 conv. cap/ ha; on good lands – 1,5 conv. cap/ per ha) and avoid overgrazing2) Where possible, use of stabling3) Where possible, do develop sown pastures4) Where possible, fencing the grazing areas to use them subsequently, giving to others possibility to restore, etc.5) Not to graze in natural areas in early spring and late autumn, etc.)6) Use natural meadows and grasslands rather for mowing than grazing, etc.

Land degradation: Will the project involve land excavation?

1) Removal of topsoil to adjacent agricultural lands

Generation of solid wastes – what type of wastes will be generated (various types of construction wastes, wastes from agro-processing activities, livestock manure) and their approximate amount

1) Separation of wastes, their usage and recycling2) Disposal on authorized landfills3) Full utilization of manure as organic fertilizers

Generation of toxic wastes – what types of toxic waste will be generated (obsolete and unusable pesticides and mineral fertilizers; chemicals used in agro processing activities; asbestos) and their approximate amount.

1) Clearly marking toxic wastes on the project site as hazardous material and securely enclose them inside closed containments, as well as label them with details of composition, properties and handling information;2) Disposal on special toxic wastes disposal sites.3) Usage of specially licensed carriers for transportation and disposal of toxic wastes4) Ensure containers with hazardous substances are placed in an leak-proof container to prevent spillage and leaching;5) Ensure the asbestos is not reused

Biodiversity and Habitats Loss: Will the project located in vicinity of protected areas or other sensitive areas supporting important habitats of natural fauna and flora? Is it planned enlargement of area under agricultural crop production based on transformation of natural habitats?

1) Consideration of alternative locations, where possible 2) Careful timing of works and work seasonally, as appropriate: no construction during breeding season3) Where possible, to fence the area under construction to lessen even occasional disturbance on habitats and biodiversity4) Inform personnel about importance of adjacent environmentally important area, if any5) Where possible, to plant (or maintain) green corridors to ensure movement of terrestrial fauna

Underground water pollution – does the project involve usage of fuel and lubricants? if the project involves production of stall fed livestock does it has a manure platform?

1) Fuel and lubricants: use of specially arranged sites (with concrete floor) for fuel and lubricants handling and storage to avoid their leakages into the soil and runoff into water bodies2) Pesticides: see above 3) Use of special platforms and tanks with a waterproof bottom for accumulation of manure and preparing of organic fertilizers, etc.

Construction 1) Careful selection of location for and planning of the project2) To minimize construction site’s size and design work to minimize land affected,3) Where possible, to execute construction works during dry season to avoid excessive contaminated runoff4) Properly arranged waste disposals5) Cleaning of construction site, replacing lost trees, boundary structures, re-vegetation of work area

Air qualityWill the project provide pollutant emissions? 1) Use of approved methods and techniques to prevent and control emissions (e.g. absorption)

Which types of pollutants (SOx, NOx, solid particles, dioxins, furans, etc)

2) Where possible, enclosure of dust producing equipment, and use of local exhaust ventilation3) Arrange barriers for wind protection (if raw material is stored in open piles4) Where possible, use of fuels with a low sulfur content, such as natural gas or liquefied petroleum gas and use of low-sulfur raw material5) Where possible, installation of dedicated filtration systems, etc6) Selection of materials or processes with no or low demand for VOC-containing products7) Where possible, to install and modify equipment to reduce solvent use in manufacturing process8) To execute strict primary and secondary control of air emissions, etc.

Water Quantity: will the project involve water use? Which volumes and from which water source (centralized water supply system and/or from water reservoir)?

1) To ensure natural flow of water/ minimum disruption of natural streams flows2) To install water meters to control and minimize water use 3) Avoid or minimize surface water abstraction in case of downstream the wetland is situated, etc.

Water Quality/Pollution: Will the project contribute to surface water pollution – what will be the approximate volumes of waste water discharge? Does the project involve discharges of waste waters in water reservoirs and/or in centralized sanitation network/septic tank?

1) a. For small rural enterprises: to install local wastewater treatment facilities (e.g., septic tanks)b. For big enterprises: not to exceed established limits of pollutants in effluents 2) To minimize water and mud collection3) Renovation of existing sewerage system/ connection to municipal sewerage system4) Properly arranged waste disposals5) Where possible, to plant at least bush vegetation down slope to reduce pollutants runoff into surface water bodies

Loss of Biodiversity: Will the project involve introduction of alien species (in case of aquaculture projects)?

1) Where possible, to avoid introduction of alien species2) In case of use of already introduced alien species to ensure their non-coming into natural ecosystems, e.g., during water discharge from ponds, etc.

Loss of Biodiversity: Will the project located in vicinity of protected area or wetlands?

1) Not to exceed established limits of pollutants in effluents and emissions2) To avoid or minimize construction and operational activities during breeding and migration periods, etc.

Degradation of water ecosystems 1) Avoid application of pesticides in the strip with width of 300 m along the natural surface water bodies,2) Avoid cutting of trees and other natural vegetation along the water bodies 3) Avoid coming of alien species into natural water bodies, 4) Properly arranged waste disposals sites, etc.

Weeds, pests, diseases: will the project contribute to spreading of weeds, pests and animal and plant diseases?

1) Avoid cultivation of plant mono-culture on agricultural lands 2) Appropriate pest management 3) Giving the priority to the agro-technical and biological measures for the control of weeds, pests, and diseases, 4) In cattle farms, to adhere carefully established rules to prevent or minimize animal diseases, etc.

Sedimentation of water bodies – will the project contribute to sedimentation of water bodies due to soil erosion?

1) To avoid excessive soil erosion: see above2) Minimize soil processing3) Provide retention/ sedimentation ponds, as necessary

4) To control reed harvesting ( to avoid over-harvesting)Socio-economic environmentSocial impacts – does the project involve the following: (a) occupational safety issues; (b) health hazards; (c) land acquisition; (d) loss of the access to sources of income; and (e) disturbance of residents living near the project area.

Appropriate project design: location, methods of construction, use of safe technologies during operation period, work timing, careful decommissioning, etc.

Does the project per national legislation require public consultation to consider local people environmental concerns and inputs?

If yes, anticipated public concerns, e.g., project location, waste disposal sites, harmful emissions into environment, and aesthetic arrangement of constructed sites? etc.

Will the project assure non-deterioration of human health, occupational safety and non-disturbance of residents living near project area? If no, is it possible by applying proposed mitigation measures to reduce the project environmental and social impacts to admissible levels?

1) To ensure collective and individual protective measures (work clothes, masks, shoes), when needed.2) To adhere established occupational safety requirements as well as simple rules, e.g.:a) water spaying twice a day during construction to avoid dustb) ventilation of internal areas during and post constructionc) timing of work3) To conduct regular instructing of employees on health and occupational safety requirements 4) To restrict vehicle speeds and trough-traffic in residential areas, especially trucks, using signing and appropriate design5) Restrict trough-traffic in residential areas6) Work timing to minimize disturbance/ restrict construction to certain hours, 7) Restrict movement of hazardous materials in residential areas/ regulation of transportation of materials; apply any load restriction required during and post construction periods, 8) Incorporate safety and environment protection requirements in the project contract documents, etc.

Part 2

(Completed by Aiyl Bank approved by CLMU, based on data revealed during ecological monitoring and evaluation process)

1. Category of ecological risk (A, B or C) _____2. Necessity for EE (yes or no) _____

3. Which ecological aspects are arisen in the subproject?__________________________________________________________________________________________________________________________________________________

4. In case of need to carry EE out, on what aspects are necessary to pay special attention? __________________________________________________________________________________________________________________________________________________________5. What terms and expenses are necessary for carrying EE out? _____________________________________________________________________________

Explanation

The given part is filled according to the maintenance of the filled part 1.The category A in overwhelming majority of projects is not applied, except for processing of raw stock and wool, and also separate rather large manufactures (see manual)EE is required to apply to all projects of the category A and to separate projects of the category B, connected with natural ecosystem alienation (destruction) or environmental pollution outside of manufacture.Ecological and social aspects are allocated according to allocated in part 1.

Part 3

Completed by CLMU with assistance of Aiyl Bank and/or MES on the basis of analysis of the offered mitigating methods (in case of need).

