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Environmental classification and rationale
The project has been screened A/1, requiring environmental and social due diligence, consisting of an environmental audit of the existing power plant and an environmental and social impact assessment (ESIA) of the planned investment in line with the Bank’s Environmental Policy (2003) and Public Information Policy. The project is also subject to Russian OVOS requirements.
Due diligence undertaken and outcomes
An Environmental and social due diligence was undertaken of the Project by independent consultants and the Bank. This included an Environmental and Social Due Diligence audit and an Environmental and Social Impact Assessment in line with Bank requirements. The Project will also be subject to Russian EIA requirements.
The environmental and social impact from the replacement of two low efficiency gas-fired units with modern state-of-the-art CCGT units will result in the achievement of enhanced environmental performance and lower carbon emission from the plant. The new unit will result in a significant increase in energy efficiency as well as lower emissions of NOx and CO2 per kWh of generated electricity. The old units will be placed in cold storage.
The environmental assessment confirmed that the new units will be constructed to meet the EU Best Available Techniques (BAT) philosophy and comply with the Large Combustion Plant (LCP) Directive for new gas fired plants. The overall rehabilitation of other units at the plant will also improve the environmental standing of the plant and overall carbon emissions.
The environmental and social due diligence has confirmed that the existing assets are well managed and are in compliance with Russian Federation requirements and the investment programme will allow the plant to meet best international practice. The planned modernization programme will improve efficiency as well as environmental management at the existing plant, although additional investment will be required in the future to further improve the plants efficiency levels.
An Environmental and Social Action Plan (ESAP) will be developed based on the due diligence. This includes the requirements that the new plant is constructed in line with national and EU environmental standards and a commitment has been obtained for the plant to further increase energy efficiency levels of existing units as well as to introduce continuous emission monitoring systems and an environmental, health and safety management system.
Disclosure of information and consultation
The Project is subject to a public consultation and a disclosure plan (PCDP) developed and approved by the Bank. Disclosed materials include:
- 2008 ESIA Non Technical Summary in Russian and English
- 2008 Environmental and Social Impact Statement, Main Report plus appendices in Russian
- 2007 Public Consultation and Disclosure Plan (PCDP) in Russian and English
The materials are available in hard copy at the following locations in Russia:
- Nevinnomysskaya GRES Power Plant
Contact: Ms Irina Ushakova
Phone: (86554) 5-05-89, (86554) 5-01-11
Fax: (86554) 5-05-89
E-mail: Ushakova_ia@nevgres.ogk-5.com
- OGK 5 Headquarters
10A/2 4th Setunsky proezd
Moscow 119136
Contact: Mr Vasily Zakharov
Phone: +7 (495) 380-02-30 ext. 5324
Fax: +7 (495) 380-02-39
E-mail: zakharov_vs@ogk-5.com
- EBRD Regional Office in Moscow
6 Gasheka Street
Moscow 125047
Contact: Mr Vadim Dormidontov, Senior Banker
Phone: +7 (495) 787 1111
Fax +7 (495) 787 1122
E-mail: dormidov@ebrd.com
The EIA package and Executive Summary have also been released for public review by the project sponsor on its website
http://www.ogk-5.com/ru/about_n/safety_n/
http://www.ogk-5.com/en/susta/envirpro/
and released locally in the following locations:
- Nevinnomysskaya GRES Power Plant
Contact: Ms Irina Ushakova
Phone: (86554) 5-05-89, (86554) 5-01-11
Fax: (86554) 5-05-89
E-mail: Ushakova_ia@nevgres.ogk-5.com
- Nevinnomyssk Public Library
B. Mira 16-a
Nevinnomyssk
Stavropol Krai, Russia
Additionally the executive summary is available on the EBRD internet sites at www.ebrd.com
Monitoring and reporting
The Company will monitor the environmental impact of its operations in accordance with national law and regulations. The Bank will evaluate the project'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.
The Bank will undertake monitoring of the Project, inclusive of site visits by Bank staff as well as independent audits and an additional commissioning audit once the plant has been constructed.
There is an Environmental Impact Assesment available for this project.
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