E1016Volume 1

Alborz Integrated Land and WaterManagement Project (AILWMP)

Supplementary Environmental

I and Social Assessment

Il

Executive SummarySeptember 2004

llIII

1 ~~~~~~~~~~~~9/16/2004FI E C P

Pub

lic D

iscl

osur

e A

utho

rized

Pub

lic D

iscl

osur

e A

utho

rized

Pub

lic D

iscl

osur

e A

utho

rized

Pub

lic D

iscl

osur

e A

utho

rized

Pub

lic D

iscl

osur

e A

utho

rized

Pub

lic D

iscl

osur

e A

utho

rized

Pub

lic D

iscl

osur

e A

utho

rized

Pub

lic D

iscl

osur

e A

utho

rized

I I TABLE OF CONTENTS

3I0 EXECUTIVE SUMMARY III

0.1 INTRODUCTION I

0.2 REGULATORYANDADMINISTRATIVE FRAMEWORK 3

0.3 PROJECT DESCRIPTION 7

0.4 ENVIRONMENTAL AND SOCIAL BASELINE CONDITIONS 12

0.5 ASSESSMENT OF ENVIRONMENTAL AND SOCIAL IMPACTS 240.6 PUBLIC CONSULTATIONS ON THE AILWMP 32£ 0.7 ENVIRONMENTAL AND SOCIAL MANAGEMENT PLAN (ESMP) 34

Annex A: Environmental and Social Management Plan (ESMP) for AILWMPU Annex B: Resettlement Plan and Frameworks

IIlIIIIIII

0-III9/16/2004

LIST OF ACROYNMS

IAlLWMP Alborz Integrated Land and Water Management ProjectANOVA Analysis of VarianceI a.s.l. above sea levelASC Agricultural Service CentersBOD Biological Oxygen DemandBP Bank Procedure (World Bank)BWC Basin-Wide CommitteeBWF Basin Water Fund

J BWMF Basin Water Management FundCAS Country Assistance StrategyCDD Community Driven DevelopmentI CEP Caspian Environmental ProgramCHO Cultural Heritage OfficeCLO Central Liaison OfficeI COD Chemical Oxygen DemandCWRAS Country Water Resources Assistance StrategyDDT dichlorodiphenyltrichloroethaneI DO Dissolved OxygenDOE Department of EnvironmentEA Environmental AssessmentI EAWRP Eastern Anatolia Watershed Rehabilitation Project (World Bank)EC Electric ConductivityEFS Extension and Farming SystemsI EIA Environmental Impact AssessmentEMP Environmental Management PlanEPP Emergency Preparedness Plan

J ESA Environmental and Social AssessmentESMP Environmental and Social Management PlanFFS Farmer Field SchoolI FRWO Forest, Rangeland and Watershed Organisation (of MOJA)GIS Geographic Information SystemGOI Government of the Islamic Republic of IranGPS Global Positioning SystemGSRC Government Stakeholder Representation CommitteeGW Groundwater

J ha HectaresIAS Interim Assistance Strategy (of World Bank)I&D Irrigation and DrainageIMS Information Management SystemIPM Integrated Pest ManagementIPPPM Integrated Pest and Plant Protection Management

J I.R. Islamic RepublicIUCN International Union for Conservation of Nature & Natural

ResourcesI IWMV Integrated Water Resources Management

IWRM Integrated Water Resources ManagementIWMU Integrated Water Management Unit

e IUCN International Union for Conservation of Nature and Natural

o-IV

1 9/16/2004

Resourceskm Kilometer

| LO Liaison OfficeLUP Land Use PlanningM&E Monitoring and EvaluationI mcm Million cubic metersMCC Main Conveyance CanalMEF Ministry of Economy and FinanceI MDOE Mazandaran Provincial Department of EnvironmentMDOFA Mazandaran Department of Fisheries and Aquaculture

MGCE Mahab Ghodss Consulting EngineersJ meq Micro-equivalent

MGCE Mahab Ghodss Consulting EngineersMGRWC Mazandaran and Golestan Regional Water Company

f MGW Mega WattsMIS Management Information Systems UnitMJAD Mazandaran Jihad and Agriculture Department

| mm MillimeterMNA Middle East/North AfricaMOE Ministry of Energy and Water

f MOH Ministry of HealthMOEF Ministry of Economics and FinanceMOH Ministry of Health£ MOJA Ministry of Jihad AgricultureMPO Management & Planning Organization (Govt. of I.R. Iran)

O&M Operation and MaintenanceI MPPO Mazandaran Plant Protection OfficeOMC Mazandaran Operation and Maintenance Company (irrigation)MR Million RialMRWA Mazandaran Regional Water AuthorityNCAP National Caspian Action PlanNDB National Development BudgetI NGO Non-governmental OrganizationO&M Operation and ManagementOP Operational Policy (of the World Bank)I OMC Operation and Maintenance CompanyPCB Polychlorinated BiphenylsPDRI Plantpest and Disease Research InstituteI pH Chemistry potential of HydrogenPIPP Priority Investment Project PortfolioPIC Prior Inforned ConsentI PIU Project Implementation UnitPMF Probable Maximum FloodPOE Panel of ExpertsI PPD Plant Protection DirectoratePPDR Pest and Disease Research InstitutePOP Persistent Organic PollutantsPPO Plant Protection Organization (of MOJA)PSI Pollution Standard IndexRP Resettlement Plan

| RPF Resettlement Policy Framework

O-V9/16/2004

SAP Strategic Action ProgramSPSS Standard Procedure of Scientific StudiesSTD Socio-institutional Development TeamsTDA Transboundary Diagnostic OxygenTDS Total Dissolved SolidsTSS Total Suspended SolidsUNDP Untied Nations Development ProgramUNEP United Nations Environment ProgramUS$ United States DollarsWB World BankWHO World Health OrganizationWQ Water QualityWUA Water User Association

vUG Water User Group

IX

IlIIlllI

0-VI1 ~~~~~~~~~~~~~9/16/2004

0 EXECUTIVE SUMMARY

l0.1 INTRODUCTION

This Executive Summary presents the main findings of the SupplementanyEnvironmental and Social Assessment (ESA) of the Alborz Integrated Land and Water

Management Project (AILWMP).

| An Environmental Impact Assessment (EIA) of the Alborz Dam, including the

irrigation and drainage network, was prepared in 1997 by Mahab Ghodss

Consulting Engineers of Iran and, after several revisions, approved by theI Department of Environment (DOE) in 2003. An English translation of the EIA

was prepared in 2002. As part of the preparation of the AILWMP, the

Government of Iran (GOI) has decided to conduct further studies and

* complement the original EIA with a Supplementary ESA, 31 March 2004; the two

reports together constituting a.full environmnental and social assessment. An

electronic version of the original EIA (on CD-ROM) is available together with this

Supplementary ESA.

I This Executive Summary is intended to be a self-contained, stand-alone document

that can be relied upon to provide major information necessary to understand the

environmental and social sensitivities, potentially significant impacts, and

* mitigation measures to be undertaken under the proposed project. The reader is

referred to the main body of the ESA and/or original EIA for specific information

or further details not presented in depth in this summary, in particular for a

description of the existing social and ecological environment as well as relevant

baseline data.

The Project is proposed for partial financing by the World Bank and as such will

have to comply with World Bank guidelines relative to environmental and social

safeguard policies as well as applicable laws and regulations of the GOI.

The ESA was prepared on behalf of the GOI by Mahab Ghodss Consulting

Engineers, with the assistance of several consultants listed in the ESA.

0.1.1 Background

The Alborz Dam is being constructed on the Babol River and is located just

| downstream of the confluence of the tributaries Azar, Karsang and Eskelim. The

main purpose of the Alborz Dam is to provide a reliable supply of water for

irrigation of the agricultural plains between the Alborz Mountains and theI Caspian Sea in Mazandaran Province. The construction of the dam commenced

in 1999 with funding from the GOI and it is expected to be completed in 2006.I0-1

3 9/16/2004

While the Alborz Dam is exclusively funded and constructed by the GOI, the GOI

has requested a loan from the World Bank to support the construction of an

irrigation and drainage network to be irrigated by the dam in Mazandaran. The

GOI agreed to integrate this irrigation and drainage network into a

comprehensive project introducing integrated watershed planning and

management in Iran. This integrated project is referred to as the AILWMP.

0.1.2 Supplementary Environmental and Social Assessment

As described above, as part of the preparation of the AILWMP, the GOI has

decided to conduct further studies and complement the original EIA with a

Supplemeintary ESA. The Supplementary ESA covers the entire area of the

AILWMP (including the upper catchments, middle section and lower lands) and

addresses issues that were not fully covered in the original EIA.

The Supplementary ESA is also consistent with the recommendations of the

Country Water Resources Management Strategy (CWRAS) recently prepared by

the World Bank, which indicated that many dam projects have not produced

positive impacts on the ground due to uncoordinated downstream irrigation and

on-farm management practices, and poor upper watershed management leading

to the rapid siltation of dam reservoirs.

Although the Alborz Dam is not financed by the AILWMP, it falls within the

project area and therefore the aforementioned EIA was reviewed for compliance

with the Bank environmental and social safeguard policies. The Supplementary

ESA covers a larger project area than the original EIA, it considers all aspects of

an integrated water basin approach (rather than a stand-alone dam water storage

project), and it provides supplemental social and environmental mitigation,

monitoring and capacity building measures, as will be fully described below.

With regards to the World Bank safeguard policies, several major issues have

been addressed within the Supplementary ESA. For example, the GOI recently

established the Dam Safety Panel of Experts (POE) in order to examine the

soundness of the design, construction plan, and operation and maintenance

aspects, as outlined in Operational Policy (OP) 4.37 Safety of Dams. The Dam

Safety POE provided its findings and recommendations in order to secure the

safety of the dam as well as optimized operation and sustainable reservoir

management.

The GOI also prepared three resettlement instruments in accordance with the

Bank's OP 4.12 Involuntary Resettlement, which included mechanisms for those

who have already been relocated with compensation according to Iranian law,

and for retrospective compensation. These are examples where World Bank

support has proved beneficial for all stakeholders, particularly the poor living in

the upper watershed who are frequently left without adequate compensation.

0-23 ~~~~~~~~~~~~~9/16/2004

In addition to the aforementioned dam safety and resettlement aspects, the EIAreview also concluded that a number of the expected joint environmental andI social impacts of the Alborz Dam Project and the AILWMP were not covered insufficient detail. The Supplementary ESA addressed the potential impacts of the

AILWMP as is fully described below.

3 0.2 REGULATORY AND ADMINISTRATIVE FRAMEWORK

0.2.1 National Legal Framework

Iran has a comprehensive legal framework guiding water resources management

and environmental management and protection. Article 50 of the Constitution ofI Islamic Republic of Iran declares the protection of the environment a publicobligation and therefore "economic and any other activity, which results in pollution or5 irremediable destruction of the environment, is prohiibited".

Important laws relevant to the AILWMP include:I * The Plant Protection Act (1967) and the Plant Protection Implementation

Regulation* Law on the Protection of Forest and Rangelands (1967)1I * Environmental Protection and Enhancement Act (1974)* Law for Endangered Species of Wild Fauna and Flora (1974)

* Law for Protection of the Natural Parks, Protected Areas and Sensitive Areas

(1975)* Land Acquisition Law (1980)3 * Law for Proper Use of Water Resources (1982)* Law for Environmental Protection Against Water Pollution (1984)

* Law on Economical, Cultural, Societal Development (1989)

J . Law for Protection Against Natural Environmental Damages (1991)

* Law for Environmental Protection and Development (1991)

Furthermore, regulations under the current 3rd Five-Year Development Plan (2000-

2005) address relevant water and environmental aspects. The Executive Bylaw

| for Paragraph (c) of Articles 104 and 134 include (i) the categorization of waterbodies based on their environmental sensitivity; (ii) the establishment of nationaldischarge standards; and (iii) the set-up of an enforcement mechanism for

discharge standards compliance based on fines.

Iran has taken several measures to enhance international cooperation withrelation to environmental affairs and has accepted international legalresponsibilities by adhering to a substantial number of international conventions.I These include the Convention on Biodiversity, the Convention on Wetlands ("Ramsar"

3 1 The Law is presently under review to make room for more community involvement and participation

0-39/16/2004

Convention), the World Heritage Convention, CITES, the Rotterdam Convention on theprior Informed Consent Procedure for Certain Hazardous Chemicals and Pesticides inU International Trade, Stockholm Convention on Persistent Organic Pollutants, and theKyoto Convention on Climate Change (since 1997).

1 0.2.2 National Policy Framework

The AILWMP will be implemented under the overall policies and provisions ofIran's Five Year Development Plans, of which the fourth is currently underpreparation, and in accordance with the GOI's environmental strategies. In 1993,

| the National Strategyfor Environmental Sustainable Development was adopted. Itsframework included an environmentally-oriented set of policies in the 2nd Five-Year Development Plan (1994-1999) and fostered increasing public awareness on

* issues related to sustainable development in the country and their relationship tointernational environmental concerns.

In the forestry sector, the GOI is pursuing a strategy of multiple-use forestutilization and is launching a vigorous national program to reclaim destore3 forests and rangelands, protect watersheds and manage natural and man-madeforests on a sustained-yield basis. The government is promoting the creation offorest cooperatives that are organized at the level of individual watersheds and1 forested sub-catchments. The cooperatives are envisaged to enter into acontractual relationship with the GOI and obtain long-term concessions to carryout various forest management and rehabilitation activities at the watershedlevel. The GOI is also encouraging the private sector to get involved in long-termconcession management of large forest areas with the objective of sustainable3 commercial forestry.

In terms of resettlement, the Ministry of Jihad and Reconstruction (MOJA) isI responsible for resettlement. Order No.1948/S1O/V (1996) and the subsequentamendments of 2001 and 2003 guide the resettlement process of forest dwellers,including the relocation of livestock herders from degraded rangeland andforests. The Order is applicable to all settlements and animal husbandry unitslocated within designated forests as approved by the Forest, Range and

| Watershed Organization (FRWO) under MOJA. Compensation and other benefitsprescribed under the Order will be available to those who (i) participate in theresettlement program; (ii) remove all livestock from the forest; (iii) surrender allI exemptions they enjoyed within the forest area; and (iv) formally give up allclaims and rights they had inside these areas. Under this national program, allsingle forest dwellers and villages fewer than 20 households need to participate in

the plan.

5 0.2.3 National and Regional Institutional Framework

Regional development programs are prepared by the provincial ministry offices3 and submitted to the central government and respective ministries for approval.

0-49/16/2004

After review and modifications, the regional development programs areconsolidated into the National Development Program, which is then submitted forI approval. The individual programs and associated budgets are then passed toeach ministry for implementation.

Different ministries and organizations are responsible for different aspects relatedto the project: The MOE is responsible for water supply and water resources

| management issues through the Mazandaran and Golestan Regional Water Company(MGRWC) and, in the field of irrigation, through the Operation and MaintenanceCompany (OMC).

MOJA is responsible for (i) forest and watershed management through the FRWO;(ii) Integrated Pest Management (IPM) and biological pest control through thePlant Protection Office (PPO) in Mazandaran Province; and (iii) the provision ofextension services to farmers through the regional extension service

| organizations. Currently, there are no plant protection officers at the rural servicecenter level, which poses a major constraint for promoting and strengtheningIPM.

The Department of Environment (DOE) has overall responsibility to 'guarantee wiseand permanent use of the environment in compliance with sustainable development' as

J well as 'preventing the destruction and pollution of the environment, and taking decisiveaction to control critical environmental situations including extreme pollution'. The

| DOE has an important environmental monitoring role as well as theresponsibility to enforce relevant laws under its jurisdiction.