6. Whether was EE necessary? (Yes or no) ___ if yes whether is it finished? ___Whether the requirements of the World Bank on public consultations and national requirements have been observed and completely reported? (Yes or no) ___

7. Whether the Plan of Ecological Management is prepared? (Yes or no) ___

8. Are mitigating methods included in the carried project adequate and suitable? (Yes or not) ___

9. Whether the project will correspond to existing standards concerning emissions and a waste? (Yes or not) _____ if no, whether exemption of responsibility has been obtained? _____

10. Whether is a necessity in respect of Ecological monitoring? (Yes or no) ___ If yes, whether it is ready? (Yes or no) _____ Has Aiyl Bank approved? ______

2. What subsequent actions are required from the Borrower orAiyl Bank? ______________________________________________________________

______________________________________________________________________

11. Whether the potential ecological impacts of a sub-credit discussed with stakeholders? (Yes or no) Whether there is a report? (Yes or no)

Date Participants _____________________ ____________________________________________________________ ____________________________________________________________ _______________________________________

From Aiyl Bank Date:

Signature:

From PIU part Date:

Signature:

Annex B

Impacts, Causes, Consequences, Mitigation and MonitoringAgribusiness (agro-processing and other)

Table B1

For Planning and Construction of all New Enterprises, Rehabilitation of Existing Enterprises and De-commissioning of all Enterprises

Potential Impacts Causes Consequences Mitigation Required RemarksPlanning Phase:Loss of biodiversity Poor location analysis not

taking into account important biophysical values.

Loss of flora and fauna. Location in areas that are not high priority for biodiversity protection.

Loss of cultural features Poor location analysis not providing consideration to cultural values.

Loss of important cultural sites and structures.

Location in areas of little or no cultural significance.

Public participation is a requirement for all EIAs and if properly conducted during EIA will ensure input required to select appropriate alternative sites.

Socially unacceptable Poor location analysis not taking into consideration local communities’ lifestyle, movement patterns and values.

Nuisance factor to local communities; loss of peace and quiet; loss of access to other areas or sites (e.g. school children may have to walk greater distances due to loss of direct route to school.

Location in areas where noise, odour or aesthetics will not be a problem; location to be selected which doesn’t interfere with important access (e.g. to schools).

Public participation is a requirement for all EIAs and if properly conducted during EIA will ensure input required to select appropriate alternative sites (and modus operandi) for enterprise.

Construction Phase:Soil erosion Vegetation and topsoil is

removed for initial construction and access, exposing bare soil that is vulnerable to erosion, particularly in rainy periods.

Further soil erosion off-site and downstream; increased sediment loads in receiving streams resulting in aquatic habitat changes.

Ensure awareness by workers; adopt appropriate soil protection techniques; ensure exposed soil surfaces are kept to a minimum and for short periods of time; conserve topsoil, recover and replant when construction is completed.

If possible construction should occur in dry periods or seasons, particularly in situations where soil erosion could be a problem.

Soil contamination Spilled and dumped fuels, and other chemicals. Ineffective on-site sewage treatment during construction

Loss of soil productivity. Contaminated groundwater.

Environmental awareness; training in handling and storage of fuels, lubricants and chemicals; provision of proper on-site storage facilities.

phase.Water pollution Spilled and dumped fuels and

other chemicals.Contaminated groundwater and surface water resulting in contaminated drinking water and in the case of surface water, damaged aquatic ecosystem.

Same as above.Provision of waste containing toilets which waste can be transferred to a municipal treatment facility.

Noise and dust Vehicles and construction machinery; dirt access roads.

Nuisance factor to neighboring communities.

Operations during normal working hours only; access roads to be watered during dry periods.

Solid waste Littering of unused construction materials and workers personal garbage.

Unsightly and remnant construction materials could pose a safety hazard.

Effective disposal of materials and garbage in designated waste disposal sites.

Loss of access Construction site may have formerly been used as an access for local population (and vehicles) for various sections of the community.

Nuisance and possibly economic hardship.

During planning phase ensure that local people are aware of restrictions during construction and alternative arrangements for access are provided.

Public participation during planning phase should identify this and similar conflicts.

Injuries Inadequate safety procedures for workers; inadequate signage and construction activities exposed where public can interface with such.

Injury / death resulting in lost work days (for construction workers and general public; lost income.

Ensure construction workers are given safety instruction; ensure safety officers on site; ensure effective signage for the public and ensure that all exposed construction areas are barricaded from public access.

Decommissioning Phase: (it is unlikely that any of the enterprises will undergo decommissioning in a 25-50 month period from initial start up or refurbishment but if such should occur then the listed impacts should be considered).Same as above for construction plus:

See above See above See above

Waste Concrete, blocks, steel, glass will result from demolition; old equipment will be dismantled.

Public safety hazard.Waste of resources.

Removal and recycling or effective disposal of all toxic materials; complete demolition after recycling useful materials; removal to a designated and environmentally safe disposal site and burial of clean and inert materials.

Aesthetics Unsightly site (as are many industrial sites from former Soviet times).

Following removal of all materials (see above), site to be formed (topsoiled where relevant and feasible) and landscaped, where appropriate, to suit surrounding areas.

Soil erosion As for construction phase above.Safety As for construction phase above.

Table B2

AbattoirOverall Potential Impact: HIGH (due to threat to human health threat)Potential Impacts Cause Consequences Mitigation Required RemarksContaminated meat Poor sanitary conditions

including lack of protective clothing and ineffective maintenance; processing of sick and diseased animals.

Consumers become ill; lost work days; lost productivity and income; abattoir’s reputation leads to lost business.

Provision of protective clothing; effective use of disinfectants; effective sanitary inspections leading to required standards being met; effective regulatory animal and meat inspection.

Government inspections can be erratic and perhaps not always effectively conducted. Residents of Bishkek are very cautious with meat purchases because of faulty meat inspections and record of people becoming ill and dying. This however is mainly related to small farm slaughter and not the commercial abattoirs.

Contaminated groundwater and surface water

Improper disposal of animal manure and offal as well as bones and other non-useable animal parts including blood.

Contaminated drinking (E. coli) water resulting in illness (possibly death), lost productivity and income.

Ground waste bone, meat and offal into flour for animal feed (see remarks); blood can be used for blood sausage; other water and blood waste must be collected and treated before proper disposal into municipal waste treatment systems; manure should be recycled or allowed to mature in an impervious containment – mature manure can be applied as fertilizer for crop production or on pastures.

Current ban on using such flour as animal feed in other countries due to threat of spongiform encephalitis (BCE-mad cow disease) which can result in deadly Jacob Kreifeldt disease in humans for those consuming meat of infected animals.

Odour Manure; refrigerants (NH3); animals and carcasses.

Nuisance to nearby residents. Avoid escaping NH3; maintain good sanitary conditions; dispose of manure in a timely fashion.

Ozone depletion Refrigeration and freezing units utilizing Freon or ammonia.

Increase in UV rays resulting in skin cancer if proper protection is not taken; can also affect plant health.

Convert refrigerants from ozone depleting substances (NH3 and chlorofluorocarbons) to a hydrofluorocarbon.

KR is signatory to the Vienna Convention and the Montreal Protocol re: ozone-depleting substances.

Groundwater depletion Large volumes of water used in washing.

Lowering of water table and depletion of water resources required by others.

Water apportioning; efficient use of water including recycling.

Of particular concern when planning a new abattoir that water resources are sufficient to meet needs of present and future users.

Injuries Knives and saws used in the processing; large and heavy animal carcasses can fall and cause injury.

Lost productivity, work days and income.

Safety instructions; safety clothing where appropriate (e.g. hard hats).

Residual Impact Assuming Full Mitigation: LOWEnvironmental Risk: MODERATE

Table B3

Meat Packing (This activity is often combined with the abattoir)Overall Potential Impact: HIGH (due to threat to human health threat)Potential Impacts Causes Consequences Mitigation Required RemarksContaminated meat Poor sanitary conditions

including lack of protective clothing and ineffective maintenance; processing of contaminated meat from abattoir.

Consumers become ill; lost work days; lost productivity and income;Meat packing enterprise loses reputation resulting in lost sales, lost revenue and loss of job.

Provision of protective clothing; effective use of disinfectants; effective sanitary inspections leading to required standards being met; effective regulatory animal and meat inspection; assurance that carcasses and meat joints delivered are free of contamination and have been refrigerated adequately.

Government inspections can be erratic and perhaps not always effectively conducted.

Contaminated groundwater and surface water

Improper disposal of bones and fat.

Illness Ground waste bone and fat into flour for animal feed (see remarks).

Current ban on using such flour as animal feed in other countries and other places due to threat of spongiform encephalitis (BCE-mad cow disease) which can result in deadly Jacob Kreifeldt disease in humans for those consuming meat of infected animals.

Disease Improper disposal of wastes into municipal disposal sites providing ideal habitat for vermin.

Lost workdays and income. Appropriate disposal of waste.

Illness Canning uses lead solder for can seams.

Lead (Pb), a carcinogen, is cumulative in humans.

Use tin (Sn) for soldering or adopt other appropriate sealing methods.

Solid waste Canning material scrap. Wasted resource. Recycle back to processor.

Residual Impact Assuming Full Mitigation: NONERisk: MODERATE

Table B4Vegetable Processing and CanningOverall Potential Impact: LOWPotential Impacts Causes Consequences Mitigation Required RemarksDamage to aquatic ecosystems.

