ISDS THE WORLD BANK GROUP AWorld Frce ot Povarty - _= - - = ~ - ' [i InfoShop Integrated Safeguards Data Sheet (Updated) Date ISDS Prepared/Updated: 08/05/2002 24627 Section I - Basic Information August 5, 2002 A. Basic Project Data Country: KAZAKHSTAN Project ID: P059803 Project: NURA RIVER CLEANUP PROJECT Task Team Leader: Piotr Krzyzanowski (FORMERLY ENV. MGT & REHAB) Authorized to Appraise Date: October 16, 2002 IBRD Amount ($m): 41.60 Bank Approval: February 13, 2003 IDA Amount ($m): Managing Unit: ECSSD Sector: Central government administration (25%); Lending Instrument: Specific Investment Loan (SIL) Information technology (5%); Water supply (70%) Status: Lending Theme: Environmental policies and institutions (P); Water resource management (P) I.A.2. Project Objectives: The immediate objective of the project is to significantly reduce hazards of industrial mercury in the Nura River Basin by cleaning up the mercury pollution at its original source (AO Karbide plant site) and along the banks and floodplains of the Nura River, and by instituting effective water quality protection measures and needed regulatory reforms to prevent further contamination. Longer term, the project will ensure the availability of a second source of clean drinking water for the country's capital city (Astana), obviating the need to pump water from a distant, uneconomic canal. I.A.3. Project Description: The project will: i) excavate contaminated hotspots, including those at the AO Karbide plant site and certain areas along the banks and floodplains of the Nura River; ii) complete the spillway at the Intumak reservoir to provide a water management tool and possible sediment trap; iii) strengthen the Nura River Basin Authority, in order to improve its monitoring network, the water pollution control system, and the regulatory framework within which it operates. I.A.4. Project Location: (Geographic location, information about the key environmental and social characteristics of the area and population likely to be affected, and proximity to any protected areas, or sites or critical natural habitats, or any other culturally or socially sensitive areas.) The project focuses on the AO Karbide plant site, located in Temirtau, Kazakhstan, and on approximately 25km of the Nura River. The river is a typical steppe river, with its flow practically limited to snowmelt during the summer season. Some 1.5 million people live in the Nura-Ishim river basin (the project area). Most live in the national capital, Astana, and in the 2 ISDS cities of Karaganda and Temirtau, which together have a population of 925,000. The agricultural users in the Nura River Basin are found throughout in scattered, small communities. Farmers once relied on highly subsidized irrigation systems, but with the removal of subsidies, most farners abandoned irrigation and now rely on subsistence, rainfed farming. Although many industrial enterprises have closed or scaled down production in the face of world market competition, industry continues to employ the bulk of workers in the basin. In addition to serving direct human needs, the Nura eventually discharges into the Kurgaldzhino Wetlands, an internationally-recognized nature reserve (a RAMSAR site). B. Check Environmental Classification: A (Full Assessment) Comments: The project will handle mercury, a hazardous waste. The excavation and final disposal of the mercury-contaminated soils is sensitive, requiring proper construction practices, operation of the landfill, worker practices, and monitoring. Therefore, the project has been categorized as "A." C. Safeguard Policies Triggered Policy Applicability Environmental Assessment (OP/BP/GP 4.01) 0 Yes 0 No 0 TBD Forestry (OP/GP 4.36) O Yes C No O TBD Natural Habitats (OP/BP 4.04) O Yes O No O TBD Safety of Dams (OP/BP 4.37) O Yes O No O TBD Pest Management (OP 4.09) O Yes O No C TBD Involuntary Resettlement (OP/BP 4.12) 0 Yes 0 No 0 TBD Indigenous Peoples (OD 4.20) O Yes O No 0 TBD Cultural Property (OP 4.11) * Yes O No 0 TBD Projects in Disputed Territories (OP/BP/GP 7.60)* * Yes 0 No 0 TBD Projects in International Waterways (OP/BP/GP 7.50) 0 Yes 0 No C TBD *By supporting the proposed project, the Bank does not intend to prejudice the final determination of the parties' claims on the disputed areas Section II - Key Safeguard Issues and Their Management D. Summary of Key Safeguard Issues. Please fill in all relevant questions. If information is not available, describe steps to be taken to obtain necessary data. IT.D. I a. Describe any safeguard issues and impacts associated with the proposed project. Identify and describe any potential large scale, significant and/or irreversible impacts. Environmental Assessment. The project triggers OP 4.01, is rated A, and thus an Environmental Impact Assessment is being undertaken for the project. The EIA contracted by the Borrower is being overseen by an International consultant, using local consultants for data gathering and public meeting organization. The EIA will be submitted to and reviewed by the Bank, to ensure full compliance with Bank guidelines (including public consultation and disclosure). Safety of Dams. The Intumak Reservoir, located on the Nura River, will be used by the project as a water management tool and perhaps as a sediment trap for remnant mercury-contaminated sediment. Therefore, a dam safety assessment was undertaken by international experts. The study recommended that the main dam needs rehabilitation to be at international standards. The project will undertake the recommended measures. 