10627 - Teteks 2

Who We Are
Who We Are

IFC is the largest global development institution focused on the private sector in developing countries. By encouraging growth, IFC advances economic development, creates jobs and improves the lives of people.
More About Us
About IFC

Our Leadership

Development Partners
Accountability

Learn more about accountability
Annual Report

Download the Report
What We Do
What We Do

IFC advances economic development and improves the lives of people by encouraging the growth of the private sector in developing countries. We achieve this by investing in impactful projects, mobilizing other investors, and sharing expertise.
What We Do Overview
SOLUTIONS

Our products and services
OUR PRIORITIES

Climate Business

Fragile & Conflict Afflicted Situations

Gender

Mobilizing Private Capital

Sustainability
SECTORS & EXPERTISE

Agribusiness & Forestry

Creative Industries

Education

Financial Institutions

Funds

Health

Infrastructure

Manufacturing

Public-Private Partnerships

Tourism, Retail & Property

Trade & Supply Chain Finance

Venture Capital

Working Upstream
Where We Work
Where We Work

As the largest global development institution focused on the private sector, IFC operates in more than 100 countries around the globe. We apply lessons learned in one region to solve problems in another.
Overview
By Region

Africa

East Asia and Pacific

Europe

Latin America and the Caribbean

Middle East and Central Asia

South Asia
Our Impact
Our Impact

Our impact improves lives. IFC brings a clear set of advantages to the world’s most challenging markets. Including a history of innovation, a global mandate, and a determination to achieve measurable development impact.
Our Impact Overview
PRINCIPLES & MEASUREMENT

Impact Investing at IFC

Measuring and Monitoring (AIMM)

Evaluation

Sustainable Development Goals (SDGs)

Owned by 186 member countries and consistently rated AAA/Aaa. IFC aims to achieve our mission of promoting development by providing debt and equity to the private sector, through a range of benchmark and bespoke products.

For Partners

For Investors

Get in Touch

Environmental Review Summary

Project Number

10627

Company Name

TETEKS AD

Date ERS Disclosed

Jul 9, 2001

Country

North Macedonia

Region

Europe

Environmental Category

B - Limited

Status

Completed

Previous Events

Approved : Dec 12, 2001
Signed : Mar 15, 2002
Invested : Jul 2, 2002

Sector

Garment and Apparel (With Primary Textile Operations, Excluding Footwear)

Industry

other

Department

Regional Industry MAS LAC & EUR

Project Description

IFC has been requested to help finance (a) the modernization of the textile operations, and (b) a newly formed Teteks corporate citizenship initiative (CCI) to help create job opportunities for the company''s laid-off workers.

IFC has already provided a loan financing to Teteks in 1997, supporting a modernization program. The second project anticipated to further modernize its spinning, weaving, knitting and ready-made-garments ("RMG") facilities. New equipment will modernize the operations, enabling Teteks to (i) produce finer, higher quality, yarns with stretch (incorporating lycra), (ii) improve yarn dyeing facilities, (iii) enhance the finishing side of the fabric forming capacity, (iv) increase the range of knitwear products, (v) allow better quality consistency of the ready-made-garments factory, (vi) decrease waste, (vii) increase efficiency, and (viii) reduce energy usage. The textile operations project is expected to be completed by the end of 2003.

CCI should help the company reduce its labor force in a socially responsible manner. The objective is to provide financing to Teteks'' laid-off workers to help them to start their own small businesses. Through this initiative, Teteks would help the community by providing commercially sustainable market opportunities to SMEs, creating new job opportunities, and fostering enterpreneurship.

Environmental and Social

The plant is located close to the town of Tetovo, Macedonia with approximately 75,000 people. Teteks had another plant located at Skopje which closed down definitely in December 1999. This plant did not leave any soil or groundwater contamination behind as per local government certifications.

The process requires generation of steam for which two boilers are used. As part of the project, and with the assistance of a Dutch grant, Teteks has replaced the two low caloric coal (lignite) boiler with two 16 t/h dual fuel burner boilers which can run with either fuel oil or natural gas. This replacement will contribute to reducing (i) the air pollution and soil contamination of the lignite residues, and (ii) Teteks'' energy costs by approximately 40%. This will address a key environmental issue raised by IFC in the first project.

It is anticipated that the new boilers will be operating by September 2002. The sponsor will conduct stack testing to demonstrate these boilers fully comply with the applicable World Bank guidelines and if needed, the sponsor will submit proposed control measures, implementation schedule, and associated costs.

The process wastewaters generated are treated in an on-site wastewater treatment plant. The sponsor will upgrade the current treatment to ensure that the treated effluents fully comply with the applicable World Bank guidelines. Prior the first disbursement, the sponsor will present the proposed measures to ensure the treated liquid effluents biological oxygen demand, chemical oxygen demand, and total suspended solids concentrations are below 50 mg/l; 250 mg/l; and 50 mg/l respectively.

