Armenia Local Economy and Infrastructure Development Project Report

8Environmental Baseline and Issues in Target Regions

Currently there are several environmental issues in Armenia. The most significant of them are water and air pollution, deforestation, land degradation, landscape changes, threats to biodiversity, high risk of natural disasters, and consequences of climate change. Continuing mismanagement and ignoring of appropriate environmental mitigation measures in certain sectors of Armenia economy (such as mining sector, agriculture, energy), as well as some other problems left from the Soviet period, may result in devastating impacts over the long term. All these problems are to various extents presented in Project regions (Lori, Kotayk, Ararat, Vayots Dzor, Syunik), as described below. The Armenia Development Strategy 2025, the government’s long-term development vision, sets measures to stimulate economic growth which should be combined with measures to reduce the associated environmental risks as much as possible. One of the LEID Project goals is to facilitate, support and demonstrate proper implementation of these measures in selected regions.

Forests, protected areas, biodiversity

Biodiversity conservation in Armenia is possible predominantly inside the natural protected areas. Some 60-70% of the species of the flora and fauna inhabiting the country is concentrated in the territories of protected areas, including the overwhelming majority of endemic, rare, threatened and endangered species. At present, protected areas comprise 387,054 ha (13.1%) of the total territory of Armenia. Analyses undertaken for the preparation of the National Report on the State of Environment covering period of 2009-2013 show that during these years no additional loss of biodiversity and no change in the status of the existing threats to it occurred due to anthropogenic impacts. However significant damage to the environment had been inflicted earlier, peaking during the extreme economic hardship in the post-Soviet decade. Forest ecosystems, pastures and Lake Sevan came under strongest blow. Loss of biodiversity and disruption of natural balance in these ecosystems (deforestation and forest degradation, depleting fish stocks in Lake Sevan, loss of productivity and erosion of pastures) had a variety of ecological and social consequences, including food security, incomes, and living standards in general.

During 1991-2001, about 35% of forests were destroyed. Illegal felling for fuel wood and timber significantly rarefied many hectares of forested slopes. With the improved heating options (particularly ongoing gasification), felling decreased significantly. Hover biodiversity is still under threat due to various anthropogenic impacts causing changes in natural habitats, ecosystems and composition of species due to pollution, extinction of individual species and overuse of bio-resources. Protection of natural ecosystems in “Arzakan and Meghradzor”, “Jack Pine” and “Hankavan” reserves located in Kotayk marz is insufficient. In forest areas of Lori region there are issues of washing out of black topsoil and extreme reduction of regeneration as a result of deforestation, still continuing illegal logging and grazing in forest areas, forest fires. In Ararat region, to protect Khosrov Forest State Reserve, in 2011-2013 a number of environmental protection programs were carried out. Conservation efforts were improved, the eco-tourism infrastructure was developed (construction of recreational areas for visitors, improvement of routes, acquisition of property and equipment, etc., during the last 3 years the illegal logging, hunting and cattle grazing reduced significantly. In 2013, the drainage system located in proximity to the Khor Virap State Reserve (for preservation of aquatic flora and fauna) was filled with untreated residential sewage and industrial hazardous waste. Some measures have been taken to restrict emissions but require more attention/efforts and investment. At Goravan State Nature Reserve (conservation of biodiversity of sandy desert and typical psamofil vegetation), located on the left bank of the river Vedi, the ecosystem was damaged due to overgrazing and continuous extraction of sand. The Lori, Kotayk and Syunikregions relatively rich in forests are in controversial situation due to also being rich in mineral resources. The development of mines and extraction of resources is considered as positive for economic growth and employment, but causes range of environmental problems. The serious changes in approaches and planning are required to maintain balance with economic interests and preserve the environment. In Lori region, within the framework of Teghut copper-molybdenum mine exploitation program, Teghut CJSC developed a plan for the restoration of forests in the vicinity of Teghut village and coordinated its implementation with the ministries of Nature Protection and Agriculture. The World Bank studies in 2013-2014 aimed to provide a practical and user-oriented overview of the environmental and social aspects associated with the mining industry. The working papers produced as a result of the studies contain recommendations on active use of SEA and cumulative impact assessment as effective tools for planning and decision-making in mining sector.
Land resources and soils