3 0.2.4 World Bank Safeguard Policies

The AILWMP is classified as a Category A project under OP 4.01. AnEnvironmental Assessment (EA) and the development of an Environmental andSocial Management Plan (ESMP) that describes measures to mitigate negativeproject impacts and environmental monitoring arrangements are thereforerequired. The ESMP constitutes one of the five components of the AILWMP andincludes detailed list of mitigation activities as well as a budget plan and schedule

| for the implementation of the ESMP.

In addition to OP 4.01, the AILWMP triggers six World Bank environmental andI social safeguard policies. The policies are described below (Table 1.1).

lI

0-59/16/2004

Table 0.1 World Bank Safeguard Policies and AILWMPActions

3 Safeguard Policy AILWMP ActionEnvironmental Assessment (OP 4.01) An Environmental and Social Assessment has been

prepared that includes an Environmental and SocialManagement Plan as well as an environmental monitoringprogram (AILWMP Component 4).

Pest Management (OP 4.09) A comprehensive Pest Management Report and Plan hasbeen prepared by MOJA. As part of the ESMP, the planI includes proposals for Integrated Pest Management (IPM)and biological pest control activities.

Cultural Property (OPN 11.03, being The Cultural Heritage Office in Sari, Mazandaranrevised as OP 4.11) confirmed that there are no valuable cultural and religious

properties in the areas of the Alborz Dam project and theAILWMP. Chance find procedures are in place duringI construction in compliance with GOI and World Banksafeguard policies.

Involuntary Resettlement (4.12) A Resettlement Plan (RP) for the Alborz Dam site has beenprepared. A Resettlement Policy Framework (RPF) for theupper watershed and one for the lower watershed areahave been prepared.

Forests (OP 4.36) A participatory community-based forest managementprogram will be designed under the AILWMP UpperWatershed and Forest Management Component. Thiscomponent includes participatory master planning of

J forestry and water resource protection activities during theinception phase of the component as well as community-based implementation and management arrangements.

Safety of Dams (OP 4.37) A Dam Safety Plan is currently under preparation byMGRWC. A Dam Safety Panel of Independent Expertswas established and held its first round of meetings and asite visit (February 2004). A first set of dam safetyI recommendations to the MGRWC has been prepared.Recommendations and guidance will be provided in theform of regular dam safety reports on constructionsupervision, operation and maintenance (O&M),instrumentation and emergency preparedness.

Project on International Waterways Rivers originating in the project area enter the Caspian Sea,I (OP 7.50) thus, the AILWMP triggers OP 7.50. The impact of therivers of the project area on the Caspian Sea has beenassessed and found insignificant both in terms of waterquantity and quality. In order to comply with the policy,project notification letters will be issued soon and sent tothe riparian countries of the Caspian Sea, i.e. Azerbaijan,Russia, Kazakhstan and Turkmenistan.

Il

0-69/16/2004

0.3 PROJECT DESCRIPTION

3 0.3.1 Project Area

The project area, shown in Figure 0.1, includes the: (i) upper watershed, coveringtemperate forests and alpine rangelands; (ii) middle lands, which are comprisedof irrigated valley bottoms and mostly degraded forests on hill sides; and (iii)lower lands, which are composed of irrigated plains close to the Caspian Sea. Inall, the AILWMP covers a total area of 1,347 km2 , of which the upper watershedcovers 346 km2 , the middle lands 110 km2 , and the lower lands 891 km2.

The upper watershed ranges from mountain tops at 3,300 meters a.s.l. down tothe Alborz Dam site at 190 meters a.s.l. The middle section is defined as the areabetween the Alborz Dam and the beginning of the main irrigation canal, at anelevation of 150 meters a.s.l. The lower lands are located between 150 to -25meters a.s.l (Caspian Sea coast). They are densely populated and predominantlyI used for irrigation agriculture. The six main cities of the project area (Babol,Babolsar, Amirkola, Azizak, Joybar and Behnamir) are also located in the lower

3 lands, where the vast majority of the 1 million population in the project arealives (1)

5 | It should be noted that the Alborz Dam falls within the project area; however, it isnot a component of the AILWMP itself. The AILWMP was developed to mitigatepotential negative impacts and enhance positive impacts of the dam on the

J surrounding environment. However, since the dam falls within the project area ofthe AILWMP, due diligence was conducted on the dam by the World Bank prior3 to initiation of project preparation.

0.3.2 Extended Project Area

In addition to the above, there is also an extended project area whichencompasses the entire catchment of the Talar and Siah Rivers in addition to theupper catchment of the Babol River, as illustrated in Figure 1.2.

Due to the hydrological connection that exists between the extended project areaI and the lower lands in the main project area, activities in the former will influenceconditions in the latter, but not vice versa. For this reason, project activitiesinclude a limited hydrological data collection program in the extended projectarea in order to provide inputs to water balance modeling and forecastinganalyses for the project area.

I| (1) Of this population, approximately 214,000 (the rural population) will be beneficiaries of the ILWMP, in addition to

approximately 3400 inhabitants in the upper watershed.

0-73 9/16/2004

- PROJECT AREA BOUNDARY IL lCfW 0 ANsea- - SUIB PROJECT BOUNDARIES AL9ORZI~TREWIMLAND AND~ CaP 0

BANK FNANCED MAIN CANALS

BANK FINANCED PRIMARY CANALS

GOVERNMENT FINJANCED MAIN CANAL

NEW DAMSIWEIRS

- BANK FINANCED DIVERSION WEIR

- GOVERNMENT FINANCED EYISTING WEIR 03-GOVERNMENT FINANCED DIVERSKON WEIR

JUNDER CONSETRUICYON)

* GOVERNMENT FINANCED EXISTING, STORAGE DAM

GOVERNMENT FINANCED STORAGE DAM

NEW DRAINS

3 ~ ~ ~ ~ ~ BA~~~~NK FINANCCED MAIN DRIN

BANK INANCEDPRIMARY DRAINS5 ~~~~~~~~- - - BANK FINANCED SECONDARY DRAINS

BANK FINANICED PIPELINE

.G COVERNMENT fiNANCED DIVERSION TTJE#.EL

Z,FlTR"E RESERVOIR C1I ~ ~ ~ ~~~ C~~~ANAL SYSTEMS RANK FINANCED REHABILITATION)- BANK FINANCED PUP STATIONS

_MONITORING WELLS

A GAUGING STATIONS

A_OTHER MONITORING FONTSEXISTING TRADTIONJAL IRRIGATION AREAS

NEW IRRIGATION AREAS

OFF STRZEAM STORAGE PONDS(BANK PENANCED REHABIUTATION)m BUILT-UP AREA 7

---ASPHALT ROADS

NON ASPHiALT ROADS

-RAILROADS

IqFG4.TONlANP DRAINSAGE~ MALNJQEmEN1 COmpOE*rl a"E4o NT.AREA CHEAT'I;

