Romanian Efes Brewery S.A.

completed

- 3 - December 19, 1996INTERNATIONAL FINANCE CORPORATIONA Member of the World Bank GroupINTERNATIONAL FINANCE CORPORATIONA Member of the World Bank GroupEnvironmental Review Summary (ERS)Project Name Romania-Romanian Efes Brewery S.A.Region Central and Eastern EuropeSector Beverage ProcessingProject No. 007869 1. This project involves the construction and operation of a 750,000 hl per year brewery on a 12 ha greenfield site on the outskirts of Ploesti approximately 60 km from Bucharest. The site is located on a major road and rail network with good access to all parts of Romania. 2. The sponsor is an experienced Turkish brewer and the product will be similar to that currently produced by the company for the Turkish market. Efes’s plant will incorporate modern brewing and packaging technologies. The packaging mix will include primarily 50 cl glass bottles, with some 50 l kegs and 33 cl glass bottles; all containers will be recyclable and refilled at the brewery. Distribution will be throughout Romania, using both direct delivery and exclusive retailers. 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 information submitted by the project sponsor and the technical appraisal and site review completed by the Technical and Environment Department staff. The following potential environmental, health and safety impacts of this project were analyzed:· water supply;· liquid effluent treatment;· air emissions from brewing processes, backup generators and steam boilers;· solid waste reuse and disposal;· potential contamination of sites from present or past uses;· use of CFCs in refrigeration systems;· fire and explosion prevention; and· workplace noise and safety.The information provided about how these potential impacts would be addressed in the Efes project is summarized in the paragraphs that follow.4. Efes will obtain the water for processing and domestic use from six permitted wells. The project site is located north west of the city as well as north west of the petrochemical complex. The aquifer flows in a south easterly direction so that the water supply to Efes will not be affected by the petrochemical plants. The wells’ water quality will comply with applicable drinking water standards. Efes will submit water quality analysis results to IFC prior to disbursement.5. The process and domestic waste waters from the brewery will be treated by a 100,000 liter per hour anaerobic and aerobic biological system followed by dissolved air flotation. This system has performed very well at a new Ankara brewery. The treated effluent will comply with the World Bank guidelines for liquid effluents, including pH of 6-9, BOD5 £ 50 mg/l and total suspended solids £ 50 mg/l.6. Efes will install two 10 ton/hr steam boilers. The boilers will be fired with natural gas or low sulfur (< 0.5%) liquid fuel oil to comply with World Bank ambient air quality and stack emissions guidelines including an SO2 stack emission of less than 230 g/million BTU. The fuel oil tanks will be provided with secondary containment to prevent spills from impacting water resources.7. The product containers will be returned to the facility for cleaning and reuse. Non recyclable solid waste from the brewery will be disposed of at an approved landfill, in accordance with local regulations.8. The brewery will be located at a vacant site on the outskirts of Ploesti. The site was visited by IFC technical staff who found that the project area was formerly zoned as agricultural and it has not been previously used for industrial or other activities which could have contaminated the site. The project will not involve the resettlement of residents or the loss of productive agricultural land. 9. The sponsor will not use CFCs in central cooling systems. Instead, ammonia will be used as the refrigerant for the cooling systems.10. Efes will install cyclones and automatic filters on air handling equipment in the malt milling area to control dust. The chemicals to be used in the process (i.e., acid and caustic cleaning materials) will be received in bulk liquid form and handled by automatic systems to minimize employee exposure to the chemicals. The chemical materials and fuel storage tanks will be equipped with vacuum and pressure relief valves. The acid and caustic tanks will be provided with secondary containment to prevent spills from impacting water resources.11. The sponsor will install sprinkler systems in the warehouse areas. Additional fire protection will be provided by a main fire main, fire hoses and carbon dioxide extinguishers. The sponsor will provide proper training to the plant fire brigade. The malt milling areas will have explosion panels in place. Fire and explosion risks will be kept low by adhering to good cleaning standards and prevention of dust build-up in silos. Emergency power will be provided by a 125 kw electrical generator. The sponsor will follow the earthquake protection requirements as specified in the Romanian construction code. 12. The brewery is not likely to generate any significant noise outside the buildings. The Project will comply with the World Bank ambient noise guidelines. Employees in the plant will be required to use hearing protection equipment when noise levels are above 85 dBA. The use of protective glasses will be mandatory in the bottling area. The sponsor will provide employees with training on accident prevention, fire prevention, emergency procedures and use of personnel protective equipment. The sponsor will maintain and report accident statistics.13. 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 Efes and by conducting periodic supervision.14. Based on its review of available information regarding potential environmental impacts and proposed mitigation measures, IFC concludes that Efes'' proposed project is designed to meet World Bank environmental, health and safety policies and guidelines, and Romanian requirements.P:\CTEEU\EFES.ERSDecember 19, 1996 11:14 AM