GAS PROCESSING PLANT AND

PETROCHEMICAL COMPLEX
PROJECT
ENVIRONMENTAL AND SOCIAL
IMPACT ASSESSMENT
NON-TECHNICAL SUMMARY
(NTS)

SOCAR GPC LLC

October, 2018
 GAS PROCESSING PLANT AND PETROCHEMICAL COMPLEX PROJECT
ESIA REPORT NON-TECHNICAL SUMMARY

Table of Contents

1 INTRODUCTION .................................................................................................................................................... 1

2 PROJECT DESCRIPTION .................................................................................................................................... 2

2.1 Overview ................................................................................................................................................... 2

2.2 Project Location ..................................................................................................................................... 3

2.3 Project Components .............................................................................................................................. 3

3 OBJECTIVES AND COMPONENTS OF THE ESIA ........................................................................................ 4

4 ENVIRONMENTAL AND SOCIAL IMPACT ASSESSMENT METHODOLOGY......................................... 6

5 ANALYSIS OF PROJECT ALTERNATIVES .................................................................................................... 7

6 STAKEHOLDER ENGAGEMENT........................................................................................................................ 8

6.1 Stakeholder Identification................................................................................................................... 8

6.2 Stakeholder Management Activities Realised .............................................................................. 9

6.2.1 Key informant interviews ............................................................................................................... 9

6.2.2 Focus groups discussions ............................................................................................................. 9

7 IMPACT SCREENING AND DEFINITION OF THE VALUED ENVIRONMENTAL AND SOCIAL

COMPONENTS ..................................................................................................................................................... 10

7.1 Identification of the Project Actions.............................................................................................. 10

7.2 Identification of the Components ................................................................................................... 11

7.3 Identification of the Impact Factors .............................................................................................. 12

8 ENVIRONMENTAL, BIOLOGICAL AND SOCIOECONOMIC BASELINE ................................................ 13

8.1 Study Area .............................................................................................................................................. 13

8.2 Methods ................................................................................................................................................... 16

9 IMPACT ASSESSMENT ..................................................................................................................................... 17

10 ENVIRONMENTAL AND SOCIAL MANAGEMENT SYSTEM AND PLAN ............................................... 20

10.1 Management Plan Structure ............................................................................................................. 20

10.2 Overall Environmental and Social Management Mechanism ................................................. 20

10.3 Environmental and Social Management Plan .............................................................................. 21

10.4 Labour Issues and Health & Safety Management Plan............................................................ 22

11 CONTACT DETAILS ........................................................................................................................................... 22

i
 GAS PROCESSING PLANT AND PETROCHEMICAL COMPLEX PROJECT
ESIA REPORT NON-TECHNICAL SUMMARY

1 INTRODUCTION
SOCAR GPC Gas Processing Plant and Petrochemical Complex Project (the Project) has completed the
Environmental and Social Impact Assessment (ESIA) process. This document presents the non-technical
summary of the ESIA report including the main data collection, impact assessment findings and stakeholder
engagement process.

The aim of the Project is to process natural gas and produce polymer in the petrochemical plant.

The Project will be constructed in the vicinity of Sangachal, Garadagh, Azerbaijan (40 km from Baku).

Figure 1: Location of the Project

October, 2018
Project No. 1662656 1
 GAS PROCESSING PLANT AND PETROCHEMICAL COMPLEX PROJECT
ESIA REPORT NON-TECHNICAL SUMMARY

2 PROJECT DESCRIPTION

2.1 Overview

The Project aims to purify natural gas to a higher standard for the national natural gas network and to make
use of the impurities as different forms of Product. The main input is the flow of natural gas, and the outputs
are treated natural gas, benzene-1, hexene-1, propylene, gasoline, linear low-density polyethylene, and
high-density polyethylene.

The Project is composed of a Gas Processing Plant (GPP), which is then followed by a Steam Cracking
Unit, whose streams flow into a Butene-1 Unit and a Hexene-1 Unit and a Polymer Plant.

The Project is to be located near Sangachal in an area of well-established industrial facilities.

The operational phase planned start-up date is January 2022.

The associated facilities for the Project are defined to include;

1. Temporary Construction Facility

2. Wastewater Discharge Pipeline
3. Railways and roads to be constructed for access and material supply and product transport
4. Power and water supply lines to be constructed.