FoRB73 RB3 -. b

nsI ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~~o

~~~~~~~~~~IEI~~~~~~~~~~~~~~~~~~~~~~~~~~E------ W.,.,KOR I6 EP 1 S

60 "JI SU

4EN.STAN

-.~~~~~~~~~~~~~~~~~~~~~1

0 A~~~~~~~~~~~~~~~~~1

B. ~~~~. ~ISLAMIC 0AGNIA A

RE U LCO

W Af, ted L S\n W §Xi;g US

IL

R ) j \ J b i t , ; Ed| an

i~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~RMM 2U 1S

0.3.3 Project Development Objective

3 The AILWMP will introduce an integrated river basin approach to land and waterresources management, which will be the first of its kind in Iran.

I The development objective of the project is to enhance current GOI efforts to achievesustainable integrated land and water management at basin level through:

* Sustainably increasing agricultural productivity through the improvedirrigation and drainage system and participatory management mechanism;

| * Reducing soil erosion and sediment yields into the Alborz Dam, which iscurrently under construction using the GOI funds, through improved upperwatershed management; and

* * Protecting the water environment downstream of the Babol River and otherwater bodies through improved hydrological / water quality monitoring,

| reservoir operation, and pest management.

The project will ensure the sustainable management of water resources3 throughout the Alborz River Basin in Mazandaran Province. Improving themanagement of forests and rangeland in the upper watershed of the Alborz Damwill reduce watershed degradation, soil erosion and siltation, thereby benefitingI all stakeholders in the rural and urban areas downstream. By including waterusers in farm-level Water Users Associations (WUA), the development of forestcooperatives at the micro-catchment level, and a Basin Water Conmmittee (BWC), theproject adopts the subsidiarity principle and supports decision making on waterresources management and implementation at the lowest appropriate3 administrative and institutional levels. A comprehensive river basindevelopment approach will facilitate solutions to basin-level water allocation andwater quality problems, which will eventually lead to better natural resourcemanagement and conservation.

The design of the project represents an attempt to solve inter-sectoral waterconflicts over ground and surface water allocation and usage in an efficient,economic and equitable manner for long-term implementation. This will provide3 valuable lessons for potential replication in other river basins of the country in theforthcoming 4th Five-Year Development Plan of the GOI.

3 0.3.4 Project Components

The Project will comprise the following five components:

Component 1. Upper Watershed, Forestry and Rangeland Management (BaseCost (US$ 13 million): This will include: (i) technical assistance for preparing an

XIupper watershed master plan and capacity building for community managementorganizations; (ii) forest and rangeland rehabilitation and management including3 nursery construction and natural / artificial stands regeneration (51,500 ha); and

0-109/16/2004

(iii) soil and water protection measures, such as gabion check structures and othervegetative measures, over the upper watershed area. This component aims at

4 establishing effective soil and water protection measures by improvingsustainable and participatory community-based forest and rangelandmanagement including the establishment of cooperatives in the upper watershed;

The Upper Waterslhed and Forestry Managenment Component will have an inception3 phase of 1-11/2 years with the preparation of a comprehensive master plan beingthe key activity. The inception phase will be followed by an implementationphase focusing on forest replanting, rangeland rehabilitation, and construction of3 watershed protection structures.

Component 2. Irrigation and Drainage Management (Base cost US$130 million):This will include: (i) rehabilitation and construction of irrigation and drainagesystems covering a total area of about 52,000 ha, comprising 33,000 ha oftraditional irrigation areas, and 19,000 ha of new irrigation areas which arecurrently being rainfed with supplementary irrigation by groundwater; (ii)capacity building and technical assistance for establishment of WUAs to manage3 secondary networks and cost recovery of O&M expenditures, and (iii) agriculturalextension and research activities to support farmers for improved watermanagement, crop diversification and increased income. This component aims atI supporting the enhancement of irrigation water use efficiency and agricultureproduction/income by rehabilitation and modernization of theirrigation/ drainage systems, together with improved O&M, diffusion ofparticipatory water management, and training and support for agricultureextension/research.

The Irrigation and Drainage Coniponent is divided into a construction and anoperations phase. There will also be a mobilization and a consolidation phaseI concerning the formation and establishment of WUA. The execution of theirrigation and drainage network construction will start one year after the

completion of dam construction, but should be completed with dam priming.The execution of some parts of the network will start in 2006, five years after damcompletion.

Component 3. Integrated Water Resources Management (Base cost US$ 7 million):This component will finance: (i) technical assistance to establish a Basin WaterI Committee (BWC); (ii) a Basin Water Fund (BWF) providing assistance forcommunity based activities for water and natural resource conservation, and (iii)the establishment of a support system that enables the BWC to discharge its

* mandate of involving stakeholders by sharing information on environmentalimpacts, benefits of the project, and promoting water conservation in the basin.

* Inter-sectoral consultation and information dissemination activities will includethe development of a Geographic Information System (GIS) and local workshops.3 The preparation and management of an integrated water distribution system for

0-113 9/16/2004

optimized water delivery covering the dam reservoir and farm areas will include:(i) improvements to hydrometric data collection and processing; (ii) an integratedU water management unit; and (iii) system development for optimized waterrelease and distribution for irrigation areas, including ab-bandans. The3 implementing agencies will be MOJA and MGRWC.

Component 4. Environmental Management (Base cost US$ 8.5 million): This will3 include the following subjects as identified in the Environmental and SocialManagement Plan (ESMP): (i) water quality monitoring in rivers, aquifers andabbandans, (ii) river ecology monitoring and mitigation; (iii) forest monitoringI and management; (iv) an integrated pest management plan; (v) resettlementinstruments; (vi) a dam safety plan; (vii) physical cultural property; and (viii)public participation and awareness raising. These will be provided in the form of

* technical assistance for special studies, monitoring equipment provision andcapacity building trainings for governmental staff and users as well as prioritized3 mitigatory measures.

Component 5. Project Implementation and Coordination Support (Base cost US$ 4| million): This component will provide support for project implementation and

coordination at the national and basin level. The component will also provideinstitutional support for MOJA and MGRWC including strategic sectoral andfeasibility studies for future projects.

The GOI and the World Bank agreed that the project implementation period willbe seven years.

0.4 ENVIRONMENTAL AND SOCIAL BASELINE CONDITIONS

3 0.4.1 Hydrological Characteristics

Average river flows in the two main rivers in the project area are shown in Table1.2. River flows reach their peak levels during the winter from November to April(highest level in March), while the lowest flow levels are recorded during the3 period from June-August.

Table 0.2 The Average Flows of the Two Main Rivers, Talar and Babol

I River River Station Annual Flow StatisticsAverage (m3 /s) Volume (MCM)

Babol Guran Talar (upper) 8.2 258Babol Babol 15.7 492Babol Miandasht (lower) [1] 13.4 420Talar Shirgah (upper) 7.5 236I Talar Kiakola (lower) 9.9 310

[t] Averageflows at Miandasht are lower t1zan at Babol due to irrigation abstraction between stations

0-129/16/2004

Groundwater in the project area is characterized by one single aquifer. Thegroundwater table is relatively deep in the upper watershed and shallow in themiddle and lower lands, in some cases as high 1 meter below the surface. Thedirection of the groundwater flow is from south to north. The water table depthin Babol City and further downstream is only 2 to 3.5 meters. Due togroundwater extraction, mainly for agriculture, the water table falls during thedry season, but is recharged during winter and returns to the original level afterthe rainy season.

The total water consumption (ground and surface water) in the project areaamounts to approximately 526 MCM/year, of which 97 percent is consumed inthe densely populated lower and middle lands. Of this more than 90 percent isconsumed by the agricultural sector. Groundwater provides over 60% of thewater consumed in the middle and lower lands, and is also the main source ofagricultural supply (approximately 60%) and virtually the sole source of drinkingwater (over 97%).

The following sections summarize some of the other physical characteristics of theproject area.

Upper Watershed

The upper watershed in the Alborz Mountains consists mostly of Miocene limestone.The annual precipitation in the upper parts is 600 to 700 mm. Infiltration is rapid,precipitation water quickly penetrates the soils to the bedrock before it is slowlydischarged to the river streams. Thus, there is continuous water dischargethroughout the year and stable river flows during the dry season.

The upper watershed is part of the Caspian Fault that stretches along the northernslopes of the Alborz mountain range. The area is extremely prone to earthquakes.The fault line is very active with an earthquake potential of 7.2 on the Richterscale. The highest recorded earthquake in the upper watershed was 6.2 on theRichter scale. The seismic activity level in the upper watershed renders a seismicrisk assessment and analysis of the Alborz Dam and other infrastructure highlyimportant.

Most of the upper watershed is still forested. Because of the generally goodvegetation cover, landslides and soil erosion are limited. However, severeerosion occurs on the degraded alpine grasslands at higher altitudes. The maincauses of erosion are livestock grazing and movement on steep, unstable slopes.

The Babol River originates in the upper watershed. The main tributaries, Azar,Eskelim and Karsang Rivers, join the Babol River 1-3 km above the dam site.Babolak River joins the river system immediately below the dam site. Sajad andKharon rivers join Babol River between the Ganj-Afrooz diversion weir and the

0-139/16/2004

city of Babol. The total annual water discharge of Babol River at the dam site is215 MCM.

Middle Land

The middle land is a transition zone between the upper watershed and the lowerlands, with cultivated, flat valleys surrounded by hills up to 500 meters a.s.l.3 Limestone underlies the hills and the valleys are alluvial. Soil types are mostlycomprised of silty clay and the sandy fractions increase towards the north.Infiltration rates are low because of texture and the underlying bedrock. Soils areI well suited for paddy rice cultivation. Precipitation is highest in the middlesection with up to 1000-1100 mm/year in Quran-talar. Precipitation is highestduring October and November and lowest during the summer (June).

Lower lands

The lower lands between the middle lands and the Caspian Sea consist ofcultivated plains with a maximum elevation of 150 m a.s.l. Soils are derived from3 alluvial deposits on Miocene rocks during the quaternary era. Soil types are siltyclay soils with high organic content in the areas between Ghaemshahr and Babolto Amirkola. Light sand soils can be found near the shore of the Caspian Sea.

* The average annual rainfall in the lower lands ranges from 800 to 900 mm.Seismic activity is less intense than in upper and middle lands.

In the northeast of the project area, including sections of the Talar, Babol, andHaraz plains, saline seawater is intruding into the coastal fresh water aquifers due3 to minor elevation differences between the sea and the ground surface and theunsustainable extraction of groundwater. This intrusion is occurring in mostparts of the eastern coastal areas of the plain, starting from Babolsar all the way to

* the outlet of the Siah River. In some of these areas, the intrusion of seawater hasadvanced to inland areas as far as 6 to 8 km. To prevent the further intrusion ofseawater, it will be necessary, through ensuring adequate groundwater recharge,to establish a ground water level that is permanently above the sea surface. Thereservoir of the Alborz Dam will contribute to raising current groundwater levels.

0.4.2 Water Quality

3 As described above, surface waters in the project area are mostly used foragriculture and are rarely used for drinking, except in some parts of the upperwatershed. The most important water body in the area is the Babol River. Other

* important surface water bodies are the Talar and Siah rivers and the ab-bandans(ponds) that are used for irrigation supply and (in some cases) aquaculture in the3 lower lands.

Irrigation water will be diverted at two diversions weirs, Ganj-Afrooz and3 Reiskola, located on the Babol River within the project area. At these two

0-149/16/2004

diversion weirs there is good water quality, and the diverted water is consideredsuitable for irrigation use. However in the lower parts of the Babol River thewater quality becomes degraded due to contamination by general agriculturalrun-off and due to many point sources of industrial and commercial outfalls nearthe urban areas. The water quality in the lower reaches of the Babol River issometimes not suitable for irrigation uses.

While the data available on the physical environment are reasonably good, theavailable data on the chemical environment, especially water chemical propertiesand pollution levels, are insufficient to establish a clear and detailed picture of thecurrent situation of water resources. There is a particular shortage of data onwater quality both for surface water and groundwater resources, and thereliability of the available data are questionable in some cases.

The below assessment of the baseline conditions is therefore incomplete andinadequate for the establishment of a monitoring baseline against which projectimpacts can be evaluated. The establishment of a reliable set of baseline data onwater quality and pollution levels will therefore be a priority activity under theAILWMP. Comprehensive support to strengthening water quality and pollutionmonitoring is included in the ESMP.

Surface Water Quality in the Upper Watershed

In the upper watershed, the Azar, Eskelim and Karsang rivers represent the maintributaries of the Babol River above the Alborz Dam site. Since these rivers arelocated in high mountainous areas with little human activity, chemical andbiological pollution levels are not expected to be high.

The quality of these rivers is not recorded regularly, but samples were taken in1997 for the EIA of the Alborz Dam. These indicated that overall quality appearsto be fairly good in all three tributaries, with reasonably high dissolved oxygenlevels (in excess of 10 mg/l) and relatively low conductivity, nutrient and BODlevels. In all, the water quality appears to be reasonably good for both ecosystemand water supply purposes.

Surface Water Quality in tle Middle Land

In the middle land, the two main rivers are the Babol and Babolak. The latter joinsthe Babol just downstream of the Alborz Dam site. Whilst the level of industrialand, in particular, agricultural activity is increased from that in the upperwatershed, the quality in these rivers still appears to be fairly good, and suitablefor both water supply purposes and ecological habitats.

Water quality monitoring data collected between 1999 and 2003 at Tamar stationon the Babolak River, and Pashakola and Guran Talar stations on the Babol Riverindicate relatively low levels of total dissolved solids and major ions in these

0-159/16/2004

rivers - all indicators that pollution levels are relatively low. These data weresupported by a one-off sampling exercise during the EIA of the in 1997, which

showed reasonably high dissolved oxygen levels and relatively low nutrient andBOD levels. However, while still within reasonable limits, conductivity andacidity levels are slightly raised above upper watershed conditions indicating the

presence of pollution in this part of the project area. It would therefore beappropriate to collect water quality data more systematically in this area in orderto more precisely define the impacts of existing agricultural and industrialactivities, and importantly to include an analysis of both nutrients and heavymetals in this analysis. This is also advisable due to the apparent discrepancies indata collected in the lower lands over this period - as discussed in the nextsection.

Surface Water Quality in the Lower lands

In addition to the Babol, there are three other major rivers within the lowlandsection of the project area: the Talar, Siah and Sadjad rivers. The latter is a westerntributary of the Babol that joins just downstream of the middle lands. The lowerlands are also characterized by a series of ab-bandans (82 in all), or surface waterstorage ponds, that are use for irrigation supply and in some cases for fishcultivation. Many of these ponds now have significant ecological value.

Agricultural activity in the lower lands is intense, in addition to which there areseveral major cities and about 300 recorded industrial and workshop units, ofwhich Babolsar Fibre Factony is the largest, discharging wastewater directly into theBabol River. Surface water quality would therefore be expected to be poor.However, there are some deficiencies in the water quality data that have beencollected in the area to support this analysis. Official data collected between 1999and 2003 remain inconclusive as regards to demonstrating whether quality ispoor, with relatively low levels of total dissolved solids and major ions in theserivers (with the exception of chlorine levels, which are several times higher thanWHO guidelines for drinking water supply). However, several parametersrelated to agricultural and industrial pollution were not measured. Conductivityreadings are higher than the upper catchment, which together with the higherlevels of total dissolved solids and major ions is an indicator of increasedpollution in the lower lands. Saline intrusion in the lower reaches of the riverswill also play a part in this.

While the official data collected between 1999 and 2003 were inconclusive indemonstrating pollution levels in the lowland surface waters, a more extensiverange of data were collected in 1997 for the Alborz Dam EIA. These datademonstrated significant levels of both heavy metal contamination and coliformsin all of the major rivers, suggesting that the water bodies suffer extensivepollution from a range of municipal, industrial and agricultural sources. Themonitoring results (shown in the main ESA report) indicated extensivecontamination from three heavy metals in particular - mercury, lead and zinc -

0-169/16/2004

with pollution levels in several cases far exceeding WHO guidelines for drinkingwater supply, particularly those of zinc and mercury. Moreover, the data were

taken at various points in each river, and in each case showed an overall declinein quality from upstream to downstream.

In addition to river water quality, some sporadic water quality sampling in fourof the main ab-bandans took place in 1996. As would be expected, the waterquality characteristics were similar to those of the rivers, including with respect toheavy metal (mercury and zinc) contamination in some cases. This is a particularconcern where ab-bandans are being used for aquaculture. Eutrophication was

also evident in some cases, with plant species such as Sparganium neglectumpresent in large quantities - an indicator of high nutrient levels in the water fromagricultural runoff. In addition, while most data were collected during the wintermonths only, in the one ab-bandan (Ramnat) where data were collected duringsummer as well, the water quality appeared to drop significantly as a result of thereduced volume and depth of water.

