Plzensky Prazdroj, A.S.

completed

- 1 - February 23, 2000INTERNATIONAL FINANCE CORPORATIONA Member of the World Bank GroupINTERNATIONAL FINANCE CORPORATIONA Member of the World Bank GroupEnvironmental Review Summary - 1 - February 23, 2000INTERNATIONAL FINANCE CORPORATIONA Member of the World Bank GroupProject Name CZECH REPUBLIC: Plzensky PrazdrojRegion AsiaSector Industry Project No. 0043531. Plzensky Prazdroj (PP) is one of the Czech Republic''s largest breweries with production of the well known Gambrinus and Pilsner Urquell brands. PP''s two biggest breweries and a malting plant are located in Plzen and smaller breweries are located in Beroun, Domazlice and Karlovy Vary. The proposed project is to complete an ongoing investment and restructuring program. The environmental component will involve implementation of proper environmental management plans.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 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 this project were analyzed: • air emissions; • recycling and solid waste management; • effluent treatment; • ambient noise; • fire prevention; • PCB and CFC free equipment; and • general employee health and safety.The information provided about how these potential impacts would be addressed in the PP project is summarized in the paragraphs that follow.3. Air emissions from PP''s facilities are mainly due to boiler operations. The majority of PP''s boilers are gas fueled and are having air emissions well within local requirements and World Bank guidelines. Boilers operated on oil will be converted to gas operation as part of the project and all new gas burners will be low-NOx burners.4. Glass, paper and polyethylene waste from PP is recycled. Waste oil is collected by a specialized company and domestic solid waste is landfilled according to local regulations.5. Internal recycling of sodiumhydroxide from the bottle washing machines are installed and a new project for waste yeast reclamation is being promoted.6. Wastewater from the breweries at Domazlice and Karlovy Vary are supplied to the municipal sewage treatment systems, which are operating in compliance with World Bank guidelines. The malting plant in Plzen is having its own wastewater treatment facility with BOD and TSS discharge concentrations of less than 20 mg/l and is discharging directly to a river. The two major breweries located in Plzen are discharging to the municipal sewage treatment system. The Plzen municipal sewage treatment system is not in compliance with World Bank guidelines at the moment but an upgrade is planned in 1998. PP will, as part of the project, ensure that its wastewater from the breweries in Plzen will be in compliance with Czech national standards revised towards European Union standards or World Bank guidelines by the end of 1998, either by installing additional wastewater treatment systems for the two breweries, or by continuous connection to an upgraded municipal system.7. Ambient noise is not a problem around PP''s breweries. The malting facility in Plzen is operating in compliance with Czech requirements but are exceeding World Bank guidelines at the moment. A green belt of trees has been planted to solve this problem over a period of time.8. A fire prevention program is established at PP. Fire drills are held regularly and emergency education programs for workers are carried out.9. CFC based cooling systems are being phased out and new cooling systems are based on ammonia. PCB containing equipment is phased out and is disposed off in cooperation with SKODA Plzen, a producer of heavy equipment.10. The bottling hall is often one of the more sensitive work places in a brewery. PP requires the use of hearing protection equipment and also requires use of protective glasses at strategic places in the bottling hall, e.g. at the discharge from the bottle washers and pasteurizer. The actual filling machines are enclosed by large guards to avoid health hazard.11. IFC will ensure ongoing compliance with World Bank environmental, health and safety policies and guidelines during the life of the project by evaluating monitoring reports submitted annually to IFC by PP and by conducting periodic supervision.12. Based on its review of available information regarding potential environmental impacts and proposed mitigation measures, IFC concludes that Plzensky Prazdroj''s proposed project is designed to meet World Bank environmental, health and safety policies and guidelines, and host country requirements.niels\czech\plzensky\ers