Baku Coca Cola

completed

Environmental Review Summary (ERS)Project Name Azerbaijan-Baku Coca-Cola BottlersRegion EuropeSector Food and BeveragesProject No. 007701 August 16, 19961. Baku Coca-Cola Bottlers (BCCB) is constructing a new soft drink bottling facility in Baku for production of beverages under license from Coca-Cola Corporation. BCCB is a joint venture between Efes Investments of Turkey, which operates four Coca-Cola bottling companies in Central Asia, and Ilcin Limited, a trading company in Azerbaijan. The plant will have an annual capacity of 60 million liters, using one line operating on three shifts. Water will be obtained from the local spring fed potable water system. Cola concentrate will be purchased from Coca-Cola Corporation and shipped by rail from St. Petersburg or Moscow. Sugar will be bought from a broker and also shipped to the site by rail. Most packaging materials will be imported. One liter, single-use PET bottles will be produced using in-house blow molding equipment, while 0.33 liter, recyclable glass bottles will be purchased from an outside supplier. Glass bottles will be returned to the facility for cleaning and reuse. The 4.2 ha site is located in an area that has previously been used for oil field development. The available space provides adequate space for production/warehouse facilities (8,200 m2), administrative offices (1,500 m2), water storage and parking, plus room for future growth for the addition of a second line.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 appraising technical and environmental information submitted by the project sponsor, and the technical appraisal and site review completed by IFC’s Technical and Environment Department staff. The following potential environmental, health and safety impacts of the project were analyzed:· water supply;· liquid effluent treatment;· air emissions from electric generating equipment and steam boilers;· solid waste disposal;· potential contamination of the site from present or past uses;· use of CFCs in refrigeration systems; and· workplace noise and safety.The information provided by Baku Coca-Cola about how each of these potential impacts will be addressed in the development of the proposed project is summarized in the paragraphs that follow.3. Availability of suitable water resources was a key consideration in the choice of the plant site. There are no suitable surface or underground water resources in the immediate Baku area. The source of production water is water from the Sorlar spring located about 150 km from Baku, which the municipality brings by pipeline to a central potable water storage facility in Sulutepe for distribution. Committed usage is currently 25,000 m3/hr out of a system capacity of 40,000 m3/hr; the remaining capacity is ample to supply the plant’s projected sales over the next 5 years. Water will be supplied to the plant through a 900 meter long extension constructed by BCCB from an existing municipal distribution pipeline to the north of the site. Using a procedure approved by Coca-Cola Corporation, BCCB will disinfect and treat the water prior to use.4. BCCB has obtained the necessary permits to discharge up to 30 m3/hr of waste water into the municipal sewer system and waste water treatment facility, with the understanding that the company would make improvements to the system, which would include the installation of a collator (on the main system) which measures pH prior to discharge. Rinse water from the plant will be collected and recycled.5. The plant is connected to the local power grid and has four separate lines to bring power to the plant. The company will also install a diesel powered 1,750 KVA emergency generator to provide backup for key plant systems. Steam and hot water for the bottling process will be provided by two diesel fuel/natural gas fired boilers, each with a steam output of 5,000 kg/hr. Both the generator and boiler will comply with current European environmental standards. Diesel fuel for the boilers and backup generator will be stored onsite in secure, stainless steel tanks.6. Solid waste from the plant will consist of scrap packaging materials, domestic trash and residue (lime and diatomaceous earth) from water treatment processes. Wastes will be disposed of at designated landfill sites in the Baku area.7. A Phase I Environmental Site Assessment prepared in January 1995, and other available information, indicate that oil exploration and production has historically occurred on the site, and continues in many areas of Baku. There are seven decommissioned oil wells on the area granted to the plant; all have been closed and cemented. Site contamination from oil production can result from both onsite and offsite activities. An area free from surface contamination has been selected for siting the plant, for which construction is now well underway.8. All land in Azerbaijan is owned by the government, which grants land usage rights. BCCB’s use of the proposed site has been granted for an indefinite term by the City Government of Baku. BCCB has obtained indemnification for past site contamination from the City Government of Baku for the use of the property.9. The air cooling as well as refrigeration systems used in the plant will utilize ammonia (NH3), therefore, all cooling and refrigeration equipment will be CFC free.10. The plant will comply with all fire, health and other safety precautions as required by local regulations. Fire alarms and fire fighting equipment will be built into the project, and procedures are being developed for fire and medical emergencies. Use of personal protective equipment will be mandatory in relevant workshops. Noise levels are expected to below the 85 dBA threshold requirement for hearing protection. Training programs are being developed, to include onsite training, seminars, video presentations and brochures. Potentially hazardous materials associated with plant processes include ammonia (NH3), caustic (NaOH), pressurized carbon dioxide (CO2) and sodium hypochlorite (NaOCl). Proper procedures will be put in place for the handling, storage and consumption of these materials.11. Based on its review of available information regarding potential environmental impacts and proposed mitigation measures, IFC concludes that Baku Coca-Cola Bottlers proposed project will meet World Bank environmental, health and safety policies and guidelines and host country requirements.12. 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 Baku Coca-Cola Bottlers and by conducting periodic supervision.L:\WPEU\KITT\BAKU.ERSAugust 16, 1996 11:06 AM