04 AUGUST / 2026 / 10:35
Initial Environmental Examination
Project number: 55119001
June 2026
This initial environmental examination is a document of the borrower. The views expressed herein do not necessarily represent those of ADB's Board of Directors, Management, or staff, and may be preliminary in nature. Your attention is directed to the “terms of use” section on ADB’s website.
In preparing any country program or strategy, financing any project, or by making any designation of or reference to a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area.
1. EXECUTIVE SUMMARY
1.1 Introduction
1. The Baku Metro Signaling Modernization and Operations Digitalization Project is a strategic urban transport modernization initiative aimed at improving the safety, reliability, capacity, energy efficiency, and operational performance of the Baku Metro system. The project will introduce a modern communications-based train control system, upgrade signaling and communication infrastructure, establish improved digital operational control, install onboard and wayside equipment, and support the structured decommissioning of the existing legacy signaling system. The project responds to the need to modernize one of Baku’s most important public transport systems and is expected to generate long-term benefits for passengers, Baku Metro staff, and the wider urban transport network.
2. The project will be implemented within the existing Baku Metro operational footprint, including tunnels, stations, depots, substations, technical rooms, control facilities, rolling stock, cable routes, and related operational infrastructure. It does not include construction of new metro lines, new stations, major excavation works, permanent land acquisition, physical displacement, or expansion into natural habitats or protected areas. The modernization is therefore primarily a rehabilitation, replacement, digitalization, and operational safety improvement project, rather than a new greenfield infrastructure project.
3. Under the Asian Development Bank Safeguard Policy Statement (2009), the project is classified as Category B. This classification is appropriate because potential impacts are expected to be site-specific, largely reversible, and manageable through the implementation of standard and project-specific mitigation measures. The main project risks are not associated with large-scale civil construction, but with the complexity of carrying out installation, testing, operation, and decommissioning activities within a live underground metro environment.
1.2 Project Description
4. The Baku Metro Signaling Modernization and Operations Digitalization Project is a strategic infrastructure modernization project aimed at improving the safety, reliability, capacity, operational efficiency, and long-term sustainability of the Baku Metro system. The project will replace the existing legacy signaling and control systems with a modern communications-based train control system and associated digital platforms. It will also upgrade wayside and onboard equipment, improve operational control through centralized digital systems, and support better monitoring, diagnostics, maintenance planning, and passenger information.
5. The project will be implemented within the existing Baku Metro infrastructure, including tunnels, stations, depots, substations, technical rooms, control facilities, cable routes, and rolling stock. No new metro lines, new stations, major excavation works, or expansion outside the existing metro footprint are planned. The works will mainly involve installation of new signaling and communication equipment, replacement of outdated electrical and control components, integration of new digital systems, testing and commissioning, and eventual dismantling of obsolete legacy infrastructure.
6. The project will be implemented in three main phases. The first phase will include design finalization, procurement, factory acceptance testing, installation of wayside and onboard equipment, system integration, pilot operation, and progressive rollout across the network. The second phase will consist of a stabilization and parallel operation period, during which the new system and the existing legacy system will operate simultaneously for approximately 6–12 months to verify safety, reliability, and operational readiness. The third phase will involve structured decommissioning of the existing system, including system deactivation, safety verification, pilot dismantling, full removal of obsolete equipment, material management, and final documentation.
7. A key environmental and safety consideration of the project is the controlled removal of legacy signaling and electrical equipment, including oil-filled choke-transformers, old cables, relay systems, switch machines, tunnel telephones, control boxes, and other electrical and electronic components. Since some equipment may contain oil residues or potentially hazardous materials, the project will require careful inventory, testing, segregation, safe handling, waste management, and transfer to certified organizations. Overall, the project is expected to generate long-term positive impacts by improving metro safety, reducing reliance on obsolete systems, strengthening operational control, and supporting more reliable and efficient public transport services in Baku.
1.3 Project Alternatives
8. The alternatives analysis for the Baku Metro Signaling Modernization and Operations Digitalization Project considered the zero alternative and the technology alternative for the signaling system. The zero alternative assumes that the project is not implemented and that the existing relay-based signaling and operational control systems continue to operate without modernization. Although this option would avoid short-term installation and decommissioning impacts, it is not considered acceptable because it would leave Baku Metro dependent on aging infrastructure, obsolete electrical and signaling equipment, and outdated control systems. Over time, this would increase risks related to system failure, service disruption, reduced passenger safety, higher maintenance needs, and continued environmental risks from old oil-filled equipment.