The plant facilities and the associated facilities is presented below.

Figure 2: Project and the Associated Facilities.

October, 2018
Project No. 1662656 2
 GAS PROCESSING PLANT AND PETROCHEMICAL COMPLEX PROJECT
ESIA REPORT NON-TECHNICAL SUMMARY

2.2 Project Location

The proposed territory for construction of the project is located in the eastern part of the Republic of
Azerbaijan, in the southeast of the Apsheron Peninsula in the Garadagh District, at a distance of about 6
km from the shoreline of the Caspian Sea and about 56 km in south-west direction from Baku. The terrain
is mainly characterized by plains, located near the Caspian Sea and low mountains. Large empty territories
and low fertility of lands are strongly influencing factors on land use in the project area, which mainly
stipulate their use for industrial purposes.

The prospective plot of construction occupies 250 ha of the territory, the plot from the south is bordered by
a dirt road leading to Umbaki village, across the road there is a penitentiary institution of the Ministry of
Justice of the Republic of Azerbaijan. In the north of the site there is a cemetery, through the north-eastern
part of the site there is a dirt road leading to stone quarries. There is an abandoned facility (construction)
with an approximate area of 30-35 square meters at south-west part of the project area. From the northeast,
the construction site is crossed by numerous transmission lines; along a road Sangachal-Umbaki there is
a small-diameter water pipeline. In the northern direction from the project area, there is a plant for the
production of NORM cement, in the eastern direction is Sangachal terminal, and on the south direction the
penitentiary institution and the Azimkend village.

2.3 Project Components

The Project involves the construction of the following elements:

 Gas Processing Plant (GPP) - The capacity has been designed as 10 bcma. GPP will process natural
gas, remove CO2 and other toxic components, extract petrochemical feedstock (around 4-5% of natural
gas) and revert the remaining back to the national gas grid pure methane in accordance with best
environmental standards.

 Polymer Plant (PP) – It is expected that it will produce around 600 kta of polyethylene and 120 kta of
propylene. Propylene will be shipped to the SOCAR Polymer facility in Sumgait and further processed to
polypropylene. According to market studies Turkey, Europe, China are the target markets, with Turkey
prevailing as a growing market. SOCAR will be able to benefit from the existing distribution network of the
Petkim assets in Turkey.

The Polymer Plant will consist of:

 Steam Cracker with a capacity of 610 kta, based on C2+ feedstock from the gas processing plant,
which will feed Ethylene to the following units:

 An LLDPE/HDPE plant of 600 kta

 A Butene - 1 Unit: 32 kta

 A Hexene-1 unit: 21 kta

 The Steam cracker will also produce 120 kta of propylene.

 Other utility and offsite facilities will serve the main production facilities above.

October, 2018
Project No. 1662656 3
 GAS PROCESSING PLANT AND PETROCHEMICAL COMPLEX PROJECT
ESIA REPORT NON-TECHNICAL SUMMARY

3 OBJECTIVES AND COMPONENTS OF THE ESIA

The Project has been categorized as Category A according to IFC standards and as Category 1 according
to Azerbaijan MoENR requirements considering the extent of the potential environmental and social
impacts of the Project.
An ESIA evaluates a project's potential environmental risks and impacts in its area of influence; examines
project alternatives; identifies ways of improving project selection, siting, planning, design, and
implementation by preventing, minimizing, mitigating, or compensating for adverse environmental impacts
and enhancing positive impacts; and includes the process of mitigating and managing adverse
environmental impacts throughout project implementation.

ESIA takes into account the natural environment (air, water, land and biodiversity), community health and
safety, and social aspects (including involuntary resettlement, indigenous peoples and cultural heritage).
ESIA considers natural and social aspects in an integrated way.

It also takes into account the variations in project and country conditions; the findings of country
environmental studies; national environmental action plans; the country's overall policy framework and
national legislation; the project sponsor’s capabilities related to the environment and social aspects, and
obligations of the country, pertaining to project activities, under relevant international environmental treaties
and agreements.

