Ramstore

completed

Environmental Review Summary (ERS)Project Name: Kazakkstan: Ramstore-KazRegion: Central Asia, Middle East and North AfricaSector: Retailing (Industrial and Consumer Services)Project No: 0092711. Ramstore is a joint venture between three entities two of which are members of the Koc Group of companies, MIGROS Turk T.A.S. (Koc’s retailing operations) and RAM Dis Ticaret A.S. (Koc’s trading operations) in Turkey. The third, Butya JSC, is a Kazakh trading and investments firm based in Almaty, Kazakhstan. This project involves construction and operation of a hypermarket with an integral shopping mall in central Almaty. The facility is partly built and will go into operation in the second quarter of 1999.2. 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 sponsors 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:· site location and land transfer issues, including minor resettlement;· air emissions;· liquid effluent treatment;· solid waste management; and· fire safety and emergency response.Information provided on how these potential impacts would be addressed in the Ramstore project is summarized in the paragraphs that follow.3. The shopping mall is located in the Samal-2 district of Almaty City on a 2.1 hectare partly developed site. The mall site previously had a total of 45 residents, consisting of 7 families residing in 4 informal dwellings. Though not a part of the mall construction agreement between Rambutya LLP and the Almaty City government, the project contributed about 25% of the cost of a road adjacent to, but not required for the mall. Road construction will require the relocation of about 150 people living in Government-owned flats. These people are being compensated and assisted to relocate to other Government owned flats. The project caused no loss of income or other economic assets. Compensation at replacement value for lost assets was paid, and resettlement to other places in Almaty City was organized. All measures were achieved in consultation with the Project Affected People (PAP), and comply with the law of the Republic of Kazakhstan. PAP signed sale and purchase contracts and compensation agreements. PAP have not filed or otherwise expressed any complaint. If requested, Ramstore will provide additional documentation before disbursement demonstrating compliance with Kazakh regulations and World Bank Group policies on compensation and resettlement.4. The mall will utilize domestic heating from the city. No significant air emission sources are foreseen from the mall.5. The shopping malls will include fast food restaurants. Wastewater from these restaurants will pass fat separators before mixing with the remaining domestic wastewater. The mixed wastewater will then be discharged to the Almaty city sewage and the municipal wastewater treatment system. The local authorities has confirmed that the necessary capacity to treat Ramstore''s wastewater is available.6. Solid waste generated in the malls will be removed by a local authorized waste management company for disposal on the municipal landfill located 15 kilometers from Almaty.7. The malls will all comply with local structural norms. Fire prevention measures are taken, including installation of smoke detectors, sprinklers, fire hoses, controlled ventilation and smoke extraction. Ramstore is committed to follow international recognized codes for the fire and emergency systems. As structural (passive) fire protection is an integral part of traditional soviet fire protection (and structural) codes, this means that the stores will have the best possible combined fire protection systems (e.g. strong passive systems combined with international class active fire fighting systems). All building systems will be monitored from a dispatcher room.8. The project will avoid installation of CFC using equipment, as well as avoid the installation of PCB containing electrical equipment.9. 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 Ramstore and by conducting periodic supervision.10. Based on its review of available information regarding potential environmental impacts and proposed mitigation measures, IFC concludes that Ramstore’s proposed project will meet World Bank environmental, health and safety policies and guidelines and host country requirements.