Although the limited data collected would appear to support the conclusion thatsurface water quality is poor in the lower lands, more extensive and systematicdata collection needs to be carried out in the major ab-bandans in order to assessthe true extent of the problem, particularly in those ab-bandans that are being

used for fish cultivation and/or those with high ecological value. This datacollection would need to be carried out on a regular basis, and in differentseasons.

Groundwater Quality

The availability of groundwater quality data in the project area is fairly limited.Sporadic data collected by the MGRWC from a series of springs and wells in 2002appear to indicate that groundwater quality in the upper watershed and middleland is reasonably good. Total dissolved solids and major ion content are allwithin defined thresholds for both agricultural and drinking water supply. Thequality of groundwater in the lower lands is poorer, with higher levels of allcontaminants measured. Most of the wells in this area are shallow, and are usedfor both agricultural and drinking purposes. As a result, they suffer frompollution due to a range of factors, including: (i) leaching of pesticides andfertilizers; (ii) leaching from solid waste dumps; and (iii) waste water dischargeinto absorption wells, which is the most common method of dischargingindustrial wastewater.

A major limitation of the available data is the general lack of information aboutmicrobiological contamination. Occasional samples collected from wells in theBabol area indicate high coliform levels, which are likely to be prevalent acrossthe area. Moreover, since drinking water which is drawn from groundwater inthe area is frequently disinfected with chlorine, more data are required

I0-17

9/16/2004

I concerning residual chlorine levels in order to comply with the recommendedlevels in the WHO guidelines for drinking water.

0.4.3 Biological Environment

I Upper Watershed

Although forests have been seriously degraded around the dam site and nearmajor roads, the upper watershed still contains a relatively well-preserved andcontinuous forest cover. In several places, forests are disturbed and degraded bygrazing livestock, where herders often cut trees and open the canopy to allowlight to reach the forest floor and promote the growth of grass. In some places,especially, on steeper slopes overgrazing and livestock movements foster erosion.Large tracts of land have been fenced to keep livestock out of the forests.

Most of the remaining forest in the upper watershed consists of natural mixeddeciduous and coniferous stands. Depending on altitude, slope degree and soiltype, forest types consisting of beech, maple, alder, and hornbeam dominate. Theflora in the area is fairly diverse. Several species that occur in the forest area areconsidered vulnerable, such as Boxwood (Buxus hyrcana), Yew (Taxus baccata) andtwo species of Junipers (Juniperus spec). One of the more common species is3 Cycla ien caucasicumn, a favourite food of wild boars.

Larger mammals occurring in the upper watershed include: brown bear (Ursusarctos), leopard (Panthera pardus), wild boar (Sus scrofa), deer (Cervus elaphus,Capreolus capreolus), wolf (Canis lupus), jackal (Canis aureus), and lynx (Lynx lynx),which is very rare. Birdlife includes the rare Lesser Spotted Eagle (Aquila pomaria)and the endangered white-tailed sea eagle. In the forests, pheasants (Phasianuscolchicus) are still common, which due to hunting is considered unusual in Iran.3 This pheasant species is indigenous and has not been mixed with introducedChinese species.

Around the Dam, there is Lafilr Protected Hunting Area where hunting of certainspecies is prohibited. In addition, to the west and the east of Laflir Protected Area,some additional forests areas of high biodiversity occur that have been proposedby the DOE to be included into the Lafur Protected Area. Also, a small part of theAbshar-e-Shirgah Protected Area lies within the project area. However,3 notwithstanding their importance in a regional context, there are not consideredto be any critical natural habitats of international significance affected by theproject, or significant conversion of natural habitats, such that World Bank OPI 4.04 is not triggered. The cleared reservoir area for the dam comprisesagricultural land and degraded forest. Moreover, conservation of the upperforests and habitats is addressed through the conservation and sustainable forestI management activities of the upper watershed and forestry managementcomponent.

0-189/16/2004

Middle Land

The transition zone between the upper watershed and the lower lands ischaracterized by extensive agriculture in the river valleys. In many places,secondary planted coniferous forests can be found on the hillsides. In someinaccessible steep locations, remnants of pristine forests can still be found.Agriculture concentrates on paddy rice cultivation but grazing livestock is alsocommon.

With regards fauna in the middlelands, jackals (Canis aureus) are common, as areporcupines and wild boars (Sus scrofa). In addition, birdlife is rich.

Lower lands

The lower lands consist of mainly irrigated agricultural plains and settlements.Traditional ab-bandans are used as water reservoirs for irrigation purposes aswell as fish farming. Orchards, mainly citrus species, are intermixed with theextensive paddy fields. The natural vegetation in this area has been largelyremoved. Only along roadsides and under the orchard trees some natural weedscan be found. In a few places, native bushes and small trees occur.There are more than 600 ab-bandans of which nine larger ab-bandans are veryimportant as bird resting sites and for plant preservation. These are: Larim, Zarin-kola, Anarmarz, Roshandan, Esmaeel-kola, Azizak, Langoor, Aghoozben, and EasternRanmnat. Especially during the winter, these ab-bandans attract immense numbersof birds, including several species which are endangered in Iran: black tern(Chlidonias leucopterus), white-winged black tern (Chlidonias hybria) and marshharrier (Circus aunrguginosus).

Among the endangered species are four individuals of the extremely rare Siberiancranes which live in western Siberia. The four birds usually winter nearFeridonkaner just west of the project area. Other wintering birds include a largenumber of ducks and shore birds including mute swans (Cygnus olor).

Wildlife includes porcupine (Hystrix indica) and jackal. Wolves are regularlyencountered, whereas leopards and bears are rare visitors from the upper lands.

Five species of sturgeon species are native and occur in the lower reaches of theBabol River. These fish are considered key indicators of ecological quality. Thefive species are: Russian Sturgeon (Acipenser gueldenstaedtii), FringebarbelSturgeon (Acipenser nudiventris), Persian Sturgeon (Acipenser persicus), StarrySturgeon (Acipenser stellatus), and Beluga (Huso Huso). They are consideredvulnerable to critically endangered species.

The five Sturgeon were once relatively common in the lower reaches of the riversin the project area, but are now extremely rare and found only sporadically in theBabol River. The species are of immense economic importance as they are the

0-199/16/2004

source of the highly valued true caviar. The decline of the populations is

attributed to: (i) declining water quality; (ii) low river flows during the March-

April migration and spawning season which happens to coincide with a season of

high water demand for agriculture; and (iii) various man made structures (e.g.,weirs and cascades) which block passage.

As part of a government fisheries program, several hundred thousand sturgeonfingerlings are released each year at the mouth of Babol River. However, it is

only with the restoration of the ecological integrity of the Babol and adjacent

rivers (e.g., stabilization of the river flow and maintenance of a minimum

ecological flow during the dry season; modification or removal of barriers; andimprovement in water quality) that the sturgeon population will recover to its

former numbers.

A number of other native fish species of economic importance ware also likely tobenefit from the restoration of the river. These include the Roach (Rutilus rutilus

and Rutilusfrisil), Caspian Barbe (Barbus brachycephtalus and Barbus capito),

European Chub (Leuciscus leuciscus), Caspian Vimba (Vimba vimba), and theCommon Carp (Cyprinus carpio).

Social, Economic and Cultural Conditions (l)

The description of the social, economic and cultural baseline conditions is based

on a social assessment carried out during preparation of the ESA. Relevant dataare annexed to the main ESA report.

Upper Watershed

The Pasha Kola Watershed (upper watershed) located on the northern slopes of the

Alborz Mountain Range includes five sub-catchments covering a total area of

about 350 km2. It is estimated that about 933 herdsmen families reside in theupper watershed. These herdsmen are trans-humant pastoral communities,moving between winter encampments inside the forest areas and high altitude

summer pastures. Each family owns several heads of bovine cattle as well assheep and depends on livestock production for their livelihoods. They may have

two or more encampments - Talar or Kumeh - within the forest areas at lower

elevations and additional camps at high altitude grasslands.

In addition to these herdsmen families, there are some 267 families currentlyliving in scattered settlements inside the forest. They cultivate small patches of

forestland, graze their domestic cattle in the forest and also engage in activitiessuch as apiculture, silk cocoon production and collection of minor non-timberforest products. Overall, the total population in the upper watershed is about

(1) The divisions between upper, mniddle and lower lands for the social and economic analysis, although sirmilar, are not identical

to the division of these areas for the physical and chernical analyses.

0-209/16/2004

3,400 people, which corresponds to a population density of about 15persons/km2 .

Houses of the forest dwellers are generally built with timber while only few

houses are brick constructed. The majority of the households do not have access

* to electricity and other basic facilities such as running water, waste collectionsystem, telephone etc. Household incomes in the upper watershed are low and

economic transactions are mainly based on exchange of goods and products.

The upper watershed is accessible mainly through forest roads built to manage

the forests. Education is generally limited to primary school education. Theaverage age of the population is increasing as younger generations prefer tomigrate out of the forest areas to seek better education and employment

opportunities in nearby urban centers. There are no tribal or minority groups inthis area.

Middle Lands

This section covers the communities situated around the construction site of theAlborz Dam as well as the middle section between the upper and the lower

watersheds.

In total, the area covers 18 rural settlements and 15 administrative villages ofwhich Naftchal, Bourkhani, Pashakola, Dehkalan, Deotak, Gashnian, Esboukola,

Lafourak and Ghasthoran, Kafak, Hajikola, Amirkola, Rodbarsara and Largechal arebeing resettled under the resettlement program of the GOI as they are located in

the dam and reservoir area. The total number of households in the villages in the

vicinity of the Alborz Dam is 401. These households will also be resettled. There

are a number of villages, such as the 120 households in Dehkalan, that will remainin the area. Before the resettlement, the total number of households in the middlelands were 870. The total population was 3,283, of which 1,402 are remaining.

People in the middle section of the watershed mainly depend on agriculture. The

most important agricultural crop is rice. To a smaller extent, people also depend

on forest products. There is a more developed money (cash) economy as people

can sell their products in the markets of nearby towns.

About 60 percent of the people of the middle section are farmers and 34 percentare livestock breeders. In addition, bee keeping and silk worm production ispracticed by 4 percent of the population as one of the main economic activities inthis area. About 13 percent of the population are wage earners. The average landholding is between 1 to 4 Khaviz (1 Khaviz = 1,000 m2) and only 7 percent of thehouseholds have land holdings of 1 to 1.5 ha. The average size of land holdingsin Mazandaran is 2.7 ha, and on average the land holding in the lower lands isabout 0.7 ha.

0-219/16/2004

People living in this area are poorer than the average rural population in

Mazandaran, including those living in the lower watershed. According to the

national statistics, the absolute poverty line for rural Mazandaran was between

397,000 and 507,000 Rials (between 47-59 US$) in 2001. Using this baseline,

according to the data collected for the social assessment in 2003, about 10 percent

of the population in this area (including the dam site) live below this absolute

poverty line and 16.5 percent around this poverty line. In the lower watershed,the percentage figures are 6.3 percent and 3 percent, respectively.

Slightly more than half (50.5 percent) of those living in this area are 59 years or

more, indicating the aging population, where most young people are migratingout to near by towns, even Tehran, for work or education.

Access roads to the villages are good and often paved. Education facilitiesinclude a high school. There is no university but the distance to higher education

in Babol City is only around 30 km. In the upper watershed and the middle

section, about 39 percent of the population is without any education while 62

percent have primary or secondary education.

Almost 50 percent of villagers have access to piped water, power, and telephone.

However, there are no waste collection mechanisms and sewage systems. ThereI J is also a health clinic and about 62 percent of the population has easy access to

health centers. If the 933 herdsmen families of the upper watershed are added tothis group, the percentage of those with difficult access to health care centers

increases. There are no tribal or religious minorities in the region.

Lower lands

The lower watershed is both rural and urban. It is densely populated and3 includes a number of cities such as Babol, Babolsar, which are also university

centers. Major towns and villages include Amirkola, Azizak, Joybar andBehnamir. The majority of people are Shiite Moslems, but there are also many

Christians, Jews and Zoroastrians.

This section provides information for both urban and rural areas in the lower

watershed and also includes area outside the boundaries of the AILWMP.Whenever data is available, they are disaggregated for urban and rural areas3 within the AILWMP. In the project area, which is limited to rural areas between

Babol, Talar and Siah rivers, there are 344 villages with a total number of 46,520

households with the estimated population of 213,990 people (average householdi size 4.5 people). The wider population in this area is closer to 1 million, and

includes inhabitants of the six major cities located in the lower lands, many ofwhom will benefit indirectly from the project in terms of measures such as

improved water quality and pest management.

0-229/16/2004

The most important employment type and source of income in the lower

watershed is agriculture, although a variety of different jobs typical for urban

areas exist. Besides agriculture, the services and unskilled labor sectors are

important sources of employment. Although living standards in the lower landsare comparatively high by Iranian standards, there are also very poor areas in this

Isection such as Babolkenar village at Babol, or the villages around Joybar.

I In the rural areas, the majority of the agricultural income comes from rice

cultivation which constitutes 94.3 percent of the crops grown. Wheat, Konola oil

seeds, citrus orchards, hotels and tourism are secondary sources of income.I Overall, unemployment in the lower lands is at 11 percent of the total work force(39 percent of the total population). In the rural parts of the lower watershed,which is also the project area, about 57 percent are engaged in farming, 1.5I X percent in livestock breeding, 6 percent are civil servants and about 13 percent arewage earners. About 49 percent of the rural residents supplement their income

| by either full time or part time work, including wage labor, driving cabs, etc.

indicating the insufficiency of the agriculture as the only source of income for

g these people.

In the rural areas, the average land holding is about 0.7 ha - about 35 percent of

the population have between 0.5 to 1 ha, and 24 percent between 1 to 1.5 ha.

Among the rural population, 9.3 percent live in absolute poverty according to theabsolute poverty line of 2001 for Mazandaran mentioned earlier. However, themajority of the population (57.5 percent) belongs to the middle-income group

with monthly earnings ranging from US$120 to US$290.

5 In the project area, almost 57 percent have some kind of primary or secondary

education, 4 percent have college degrees whereas 36 percent have no educationat all. Contrastingly, in the urban areas of the lower watershed the literacy rate isI over 70 percent. The age profile in rural areas in lower land is closer to thenational average, with almost 30 percent being under 36 years of age and 30

percent between between 37 to 47. This indicates a stronger tendency for youngpeople to remain in their villages, which can probably attributed to the proximity

of the towns as well as better socio-economic situation of the villages as compared3 to the upper watershed and middle land.

Road infrastructure is well developed in the lower watershed and includes the

Haraz, Firozkoh and Caspian seashore highways. The Trans-Iranian Railwaypasses through Ghaemshahr, in the eastern section of the lower project area.

Houses are constructed from bricks and concrete. As the houses are somewhatscattered, only 70 percent have piped water, but all have electricity and mosthouses have telephone. Recently, sewage treatment operations commenced in3 Babol and another similar system in Babolsar is under construction. Domesticgarbage is regularly collected and land fills are operated properly in the lower

lands. However, there are some difficulties to find proper locations because ofI the high water levels.

0-239/16/2004

0.5 ASSESSMENT OF ENVIRONMENTAL AND SOCIAL IMPACTS

The AILWMP has a strong environmental and social focus. All project

components aim at achieving positive environmental impacts in the project area.

Measures to mitigate the potentially negative impacts of the Alborz Dam and the

construction of the irrigation and drainage network have been designed and are

presented in the ESMP. The AILWMP also focuses on institutional capacity

strengthening, inter-agency co-ordination, and public participation. The overall1 design of the AILWMP will ensure the sustainability of positive environmentalimpacts of the project and that negative environmental impacts will be minimal.

I The most important environmental and social impacts are as follows:

1. Reliable irrigation water supply for increased agricultural production;2. Impacts on the flow regime of the Babol River;3. Impacts on soil, groundwater and surface water quality from intensified3 irrigated agricultural production and agro-chemical use;4. Forest management and improvements in forest cover and quality in the

upper watershed; and

5. Socio-economic impacts, including resettlement and land acquisition.

Each of these issues is discussed in the following sections, along with anassessment of the potential cumulative impacts of the project, and an outlineassessment of project alternatives.

1 0.5.1 Reliable Irrigation Water Supplyfor Agriculture

The project will optimize utilization of surface water resources and benefit fromthe Alborz Dam in that water supply for irrigation purposes will be more reliable

for farmers in the future. With the dam, water will be available for irrigation atcritical times of the year, whereas water shortages have occurred in the past. A

reservoir simulation for a period of 38 years revealed that there will be adequate

water for irrigation most of the time (see Table 1.4).'

Table 0.4 Simulation of Water Supply Quantities from the Alborz Dam

3 Description Quantity and Units CommentInflow to Alborz Reservoir 215 MCM Mean, including Babolak diversion weir