This ESIA for the Project is guided by both Azerbaijan environmental and social laws and regulations, and
international standards such as Equator Principles, IFC Performance Standards and EHS Guidelines
relevant to the Project. IFC Performance Standard 1 (IFC 2012) lists the overall objectives for an ESIA,
including:

• To identify and evaluate environmental and social risks and impacts of the project.
• To adopt a mitigation hierarchy to anticipate and avoid, or where avoidance is not possible, minimize
and, where residual impacts remain, compensate/offset for risks and impacts to workers, Affected
Communities, and the environment.
• To promote improved environmental and social performance of clients through the effective use of
management systems.
• To ensure that grievances from Affected Communities and external communications from other
stakeholders are responded to and managed appropriately.
• To promote and provide means for adequate engagement with Affected Communities throughout
the project cycle on issues that could potentially affect them and to ensure that relevant
environmental and social information is disclosed and disseminated.

October, 2018
Project No. 1662656 4
 GAS PROCESSING PLANT AND PETROCHEMICAL COMPLEX PROJECT
ESIA REPORT NON-TECHNICAL SUMMARY

Main components of the assessment include:

• the potential environmental and social impacts of the Project throughout the full development cycle
– construction, operation, closure and post-closure;
• a stakeholder engagement plan to ensure that local communities and other key stakeholders are
informed of the Project and have an opportunity to express their opinions concerning the Project;
• proposed mitigation activities to minimize adverse environmental impacts;
• the nature and significance of residual impacts (those adverse impacts that occur after mitigation
has been applied) and ongoing monitoring and environmental management plans to address these;
• a social management plan to maximize benefits to the local community and promote a sustainable
economy.

October, 2018
Project No. 1662656 5
 GAS PROCESSING PLANT AND PETROCHEMICAL COMPLEX PROJECT
ESIA REPORT NON-TECHNICAL SUMMARY

4 ENVIRONMENTAL AND SOCIAL IMPACT ASSESSMENT

METHODOLOGY
Impact assessment was performed for key issues for each ESIA component (discipline). The common
impact assessment methodology consists of five main steps:

1. identification of Project activities that could contribute to environmental or social change;

2. evaluation of the potential effects;
3. description of mitigations for potential effects;
4. analysis and characterization of residual effects; and
5. as necessary, identification of monitoring to evaluate and track performance.

The impact assessment criteria have been developed separately for each discipline. The assessment
criteria in general are:

• Type of impact (positive – negative)

• Magnitude of the impact (negligible – low – medium – high; different definitions for each discipline)
• Geographical distribution of the impact (local / Project Site) - regional / Aliağa – larger than regional)
• Duration of the impact (short term / construction phase – midterm / operation phase – long term /
post-operation)
• Reversibility of the impact (yes or no)
• Frequency of the impact (low – medium – high; different definitions for each discipline)

The ESIA used the following tools and procedures to analyse and address potential effects:

• quantitative and qualitative information on the existing baseline environmental and socioeconomic
conditions;
• predictive tools (calculations, models) and methods to quantitatively and qualitatively describe
future environmental and socioeconomic conditions;
• quantitative and qualitative evaluation of the environmental consequence of potential effects,
including reference to management objectives, baseline conditions and the views of the proponent
and stakeholders; and
• characterization of potential residual effects after mitigation and their consequences for people and
the environment.

October, 2018
Project No. 1662656 6
 GAS PROCESSING PLANT AND PETROCHEMICAL COMPLEX PROJECT
ESIA REPORT NON-TECHNICAL SUMMARY

5 ANALYSIS OF PROJECT ALTERNATIVES

Alternatives for the project have been analysed focusing on the following topics:

 No-project

 Location selection

 Technology selection

Overall, the Project is needed because it will greatly benefit the Republic of Azerbaijan as it will purify the
natural gas that is sent to the distribution network and derive more high value products from organic carbon
extractables. Thus, not having the Project is not a reasonable option.

In terms of location, there were three separate areas that were considered for the Project. These were the
following:

1) The City of Sumgait

2) Near Sangachal

3) In the Qaradagh Region (near Baku), location northeast of the existing GPP

Of these three areas, the second was chosen.