Soil protection problems in the target regions are very important and require innovative approaches. For years the defined cattle grazing regulations and norms (restrictions on steep slopes, timing, etc.) are not taken into account when allocating lands for pastures, resulting in soil degradation that has a direct impact on the biodiversity of the area. In Kotayk marz climate conditions and small distance to Yerevan significantly promote illegal extraction and transportation of the productive layers of soil (especially from Hrazdan, Fantarn, Jraber, Kaputan, Kotayk and Nurnus communities). Despite some efforts of local government and territorial environmental unit, the issue still remains unregulated and doesn’t comply with the requirements of the Decree #1693 (08.09.11) of RA Government “On use of productive layer of soil”. Agricultural lands are subjected to huge harm by illegal dumpsites, which in addition to municipal and construction waste contain hazardous waste (asbestos, car scrap, batteries and oil, pesticides, etc.), eventually contaminating ground water. Due to reinstatement measures implemented in remote pastures of the Ararat region in 2011-2013 at the area of 70,000ha, erosion-affected area has decreased by almost 18,100ha. After the exploitation of the mines, the re-cultivation (soil rehabilitation) is extremely important for preservation of the land.

According to the National Action Plan to Combat Desertification in Armenia, about 24,353 km² of the country’s territory (81.9%, excluding the surface water body mirrors), are to some extent prone to desertification: 26.8% of the total territory of Armenia faces a treat of extremely severe desertification; 26.4%, - severe desertification; 19.8% - moderate desertification; and 8.8% - slight desertification. In the period between 1999 and 2009, the area of arable land in Armenia shrunk by 166,600 ha, meadows - by 15,600 ha and pastures - by 136,500 ha.
Water resources

In 2014, the surface water quality monitoring was carried out in 40 rivers by Armenian EcoMonitoring. In Akhtala River the water is of a bad quality due to zinc, copper, cadmium, manganese, iron, sulfate and depending notes. In Shnogh River the water is of a bad quality due to molybdenum. In Karkatchun River the water is of a bad quality due to nitrite ion. In some parts of Metsamor River the water is of a bad quality, due to ammonium ions and phosphate ions. The waters of Hrazdan and Getar Rivers are of a bad quality due to nitrates, ammonium ions and phosphate ions. The water of Voghj River is of a bad quality, mainly caused by heavy metals, which are the consequence of mining industry activities. The potable water sources of settlements located in mountains and forests are in especially desolate state, which can be polluted any time by different harmful substances. In Lori Marz major polluters of Debed River include large industrial enterprises: Vanadzor chemical complex, Alaverdi copper smelter, Akhtala minerals processing plant and other large and medium industrial enterprises. Currently Vanadzor chemical complex almost does not work and virtually there are almost no emissions to water basin. Alaverdi copper smelter operates with internal water circulation principle, which aims at reducing water losses and reduce outflow of heavy metals to water basin. High concentrations of nitrates and ammonium are mostly registered below urban settlements, which is due to sewage impact. In Kotayk marz, due to depreciation of sewage system in Hrazdan, several accidents happened, as a result of which the waste water accessed storm-water ditches and discharged to Hrazdan River, and then into Akhpara reservoir. One of the priority issues of environmental protection of waters remains organization of wastewater treatment and removal activities. Due to absence of treatment plants and failures of sewage system in marz, wastewater flows into Dalar, Tsaghkadzor, Marmarik, Hrazdan rivers, reaching Akhpara reservoir. After installation of local treatment plants there is still need for construction of new powerful treatment plant in Hrazdan region, while simultaneously reconstructing Hankavan and Tsaghkadzor sewage collectors.

Many regions of Armenia are prone to floods and mudflows. Given the increased occurrence of the extreme weather, and changing patterns of the annual temperature and precipitation, cases of floods and mudflows have increased in the country during the last decade. Damage caused by mudflows in 2007-2015 exceeds 5.6 billion AMD and the damage caused by flooding for the same period amounts up to 13 billion AMD.
Over 95 percent of Armenia’s municipal water service depends on the groundwater resource and its sustainability is of a tremendous national importance. However data on Armenia’s groundwater resources has been collected since 1990. Further research is strongly recommended to establish the vulnerability of Armenia’s groundwater reserves to the effects of climate change. It is anticipated that over the long term, Armenia’s increasingly scarce surface waters will affect groundwater availability as well. As surface water flow decreases by 24 percent over the next century due to climate change, the recharge of underground reservoirs from surface water will also decrease, while some former users of surface water will switch to groundwater withdrawals. As a result, water shortages may impact human welfare – demand for groundwater will increase while supplies of surface water, and eventually of groundwater, will decrease. At the same time, demand for all categories of water will be rising with higher temperatures and more rapid evaporation. The health consequences of reduced water supplies for drinking and sanitation have the potential to be very serious.
Air pollution

