PAKENSO

completed

ENVIRONMENTAL REVIEW SUMMARY (ERS)Project Name RUSSIA: PakensoRegion Europe Sector General Manufacturing Project No. 008987 April 21, 1998________________________________________________________________________1. Pakenso Oy, a leading Finnish paper packaging company, has formed a Russian subsidiary, ZAO Pakenso, to build and operate a corrugated box production facility at balabanovo, 100 km south-west of Moscow. This facility will be able to produce 90 million sq. m of corrugated board per annum. The estimated project cost is US$40 million.2. This is a category B project according to IFC’s environmental review procedure because the specific impacts that may result can be avoided or mitigated by adhering to generally recognized performance standards, guidelines or design criteria. The project does not involve loss of natural habitats, nor is there resettlement or other significant adverse social impacts. 3. The review of this project consisted of appraising technical and environmental information submitted by the project sponsor. An engineer from the Technical and Environment Department visited the site as part of the appraisal. 4. The following potential environmental, social and health and safety issues relating to the existing operation and the proposed project were analyzed:· corporate policy;· land use changes; · adhesive and ink characteristics;· effluent treatment and disposal;· solid waste disposal;· air/noise pollution;· health and safety;· fire safety and;· Sustainable sources of material.Corporate policy5. The Pakenso Group has an environmental policy and implements an environmental management system based on ISO 14001. Pakenso Group complies with all regulations and furthermore is committed to continuous improvement throughout its activities. The Group minimizes waste through training, planning and developing appropriate production processes, using both raw material, energy and water efficiently.They incorporate environmental aspects throughout the life cycle of their products, ensuring that their suppliers have the same commttment to environment. Land use6. The location of the new plant is in the industrial area of Balbanovo city. The plant will be constructed on a site with an existing building. The building was a former needle plant and occupied 4800m2. Additional land adjacent to the building will also be acquired. The total land take will be 9ha. An examination will be conducted of the site to ensure that there is no past contamination. There have been no objections to the project. Adhesive and ink characteristics7. The adhesive used in the process is starch and contains no solvents. The inks are water based and do not contain heavy metals.Effluent treatment and disposal8. Process washing water and sanitary effluent is conveyed to the municipal treatment plant. The project does not discharge into sensitive water courses. Oil and water separators will also be installed in the factory.Solid waste9. Approximately 6000 tonnes of corrugated waste is produced per annum. This is then recycled back into the process for paper and board production. Other waste sych as office waste is placed at the municipal dump.Air/Noise10. There are no air emissions associated with the project. The principal source of noise is from the box corrugator. Noise reduction cabinets are installed on these machines to minimize noise. In addition personal protective equipment is provided. Health and safety/fire safety11. Health and safety issues relate largely to noise from the box corrugator. As stated above silencers are used. If noise exceeds the maximum permissible of 85 dbA, personal protective equipment is issued. All machines are protected according to EC standards. The factory will be equipped with a water reservior (capacity 1000m3), sprinkler system, smoke detector system, and hand extinguishers. 12. 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 Russia requirements, and World Bank policies, and environmental, health and safety guidelines.13. IFC will monitor ongoing compliance with World Bank policies and guidelines during the life of the project by evaluating monitoring reports submitted annually to IFC by the sponsor and by conducting periodic site reviews during project supervision.