Residue from vegetable and fruits allowed to be dumped into surface waters.

High organic content leading to oxygen depletion and habitat destruction.

Compost vegetative waste.

Illness Canning uses lead solder for can seams.

Lead (Pb), a carcinogen, is cumulative in humans.

Use tin (Sn) for soldering or adopt other appropriate sealing methods.

Solid waste Canning material scrap. Wasted resource. Recycle metal back to metal processor.

Injuries Open machinery. Lost productivity, work days and income.

Safety instructions; safety clothing where appropriate (e.g. hard hats); protective guards on all machinery.

Residual Impact Assuming Full Mitigation: NONERisk: LOW

Table B5TanningOverall Potential Impact: HIGH (primarily due to toxic chemicals in effluent discharge)Potential Impacts Causes Consequences Mitigation Required RemarksModification of aquatic habitats

A variety of chemicals is used in the tanning industry including Cr, NH4, Ti, Na2SiF6, Na2S, CaO, Na3OH4, Na2SO4, (CH2)6N4, AlNH4(SO)2. These chemicals can be found in waste effluent or they can reach the effluent discharge as a result of spillage. As well there is waste including leather and hair from the hides that can find its way into the aquatic habitat.

Receiving water bodies become highly polluted and toxic, rendering them unfit for other uses and destroying existing fauna and flora; loss of biodiversity. Organic wastes can deplete oxygen levels surface waters, resulting in damaged habitat and aquatic communities.

Containment and treatment facilities to ensure that effluent discharges are within the regulated limits.Chemicals should be stored and handled in such a manner as to prevent spillage.

One tannery in Bishkek does not use the Cr process because it does not have the facility for treating the chemical after it has been used. Christian2 suggests separating effluents into four wastewater streams: low polluted, high polluted, chromium bearing and sulphide bearing wastewaters. Solid wastes3might be separated into three fractions: spent salt, non-chromium containing solids, and chromium solid wastes. Aerobic biological treatment (composting) is suggested as proper technology for the non-chromium containing solid waste since this can represent up to 80% of all of the solid waste generated at a tannery4.

High energy consumption Aging high production tanneries use large amount of energy, particularly in winter.

Depending on source of energy, could contribute to greenhouse effect (if fossil fuel derived) or if hydro derived, could result in pushing high demand on limited supply that would result in additional energy sources to be found.

For new tanneries building design and construction should be compact and energy efficient.

The large Bishkek tannery has to close during the coldest months due to high cost of heating.

Injuries Tanneries use heavy machinery, which, if not fitted with protective shields, can cause injury.

Lost productivity, work days and income.

Safety instructions; safety clothing where appropriate (e.g. hard hats); protective guards on all machinery.

Illness A number of chemicals have to be handled in the tanning

Lost productivity, work days and income. Long term illness.

Effective training in the handling of chemicals;

2

3

4 Christian, K. 2001.

process. Some of these can be dangerous to the health of workers if not properly stored and handled.

protective clothing (e.g. respirators, gloves of inert material); proper storage for highly volatile compounds.

Solid waste and contamination of groundwater and surface water.

Hair and small quantities of skin and leather waste during the tanning process.

Small quantities of leather do not present a problem. Hair of hides often contains parasites and disease. Unknown as to whether or not these could find their way into groundwater and surface water and pose a threat to health.

Minimize amount of waste; treat hides before removal of hair (or treat hair after removal).

See remarks for modification of aquatic habitats, above.

High water consumption Large tannery uses large amounts of water.

Drawdown of water table which could affect other users.

Ensure proper water apportionment with other competing users; efficient water use and recycling.

One tannery in Bishkek uses approximately 10,000m3 of water monthly.

Residual Impact Assuming Full Mitigation: LOW - MODERATERisk: MODERATE - HIGH

Table B6Dairy ProcessingOverall Potential Impact: HIGH (primarily due to human health threat)Potential Impacts Causes Consequences Mitigation Required RemarksSurface water contamination Effluent discharge containing

whey (waste from cheese making); discharge of acid from milk processing as a result of cleaning of equipment.

Waterways become opaque and display high protein levels resulting in damaged or destroyed aquatic ecosystem.

Effective collection and treatment of whey before discharge; make available all whey to farmers for feedstock.

Ozone depletion Refrigeration and freezing units utilizing Freon or ammonia.

Increase in UV rays resulting in skin cancer if proper protection is not taken; can also affect plant health.

Convert refrigerants from ozone depleting substances (NH3 and chlorofluorocarbons) to a hydrofluorocarbon.

Food contamination Pasteurization process not effective; workers in contact with milk and milk products.

Consumers become ill (could be very serious as milk could come from cows with brucilosis or tuberculosis); workers could infect milk products during handling.

Origin of milk should be known; pasteurization process must be effective; workers must be protected with effective clothing and workers should not come in direct contact with milk products; veterinary diligence to ensure healthy animals.

Injuries Open machinery. Lost productivity, work days and income.

Safety instructions; safety clothing where appropriate (e.g. hard hats); protective guards on all machinery.

Residual Impact Assuming Full Mitigation: NONERisk: MODERATE

Table B7Frozen Food ProductionOverall Potential Impact: MODERATE (primarily due to human health threat)Potential Impacts Causes Consequences Mitigation Required RemarksOzone depletion Refrigeration and freezing

units utilizing Freon / or ammonia.

Increase in UV rays resulting in skin cancer if proper protection is not taken; can also affect plant health.

Convert refrigerants from ozone depleting substances (NH3 and chlorofluorocarbons) to a hydro fluorocarbon.

Food contamination Poor sanitary conditions including lack of protective clothing and ineffective maintenance; contaminated raw materials.

Consumers become ill; lost work days; lost productivity and income; enterprise’s reputation leads to lost business.

Provision of protective clothing; proper washing up with disinfectants; effective sanitary inspections leading to required standards being met; effective inspection of raw materials.

Government inspections can be erratic and perhaps not always effectively conducted.

Injuries Open machinery. Lost productivity, work days and income.

Safety instructions; safety clothing where appropriate (e.g. hard hats); protective guards on all machinery.

Residual Impact Assuming Full Mitigation: NONERisk: MODERATE

Table B8Cotton GinningOverall Potential Impact: LOWPotential Impacts Causes Consequences Mitigation Required RemarksInjuries Open machinery. Lost productivity, work days

and income.Safety instructions; safety clothing where appropriate (e.g. hard hats); protective guards on all machinery.

Illness Cotton fibre dust. Respiratory problems resulting in lost productivity, work days and income.

Provide workers with respirators.

Solid waste Short fibres (motes) that are not useful for spinning.

Waste disposal required. Use as cattle feed.

Residual Impact Assuming Full Mitigation: NONE Risk: LOW

Table B9Oil Processing (including maize)Overall Potential Impact: LOW Potential Impacts Causes Consequences Mitigation Required RemarksPolluted surface water Biomass waste allowed to

migrate to surface waters.Degraded aquatic ecosystem. Effective disposal of biomass

waste (composting or use as animal feed).

Solid waste Biomass waste. Compost or use as animal feed.

Illness Cold pressed oil contains high amounts of fatty acids and pesticide residues.

Serious illness resulting in lost productivity, work days and income.

Use alternative pressing process.

Injuries Open machinery. Lost productivity, work days and income.

Safety instructions; safety clothing where appropriate (e.g. hard hats); protective guards on all machinery.

Residual Impact Assuming Full Mitigation: NONE Risk: MODERATE

Table B10Flour Milling Overall Potential Impact: LOWPotential Impacts Causes Consequences Mitigation Required RemarksSolid waste Wheat husks left from milling

dumped at municipal disposal site.

Wasted resources. Recover bran; use for animal feed.

Injuries Open machinery. Lost productivity, work days and income.

Safety instructions; safety clothing where appropriate (e.g. hard hats); protective guards on all machinery.

Illness Flour dust. Respiratory irritation. Provide masks to workers.

Residual Impact Assuming Full Mitigation: NONERisk: LOW

Table B11Storage (warehousing)Overall Potential Impact: LOWPotential Impacts Causes Consequences Mitigation Required RemarksOnly those during siting, construction and decommissioning phases.

Residual Impact Assuming Full Mitigation: NONERisk: LOW

Table B12MarketsOverall Potential Impact: MODERATEPotential Impacts Causes Consequences Mitigation Required RemarksIllness Vermin (rats).

Unrefrigerated meat and dairy products.

Spreading of disease resulting in lost workdays, sales and income.

Lost workdays and income.

Regular inspection of markets and extermination of vermin; maintenance of high sanitary standards.Refrigeration of meat and dairy products.

Market stall keepers in Bishkek mention presence of rats due to unsanitary conditions.

Ozone depletion Refrigeration and freezing units utilizing Freon / or ammonia.

Increase in UV rays resulting in skin cancer if proper protection is not taken; can also affect plant health.

