ENVIRONMENTAL AND SOCIAL INFORMATION
Applicable Policy and Categorization: AIIB’s Environmental and Social Policy (ESP), including ESS 1 (Environmental and Social Assessment and Management), ESS 2 (Involuntary Resettlement) and the Environmental and Social Exclusion List (ESEL), applies to the entire MPP. The MPP comprise three phases and the ToR for preparing environmental and social (ES) instruments for the MPP and Phase I Project requires compliance with AIIB ES policies. A program-level Environmental and Social Management Planning Framework (ESMPF), including a Resettlement Policy Framework (RPF), will guide the preparation of ES instruments for Phases II and III. Phase I Project, proposed for AIIB financing, includes construction of the Darnagul and Khojasan Depots, along with associated preparation, supervision, and implementation support. Phase II involves extension of the Green Line from Khatai to Hazi Aslanov stations with 4 stations and about 8.6 km of tunneling with Tunnel Boring Machines to be financed by AIIB, and the extension of the Purple Line, with five stations and approximately 9 km of tunneling through densely populated areas and near heritage sites, to be financed by ADB. Phase III covers procurement of rolling stock for the Green and Purple Lines. Given the higher ES risks associated with Phase II, the overall MPP is categorized as Category A, subject to confirmation based on the Environmental and Social Consultant’s assessment. Each intervention under Phases I–III will be individually screened and fit-for-purpose ES instruments will be prepared accordingly.
Environmental and Social Instruments: As the MPP is structured across three phases, both a framework approach and site-specific ES assessments are necessary. Therefore, the ES instruments includes: (a) Framework-level instruments: Environmental and Social Management Planning Framework (ESMPF), Labor Management Plan (LMP), and Stakeholder Engagement Plan (SEP), covering both Phase I and MPP; and (b) Site-specific instruments for Phase I Project, including Environmental and Social Impact Assessment (ESIA), Environmental and/or Social Management Plan (ESMP), and Resettlement Action Plan (RAP) if needed and a Gender Action Plan (GAP). An Environmental and Social Action Plan (ESAP) will also be required. The existing Environmental Assessment (EA) for the Darnagul Depot, prepared under national law, will be reviewed for consistency with AIIB’s ESP and ESSs, and any gaps will be addressed through the site-specific ESIA/ESMP and RAP. An Associated Facilities Assessment will also be carried out to identify any facilities linked to the MPP, especially to Phase I Project and determine the necessary ES management measures. Additionally, Baku Metropolitan Closed Joint-Stock Company (CJSC) will be responsible for establishing an MPP and Phase I Project specific Environmental and Social Management System (ESMS), appropriate to the nature and scale of the Project and commensurate with the level of its E&S impacts and issues in line with the Good International Industry Practice (GIIP).
Environmental Aspects: Each intervention under the MPP will be individually screened and assessed. Key environmental risks during construction and operation include noise, vibration, air pollution, waste generation, utility disruptions, occupational and community health and safety, resource use, and greenhouse gas emissions. Site visits to the Phase I Project depot locations—Darnagul and Khojasan—confirmed both are situated in semi-urban areas. While both sites are near residential and commercial areas, they do not directly adjoin any buildings, and construction can be accommodated within Baku Metro’s landholdings. Phase I risks are considered moderate and site-specific and can be effectively managed through standard mitigation measures. Site-specific ESIA/ESMPs will be prepared alongside stakeholder consultations with the residents, businesses, and underpass users. These assessments will further detail baseline conditions, identify potential impacts, and define mitigation strategies. Phase II involves extending the metro line by approximately 9 km, with five new stations and tunneling using Tunnel Boring Machines (TBMs). It is expected to carry higher ES risks, particularly due to potential impacts on heritage sites and densely populated areas. ES risks and impacts on these areas will be further evaluated during the ESIA/ESMP process, and mitigation measures will be incorporated into the design to minimize adverse effects.
