Local Development Fund Project-Iran

Local Development Fund Project-Iran

Environmental Guidelines

1. Introduction

Summary and Main Findings

The Project (LDF) in its entity is a category B therefore requiring a Program/Project EMP which has been completed on the 15th of January in Iran at the end of a field trip mission that has comprised the visit of only two of the four provinces under the LDF: Tehran and Khoozestan. The EMP is rather generic since the projects selection is not final, and includes environmental guidelines with some specific EMP guidelines for the types of projects presented.

Most of the projects (Community Action Plans) are categorised as B and C however one or two projects initially identified are category A. In particular the projects in Rofaie, where they concern the NEECAN river, the dredging of 4 sub canals (5 to 7 kms each) and the conversion to agriculture of 500 hectares of land. These projects are in or near natural habitats (AL HOOR AL AZIM wetlands and marshlands). The NEECAN river even though not an international waterway by Iraq/ Iran pact of 1974?, however is part of the water shed of the Al Hoor Al Azim (together with Qarun, Al Kharq rivers in Iran and Tigris and Euphrates in Iraq). However, since the entire Project is category B, therefore category A projects will not be eligible for funding under the Project.

Category B projects will need site specific EMPs before implementation, particularly projects for drilling irrigation and potable water wells, common and public baths and industrial work shops as well as others that have been pointed out. Projects that require re location such as local markets are also prone to EMPs and proof of land acquisition/tenure as well as no case of involuntary resettlement/loss of incomes and livelihood.

The Project and the provincial TSUs need to hire soon environmental specialists to look at the issues. The TSUs together with the LCs have done an excellent job of providing a demand driven shopping list of projects. The TSUs in particular will be requested to be the ‘’technical’’ arm and to supervise the in depth feasibility, technical and environmental study of projects. The LCs will stay closer to their members/people and bring to the LDF the aspirations of their members and list of projects.

Since there will be a request for site specific EMPs, a budget should be allocated for the environmental component by the time the site specific EMPs are in progress.

There is room under the LDF Project to do a number of ''environmental'' income- generating projects that will benefit the poor and the vulnerable in the areas of the Project.

Institutionally it is very important that associations such as street level ones, water users and cooperative are formed to take ownership of the tasks associated with the projects follow up and maintenance. Furthermore the projects require more NGO participation in order to do- assume specific roles such as awareness, training and intermediary service providers.

1.1Background

This Report has been prepared to present the environmental requirements and guidelines for the Local Development Fund Project (LDF) that the Government of Iran, Ministry of Interior is planning to initiate aiming at raising living standards in targeted poorer communities.

The report aims at providing guidance in identifying environmental assessment needs for the various projects and projects that are funded by the LDF. Funded projects/ projects fall under two components:

Component 1: Local Community Development (US$75 million)

This component will be the largest in the project with an estimated allocation of 75% of total project funds. This component will finance investments in three areas that are interrelated: (a) Small scale demand-driven social infrastructure projects; (b) Small scale demand-driven economic infrastructure; and (c) Income generating activities.

Component 2: Support to Vulnerable Groups and Pilot Initiatives (US$15 million)

About 15% of the project’s funds will be allocated to this component. This component will finance: (a) Programs/projects to support vulnerable groups like the disabled, children, youth, women and the elderly; and (b) new and innovative ideas through pilot initiatives with potential for replication in delivering social services to the identified target group.

The report is structured as follows:

Chapter 1 - Introduction

Chapter 2 - Policy, Legal & Administrative Environmental Framework

Chapter 3 - Potential Significant Environmental Impacts and Good Practice Environmental mitigation procedures

Chapter 4 - Environmental Review Procedures

Chapter 5 - Terms of Reference for Environmental Assessment

Chapter 6 - Environmental Management Plan EMP

Chapter 7- References

1.2The Purpose of Environmental Guidelines

The implementation of the LDF falls under the responsibility of the Deputy for Social Affairs and Local Councils, Ministry of Interior who would be in charge of coordinating the various activities with concerned sectoral ministries, local governments, and NGOs. Technical Support Units (TSUs) will be established within the office of the Governor General and would comprise experts with relevant experience in implementing similar projects, and with proven capacity to handle all functions required in such a project. Among its mandates, the TSUs will ensure that any sponsored project/subproject is environmentally sound and sustainable. The TSU shall ensure the following:

-Environmental considerations be included as criteria for selecting activities to be supported by the project;

-Environmental assessment would become an integral part of the project cycle of any subproject;

-Environmental guidelines are followed and used.

1.3 Environmental Assessment (EA)

The World Bank Operational Policy (OP 4.01) on Environmental Assessment (January 1999) defines the Bank’s environmental assessment requirements to ensure that funded projects are environmentally sound and sustainable. A screening process is undertaken for all funded projects to assess the magnitude and adversity of predicted environmental impacts and to determine the appropriate extent and type of EA. Depending on the type, location, sensitivity and scale of the project as well as the nature and magnitude of environmental impacts, projects are classified into one of three categories:

Category A Projects that are likely to cause significant and possibly irremediable environmental impacts.