Reservoir gross capacity 150 MCMReservoir dead storage 28 MCMLive storage capacity 122 MCMIInflows from middle basin 48 MCM i.e. inflow downstream of dam

Agricultural demand 195 MCM Highest requirement (rice), will depend on

cropping patterns

3 ' Based on Mott MacDonald 2004: Alborz Integrated Land and Water Management Project, Water Resources Background Report

0-249/16/2004

Description Quantity and Units Comment

Water required for environment 32 MCM Equivalent to 1m 3 /s compensation flow for3 spawninrgSpill 46 MCMAverage annual deficiency of water -5.8 percent Implying a deficit in 17 of 38 years and a

deficit of more than 10 percent of demand inI over 20 percent of the yearsAverage anlual surplus of water +10%without compensation flow for fishI migration

0.5.2 Environmental Flow Regime of Babol River

The operation of the Alborz Dam and the supply of water for irrigation will

significantly alter the flow regime of the Babol River in terms of (i) water

quantity, i.e. reduction of overall water quantity in the river, (ii) water flow levelsand (iii) seasonal variations in the water flow. These alterations of the

| environmental flow regime will most likely trigger changes in the overall riverenvironment and ecology, including habitat conditions of river flora and fauna.

| In response, the MGRWC and DOE propose to maintain an environmentalminimum base flow of lm 3 /s immediately downstream of the Ganj -Afroozdiversion weir throughout the year in order to conserve the ecological integrity of

the river. However, at this point in time, it remains unclear if this base flow (evensupplemented by the inflows from tributaries downstream of the weir) would be3 adequate to maintain or improve the environmental flow regime and secure theecological integrity of the river. It is also to be determined whether the Sturgeonserves as an appropriate indicator species for the overall river environment and

J whether the proposed base flow would accommodate the habitat requirements ofthe sturgeon (requiring at least 1 m water depth and high turbidity).

I The ESA/ESMP therefore calls for careful monitoring and a flexible approach toevaluating and thereafter regulating the minimum environmental base flow in the

Babol River. In addition, there are a number of impassable physical barriers inthe river such as old weirs and other structures. Consideration should be given toremoving or modifying them to allow for fish passages and migration upstream,I taking into account the potential costs and benefits of such measures. Finally, theissues of encroachment and unsustainable mining of sediments adjacent to theriver bed areas need to be carefully evaluated and addressed during the

implementation of the ESMP.

| If the project succeeds in managing the development of new irrigation areas aswell as regulating overall water allocations for the different users on a sustainablebasis, the project will have significant positive environmental and economicI | impacts on the whole watershed area. However, if the planned irrigationprogram is implemented on the basis of unreasonably optimistic water quantityassumptions and hence, unsustainable water extractions occur from the Babol

1 River, major negative impacts have to be anticipated. These impacts might

0-259/16/2004

include the destruction of freshwater ecosystems, shortages in irrigation water

supply, reduced potential for fish farming, and reduced habitats and resting sites

for migrating birds.

5 International Waterways

In the context of the World Bank Safeguard Policy Projects in InternationalI Watenrays (OP 7.50) and the above Convention, potential impacts of the AILWMPon the Caspian Sea, will be negligible. The current average discharge rate of

Babol River into the Caspian Sea is 15.7 m3/ second, while the average dischargeI rate of the Volga River, the biggest river draining into the Caspian Sea, is 8076m 3 /second. The contribution of the Babol River amounts to only 0.04 percent of

the total discharge of the Volga River. Iranian rivers draining into the Caspian

* Sea only contribute a total of 6 percent of the annual water discharge into theCaspian Sea. The World Bank, consistent with the provisions of OP 7.50, has sent

| project notification letters to other riparian countries on the Caspian Sea at the

request of the GOI.

5 0.5.3 Intensified Agriculture and Water Quality Impacts

a Water Qualiht in Rivers

The baseline studies of current water quality in the project area revealed that the

water quality in the lower areas of the Alborz River Basin is poor, with pollution

J originating from the agricultural sector as well as industries and untreatedsewage. Appropriate mitigation measures are needed to address the increasingrole of agricultural activities, especially as intensified agriculture in the newly

developed irrigation areas in the lower lands (19,000 ha) are likely to result inincreased non-point pollution from agro-chemicals. As a direct impact of the

| project, higher levels of nutrients and pesticide residuals are highly likely in theriver systems. In addition, the reduced river flow will lead to higher relativeconcentrations of pollutants.

In the upper watershed, water quality can be expected to improve due to forest| rehabilitation and implementation of watershed protection measures.

Water Quality in Ab-bandans

* More than 300 ab-bandans will be an integral part of the overall water budget tobe managed under the AILWMP. Ab-bandans are mainly supplied by upstream3 water resources diverted form the various rivers in the project area. Overall,pressures to expand ab-bandan based cultivation will continue to increase in thefuture and water demand is likely to sharply increase.

For example, several communicates and cooperatives practice intensive fishfarming activities in ab-bandans within the project area, which already show high

nutrient pollution levels and eutrophication. Although the AILWMP itself does

0-26U 9/16/2004

not include the support of fish farming, impacts on water quality need to beclosely monitored under the project, should the trend towards increasing thenumbers of ab-bandans for fish farming continues.

In addition, among the approximate 300 ab-bandans, nine ab-bandans have beenI identified as ecologically sensitive and important as bird nesting sites and forplant preservation. The names for these ab-bandans are Ramnat, Aghooz-ben,Langur, Azizak, Roosh-andan, Esmaeeil-Kola, Anarmarz, Zarin and Larim-Kola.Especially during the winter, these ab-bandans attract immense numbers of birds,including several species, which are endangered in Iran: black tern (Chlidoniasleucopterus), white-winged black tern (Chlidonias hybria) and marsh harrier (Circusauruguginiosus). It will be particularly important that fish farming be restricted atthese sites and that water quality be maintained and closely monitored.

X Groundwater Extraction and Quality

In the lower lands, groundwater extraction is the main method of securing watersupply for irrigation, often at unsustainable levels. Even after the completion andfull operation of the Alborz Dam and the irrigation and drainage network, theI extraction of groundwater for irrigation is likely to continue into the future aswater demand for intensified agriculture increases and negatively affect thegroundwater table. However, as the Alborz Dam will continuously supply water

J to the aquifer in the lower lands, it is anticipated that the water supply throughthe reservoir will help to stabilize the groundwater.

J In this context, the issue of saltwater intrusion into the groundwater aquifer,which is reported for the northern part of the project area, needs further analysis.3 So far, it remains unclear to what extent seawater intrusion from the Caspian Seahas contaminated the groundwater. Careful monitoring will also be required tomeasure the effects of continuous irrigation water supply through the AlborzDam and Reservoir on the seawater intrusion in the lower lands.

In termrs of groundwater quality, intensified agricultural production in theirrigation areas is likely to lead to higher pollution levels through agro-chemicals(nutrients and heavy metal pollutants such as Zn, Hg and Pb). Considering the3 comparatively shallow groundwater level in the lower lands, careful waterquality and abstraction volume monitoring is required in order to ensure theu integrity of agricultural supplies.

Increased Pesticide Use

| The project envisages the development of new irrigation areas of about 19,000 ha.Reportedly, pollution levels of rivers and streams in Mazandaran Province andthe southern coastal part of the Caspian Sea are already very high. In recentyears, agricultural activities have led to increased pollution levels due to theheavy use of agro-chemnicals, in particular pesticides. At the same time, there are

0-273 9/16/2004

no a targeted efforts to reduce the reliance on chemical pest control and promoteIntegrated Pest Management (IPM).

Without the introduction and use of biological pest control techniques, pollutionfrom uncontrolled pesticide use is likely to increase. Although there is an on-going program in Mazandaran Province, IPM is only implemented in few areas inthe province. So far, IPM is only applied over an area of about 10,000 ha withinthe project area.

In the past, the GOI has encouraged the use of agro-chemicals through its policyof subsidizing agricultural chemicals and fertilizers. The GOI is now revising thispolicy toward supporting environmentally sustainable types of agriculture, whichhas lead to some reduction in subsidies for pesticides. The AILWMP will supportthe implementation of IPM in the project area. IPM is an important sub-component of the ESMP.

0.5.4 Forest Management Related Impacts

The overall impact of the project on the bio-ecological environment partlydepends on the quality and sustainability of the anticipated forest management

and protection activities designed under the project.

The Upper Watershed and Forest Management Component of the AILWMP isexpected to have a significant positive impact on the environment in the upperwatershed as it will halt and reverse forest destruction though investing inreplanting and better protection of fauna and flora. This in turn will strengthenthe environmental functions of the forest and rangeland ecosystems and lead to areduction in soil and water erosion.

Reforestation activities will be implemented using native species that are adaptedto the climatic and ecological conditions prevailing in the Alborz Mountains. Themaster planning exercise will propose and detail species composition of forestrehabilitation measures. It will also address issues of biodiversity protection andestablishment and realignment of protected areas. Proposals for protected areaswill include concepts for community co-management and sustainable financing.

The construction of forest roads, some of which are planned in connection withthe project for the management of forests, are likely to have some negativeimpacts in the form of small scale erosion and, more importantly, throughopening up access to previously inaccessible forest areas. The master planningexercise in the upper watershed will help to prioritize (and minimize) roadconstruction proposals and focus road construction exclusively on removingbottlenecks to sustainable forest management.

Fencing has been carried out extensively in the upper watershed primarily in anattempt to exclude livestock from the forest areas and allow for natural forest

0-289/16/2004

regeneration. Reportedly, some recovery of the vegetation is taking place inside

fenced areas. However, fencing of large forest areas only is a costly measure toI forest regeneration; and it is difficult to ensure the effectiveness of fences if localcommunities are not in full support of such measures or compensated for theeconomic losses on their livestock. Fences also pose significant barriers for largerwild mammals and restrict their natural seasonal movements.

The options for fencing will be evaluated during preparation of the upperwatershed management plan (component 1). The project will promoteparticipatory management and seek acceptance for forest rehabilitation measuresI and discuss the appropriate measures among the local population (including theneed to reduce livestock grazing in the forests) by including local villagers in allplanning and implementation measures to the largest extent possible.

0.5.5 Socio-Economic Impacts

l Key positive socio-economic impacts are the (i) expected increase in incomes forpeople in the lower watershed due to reliable and sufficient water supply for3 irrigation and increased agricultural production and (ii) improved livelihoods forpeople in the upper watershed due to participatory forest planning andmanagement, promotion of sustainable forest management, and additionalcommunity development interventions.

Negative social and economic impacts are expected in connection with theresettlement interventions under the Alborz Dam project. Within the range of thedam project, six villages out of 15 will be inundated and inhabitants of nine3 additional villages will have to be resettled from the area. The total populationthat will be moved as a result of the construction of the dam will be 4,000.

The resettlement of households from the Alborz Dam area has been carried out inaccordance with the legal and policy provisions that are applicable to suchprojects in Iran. However, based on a recent assessment of the resettlement

J strategy, the plan has been modified to align it with the World Bank's safeguardpolicies. As a result, a supplementary Resettlement Plan (RP) for the Alborz Dam3 area has been developed. In addition, two Resettlement Policy Frameworks (RPF)for the upper watershed and the lower lands have been prepared, using dataobtained from the social assessment carried out as part of the current ESA.

Details of the RP and two RPFs are provided in the main ESA report, and are3 summarized in Section 1.7 below.

0.5.6 Assessment of Cumulative Project Impacts

Cumulative impacts are defined as impacts that are caused by more than oneproject activity, or related project activities. Further, they may result from one or

0-299/16/2004

more project sub-components or from the combination of project activities andinduced developments.

Since the AILWMP project components are largely aimed at achieving positiveenvironmental impacts in the project area, and are in themselves designed tomitigate the potentially negative impacts of the Alborz Dam, there is nosignificant potential for cumulative negative impacts to occur as a result of the3 project. However, the potential secondary and cumulative impacts that mayoccur due to increased agricultural activity and intensification in the lower landsas a result of the scheme need to be considered by the ESMP. These wereI discussed in Section 1.5.3.

0.5.7 Analysis of Alternatives

Alternative 1: Without Project Alternative

| The Alborz Dam, one diversion weir and major conveyance and distributioncanals are already under construction by the GOI. Even without the AILWMP,these construction projects will be completed and put into operation by the GOI.The AILWMP is hence designed to complement the ongoing construction projectsof the GOI, contribute to a more integrated and sustainable management of water3 and other natural resources in the entire watershed, and minimize the potentialnegative environmental impacts of the ongoing construction projects.

| Were the project not to go ahead, the following outcomes are envisaged:

* Without the Irrigation and Drainage Network Component, the infrastructure forthe irrigation and drainage network would still be implemented through theGOI, but the formation of WUA would be slower, less significant and with3 much less institutional support and capacity building. Hence, the capacity of

WUA for managing water resources sustainably would be considerably lower.Grassroots activities for improved water use and control would not beI supported leading to less optimal water use. Also, without the AILWMP,capacity building in agricultural extension services would be considerably

I less.

* Without the Integrated Water Resource Management Component, there would be3 no basin-wide coordination of water resources management in the projectarea. The lack of coordination could potentially have serious consequencesfor the environment in general and for the efficient allocation of waterU resources among farmers and other users in particular. Without theinstitutional support to the operation of the Alborz Dam and Reservoirthrough the establishment of a hydrometric network and hydrometricI modeling and to the BWC, the GOI investment in the Alborz Dam wouldresult in lower economic and environmental returns. In addition, withoutestablishment of the BWMF, there would be fewer opportunities for

0-309/16/2004

establishing community-based income generating activities for stakeholdersin the project area.

* Without the Environmental Management Component, data for water qualitymonitoring (rivers, ab-bandans, groundwater), and water quantity would not

* necessarily be available to stakeholders and used by all institutions involvedin water resources management. Duplication of data collection efforts and3 overlapping activities would continue while data sharing would still beinsufficient. The implementation of the currently existing IPM program inMazandaran Province would only cover the rehabilitated irrigation areas.1 The outreach of the program would expand at a slow pace and not beexpanded to adequately encompass the newly developed irrigation areas.

| Alternative 2: With Partial Project Alternative

Were the AILWMP to only include activities in the middle and lower areas, i.e.were it to go ahead without the Upper Watershed and Forest ManagementComponent, forest and rangeland rehabilitation would not keep up with3 uncontrolled ongoing deforestation and take place at a considerably slower paceas under the AILWMP. In addition, the overall degradation of the upperwatershed would further increase due to continued population pressure andI uncontrolled encroachment on the forests, especially in areas which currently arestill intact. Forest and watershed degradation would foster erosion, loss of topsoiland accelerated siltation of water protection structures and the Alborz Dam itself.

* Further forest and rangeland degradation would eventually also result in loss ofbiodiversity. Finally, without the AILWMP, the participation of forest dwellers in3 planning of natural resource management in the upper watershed would remainat insufficient levels as no new approaches to community forest management andinstitutional arrangements would be introduced.

Alternative 3: With Project Alternative

3 In many ways, the difficulties experienced with past investments in Iran havearisen because the institutional and financial designs of projects did notadequately follow the three principles of integrated water resources management,namely:

3 * The ecological principle, which argues that land and water in a river basinneeds to be managed holistically to protect the environment.

* The institutional principle, which argues that WRM is best carried out when3 managed at the lowest appropriate level with the participation of allstakeholders; and

* The instrument principle, which argues that water is a scarce resource, andI needs to be managed as an economic good through the design of appropriateincentives that improve allocation and enhance quality.

0-319/16/2004

For instance, pricing of irrigation water does not generate incentives for resourceconservation. Water allocations between the Operation and Maintenance

Companies (OMCs) and urban water utilities do not meet any 'market' test,enforcement of pollution standards has been virtually non existent, and thegovernmental capacity to protect upper watersheds from unsustainable

exploitation by herders and loggers have been weak.

3 In addition to the positive benefits arising from the various project componentsdescribed above, implementation of the full AILWMP as currently designed willallow a holistic watershed management approach to be introduced to Iran that is1 fully consistent with all of the above principles, incorporating a basin-wideperspective to watershed planning and management and the institutionalizationof the multi-stakeholder BWC. Iranian water concerns suggests that there isI tremendous scope for improving productivity of water use in agriculture bypricing and institutional reforms. Unless these measures are taken immediately,unsustainable water use could seriously constrain Iran's competitiveness in the

