REPUBLIC OF AZERBAIJAN
Real Estate Registration Project
ENVIRONMENTAL MANAGEMENT PLAN
October, 2006
1
Environmental Management Plan – Real Estate Registration Project, Azerbaijan
Table of Contents
ABBREVIATIONS AND ACRONYMS
1. SUMMARY AND BACKGROUND
1.1.Environmental assessment – purpose
1.2. The Project
2. POLICY CONTEXT
2.1.The World Bank Safeguards Policy
2.2. Azerbaijan Environmental Legislation and Procedures
2.3. Environmental Assessment
2.4. Criteria for Impact Assessment
3. ENVIRONMENTAL ASSESSMENT
3.1. Project Environmental Category
3.2. Potential Environmental Impacts
4. ENVIRONMENTAL MANAGEMENT GUIDELINES
4.1. Management
4.2. Mitigation Measures
4.3. Monitoring
5. CONSULTATIONS
Annex 1. Environmental Categories
Annex 2. Environmental Mitigation Plan
Annex 3. Environmental Monitoring Plan
ABBREVIATIONS AND ACRONYMS
CORS / Continuously Operating Reference StationsEA / Environmental Assessment
EIA / Environmental Impact Assessment
EMP / Environmental Management Plan
GOA / Government of Azerbaijan
IBRD / International Bank for Reconstruction and Development
IEC / Important Environmental Components
LEA / Limited Environmental Assessment
MENR / Ministry of Ecology and Natural Resources
NGO / Non-Government Organization
PMU / Project Management Unit.
RERP / Real Estate Registration Project
SC / Steering Committee
SCMSP / State Committee for Management of State Property
SSRRE / State Service for Registration of Real Estate
SLCC / StateLand and Cartography Committee
WB / World Bank
1. SUMMARY AND BACKGROUND
1.1.Environmental assessment – purpose
The Repuiblic of Azerbaijan is preparing a Real Estate Regisration Project, which aims to ensure that there is a reliable, transparent and efficient real estate registration system supporting the real property market and suitable systems for the management and use of state-owned immovable property. A Spesific Investment Loan is contemplated for financing this project. The overall cost of the project is estimated as US$ 42 million, with World Bank financing of about US$29 million.
The objective of the Environmental Management Plan (EMP) for the Real Estate Registration Project (RERP) is to help ensure that the project proposed for World Bank financing is environmentally sound and sustainable and that the project interventions are in compliance with the requirements of the legislation of the Republic of Azerbaijan and the World Bank safeguard policy.
RERP has been assigned World Bank environmental category B since it involves building renovations and construction. It is a requirement of the Bank and Azerbaijan legislation that for a B category project, all renovation/construction related project activities should be verified that they are in compliance with the Azerbaijan environmental laws and regulations and are consistent with World Bank policy (OP 4.01) and procedures on environmental assessment. The project is expected to have minor environmental impact that can be managed during the implementation of the project. As part of project preparation, a conceptual level environmental assessment of the project was conducted to propose mitigation measures in the form of the environmental management plan (EMP).
The Environmental Management Plan provides the framework to address environmental considerations of activities financed under the RERP. This document provides mitigation plans and monitoring plans to ensure appropriate attention to environmental and social safeguards issues, and tracking progress or problems in their management.
1.2. The Project
The key beneficiaries of the project will be those people and businesses that want security in their land or property in order to invest their labor or acquire capital through using real estate as security for loans. The citizens of Azerbaijan will also benefit by having more transparent systems operating and through government making better use of State owned immovable property assets. Improved use of State owned assets should benefit the citizens through increased revenue to government and more efficient use of property for social purposes.
The project will cover the whole of Azerbaijan and by the end of the project all of the existing known information about the location of immovable property and the rights relating to that property will be entered into a single automated system that is readily available to the public. The base mapping will provide a complete record of all property, whether officially recorded elsewhere or not, and the systematic analysis of properties and rights will help citizens to regularize their property rights and help the government to agree the strategies for dealing with informal settlements. The automated system will also include information about the location and use of all State-owned immovable property. The system for registering property transactions will be automated in each of the 21 registration offices and the established standard for registering a transaction will be one day. It is expected that customer satisfaction will increase and an increase in the number of transactions, including mortgages, will be noticed. These outcomes will be measured through regular statistical analyses of the number of immovable property objects entered into the new system and the number of sales, mortgages and leases registered. The project will also monitor the increase in the value of property and the total amount of money lent through mortgaging. Customer satisfaction will be measured through customer satisfaction surveys. Comparisons with other economic indicators will provide an estimate of the economic impact of the project against the general economic improvement for Azerbaijan.
At the time of this environmental assessment the project was in the preparation phase and although the following description of the project in terms of Project components is not likely to change in any significant manner before project approval, some of the details of the components may require modification.
