Ukrgrafit

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Translated version of this PSD: Ukrainian The proposed project is designed to support Ukrgrafit in financing of the reconstruction and modernisation of the manufacturing facilities and introducing energy efficient technologies into the production cycle. The transition impact and demonstration effects associated with this potential investment are expected to include: Ukrgrafit is the only Ukrainian manufacturer of graphite electrodes for electric steel, electric-arc furnaces and other applications in the steel, aluminium, magnesium and titanium industries. The Bank will provide a loan to Ukrgrafit of USD 26 million. USD 35 million. Environmental classification and rationale Categorised B. Operations of the graphitized electrodes production are associated with a number of site specific issues, which can be readily identified, assessed and mitigated through measures as defined in the Environmental and Social Action Plan (ESAP). Due diligence completed Environmental and social due diligence (ESDD) has been undertaken by the Bank’s Environment and Sustainability Department together with the independent Consultant based on the review of all available information, including site visit, review of corporate management systems and interviews with the Company’s representatives. Key environmental issues, mitigation and summary of the ESAP Key environmental issues in graphite electrodes production are associated with air emissions (SO2, dust, CO2, metals, fluoride, VOCs, poly-aromatic hydrocarbons, etc.), solid waste and wastewater management, and land contamination. The ESDD identified several actions required to bring the Project into compliance with the Bank PRs which have been agreed with the Client in the form of an ESAP. The required actions include occupational health and safety upgrades; completion of a detailed Best Available Techniques (BAT) Assessment of the Project against Industrial Emissions Directive requirements and implementation of the resulting recommendations; and an assessment and mitigation of potential soil and groundwater legacy liabilities. The Project involves installation of the pneumatic extraction of packing material between electrodes and bag filters to minimise dust emissions and bring their levels in compliance with the EU BAT. Monitoring and reporting The Company will monitor the environmental impact of its operations in accordance with national law and regulations. The Bank will evaluate the project's compliance with the applicable environmental and social requirements during the lifetime of the project by reviewing annual environmental and social reports prepared for the project covering: (i) ongoing performance of project-specific environmental, health and safety activities as reflected in the results of periodic and quantitative sampling and measuring programmes, and (ii) the status of implementation of environmental mitigation and improvement measures. The Bank’s representatives will also conduct periodic site supervision visits when deemed appropriate. None Kutuzov Sergiy Volodymyrovych General Director Tel: +38 061 289 51 10 E-mail: kutuzov@ukrgrafit.com.ua