Convert refrigerants from ozone depleting substances (NH3 and chlorofluorocarbons) to a hydro fluorocarbon.

Residual Impact Assuming Full Mitigation: NONE

Risk: LOW - MODERATE

MONITORING PLAN

PhaseWhat

(Is the parameter to be monitored?)

Where

(Is the parameter to be monitored?)

How

(Is the parameter to be monitored?)

When

(Define the frequency / or continuous?)

Why

(Is the parameter being

monitored?)

Cost

(if not included in project budget)

Who

(Is responsible for monitoring?)

During activity

preparation

During activity implementation

During activity supervision

Annex C

Impacts, Causes, Consequences, Mitigation and Monitoring for Agriculture Investments

Table C1

SeedOverall Potential Impact: MODERATEPotential Direct Impacts

Causes Consequences Mitigation Required Remarks

Positive impact; increased yields and food security for the small holder farmer.Risk of introduction of genetically modified plant seed (see below for pedigree seed)

Use of chemical fertilizers, and pesticides.

Same consequences as described for chemical fertilizers and pesticides (see tables C - 3 and 4)

determination and application of optimum quantities and scheduling for fertilizers and other inputs; use of only those pesticides approved by UN agencies; introduction of an integrated pest management program (IPM).

MAWRPI extension services should work with farmers to provide input management advice. MAWRPI should ensure coordination with MEES. On the matter of GMOs, there are positive and negative effects of the use of these and both should be considered.

Residual Impact Assuming Full Mitigation: LOW – MODERATERisk: LOW

Table C2Pedigree seed Overall Potential Impact: MODERATE – HIGHPotential Impacts Causes Consequences Mitigation Required RemarksPositive impact through increased yields and improved farm economy.

.Risk of introduction of genetically modified organisms leading to inputs of pesticides

Genetic drift into other areas where GMOs are not wanted;Development of pesticide resistant weeds;Soil contamination and water contamination.

Policies and legislation to prevent importation of GMO plant seedsPending new legislation, APAP will not finance GMOs

KR has to decide if the potential gains of GMOs outweigh the impacts

Risk of introduction of monocultures

Supply of one dominant type of seed

Loss of biodiversity and native species; increased vulnerability to disease

Provide a variety of preferred seed types; encourage crop rotation

Good practices to be supported through CSF program and extension services

Water and soil pollution Increased use of high levels of chemical fertilizers and pesticides.

Soil and water contamination leading to modified aquatic ecosystems.

. determination and application of optimum quantities and scheduling for fertilizers and other inputs; introduction of an integrated pest management program (IPM);Adoption of organic farming techniques

In general terms, high yielding varieties (HYV) require large inputs to achieve expected results – plant species and varieties would have to be examined on a case by case basis; close liaison with MAWRPI required. Organic farming techniques are currently practiced in other areas of the FSU and some of these could be adopted.

Residual Impact Assuming Full Mitigation: LOW - MODERATERisk: MODERATE

Table C3Fertilizer Overall Potential Impact: MODERATE TO HIGHDirect Impacts Causes Consequences Mitigation Required Remarksreduction in soil organic content

Reliance on chemical fertilizers which do have an organic component – less reliance on compost material and manure for meeting soil fertility requirements.

Modified soil structure and reduction in soil moisture holding capacity. In the long run, possible loss of productivity as a result of insufficient soil moisture; loss of soil’s natural fertility.

Fertilizer application in conjunction with crop rotation practices.Further reduce chemical fertilizer use through incorporation of various organic cultivation practices.

Extension workers should work closely with farmers to develop application rates and best land husbandry and crop rotation plans.

Air pollution Emission of greenhouse gases from chemical fertilizers.

Contribution to global warming resulting in climate change.

Optimum fertilizer quantities and application schedules should be planned and implemented.

Water pollution Nutrient enrichment of water bodies from fertilizer runoff.

Eutrophication of water bodies; modified aquatic ecosystems.Contaminated potable water sources.

Optimum fertilizer quantities and application schedules should be planned and implemented.Organic farming techniques should be introduced.

Work closely with extension workers to develop best land and crop management plans

Residual Impact Assuming Full Mitigation: LOW - MODERATERisk: LOW – MODERATE

Table C4PesticidesSignificance of Overall Potential Impact: HIGHPotential Impacts Causes Consequences Mitigation Required RemarksIllness Improper handling,

application and storage of pesticides.Consumption of crops with pesticide residues.

. increased health costs; lost work time; lost family income.

Training in the proper handling and use of pesticides; proper storage of pesticides.. introduce an IPM (integrated pest management program)Use only UN approved pesticides. Health warnings to wash foods.

MAWRPI should develop application certification programs.It should be determined if MAWRPI is developing an IPM program.Public education is required and this could be done through MAWRPI and the NGO communityAPAP will not finance pesticides

Soil contamination Residual pesticides in soil. Loss of soil productivity; long term loss / altered soil micro-fauna important to soil / plant relationships.

Use of appropriate pesticides that do not have residuals or in which residuals do no harm to soil.

Difficult because agrochemical companies promote their products amongst farmers and farmers will generally adopt the least cost chemical that does the job.

Loss of biodiversity Pesticide ingestion by fauna. Loss of fauna. Use UN approved pesticides. ‘Silent Spring’ by Rachel Carson.

Water pollution Ground and surface water contamination.

Impaired health of local and downstream water consumers; increased health costs; lost work time; lost family income.Aquatic ecosystems damaged; biodiversity losses.

Use of least harmful pesticides as approved by UN agenciesApply IPM techniques.

Residual Impact Assuming Full Mitigation: MODERATERisk: MODERATE

Table C5Pedigree livestockSignificance of Overall Potential Impact: NONEPotential Impacts Causes Consequences Mitigation Required RemarksPositive inpact Leading to better quality and increased production of meat and wool and

dairy products; increased yields and increased farm incomes.None None None None

Residual Impact Assuming Full Mitigation: N/ARISK: N/A

Table C6Livestock for finishingSignificance of Overall Potential Impacts: MODERATE TO HIGH Potential Impacts Causes Consequences Mitigation Required RemarksLoss of ground cover and soil erosion.

Carrying capacity of pasture is exceeded.

Reduced productivity; loss of soil; sedimentation: hydrological regime modified resulting in flooding and drought conditions.

Develop pasture carrying capacities and ensure that these are not exceeded.

Work closely with agricultural extension services to determine and maintain pasture carrying capacities.

Loss of biodiversity In high altitude areas stock may threaten forested or other protected areas; reduced vegetation cover leading to soil erosion and loss of water holding capacity.

Possible loss of species endemic to KRSedimentation; hydrological regime modified resulting in flooding and drought conditions.

Ensure that grazing does not occur in protected or other important areas.

Work closely with agricultural extension services.Livestock should be reintroduced to alpine grazing areas (but under strict control) in order to eliminate weed population (resulting from former Soviet grazing practices) and as a way of rehabilitating original communities and ultimately of protecting biodiversity

Water pollution Livestock in a confined area produce high concentration of f manure.

High nutrient loading in runoff waters leading to poor water quality and threat to human health (E. coli).

Introduce effective waste management; design and implement alternative to confined quarters.

Residual Impact Assuming Full Mitigation: NONERisk: MODERATE

Table C7

Residual Impact Assuming Full Mitigation: NONERisk: MODERATE

Table C8TractorsSignificance of Overall Potential Impact: MODERATE TO HIGHPotential Impacts

Causes Consequences Mitigation Required Remarks

Soil and water pollution

Contamination from machine fuels and lubricants.

Loss of soil productivity; loss of crop production.Loss of potable water.

Good practices to be carried out by equipment operators.Agricultural machinery should be kept in good repair and fuels and lubricants stored and handled in appropriately designed areas.

This is a minor impact and awareness to operators to refuel under safe conditions is all that would be required. Agriculture extension service can educate farmers, as well as loan officers.

Air pollution. CO2 releases from machinery.

Contribution to greenhouse gasses and global warming.

.ensure all fossil fuel engines are efficient and well maintained.Mitigation will be difficult.

Soil compaction

Heavy machinery. Erosion and sedimentation; loss of water.

Ensure equipment of a size that suitable for soil conditions.

Large farms require large machinery appropriate for the magnitude of the job.

Residual Impact Assuming Full Mitigation: LOWRisk: HIGH

Table C9Land PreparationSignificance of Overall Potential Impact: MODERATE TO HIGHPotential Impacts Causes Consequences Mitigation Required RemarksSoil erosion Preparation during rains;

cultivation against the contour; long fallow periods following ploughing.

Loss of topsoil and productivity; loss of soil moisture; stream sedimentation; aquatic ecosystem modified; modified hydrological regime; flooding and drought conditions increased.

Contour ploughing required.Optimal ploughing schedules to ensure minimal time for exposed soil.Organic agricultural practices adopted (e.g. shallow tilling and minimum tillage).