All of the aforementioned locations were potential Project Site locations since they have played host to
other infrastructure investments in the energy sector and thus have a foundation upon which the Project
can be laid. Sumgait is also the location of the SOCAR Polymer Plant, to where at least some of the polymer
hydrocarbon extractables are to be sold and shipped. One of the locations in Qaradagh is located next to
the SOCAR Methanol plant and the Sangachal location is close to Sangachal Terminal where necessary
infrastructure for the project is already present in the area.

Selection of the technology to be used for the processes was based on which processes would extract the
most high value hydrocarbon extractables. These technologies varied according to the different project
components.

October, 2018
Project No. 1662656 7
 GAS PROCESSING PLANT AND PETROCHEMICAL COMPLEX PROJECT
ESIA REPORT NON-TECHNICAL SUMMARY

6 STAKEHOLDER ENGAGEMENT
A specific Stakeholder Engagement Plan (SEP) has been prepared. The overall objectives of the
Stakeholder Engagement Plan are the following:

 Continuously informing the local community about the Project-related development activities;

 Ensuring that the local community is informed about the hazards associated with construction,
operation activities of the Project and mitigation measures implemented by SOCAR GPC to reduce
impacts where possible;

 Minimizing potential disputes between Contractor’s and Subcontractors’ and the local community;

 Incorporating local knowledge during the entire Project life cycle, by taking into account bottom up
information and feedback provided by local communities; and

 Timely and effectively responding to community concerns regarding the issues such as employment
of the local workforce reserve in the construction and operation phases, disruption to daily activities,
safety issues, disturbances due to noise or dust, and other environmental and social issues.

Moreover, the overall objective of the SEP is to explain how SOCAR GPC will engage with stakeholders
through the course of the Project. Stakeholder engagement is a key activity within projects such as the
present one, because it creates an open communication channel with stakeholders, it ensures that
stakeholders understand significant impacts of the project and it helps the sponsor address local
expectations and incorporate feedback in the project design, overall fostering the achievement of a sound
and comprehensive project. A Grievance Mechanism will be set up for communities and individuals to
formally communicate their concerns, complaints and grievances to the company and facilitate resolutions
that are mutually acceptable by the parties.

The SEP is a working document that will be revised during the development of the Project.

6.1 Stakeholder Identification

Stakeholders are individuals or groups who can affect, or are affected by, or have a legitimate interest in
the Project results and performance. The Project stakeholders are recorded as the following categories;

 Governmental authorities at the national, regional and local levels;

 Multi-national and international organizations (United Nations, World Bank Group, bilateral donors,
etc.);

 Non-commercial, non-governmental and public organizations at the international, national, regional

and local levels,

 Interest groups, such as universities and their foundations, cooperatives, local business
establishments, business associations, chambers of commerce and others (i.e., labor, youth, religious,
businesses, etc.);

 Local communities;

 Local businesses and potential Project contractors and suppliers;

 Project, contractor and subcontractor employees; and

 Media.

October, 2018
Project No. 1662656 8
 GAS PROCESSING PLANT AND PETROCHEMICAL COMPLEX PROJECT
ESIA REPORT NON-TECHNICAL SUMMARY

6.2 Stakeholder Management Activities Realised

Considering the social context and the nature of the project, qualitative baseline information was collected
by using two different systems: key informant interviews and focus group discussions. During these
interviews and discussions engagement with the stakeholder was also performed. The concerns and
question of the attendees were recorded.

A public consultation meeting on 04th of May 2018 was performed in Sangachal.

6.2.1 Key informant interviews

Key informants are people with specific sector and/or geographic expertise. Interviews that were conducted
during the period 3-8th of October 2017 aimed to collect information on the person’s area of expertise, in
order to gather an in-depth picture on specific topics that are considered relevant to describe the social
context. Key informant interviews were performed by consulting up to 30 key informants. They were
selected on the basis of their legitimacy and authority in the Study area; on their significance in delivering
services to the local population or their role in the area’s economic development; and on their knowledge
on a specific topic in the local context.

6.2.2 Focus groups discussions

Focus Group Discussions aimed to understand perceptions among a particular group of stakeholders (i.e.,
women, unemployed, vulnerable groups, residents of one village, etc.). They were conducted through a
semi-structured approach that aims to focus the discussion over specific issues but also allows space for
a more informal exchange of opinions.