9. The main technology alternative assessed was the choice between a modern CBTC-based signaling system and a more traditional fixed-block or legacy-type signaling system. While the traditional system may require lower initial investment and may be simpler to install, it provides limited operational flexibility, lower network capacity, larger train separation distances, and higher long-term maintenance requirements. By contrast, the CBTC system allows continuous communication between trains and trackside infrastructure, more accurate train positioning, shorter headways, improved safety performance, better integration with digital systems, and stronger compatibility with future automation and smart transport management.
10. Based on the alternatives assessment, the CBTC-based modernization option is considered the preferred alternative. Although it has higher initial capital cost and greater implementation complexity, it provides clear long-term benefits in terms of safety, capacity, reliability, energy efficiency, passenger service quality, and lifecycle cost effectiveness. It also supports Azerbaijan’s priorities for sustainable urban mobility, digital transformation, and improved public transport performance. Therefore, the selected project alternative represents the most appropriate and sustainable solution for the modernization of the Baku Metro system.
1.4 Baseline Information
11. The Baku Metro Project is located in Baku, on the Absheron Peninsula, along the western coast of the Caspian Sea. The project area is entirely within a highly urbanized environment, where land use is dominated by transport infrastructure, residential and commercial development, public service facilities, and long-established industrial activity. The metro network extends through central and peripheral districts of the city and connects important residential, employment, educational, commercial, healthcare, and administrative areas. Therefore, the baseline conditions are defined mainly by an urban and underground infrastructure environment rather than by natural or undeveloped landscapes.
12. The physical baseline of Baku is characterized by a semi-arid coastal climate, hot and dry summers, mild winters, and strong wind conditions typical of the Absheron Peninsula. The area is influenced by the Caspian Sea and by the well-known regional wind systems, including the cold northern Khazri and the warmer southern Gilavar winds. Precipitation is relatively low and concentrated mainly in autumn and winter, but short-duration rainfall events can still contribute to localized water accumulation and increased groundwater inflow into underground infrastructure. These climatic conditions are relevant for metro operation, ventilation, tunnel humidity, drainage systems, and worker comfort during underground works.
13. The geological and hydrogeological baseline is particularly important for the project. Baku is located within the South Caspian Basin, where the subsurface is composed of thick sedimentary formations, including clays, sandy clays, silts, sands, and anthropogenic fill. Groundwater is often shallow in low-lying and coastal areas, while deeper stations may interact with saturated layers or zones of seepage. Existing information confirms that groundwater inflow is a regular operational feature of the Baku Metro system. Water enters tunnels through joints, cracks, and surrounding soil layers and is managed through drainage channels, sumps, and pumping systems. This means that drainage protection and prevention of oil or hazardous material entry into tunnel drainage systems are important baseline management issues.
14. The biological baseline is of low sensitivity because the project will be implemented within existing underground and urban metro infrastructure. No natural habitats, protected areas, wetlands, riverbeds, or ecologically sensitive areas are located within the direct project footprint. Flora and fauna are limited mainly to urban-adapted species, such as rodents, insects, and common urban birds around above-ground facilities, depots, and station surroundings. Protected areas near Baku, including Absheron National Park, the Binagadi Paleontological Nature Monument, and the Gobustan protected landscape, are located at considerable distances from the project area and are outside the likely zone of project influence.
15. The social baseline is defined by the project’s location in Azerbaijan’s largest and most economically active urban area. Baku is the country’s main center for employment, education, healthcare, services, administration, and transport. The metro system is a critical public transport service used daily by workers, students, residents, visitors, elderly passengers, persons with disabilities, and other groups dependent on affordable and reliable mobility. The wider Baku–Absheron area has a high population concentration and strong demand for efficient public transport, which makes the reliability and safety of the metro system socially important.
16. The existing metro infrastructure includes deep and shallow underground stations, tunnels, depots, ventilation shafts, drainage systems, relay rooms, technical rooms, legacy signaling equipment, and oil-filled electrical components. Several older stations also have architectural and cultural value, particularly Nizami Metro Station, which is identified as a listed architectural monument of national importance. Baseline monitoring carried out by the Baku Metro Laboratory shows that the metro system already has an internal environmental monitoring function covering parameters such as temperature, relative humidity, noise, ventilation conditions, and selected petroleum hydrocarbon checks. This existing monitoring capacity provides an important basis for future project monitoring, although specialized external laboratories will still be required for PCB testing, hazardous waste classification, and other complex analyses.
