PLM Red Snake Project

completed

- 3 - International Finance CorporationA Member of the World Bank GroupInternational Finance CorporationA Member of the World Bank GroupEnvironmental Review Summary (ERS) DRAFTProject Name RUSSIA: PBCM Metal Can ManufacturingRegion EuropeSector General ManufacturingProject No. 007817 May 1, 19971. The project involves the construction of a greenfield metal can manufacturing facility in Naro-Fominsk District, 70 km southwest of Moscow. The facility will be located on a 23.5 hectare site which has been leased for 49 years. The site has good access to existing transportation net works, electrical power and gas lines. This state-of-the-art plant includes two high speed lines with a capacity of 2,400 cans per minute and annual production of 1.75 billion metal can bodies per year. If required the building can be extended to accommodate a third can line and end production.2. The major Sponsor, PLM AB, of Sweden is one of Europe’s leading beverage container manufacturing companies. PLM’s beverage can division will provide training, managerial and technical support to PBCM during the initial years of operation. Ball Corporation of the U.S., a world leader in two-piece beverage can technology will provide the technology, and participate as an equity partner.3. 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. The key environmental, health and safety issues considered in this project include:· liquid effluents;· air emissions;· recycling; and· life safety, including emergency response.4. The project site was previously classified as agricultural land but has not been cultivated in recent years. It is covered by grasses and shrubs. The water requirements for the plant are estimated at 1,080 m/day. Ground water is accessible on site and will be accessed through the development of several wells on the project property. The facility development includes the construction of water purification, waste water treatment and recycling systems. Waste water including treated process water and domestic sewage will be discharged via pipeline to the Naro-Fominsk sewage treatment plant.5. The boiler system and process drying will be fueled with natural gas. The plant will be connected to the existing electrical grid operated by Mosenergo via a new substation. The substation will be constructed as part of the project.6. PBCM will adopt PLM’s environmental operating policies which reflect a strong commitment to compliance with legislation, regulations and corporate environmental standards. PLM is committed to supporting the development of a program designed specifically to promote the recycling of beverage cans in Russia. PLM’s management is actively involved in RICPEN (Russian Industrial Consortium for Protecting the Environment). This is an association of packagers dedicated to reducing the production of waste and ensuring an integrated waste management program becomes functional in Russia. PLM’s environmental management system is well defined and should allow the PBCM operations to meet or exceed the environmental requirements. The program for PBCM will follow corresponding PLM environmental programs and may over time be adapted to ISO14000 or the European Union EMAS Directive.7. Pilot recycling projects will be introduced in Moscow and St. Petersburg in 1997. They will be gradually expanded in 1998 and 1999 with the objective of having a reasonable participation rate by the end of 2000. The objective is to foster a reasonable behavior of Russian consumers to canned goods by offering convenient opportunities and stimulate participation in can recycling. An additional objective is to collect valuable material and prevent littering. The project will include significant consultation (i.e. with NGO’s) and education components.8. Employees will be trained to ensure safe working practices including orientation for emergency response situations. The house keeping standards in PLM’s existing production facilities are of a high standard and will be adopted in the new facilities. Noise levels in the production facility will be at levels requiring the use of mandatory hearing protection. PBCM will conduct training programs and monitor use to ensure compliance.9. Provisions for fire protection and prevention in the new facilities will comply with World Bank guidelines. This will include alarm and sprinkler systems, smoke detectors, hydrant systems, fire evacuation plans and training of a fire brigade. A dry radial sprinkler system will be used for the warehouse.10. 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 PBCM and by conducting periodic supervision.11. Based on its review of available information regarding potential environmental impacts and proposed mitigation measures, IFC concludes that the proposed PBCM will meet World Bank environmental, health and safety policies and guidelines and host country requirements.L:\CEMD3\BALL-PLM\6-DECMTG\ERS.DOCMay 1, 1997 3:56 PM