Azmeco

cancelled

The EBRD is considering providing financing of up to USD 120 million to Azmeco to allow for the purchase, construction and operation of an approx. 561,000 tonne p.a Methanol Plant including the possibility of a CO2 Capture Unit. AzMeCo intends to include urea and ammonia production in future development phases i) introduce new and proven technology to Azerbaijan with respect to the construction and operations of the methanol plant, ii) setting standards of corporate governance, transparency and environmental conduct: Azerbaijan Methanol Company (“AzMeCo”or “the Company”) is a limited liability company created specifically to own and operate the plant. Up to USD 120 million financing with 2 separated tranches: Over USD300 million. Screening category The potential environmental and social impacts of the project are site specific and can be readily addressed through mitigation measures. Therefore, the project has been screened B/1 in accordance with the EBRD Environmental Policy (2003). Environmental and social issues An Environmental Analysis of the proposed project and an Environmental Audit of the existing facilities were carried out by independent consultants in 2008. One of the results of the audit was that the soil and groundwater at the project site was found to be contaminated with arsenic. The Company promptly put in place the necessary actions proposed by the Consultants to improve the environmental and safety conditions during the ongoing construction activities (personnel protective equipment, handling and disposal of contaminated soils, wastes, etc.). Other areas that were identified as needing attention were air emissions, waste management, community interaction, and emergency preparedness and response. Mitigation measures have been agreed for those issues. The results of the due diligence indicates that the plant was designed to operate to international standards, and therefore operation of this plant with the provisions of the EAP will ensure that the project complies with National and pertinent EU environmental standards. The Bank has reviewed the potential for an accident or emergency situation, and, the company will complete a series of studies and plans (including development of emergency response plans, HAZOP studies, monitoring plans, etc.) to minimise these risks to the extent possible. The Bank will review these studies when completed. Summary of Environmental and Social Action Plan An Environmental Action Plan (EAP) has been developed as part of the due diligence process. The main items addressed in the EAP can be summarized as follows: The Environmental Review Summary has been placed at the following locations accessible to public: None. Sertaç Yener, CFO, AzMeCo E-mail: Sertac.Yener@AzMeCo.com Tel: +994 125983540