1.5 Environmental Impacts
17. The environmental impacts of the Baku Metro Signaling Modernization and Operations Digitalization Project are expected to be mainly site-specific, temporary, and manageable through the implementation of the Environmental Management Plan. The project will be carried out within the existing Baku Metro footprint, including tunnels, stations, depots, technical rooms, substations, control facilities, cable routes, and rolling stock areas. It does not include new metro lines, new stations, major excavation works, expansion into natural habitats, or works in protected areas. Therefore, the project is not expected to cause large-scale or irreversible environmental impacts.
18. The main environmental risks are associated with the implementation of works in a live underground metro environment and with the removal of legacy electrical and signaling equipment. Installation works may generate localized dust, fumes, odors, heat, noise, and minor waste, especially during drilling, fixing, cable routing, cleaning of cable ducts, and works in technical rooms. Since many activities will be carried out in enclosed underground areas with limited natural ventilation, indoor air quality and worker exposure are more important issues than outdoor ambient air pollution. These impacts can be controlled through ventilation, housekeeping, dust suppression, permit-to-work procedures, and use of appropriate personal protective equipment.
19. Waste management is one of the most significant environmental issues for the project, particularly during the decommissioning phase. The project will generate cable waste, scrap metals, old control boxes, relay equipment, tunnel telephones, switch machines, e-waste, packaging, oily residues, absorbents, and potentially hazardous waste. A key concern is the presence of approximately 933 oil-filled choke-transformers, which may contain old insulating oil and may require PCB screening before dismantling, transport, recycling, or disposal. If not properly managed, these materials could create risks of oil leakage, hazardous waste misclassification, worker exposure, and contamination of tunnel drainage systems.
20. Potential impacts on groundwater and drainage are also relevant because groundwater inflow is an existing operational condition in parts of the Baku Metro system. The project itself will not create new impacts on rivers, lakes, canals, or the Caspian Sea, but installation and dismantling activities could affect tunnel drainage channels, sumps, or pumping systems if waste, oils, sediments, or cleaning materials are not properly controlled. The main risk is accidental contamination of drainage water from transformer oil, lubricants, contaminated sediment, oily residues, or cleaning liquids. These impacts can be minimized through drainage protection, spill prevention, secondary containment, water quality checks where needed, and strict prohibition of discharging contaminated liquids into tunnel drainage.
21. Impacts on soils, geology, biodiversity, and protected areas are expected to be low. The project will not involve topsoil stripping, major earthworks, agricultural land disturbance, or new land take. Any soil or surface contamination risk would be localized and linked mainly to depot areas, technical rooms, tunnel floors, cable ducts, ballast, and handling of old oil-filled equipment. Biodiversity impacts are also expected to be insignificant because the project area is highly urbanized and underground, with no natural habitat conversion. Protected areas near Baku are located outside the project’s physical footprint and beyond the likely zone of influence from dust, noise, vibration, wastewater, transport, or operational emissions.
22. Cultural heritage impacts require specific attention, although significant impacts are not expected if mitigation measures are applied. Nizami Metro Station is identified as an architectural monument of national importance, and several older stations may also have architectural, artistic, or historical value. Project works such as drilling, fixing, cable routing, installation of cabinets, movement of materials, or waste removal could accidentally damage decorative finishes, mosaics, stone cladding, wall panels, lighting features, or other station-specific elements if carried out without controls. Therefore, heritage-sensitive screening, pre-work condition recording, approval of fixing points, protective coverings, and a Chance Find Procedure are required.
23. Overall, the project is expected to have important long-term positive environmental and operational impacts. By replacing aging signaling and electrical systems, improving operational control, introducing modern digital systems, and safely decommissioning obsolete equipment, the project will reduce long-term risks associated with old oil-filled infrastructure, degraded cables, operational inefficiency, and system failures. With proper implementation of the EMP, waste management plan, hazardous materials procedures, OHS controls, monitoring program, and grievance mechanism, residual environmental impacts are expected to remain low to medium and acceptable.