global economy, thereby constraining future economic growth.

0.6 PUBLIC CONSULTATIONS ON THE AILWVMP

| A series of public consultation activities were carried out during the preparationof the ESA, including an initial questionnaire-based survey covering 83interviewees, a social assessment covering 1,091 households, and two stakeholderI workshops: one in Karaj with 87 participants, and one in Sari, the provincialcapital of Mazandaran, with 250 participants (among them about 100 farmers, a

| number of foresters, some local NGOs and key local and governmentalauthorities). Some of the key findings from these consultation activities aresummarized in Box 1.1.

Box 0.1 Key Consultation Findings

3 Issue Key Consultation FindingsGeneral project * Around half of the survey respondents considered that they were

awareness/support reasonably well informed about the project, the remainder indicating that

they only had very little information. Only around 6% consideredthemselves well informed.

* Of those that were aware of the AILWMP and its activities, word ofmouth was the most common channel of awareness (40%), with local

* news and media the next most common channels.* The majority of survey respondents (81 %) supported the objectives of the

project. Support varied between areas: all interviewees in the lowerI watershed expressed support, whereas only 57% of those in the upperwatershed expressed their support, probably resulting from theenvisaged resettlement interventions in the dam/reservoir areaI * NGOs are especially concerned with environmental issues, such as waterquality, fish breeding, ab-bandans etc. Farmers, on the other hand, weremainly concerned with understanding how the project will help them to3 increase crop production.

0-329/16/2004

Issue Key Consultation FindingsResettlement * Around 55% of survey respondents agreed with the GOI's proposals foractivities resettlement, with agreement much higher among interviewees in the

upper watershed (67%) as compared to interviewees in the middle area(56%) and lower lands (45%).

Irrigation * Most farmers surveyed were either partially satisfied or dissatisfied withI management their current irrigation methods, and as a result, increasing water supplythrough the new irrigation methods is motivating to them. About 60% arewilling to pay up to 10% or more for water fees in the event waterI quantities did increase, and the majority supported the scheme.

* The impact of a new irrigation system on the economic well being of thecommunity is seen as either very positive or partially positive (98.0%).I Residents are positive on all related aspects of the new irrigationmethods.

* However, within the irrigation area itself, the majority of farmerssurveyed (55%) were unaware of the new irrigation systems/patterns thatwill emerge after the project. The implications are that many residentsdon't understand the proposed WUA's, and/or don't understand,appreciate or even trust the participatory process, which is embedded inI the WUA's concept

* The end beneficiaries at the workshops raised a number of questions andconcerns about the project, including the impact on their land; how theI project would ensure that the design of the secondary and tertiary canalsare done with the participation of the farmers; and a need for moreexplanation and information about the WUAs;

Upper watershed * Regarding forest management and protection, the vast majority of surveymanagement respondents (82%) were unaware of current relevant laws and regulations

* However, about 83% of respondents stated that they were willing andready to cooperate under the AILWMP and carry out forest andrangeland management and protection activities as well as betterlivestock management. Moreover, half of the respondents supported theremoval of livestock from the forest area (the remainder were against thisI measure).

* In the upper watershed in the forest area, the view of the villagers ispositive towards the existing forest cooperatives and willing to participateI in the future forest cooperatives. The forest cooperative is the primary orsecondary source of income for some of the villages in the middle areawhich are not going to be affected by the dam.

The above findings have been used to further refine project design, particularly ofthose components relating to participatory forestry management andI resettlement. Moreover, in response to the evident lack of project awarenessamongst many beneficiaries, it is planned that further workshops and awarenesscampaigns will be conducted throughout the life of the project to raise awarenessof NGOs, farmers and local communities. Consultations with the public in theproject area and timely disclosure of information to stakeholders will remain a

| priority for the implementation phase of the AILWMP.

0-339/16/2004

0.7 ENWRONMENTAL AND SOCIAL MANAGEMENT PLAN (ESMP)

3 0.7.1 Overview

As previously stated, the AILWMP Project triggers seven safeguard policies. ForI clarity and to assure that the issues under each safeguard policy are beingaddressed and mitigated, the structure of the Environmental and SocialManagement Plan (ESMP) has been organized by safeguard policy, as illustratedin the table below.

3 Table 0.5 AILWMP with Associated World Bank Safeguards

ESMP Component Safeguard Policy AddressedForest and Wildlife Monitoring OP 4.36 - Forestry

* Water Quality and Quantity Monitoring OP 4.01 - Environmental AssessmentRiver Ecology Monitoring and MitigationPest Management Plan OP 4.09 - Integrated Pest ManagementDam Safety Plan OP 4.37 Safety of DamsResettlement Instrument and Resettlement Policy OP 4.12 - Involuntary ResettlementFrameworks3 Action plan for Preserving Physical Cultural OP 4.11 - Cultural PropertyProperty

Notes: Compliance with OP 7.50 (International Waterways) requires notification of neighboring* states; no action plan or budget is required, hence there is no specific ESMP component for this

safeguard policy.

The AILWMP will promote targeted monitoring of project impacts, includingmonitoring of impacts of the Alborz Dam. It will include comprehensive capacity3 building activities for government staff, such as training, seminars, study toursand workshops, and procurement of equipment for upgrading of laboratories andenvironmental monitoring facilities. Enhanced capacities of provincial

| government agencies and natural resources users will enable stakeholders to takejoint and coordinated responsibilities for monitoring and subsequent mitigationmeasures.

Public participation and disclosure of information will be an important aspect ofeach component to ensure timely and adequate dissemination of results andinitiatives and public awareness and consultation in important environmentalmatters.

0.7.2 Summanr of ESMP and Proposed Budget

3 Appendix 1 presents a tabular summary of the ESMP for the AILWMP. Details ofall of the mitigation and monitoring measures described in the table, includingmonitoring locations and parameters etc., and associated costs, are presented in

* the main ESA report. The Resettlement Action Plan for the reservoir area andResettlement Policy Frameworks for the upper watershed and downstream

0-349/16/2004

irrigation and drainage area are presented as separate documents, with a

summary presented in Appendix 2 to this document.

The ESMP will constitute the fourth component of the AILWMP. For theimplementation of the above described six sub-components of the ESMP, a total

* budget of US$7,725,900 is allocated. A breakdown of this budget is presented inTable 1.6, and further details of the various budget lines are provide in the mainI ESA report.

Table 1.6 ESMP Budget Estimate

I Component Responsible Agency Cost (US$)Forest Nionitoriiig and hlarngerment - Coniplrance EnforcementSupport Staff (3 technicians and 1 biologist) MDOE/FRWO 117,600I Digitalization of forest maps FRWO 50,000Equipment MDOE/FRWO 11,800Vehicles MDOE 20,000I Institutional co-ordination MDOE/FRWO 16,800Training, study tours, workshops, and seminars MDOE/FRWO 157,000

Subtotal 373,200

4 W\'ater Qualitx and Quaitiht NMonitoring - Compliance Enforcement

Field monitoring and support equipment (incl. O&M) MGRWC/MDOE 823,250Computer hardware and accessories to interface with current MGRWC/MDOE 38,250

1 unitLaboratory equipment MGRWC/MDOE 1,089,200Training MGRWC/MDOE 267,500Technical assistance MGRWC/MDOE 340,000

Teclhnical assistance for Ab-bandan management MDOE 50,000Subtotal 2,608,200

Basin \ ater Fund* The Basin Water Fund is an ESMS, detailed in the MINA CDD 250,000

Framework. Mitigation, monitoring and capacity building isrecommended by the framework as needed.I RivRer Ecolog- Mlonitoruig and Mitbgatbon (Babolrood minuinum base flowlPublic awareness campaigns and enforcement of regulations MGRWC/MDOE 150,000

Rehabilitation of Babolrood for fish species (including MGRWC/MDOE 150,000I surgeon)Studies on river modification options MDOE/MGRWC 300,000Baseline monitoring and reporting on river ecology status MDOE 150,000

Technical assistance for design of monitoring program MDOE 100,000Training and capacity building MGRWC/MDOE 100,000

Subtotal 950,0003 Pest Nianagernent PlanStrengthening of IPM staff at rural service centre MPPO 178,000Monitor specific pollutant parameters MPPO 24,000

Technical assistance (national/international) MPPO 40,000i Implementation of pilot studies MPPO 50,000

Institutional capacity building at all levels of MPPO MPPO 310,000Set up of monitoring network and database MPPO 40,000

Competitive grants for innovative concepts in PM MPPO 165,000Laboratory equipment and supplies MPPO 250,000Contingencies and misc. MPPO 64,500Subtotal 1,121,500

0-359/16/2004

Component Responsible Agency Cost (US$)

Dam Sa fety Plan3 Panel of Experts (fees, per diem, travel) MGRWC 75,000Preparation of dam safety plans MGRWC 400,000Re-analysis of seismic risks and seismic risk surveys (national MGRWC 100,000TA)

* Periodic safety inspections MGRWC 208,000Training of Foremen and Supervisors in health and safety MGRWC 40,000issuesNational workshops and seminars on Dam Safety issues MGRWC 80,000

Subtotal 903,000

Resettleinent InstrumentsManagement and Monitoring cost estimate 500,000

Ph! sical Cultuial F'ropoert_Field surveys 50,000

Coniponent lx lanagement and Coordina bonSupport to meetings, NGOs, seminars, public hearings, etc. MGRWC 1,360,000(provisional sum)

To lo 8.115,900

| 0.7.3 Institutional Arrangements

The institutional responsibilities for implementation of the sub-components of theESMP are outlined in the schedules of the plan. The PIU and the BWC will haveoverall responsibility for the effective institutional co-ordination between allagencies involved in the project and the implementation of the ESMP, in co-

ordination with the Central Liaison Office.

Implementation of activities under the ESMP are delegated to those institutionswhich are most suitable. MOJA, through the Mazandaran Plant Protection Officewill implement the pest management and biological pest control program. Inaddition, MOJA and MGRWC will be responsible for procurement for ESMPactivities that will be implemented by DOE solely or by DOE in collaborationwith other agencies such as FRWO and MGRWC.

In some cases the mandates of several institutions overlap, for example in thefield of water quality monitoring, which will be implemented by the MGRWCand DOE, and similarly in the case of monitoring of forest rehabilitation andbiodiversity conservation in the upper watershed, which will be jointly monitoredby the FRWO and the DOE. In these cases, the ESMP proposes to clearly definethe responsibilities of each institution to avoid duplication of activities and wasteof resources, or to improve co-ordination between agencies where monitoringactivities are complementary as, for example, in the case of safeguard compliancemonitoring in the upper watershed.

MOJA and MGRWC, which have overall responsibility for the implementation ofthe AILWMP, will be responsible for the procurement of equipment and otherfinancial arrangements required for the implementation of the ESMP in

0-369/16/2004

coordination with CLO. The functions of the CLO will include: (i) liaising withthe Bank on behalf of the GOI; (ii) serving as the secretariat of the SC; (iii) carryingU out project management and coordination among the concerned agencies; (iv)carrying out and coordinating procurement actions; (v) performing financialmanagement and reporting functions; (vi) carrying out technical studies and

training programs; and (vii) preparing annual progress reports and work plans.

3 A national Steering Committee (SC) has been established to oversee projectimplementation and coordination between various institutions. The SC is chairedby the Vice Minister of MOEF and includes the Vice Ministers of MOJA andI MOE, the General Director for Water Resources from the Management andPlanning Organization (MPO), and General Director of the Central Bank of Iran.

* 0.7.4 Implementation Schedule

The project will be implemented over a period of seven years. Projectimplementation consists of three phases: Phase 1 - planning, training and start-upactivities; Phase 2 - full implementation of activities; and Phase 3 - emphasis on3 operational capacity building. Some construction works will be started duringPhase I in order to continue the work that the GOI has embarked on.

| The first steps in implementation of the ESMP will be the preparation of a termsof reference for a single technical assistance consultant service contract thatsupports all the various project agencies under the supervision of CLO andMGRWC. The firm selected for this mandate will be responsible to coordinatetraining for mitigation measures and monitoring, and to assist in regular

| reporting on implementation of the ESMP, as well as to assure a full integratedpublic awareness program.

| The institutions responsible for implementation under each component and sub-component and the implementation schedule of sub-components is shown in themain ESA report, along with a detailed schedule. Activities of the ESA will beI carefully reviewed by the relevant stakeholders in the project area and revised asneeded prior to project implementation.

Most of the training and capacity building activities will be implemented duringthe first phase of the project. Provisions have been made for additional trainingI courses to upgrade staff skills during the implementation period as well as trainincoming new project staff. The design of information systems and theinstallation of computer hard and software will also be implemented during theI in the first project phase. There is a need for more detailed information on theriver ecology in the project area on the protection of ab-bandans. These activities3 will also be carried out in the first phase.

0-37349/16/2004

1 0.7.5 Reporting Program

Monitoring and evaluation will be essential to ensure successful implementationof the AILWMP. The completion of most of the activities under the ESMP of theAILWMP will not be measured by physical benchmarks, but rather be based ondetailed reporting as follows:

1. Clear findings and recommendations that are easy to understand andbased on relevant data;

2. Transparency in reporting through public disclosure procedures;1 3. Timely and accurate dissemination of findings and recommendations toauthorities (e.g. Basin Water Committee) for improved and informeddecision-making. This will also include intra-departmental reporting,inter-departmental reporting and sharing of results.

The monitoring program for the ESMP will be managed in a flexible way, andmonitoring parameters will be adapted according to changing projectrequirements during implementation and based on lessons learned.

Furthermore, it is recommended that the ESMP monitoring reports only includedsummaries of data collected which are sufficient to draw conclusions and developU recommendations. Full data should be included as appendices to the mainreports. Reports on water quality and quantity, including the study results on thepreservation of ab-bandans and the status of fish species, will first be

* disseminated to the BWC via MOJA and DOE. This will allow the BWC to bettermanage water extraction permissions for irrigation and control the minimumriver flow. Reports on forest cover and quality as well as the status of wildlifewill be made available in form of an open access database on internet. Editingrights will be with the DOE and the FRWO. All monitoring reports and databasesI will be disclosed to the public through the internet.

0.7.6 Transparency and Public Participation

The success of the AILWMP will depend on the level of stakeholder participation.The public consultations held during the preparation of this report revealed thatthere is scope for improving the level of awareness among the public which hasshown a high interest in being involved. Therefore, it will be important to ensure3 and fully benefit from the participation of a wide range of stakeholders and thepublic by considering the following:

3 i. Complementarity of stakeholder values, needs and requirements andproject objectives;

ii. Increasing awareness among stakeholders and develop a spirit of* cooperation between stakeholders;

iii. Provision of adequate human resources for project implementation;3 iv. Facilitation of timely and adequate project implementation;

0-389/16/2004

v. Ensuring replication of project outcomes after successful implementation;vi. Cooperation of stakeholder in maintenance operations.

| vii. Clarification and quantification of project outcomes and impacts;viii. Thorough consideration of the needs and demands of the society at the

point of project inception and in the future;ix. Promoting acceptance of the project among different stakeholders and

ownership.3 x. Providing a maximum of information to all stakeholders and civil societyin a timely manner.

I0

IlllII_I

_l

0-393 ~~~~~~~~~~~~~9/16/2004

- m m m m - m m m m m m m - m m - m m

AppendixA Environmnental and Social Managemnent Plan (ESMP)forAILWMP

|Potential Issues/Impacts ESMP Response/Activity Agency | iivrqec otEstimatel

|MtigationgEnliaticenient Measure|Lck of coordinated forestry data sets Digitize and integrale forest maps into GIS system MGRWC/FRWO Phase I (Inception) - 50,000|

.. ..... .. ...... ............ ........... .. ... ..-.. -.. .. ............ I............. .. _ -. ............ ................- -.. ................ .. .. . ................... .. ... ......... ._ _ _.. ............ ...... . ...... .. -.......... . ....... .... _ . . .... ..

Requirement for planned forest Create detailed forest management plan for each sub- MGRWC/FRWO Phase I (Inception) No incremental costsmanagement activities catchment area in upper watershed (incorporated

__ . . __ __ _ . _.elsewhere)

Lack of local consultation/participation in Consultation with communities as part of community- MGRWC/FRWO Phase I (Inception) & As aboveplanning process based forestry management program Phase 11

(Implementation)

Forest degradation Forest replanting of indigenous species adapted to climate MGRWC/FRWO Phase II As aboveand ecological conditions of site. (Implementation)

[YDt r*.e2 11in t, olof'Iui.x a) Sgn 1ii .iiit s re.1o [ of 1hulntillg cuittIOlled ar:a fle . ni NdaniC l_\kC. HMO P\ 'liaase I iIncoptioii) \s aboE-e-- ---- ----... ... .. ...... ..... ...... ..- _ _ _ . ............ ....... ... .. ........... ... ... - ..... ... . ........ ........... ... ... .. ..... ._ .. ......... ... _ -...... ...... ._-....... . ...... ._ ....... .. -.......... ..... .... --- -- -........ ....... ............_.

As above Strengthen management of legally designated protected MGRWC/FRWO Phase II As aboveareas __ ___ __ (Implementation)

As above Consolidate and strengthen current protected area system MGRWC/FRWO Phase II As above(lmplementation)

. ........ _.. . ... .. ....... ..... --- -- -- . ....... ... .. . ... ........... ...... .. . .. .. .......................... .............. .. .................... _ .- ....... ...... _. ._... .. .............. .. .. .. .... ...............

Illegal logging and encroachment Prioritize road construction proposals exclusively designed MGRWC/FRWO Phase I (Construction) As above

associated with road construction to remove bottlenecks to sustainable forest management.Avoidance of erosion-prone and ecologically sensitive areas

Monitoring

Limited monitoring capacity of Provision of Support Staff (3 technicians and 1 biologist): MGRWC/FRWO Phase I (inception) 117,600

