INTEGRATED SAFEGUARDS DATA SHEET
CONCEPT STAGE
Report No.: AC3432
Date ISDS Prepared/Updated: 02/14/2008
I. BASIC INFORMATION
A. Basic Project Data
Country: Azerbaijan
Project ID: P110682
Project Name: AARP/ Large Scale Oil Polluted Land Clean up
Task Team Leader: Aniruddha Dasgupta
Estimated Appraisal Date: March 3, 2008
Estimated Board Date: July 15, 2008
Managing Unit: ECSSD
Lending Instrument: Specific Investment
Loan
Sector: Oil and gas (100%)
Theme: Pollution management and environmental health (P)
IBRD Amount (US$m.):
60.00
IDA Amount (US$m.):
0.00
GEF Amount (US$m.):
0.00
PCF Amount (US$m.):
0.00
Other financing amounts by source:
Borrower
6.00
6.00
B. Project Objectives [from section 2 of PCN]
The proposed development objective for this project would be:
* Strengthen the SOCAR’s capacity and procedures for carrying out efficient and effective
large scale environmental cleaning of oil polluted land
C. Project Description [from section 3 of PCN]
This project represents one element of a long-term program of collaboration with the
Government of Azerbaijan aimed at improving the urban environmental sector in the Absheron
Peninsula through environmental remediation and improved management (the Absheron
Rehabilitation Program). As such, the project will focus on a limited number of realistic
objectives which are considered achievable within the span of the project life while laying the
groundwork for future support in the context of this program. Support for several components of
the Program is being identified and prepared simultaneously: improved solid waste management,
clean-up of oil-contaminated lands, and strengthening of regulatory and monitoring capacity.
The Absheron Rehabilitation Program itself is expected to have two phases. Phase I will focus
on self-standing emergency activities, which will be carried out simultaneously with the
preparation of longer-term activities requiring up-front strategic planning, capacity building
and/or extensive feasibility and environmental preparatory work. Phase II will focus on priority
investments prepared in Phase I. Over the life of the program, the Bank would provide a total of
$300 million in financing, of which $60 million would be required for Phase 1 of the Oil
Polluted Land Clean up project’s investments.
The project which is the subject of this ISDS (Large Scale Oil Polluted Land Clean up)
represents Phase I of the oil polluted land clean up component of the Program.
The project would be implemented by the State Oil Company of Azerbaijan (SOCAR)
The objective of this project would be to improve the environmental conditions in the Absheron
Peninsula by increasing SOCAR's capacity for cleaning up oil polluted land by i) developing a
business plan for cleaning up 10,000 hectares of contaminated land; and ii) purchasing soilcleaning equipment which will substantially increase SOCAR's capacity to clean oil sludge and
(iii) building and enhancing SOCAR’s own capabilities for technical remediation techniques and
process management via a TA component.
D. Project location (if known)
The project is located on Absheron Peninsula, which today is heavily and extensively polluted
due to nearly 150 years of oil production that has left some 10,000 hectares of oil-contaminated
land. Oil production has been intense in many sectors of the Apsheron peninsula, where
production facilities are often close to and entwined with residential, recreational and agricultural
areas.
The project focuses on oil fields within the main urban centers on Absheron, especially the
vicinity of the Capital City of Baku on the southern coast. There are three areas where extremely
high pollution levels, soil and contamination type, the proximity of settlements and infrastructure
and the pressure on and potential values of land create favorable conditions for large scale
project implementation. These areas are Bibi Heybat just south of the center of Baku and the
areas Qala and Mashtaga-Buzovna to the West and Northwest of the capital.
E. Borrower’s Institutional Capacity for Safeguard Policies [from PCN]
The Presidential Decree and approved ESP signals high level commitment and has stimulated
action by key ministries and agencies. It focuses primarily on the Absheron Peninsula, although
some activities are national in scope. It is a comprehensive plan involving both cleanup/remediation and forward-looking environmental management. It addresses legacy
contamination and on-going pollution, as well as hazardous and non-hazardous waste.