October, 2018
Project No. 1662656 9
 GAS PROCESSING PLANT AND PETROCHEMICAL COMPLEX PROJECT
ESIA REPORT NON-TECHNICAL SUMMARY

7 IMPACT SCREENING AND DEFINITION OF THE VALUED

ENVIRONMENTAL AND SOCIAL COMPONENTS

7.1 Identification of the Project Actions

The activities or Project actions that could potentially contribute to environmental or social changes during
the construction, commissioning, operational and decommissioning phases have been identified from the
project description and from the documents provided by SOCAR GPC. The decommissioning phase will be
analysed only qualitatively since the design life-span of the Project is 25 years and there are not enough
details for an in-depth analysis.

It has to be highlighted that the ESIA process considers the impacts after the handover of the site to SOCAR
GPC, inclusive of the site clearing and soil remediation. Project activities and actions to be taken into
consideration have been listed according to the phase of the Project, as follows.

Construction Phase

 Surface levelling and grading;

 Temporary stockpiling of the material;

 Construction of wastewater discharge pipeline, and other associated facilities;

 Transport of construction material;

 Construction of the plants and facilities;

 Disposal of the waste that is derived from construction.

 Land use by temporary construction facility (TCF)

 demolition of existing abandoned structures and remediation activities (if needed);

Commissioning and Operational Phase

 Retrenchment of construction workers (at peak 3000 workers will be employed);

 Deconstruction of temporary construction facility;

 Presence of the GPP and PP plants and associated facilities;

 Operation of the aforementioned plants;

 Consumption of water and production and disposal of domestic wastewater, industrial

wastewater, and surface water runoff;

 Production and disposal of various solid wastes (including waste polymer and waste
adsorbents in addition to solid domestic wastes); and

 Transportation of the raw materials and products;

Decommissioning Phase

 Potential remediation activities, if needed, before sale or lease of the property; and

 Disposal of potential demolition waste.

October, 2018
Project No. 1662656 10
 GAS PROCESSING PLANT AND PETROCHEMICAL COMPLEX PROJECT
ESIA REPORT NON-TECHNICAL SUMMARY

7.2 Identification of the Components

After the identification of the Project actions, in order to identify the components potentially impacted by the
project actions, the following components were identified in the Scoping phase as potentially impacted
(negatively or positively) during the construction or the operation phases of the Project.
Physical components:

 climate and meteorology;

 air quality;

 noise and vibration;

 hydrogeology and groundwater quality;

 geology and geomorphology;

 soil and subsoil;

 hydrology and surface water quality; and

 traffic and infrastructures.

Biological components:

 terrestrial flora (including alien species);

 terrestrial fauna;

 freshwater flora;

 freshwater fauna;

 habitats, ecosystems and biodiversity; and

 protected areas.
Social components:

 demographic profile

 land use;

 employment and socio-economic conditions;

 tensions and conflicts, social maladies and social capital;

 health issues and facilities;

 education issues and facilities;

 cultural heritage and visual aesthetics; and

 ecosystem services.

October, 2018
Project No. 1662656 11
 GAS PROCESSING PLANT AND PETROCHEMICAL COMPLEX PROJECT
ESIA REPORT NON-TECHNICAL SUMMARY

7.3 Identification of the Impact Factors

Activities or Project actions that could potentially contribute to environmental or social changes during the
construction or the operation phase of the Project have been identified through an analysis of the project
documentation.

Project actions during the construction, commissioning operational, and decommissioning phases, could
potential cause impact factors which are able to interfere positively or negatively, in a direct or indirect way,
on the environmental and social components. Based on the components and Project actions previously
listed, the main impact factors that have been identified are listed as follows:

 Hydrological and hydrogeological change,

 Soil removal,

 Increase of artificial land use,

 Changes in the local morphology,

 Vegetation clearing,

 Air pollutants and dust emissions,

 Noise emissions,

 Surface water pollution,

 Sediment pollution,

 Groundwater pollution,

 Emission of noise and/or vibrations,

 Discharge of wastewater,

 Light emission,

 Use of flare,

 Occupation of land,

 Accidental introduction of alien species,

 Demand for workforce,

 Demand for goods and services,

 Demand for housing/accommodation,

 Demand for local infrastructure,

 Damage and destruction of cultural resources,

 Loss of income,

 Land acquisition,

 Increased road and rail traffic, and

 Landscape features alteration.