MGRWC/FRWO P Mitigation activities (described above)

> Monitoring forest cover

> Monitoring of wildlife biodiversity;

> Monitoring designated protected areas;

> Compliance inonitoring of road design andconstruction;

> Monitoring of WB envirorunental safeguardscompliance.......... ....... A... ............... . ...... ... ........ ... ........ .... ........ .. ... ........ O.......... ..............................................-.....................1..... ... ....... .... ...... ......... .......

A-0-1

m m - -mm- - - - - - - - -

Potential Issues/Impacts ESMP Response/Activity Agency Timing/Frequency Cost Estimate

Lack of equipment Provision of Equipment and Vehicles MGRWC/FRWO Phase I (Inception) 31,800

Capacity Building

Lack of trained staff to carry out technical Workshops, seminars and training: MGRWC/FRWO Phase I (Inception) & 157,000

activities > Training for the digitalization of forest cover and mgmt Phase II

plan database; (Implementation)

> Provide for professional staff to strengthen M&E

activities of the DOE and FRWO;

> GPS training;

> Training for correct wildlife and forest covermonitoring (technical and biological)

' Study tour of the Eastern Anatolia Watershed MgmtProgram in Eastern Turkey for implementing officials;

> Provision of equipment and vehicles;

Lk 'i .wr .otrdlin ltc-L een F ; RU .i.d S-Ir:ringtliening InsLtiiihon.il word ination bLI'h e*-n iLh N I\R I\ C, UR\\ \ Pihlsr I til1-tIO11I1) & I u,S800MGRWC FWRO and DOE: Phase II

> Promote joint supervision of new M&E system; (Inmplementation)

> Integration of data collection and evaluation systems,such as GIS;

> Monthly coordination meetings between MGRWC andFRWO

Subtotal 373,200

11kyam-eff * I].

Mitigation/Enhancement Measure

Lack of inter-agency coordination > Create WQ monitoring program for MDOE, MJAD, MGRWC/MJAD Phase I (Inception) 300,000

MGRWC & MDOFA; /MDOW/MDO

> Installation of computer center and development of FA

groundwater model;

> Development of implementation plan for water quality

monitoring program at the following sites: Babolrood(17 stations), Talar Rood (6 stations), Siah Rood (2stations).

> Develop WQ parameters and indicators (and add tomonitoring activities via WQ Monitoring Protocol)

A-0-2

l- m - m m m m - m - m - -- m m -

Potential Issues/Impacts ESMP Response/Activity Agency Timing/Frequency Cost Estimate

Pollution of ab-bandans used for fish Ab-bandan water quality improvement - protection of nine, MGRWC/MJAD Duration of Project 40,000

cultivation and/or valued ecological ecologically sensitive ab-bandans (Ranmnat, Aghaz-bem, /MDOE

habitats Langur, Azizak, Rooshanidan, Esniaeeil-Kola, Anarmarz, Zarin,

Larini-Kola):

> Control of permissions for fish cultivation;

> Development of guidelines for improved ab-bandan

management, with specific focus on bird preservation;

Monitoring

Limited monitoring capacity of MDOE, > Establish Management Information Systems Unit (MIS) MGRWC/MJAD Phase I (Inception) & 1,950,700

MGRWC, and MJAD under MGRWC; /MDOE Phase 11 (Operation)

l Field monitoring and support equipment (incl. O&M);

l Computer hardware and accessories to interface with

current unit;

l Integration of existing sampling and analytical

programs of DOE, MGRWC and DOFA into a single

system;

l Upgrade of DOE and MGRWC laboratories;

I'-IIILIt II , II -L -b: - L' I.> r :1 I.sIII\b-l' I'dan nII, ILoring \H IdnQLniklm' MaterI :irid rishll stI,Rupluigi rMlGPr\M1 Nil !\[ .\iiial\ i prcio-abli S01O1)

cultivation and/or valued ecological ' Visual inspection monitoring with GPS and /MDOE June to August)

habitats topographical maps;

' Fauna and flora monitoring;

> Simple chemical analysis (N, P, K, dissolved 02 etc);

> Production of status maps and pattern and trend

analyses using GIS; l

i I.i k ot II. .t- i ie r Ir l eo r i.)% Lir in rJI t rp H, H rologit-.ll nioni ritoig k .ter qLlitl) ) as pa 1 N IGR \\ ( Nl l -\[) N1 ,l111 0 L\ C st included in

area (particularly Babol River) AILWMP Component 3 (Integrated Water Resources /MDOE AILWMP

Management) Component 3

Capacity Building l

Lack of inter-agency cooperation and > GPS and WQ Training; MGRWC/MJAD Phase I (Inception) & 267,500

results sharing: )> Installation of computer center; /MDOE Phase IIl _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ j______________ (Im plem entation) _ _ _ _ _ __(m l en a i )

Subtotal 2,608,200

A-0-3

l -- m m m m - -m m m m -

Potential Issues/Impacts ESMP Response/Activity Agency Timing/Frequency Cost Estimate

Technical and financial support for The Basin Water Fund is designed to provide technical and MGRWC/MJAD Phase I (Inception) and 250,000

community-based initiatives financial support for community-based initiatives for /MDOE Phase 11improving land and water resources management. with the (Implementation)

total budget allocation of $5 million targeted for demanddriven mini projects identified by the community at large(e.g., villages, NGOs). The environmental screening

procedure will be prepared in the operation manual withreference to the MNA CDD Manual "Environmental andSocial Management Framework for World Bank Projectswith Multiple Small-Scale Subprojects: A Toolkit".

Mitigation, monitoring and capacity building isrecommended by the framework as needed.

Subtotal 250,000

Mitigation

Enforce existing regulations and change > Seminars and pubic awareness campaigns on major MGRWC/MDO Phase I (Inception) and 150,000

public attitudes on use of river resources issues of environmental/ ecological river management E/MJAD Phase II

(e.g. pumping for irrigation, gravel (Implementation)

extraction in river beds and banks, over-fishing, discharging domestic andindustrial waste water, etc.)

Conserve aquatic ecology conditions in Study on river morphology and water flow and quality MGRWC/ Phase I (Inception) - 300,000

river (including for salmon and surgeon) on other rivers and sturgeon; MDOFA YR 1

> Feasibility study and cost estimates for Babol River; 6 man months

> Detailed scientific research on the requirements for

sustaining environmental flows in the Babol River 3 man months(morphology, ecology, water flow and quality) -

feasibility assessment, recommendations & cost

estimate of rehabilitation;

> Regulation of minimum environmental base flow;

> Recommendations for appropriate minimum base flow Annual Reports

as a result of research and monitoring

> Research on estuary preparation and leisure/fishing

A-0-4

m m m - m - - m m ----s

Potential Issues/Impacts ESMP Response/Activity Agency Timing/Frequency Cost Estimate

port traffic control and management

> Action plan to strengthen the enforcement and

implementation of existing regulations (e.g. garbage

reduction, recycling; illegal fish introduction)

l Strengthen enforcement and implementation of current

regulations

' Design and implement programs on waste water

reduction and management

',-,-g;h\ nipac b -'i Stiin rci--.l 4llrI dit-rie -tud,l. !11 rltFl IIII r h'd a v-i iIItIO C n Iiidd IIg i oI mic MGRWC/ Phase l (Inception) 150,000

evaluation of caviar production. MDOFA

,A; a oLk .'Drt.uio t a r ier bat.ui inai:il, min:it iiiasltr plan tc' i 1� i cd fNd1 PL F C, I 'hha se I I11, OPt.1:III) (C osLs i- oip Ira teLi

> Proposal for removal of existing rubber dams; MDOFA elsewhere

> Introduction of fish ladders;

> Action program to improve aquaculturel _~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ .._ ........ ..... _. .............. ...... .............. .............. . ......... ... ......... .. .. _. ......__ .... ......... . ..... .......... ....I..... . .....

As above Modification of river barriers to sturgeon, following MGRWC/ Phase II Depends on

recommendations of above study. Possible dredging MDOFA (Implementation) feasibility study (not

following recommendations of above study. included in project

costs)

Monitoring

Lack of baseline ecological data on Babol Baseline monitoring and reporting on river ecology status MGRWC/ Quarterly, seasonally 150,000

River (fish populations, especially indicator species (Sturgeon and MDOFA or annually

Kyte) algae, macrophytes, river profile, benthos and basic (depending onWQ) species), starting in

Capacity_Buildiig Phase I (InceptionCapacity Buildinlg __________________________ ________

Lack of technical programme design Technical assistance for design of monitoring program and MGRWC Phase I (Inception) 100,000

capacity river modificationsL , k oI z;ujlbly tc.,Ii-Jwi,aI ii alineSt 1.1 I rallniog anLi, *apaLit) UildLng .- is , I NlIl\\ Ihase I tIoLCo%li) - I Iti,Otttt

> Design, modification and monitoring of river (data YR 1-2

extraction, analysis, report preparation - IMS,

Databases, GIS based report).

> Refresher course for lab staff on limnological analysis,

> Seminars and public awareness campaigns on major

issues of environmental/ecological river management

A-0-5

m m - --- - -- - - -m

Ptential Issues/Impacts |ESMP Response/Activity |Agency |Timing,/Frequency |Cst Estimate

Sbtotal 950 000

i i i i ' i I i -' i I i ' I I I~ ri ' 1i

lCapacity Building

Lack of knowledge of IPM Introduce worldwide experience in IPM through engaging MPPO Years 1 and 2 40,000international biological control experts in Manzadaran

'\C,lsltt % -' rengthi,1ing oi I 'PN I sk I I') e\p ii tdile,gF i i i r Field N I PPt--) 'I.arc I i ndl S liltl

School training mode, and by engaging public and private

sector specialists

> Training of trainers for extension and NGO staff (20trained)

l Participatory IPM training for new farmers in project

areas at 4 different sites

As above Strengthen NGOs promoting sustainable pest management MPPO Years 1 and 2 165,000(TA and equipment)

V. \sPi Io ide CeINtir: SUlppOrt and tr.lning t. OpgrII- dppliedL N I `I' ui s I and 2 41-ilt-!00

biological research in context of IPM

> Study visits of Iranian technicians (Public sector) toChina for cultivation of biocontrol

> Study visits of two Iranian technicians (NGO) to

Lck of. capcity..f.rm .. .. tr.i.... . .. .. f . commercial biocontrol producers in EuropeLack of capacity for monitoring of Implementation of pilot studies - in the project area - on MPPO Years 1 and 2 50,000sustainable pest control and pesticide the effectiveness of non-chemical control methods in the

application context of IPM, and recommendations on futureimprovement and main streaming

As above Laboratory equipment and supplies for two detection labs MPPO Phase I (Inception) 250,000

(early warning and demo-equipment)...... ~~~~~~~... ......._ ....... . .. . _._ ......._ ......... .... . __ ........ ..-.. ........ .......... ....... .. ... . .... . ......_.. _. .................. ........... _ ....

As above Field -based extension staff to provide on-site training and MPPO Duration of project 50,000

technical advice to farmers

As above Training and supervision of traders of pesticides and pest MPPO Duration of Project 50,000

control tools for product safety

Monitoring

A-0-6

m- - - - -

Potential Issues/Impacts ESMP Response/Activity Agency Timing/Frequency Cost Estimate

Requirement to increase monitoring of Monitor specific pollutant parameters, including regular MPPO Years I to 4 24,000

specific pollution parameters, including determination of selected pesticide residues in water (100

regular determination of selected pesticide samples annually) and agricultural products (200 samples

residues in water and agriculture products annually)

as well as monitoring the health of farm

workers

.\cs aboi, e Ilonit.r iiig tli*s lie.iIth t ii in %% orkt:i N[ i 0[ 1 1P,10J :t 1cI:)I :> Training medical staff in the identification and

management of pesticide poisoning

' Set up of monitoring network and database (hardware

and software).... .. ..... .............. ............. _ .... __ _ .. _ .............. .. ..... ........ ....... -.-- --- ---- .. .................._._. . . .... _ ......... ... ............. .. .... .... ......... _ ...................

__________Contingencies and miscellaneous MPPO -184,500

Subtotal 1,121,500

;I. i.- i 5 li l iii ii ii.ii ii 1rii

Mitigation

Safety of Dam Panel of Experts to inspect and evaluate the safety status of MGRWC Duration of Project 75,000

the dam (on a periodic basis).... ...... ---- .. ............ ..... ......... ... ...... . .............. ........ ...... . . ................. ........ .... . . ..... ..... .. --. ... ....... . .. . .... ... .. _ ....... .... ..._._. . ...... .._

Inadequate O&M and emergency Preparation of dam safety plans (construction/quality MGRWC Phase I (Inception) 400,000

preparations assurance, instrumentation, O&M, emergency prep)Re-analysis of seismic risks and seismic risk surveys MGRWC Phase I (Inception) 100,000

(national TA):

> Dam break analysis to be fed into the EPP;

> Reservoir slope stability analysis considering the

saturated rock strength;

' Fault rupture hazard study;

' Seismic hazard analysis of the embankment body using

dynamic analysis;

> Flood hydrology for reevaluating the size of theprobable maximum flood;

['v,liri ncKiln loi om .,Fnd Itorago d:iLa ['De .;op Ii) d romlletnr not%% orIk t, ..iphtI' i in tll .. and NIU\i\\ t-, NI0J.-\ P'hi.u I tInS:tptilon) ki-mponailt 3)storage data

Monitoring

A-0-7

- - m - m - - - m - m

Potential Issues/Impacts ESMP Response/Activity Agency Timing/Frequency Cost Estimate

Inadequate safety inspections and Periodic safety inspections MGRWC Duration of Project 208,000 for all

standards monitoring andinspection

rFeqi,u .neilt to update d.u i plin1 V:'.l e,gular1h update damsafety pians to reflect changes MGRWC Duration of Project

kce.uir.'mi.iit ba I nL.l Ho%% I'mto1imr tiplilt plrt-s,LLes .tiind rat-aX rN Ies N iU\ t ( C Lrti rdl!l PrjctI

rates

Pe.NII nmin to ri -limr doimi rc c Nlcitor tllilih ot rese r sid SIk.lpe tir L llnlcttie 71 11N'. C Duration i -it P.rxlcfI.. ... ........I - I .. .. .... 1 -..... ..........I........... ......... ............ . .............................. .... ................ .. ..

Inadequate emergency preparedness Emergency Preparedness Plan (EPP) will be disseminated MGRWC Phase I (Inception)

arrangements among the downstream inhabitants

Capacity Building

Requirement for training in emergency Training of safety issues: MGRWC Phase I (Inception) 40,000

response training > Emergency Response training will be provided for

operation staff and representatives from the cities and. ~~~~~~~~~~~villages.

Requirement to increase public awareness National workshops and seminars on Dam Safety issues MGRWC Phase I (Inception) j 80,000

Subtotal 1903 000

Mitigation

A-0-8

m - -- -- - - - m

Potential Issues/lmpacts ESMP Response/Activity Agency Timing/Frequency Cost Estimate

Involuntary resettlement Cash or land compensation for families involuntarily GOI (MGRWC/ In progress See total budget

resettled: FRWO) below

l Additional compensation for those whose secondary

source of income are affected (equivalent of 11 years ofincome from said business);

l Unviable, redundant parcels of land/structures after

acquisition of property can be acquired and

compensated if the owner desires;

D Displaced landless wage earners and vulnerable groupswill be provided with special financial assistance;

l Affected sharecroppers compensated at the rate of three

times their assessed, annual income;

> Landless wage earners and economically vulnerablegroups will be provided with special assistance;

3 Consideration of replacement land/relocation sites of

project affected people if there is demand.

A. iduing l.r[h,r re.;,ttlenieilt, hild LN t 1e IP oi ucLtr o, l [ti Ill L llle ut %t\ \sLiig la nd l t ct L d tu rther Uxl N iGIR\l, I 'l-l'a I kln, .ption) .alt-v e l

changes resettlement/land use changes FRWO)l Lisruptin L .L Iuit rairil [Lir LL ie I\ rL:PŽ Rpl. -pIIIeIIlt o1 I.ll) []liI-astructire lacrliiiies disrupted b) GuI kNIL-Ri\ I Ii' Phasi: I kCi1'.trUctioil) \s ab,tLi e

construction of canal and drainage network FRWO)l.............. .. ... .... ... .. ..... .... ..... ... .... ........... ..... .. I -....... .. .. ..... . ........ ......... ..... ...... .. ........... ........ ..... .......... .......... ..... .. .......... ...... - - --- -..... _._.......

Graduate resettlement of forest dwellers Graduate resettlement of forest dwellers from fragile GOI (FRWO) Phase 11 As above

from fragile mountain areas to lower areas mountain areas to lower areas as part of forest management (Implementation)

as part of forest management plan: plan:

l Purchase of land and buildings;

> Encourage exchange of grazing license for ownership ofland outside the forest;

> Economic incentives to switch to modern cattlebreeding

.5\' cid. rr~~ itpi% p ) l ) .-i et . I.d rid rje. t *ll iake all st,p- [o injnnizva,:qu ~ ihn I.t 1 l I e o

productive, privately owned land and avoid acquisition of FRWO)residential areas in middle and lower lands

Monitoring

Transparency of procedures Internal, official institutional monitoring as well as MGRWC/FRWO Phase I (Duration of As aboveindependent, external agency monitoring of resettlement | Resettlement)

.............-. ............. ....... ........... .... .............. ..... . .............. ...... ....... ........ . .... ....... ........... ............ .......- .._...................... .

A-0-9

Mm inminm - - - - -m-m

Potential Issues/Impacts ESMP Response/Activity Agency Timing/Frequency Cost Estimate

Transparency of procedures Creation of resettlement cell within MGRWC to oversee all MGRWC/FRWO Phase I (Duration of As aboveaspects of land acquisition and resettlement Resettlement)

C,,n111nitiNi'i1 gric' agrlce (1re.Lio ol riwat ioeil tgi I, ilCc :clI %. iti repi-e-t IioLii lGP. \(- FPFWCX Phia- I i-iratic'ii ort As b' -cl

of affected people to deal with complaints/grievances Resettlement)

associated with land acquisition and resettlement

Capacity Building

Community participation activities Training and use of community workers for grievance cell GOI (all related Phase I (Inception) As aboveand resettlement cell agencies)

Loss of land and income due to Agricultural training for displaced landowners GOT (MJAD/ Phase I /Piration of

resettlement FRWO) Resettlement)l

Subtotal 1 500,000L

Mitigation

Field Verification of Physical Cultural Field Verification of Physical Cultural Property issues CHO In progress 10,000

Property issues under on-going under on-going construction:

construction: > Implementation of "chance find procedures" by

contractors in ongoing construction;

' Identification of additional fieldwork if necessary;

DicSruptioi 11 iriiriLitm WIainii ultuaI \MI1.-oIogi:.iI t surt I)) s the -\Ibc,rz [lDamn. Ricli:rx on! I UCi Phlae t I QCoiitLruLi) 4t0,i110

heritage and historical monuments in the and Irrigation and Drainage Network:

Alborz Dam and Reservoir Area. > Background review of all relevant documents on

physical cultural heritage;

' Review of project maps to determine exact location of

cultural heritage with respect to project construction;

> Identification and documentation of locations ofmonuments, cemeteries, and recognized physical

cultural sites on a map (with coordinates);

' Preliminary field study of all project areas;

> Recommended mitigation and protection measures;

> Recommended monitoring and "chance findprocedures";

> Shrines and cemeteries will be avoided with maximumconsideration.

A-0-10

m -m -m - - -m -

Potential Issues/Impacts ESMP Response/Activity Agency Timing/Frequency Cost Estimate

Subtotal 50,000

Technical Assistance to all agencies responsible for the GOI (all related 1,360,000ESMP for above listed mitigation, monitoring and capacity agencies)building activities. This component will include qualityassurance, evaluation and coordination. It will also includean outreach campaign to build awareness throughmeetings, NGOs, seminars, public hearings, etc.

l ______________________________________ (provisional sum )

TOTAL ESMP COSTS 8,115,900

A-O-11

Appendix B - Resettlement Plan and Frameworks,

| 1. Overview and Categorization

Land acquisition and resettlement issues under the AILWMP are divided into three categories| of safeguards compliance implementation.

(i) Supplementary Resettlement Action Plan for the Alborz ReservoirU (ii) Resettlement Policy Framework for the Upper Watershed(iii) Resettlement Policy Framework for the Lower Watershed

During project preparation, agreements were reached with the concerned agencies, namelywith MGRWC for the Resettlement Plan (RP) for the Alborz Dam and Reservoir area, with theFRWO for the Resettlement Policy Framework (RPF) for the Upper Watershed, and with

