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Environmental classification and rational
The project was
screened B/1 requiring an environmental audit and an environmental analysis.
The EBRD’s regional venture fund, the Eagle Venture Fund (“EVF”) investment in
the Company in 1995 was preceded by an independent environmental audit of the
Company. EVF’s annual environmental reporting has shown that the Company has
achieved compliance with national requirements for environmental health and
safety and that a number of actions to improve environmental performance were
carried out during the period 1995 to 2005.
An update of the environmental audit and an environmental analysis were
undertaken by independent environmental consultants in March 2005.
Key environmental issues and mitigation
The Company is
currently undertaking additional investment in upgrading its current
wastewater treatment. The environmental investigations showed that the project
will have no significant impacts on the environment. The general conclusion of
the investigations was that environmental, health and safety issues have been
managed by the Company. Some items related to air emissions, wastewater
discharges, environmental management, materials storage and handling and
energy conservation were noted.
As part of the investment programme, water consumption and wastewater
discharges will be minimised with water circulation system. Waste and
hazardous waste management will be organised in accordance with the principles
of sorting, recycling and appropriate disposal. The Company will implement ISO
14001 Environmental Management System for its operations. These measures will
ensure that the environmental issues will be professionally managed with a
view to prevent or minimise impacts on staff and local population as well as
on the environment.
If new furnaces are constructed, SGD will design and construct these new
additional furnaces in compliance with Russian laws and regulations and take
into consideration EU environmental standards, notably Best Available
Techniques (BAT) under EU Integrated Pollution Prevention and Control (IPPC)
Directive.
Summary of Environmental Action Plan
An environmental action
plan (“EAP”) has been agreed between SGD and the Bank to address the findings
of the environmental due diligence, aiming at bringing the Company into
compliance with Saint Gobain internal environmental standards and in line with
international practice. A number of investments in air abatement equipment are
planned to improve workers’ health & safety. An IPPC BAT assessment is to be
undertaken by the company by 2010 and all new investments post 2008 will be
designed to take into consideration IPPC requirements. IPPC implementation is
seen as a long term goal, not covered fully by the EAP at this stage.
Monitoring and reporting
The Company will monitor the
environmental impact of its operations in accordance with Russian law and
regulations. The Bank will evaluate the Company's compliance with the
applicable environmental and social requirements during the lifetime of the
Project by reviewing annual environmental reports prepared for the Project
covering:
(i) ongoing performance of project-specific environmental, health and safety
activities as reflected in the results of periodic and quantitative sampling
and measuring programmes, and
(ii) the status of implementation of environmental mitigation and improvement
measures. The Bank’s representatives will also conduct periodic site
supervision visits when deemed appropriate.
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