The project will have four components as follows:
A. Real Estate Registration. The objective of this component is to provide more effective and efficient customer services in the registration of property rights through the improvement of the physical condition of the registration office premises and installation of automated systems and on-line services. Activities include: (i) the development of new buildings and renovation of existing buildings of the State Service for Registration of Real Estate (SSRRE); (ii) the supply of office equipment, furniture and computer systems; (iii) the development of a the unified registration and cadastre system providing improved service provision, archiving and on-line access to notaries and other professionals; (iv) providing a complete real estate cadastre and building inventory; (v) improvement in planning, permitting and valuation systems; (vi) improving public awareness; and (vii) improving the ongoing sustainability of the registration services through strategic and business planning.
B. State Property Management and Register. The objective of this component is to support the State Committee for Management of State Property (SCMSP) in its property management and privatization function. This will be achieved by: (i) improving the administrative systems and service delivery within the SCMSP; and (ii) improving the automated State Property Management System.
C. Base Mapping and Land Cadastre. The objective of this component is to provide the basic geodetic, mapping and cadastral data for the SSRRE and the SCMSP to establish their automated systems and continue with the maintenance of the real estate cadastre. Activities include: (i) Establishing a series of Continuously Operating Reference Stations (CORS) to be used for current and future survey work in all disciplines; (ii) the production of a complete set of digital orthophotomaps through new satellite and aerial imagery; (iii) development of land parcel maps; and (iv) improving the ongoing sustainability of the services of the State Land and Cartography Committee through strategic and business planning.
D. Project Management and Coordination. The objective of this component is to support project implementation and monitoring and to coordinate joint activities relating to: (i) developing a joint information technology/ information management strategy; (ii) policy and legislative development; and (iii) training. A project management unit will be funded for the administration of project finances, production of procurement documents and monitoring project activities.
2. POLICY CONTEXT
2.1.The World Bank Safeguards Policy
The World Bank requires an environmental assessment (EA) of projects proposed for Bank financing to help ensure that they are environmentally sound and sustainable, and thus improve decision making (OP 4.01, January 1999).
EA is the process, the volume, depth and type of which depends on potential ecological impact, features and volume of a proposedproject. EA evaluates the potential ecological risks of a project and its impact to the territories covered by the project; analyses alternatives of the project; determines ways for development of choice, location, planning, design and execution of the project, by taking measures on mitigation, compensation and bringing to minimum of harmful ecological impacts and strengthening its positive impacts to the environment. The Banks prefer preventive measures, if any, to mitigation or compensation ones.
The EA takes into account the environment (air, water and land); humans health and safety; social aspects (obligatory resettlement, residents and cultural heritage property); and trans – boundary and global ecology aspects. At the same time it takes into account all changes taken place in the project and country; results of ecological studies held over the country, plans of local ecological measures; common political framework of the country, local legislation and institutional possibilities on ecological and social aspects; obligations of the country on international Agreements and Treaties concerning the projects activities. The Bank doesn’t fund the project activities which are contrary to such country’s obligations as it would be determined during the EA.
Key considerations to be taken into account during the EA process include:
- Generic initial screening to determine appropriate environmental assessment;
- Compliance with existing environmental regulations in Azerbaijan;
- Linkages with social assessment;
- Analysis of alternatives;
- Public participation and consultation with affected people and organizations; and
- Disclosure of information.
2.2. Azerbaijan Environmental Legislation and Procedures
Environmental protection in Azerbaijan is governed by the Law on Environment Protection (1999). The Law establishes the main environmental protection principles, and the rights and obligations of the State, public associations and citizens regarding environmental protection. It establishes the requirements for the preparation of environmental impact assessments, environmental quality standards, and requirements for permitting the activities that affect the environment, prevention and reduction of environmental pollution, environmental monitoring and control, the role of the public and sanctions imposed on law violators. Other laws governing specific issues such as sanitary-epidemiological welfare, land reform, energy, health, water, forests, cadastre and land use, industrial and domestic wastes, ecological safety, water supply and wastewater, atmospheric protection and specially protected areas have been adopted since 1992. In addition, a large number (some 75+) of Decisions of the Cabinet of Ministers have been issued to help interpret the body of environmental legislation and related Presidential Degrees and Orders.
According to Article 42 of the Law on Environmental protection, the Ministry of Ecology and Natural Resources (MENR) is the competent authority for reviewing the EIA request and documentation prepared by independent experts hired by the project developer prior to initiation of a new investment project. Other key laws forming the legal basis for EIA are the Law on Ecological Safety (1999) and the Provision on the Process of Environmental Impact Assessment in Azerbaijan (1996). The EIA application may be submitted to the head office of the MENR or to a local branch office. In the process of reviewing the EIA application the MENR evaluates the following criteria:
- Whether the proposed project envisions new technologies;
- The volumes and complexity of the proposed processes or technologies;
- The expected environmental consequences;
- Whether the proposed project would create significant changes for the local population; and
- Public response to the proposal.
Azerijan has ratified scores of International and bilateral conventions, treaties and agreements, including 15 Conventions related with environment. Each law of Republic of Azerbaijan includes a special chapter or article stating that if International Agreements provide rules which differ from existing relevant rules of Azerbaijan Legislation, the rules of international documents should prevail.