* MGRWC and MOJA for the RPF for the lower watershed. An overview of these frameworksand plan is presented below in tab. 3.

Resettlemnent Interventions and World Bank Safeguard Requirements (tab. 3)

3IlIIlIl

3 1 A complete set of these documents were disclosed separately of the ESMP.

3 B-0-1

lArea GOI Intervention AILWMP

Project InterventionI Alborz Dam and The GOI is in the process of resettling A supplementary Resettlement Plan (RP) hasReservoir area 3283 people from the Alborz Reservoir been prepared y the GOI. The RP provides

Area. guidance on resettlement policies of the GOI3 Six villages will be completely and the World Bank.in-undated by the reservoir, but in total Resettlement is exclusively implemented by thethere are 15 administrative villages that GOI according to plans for the Alborz Damare affected by the dam. project. The AILWP does not entail any

resettlement of people from the dam andreservoir area.

Upper Watershed GOI has an on-going national A Resettlement Policy Framework (RPF) hasprogramme on gradual resettlement of been prepared, providing guidance onforest dwellers from fragile mountain resettlement policies of the GOI and the Worldareas to lower areas. Bank.

The AILWMP does not include any resettlementof people from the upper watershed. Instead,sustainable natural resource management andprotection of existing forests is proposed in theUpper Watershed and Forestry ManagementComponent. Involuntary resettlement may takeplace under the current GOI nationalI programme of Resettlement of the Livestockform the forest.

Middle and lower Land clearing includes 400 ha of A Resettlement Policy Framework (RPF) hasI watersheds forestry lands in the middle area and been prepared. Resettlement will only be1000 ha of agricultural land in the required in relation to the construction oflower watershed for the construction of conveyor and major canals. In most cases, onlyirrigation and drainage canals and land acquisition of parts of people's land is

a access roads. required, and a plan for compensation isprepared.

2. Supplementary Resettlement Action Plan for the Alborz Reservoir

I The construction of the Alborz Dam and Storage Reservoir involves the acquisition of about802 ha of land of 15 administrative villages. Acquisition includes: (a) 545.09 ha of paddy5 land; (b) 93 ha of orchards; (c) 84.79 ha of homesteads, including areas under structures andyards/ gardens; (d) 14.7 ha of pastures and forests; and (e) 67.51 ha of miscellaneous kindsof land including unutilized land, land used for public buildings, shops and businesses.I The affected land and properties belong to 870 households with total population of 3,283landowners. An estimated 25 percent of the affected are absentee landowners currentlyresiding outside the project-affected area.

About 50 percent of the total affected population has already been compensated (reaminginclude 355 households and 1,401 people and 464.5 ha of agricultural land). Resettlement wasI carried out in accordance with the applicable legal and policy provisions in Iran. To complywith the requirements of the World Bank Policy on Involuntary Resettlement (OP 4.12), the GOIdecided to take extra measures in order to streamline the acquisition process, strengthen theresettlement institutions and improve community participation.

B-0-2

3. Additional Resettlement Provisions

| The GOI decided to make the following additional provisions through appropriateadministrative measures:

5 (1) Additional provision for people who have already been compensated

Options for allotment of replacement agricultural lands:

(i) Allotment of replacement agricultural land of the government at specified locationsequivalent to the area of their affected land holdings in the project area.Concessional loans would be offered to the affected people to help purchase theselands.

(ii) Purchase of privately owned agricultural land in Dahestans (location) identified bythe project authorities, with productivity potential equivalent to the land given up

| under the resettlement process.

Criteria for eligibility:

Since people who have already been resettled and received compensation compensatedaccording to the relevant laws, a number of eligibility criteria met be met to qualify for the landI allotment option and other assistance measures. These criteria have been developed asprevious compensation payments were very generous.

To be eligible for retroactive land allotment option the following criteria apply:

I (i) The person has to be the original recipient of the compensation;(ii) The person should not hold a permanent job;(iii) The person should not have a viable business enterprise;I (iv) The person should not receive income from real estate;(v) The person should not have any agricultural land from which he/she receives profit;(vi) The person will be working on the replacement land; andI (vii) At the time of compensation, the person was not an absentee land owner.

Options for vulnerable households:

For those people who did not lose land due to the Alborz Dam, but classify as "economicallyI vulnerable", the following additional measures may be offered:

(i) The Alborz Dam Project will provide financial and credit assistance throughcharitable institutions to promote self-employment opportunities. The financialassistance will consist of a one-time cash grant of 5 million Rial (about USD 600) andan additional concessional loan of up to 20 million Rial (about USD 2400) at a3 concessional rate of interest.

(ii) For vulnerable people who are unable to access any of the above options due to3 physical, age and labour constraints, a one time cash payment up to an amount of

3 B-0-3

USD 1000 will be made to local charitable institutions, with a request to provideregular monthly assistance in the form of food grains and other essential items.

(2) Provisions to people yet to be assisted and covered by the RP

| People who lose more than 25 percent of their land holdings would have the following options,namely to:

U (i) Receive cash compensation at the replacement cost of the affected land.

(ii) Receive government land in the "new irrigation development area" equivalent to theland forgone. Irrigation infrastructure will be provided at no additional cost. If adelay in provision of irrigation facilities occurs, the Alborz Dam project wouldprovide additional compensation equivalent to the difference in production onrainfed and irrigated land.

3 (iii) Receive agricultural land of equivalent productive potential in designatedDahestans (Lafour, Chahar dangeh, Babolkenar and Joybar, the latter in thedevelopment area) to be purchased by the Alborz Dam project. These lands would3 be identified by the people themselves. The project authorities will calculate theproductive potential of different types of land in the reservoir area and in theDahestans (Lafour, Chahar dangeh, Babolkenar and Joybar, the latter in theI development area) designated for potential purchase of private land forresettlement.

3 Other categories of impact regarding:

(iv) Sharecroppers: These will be compensated at the rate of three times their assessed,I annual income from sharecropping.

(v) People whose secondary sources of income are affected on account ofacquisition/displacement will be given additional compensation, up to 11 years ofincome from the forgone activity.

(vi) Unviable, redundant parcels of land and structures that are left behind after acquisitionof the main property will be acquired by the Alborz Dam Project and compensated if3 the owner so desires.

(vii) Displaced landless wage earners will receive special financial assistance. The project3 will also consider special assistance to other vulnerable groups.

(viii) A resettlement unit will be created within the MGRWC to oversee all aspects of land| acquisition and resettlement. The unit will include representatives from the affected

communities as well as a trained community worker to improve the communicationbetween the project agency and the affected communities.

(ix) An independent grievance unit with adequate representation of affected people will beestablished to handle complaints and grievances associated with land acquisitionand resettlement.

B-0-4

4. Resettlement Policy Framewvork - Upper Watershed

This section summarizes the provisions of the RPF for resettlement of animal husbandryI breeders and forest dwellers.

The Range, Forest and Watershed Organization (FRWO), as part of a national program, aims atI conserving, rehabilitating and sustaining the use and development of natural forest andrangeland resources. Its objectives are to:

(i) Balance the livestock population with the carrying capacity of the rangelands.

(ii) Remove scattered single families and domestic livestock located within the forest

area.

This national program is a phased program which started in 1996 and in Mazandaran and wasI implemented in Nour, Sari, Nakah, and Behshar. The program also includes the forests locatedin the upper watershed of Alborz Mountains covered by the AILWMP. However, the FRWOdecided to stop any relocation in the AILWMP area until a Master Plan (MP), which will beI carried out in the first one and a half years of the AILWMP in the upper watershed, iscompleted. Therefore, any relocation in the upper watershed in the AILWMP area will besubject to the result of the MP. The FRWO has decided to use this area as a pilot and use theI recommendations of the MP regarding the resettlement of the people living in this area. Incase, after the completion of the master plan, which its recommendations will be reviewed bythe Bank, there will be some resettlement in the AILWMP the following would be relevant.

Affected Population and Type of Adverse Impacts

The possible affected population includes 933 traditional cattle breeders/herders, 267 singlefaniilies lving within forest areas and, to a lesser extent, communities living in villages adjacentto the project area.

Under the national program currently under implementation by the FRWO, all scattered forestdwellers and single family living within the forest should participate in the relocation program

* of livestock from the forest as explained below.

Principles and Objectives of Resettlement

* (i) Traditional cattle breeders wvith grazing licenses and legal exemptions in the rangelands andpastures: The GOI will buy land and building structures at market rates andencourage the transition to intensive cattle breeding or farming. It will alsoencourage the trade-in of grazing licences (equal to 14,400 toam per livestock unit) inexchange for land outside the forest to be granted legal private ownership status. Ifcattle breeders opt for replacement land, the FRWO would ensure that everyaffected family receive a basic minimum area of land' adequate to sustainlivelihoods at least at current levels and prevent impoverishment irrespective of the

| compensation amount cattle breeders are entitled to receive according to the law.

'The replacement land will be provided at the lower watershed areas. This land belong to FRWO and no fresh acquisition will be necessary

B-0-5

(ii) Forest dwellers wuith legally valid exemptions for living inside the forest (communities withless than 20 households) will compensated as under item (i).

(iii) Sedentany village communtities living at periphenr offorests consisting of less than 20households are to be treated as explained under item (i). However, relocation ofthese all the above categories of people in the AILWMP area will be carried outbased on the result and findings of the MP, which will be reviewed by the Bank

* before implementation

(iv) Communities over 20 hIouseholds: The FRWO will offer incentives such as veterinaryservices, winter forage etc. to switch to modern cattle breeding. Even though theseI villages are not included in the national program of forest livestock resettlement, theaccess of villages in the periphery of the forest could be restricted in the future. TheGOI would initiate a number of economic development activities in these areas toreduce the current dependence on forest resources. Under the Upper Watershedand Forest Management Component of the AILWMP, a Master Plan will bedeveloped during the first 1-1 1/2 of the project to identify the details of theseI activities, including the establishment of forest cooperatives, in a participatorymanner.

The FRWO agreed to implement the following measures in the area of the AILWMP in additionto the statutory provisions described above:

(i) If affected people opt for replacement agricultural land and form farmercooperatives, the project will facilitate access to credit on concessional terms forprocuring agricultural inputs such as fertilizers, seeds and agricultural implements.I This would be carried out under the provisions of the ongoing small farmerassistance programs of MOJA.

(ii) If secondary sources of income such as small business, silk cocoon production etc.are affected on account of relocation, households would receive additional cashcompensation equivalent to an amount of 11 years income from such business. Thebusiness income will be assessed by a legal expert assessor.

(iii) Residential structures will be compensated at full replacement value without takinginto account any depreciation losses due to the age of structures. Furthermore, as aspecial concession, owners of structures will be will be allowed to carry salvageablematerials from the structures without any charge.

(iv) An independent grievance unit with adequate representation of affected people willbe established to deal with complaints/ grievances associated with land acquisition

| and resettlement.

(v) In order to strengthen the participatory structures and communication processbetween project agency and the participant households, the FRWO authorities willinvolve local NGOs. These NGOs will establish close contact with the participatinghouseholds and ensure that compensation payment and resettlement process is

| completed without hurdles and hardship to the participants.

B-0-6

The planning and implementation of the entire resettlement program will be guided by thefollowing principles:

(i) Transparency and information disclosure: Inventory of immovable property andlivestock, its evaluation and compensation and allotment of alternative land and

5 other entitlements will be done in a transparent manner. To this end, the FRWO willcarry out an information campaign in areas affected by the project, distribute

information booklets/handbills explaining the policy/legal provisions and willappoint community workers to interact and assist the affected communities.

(ii) Community Participation: The entire program will be carried out in a participatory3 manner with active, informed involvement of the affected communities and

households.

3 (iii) Overall economic improvement through expansion of existing forest cooperatives tocreate jobs and develop the economy; and improved agricultural training andextension services.

5. Resettlement Policy Framework - Lower Watershed

Affected Population and Types of Adverse Impacts

* The construction of new irrigation and drainage networks and improvement of the existingnetworks will involve acquisition of land for the right of way along the structures. Current

estimates indicate that a total of 905 ha of land is required for canal construction and another

526 ha for the construction of drainage infrastructures.

3 Affected people include

(i) Landowners loosing all or almost all of their land;

| (ii) Landowners loosing part of the land, but will still have an economically viableproperty;

| (iii) Agricultural laborers, sharecroppers, lessees etc.

Principles & Objectives of Resettlement

The land requirement for the Irrigation and Drainage Component under the AILWMP is

limited to the "right of way" of the canal and drainage networks and associated engineeringI structures and buildings. Compensation of affected persons will be governed by the followinggeneral principles:

3 (i) The project will take all possible steps to minimize the acquisition of productive,privately owned land and avoid acquisition of residential areas.

3 (ii) The GOI will endeavor to ensure that project affected persons do not sufferimpoverishment on account of land acquisition.

3 (iii) Compensation equivalent to the replacement value of land will be paid to the

property/rights owners based on this RPF.

3 B-0-7

I (iv) Landowners losing more than 25 percent of their holding will have the option ofreceiving replacement land in lieu of cash compensation.

(v) The annual land acquisitions and compensation plan will prepared andimplemented in a transparent manner with the participation of affected people and3 village institutions.

(vi) The project will replace infrastructure facilities such as roads, irrigation, andcommunication networks disrupted by the construction of canal and drainagenetwork.

| Legal and Policy Framework

Under this policy, acquisition and compensation of land required for (a) main canals anddrainage and (b) secondary and tertiary and distributaries are governed by different sets ofregulations and policies. These are discussed below:

3 (a) Primary and main canals and drains:

(i) People losing agricultural land will be provided cash compensation at the fullreplacement value of the affected land.

(ii) People losing more than 25 percent of their land holding will also have the option tobe allotted an equivalent amount of government land in the "new irrigationdevelopment" area.

(iii) Any uneconomic or "odd shaped" land holdings will be acquired by the project atthe option of the affected land holder.

(iv) Any crop or other damage incurred during construction will be fully compensatedfor by the project.

(v) Any village common property that is affected by the project will be compensated atits replacement cost, based on negotiations with the affected administrative units.

(vi) The project will cover the initial costs associated with developing and connectingreplacement lands to the irrigation system.

(vii) If secondary sources of income such as small business, silk cocoon production etc.3 are affected on account of land acquisition, such households will be given additionalcash compensation equivalent to 11 years income from such business (thecalculation of one year income is done by a legal expert assessor).

(viii) In the unlikely event of displacement, the project will take all necessary measures torelocate families by offering suitable replacement house plots and additional grants3 equivalent to 15 percent of compensation to cover the cost of relocation andtransitional phase expenses.

(ix) Residential structures will be compensated at full replacement value without takinginto account any depreciation due to the age of the structures.

I3 B0O8

(b) Secondary, tertiary and on farm canals and drains and distributaries

3 | With respect to construction of secondary as well as tertiary canals, land for the construction ofcanals in a given village can be donated by affected people under the following conditions:

l3| (i) A WUA is formed in the relevant village.

(ii) The WUA agrees to the land consolidation proposal presented by the projectl | authorities.

(iii) Under the proposed land consolidation scheme, none of the owners of agriculturall | land stands to lose more than 10 percent of their original land holding.

(iv) The contribution of land is counted towards the mandatory contribution required| for financing of tertiary canals and on-farm works.

(v) The irrigation connection fee (about USD 1200 per ha) will be waived for WUAs3 that agree to donate land for construction.

If any of the above conditions are not fulfilled, l\and for construction of secondary and tertiaryshould be acquired using the normal land acquisition procedures.

Implementation:

(i) A resettlement unit will be created within the MGRWC to oversee all aspects of landacquisition and resettlement. The unit will include representative from the affectedI communities as well as a trained community worker to improve the communicationbetween the project agency and the affected communities.

3 (ii) An independent grievance unit with adequate representation of affected people willbe established to deal with complaints and grievances associated with land

* acquisition and resettlement.

The implementation of all three resettlement programs, the RP and the RPFs, will be monitoredboth through internal, official institutional arrangements, as well as by independent, externalagencies to be appointed by the respective organization.

llll

3 B-0-9