Viking Kagit ve Seluloz A.S.

completed

- 2 - October 28, 1997International Finance CorporationA Member of the World Bank GroupInternational Finance CorporationA Member of the World Bank GroupEnvironmental Review Summary (ERS)Project Name TURKEY: Viking PaperRegion EuropeSector Timber, Pulp and PaperProject No. 008488 1. This project involves the expansion and modernization of Viking Paper’s total paper manufacturing capacity by adding a second paper machine of 25,000 tons (all for tissue paper) for a total paper production (industrial and tissue) of about 48,000 tons per year. The project consists of: (i) a new paper machine of 25,000 tpa capacity, (ii) modernization of the existing waste paper handling line to be able to produce 100 tons per day of suitable paper, and (iii) expansion and upgrade of the waste water treatment facility. The project is located at the company’s existing facility at Aliaga, 60 km north of Izmir, Turkey’s largest seaport.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 the project consisted of appraising technical and environmental information submitted by the project sponsor, and the technical appraisal and site review completed by IFC’s Technical and Environment staff. The following potential environmental, health and safety impacts of the project were analyzed:· air emissions;· liquid effluents;· solid waste disposal;· water sources;· fire prevention and emergency response; and· employee exposure to noise and dust.The information provided by Viking Paper about how each of these potential impacts will be addressed in the development of the proposed project is summarized in the paragraphs that follow.3. The company is located in Aliaga, in an industrialized area, which includes steel and iron works, fertilizer factories, petrochemical facilities and petroleum refineries. 4. Viking Paper has two boilers of 8.5 MW capacity each. The operating boiler uses coal and the back-up boiler uses No.6 fuel oil. The sponsor adds CaO to reduce the SO2 percentage in the fumes from the coal boiler, and a reduction of approximately 90% has been obtained. The coal boiler unit does not currently meet the World Bank guidelines for Particulate Matter (PM). The sponsor has committed in writing to take all necessary actions to ensure that the air emissions meet the World Bank guidelines, and will ensure that full compliance is achieved by the end of 1998. The sponsor will provide IFC at that time with an analysis of its air emissions to indicate compliance with World Bank guidelines. The sponsor is currently working with the manufacturer of the existing filter to ensure optimum performance of the PM emission control system. Viking Paper is currently performing an analysis of the flue gases and will provide this analysis to IFC prior to disbursement. It is anticipated that by the end of 1999 or by the year 2000, the Aliaga industrial region will be supplied with natural gas, at which point the sponsor will convert the fuel oil boiler to use natural gas.5. Viking Paper operates a wastewater treatment plant having both biological and chemical treatments. The plant has a treatment capacity of 4000 m3 of waste water. The treated water is discharged to the Guzelhisar River. The effluent waste water meets World Bank water quality guidelines.6. There are three types of solid waste generated at the mill: ash from the coal boiler, sludge, and solid waste from secondary fiber processing. The coal ash is disposed of at a municipal approved site. The sludge is dewatered by belt presses, and then disposed at the municipal waste area. The waste from secondary fiber processing are also disposed at the municipal landfill.7. The water requirements for the plant are adequately supplied by deep wells located in the Guzelhisar Valley. The plant requires approximately 2500 m3/day. Drinking water will be supplied by the Aliaga Municipality. Electric power will be supplied by the national grid and distributed by TEDAS.8. Viking Paper has established a training program which includes employee health and work safety, fire prevention and use of fire equipment, first aid and rescue, and technical safety. Training programs are scheduled four times a year. Personal protective equipment is provided to employees including dust masks and hearing protection devices. Viking paper has established a health and safety committee to evaluate the workplace conditions. 4. Based on its review of available information regarding potential environmental impacts and proposed mitigation measures, IFC concludes that Viking Paper proposed project will meet World Bank environmental, health and safety policies and guidelines and host country requirements.5. 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 Viking Paper and by conducting periodic supervision.L:\WPEU\ROSA\TURKEY\VIKING.ERSOctober 28, 1997 2:44 PM