The proposed project involves the completion of the construction of a new international passenger terminal, the upgrade of airside facilities and the procurement of new terminal equipment at Zvartnots International Airport in Yerevan, Armenia.
The implementation of the Project is a source for a transition impact through a private ownership support in the sector, demonstration effect in the Caucasus region, transfer of know-how and increase of competition in the regional air transportation.
Armenian International Airports CJSC (the “Concessionaire”), a closed joint stock company incorporated in Armenia and controlled by American International Airports LLC (the “Sponsor”). The Concessionaire has obtained a 30-year concession to manage the operations at the Zvartnots Airport, Yerevan.
USD 20 million equivalent senior loan; parallel financing to be provided by DEG.
USD 62.89 million.
Environmental classification and rationale
Environmental impacts associated with the rehabilitation and upgrading of the existing airport facilities and operation are mainly positive. No runway extension is planned. Any adverse impacts can be readily identified, assessed and mitigated. For the above reasons, the project has been classified B/1 requiring an Environmental Analysis and an Environmental Audit.
Information reviewed during the environmental appraisal
In accordance with the EBRD Environmental Policy, environmental investigations have been undertaken to assess the current environmental status of the site and environmental impacts associated with the Project. The environmental appraisal has been based on the review of the following information:
Environment and Health and Safety Audit Protocol, Zvarnots International Airport, Lufthansa Consulting/ERM GmbH, March 2006
Environmental Analysis of Zvarnots International Airport New Passenger Terminal Project, Lufthansa Consulting/ERM GmbH, March 2006
The environmental investigations showed that the project will result in some environmental improvements and has no significant direct adverse impacts.
Key environmental issues
The Environmental and Health and Safety situation at ZIA has already been significantly improved through upgrades in the existing terminal 1 and 2 during the past 3 years, the observed well organized housekeeping and the secure passenger handling. The situation will further improve through the implementation of the proposed investment programme, the Master Plan and the environmental action plan.
The airport lies within the Ararat Valley, with the Ararat mountains to the north and the east. The area of the airport is draining south/east via the Hrasdan River which runs about 1km east of the airport in direction South/southwest and subsequently drains into the Arax River. The closest settlements are situated adjacent to the border of the runway in a distance of about meters to the perimeter fence in the west, the south and the northeast. South of the airport there are suburban areas alternating with small trade and rural areas. In the west and south of Yerevan agriculture is the dominating land use. There are no designated sensitive areas, such as nature reserves, wetlands, bird protection areas in the immediate vicinity of the airport.
Construction of the new terminal
The new terminal of 180 x 100 m and a height of 20 m is being built on existing paved airport terrain. There are no land acquisitions necessary. Improvements for aircraft taxiing and parking will also be made. The double glazed façade, wall panels and the ventilating structure of the building, as well as the southward orientation have energy saving effect. The New Terminal integrates in the existing landscape of the Airport landside buildings. The groundwater level is not reached and the sewage and heating emissions will be in compliance with international and national standards. Construction-related impacts have been assessed to be localised and short term in nature and that they can be efficiently prevented or mitigated by applying good international construction practices.
Air emissions and ambient air quality
Due to limited number of daily aircraft movements (20-30), the aircraft engine emissions are not considered to affect the ambient air quality significantly. The heating for the entire airport is supplied from a central boiler plant. The system is 22 years old and is will be upgraded (Master Plan 2005) to meet international emission standards.
Wastewater and run-off water management
The sanitary wastewaters from the terminals and landside facilities is collected and transported via the sewage system of the airport to the municipal treatment plant in Yerevan. Run-off waters are collected in a separate drainage system. Currently, there is no treatment or filtering on the site and all discharged water from the fuel farm, the runway taxi ways, aprons and the de-icing pad are going directly into the river south of the airport. The runway and the de-icing pad drainage systems will be renewed and equipped with integrated interceptors and mechanical treatment.
ZIA has introduced a new waste management system that is based on waste minimisation and recycling. Residual waste will be disposed of on licensed landfills.
Fuel and chemical handling and storage
The fuel tanks at the fuel farm are on ground. They do not have secondary containment and do not comply with international standards. In order to meet future requirements, the fuel farm will be demolished and rebuilt.
Given the limited number of daily aircrafts (20-30) the noise impact of the neighbourhood is considered low. According to ZIA, there has been no complaints from the nearby village regarding noise emissions. As of 2007, all aircraft landing at the airport will need to comply with aviation noise and aviation engine emissions in accordance with ICAO Chapter III. Noise levels will be monitored regularly and additional abatement measures will be implemented in future to meet national and international requirements, as needed.
Environmental, health and safety management
ZIA has started to develop an Environmental Management Plan (EMP) to manage all the environmental issues within the Concession Area and are in the process of implementing the EMP in a phased process. When the EMP is up and running, ZIA intends to acquire certification according to ISO 14000.
Emergency response planning
The ZIA Operations Manual for contingency planning is complete regarding the single topics. Rescue and fire fighting services will be developed in compliance with ICAO standards, including intensive training of staff, periodic inspections and development of appropriate emergency procedures. Adequate extinguishing equipment will be maintained. ZIA will develop an integrated overall emergency procedure.
Summary of Environmental Action Plan
ZIA is committed to implement further environmental improvements needed at the existing facilities as well as measures for mitigating adverse impacts arising from the construction works and operation of the airport. The EAP includes specific measures for fuel storage and handling, waste management, wastewater and storm water purification, soil protection, health and safety and disclosing information to stakeholders.
Monitoring and reporting
A specific monitoring programme has been established to ensure air emissions, wastewater discharges and noise will remain within regulatory limits. The EBRD will evaluate the project's compliance with the applicable environmental and social requirements during the lifetime of the project by reviewing annual environmental reports covering:
(i) ongoing environmental, health and safety performance; and
(ii) the status of implementation of environmental mitigation and improvement measures. The EBRD’s representatives may also conduct periodic site supervision visits when deemed appropriate.
Juan Pablo Gechidjian,
Zvartnots International Airport,
Tel: +374 10 28 20 36
For business opportunities or procurement, contact the client company.
EBRD project enquiries not related to procurement:
Tel: +44 20 7338 7168
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Text of the PIP
Independent Project Accountability Mechanism (IPAM)
If efforts to address environmental, social or public disclosure concerns with the Client or the Bank are unsuccessful (e.g. through the Client’s Project-level grievance mechanism or through direct engagement with Bank management), individuals and organisations may seek to address their concerns through the EBRD’s Independent Project Accountability Mechanism (IPAM).
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