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Environmental classification and rationale
The Project is associated with a limited number of specific environmental issues. These issues can be readily identified and, in reconstruction projects like this, easily mitigated with best available technology, project design and work practises. The project is reconstruction of the facilities of a former cement clinker plant and adjacent quarries which had been operated between 1965 and 1995. There are no known environmentally valuable or sensitive areas in the vicinity of the site. The project is not expected to result in significant adverse environmental impacts and these can be adequately addressed in an Environmental Analysis. For the above mentioned reasons the project was screened B/1.
Current facilities
A joint IFC/EBRD environmental appraisal team conducted a review of the site and of the existing facilities. The environmental specialists did not identify any potentially significant liabilities, risks or public concerns. The review satisfied the Bank’s audit requirement and no independent third party site investigation was commissioned.
New investments
The environmental impact assessment study on the re-opening of the limestone and clay quarries, carried out in accordance with Albanian law, confirmed that all adverse environmental impacts are adequately identified and mitigated. The limestone quarry has reserves estimated at 83 years of use and the current clay quarry has an estimated 18 year reserve. No new quarries are therefore needed in the near future. Usage and reclamation plans for the current quarries will be prepared, including plans for removal and holding of overburden until reclamation can be carried out. The usage and reclamation plan will also include actions to be taken to ensure appropriate land profiles at the end of the reclamation process.
A draft environmental impact assessment study and technical project documentation showed that the new dry kiln clinker production plant will use technology, which meets EU Integrated Pollution Prevention and Control (IPPC) Directive’s Best Available Technology (BAT) and World Bank environmental guidelines, including dust, SO2, and NOx emission limit levels. The cement milling and bagging facilities will also be upgraded and renewed to achieve these standards, thereby eliminating current fugitive emission problems. While the plant is based on dry technology there will be a need for both domestic (canteen/toilets/etc.) water supply and cooling water for some units. Any solid waste generated will be disposed of using licensed handlers.
For the above mentioned reasons, the project is not expected to result in significant adverse impacts.
Environmental opportunities
The kiln operation will initially be based on coal and pet coke, which are both fuel sources with relatively high CO2 emissions. The change from wet to dry process will bring the energy consumption for each unit of clinker down by roughly 50% and the CO2 emission per ton cement will therefore be significantly lower than in the previous operation. Given the increase of the production capacity, the total emissions are estimated to remain at the same level as in 1995 before discontinuation of the former clinker production. Alternative fuels and further energy conservation opportunities will be investigated with the help of the Bank’s Energy Efficiency Unit.
The sponsor is committed to design the reconstruction to meet EU environmental standards. The project will comply with relevant Albanian and EU (BREF under EU IPPC directive outlining BAT standards of cement and lime production) environmental, health and safety standards and requirements. Occupational Health and Safety performance has not been satisfactory in the past and FKCF will implement a comprehensive action plan to reverse the historic lack of attention; a training program for workplace safety and fire response will be implemented by the end of 2004, and health and safety performance standards for workers, supervisors, and managers will be developed and enforced. To further this culture change at the FKCF also intends to obtain ISO 9001 Quality Assurance and ISO 14001 Environmental Management System certifications for its operations.
Disclosure of information and consultation
The sponsor has disclosed locally a summary of the environmental issues of the project in accordance with the provisions for public information for the Bank’s “B” category project on 4th of June.
Environmental monitoring
The Bank will evaluate the project's compliance with the applicable Albanian and EU environmental, health and safety standards and social requirements during the lifetime of the project by reviewing the annual environmental reports (AERs) prepared for the project covering ongoing performance of project-specific environmental, health and safety and social activities. The Bank will also carry out a monitoring visit to verify the environmental performance of the plant after its start-up and periodic site supervision visits over the lifetime of the project.
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