In order to show the correlation among the Project actions, the impact factors for different phases and the
single components potentially impacted, the following correlation matrices were created.

October, 2018
Project No. 1662656 12
 GAS PROCESSING PLANT AND PETROCHEMICAL COMPLEX PROJECT
ESIA REPORT NON-TECHNICAL SUMMARY

8 ENVIRONMENTAL, BIOLOGICAL AND SOCIOECONOMIC

BASELINE

8.1 Study Area

The Area of Study (AoS) for each component of the Project is defined individually, as these components
all affect or are affected by the Project differently The AoS will serve to collect the data for creating the
baseline as the starting point against which all changes generated by the Project on the aforementioned
components can be compared.

Two study areas are defined;

 The Local Study Area (LSA): For certain cases different LSAs of certain components will
be determined based upon characteristics and their close proximity to the Project as described in
the relevant subsections.

 The Regional Study Area (RSA): the RSAs serve as a reference for comparison of data
collected in the LSA, in order to increase the understanding of the importance and role of the LSA
within a broader context.

The Area of Studies for each component namely physical, biological and social are defined specifically in
the relevant sections of the ESIA.

Figure 3: LSA for Air Quality and Noise

October, 2018
Project No. 1662656 13
 GAS PROCESSING PLANT AND PETROCHEMICAL COMPLEX PROJECT
ESIA REPORT NON-TECHNICAL SUMMARY

Figure 4: LSA for Marine

Figure 5: Location of the Settlements included in the LSA

October, 2018
Project No. 1662656 14
 GAS PROCESSING PLANT AND PETROCHEMICAL COMPLEX PROJECT
ESIA REPORT NON-TECHNICAL SUMMARY

Protected areas and internationally recognized areas within 20 km from the LSA are presented below with
their main characteristics.

The nearest protected areas and their relative distance from the project site is Gobustan National Park:
located at more than 6 km west linear distance from the site;

In addition, two Important Bird Areas (IBAs) are located quite close to the project area. These IBAs are:

 Gobustan area: located at about 3 km to the south west;

 Sangachal Bay: located within the LSA;

 Sahil settlement - Shelf factory: 13 km to the east;

Figure 6: Protected and Internationally Recognized Areas within 50 km From the Project

October, 2018
Project No. 1662656 15
 GAS PROCESSING PLANT AND PETROCHEMICAL COMPLEX PROJECT
ESIA REPORT NON-TECHNICAL SUMMARY

8.2 Methods

A review of the physical component sections in national or international ESIA for projects in Azerbaijan has
been carried out. Additional information on pollution, water bodies and soil has been reviewed from a range
of organizations, publications and internet sources that are referenced in the text. Site sampling for the
preparation of this ESIA has not been performed for physical environmental parameters.

The methodology for the preparation of the marine baseline assessment includes the review of the main
documents available in bibliography. The review considered the physical features of the marine RSA area
and was focused, when possible, especially in (or close to) the marine LSA. The review included the
analysis of the scientific and “grey” literature. The latter also included previous ESIA studies in the area of
interest.

The methodology for the preparation of the onshore biological baseline assessment includes the following
steps: literature review, including the review of existing reports and studies prepared for the Project, site
visit, desktop analysis.

The literature review focused on the offshore biological RSA in order to document species and habitat types
potentially present in the study area with particular regard for potential priority biodiversity features and
critical habitats criteria. Scientific literature and “grey” literature was considered, together with previous
ESIA studies, in order to give an overview of the biodiversity present in the area.

The methodology of social baseline assessment includes following steps: desktop researches, field
surveys, key informant interviews and focus group discussions (See Section 6.2.1 and 6.2.2 of the NTS).

October, 2018
Project No. 1662656 16
 GAS PROCESSING PLANT AND PETROCHEMICAL COMPLEX PROJECT
ESIA REPORT NON-TECHNICAL SUMMARY

9 IMPACT ASSESSMENT
The total effects of construction activities on the on-shore physical subcomponents is summarized below
considering the sensitivity of the component, the potential impacts and the application of specific mitigation
measures.

