Nikol-Fert Gajdadzievi

completed

Environmental Review Summary (ERS)Project Name SEF: FYR MACEDONIA: Nikol-FertRegion EuropeSector ManufacturingProject No. 008112 May 14, 19971. The project involves the expansion of their current steel operations as follows: (i) equipment to produce up to 50,000 tons of different types of steel wires from billets and (ii) construction of additional manufacturing facilities adjacent to the present plant. This project will improve efficiency, product diversification to meet increasing demand and take advantage of market opportunities and increase sales.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 Department staff. The following potential environmental, health and safety impacts of the project were analyzed:· air emissions;· liquid effluents;· hazardous and solid wastes;· noise emissions;· general occupational health and safety in heavy industry;· protection against heat and noise and· fire protection and emergency response.The sponsor has presented plans to address these issues and demonstrate that the proposed project will comply with applicable governmental and World Bank requirements. The information provided about how these potential impacts are addressed in the development of the project is summarized in the paragraphs that follow.3. The land for the project, 8,000 m2, is adjacent to the sponsors present facility. Neither relocation nor impact on sensitive habitats are included in the project. There is a road connecting the existing facility to the main road in the village of Nikolic.4. The 10 ton/hr furnace that burns fuel oil will have filter installed to control air emissions and comply with local requirements and World Bank guidelines. The NOx emissions will be less than 300 mg/Nm3 which is below the 360 mg/Nm3 World Bank guideline. The SOx emissions will be less than the 30 mg/Nm3 which is lower than the 2,000 mg /Nm3 World Bank guideline. The fuel sulfur content will be less than 0.3% which is lower than the 0.5% established in the World Bank guidelines.5. The cooling water used in the process will be recycled. After use, the water will be pumped from the rolling plant into a settling tank where the small steel particles contained in the water will be deposited in the floor of the tank. From the tank, the water will be pumped again into the closed circuit of the rolling mill. The domestic sewage will be treated in the municipal sewage system. 6. Between 4-5 tons/month of steel particles are collected from the settling tank. These wastes are removed from the tank, collected in special containers and properly disposed by a local waste treatment company in compliance with local requirements.7. Noise levels are below 85 dBA complying with World Bank guidelines. The fuel oil storage tank which is located 50 m away from the buildings has double containment to prevents soil contamination in case of a spill. 8. The employees are provided with and required to use personal protective equipment including protective overalls, workboots, gloves, goggles and earplugs, in compliance with World Bank guidelines. All new employees will be trained in safe handling of metal products. Every three months, the employees will receive general occupational health and industrial safety training as agreed by the sponsor and the local authorities. The employees will also be trained on the proper operation of the equipment and all relevant safety measures.9. The flying shears are protected with boxes of sturdy net and the doors are equipped with micro-switches that allow the opening of the doors only when the shears are stopped. The work areas closed to the rolling stands are protected with nets and railings. All the machines and moving parts have protective switches to turn the machine off in case of a malfunction. The sponsor will have fire protection and emergency response procedures in place in compliance with World Bank guidelines.10. Based on its review of available information regarding potential environmental impacts and proposed mitigation measures, IFC concludes that the proposed project is being designed to meet Government of FYR Macedonia requirements, as appropriate, and World Bank policies, and environmental, health and safety guidelines.11. IFC will monitor Nikol-Fert’s ongoing compliance with World Bank policies and guidelines during the life of the project by evaluating annual environmental performance reports submitted by the sponsor along with the financial report to IFC and by conducting periodic site reviews during project supervision.12. The annual environmental performance reports submitted to IFC by the sponsor will as a minimum cover: ongoing environmental management practices; employees training programs; and annual statistics for occupational accidents and illnesses including number of employees, work hours and lost-time incidents.L:\WPEU\JOSEFINA\MACEDONI\NIKOL.ERSMay 10, 1997 9:45 AM