Should be conducted in conjunction with other good husbandry practices including maintenance of cropping residues (i.e. no burning).Coordinate with agricultural extension field services.

Residual Impact Assuming Full Mitigation: LOWRisk: HIGH

Table C10Other farm implementsPotential Overall Impact: LOW – MODERATEPotential Impacts Causes Consequences Mitigation Required Remarks

Same as in Table C9

Residual Impact Assuming Full Mitigation: LOW – MODERATERisk: HIGH (traditional farming techniques are not likely to change)

Table C11Small equipmentPotential Overall Impact: NONEPotential Impacts Causes Consequences Mitigation Required Remarks

NOT APPLICABLE

Residual Impact Assuming Full Mitigation: NONERisk: NONE

Table C12Grain drying equipmentPotential Overall Impact: LOWPotential Impacts Causes Consequences Mitigation Required RemarksHigh user of electrical energy

Heat required for grain drying.

Energy consumption requiring use of more fossil fuels.

Not known

Residual Impact Assuming Full Mitigation: LOWRisk: HIGH

Table C13Irrigation equipment and irrigation maintenancePotential Overall Impact: HIGHPotential Impacts Causes Consequences Mitigation Required RemarksWater losses Extraction of groundwater;

extraction of surface water.Loss of water to other current and potential users; modification of aquatic habitat.

Water sharing plan to ensure equitable distribution; No extraction from important aquatic habitats.

Water sharing plan will be challenging to prepare and implement

Loss of soil productivity

Salinization, waterlogging. Loss of productive land. Appropriate drainage system installed and operational activities designed to eliminate causes of impacts.

Residual Impact Assuming Full Mitigation: LOW - MODERATERisk: MODERATE

Table C14VehiclesPotential Overall Impact: LOW Potential Impacts Causes Consequences Mitigation Required RemarksAir pollution CO2 emissions Contribution to global

warming.Efficient engines and conservation of use.

Not likely that efficient engines will be used and conservation will not be a priority.

Residual Impact Assuming Full Mitigation: LOWRisk: HIGH

Table C15Farm buildings for stock, machinery and chemicalsPotential Overall Impact: LOWPotential Impacts Causes Consequences Mitigation Required Remarks

Residual Impact Assuming Full Mitigation: LOWRisk: LOW

Table C16Storage facilities (fuel, grain and other produce)Potential Overall Impact: LOWPotential Impacts Causes Consequences Mitigation Required RemarksLoss of productive land.

Improper location of buildings.

Reduced income from lower total crop production.

Location of buildings on sites with low productivity; efficient design to minimize space required.

This is not likely to be a major consideration.

Water pollution. Leakage of fuel and chemicals into surface and groundwater.

Pollution of ground and surface water leading to contaminated drinking water and irrigation water as well as affecting aquatic ecosystems.

Construction to include impermeable flooring and bunds to prevent runoff.

Residual Impact Assuming Full Mitigation: LOWRisk: LOW

Table C17Primary processingSignificance of Overall Potential Impacts: MODERATE – HIGHPotential Impacts Causes Consequences Mitigation Required Remarks

See Tables for agro-processing (Annex B)

Residual Impact Assuming Full Mitigation: NONE

Risk: HIGH

Table C18Fencing materialsSignificance of Overall Potential Impacts: MODERATE TO HIGHPotential Impacts Causes Consequences Mitigation Required RemarksSocial disruption Exclusion of certain people

or groups from land to which they have had traditional access either for use or for passage.

Prolonged legal procedures and ill feelings within community.

Consultation with affected groups or people;Where required, establishment of easement conditions.

This is not likely to be a problem. Public participation exercise should identify any potential problems.

Residual Impact Assuming Full Mitigation: NONERisk: LOW

Table C19Fuel, lubricants, etc.Significance of Overall Potential Impacts: HIGHPotential Impacts

Causes Consequences Mitigation Required Remarks

Soil contamination

Improper storage and handling of fuels and lubricants; improper disposal of waste lubricants.

Loss of soil productivity. Lost revenue.

Proper storage and handling of fuel; containment of fuel containers within concrete bunded area; proper disposal of waste lubricants.

Water pollution

Improperly disposed of used lubricants and improper handling of fuels and lubricants find their way into surface and ground water sources.

Loss of domestic and irrigation water supplies; illness to humans and livestock; lost revenue; altered and damaged aquatic ecosystems.

Proper storage and handling of fuel; containment of fuel containers within concrete bunded area; proper disposal of wastes lubricants.

Residual Impact Assuming Full Mitigation: NONE

Risk: LOW – MODERATE

Table C20

Veterinary services

Significance of Overall Potential Impacts: HIGHPotential Impacts

Causes Potential Consequences Mitigation Required Remarks

Positive: improved animal and human health

Regular vaccinations and treatments for animal diseases

Increased productivity, reduced losses, safe and better quality animal products, improved public health

Human illness Ingestion of meat products containing hormones and other chemicals.

Lost work and income. Organic methods of livestock husbandry could be used; minimal application of only necessary drugs.

Only approved drugs and hormones should be used but even these could have some long term, and yet unknown, effects on humans.

Soil and water contamination.

Insecticides used in diptanks. Contaminated soil and water not useable for cultivation Potable water or water for irrigation is contaminated;downstream aquatic ecosystems affected.

Proper containment and disposal of diptank liquids to avoid soil and water contamination.

Residual Impact Assuming Full Mitigation: NONE

Risk: LOW

MONITORING PLAN

PhaseWhat

(Is the parameter to be monitored?)

Where

(Is the parameter to be monitored?)

How

(Is the parameter to be monitored?)

When

(Define the frequency / or continuous?)

Why

(Is the parameter being

monitored?)

Cost

(if not included in project budget)

Who

(Is responsible for monitoring?)

During activity preparation

During activity implementation

During activity supervision

Annex D

Content of an Environmental Assessment

An environmental assessment report for a Category A or Category B project focuses on the significant environmental issues raised by a project. Its primary purpose is to identify those measures that, if incorporated into the design and implementation of a project can assure that the negative environmental effects will be minimized. The scope and level of detail required in the analysis depend on the magnitude and severity of potential impacts. Category A sub-projects are not eligible for funding under FSDP.

The environmental assessment report should include the following elements:

(a) Executive Summary. This concisely summarizes the significant findings and recommended actions.

(b) Policy, legal and administrative framework. This section succinctly summarizes the legal and regulatory framework that applies to environmental management in the jurisdiction where the study is done.

(c) Project Description. Describes the nature and scope of the project and the geographic, ecological, temporal and socioeconomic context in which the project will be carried out. The description should identify social groups that will be affected, include a map of the project site, and identify any off-site or support facilities that will be required for the project.

(d) Baseline data. Describe relevant physical, biological and social condition including any significant changes anticipated before the project begins. Data should be relevant to project design, location, operation or mitigation measures.

(e) Environmental impacts. Describe the likely or expected positive and negative impacts in quantitative terms to the extent possible. Identify mitigation measures and estimate residual impacts after mitigation. Describe the limits of available data and uncertainties related to the estimation of impacts and the results of proposed mitigation.

(f) Analysis of Alternatives. Systematically compare feasible alternatives to the proposed project location, design and operation including the "without project" alternative in terms of their relative impacts, costs and suitability to local conditions. For each of the alternatives quantify and compare the environmental impacts and costs relative to the proposed plan.

(g) Environmental Management Plan (EMP). If significant impacts requiring mitigation are identified, the EMP defines the mitigation that will be done, identifies key monitoring indicators and any needs for institutional strengthening for effective mitigation and monitoring to be carried out.

(h) Appendices. These should include:(i) The list of EA preparers;(ii) References used in study preparation;(iii) A chronological record of interagency meetings and consultations with NGOs and effected constituents;(iv) Tables reporting relevant data discussed in the main text, and;(v) A list of associated reports such as resettlement plans or social assessments that were prepared for the project.

Terms of reference for preparation of an environmental assessment should include this description of the study contents, and specify the composition and qualifications of the study team, the duration of the studies, the scope and nature of any primary data collection and field visits that will be required. The TORs should also include a schedule of reporting and the nature and constituencies for consultations with stakeholders that are to be carried out.

Annex E

Content of an Environmental Management Plan and Monitoring Plan

An environmental Management Plan (EMP) outlines the mitigation, monitoring and institutional strengthening measures to be taken during project implementation to avoid or eliminate negative environmental impacts. For projects of intermediate environmental risk, (Category B) an EMP may be an effective way of summarizing the activities needed to achieve effective mitigation of negative environmental impacts.