Category BProjects that might cause lesser adverse impacts than those of Category A and the impacts are often remediable or mitigable.

Category CProjects which could have minimal or no adverse environmental impacts.

Projects funded by the LDF are classified as Category B or Category C. For instance all income enhancement projects will be classified as Category C, while most social and infrastructure projects will be Category B. Projects that are likely to cause substantial negative impacts and are expected to fall in Category A. These will not be eligible for funding under the Project.

The following Chapters of the Environmental Guidelines will provide guidance with respect to the preparation of environmental assessment for the various funded projects. These guidelines are based on the World Bank Operational Policies (OP 4.01), the Environmental Assessment Source book (1991) and its updates. The user of these guidelines should consult these references and should be also aware of the following World Bank’s Environmental Policy:

-Environmental Assessment (OP4.01)

-Conservation of Natural Habitats (OP 4.04)

-Pest Management (OP 4.09)

-Cultural Property (OP 4.11)

-Indigenous Peoples (OP 4.20)

-Involuntary Resettlement (OP 4.12)

-Forests (OP 4.36)

-Projects in International Waterways (OP/BP 7.60)

-Projects in Disputed Areas (OP/BP 7.60).

2.Policy, Legal & Administrative Environmental Framework

2.1- Regulatory and Administrative Frameworks

2.1.1 - National Legal Framework

Iran has a comprehensive legal framework guiding water resources management and environmental management and protection. Article 50 of the Constitution of the Islamic Republic of Iran declares the protection of the environment a public obligation and therefore "economic and any other activity, which results in pollution or irremediable destruction of the environment, is prohibited".

Important relevant laws include:

• The Plant Protection Act (1967) and the Plant Protection Implementation Regulation
• Law on the Protection of Forest and Rangelands (1967)1
• Environmental Protection and Enhancement Act (1974)
• Law for Endangered Species of Wild Fauna and Flora (1974)
• Law for Protection of the NaturalParks, Protected Areas and Sensitive Areas (1975)
• Land Acquisition Law (1980)
• Law for Proper Use of Water Resources (1982)
• Law for Environmental Protection Against Water Pollution (1984)
• Law on Economical, Cultural, Societal Development (1989)
• 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 Bylaws for Paragraph (c) of Articles 104 and 134 include:

(i)the categorization of water bodies based on their environmental sensitivity;

(ii)the establishment of national discharge 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 with relation to environmental affairs and has accepted international legal responsibilities by adhering to a substantial number of international conventions. These include the Convention on Biodiversity, the Convention on Wetlands ("Ramsar" Convention), the World Heritage Convention, CITES, the Rotterdam Convention on the prior Informed Consent Procedure for Certain Hazardous Chemicals and Pesticides in International Trade, Stockholm Convention on Persistent Organic Pollutants, and the Kyoto Convention on Climate Change (since 1997).

2.1.2 - National Policy Framework

The LDF will be implemented under the overall policies and provisions of Iran's Five Year Development Plans, of which the fourth is currently under preparation, and in accordance with the GOI's environmental strategies.

In 1993, the National Strategy for Environmental Sustainable Development was adopted. Its framework 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 to international environmental concerns.

In the forestry sector, the GOI is pursuing a strategy of multiple-use forest utilization and is launching a vigorous national program to reclaim forests and rangelands, protect watersheds and manage natural and man-made forests on a sustained-yield basis. The government is promoting the creation of forest cooperatives that are organized at the level of individual watersheds and

forested sub-catchments. The cooperatives are envisaged to enter into a contractual relationship with the GOI and obtain long-term concessions to carry out various forest management and rehabilitation activities at the watershed level. The GOI is also encouraging the private sector to get involved in long-term concession management of large forest areas with the objective of sustainable commercial forestry.

In terms of resettlement, the Ministry of Jihad and Reconstruction is responsible for resettlement. Order No.1948/S1O/V (1996) and the subsequent amendments of 2001 and 2003 guide the resettlement process of forest dwellers, including the relocation of livestock herders from degraded rangeland and forests. The Order is applicable to all settlements and animal husbandry units located within designated forests as approved by the Forest, Range and Watershed Organization (FRWO) under MOJA. Compensation and other benefits prescribed under the Order will be available to those who (i) participate in the resettlement program; (ii) remove all livestock from the forest; (iii) surrender all exemptions they enjoyed within the forest area; and (iv) formally give up all claims and rights they had inside these areas. Under this national program, all single forest dwellers and villages fewer than 20 households need to participate in the plan.

2.1.3- National and Regional Institutional Environmental Framework

National Policy on environmental protection has been stated in the Constitution of the Islamic Republic of Iran Article 50 and 45. In March 1971, the Department of the Environment (DOE) was established with general jurisdiction for environmental protection based on the Game and Fish Law of 1967 pertaining to wildlife and inland water fisheries conservation.

In 1974, the Environmental Protection and Enhancement Act, appointed the Department of the Environment (DOE) as the main responsible authority for the protection of environment. According to section one of this act, DOE shall be responsible for the protection and enhancement of the environment, the prevention and control of any form of pollution or degradation leading to the disturbance in the environmental balance, and conducting all matters related to wildlife and aquatic biota of the territorial waters by environmental violation.