The domestic waters are currently discharged without any treatment. The local authorities have indicated that they will build a municipal treatment plant by the year 2003. Teteks will follow the government''s plan and will maintain IFC informed of such development. However, if by January 2003 the government has not initiated building such plant, Teteks will build a system to ensure their domestic wastes are treated prior being released by the end of 2003.

The fuel oil storage tanks will be stored in an aboveground storage will have double containment to prevent soil contamination due to leaks or accidental spills.
The dyes used in the operation are being certified as to comply with the German Consumer Protection Act. The heavy metals concentrations in these dyes are below the internationally acceptable levels.

Most of the wastes generated are sorted and either reuse or sold. The remaining waste is disposed by the local authorities in authorized locations. The sludge from the wastewater treatment plant is disposed in the municipal authorized landfill.

As part of the modernization, the noise levels will be reduced to less than 85 dBA. In the areas were, after implementation of reduction noise measures, the levels are greater than the acceptable levels, the employees will be provided with and required to use hearing protection devices.

Teteks will establish an environmental health and safety group to identify problems, establish corrective and proactive action programs, train personnel, and monitor performances. In addition, Teteks will develop a comprehensive environmental management system by which it will develop contingency plans, will established a rigorous employee training, occupational health and industrial safety programs, etc.

Teteks installations will have well-equipped systems to respond to emergencies, perform periodic fire drills, and have well trained fire-brigades available at all times. Teteks will continue to provide to and will require the use of personal protective equipment (hard hats, dust mask, hearing protection, etc.). The employees will receive pre-employment and periodic medical check-ups and will have access to well-equipped medical facilities.

Teteks will experience a total retrenchment of about 1200 workers. Between mid-1999 and mid-2000, Teteks reduced its workforce from 4,560 to 3,864, and needs to retrench about 500 more employees. Teteks” retrenchment follows Macedonian Labor Relations Law (no. 80/93-2007), covering consultation and notification, selection criteria, severance payments and other assistance to restore income and priority for employment in the event new employees are needed by Teteks within a period of two years. Compensation, retirement benefits and health insurance are provided by the Bureau for Employment. The Bureau also assists retrenched workers who are not retired to find new employment.

Given the limited employment opportunities in Macedonia, part of the IFC loan will finance a newly formed corporate citizenship initiative (Teteks CCI) to help create job opportunities for Teteks’ retrenched workers. CCI will provide short-term micro- and small loans to enterprises which are owned by or are employers of Teteks’ laid off workers. In addition to the loans, CCI will provide enterprise development technical assistance to recipients as needed, and will monitor results in order to intervene quickly if additional assistance is needed.
Teteks is committed to inform IFC of any additional initiative that they implement, during the life of the project, and that generates environmental impacts. Thus Teteks will submit the potential impacts and proposed mitigation actions before such initiative is implemented.

By project completion, Teteks’s operations will be in full compliance with the relevant World Bank guidelines and policies and with the Macedonian environmental standards. Teteks will annually submit to IFC a monitoring report to ensure ongoing environmental compliance during the life of the project.

Conclusion & Monitoring

IFC will evaluate the project''s compliance with the applicable environmental and social requirements during the lifetime of the project by reviewing the annual monitoring reports (AMRs) prepared for the project covering : [(i) the status of implementation of the needed measures to ensure compliance with the applicable guidelines and (ii)] ongoing performance of project-specific environmental, health and safety and social activities. Periodic site supervision visits will also be conducted.

This Environmental Review Summary (ERS) is prepared and distributed in advance of the IFC Board of Directors' consideration of the proposed transaction. Its purpose is to enhance the transparency of IFC’s activities, and this document should not be construed as presuming the outcome of the Board of Director’s decision. Any documentation that is attached to this ERS has been prepared by the project sponsor or in conjunction with the project sponsor and authorization has been given for public release. IFC has reviewed this documentation and considers that it is of adequate quality to be released to the public but does not endorse the content. The following ERS is disclosed in accordance with IFC's Disclosure of Information Policy that went into effect September 1998.

The map is for illustrative purposes and does not imply the expression of any opinion on the part of the World Bank, concerning the legal status of any country or territory or concerning the delimitation of frontiers or boundaries. Country borders or names do not necessarily reflect the World Bank Group's official position. In some cases, available project location information is limited to the country of the project's activities. Locations are approximate.

Projects

Environmental Review Summary

Project Description

Environmental and Social

Conclusion & Monitoring

Similar Projects

Projects

Environmental Review Summary

Project Description

Environmental and Social

Environmental Category B Disclosure Requirementsy

Environmental and Social Issues

Proposed Mitigation for Environmental and Social Issues

Conclusion & Monitoring

Conclusion

Monitoring and Compliance

Press-Release

Related SPI

Similar Projects

Disclaimer