Adana/Oyak Cement

completed

- 2 - April 22, 1998International Finance CorporationA Member of the World Bank GroupInternational Finance CorporationA Member of the World Bank GroupEnvironmental Review Summary (ERS)Project Name TURKEY-Adana CementRegion TurkeySector Cement Project No. 008537 April 22, 19981. Adana Cement (Adana) is a publicly traded company owned 55.6% by Ordu Yardimlasma Kurumu (OYAK) operating a cement production facility in Adana, Turkey. The proposed project involves modernization and upgrading of Adana’s existing facilities, including installation of an up to 50 MW captive generation plant. The resulting production capacity will be 2.3 million tons of cement per year.2. This is a category B project according to IFC’s environmental review procedure because specific impacts may result which can be avoided or mitigated by adhering to generally recognized performance standards, guidelines or design criteria. The review of this project consisted of information submitted by the project sponsor and the technical appraisal and site review completed by a specialist consultant on behalf of IFC Technical and Environment Department staff. The following potential environmental, health, and safety impacts of this project were analyzed:· site location and land use;· air emissions;· wastewater treatment;· re-vegetation of quarries;· noise; and· health and safety management.Information provided on how these potential impacts would be addressed in the Adana project is summarized in the paragraphs that follow.3. The modernization project does not require new land and the IFC financed project is therefore located within Adana’s existing site. The area occupied by Adana is situated about twelve kilometers from the city of Adana and includes limestone and clay quarries.4. Adana currently has four cement kilns. One of these kilns is already in compliance with World Bank guidelines, whereas the three others have dust emissions of around 100 mg/Ncm, compared to World Bank guidelines of 50 mg/Ncm. A renovation and update of these kilns are not part of the IFC project, but the company has committed to decide within two years if these kilns will continue operations and within the next year either have them retrofitted and brought in compliance with World Bank guidelines or de-commissioned. The project includes renovation of the milling facilities. These facilities will comply with the World Bank dust emission guidelines after the renovation. A new captive power plant will be build to comply with both local requirements and World Bank guidelines from day one of operation, which means particulate emissions of maximum 50 mg/Ncm, sulfur dioxide emissions of maximum 0.2 tpd/MW, and nitrogen oxides below the fuel specific limits. Fuel selection is still ongoing as well as final design to reflect the selected fuel. The final criteria will be reviewed and subjected to IFC approval for compliance before disbursement.5. The amount of wastewater discharged from the plant is low. Adana has a biological wastewater treatment plant and will ensure that the discharge water comply with both local requirements and World Bank guidelines, e.g. 50 mg BOD/liter and 50 mg TSS/liter.6. The site area and the quarries has an ongoing program for re-vegetation. This program has over the years been very successful, and provides a positive dust reducing effect on ambient air conditions.7. During blasting operations in the quarries noise levels reach 105 dBA. These operations are however remote and time limited. The cement plant it self is operating with noise levels from 67-106 dBA. In areas were the noise levels exceed 85 dBA, e.g. in milling operations, the employee will be provided with and required to use hearing protection.8. Adana has a separate health and safety department. Statistics on accidents has been meticulously maintained over the years and show levels around 30 accidents per 1,000,000 working hour. This accident rate is less than half of the maximum acceptable in Turkey. Adana also has a well equipped fire brigade, and employees receive safety related training on a continuous basis.9. IFC will monitor ongoing compliance with World Bank environmental, health and safety policies and guidelines during the lifetime of the project by evaluating reports submitted annually to IFC by Adana Cement and by conducting periodic supervision.10. Based on its review of available information regarding potential environmental impacts and proposed mitigation measures, IFC concludes that Adana Cement’s proposed project will meet World Bank environmental, health and safety policies and guidelines, and host country requirements.