The format provided in this annex provides a model for development of an EMP. The model divides the project cycle into three phases: construction, operation and decommissioning. For each phase, the preparation team identifies any significant environmental impacts that are anticipated based on the analysis done in the context of preparing an environmental assessment. For each impact, mitigation measures are identified and listed. Estimates are made of the cost of mitigation actions broken down by estimates for installation (investment cost) and operation (recurrent cost). The EMP format also provides for the identification of institutional responsibilities for "installation" and operation of mitigation devices and methods.

To keep track of the requirements, responsibilities and costs for monitoring the implementation of environmental mitigation identified in the analysis included in an environmental assessment for Category A or B projects, a monitoring plan may be useful. A format is provided in this annex. Like the EMP the project cycle is broken down into three phases (construction, operation and decommissioning). The format also includes a row for baseline information that is critical to achieving reliable and credible monitoring. The key elements of the matrix are:

What is being monitored? Where is monitoring done? How is the parameter to be monitored to ensure meaningful comparisons? When or how frequently is monitoring necessary or most effective? Why is the parameter being monitored (what does it tell us about environmental impact)?

In addition to these questions, it is useful to identify the costs associated with monitoring (both investment and recurrent) and the institutional responsibilities.

When a monitoring plan is developed and put in place in the context of project implementation, the ABMPIU will request reports at appropriate intervals and include the findings in its periodic reporting to the World Bank and make the findings available to Bank staff during supervision missions.

Environmental Management Plan Format

Phase Environmental Impact

Mitigating Measure(s)

Cost Institutional Responsibility RemarksInstall Operate Install Operate

Construction

Operation

Decommissioning

52

Environmental Monitoring Plan Format

Phase What parameter is

to be monitored?

Where will the

parameter be monitored?

How will the parameter be monitored?

When will the parameter

be monitored?

Why is the parameter

being monitored?

Cost Institutional Responsibility

Install Operate Install Operate

Baseline

Construction

Operation

Decommissioning

53

Annex F

Field Site Visit Checklist(to be completed by Aiyl Bank loan officer and/or the FSDP CLMU environmental

specialist)

Project Name: Date/time of Visit:Oblast/Raion/Ail Okmotu: Visitors:

Location Obtain a site map or make a sketch Locate site on local map or indicate area (e.g. for grazing)

Current activity and site history Who is the site contact (name, position, contact information)? What is the area of the site to be used for project activities? What are current uses of the site? What were previous uses of the site (give dates if possible)?

Environmental Situation Are there sensitive sites nearby (nature reserves, cultural sites, historical landmarks)? Is anything known about the geology/hydrology of the site? Are there water courses on the

site? What is the terrain or slope? Is the site on a flood plain or water protection area? Does the site experience flooding, water logging or landslides? Are there signs of erosion? What are the neighboring buildings (e.g. schools, dwellings, industries) and land uses?

Estimate distances. Will the proposed site affect transportation or public utilities?

Licenses, Permits and Clearances Does the site require licenses or permits to operate the type of activity proposed? Are these

available for inspection? What environmental or other (e.g., health, forestry) authorities have jurisdiction over the

site?

Water Quality Issues Does the proposed activity use water for any purposes (give details and estimate quantity).

What is the source? Will the proposed activity produce any effluent? (estimate quantity and identify discharge

point) Is there a drainage system on site for surface waters or sewage? Is there a plan available of

existing drainage or septic systems? How is waste water managed (surface water courses, dry wells, septic tanks)?

Soils What is the ground surface (agricultural land, pasture, etc.)? Will the project damage soils during construction or operations? Will the project affect the landscape significantly (draining wetlands, changing stream

courses)

54

Biological environment Describe vegetation cover on the site. Is there information about rare or threatened flora and fauna at or near the site? If yes, would

the project have an impact or increase risk to the species? Obtain a list of vertebrate fauna and common plants of the site (if available). Note potential negative impacts on biota if project proceeds.

Visual Inspection Procedures Try to obtain a site map or make a sketch to mark details. Take photos, if permitted. Walk over as much of the site as possible, including boundaries, to note adjacent activities. Note any odors, smoke or dust emissions, standing water, etc.

55

Annex G

Final Environmental Assessment Checklist

Prior to final appraisal of a sub-project, CLMU will check to see that all necessary documentation related to environmental impacts and mitigation, permits for discharge and operations and other related documentation is complete. In completing this checklistCLMU should review the preliminary environmental checklist and any site visit reports.

Is the project documentation complete? If not what is missing?

Are land use and resource use permits required? If so have they been received?

Are discharge permits required for solid waste? If so have they been received?

Are discharge permits required for wastewater discharge? If so have they been received?

Is there a sanitary inspection required? Has a permit been issued?

Has the environmental assessment been received and approved?

Is there potential for soil degradation or contamination? If yes, have appropriate prevention or mitigation measures been planned and budgeted?

Is there potential for water quality degradation or contamination? If yes, have appropriate prevention or mitigation measures been planned and budgeted?

Is there potential for air quality degradation or contamination? If yes, have appropriate prevention or mitigation measures been planned and budgeted?

Is there a threat to the biological environment? If yes, have appropriate prevention or mitigation measures been planned and budgeted?

Is there potential for adverse impacts on the social environment? If yes, are there necessary prevention, mitigation or compensation measures planned and budgeted?

Was the level of public involvement in design and planning and public consultation sufficient? Were public concerns raised in the consultation process adequately addressed?

What is the desired level, frequency and scope of environmental monitoring during the construction phase?

What is the desired level, frequency and scope of environmental monitoring during the operational phase?

56

Annex H

EMP Checklist for Construction and Rehabilitation Activities

General Guidelines for use of EMP checklist:

For low-risk topologies, such as building rehabilitation activities, the ECA safeguards team developed an alternative to the current EMP format to provide an opportunity for a more streamlined approach to preparing EMPs for minor rehabilitation or small-scale works in building construction. The checklist-type format has been developed to provide “example good practices” and designed to be user friendly and compatible with safeguard requirements.

The EMP checklist-type format attempts to cover typical core mitigation approaches to civil works contracts with small, localized impacts. It is accepted that this format provides the key elements of an Environmental Management Plan (EMP) or Environmental Management Framework (EMF) to meet World Bank Environmental Assessment requirements under OP 4.01. The intention of this checklist is that it would be applicable as guidelines for the small works contractors and constitute an integral part of bidding documents for contractors carrying out small civil works under Bank-financed projects.

The checklist has three sections:

Part 1 includes a descriptive part that characterizes the project and specifies in terms the institutional and legislative aspects, the technical project content, the potential need for capacity building program and description of the public consultation process. This section could be up to two pages long. Attachments for additional information can be supplemented when needed.

Part 2 includes an environmental and social screening checklist, where activities and potential environmental issues can be checked in a simple Yes/No format. If any given activity/issue is triggered by checking “yes”, a reference is made to the appropriate section in the following table, which contains clearly formulated management and mitigation measures.

Part 3 represents the monitoring plan for activities during project construction and implementation. It retains the same format required for EMPs proposed under normal Bank requirements for Category B projects. It is the intent of this checklist that Part 2 and Part 3 be included into the bidding documents for contractors, priced during the bidding process and diligent implementation supervised during works execution.

57

CONTENTS

A) General Project and Site Information

B) Safeguards Information

C) Mitigation Measures

D) Monitoring Plan

58

PART 1: GENERAL PROJECT AND SITE INFORMATION

INSTITUTIONAL & ADMINISTRATIVE Country

Project title Scope of project and

activityInstitutional

arrangements(Name and contacts)

WB (Project Team Leader)

Project Management Local Counterpart and/or Recipient

Implementation arrangements

(Name and contacts)

Safeguard Supervision Local Counterpart Supervision

Local Inspectorate Supervision

Contactor

SITE DESCRIPTIONName of site

Describe site location Attachment 1: Site Map [ ]Y [ ] NWho owns the land?

Description of geographic, physical,

biological, geological, hydrographic and

socio-economic contextLocations and distance

for material sourcing, especially aggregates,

water, stones?LEGISLATION

Identify national & local legislation &

permits that apply to project activity

PUBLIC CONSULTATIONIdentify when / where

the public consultation process took place

INSTITUTIONAL CAPACITY BUILDINGWill there be any

capacity building?[ ] N or [ ]Y if Yes, Attachment 2 includes the capacity building program

59

PART 2: SAFEGUARDS INFORMATION

ENVIRONMENTAL /SOCIAL SCREENING

Will the site activity include/involve any of the following??

Activity Status Triggered Actions

A. Building rehabilitation [] Yes [ ] No See Section A below

B. Minor new construction [ ] Yes [] No See Section A below

C. Individual wastewater treatment system [ ] Yes [] No See Section B below

D. Historic building(s) and districts [ ] Yes [] No See Section C below

E. Acquisition of land5 [ ] Yes [] No See Section D below

F. Hazardous or toxic materials6 [] Yes [ ] No See Section E below

G. Impacts on forests and/or protected areas [ ] Yes [] No See Section F below

H. Handling / management of medical waste [ ] Yes [] No See Section G below

I. Traffic and Pedestrian Safety [] Yes [ ] No See Section H below

5 Land acquisitions includes displacement of people, change of livelihood encroachment on private property this is to land that is purchased/transferred and affects people who are living and/or squatters and/or operate a business (kiosks) on land that is being acquired. 6 Toxic / hazardous material includes but is not limited to asbestos, toxic paints, noxious solvents, removal of lead paint, etc.