24. No separate land acquisition and resettlement plan is proposed for this project, as all activities will be implemented within the existing operational footprint of Baku Metro, including existing tunnels, stations, depots, substations, technical rooms, control facilities, cable routes and rolling stock areas. The project does not require construction of new metro lines or stations, major excavation works, permanent land acquisition, physical displacement, economic displacement, or restriction of access to land or natural resources. Therefore, no impacts on land ownership, land use, private property, residential structures, businesses, agricultural land or livelihoods are anticipated. The project also does not trigger Indigenous Peoples safeguards, as the activities will be carried out in a fully urbanized metropolitan transport environment and no distinct Indigenous Peoples communities, traditional territories, customary land use systems, collective attachment to ancestral lands, or culturally distinct livelihood systems are present within the project area or likely zone of influence. Accordingly, no Indigenous Peoples Plan is required.
1.6 Mitigation Measures
25. The mitigation measures for the Baku Metro Signaling Modernization and Operations Digitalization Project are based on the principle of avoiding impacts where possible, reducing risks at source, and managing residual impacts through site-specific procedures, monitoring, supervision, and corrective actions. Since the project will be implemented within the existing Baku Metro infrastructure, the first and most important mitigation measure is to keep all works within approved tunnels, stations, depots, technical rooms, control facilities, and other existing operational areas. No project activities, storage areas, waste sites, or ancillary facilities should be located in protected areas, natural habitats, or areas outside the approved Baku Metro footprint.
26. Before works begin, the Contractor should prepare a Site-Specific Environmental Management Plan and all required topic-specific plans, including the Waste Management Plan, Hazardous Materials and PCB Management Plan, Occupational Health and Safety Plan, Community Health and Safety / Passenger Safety Plan, Emergency Preparedness and Response Plan, Groundwater and Drainage Management Plan, Air Quality and Ventilation Management Plan, Cultural Heritage Management Plan, Stakeholder Engagement and Grievance Redress Plan, and Training Plan. These plans should be reviewed and approved by the PIU and the Construction Supervision Consultant before the Contractor is allowed to access any work area. The plans should define specific work locations, responsible persons, monitoring requirements, reporting arrangements, emergency procedures, and corrective action mechanisms.
27. Waste management measures are a priority for the project, especially during decommissioning of the existing signaling system. All waste should be segregated at source, and hazardous and non-hazardous waste must not be mixed. Waste shall not be temporarily stored in tunnels, platforms, escape routes, drainage channels, cable ducts, shafts, or underground operational areas. Waste generated underground should be collected during the same work shift and transported to the designated depot-based temporary storage area, preferably by rail during the approved night working window. Scrap metal, cables, e-waste, packaging, oily materials, used absorbents, batteries, lamps, used oils, and PCB-suspected materials should be stored separately, labelled, documented, and transferred only to certified or licensed organizations.
28. Specific mitigation is required for old oil-filled equipment, including the approximately 933 choke-transformers identified in the project documentation. These units should be treated as potentially hazardous until testing confirms their classification. Before opening, draining, dismantling, transporting, or disposing of oil-filled equipment, the Contractor should prepare an inventory, inspect equipment condition, conduct oil-quality and PCB testing where required, and apply a chain-of-custody system. Oil-filled equipment and liquid waste should be placed on impermeable surfaces with secondary containment. Liquid waste, including transformer oil, oily water, solvents, cleaning liquids, and contaminated drainage residues, should be stored in leak-proof containers placed in secondary containment with a capacity of at least 110% of the container volume.
29. To protect tunnel drainage systems and groundwater, all drainage channels, sumps, and pumping systems should remain operational and unobstructed during works. Cables, dismantled equipment, packaging, waste, tools, or construction materials should not be placed in drainage channels or near sump inlets. Any oil leakage, visible sheen, contaminated sediment, abnormal odor, or uncontrolled water inflow should trigger immediate stop-work, isolation of the affected area, notification of Baku Metro HSE staff, and implementation of corrective measures. Contaminated sludge, oily residues, absorbents, and drainage sediments should be collected separately, classified, and managed through licensed waste contractors.
30. Occupational and passenger safety measures should be applied throughout all project phases. Works in tunnels, technical rooms, relay rooms, transformer areas, and other confined or semi-confined spaces should be carried out only under approved permits. Lock-Out / Tag-Out procedures should be mandatory for electrical works, while confined-space entry should require ventilation, atmospheric checks where needed, standby personnel, communication arrangements, lighting, and rescue procedures. Passenger areas should be physically separated from work zones through barriers, signage, locked access points, or supervision. Emergency exits, evacuation routes, stairs, lifts, escalators, platforms, and public access routes should remain unobstructed, safe, well-lit, and accessible for vulnerable users.