2.2.1. Construction standards and regulations
In Azerbaijan, engineering survey, design and construction standards and regulations are governed by the State Construction Committee. Rules of conducting supervision and control procedures by the State Construction Committee (in several areas regarding to safety of construction by the recently established Ministry of Emergencies) had been approved by the Cabinet of Ministers in 2003. Subject to the State Construction Committee regulations all construction operations are to be carried out with due regard to the environmental requirements. Following the existing construction rules, construction or renovation works are to be carried out on the basis of the approved project (design) documents only. The State Construction Committee issues special licenses to conduct engineering survey and design operations (no license is required for construction operations).
The project design documents include descriptions of proposed construction and related activities together with applications for permits from relevant authorities for geological studies of soil characteristics, fire safety, public health, utilities (gas, water, electricity, telecommunications) and environmental assessment. The relevant authorities conduct inspections during construction to monitor compliance with the permits, and may issue significant fines if violations are found.
2.3. Environmental Assessment
The Bank undertakes environmental screening of each proposed project to determine the appropriate extent and type of EIA. The Bank classifies the proposed project into one of four categories, depending on the type, location, sensitivity and scale of the project and the nature and magnitude of its potential environmental impacts. The four Categories are A, B, C, and FI, and these categories are detailed in Annex1. Under Azerbaijan Law an EA is grouped in four environmental categories (1,2,3, or 4) the first three of which are approximately equivalent to Bank environmental categories A, B and C. Azerbaijan Category 4 relates to project activities that have no environmental impact but may need some form of permit. (Annex 1)
2.4. Criteria for Impact Assessment
Criteria used for determining the significance of an impact includes severity, extent, duration, frequency, possibility of occurrence, and possibility of reversibility of the impact. The extent of each of the criteria was based on judgement and no numerical ranking or consideration was given.
The remaining inputs will have varying levels of potential impact and for each of these a matrix has been established that describes the potential direct and indirect impacts that can be expected, and the consequences of these impacts. The mitigative solutions to these impacts are also provided. Each input is given a level of impact significance prior to mitigation and a level of significance (for the residual impact) assuming that mitigation is carried out.
Table 2.1: Level of Significance of Potential Impact
Level of Significance / DescriptionVery High Significance / Potential impact of the Project could cause damage to an IEC* over a large area affected (e.g. loss of important habitat, loss of biodiversity, loss of large areas of productive land). Mitigation is not possible and the impact is irreversible.
High Significance / Potential impact of the Project could cause irreparable damage to a small area (e.g. on site) of an IEC; or, potential impact could cause damage to an IEC over a large area, but the ecosystem can still function (e.g. surface water contamination causing limited aquatic ecosystem damage). The impact is reversible over a long period of time.
Moderate Significance / Potential impact damages an ecosystem over a small area but it is still functional and the damage is reversible over a long period of time. Damage to an ecosystem over a large area, still functional, and the damage is reversible over a relatively short period of time.
Low Significance / Potential impact of the Project could cause damage to an IEC over a small area but system still very functional and damage is reversible over a short period.
No Impact / Non measurable impact.
*- IEC- Important Environmental Components (IECs) are those components of the environment which society generally feels are worthy of protection in light of the general activities of the project. Important environemtnal
Important environmental components in implementation of the projects that have construction-assembling works superiority include Physical Components (Soil quality, Soil erodibility, Land, Surface water quality, Hydrological regime, Groundwater quality Air quality) Biological Components (Trees, vegetation, Flora, Fauna, Aquatic ecosystems) and Socioeconomic Components (Poverty, Health, Migration, Income, Employment, Historical/Cultural Sites, Domestic water).
3. ENVIRONMENTAL ASSESSMENT
3.1. Project Environmental Category
The project has been assessed as a Category B project under the environmental safeguards criteria of the World Bank. It is anticipated, that project activities will not trigger the process of full-scale analysis of impacts to ecology. A Category B project has potential adverse environmental impacts on human populations or environmentally important areas - including wetlands, forests, grasslands, and other natural habitats - which are less adverse than that of Category A projects. These impacts are site-specific; few if any of them are irreversible; and in most cases mitigatory measures can be designed more readily than for Category A projects.
3.2. Potential Environmental Impacts
The Project is not expected to produce major environmental impact. Environmental issues are foreseen mainly with respect to the activities within component “A”, Real Estate Registration, which will include the renovation of existing offices of the SSRRE and consruction of new registration offices, in order to improve customer reception and service delivery. New buildings or extensions are required in 14 regions and there will be renovations in 7 existing facilities. The offices will be supplied with suitable furniture, achiving facilites and equipment needed to provide efficient and reliable service to the public. The floor plans of the building will be designed to ensure optimum work. Building size and renovations would vary as a function of the expected business volume and staff number. The project would contract architects/engineers or design companies to undetake the designs and working drawings and conduct supervision and acceptance of the work. The land titles for all sites selected for rehabilitations or new constaruction are being obtained and there no resettlement would be involved in the new and renovated building works.The other project components have no environmental impact (see table 3.1 below). Overall, the environmental risk is low.