60

PART 3: MITIGATION MEASURES

ACTIVITY PARAMETER MITIGATION MEASURES CHECKLIST

0. General Conditions Notification and Worker Safety

(a) The local construction and environment inspectorates and communities have been notified of upcoming activities(b) The public has been notified of the works through appropriate notification in the media and/or at publicly accessible sites

(including the site of the works)(c) All legally required permits have been acquired for construction and/or rehabilitation(d) The Contractor formally agrees that all work will be carried out in a safe and disciplined manner designed to minimize

impacts on neighboring residents and environment.(e) Workers’ PPE will comply with international good practice (always hardhats, as needed masks and safety glasses,

harnesses and safety boots)(f) Appropriate signposting of the sites will inform workers of key rules and regulations to follow.

A. General Rehabilitation and /or Construction Activities

Air Quality (a) During interior demolition debris-chutes shall be used above the first floor(b) Demolition debris shall be kept in controlled area and sprayed with water mist to reduce debris dust(c) During pneumatic drilling/wall destruction dust shall be suppressed by ongoing water spraying and/or installing dust

screen enclosures at site(d) The surrounding environment (side walks, roads) shall be kept free of debris to minimize dust(e) There will be no open burning of construction / waste material at the site(f) There will be no excessive idling of construction vehicles at sites

Noise (a) Construction noise will be limited to restricted times agreed to in the permit(b) During operations the engine covers of generators, air compressors and other powered mechanical equipment shall be

closed, and equipment placed as far away from residential areas as possibleWater Quality (a) The site will establish appropriate erosion and sediment control measures such as e.g. hay bales and / or silt fences to

prevent sediment from moving off site and causing excessive turbidity in nearby streams and rivers.Waste management (a) Waste collection and disposal pathways and sites will be identified for all major waste types expected from demolition

and construction activities.(b) Mineral construction and demolition wastes will be separated from general refuse, organic, liquid and chemical wastes by

on-site sorting and stored in appropriate containers.(c) Construction waste will be collected and disposed properly by licensed collectors(d) The records of waste disposal will be maintained as proof for proper management as designed.(e) Whenever feasible the contractor will reuse and recycle appropriate and viable materials (except asbestos)

B. Individual wastewater treatment system

Water Quality (a) The approach to handling sanitary wastes and wastewater from building sites (installation or reconstruction) must be approved by the local authorities

(b) Before being discharged into receiving waters, effluents from individual wastewater systems must be treated in order to meet the minimal quality criteria set out by national guidelines on effluent quality and wastewater treatment

(c) Monitoring of new wastewater systems (before/after) will be carried out(d) Construction vehicles and machinery will be washed only in designated areas where runoff will not pollute natural

surface water bodies.C. Historic building(s) Cultural Heritage (a) If the building is a designated historic structure, very close to such a structure, or located in a designated historic district,

notification shall be made and approvals/permits be obtained from local authorities and all construction activities planned and carried out in line with local and national legislation.

(b) It shall be ensured that provisions are put in place so that artifacts or other possible “chance finds” encountered in

61

excavation or construction are noted and registered, responsible officials contacted, and works activities delayed or modified to account for such finds.

D. Acquisition of land Land Acquisition Plan/Framework

(a) If expropriation of land was not expected but is required, or if loss of access to income of legal or illegal users of land was not expected but may occur, that the Bank’s Task Team Leader shall be immediately consulted.

(b) The approved Land Acquisition Plan/Framework (if required by the project) will be implementedE. Toxic Materials Asbestos management (a) If asbestos is located on the project site, it shall be marked clearly as hazardous material

(b) When possible the asbestos will be appropriately contained and sealed to minimize exposure(c) The asbestos prior to removal (if removal is necessary) will be treated with a wetting agent to minimize asbestos dust(d) Asbestos will be handled and disposed by skilled & experienced professionals(e) If asbestos material is be stored temporarily, the wastes should be securely enclosed inside closed containments and

marked appropriately. Security measures will be taken against unauthorized removal from the site.(f) The removed asbestos will not be reused

Toxic / hazardous waste management

(a) Temporarily storage on site of all hazardous or toxic substances will be in safe containers labeled with details of composition, properties and handling information

(b) The containers of hazardous substances shall be placed in an leak-proof container to prevent spillage and leaching(c) The wastes shall be transported by specially licensed carriers and disposed in a licensed facility.(d) Paints with toxic ingredients or solvents or lead-based paints will not be used

F. Affected forests, wetlands and/or protected areas

Protection (a) All recognized natural habitats, wetlands and protected areas in the immediate vicinity of the activity will not be damaged or exploited, all staff will be strictly prohibited from hunting, foraging, logging or other damaging activities.

(b) A survey and an inventory shall be made of large trees in the vicinity of the construction activity, large trees shall be marked and cordoned off with fencing, their root system protected, and any damage to the trees avoided

(c) Adjacent wetlands and streams shall be protected from construction site run-off with appropriate erosion and sediment control feature to include by not limited to hay bales and silt fences

(d) There will be no unlicensed borrow pits, quarries or waste dumps in adjacent areas, especially not in protected areas.G. Disposal of medical waste

Infrastructure for medical waste management

(a) In compliance with national regulations the contractor will insure that newly constructed and/or rehabilitated health care facilities include sufficient infrastructure for medical waste handling and disposal; this includes and not limited to: Special facilities for segregated healthcare waste (including soiled instruments “sharps”, and human tissue or fluids)

from other waste disposal; and Appropriate storage facilities for medical waste are in place; and If the activity includes facility-based treatment, appropriate disposal options are in place and operational

H Traffic and Pedestrian Safety

Direct or indirect hazards to public traffic and

pedestrians by construction activities

(b) In compliance with national regulations, the contractor will insure that the construction site is properly secured and construction related traffic regulated. This includes but is not limited to Signposting, warning signs, barriers and traffic diversions: site will be clearly visible and the public warned of all

potential hazards Traffic management system and staff training, especially for site access and near-site heavy traffic. Provision of safe

passages and crossings for pedestrians where construction traffic interferes. Adjustment of working hours to local traffic patterns, e.g. avoiding major transport activities during rush hours or

times of livestock movement Active traffic management by trained and visible staff at the site, if required for safe and convenient passage for the

public. Ensuring safe and continuous access to office facilities, shops and residences during renovation activities, if the

buildings stay open for the public.

62

PART 4: MONITORING PLAN

PhaseWhat

(Is the parameter to be monitored?)

Where

(Is the parameter to be monitored?)

How

(Is the parameter to be monitored?)

When

(Define the frequency / or continuous?)

Why

(Is the parameter being

monitored?)

Cost

(if not included in project budget)

Who

(Is responsible for monitoring?)

During activity preparation

During activity implementation

During activity supervision

Annex IEnvironmental Legislations of the Kyrgyz Republic

Law of the Kyrgyz Republic:

"On Environmental Protection", 1999 .“On Environmental impact assessment”, 1999.“On biospheric territory of the Kyrgyz Republic”, 1999.“On fauna”, 1999.Forest Code of the Kyrgyz Republic, 1999.“On plant chemicalization and plant”, 1999. "On Flora Use and Protection ", 2001. "On animals breeding in the Kyrgyz Republic, 1992. Code of administration liability of the Kyrgyz Republic Criminal Code of the Kyrgyz Republic

On accession to the International Convention:

On biodiversity (1996) 1. The Basel Convention on transboundary removal and disposal of hazardous refuse control

(1996)2. Convention of European and Mediterranean plan protection organization, 1999. UN

Framework convention on climate change (2000).3. Convention on ozone layer protection (2000).4. Convention on new plant varieties protection (2000).5. Convention on environmental impact assessment in the transboundary context dated

February 25,1991 (2001)6. On Environmental impact assessment in the transboundary context (2001)7. On the access to information, public participation in decision-making and access to justice in

environmental matters relating to the environment, Aarhus (2001).8. On international wetlands importance especially as waterfowl habitat, Ramsar (2002).9. The Stockholm Convention on Persistent Organic Pollutants (2002).10. The Cartagena Protocol on Biosafety to the UN Convention on Biological Diversity (2005)

The Kyrgyz Republic Government regulation

“Agrarian Policy Concept of the Kyrgyz Republic to 2010” dated June 22, 2004 # 465, “On measures of distant pasture use of the Kyrgyz Republic” dated November 30, 1998 # 775 “On order approval of pasture renting and use” dated September 27, 2004, # 718

The ministries orders

Order of the Minister of Agriculture, Water and Processing Industry of the Kyrgyz Republic on "On import order from other countries in the Kyrgyz Republic’s territory the seeds, not included in the State Register of the Kyrgyz Republic, divided into district and permitted for the sowing of varieties and hybrids”, dated February 19, 1998, # 42.