 Climate: negligible;

 Air Quality: low;

 Noise: negligible;

 Geology and geomorphology: low

 Soil: Low-medium

 Hydrology and Surface water Quality: low

 Hydrogeology and groundwater: negligible

 Traffic and Infrastructures: negligible

The total effects of commissioning and operational activities on the on-shore physical subcomponents
is summarized below considering the sensitivity of the component, the potential impacts and the application
of specific mitigation measures.

 Climate: low;

 Air Quality: low;

 Noise: low;

 Geology and geomorphology: negligible

 Soil: negligible

 Hydrology and Surface water Quality: negligible

 Hydrogeology and groundwater: negligible

 Traffic and Infrastructures: negligible

The total effects of construction activities on the off-shore physical subcomponents is summarized
below considering the sensitivity of the component, the potential impacts and the application of specific
mitigation measures.

 Marine sediments: negligible

 Sea water: negligible

The total effects of commissioning and operation on the off-shore physical subcomponents is
summarized below considering the sensitivity of the component, the potential impacts and the application
of specific mitigation measures.

 Seawater: negligible

 Marine sediments: low

 Bottom Morphology: negligible

October, 2018
Project No. 1662656 17
 GAS PROCESSING PLANT AND PETROCHEMICAL COMPLEX PROJECT
ESIA REPORT NON-TECHNICAL SUMMARY

The total effects of construction activities on the on-shore biodiversity subcomponents is summarized
below considering the sensitivity of the component, the potential impacts and the application of specific
mitigation measures:

 terrestrial and freshwater flora: low;

 terrestrial and freshwater fauna: medium-low;

 terrestrial and freshwater habitats and ecosystems: low;

 protected areas: medium-low.

The total effects of operation activities on the on-shore biodiversity subcomponents is summarized
below considering the sensitivity of the component, the potential impacts and the application of specific
mitigation measures:

 terrestrial and freshwater flora: low

 terrestrial and freshwater fauna: medium-low

 terrestrial and freshwater habitats and ecosystems: low

 protected areas: medium-low

The total effects of construction activities off the on-shore biodiversity subcomponents is summarized
below considering the sensitivity of the component, the potential impacts and the application of specific
mitigation measures:

 Marine flora: (Phytoplankton and Seaweeds and seagrasses): low

 Marine fauna: (Zooplankton, Benthic invertebrates, Caspian seal and Fishes): negligible

 Marine habitats and ecosystems: low

The total effects of construction activities off the on-shore biodiversity subcomponents is summarized
below considering the sensitivity of the component, the potential impacts and the application of specific
mitigation measures:

The total effects of construction activities off the on-shore biodiversity subcomponents is summarized
below considering the sensitivity of the component, the potential impacts and the application of specific
mitigation measures:

 Marine flora: (Phytoplankton and Seaweeds and seagrasses): low

 Marine fauna: (Zooplankton, Benthic invertebrates, Caspian seal and Fishes): low

 Marine habitats and ecosystems: low

The total effects of construction activities on the social subcomponents is summarized below considering
the sensitivity of the component, the potential impacts and the application of specific mitigation measures:

 demographics and land use: negligible

 employment and socio-economic conditions: medium (positive)

 tensions and conflicts, social maladies and social capital: low

 health issues and facilities: negligible

 education issues and facilities: negligible

 cultural heritage and visual aesthetics: low

 ecosystem services: low-negligible

October, 2018
Project No. 1662656 18
 GAS PROCESSING PLANT AND PETROCHEMICAL COMPLEX PROJECT
ESIA REPORT NON-TECHNICAL SUMMARY

The total effects of operation activities on the social subcomponents is summarized below considering the
sensitivity of the component, the potential impacts and the application of specific mitigation measures:

 demographics and land use: negligible

 employment and socio-economic conditions: medium (positive)

 tensions and conflicts, social maladies and social capital: low

 health issues and facilities: low-negligible

 education issues and facilities: low (positive)

 cultural heritage and visual aesthetics: medium

 ecosystem services: low

Specific monitoring measure are also planned during construction and operation in order to monitor the
effect of residual impacts.

Possible cumulative impacts are assessed for each environmental and social component through the field
baseline surveys conducted in the project area and surroundings. The impacts are assessed quantitatively.
The assessment highlighted that appropriate mitigation measures allowing to limit the overall impacts to
acceptable levels and no important cumulative impact are expected.