31. Cultural heritage mitigation should be applied where works are planned at Nizami Metro Station or other architecturally valuable stations. Before works begin in sensitive areas, photographic and written condition records should be prepared. Drilling, cutting, fixing, anchoring, or routing of cables on decorative or heritage-sensitive surfaces should not be allowed without written approval. Protective coverings should be installed during material movement, and heavy equipment or dismantled materials should not be stored against decorative panels, stone cladding, mosaics, inscriptions, or historic finishes. A Chance Find Procedure should apply to all intrusive works. With these mitigation measures, combined with continued stakeholder engagement, grievance management, laboratory monitoring, supervision, and semi-annual reporting to ADB, residual impacts are expected to remain low to medium and manageable.
1.7 Environmental Management Plan Description
32. The Environmental Management Plan for the Baku Metro Signaling Modernization and Operations Digitalization Project provides the practical framework for implementing all environmental, occupational health and safety, community health and safety, social, cultural heritage, waste management, monitoring, and reporting measures identified in the IEE. The EMP translates the impact assessment findings into specific obligations for Baku Metropoliteni CJSC, the PIU, the Contractor, subcontractors, the supervision consultant, Baku Metro operational departments, depot management, laboratory personnel, and certified waste management organizations. The EMP will form part of the bidding and contract documents and will be binding on all contractors and subcontractors involved in project implementation.
33. The EMP applies to all project phases, including pre-construction planning, signaling modernization and operations digitalization, stabilization and parallel operation, decommissioning of the existing system, and operation of modernized system. Since the project will be implemented within an active underground metro system, the EMP gives particular attention to works in tunnels, stations, depots, technical rooms, cable routes, substations, control facilities, and rolling stock areas. It also reflects the project’s main risk profile, including confined-space works, electrical safety, tunnel ventilation, night works, passenger safety, groundwater and drainage protection, hazardous materials management, waste management, cultural heritage protection, and the decommissioning of legacy equipment.
34. Before works begin, the Contractor will be required to prepare a Site-Specific Environmental Management Plan and a set of topic-specific management plans. These should include, at minimum, a Waste Management Plan, Hazardous Materials and PCB Management Plan, Spill Prevention and Response Plan, Groundwater and Drainage Management Plan, Air Quality and Ventilation Management Plan, Noise and Vibration Management Plan, Occupational Health and Safety Plan, Community Health and Safety / Passenger Safety Plan, Electrical Safety and Lock-Out / Tag-Out Plan, Confined Space Work Procedure, Emergency Preparedness and Response Plan, Cultural Heritage Management Plan, Stakeholder Engagement and Grievance Redress Plan, and Training and Capacity Building Plan. No physical works should start until these plans are reviewed and approved by the PIU and Construction Supervision Consultant.
35. The EMP establishes specific mitigation requirements for the project’s key environmental risks. Waste generated in tunnels, stations, technical rooms, and other underground areas must be collected during the same work shift and must not be temporarily stored in tunnels, platforms, escape routes, drainage channels, cable ducts, shafts, or other operational underground areas. Hazardous and non-hazardous waste must be segregated, labelled, documented, and transported to designated depot-based temporary storage areas. Liquid waste must be stored in leak-proof containers placed in secondary containment with a capacity of at least 110% of the container volume. Final waste management must be carried out only by certified or licensed organizations.
36. A central component of the EMP is the management of old oil-filled electrical equipment, including the approximately 933 choke-transformers identified in the project documentation. These units and their oils must be treated as potentially hazardous until testing confirms their classification. Before opening, draining, dismantling, moving, recycling, or disposing of any oil-filled equipment, the Contractor must complete an inventory, conduct condition checks, carry out PCB or oil-quality testing where required, and apply documented chain-of-custody procedures. PCB-suspected or PCB-confirmed waste must be isolated, labelled, stored under controlled conditions, and managed only through legally authorized hazardous waste routes.
37. The EMP also defines institutional responsibilities and monitoring requirements. Baku Metropoliteni CJSC will have overall responsibility for project safeguard compliance; the PIU will provide day-to-day coordination and oversight; the Contractor will implement the approved SEMP and topic-specific plans; and the Construction Supervision Consultant will verify compliance through inspections, audits, review of records, and corrective action follow-up. The Baku Metro Laboratory will continue routine monitoring where its capacity is sufficient, while external certified laboratories will be used for specialized analysis, including PCB testing, hazardous waste classification, detailed water quality analysis, and contaminated residue testing.