2.1.4- Existing Environmental Legislation

In the following sections, an overview to the most relevant laws and regulations are presented.

Protection of Forest and Rangeland:The first law in this connection was passed by the parliament on 21 August 1967, before the creation of the Department of Environment (DOE). According to this Law and its amendment of 4 May 1975 as well as the law of Preservation and Protection of Natural Resources and Forest Reserves of 27 September 1992, the protection, recovery, restoration, rational utilization of the forests, rangelands and national areas (areas owned by government) as well as seashore areas are the responsibility of the government. Any plan or project for utilization of these natural resources should be subject to the approval of Ministry of Jihad Agriculture MOJA (Forests and Rangeland Organization FRO).

Land Use:As mentioned earlier, most land use laws and regulations are covered by the Protection and Utilization of Forest and Rangelands law and its amendments. Other laws and regulation governing land use particularly for urban development include: Law of Urban Renovation and Development (28 November 1968) and its amendments; Urban Land Law (13 September 1987) and its amendments; law for Establishment of Urban and Archeological High Council (28 November 1968) and its amendment dated April 6th, 1997; the Coastal Zone and Properties act of July 20th, 1975; law on Protection of Farmland and Gardens Land Use (21 June 1995) and its regulations of January 14th, 1996; law of Protection and Improvement of Green Area of the Cities (24 May 1980); regulation of Siting Criteria for Industries (6 March 2000); regulations of Land Use, Construction of Buildings and Facilities Beyond Formal City Boundaries (17 May, 1976 and 22 January, 1995); and regulations for Land Rehabilitation (10 April, 1980).

Water Resources:Water use and management of water resources management are defined under the Water Act and Nationalization of Water Resources Law (18 July, 1968), Protection and Preservation of Ground Water Law (22 May 1966) and Fair Water Distribution Act (March 1983). The Fair Water Distribution Act was developed from Article 45 of the constitution for water resources management and covers all national water bodies including surface, ground water and watershed, as well as their utilization and protection. Marine, Lakes and other water bodies are also covered in this law. In this regard, the regulation for the perimeter of protection for Surface Water and Irrigation Channels was approved on October 2nd, 2000. According to this law, any plan or project using water resources (such as boreholes for ground water use or dams and etc) shall be subject to the approval of the Ministry of Energy (MOE).

Marine Environment:Protection of the marine environment is defined by the Prevention of Water Pollution Act (8 May 1994) and the law on the Protection of Frontier Rivers and Marine Environment from Oil Pollution (24 January 1976). However, application decrees and specific standards have not been established yet. In addition Iran is member of Regional Organization for Protection of Marine Environment in the Persian Gulf and Sea of Oman (ROPME). For the Caspian Sea, a draft environmental convention is being prepared with the support of UNEP.

Soil, Air and noise pollution: The Environmental Protection and Enhancement Laws and regulations cover Introduction of any kind of pollution to the environment. In addition, the Air Pollution Act of April 1995 and its regulations (7 October, 2000) cover all sources of air pollution. Under Article 27 of the Air Pollution Act, regulations for the abatement of noise pollution from various sources have been also developed.

Solid waste management:DOE submitted a law on the Management of domestic, industrial, agricultural, hospitals and hazardous wastes in cooperation with municipalities. The law has been approved by the cabinet and is awaiting the approval of parliament.

Archeological and historical sites:In connection with urban development and according to Article 9 of the Urban Land Law (13 September 1987), and Note 22 of article 55 as well as Article 102 of Municipalities Law (2 May 1955), any activities in urban areas must observe the necessary measures for protecting archeological and historical sites from construction activities.

Protected Areas:Protected areas are defined under Environmental Protection and Enhancement Act and are classified into four categories and include: National Parks, National Monuments, Wild Life Refugee and Protected Areas. Hunting, grazing, cutting of trees, harmful actions, as well as exploration and exploitation of mines are prohibited in protected areas. The list of protected areas is given in Annex A2.

2.1.5-National Environmental Standards

National standards for drinking water, wastewater, air and noise have been developed and are presented in Annex A3

2.1.6-Regional and International Conventions

Iran has ratified a number of regional and international conventions for the protection of environment among which are: protection of the marine environment, biodiversity, climate change, Ozone layer, Desertification, cultural heritage and etc. The list of ratified conventions is provided in Annex A4.

2.1.7-Regulatory Framework for Environmental Assessment

Environmental Impact Assessment (EIA) in Iran was enabled by Note 82 of the Law for the Second State Economical, Social and Cultural Development Plan of 1994, amended by Note 105 of the Third Development Plan. EIA was approved by the Environmental High Council (EHC) through Decree 138 of 12/04/1994. Detailed requirements were then defined in the Code of Practice of 23/12/1997. The EHC has defined eighteen project types subject to EIA, seven in Decree 138, with a further 10 added in 2000. EHC may also require an EIA for any other large project. Screening thresholds for the first seven classified types are defined in the 1997 Code of Practice, together with the requirements for the pattern of the assessment.