Georgia Glass & Mineral Water Company

completed

Environmental Review Summary (ERS)Project Name GEORGIA: Georgia Glass and Mineral Water (GGMW)Region Eastern Europe Sector GlassProject No. 7777 Date: November 13, 1996 1. The objective of this project is to revive the once flourishing Georgian production of bottled mineral water and its market. The brand name “Borjomi”, after the town where the sources are located, was and still is well known throughout Russia and the former Soviet Union, where it had been sold for many years. Production of Borjomi mineral water came to virtual standstill in 1994, during the economic crisis in Georgia. Revival of bottled water production will involve three components:· production of bottles at the existing Khashuri plant;· bottling of Borjomi water in Khashuri bottles at two existing Borjomi plants; and· marketing and distribution of the bottled water, mainly in Russia and Georgia, in a first phase.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 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 are considered of most significance:· air emissions and other discharges from the bottle making operation;· potential contamination of the mineral water supply; and· the impact of both the bottle making operation (in particular) and the two bottling operations on the Borjomi Valley, which has been designated as a national park.3. As a result of the appraisal, the project sponsor has developed a Corrective Action Plan (CAP) to address and where feasible, avoid or mitigate the potential impacts stated above. Issue specific information from the CAP is provided below.4. Currently, the Khashuri bottle manufacturing plant is operating one furnace rated at 20 mmbtu/hr. The NOx. emissions from this furnace will comply with the World Bank guideline of 1,400 mg/Nm3. The furnace is equipped with an electrostatic precipitator to reduce emissions of particulates below the World Bank guideline of 50 mg/Nm3. Because the furnace is fired with natural gas, SO2 emissions are within the World Bank guideline of 2,000 mg/Nm3.5. The Borjomi plant discharges untreated organic effluents to the river when the carbon dioxide plant is running. In addition, fuel for CO2 production is stored in unlined underground tanks. Both conditions pose potential threats of surface and groundwater contamination. The sponsor plans to discontinue the manufacture of CO2, using instead CO2 from a nearby natural reservoir. As a result, CO2 emissions, effluent discharge and fuel leakage will no longer pose potential environmental issues.6. An evaluation of past fuel leakage and effluent discharge indicates that the likelihood of contamination of the water supply is small. According to the analysis, the water source is protected by the depth of the impermeable rocks and the seal between these and the drillhole construction, and by the upward flow of artesian wellwater, which prevents downward flow of pollutants.7. The Borjomi Valley was designated a national park to ensure protection of the water supply. Its designation provided for continued production of Borjomi water. The glass manufacturing and bottling plants are therefore consistent with the intended use of the Borjomi Valley and the water source.8. Based on its review of available information regarding potential environmental impacts and proposed mitigation measures, IFC concludes that, with the implementation of the CAP, the proposed project will meet the applicable World Bank environmental, health and safety policies and guidelines and host country requirements.9. IFC will monitor the progress of CAP implementation as well as ongoing compliance with World Bank environmental, health and safety policies and guidelines. During the lifetime of the project, GGMW will be required to submit annual evaluation reports and the results from periodic supervision visits. IFC will supervise the project to ensure ongoing compliance with the applicable World Bank environmental, health and safety policies and guidelines that country requirements.