38. Monitoring and reporting are essential parts of the EMP. The Contractor must maintain records of environmental monitoring, waste quantities, waste transfer notes, disposal certificates, training, work permits, incidents, near misses, grievances, non-compliances, and corrective actions. Monthly environmental, health and safety reports should be submitted to the PIU and supervision consultant. The PIU should then prepare semi-annual environmental monitoring reports for submission to ADB. With proper implementation of the EMP, residual impacts are expected to remain low to medium and manageable, while the project is expected to generate long-term positive outcomes through improved metro safety, reduced legacy contamination risks, stronger operational control, better passenger service, and enhanced environmental management capacity.
1.8 Grievance Redress Mechanism
39. The Grievance Redress Mechanism for the Baku Metro Signaling Modernization and Operations Digitalization Project will provide a formal, accessible, transparent, and timely process for receiving, registering, reviewing, responding to, and resolving complaints from passengers, workers, nearby businesses, affected persons, and other stakeholders. The GRM will cover environmental, social, occupational health and safety, passenger safety, access, livelihood, service disruption, waste management, and other project-related concerns. It will be implemented in accordance with the applicable legislation of the Republic of Azerbaijan and ADB Safeguard Policy Statement requirements, which require a mechanism for receiving and facilitating resolution of affected persons’ concerns and grievances.
40. The GRM will build on the existing complaint handling system of Baku Metropoliteni CJSC, including station-level complaint intake and the Public Relations Center, which already receives and processes public complaints. Complaints may be submitted through Baku Metro stations, the Public Relations Center, the PIU, the Contractor, or other disclosed communication channels. Project-related complaints will be registered in a logbook or electronic database, reviewed by the responsible project or operational unit, and assigned for response and corrective action. If a complaint cannot be resolved at the first level, it may be escalated to the Baku Metropoliteni CJSC head office and, if still unresolved, to the court system in accordance with national legislation.
41. All grievances and the actions taken to resolve them will be documented and monitored. The Contractor will be required to report received complaints and corrective actions to the PIU, while the PIU will consolidate grievance information for inclusion in semi-annual environmental monitoring reports submitted to ADB. The GRM will be disclosed before the start of works, including contact details and complaint submission channels. It will remain available throughout project implementation and the operational phase to ensure that stakeholder concerns are addressed promptly, fairly, and transparently.
1.9 Stakeholder Engagement Plan
42. The Stakeholder Engagement Plan for the Baku Metro Signaling Modernization and Operations Digitalization Project will provide the framework for timely, inclusive, transparent, and continuous communication with stakeholders throughout project preparation, implementation, stabilization, decommissioning, and operation. The SEP should ensure that passengers, Baku Metro staff, nearby businesses, vulnerable groups, public institutions, service providers, contractors, and relevant authorities receive understandable information on the project objectives, implementation schedule, expected impacts, mitigation measures, access changes, safety arrangements, and grievance channels. This is particularly important because the project will be implemented within an operating metro system, where temporary disruption to passenger movement, business access, public safety, and service reliability may occur if works are not properly communicated.
43. The SEP should build on consultations already held with Baku Metropoliteni CJSC departments and operational services, including discussions on project objectives, current technical problems, equipment proposed for dismantling, environmental monitoring, waste management, occupational and passenger safety, complaint handling, and ADB safeguard requirements. Engagement methods should include public meetings, institutional meetings, face-to-face consultations where specific access or business impacts are expected, information leaflets, website and social media disclosure, station notices, posters, and project information boards. The approach should be inclusive and accessible, with attention to elderly passengers, persons with disabilities, women travelling with children, low-income metro users, students, workers, businesses near stations, and other groups that may be more sensitive to temporary access or service changes.
44. The SEP should remain active during implementation and operation and should be closely linked with the project Grievance Redress Mechanism. Information disclosure should be provided before works that may affect station entrances, pedestrian routes, public transport interfaces, businesses, passenger safety, service schedules, night works, waste transport, or culturally sensitive station areas. Feedback received through consultations, station-level communication, the Public Relations Center, the PIU, and the Contractor should be recorded, reviewed, and used to update mitigation measures where necessary. The Stakeholder Engagement and Grievance Redress Plan is also identified as a required topic-specific management plan, covering disclosure, complaint intake through Baku Metro structures, coordination with the Public Relations Center, response timelines, records, and reporting.
