Vilniaus Margarino Gamykla

completed

ENVIRONMENTAL REVIEW SUMMARY (ERS)Project name Lithuania-Margarine Factory “Vilnius”Region EuropeSector ManufacturingProject No. 0084311. The company will produce margarine mainly for the Lithuanian market. The margarine will be sold to consumers and professionals (bakeries, cake producers etc.). The technology and equipment used at the factory in Lithuania will be similar to the technology used at Dragsbæk Margarinefabrik A/S (DM)’s factory in Denmark. The equipment will be of a high quality and not too technically advanced.2. The products will be consumer packages, i.e. margarine in blocks and/or cups of 0.5 or 0.4 kg. In addition the factory will produce bulk packs for the professional users (bakeries, biscuit factories etc.) packed in 5, 10 or 20 kg blocks. The production capacity is expected to be approx. 5,000 tons annually based on one shift. This makes it possible to double/triple the capacity with few investments as the market/sale increases.3. This is a category B-project according to IFC’s environmental review procedures. Specific impacts may result which can be avoided or mitigated by adhering to generally recognised performance standards, guidelines or design criteria. The review of this project consisted of appraising the technical and environmental information submitted by the project sponsor, and a technical appraisal by an environmental expert of the Investment Fund for Central and Eastern Europe (IØ), the agent for this facility. Wastewater and noise levels associated with the project have been identified as potentially significant environmental issues. Information on how these potential issues may be addressed is summarised below.4. The production facilities will use an existing building which previously was used for bottling of edible oils. No site contamination assessment has been conducted as the site only has been used for pressing and bottling of vegetable oil. Vegetable oil is a bio-degradable product. The building will be refurbished. Land use has been approved.5. To reduce contents of fat in the wastewater a grease separator will be installed. Sludge from the separator will be disposed of in a public landfill in accordance with Lithuanian laws and regulations.6. Noise in the production room will be below 75 dB(A).7. Solid waste produced will consist of cardboard and polypropylene. All solid waste will be taken to an incinerator.8. Refrigeration equipment will not use CFCs.9. IØ will monitor ongoing compliance with World Bank environmental, health and safety policies and guidelines during IØ’s financial participation in the project by evaluating reports submitted annually to IØ by DM, and by conducting periodic supervision.Based on its review of available information regarding potential environmental impacts and proposed mitigation measures, IØ concludes that DM’s proposed project will meet World Bank environmental, health and safety policies and guidelines and Lithuanian environmental laws and regulations.A:\ERS.DOCJuly 2, 1997 16:09