SEF Kopex

completed

- 2 - International Finance CorporationA Member of the World Bank GroupEnvironmental Review Summary (ERS)Project Name SEF-BOSNIA & HERZEGOVINA: Kopex-SarajlicRegion EuropeSector Industrial and Consumer ServicesProject No. 008595 May 28, 1998 1. This project involves the expansion of an existing gasoline station/petroleum products distribution facilities network located in the Tuzla Canton. Specifically, Kopex intends to construct two retail gasoline stations with attendant car wash and other complimentary services, with one located in Tuzla and the other in Spionica (which is 3 km from Srebrenik). In addition to the gasoline station, the project also includes the financing of a recently constructed (1997) central service/distribution warehouse on the Spionica site. This warehouse is a center for storage of petroleum fuel, lubricants, and auto parts, and also provides mechanic services for cars, fuel tanker trucks, and heavy construction equipment. Water and electricity are/will be supplied to both sites through connections to the existing infrastructure.2. This is a Category B project, according to IFC’s environmental review procedure because a limited number of specific environmental impacts may result which can be avoided or mitigated by adhering to generally recognized performance standards, guidelines or design criteria. The reviewing of this project consisted of appraising technical and environmental information submitted by the project sponsor and a site visit to the existing operations by IFC’s technical and environmental department staff. The following potential environmental, safety and health impacts of the project were analyzed:· sites settings and conditions;· air emissions and vapor controls;· solid and liquid waste management;· storage and handling of fuels;· fire prevention and emergency response; and· workplace health and safety.The sponsor has presented plans to address these issues and demonstrate that the proposed project will comply with applicable World Bank requirements. The information about how these potential impacts are addressed by Kopex is summarized in the paragraphs that follow.3. The site containing the warehouse and the retail gasoline station in Spionica covers 12,000 m2, and was previously used as pasture land. The Tuzla site covers 4,400 m2 and, is undeveloped. There are no residential or industrial premises in the immediate vicinity of either site, nor are there any nearby environmentally sensitive areas. There have been no objections to the development of either site, and Kopex has obtained the necessary approvals from the municipal and Canton authorities.4. Air emissions are limited to those emitted by the light fuel oil fired heating boilers and incidental fuel vapors generated during fuel transfer operations. The German-manufactured boilers meet World Bank guidelines for particulates, nitrogen oxides, and sulfur dioxide. Fuel pumps are fitted with state-of-the-art vapor recovery systems to minimize emission of volatile compounds during transfer operations.5. Liquid wastes include sanitary effluents, stormwater runoff contaminated with spilled oil and fuel, and waste oils. Sanitary wastewaters will be discharged to the municipal system in compliance with the former Yugoslavia’s requirements (the government of Bosnia & Herzegovina has not yet developed an environmental regulatory framework). Contaminated surface runoff will be diverted through a series of culverts which in, in turn, will drain to oil/water separators on the sites. Water from the separators will be discharged to the sewerage system. Oils and fuels will be periodically collected by an authorized oil recycling agency and sold to an oil refinery, or as fuel for local heating systems. Waste oils will be collected and stored in tankers and periodically transported to the refinery for recycling. Solid waste will be collected in containers and regularly removed by an authorized waste disposal/recycling agency.6. Kopex will install domestically-manufactured, double-wall, steel tanks for underground fuel storage at each of the retail stations. Through the use of interstitial inert gas systems, the tanks will be feature appropriate leak detection mechanisms. These tanks will also meet EU standards for prevention of fuel leaks to soil and groundwater.7. Adequate fire prevention and safety will be provided, including installation of fire fighting equipment both indoors and outdoors, as required by local regulations. In the case of fire or smoke, alarms will be automatically activated. All employees will be trained in how to properly handle hazardous materials, how to respond to an emergency, and how to use the equipment.8. Adquate health and safety measures are included in the plans for each operation including, the provision of personal protective equipment, development of specific safety procedures (e.g., non-smoking areas), and annual health and safety training. Each station will be equipped with the latest technology to ensure that the operations will meet the highest safety requirements, and first aid equipment will be made available.9. Based on its review of available information regarding potential environmental impacts and proposed mitigation measures, IFC concludes that Kopex’s proposed project will meet World Bank environmental, health and safety policies and guidelines and appropriate governmental requirements.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 Kopex and by conducting periodic site reviews during project supervision.L:\wpeu\STEPHEN\ERS\kopex.ERS.docMay 28, 1998 5:44 PM