1.10 EMP Cost Description
45. The costs for implementation of the Environmental Management Plan for the Baku Metro Signaling Modernization and Operations Digitalization Project will include both standard contractor obligations and specific incremental safeguard costs. Standard costs, such as routine housekeeping, PPE, basic OHS measures, worker induction, safe access control, ordinary waste collection, signage, and routine supervision, are expected to be included in the Contractor’s general contract price. Additional EMP costs will be required for specialist environmental and social supervision, instrumental monitoring, hazardous materials and PCB screening, waste management, emergency preparedness, stakeholder engagement, grievance management, cultural heritage protection, and training of contractor, depot, laboratory, and Baku Metro personnel.
46. The estimated EMP budget for planning purposes is approximately USD 950,000, including a 10% contingency. This estimate covers supervision specialists, contractor EHS staff, monitoring, transformer oil and PCB testing, hazardous waste classification, spill kits, secondary containment, depot waste storage improvements, certified hazardous waste handling support, worker and depot staff training, emergency drills, GRM and public information activities, cultural heritage protection measures, and independent safeguard review. The budget should be reviewed and refined during detailed design, contractor mobilization, and before decommissioning, particularly if PCB contamination, asbestos-containing materials, contaminated sludge, or other hazardous materials are confirmed during implementation.
1.11 Environmental Management Plan
47. The Environmental Management Plan for the Baku Metro Signaling Modernization and Operations Digitalization Project establishes the practical framework for managing environmental, occupational health and safety, community health and safety, cultural heritage, waste management, stakeholder engagement, monitoring, and reporting requirements during project implementation and operation. The EMP translates the findings of the IEE into specific mitigation and monitoring obligations and will form part of the bidding and contract documents, making its implementation mandatory for the Contractor, subcontractors, Baku Metropoliteni CJSC, the PIU, and other parties involved in the project.
48. The EMP applies to all phases of the project, including pre-construction planning, signaling modernization and operations digitalization, stabilization and parallel operation, decommissioning of the existing system, and operation after modernization. Since the project will be implemented within a live underground metro system, the EMP focuses on the key risks associated with confined-space works, electrical safety, Lock-Out / Tag-Out procedures, tunnel ventilation, night works, passenger safety, groundwater and drainage protection, hazardous materials, waste transport, and decommissioning of legacy equipment, including oil-filled choke-transformers and other electrical and electronic components.
49. Before works begin, the Contractor will be required to prepare a Site-Specific Environmental Management Plan and topic-specific plans, including a Waste Management Plan, Hazardous Materials and PCB Management Plan, Spill Prevention and Response Plan, Groundwater and Drainage Management Plan, Air Quality and Ventilation Management Plan, Occupational Health and Safety Plan, Community Health and Safety / Passenger Safety Plan, Emergency Preparedness and Response Plan, Cultural Heritage Management Plan, Stakeholder Engagement and Grievance Redress Plan, and Training Plan. These documents must be reviewed and approved by the PIU and Construction Supervision Consultant before the Contractor is allowed to start works in any project area.
50. A central requirement of the EMP is the safe management of waste and hazardous materials. Waste shall not be temporarily stored in tunnels, platforms, escape routes, drainage channels, cable ducts, shafts, or other underground operational areas. Waste generated underground must be collected during the same work shift and transported to designated depot-based temporary storage areas. Hazardous and non-hazardous waste must be segregated, labelled, documented, and transferred only to certified or licensed organizations. Liquid waste, including transformer oil and oily residues, must be stored in leak-proof containers placed in secondary containment with capacity equal to at least 110% of the container volume.
51. The EMP also defines monitoring, reporting, and corrective action requirements. The Contractor will maintain records of inspections, monitoring results, waste quantities, disposal certificates, training, incidents, grievances, non-compliances, and corrective actions. The Construction Supervision Consultant will verify compliance through inspections and audits, while the PIU will oversee safeguard implementation and submit semi-annual environmental monitoring reports to ADB. With effective implementation of the EMP, residual environmental and social impacts are expected to remain low to medium and manageable, while the project will deliver long-term benefits through improved metro safety, reliability, operational control, and reduced risks from obsolete legacy infrastructure.
