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Screening categories and rationale for classification
A retail development such as this project has some environmental impacts which
can be readily identified and prevented through adequate mitigation measures.
For the above reasons, the EBRD has classified the project B/1 and required an
environmental due diligence of the Project.
Information reviewed during the environmental appraisal
The environmental due diligence has been based on a tailored Environmental
Questionnaire and follow-up information gathering and analysis through
communication with the Client and the Sponsor. This has included meetings
with Client and Sponsor staff at the headquarters and at one of the discount
hypermarket stores in Bucharest.
Environmental Impacts and mitigation measures
The development and operation of discount hypermarkets and can be associated
with a number of environmental issues, which can be readily addressed apart of
site specific due diligence and permitting requirements. These can range from
noise impacts during construction and operation of the stores, to risk of
historic contamination resulting from former use of any sites. The Client has
developed environmental due diligence procedures, and for instance undertakes
environmental assessment of all sites before developing new stores. This
addresses the risk of soil and groundwater contamination from previous site
activates. In line with Romanian legislation, the Client undertakes
environmental impact assessments (EIA) of all new stores, as required by
Romanian legislation for such developments, which among other address any
noise and traffic impacts associated with such developments. This is then
subject to the statutory consultation process. To date all stores have
obtained the necessary permits and have implemented any mitigation factors
required by the regulators as part of the permitting process. The
environmental due diligence has not identified any major environmental or
social issues associated with stores in operation and/or under construction at
this stage.
In line with EBRD procedures, the Client is required to ensure that each store
will meet the relevant Romanian and EU environmental, health and safety
standards and requirements as well as to submit an annual environmental,
health and safety report to the Bank.
Labour Issues
The Client will be required to observe applicable Romanian laws and standards
on employment, as well as standards consistent with the Conventions of the
International Labour Organisation relating to the employment of children and
young people, discrimination at work, and forced labour. During the course of
due diligence visit by EBRD staff the Client explained the management systems
and procedures which they have put in place to seek to ensure compliance with
national labour legislation. These include procedures for the recording and
verification of working hours, overtime and remuneration throughout the
company and clear recruitment procedures based a template devised by the
central HR function. Managers are also given specific training on people
management issues.
Monitoring
The Bank will evaluate the project’s compliance with the applicable
environmental, health, safety and labour requirements during the lifetime of
the project by reviewing annual environmental reports (AER) and any relevant
information prepared for the project covering the status of implementation of
environmental and labour management measures as well as visits to the Client
and eventually selected stores.
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