Holcim

Location:

Azerbaijan

Project number:

35708

Business sector:

Manufacturing and Services

Notice type:

Private

Environmental category:

C

Target board date:

25 Jul 2006

Status:

Complete

PSD disclosed:

03 Mar 2006

Project Description

The Bank’s equity investment will buy common shares representing a substantial minority equity stake in Garadagh Cement O.J.S.C. (the “Company”).

Transition Impact

The main transition impact of the project will derive from the demonstration effect of a successful investment in the cement sector and the setting of standards of corporate governance and business conduct. In addition, the contemplated environmental and efficiency upgrade will assist Garadagh in achieving compliance with the EU environmental standards.

The Client

Garadagh Cement OJSC.

EBRD Finance

USD 10 million equity.

Project Cost

USD 13.3 million.

Environmental Impact

The project has been screened C/1. A site visit and review of existing environmental studies, including an environmental baseline assessment and several studies to assess the levels of air emissions from the plant, showed that while the plant is not new there are several positive environmental factors associated with the facility. These positive factors include that the kilns are gas-fired, the main raw material (limestone) used in the process is waste material from another plant that cuts limestone into construction blocks, all technical water used onsite is waste water from the treatment plant for a nearby village and lastly, there is no industrial wastewater or industrial waste generated from site operations. The Company does not operate a quarry at present.

The review of corporate environmental management showed that sustainable development is a priority to Holcim. It has established high corporate standards for management systems, resource utilisation and CO2, environmental impacts and stakeholder relations which are implemented in their operations world-wide. Holcim is a core member in "The Cement Sustainability Initiative (“CSI”)" of the World Business Council for Sustainable Development (“WBCSD”), and is committed to implement the CSI guidelines at the Garadagh facility.

The main environmental issue from the plant is related to air emissions of dust from the kilns. While the plant generally complies with permitted emission limits, this local value is greater than international standards. The Company is committed to bring the dust emissions in compliance with the EU limit of 50mg/Nm3, which can be achieved either by installation of electrostatic precipitators to the existing wet kilns or by providing a new dry or semi-dry kiln to replace the existing wet kilns. This commitment and other environmental improvement investments and measures have been captured in the Environmental Action Plan (“EAP”) as a condition of the Bank’s participation. The implementation of the EAP will result in a substantial reduction in energy use and air emissions of dust, SO2, NOX and CO2 and bring the plant into compliance with EU environmental standards in accordance with Best Available Techniques guidelines for Cement and Lime production under EU Directive on Integrated Pollution Prevention and Control.

Technical Cooperation

None.

Company Contact

Uwe Koehler, General Director.
Sahil settlement, Salyan highway
Baku AZ-1083
Azerbaijan

Tel: 00994124418888
Fax: 00994124461881

Email: uwe.koehler@garadagh.com

 

Business opportunities

For business opportunities or procurement, contact the client company.

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Text of the PIP

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