Social and Gender Aspects: The MPP and Phase I Project will generate substantial social benefits aligned with AIIB's ESP, including: i) Enhanced mobility with improved accessibility and reduced travel times, ii) Universal access with International Best Practices-compliant station designs[1] meeting AIIB's Inclusion Standards, and iii) Economic growth with strengthened connections to commercial/cultural centers. While the benefits are clear, the MPP and Phase I Project may carry certain risks, especially during construction, such as i) Labor Risks: Occupational health/safety hazards, ii) Safe tunnels and buildings designs, iii) Land Acquisition and resettlement issues, iv) Stakeholder Engagement: Inadequate community engagement, v) Displacement: Physical/economic displacement risks, and vi) Gender-related risks. The MPP entails significant gender considerations, balancing risks like potential gender-based violence (GBV) / SEA / SH incidents among workers, communities, and metro users against opportunities for female employment and improved mobility access. Corresponding mitigation measures, particularly regarding women's workforce participation during both construction and operational phases, will be systematically incorporated into the updated ESAP/ESMP to ensure comprehensive gender mainstreaming. To help manage these potential risks, the AIIB’s Team is mobilizing an ES consultant to carry out ES due diligent (ESDD) at both the MPP and Phase I Project levels. The ESDD will also assess Baku Metropolitan CJSC’s social risks management systems.
Occupational Health and Safety (OHS), Labor and Working Conditions (LWC): Phase I Project may pose occupational health and safety (OHS) risks, particularly during construction activities, involving excavation, tunnelling, heavy machinery, and confined-space work. Potential hazards include accidents, exposure to hazardous materials, and noise-related health impacts. Compliance with national labor laws and international standards will be ensured, covering: i) Safe working conditions with gender-adaptive personal protective equipment (PPE), ii) Regular OHS training, and iii) Emergency protocols. Labor management practices will emphasize: i) Non-discrimination and equal opportunity, and ii) Protection of workers’ rights, including those of migrant and subcontracted labor. The ES assessments will further evaluate OHS risks and labor conditions, with mitigation measures integrated into the technical planning.
Stakeholder Engagement and Information Disclosure: Considering the comprehensive scope of the MPP and Phase I Project, stakeholder engagement involves multiple actors including public institutions, trade unions, private contractors, international partners, directly affected communities, transit users, and the general population. Stakeholder engagement will be conducted by the project implementers to i) systematically consult on all potential impacts and risks, ii) ensure transparent disclosure of project information, and iii) accommodate each group's preferred communication methods. All stakeholder feedback and concerns will be formally recorded and incorporated into i) project policies and regulatory frameworks, ii) ES instruments, and iii) ongoing project design and implementation. The engagement process will feature: i) regular consultation rounds throughout all MPP phases, ii) targeted outreach to vulnerable groups and women, and iii) establishment of accessible grievance mechanisms. The key framework documents including the ESMF and SEP will be developed through inclusive consultations with affected residents, businesses, and transport users. The Project Implementation Unit (PIU) will ensure timely disclosure of all ES documents, and continuous integration of stakeholder input.
Project Grievance Redress Mechanism (GRM): AIIB’s Policy on the GRM applies to the MPP and its Phase I Project. AIIB Team discussed with the Baku Metropolitan CJSC and relevant agencies, during the April field mission, the requirements for establishing and maintaining a project specific GRM to receive, review and respond to the complaints and/or grievances of affected persons in a timely and effective manner. In addition to this, a GRM for the workers to manage the workplace related issues and complaints will also be established. The GRMs will be in-place and functional after the project approval. The information of GRMs in English and a summary in Azerbaijani language, including AIIB’s Project-affected People’s Mechanism (PPM), will be disclosed by Baku Metropolitan CJSC on its website, ensuring its accessibility and adaptability, and in hard copies in each Phase areas. This information will also be provided on AIIB’s website.
Monitoring and Reporting Arrangement. The PIU will have the primary responsibility for monitoring the progress and performance of the MPP and Phase I Project. To support this, the Baku Metro will engage an independent consultant to assist in project implementing as well as in monitoring and reporting. During project implementation, progress monitoring report will be prepared by the Baku Metro semi-annually based on an agreed format and submitted to AIIB for review, and AIIB will conduct field missions twice a year. During the ESDD and project appraisal, more details of ES monitoring and reporting arrangement will be determined.
[1] Or equivalent universal station designs.