At present, RoA state registration and regulation covers 1301 entities with over 3850 sources of emissions into the atmosphere. This accounts for about 96% of emissions from stationary sources across the country, which are subjected to the state control. In terms of air pollution the following general environmental issues are identified in target marzes: absence or lack of abatement measures (filters) at industrial enterprises, burning the municipal waste at illegal dumpsites, lack of monitoring devices, lack of specialists, etc. In Lori Marz the large industrial polluters include Vanadzor chemical plant, Alaverdi copper smelter and Akhtala minerals processing plant. Main measures of pollution control include reduction of emissions, installation of abatement measures (filters), and increasing forested/green zones. The air basin of Kotayk marz is mostly polluted by the emissions of industrial organizations, asphalt plants and vehicles. The list of organizations that have harmful effect on air approved by Order N 2-A of the Minister of Nature Protection of RA of January 8, 2014, includes 161 organizations operating in Kotayk marz, which were provided with quota/permission for emission of polluting substance into atmosphere from stationary sources. As a result of monitoring of air pollution within the list of most polluted settlements of the RA, Hrazdan stands out among Kotayk marz cities, taking into consideration the presence of Hrazdan power station and cement plant. The Ararat marz air basin is polluted mostly due to vehicles emissions, local industry and emissions of 156 organizations operating in Armavir, near to Ararat marz, out of which only 59 have quota/permits for atmospheric emissions. For years, particularly the most hazardous emissions to the atmosphere that have been dangerous for the environment were Ararat cement plant and asbestos slates production, as well as Zod gold extraction plant. During 2011-2013, the modern filters installed at Ararat cement factory, cement grinding and new dust catching equipment installed at additives workshop, as well as monitoring and measuring devices installed to monitor Zod gold extraction plant tailing dam structure, increasing the tailing dam wall height and pipe recovery, have, substantially, by 50% reduced harmful substances emissions to atmosphere. Other factors contributing to ambient air pollution are toxic emissions from illegal dumpsites.

Waste Management

During the transition period from centralized to de-centralized provision of services, non-payment for services became common. Coupled with insufficient enforcement to collect user fees, it has limited the volume and reduced the quality of services provided to the population. Thus, solid waste management has become one of the problem services that chronically suffers from lack of funding and has remained of low quality in Armenia since the early 1990s. Although waste collection has improved recently in Yerevan, it is still a very common practice to dump waste in unauthorized/illegal dumpsites including riverbanks, and to burn the waste openly. The disposal of hazardous medical waste is of special concern. For instance in Lori Marz hazardous waste is mostly represented by overdue medication. The annual volume of waste produced by 11 healthcare companies (hospitals) providing stationery services in Lori marz is about 5.5 tons. The integrated waste management plan has been developed and for the Lori marz but not fully approved. There is a plan for construction of a new waste treatment plant In Vanadzor (with separation and, recycling). The issue of hazardous waste is Alaverdi arsenic warehouse. Kotayk Marz has 4 large official landfill operated by Hrazdan, Abovyan, Yeghvard and Charentsavan communities, with total surface of about 35 ha. At the same time these landfills are used by several neighboring communities. Unauthorized dumpsites are still used by Byureghavan city and several rural communities. In 2015-2016 a centralized landfill will be constructed in Kotayk marz using the loan of European Bank for Reconstruction and Development and EU grant.

Existing/current impacts on environment from tourism development

In target regions these impacts are mostly related to insufficient scale of investments into resort infrastructure, when various single private investments are limited to the needs of one specific hotel, restaurant or guest-house and cannot cover rehabilitation of the entire resort infrastructure (roads, sewage collectors, treatment facilities, etc.) In these circumstances the local (sometimes illegal) solutions for waste or wastewater management/disposal directly affect the quality of environment. Tourism development without planning and management causes loss of ecological resources and biodiversity in extremely sensitive areas due to greater access to remote destinations, increased tourist numbers, uncontrolled tourist behavior, introduced external species, and disturbance of habitats. Tourists create alternate routes, contributing to soil impaction, erosion, and plant damage. Most aggressive tourist sectors, like trophy hunting, illegal poaching or other misbehavior of tourists are the reason for biodiversity losses. Another set of impacts arises from tourism related/induced development and construction activities without proper planning and management, which might be intensive and create serious pressures: damage to fragile ecosystems; extensive consumption of high quality land, fresh water and inert materials; production of non-biodegradable solid waste; etc.

The purpose of LEID Project is to catalyze tourism infrastructure development and at the same time to demonstrate approaches and methodologies for sustainable tourism development, planning and management using World Bank’s safeguard policies, as well as world best practice. The LEID subprojects should serve as pilots for setting quality standard for future responsible development of local economies and tourism infrastructure in target regions.