The environmental and social impact assessment results demonstrate that the effect from the project will
be mostly localized in regional scale and therefore will not reach the national boundaries. No abstraction of
water from international waterways is foreseen. Impacts of the project on the Caspian Sea are not expected
to extend to sea portions pertaining to neighbouring countries. In addition, any transboundary impact is not
foreseen from the air emissions generated from the project activities.

October, 2018
Project No. 1662656 19
 GAS PROCESSING PLANT AND PETROCHEMICAL COMPLEX PROJECT
ESIA REPORT NON-TECHNICAL SUMMARY

10 ENVIRONMENTAL AND SOCIAL MANAGEMENT SYSTEM

AND PLAN

10.1 Management Plan Structure

Environmental and Social Management Plan (ESMP) for the Project will be facilitated by Project-specific
Environmental and Social Policies including overall principles towards environment, biodiversity, labour,
health and safety, and public health issues. SOCAR GPC is committed to ensure that the Project:

• complies with all applicable Azerbaijan legislation as well as relevant IFI guidelines provided in the
ESIA;
• implements best engineering and industry practices to minimize potential environmental and social
impacts during the construction, operation and decommissioning phases;
• is executed in compliance with the commitments addressed in the ESIA for the minimization of
potential environmental and social impacts;
• works in accordance with high standards of safety;
• cares for the protection of own employees and public;
• promotes its policies through training, supervision, regular reviews and consultation;
• maximize local socio-economic benefits by maximizing the use of local and regional labour forces;
• engages and communicates with the local community and other stakeholders through a stakeholder
engagement programme.

10.2 Overall Environmental and Social Management

Mechanism
The following overall management mechanism will be established for the Project;

• Organization - Roles and Responsibilities

• Risk Assessment and Risk Register
• Training and Awareness
• Communication of Environmental and Social Issues
• Document and Record Controls
• Corrective Actions
• Inspections and Audits
• Budget

October, 2018
Project No. 1662656 20
 GAS PROCESSING PLANT AND PETROCHEMICAL COMPLEX PROJECT
ESIA REPORT NON-TECHNICAL SUMMARY

10.3 Environmental and Social Management Plan

The project ESIA defined the commitment register of the Project to ensure all the mitigation measures
defined for the project will be in place to manage environmental and social impacts of the project.

The Project will develop several management plans for specific aspects of the plant management during
construction, operation and decomissioning, including but not limited to:

 Construction Environmental and Social Management Plan

 Operation Environmental and Social Management Plan

 Labour Issues and Health & Safety Management Plan

 Waste Management Plan

 Traffic Management Plan

 Recruitment Management Plan

 Compliance Management Procedure

 Waste Management Procedure

 Traffic Management Procedure

 Environmental Emission and Discharge monitoring procedure

 Hazardous Material Handling Procedure

 Resource Consumption and Resource Efficiency Monitoring Procedure

 Supply Change Management Plan

October, 2018
Project No. 1662656 21
 GAS PROCESSING PLANT AND PETROCHEMICAL COMPLEX PROJECT
ESIA REPORT NON-TECHNICAL SUMMARY

10.4 Labour Issues and Health & Safety Management Plan

The Project will prepare a Labour and Health & Safety Management Plan that will ensure the compliance
with applicable Azerbaijan legislation, Equator Principles, IFC Guidelines.

A labour / human resources management system will be established to manage labour rights, security and
health issues. An employee grievance mechanism will be established during construction and operation
phases.

A health and safety management system employing site and work specific health & safety procedures and
instructions will be established. The procedures will include but not be limited to the following issues:

 General Health & Safety Procedures

 Personal Protective Equipment Usage

 Working at Height

 Fall Protection

 Working in Confined Space

 Hot Works

 Electrical Works

 Portable Appliances

 Lock Out Tag Out

 Procedures Related to Working Environment and Industrial Hygiene (noise, vibration, heat, etc)

11 CONTACT DETAILS
SOCAR GPC LLC

http://www.socargpc.az

1/3 Nizami Street, Nizami Plaza, 13rd floor, AZ1000, Baku, Azerbaijan

Phone : +994 12 404 53 30

Fax : +994 12 497 04 36

E-mail : [email protected]

October, 2018
Project No. 1662656 22