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Environmental classification and rationale
According to EBRD's Environmental Policy and Procedures this project has been categorised B/1. The project involves the provision of a loan, to an existing company, to undertake the expansion of production and warehousing, principally at the company's Burundai facility located outside Almaty. EBRD due diligence was structured to understand current environment, health and safety ("EHS") impacts of the Company and issues associated with the current and past operations. For this reason the Bank conducted an analysis of the expansion plans and audit of the existing facilities.
Information reviewed during the environmental appraisal
Almaty Bottlers submitted a range of information to the Bank including an audit report performed as part of the validation of the Company's ISO 14001 certificate. The Bank's aim was, among other things, to assess facility compliance with national and applicable EU environment, health and safety (“EHS”) standards, assess specific risks associated with past and current operations and if necessary agree actions for the improvement of EHS management.
Key environmental issues and mitigation
Environmental, health and safety impacts:
While the bottling of drinks is associated with some EHS issues these are typically easy to identify and possible to manage. Issues include provision of an adequate water supply, minimisation of waste waters and appropriate waste water treatment, improvement of energy efficiency, maintenance of hygiene, and ensuring occupational health and safety.
Regulatory compliance:
The operations of Almaty Bottlers are currently compliant with national environmental requirements. The company is subject to regular inspections by a range of government authorities including those in charge of environment, health and safety, hygiene and fire safety. In terms of European Union standards, the Bank has made a comparison of Almaty Bottlers’ activities against EU's Food, Drink and Milk Industries Reference Document on Best Available Techniques (BAT"). For those areas identified as key for the drinks industry the Company is generally complying with the requirements of BAT. Under its agreement with the Bank Almaty Bottlers is committed to maintaining compliance with both national and EU requirements for environment, health and safety.
Environmental management:
Almaty Bottlers’ Burundai facility is certified to ISO 14001 while its Almaty facility aims to be ISO 14001 certified by the end of 2008. In either being, or aiming to be ISO certified, the facilities are subject to regular audits to ensure that the key environmental issues have been identified and that the necessary management and procedures are in place.
Environmental opportunities
The Company is aware of the benefits of improving eco-efficiency and is already committed to implementing actions which minimize energy use and water consumption. Such actions include the implementation of more energy efficient techniques for the production of PET bottles and an increase in the recycling of production waters.
Summary of Environmental Action Plan
As a result of previous third-party audits undertaken, the Company has been implementing a corrective action plan. Most items on this plan are now complete. Looking forward, the Bank will request the Company to provide the Bank with copies of future audits undertaken both as part of the maintenance of existing certifications and as part of new certifications achieved.
Disclosure of information and consultation
The Company will carry out its activities in accordance with national requirements for public disclosure and consultation. Additionally, the Company is disclosing this summary of key environmental issues locally, in accordance with EBRD requirements, prior to the EBRD's final management review of the project.
Monitoring and reporting
The company will provide the Bank with an annual environmental report and immediate notification of any incidents or accidents likely to have an effect on the environment or worker and public safety.
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