1.12 Environmental Monitoring Plan
52. The Environmental Monitoring Plan for the Baku Metro Signaling Modernization and Operations Digitalization Project defines the monitoring requirements needed to verify that the mitigation measures included in the EMP are properly implemented and effective. The EMoP identifies the parameters to be monitored, monitoring locations, frequency, responsible parties, applicable standards or criteria, reporting requirements, and corrective action procedures. It will form part of the bidding and contract documents and will be implemented throughout pre-construction, installation, stabilization, decommissioning, and operation phases.
53. Monitoring will include both instrumental monitoring and observational monitoring. Instrumental monitoring will cover key environmental and safety-related parameters such as platform microclimate, noise, ventilation conditions, indoor air quality, petroleum hydrocarbons, transformer oil quality, PCB screening, tunnel drainage water quality, contaminated residues, and vibration where works may affect heritage-sensitive station elements. The Baku Metro Laboratory will continue routine monitoring where its capacity is sufficient, while external certified laboratories will be engaged for specialized testing, including PCB analysis, hazardous waste classification, detailed water quality testing, and contaminated sludge or sediment analysis.
54. Observational monitoring will focus on the implementation of EMP requirements at work sites. This will include checking approval and implementation of the Site-Specific EMP and topic-specific plans, compliance with the approved work footprint, waste segregation, prohibition of waste storage in tunnels, depot-based waste handling, secondary containment for liquid waste, spill prevention, protection of tunnel drainage systems, housekeeping, PPE use, electrical isolation, confined-space controls, fire safety, passenger safety, cultural heritage protection, grievance management, and corrective action closure. Monitoring will be carried out by the Contractor and verified by the Construction Supervision Consultant and PIU.
55. The Contractor will maintain an auditable environmental and safety filing system covering monitoring results, inspection checklists, permits, waste transfer notes, disposal certificates, laboratory results, training records, incident reports, non-compliance notices, corrective actions, and grievance records. Monthly environmental, health and safety reports will be submitted to the PIU and Construction Supervision Consultant, while the PIU will prepare semi-annual environmental monitoring reports for submission to ADB. These reports will summarize EMP implementation, monitoring results, incidents, complaints, non-compliances, corrective actions, and any required updates to the monitoring programme.
1.13 Conclusions and Recommendations
56. The Baku Metro Signaling Modernization and Operations Digitalization Project is assessed as an environmentally and socially acceptable Category B project, provided that the Environmental Management Plan, Environmental Monitoring Plan, grievance mechanism, institutional arrangements, and topic-specific management plans are fully implemented. The project will be carried out within the existing Baku Metro infrastructure and will not require new metro lines, new stations, major excavation, land acquisition, physical displacement, or expansion into natural habitats or protected areas. Therefore, most potential impacts are expected to be localized, temporary, reversible, and manageable through standard and project-specific mitigation measures.
57. The main project risks are associated with implementation in a live underground metro environment and with the decommissioning of old signaling and electrical equipment. Key issues include occupational health and safety, confined-space works, electrical isolation, fire safety, tunnel ventilation, passenger safety, temporary access restrictions, groundwater and drainage protection, hazardous waste, e-waste, oil-filled equipment, and possible PCB contamination. Particular attention is required for the approximately 933 oil-filled choke-transformers and other legacy equipment, which must be inventoried, tested where necessary, segregated, handled under controlled conditions, and transferred only to certified or licensed organizations.
58. It is recommended that the EMP, EMoP, and all topic-specific plans be included in the bidding and contract documents and made binding on the Contractor and subcontractors. Before works begin, the Contractor should prepare a Site-Specific Environmental Management Plan, Waste Management Plan, Hazardous Materials and PCB Management Plan, Occupational Health and Safety Plan, Passenger Safety Plan, Emergency Preparedness and Response Plan, Cultural Heritage Management Plan, Stakeholder Engagement and GRM Plan, and other required procedures. No works should start until relevant method statements, permits, monitoring arrangements, emergency procedures, and waste management arrangements are reviewed and approved by the PIU and Construction Supervision Consultant.
59. Overall, the project is expected to generate significant long-term positive impacts by improving metro safety, reliability, operational efficiency, passenger information, system capacity, and staff technical capacity. With effective implementation of mitigation, monitoring, stakeholder engagement, grievance management, training, and corrective action procedures, residual impacts are expected to remain low to medium and acceptable. The project should therefore proceed subject to strict implementation of ADB safeguard requirements, national legislation, certified hazardous waste management, continued Baku Metro Laboratory monitoring, and regular semi-annual environmental monitoring reporting to ADB.