For this project the implementing agency is the sate oil company SOCAR, which has recently
created a task force within its environmental department dedicated explicitly to the remediation
of past environmental liabilities. SOCAR has also created and environmental contractor, EKOL,
to accomplish remediation and restoration works. The task force consists of engineers and
specialists which are familiar with oil production and its environmental issues and are currently
being trained in modern remediation approaches and management. They have secure technical
support by experienced national and international Consultants which are providing analytical,
design and planning services and technical assistance.
The project, through several TA components, envisages further strengthening of SOCAR’s
capacity for environmental and social due diligence and safeguards implementation during
project implementation.
F. Environmental and Social Safeguards Specialists
Mr Frank Van Woerden (ECSSD)
Ms Gulana Enar Hajiyeva (ECSSD)
Mr Satoshi Ishihara (ECSSD)
Mr Bakhtiyar Karimov (ECSSD)
Mr Wolfhart Pohl (ECSSD)
II. SAFEGUARD POLICIES THAT MIGHT APPLY
Safeguard Policies Triggered
Yes
No
TBD
Environmental Assessment (OP/BP 4.01)
X
The Large Scale Oil Polluted Land Clean-up Project /component has been preliminarily
classified as Category ‘B’. The project involves the purchase of soil cleaning equipment for
remediation of oil contaminated land. While provision of the equipment is not high risk per se,
the Safeguard approach must address the ways in which it is expected that SOCAR will use the
equipment. SOCAR has prepared a feasibility study, an EIA, EMP, EMF and an Operation Plan
for cleaning up of oil-contaminated land. The environmental documented so far appears to
conform to good international practice and can be considered acceptable to Bank standards. Both
EMF and an EMP have been reviewed by the team’s environmental specialist and found
satisfactory regarding EA safeguard requirements. Key issues that are be addressed include the
approach to prioritization of sites for clean-up, the nature and level of site investigations to be
undertaken prior to beginning excavations (including identification of both surface and subsurface hazards), disposal of residue from soil cleaning, and categorization of levels to which
given parcels would be cleaned (i.e. for what types of subsequent usage or development), as well
as other aspects which directly influence cleanup costs and risks. Two consultations at the
National level will have been conducted before appraisal on the general project as well as the
EIA/EMP/EMF.
Natural Habitats (OP/BP 4.04)
X
Forests (OP/BP 4.36)
X
Pest Management (OP 4.09)
X
Physical Cultural Resources (OP/BP 4.11)
X
Indigenous Peoples (OP/BP 4.10)
X
Involuntary Resettlement (OP/BP 4.12)
X
As some people have built houses close to or sometimes on oil-polluted land, cleaning up this
land would require relocation of the residents. The Government and SOCAR have clearly
agreed that no clean up activity will be carried out on land where people would need to be
resettled. This is consistent with SOCAR’s recent practice where it has focused on vacant land,
not areas where people would need to be resettled. Therefore the Policy is not triggered.
Safety of Dams (OP/BP 4.37)
X
Projects on International Waterways (OP/BP 7.50)
X
Projects in Disputed Areas (OP/BP 7.60)
X
Environmental Category: B - Partial Assessment
III. SAFEGUARD PREPARATION PLAN
A. Target date for the Quality Enhancement Review (QER), at which time the PAD-stage ISDS
would be prepared: 02/06/2008
B. For simple projects that will not require a QER, the target date for preparing the PAD-stage
ISDS: N/A
C. Time frame for launching and completing the safeguard-related studies that may be needed.
The specific studies and their timing1 should be specified in the PAD-stage ISDS.
One consultation at the National level has been be carried out already and a second one is
planned before appraisal on EIA/EMF and EMP, which have been made as final draft
versions. Documents for disclosure before appraisal: EIA, EMP, EMF.
IV. APPROVALS
Signed and submitted by:
Task Team Leader:
Approved by:
Regional Safeguards Coordinator:
Comments:
Sector Manager:
Comments:
1
Mr Aniruddha Dasgupta
02/12/2008
Ms Agnes I. Kiss
02/13/2008
Mr Wael Zakout
02/14/2008
Reminder: The Bank's Disclosure Policy requires that safeguard-related documents be disclosed before appraisal (i) at the
InfoShop and (ii) in-country, at publicly accessible locations and in a form and language that are accessible to potentially affected
persons.