Annex J

Reference Documents for World Bank Operational Policies (OP) and Procedures (BP) Relevant to Environmental Assessment and World Bank Safeguard Policies

OP 4.01 Environmental Assessment http://wbln0018.worldbank.org/Institutional/Manuals/OpManual.nsf/toc2/9367A2A9D9DAEED38525672C007D0972?OpenDocument

BP 4.01 Environmental Assessmenthttp://wbln0018.worldbank.org/Institutional/Manuals/OpManual.nsf/toc2/C4241D657823FD818525672C007D096E?OpenDocument

OP 4.04 Natural Habitatshttp://wbln0018.worldbank.org/Institutional/Manuals/OpManual.nsf/toc2/71432937FA0B753F8525672C007D07AA?OpenDocument

BP. 4.04 Natural Habitatshttp://wbln0018.worldbank.org/Institutional/Manuals/OpManual.nsf/toc2/62B0042EF3FBA64D8525672C007D0773?OpenDocument

OP 4.09 Pest Managementhttp://wbln0018.worldbank.org/Institutional/Manuals/OpManual.nsf/toc2/665DA6CA847982168525672C007D07A3?OpenDocument

OP 4.11 Cultural Propertyhttp://wbln0018.worldbank.org/Institutional/Manuals/OpManual.nsf/toc2/55FA484A98BC2E68852567CC005BCBDB?OpenDocument

OP 4.12 Involuntary Resettlementhttp://wbln0018.worldbank.org/Institutional/Manuals/OpManual.nsf/toc2/CA2D01A4D1BDF58085256B19008197F6?OpenDocument

BP 4.12 Involuntary Resettlementhttp://wbln0018.worldbank.org/Institutional/Manuals/OpManual.nsf/toc2/19036F316CAFA52685256B190080B90A?OpenDocument

OD 4.20 Indigenous Peopleshttp://wbln0018.worldbank.org/Institutional/Manuals/OpManual.nsf/toc2/0F7D6F3F04DD70398525672C007D08ED?OpenDocument

OP 4.36 Forestshttp://wbln0018.worldbank.org/Institutional/Manuals/OpManual.nsf/toc2/C972D5438F4D1FB78525672C007D077A?OpenDocument

BP 4.36 Forestshttp://wbln0018.worldbank.org/Institutional/Manuals/OpManual.nsf/toc2/0AE075DC916559D985256C79000BDEF0?OpenDocument

OP 4.37 Safety of Damshttp://wbln0018.worldbank.org/Institutional/Manuals/OpManual.nsf/toc2/C12766B6C9D109548525672C007D07B9?OpenDocument

BP 4.37 Safety of Damshttp://wbln0018.worldbank.org/Institutional/Manuals/OpManual.nsf/toc2/D3448207C94C92628525672C007D0733?OpenDocument

OP 4.76 Tobaccohttp://wbln0018.worldbank.org/Institutional/Manuals/OpManual.nsf/toc2/DBE1A283D3BF9D078525672C007D075E?OpenDocument

OP 7.50 Projects on International Waterwayshttp://wbln0018.worldbank.org/Institutional/Manuals/OpManual.nsf/toc2/5F511C57E7F3A3DD8525672C007D07A2?OpenDocument

BP 7.50 Projects on International Waterwayshttp://wbln0018.worldbank.org/Institutional/Manuals/OpManual.nsf/toc2/47D35C1186367F338525672C007D07AE?OpenDocument

OP 7.60 Projects in Disputed Areashttp://wbln0018.worldbank.org/Institutional/Manuals/OpManual.nsf/toc2/72CC6840FC533D508525672C007D076B?OpenDocument

BP 7.60 Projects in Disputed Areashttp://wbln0018.worldbank.org/Institutional/Manuals/OpManual.nsf/toc2/5DB8B30312AD33108525672C007D0788?OpenDocument

Annex K

MINUTES

of the

public consultations on the Environmental Management Plan for the Agricultural Productivity Assistance Project7

Venue: Agribusiness Competitiveness Center102 Bokonbayeva Str., Bishkek

Date and time: 2.00 pm on April 25, 2011

Participants: List of participants attached

Agenda of the meeting:

1. Information on the project activities

2. Discussion of proposals and comments to the Environmental Management Plan prepared by the World Bank and the ABMP CLMU for the Agricultural Productivity Assistance Project (APAP).

Bermet Musakojoeva, Director of the Credit Line Management Unit (CLMU) for the Agribusiness and Marketing Project (ABMP), opened the hearing and presented a summary on the APAP performance.

Invited participants introduced themselves and spoke briefly about their organizations (NGOs, ONs, PAs).

On the first agenda item, Bermet Musakojoeva answered to participants’ questions about the credit line and explained that loans were issued by commercial banks to the so-called participating financial institutions (PFIs) preliminarily selected and passing applicable procedures. Cooperation under the ongoing ABMP covers the entire country. She also noted that environmental assessment of projects was made by a designated loan officer.

On the second item of the agenda, speaker Dinara Kutmanova, environmental expert, presented the environmental management plan (see the presentation attached).

Alga NGO representative, Magomed Handyshanov, noted that the use of phosphate and potash fertilizers leads to soil erosion, and suggested that the use of biological fertilizers be included into the Environmental Management Plan.

7 The stakeholder consultation held for the Environmental Management Plan for the Agricultural Productivity Assistance Project (APAP) in April 2011 is considered as the appropriate consultation for FSDP, since the FSDP EMF is based on the APAP EMP and addressed the same issues, and Aiyl Bank serves as a participating financial institution under both projects.

Representative of the Community Development Association NGO, Aida Zhamangulova, proposed that the Environmental Management Plan included an additional component on access to information, because Beneficiaries are not aware of the aspects of environmental protection.Answering the question about legislation on environmental protection, Dinara Kutmanova told that the process of updating the legislation had been constantly delayed due to the political instability in the country.

Following the discussion and exchange of views, the participants came to the following

conclusion:

1. Improve arrangements for awareness of potential borrowers about the need to meet environmental standards. The Project staff agreed with the need for implementing these activities through PFIs and local governments;

2. Cover the use of organic and biological substances in agricultural production in the Environmental Management Plan. The Project staff agreed with this proposal, while emphasizing the need for further consultation with implementing agencies and the World Bank;

3. Implement the principles of integrated production management for agricultural production and processing. The Project staff emphasized the need for further consideration of this issue;

4. Maintain close cooperation with the Ministry of Agriculture, Ministry of Natural Resources, and the Environmental Protection Agency. The Project staff fully agree with this view;

5. The priority in selection of projects should be given to women entrepreneurs because they are major agricultural producers. With equal opportunities of access to the finance, the priority will be given to female farmers.

Director, ABMP CLMU B. Musakojoeva

Director, ABCC A. Dorombaev

LISTof participants of the public consultations on the

Environmental Management Plan for the Agricultural Productivity Assistance Project

2.00 pm, April 25, 2011# Participant’s Name Organization Contact details

1 Ainura Ibraimova National Women Entrepreneurs Support Association

35-26-74wesa@elcat.kgwww.wesa.kg

2 Aida Dzhamangulova Community Development Association

66-04-47aidajam@mail.ru

3 Vladislav Ryazanov AgroInformAsia LLC, Executive Director

0552 949666vlad_ryazanov@list.ru

4 Cholpon Chekirova Ministry of Emergency Situations of the Kyrgyz Republic

54 90 17Gulnara20070101@mail.ru

5 Elena Chigibayeva Agrolead NGO66 08 18

0555 921152echigibaeva@agroliad.org

6 Magomed Handyshanov Alga NGO, agricultural development coordinator

тел.: 0 553 932284, m . handishanov @ gmail . com

7 Salkyn Sarnogoeva Ministry of Economic Development of the Kyrgyz Republic

66 40 23S.sarnogoeva@mert.kg

8 Xenia Zinchuk AgroInformAsia LLC, analyst agroinformasia@mail.ru

9 Ryspek Satylkanov Renewable Energy Sources of KR NGO, Chairman

10 Bermet Musakojoeva CLMU Director 620429b.musakojoeva@gtac.mail.kg

11 Almazbek Dorombaev Acting Director 30 16 63Dorombaev@agromarket.kg

12 Kanat OmuraliyevPublic Sector Capacity

Improvement, component director

omuraliev@agromarket.kg

13 Dinara Kutmanova ABM CLMU,Environmental Consultant

0555 88-05-85'k-dinara@bk.ru'