3 ISDS International Waterways. The project triggers OP 7.50 since the Nura (a wholly national river) is connected to the Ishim (which ends in Russia) by a canal near Astana. The Kazakh government has sent the letter, as required by the OP and approved by the Bank legal department, to the Russian government. II.D. I b. Describe any potential cumulative impacts due to application of more than one safeguard policy or due to multiple project component. Mercury is highly toxic, therefore, proper management of exposure during excavation and containment at the landfill is critical. Proper long-term operation and monitoring of the landfill will ensure that the project has a positive environmental impact. The project includes a component to establish a monitoring system and strengthen water management, with a view toward providing the downstream protected wetlands with 100% of needed ecological flow. The quality of the water entering the wetlands will be much improved as a consequence of this project. II.D. I c Describe any potential long term impacts due to anticipated future activities in the project area. The long term impacts are expected to be positive, through reduced mercury release into the environment. Increased water use by the city of Astana is anticipated, which will affect the water quality and quantity of the Nura River. The project would address long-term water resource management issues, including institutional aspects and ecological flow. II.D.2. In light of 1, describe the proposed treatment of altematives (if required) Do nothing. The argument can be made that the latent mercury should be left undisturbed both at the Carbide plant site and the topsoil. However, the risk analysis done during the feasibility study indicated that this option should be rejected due to the increasing risk that the mercury cannot remain contained: mercury currently contained in the Carbide plant's buildings will be released in the short-term when the decrepit roof collapses; and mercury hot spots on the river banks and floodplain are likely to further contaminate the water during the Spring floods. Adding to this risk is the fact that the Carbide plant's bankruptcy protection ends this Spring, and squatters are expected to invade the previously-protected grounds. The do-nothing scenario also ignores the medium-term need for an alternate water supply for Astana, which requires that contamination of the Nura during floods be cleaner up and the Nura protected from further contamination. Focus on AO Karbide plant site only. One option is to focus only on the immediate need for environrmental remediation of the AO Karbide plant site, without any intervention in the floodplains or banks of the river. The feasibility study indicates, however, that there are hotspots with very high mercury concentrations in the floodplain and in some sections of the Nura River's banks. These sites should be remediated in order to ensure potability of the Nura River and to avoid contamination of the water supply from floods. Technical options for remediation. The technical option for remediation of the contaminated areas include in-situ remediation, excavation, and isolation. Due to the significant amounts of chemicals that would need to be used, and the location of the contaminated soil in riverbeds and banks of the Nura, in-situ remediation is not feasible. Isolation is not favored since the 4 ISDS groundwater would remain vulnerable. The feasibility study recommends removal and safe storage. Landfill siting. Various sites for the landfill are being considered in the EIA. The most appropriate will be selected based on many considerations, including: transportation, geology, hydrogeology, natural habitats, social impacts and so on. II.D.3. Describe arrangement for the borrower to address safeguard issues Oversight of the implementation of the EMP will be the responsibility of the Borrower. Many of the actions regarding proper excavation techniques, worker safety, and landfill operation, will be passed on to the contractor. These requirements will be included in bidding documents. Il.D.4. Identify the key stakeholders and describe the mechanisms for consultation and disclosure on safeguard policies, with an emphasis on potentially affected people. The initial public consultation workshops on the draft EIA were held in early February 2002 both in Temirtau and Karaganda. Forty and 120 people attended, respectively, representing decision makers, NGOs, academia and local farmers. The workshops, organized by a local environmental NGO, led by the international consultant overseeing the EIA, and chaired by the Deputy Governor, were the first ever EIA public consultations in the region at this level. A smaller working group was formed, with representatives from all areas, which will be responsible for providing input into project design and implementation. The final EIA and Environmental Management Plan will be consulted. Minutes, participant list and final agreements are in project files. The draft Final EIA will be locally available in Russian before the final consultation. E. Safeguards Classification. Category is determined by the highest impact in any policy. Or on basis of cumulative impacts from multiple safeguards. Whenever an individual safeguard policy is triggered the provisions of that policy apply. [X] SI. - Significant, cumulative and/or irreversible impacts; or significant technical and institutional risks in management of one or more safeguard areas ] S2. - One or more safeguard policies are triggered, but effects are limited in their impact and are technically and institutionally manageable [ ] S3. -No safeguard issues [ ] SF. - Financial intermediary projects, social development funds, community driven development or similar projects which require a safeguard framework or programmatic approach to address safeguard issues. F. Disclosure Requirements Environmental Assessment/Analysis/Management Plan: Expected Actual Date of receipt by the Bank 4/25/2002 Date of "in-country" disclosure 2/7/2002 Date of submission to InfoShop 4/30/2002 Date of distributing the Exec. Summary of the EA to the ED 5/17/2002 5/17/2002 (For category A projects) Resettlement Action Plan/Framework. Expected Actual Date of receipt by the Bank Not Applicable Not Applicable Date of "in-country" disclosure 5 ISDS Date of submission to InfoShop Indigenous Peoples Development Plan/Framework. Expected Actual Date of receipt by the Bank Not Applicable Not Applicable Date of "in-country" disclosure Date of submission to InfoShop Pest Management Plan: Expected Actual Date of receipt by the Bank Not Applicable Not Applicable Date of "in-country" disclosure Date of submission to InfoShop Dam Safety Management Plan: Expected Actual Date of receipt by the Bank 7/16/2001 Date of "in-country" disclosure 6/29/2001 Date of submission to InfoShop 4/25/2002 If in-country disclosure of any of the above documents is not expected, please explain why. Signed and submitted by Name Date Task Team Leader: Piotr Krzyzanowski April 18, 2002 Project Safeguards Specialists 1: Kirsten Oleson/Person/World Bank April 18, 2002 Project Safeguards Specialists 2: Project Safeguards Specialists 3: Approved by: Name Date Regional Safeguards Coordinator: Jane E. Holt August 1, 2002 Sector Manager/Director: Laura Tuck August 1, 2002 For a list of World Bank news releases on projects and reports, click here SEARCH _ D8ACI( _ = S E _1