The sponsor has presented plans to address these impacts to ensure that the proposed project will, upon implementation of the specific measures agreed, comply with applicable host country laws and regulations and World Bank/IFC requirements. The information about how these potential impacts will be addressed by the sponsor/project is summarized in the paragraphs that follow. Further information is provided in the attached documentation.
IFC''s first investment in Borsteklo included a capital increase used to finance a limited two year expenditure plan aimed at improving the furnaces, general production control and environmental improvements. As part of their initial due diligence, Glaverbel''s technical staff conducted a technical review of the plant facilities in March 1997. Glaverbel provided a summary of their action plan items in the June 1997 audit and in subsequent annual environmental reports (1998 and 1999). An initial Environmental Action Plan ( EAP) was prepared in 1997 and implemented throughout 1999. A revised and final EAP was prepared in 1999 in a form that met IFC''s requirements. It included detailed costs, as well as a schedule for the implementation of the remaining EAP action items necessary to achieve the requisite performance improvements by the end of 2000. As of March 2002, significant progress has been made with more than 90% of the actions completed. Issues which remain include continuous air pollution monitoring equipment on furnace #1, currently being repaired, together with the development of control measures to reduce NOx emissions to World Bank guideline values established at approval.
Glaverbel have integrated Borsteklo into its own corporate environmental management system, together with all other companies in the Glaverbel Group. Based on procedures
described in ISO 14031, a system of environmental evaluation has been developed which allows assessment of the environmental performance of all Glaverbel companies by comparison of a set of environmental performance indicators including air, water, energy and packaging. An annual Environmental Report for Borsteklo has been provided by Glaverbel for 2001 and includes a summary of achievements to date by March 2002. Glaverbel has also been recognized for its performance on issues to do with human welfare as well as environmental matters by an independent agency - ETHIBEL who act to evaluate companies for SRI investment opportunities.
The existing float glass lines were built in 1970 and 1985 respectively, and are fuelled by natural gas. They are in general compliance with local limits for emissions of CO, NO and NO2 as well as for dust and SO2. Air emissions (including SO2) are relatively low due to the use of natural gas with low sulphur (boiler and float). In the past, excessive amounts of dust were also found in the Batch House. Since 1998, 9 additional Batch House filters have been fitted; to date, emissions have reduced by 90% (1997 -2000). At the float line production, a Batch House filter has also been installed at the cullet hopper, and another on the glass breaker. Further improvements will be made to the conveyor belt system. Glaverbel will also implement further continuous sampling of stack emissions during the next planned cold repair to furnace #1. Monitoring of air quality in the work place is carried out in conjunction with the local authorities. The total output of CO2 for both of the Bor furnaces together will be equal to 246,186 tonnes per annum. Since IFC''s investment in Borsteklo in 1997, NOx levels have decreased by 20% to meet IFC''s requirements at approval. Changes to IFC''s glass manufacturing guidelines (introduced in 1998) have now introduced requirements for NOx concentrations to meet between 1000-2000 Mg/Nm3 unless a specific case can be made . At present, BGW lines do not have air pollution controls (APC) for process emissions. Options include a dry and semi-dry scrubbing technique where CA (OH)2 as dry powder and NA2 CO3 as dry powder or liquid solution is injected into the flue gas and reacts with the acid components (mostly SOx). The products of the reaction are collected in an electrostatic precipitator as a dry powder, together with the dust coming from the furnace itself. The EP dust is mainly calcium and/or sodium sulphate. APC are not widespread in float plants in Europe at the moment with less than 20% equipped today. The only readily available technology for NOx reduction at the moment is based on the catalytic reduction of NOx by reaction with ammonia with the aid of a catalyst. A NOx reduction rate of 80% is achievable, however, ammonia will be released. At the moment there is only one float furnace equipped with this type of equipment in Europe and the technology has not been proven to perform well during the entire time between cold repairs (about 12 years).
The Glaverbel group is facing parallel anticipated reductions in NOx concentrations as a result of the introduction of new EC environmental legislation (the IPPC Directive) future National Emission Ceiling (NEC) Directive, as well as the Kyoto and Gothenburg protocols.. The target date for most of these commitments is 2010. In order to respond to such requirements, Glaverbel is developing new techniques for the reduction of NOx, mainly by primary measures which include the reduction of excess air ( by control of oxygen in the flue gas, sealing the furnace, air and fuel staging, oxy boosting etc). Tests are also being made on different float furnaces. Although today it is still too early to be able to forecast the reduction that can be achieved, Glaverbel are confident that significant reductions will be able to be achieved in the future and that the target dates for achieving the necessary reductions will be met. The Russian target for NOx is currently lower than a number of other EU countries who are starting to revise their emission limits. There is no information today on the evolution of the limits in Russia. Glaverbel plans to include BGW in their corporate investment program for air pollution control. even though BGW, a Russian company, do not fall directly under EC environmental requirements. Glaverbel is undertaking an extensive Research and Development project to develop cost efficient primary control design technologies. When the project is finalized by Glaverbel, the chosen technologies will be implemented on each furnace in the Glaverbel Group, including Bor Glass, in order to meet the limits set by the authorities. Glaverbel will install controls on both of the Bor furnaces following installation at their first plant in Europe, unless Russian legislation adopts a different strategy or timing ( i.e. if Russia signs the Kyoto protocol) in which case Bor will need to comply with local Russian requirements. At present, Glaverbel anticipates that both the availability of these technologies and their installation will be possible from 2007.
Cooling water in the float glass lines operates in a closed circuit with the cooling tower that serves both lines. Borsteklo has recently completed the construction of facilities to treat all of its industrial wastewater (meets World Bank''s guidelines) and recycles up to 73% to the production process. From the beginning of 2001, the discharge of untreated industrial water to the Volga River was eliminated. Total water consumption reduced by 52% since 1999.
The plant has a good ongoing program for the administration of non-hazardous and hazardous solid waste, in accordance with local requirements. No waste is allowed to be disposed of on site, and historical information indicates that there have been no landfills on the site itself. Conventional solid waste and sludge collected by the water treatment facilities is disposed of in a new offsite landfill operated by the company under local permit. The system of solid waste collection will be improved with priority given to recycling, reducing landfill disposal and sorting waste at origin. 91% of the total amount of waste produced in 2001 was recycled and included waste cullet, ferrous and non ferrous metals, lighting tubes, batteries as well as used oil. Demolition waste and refractory materials amounted to nearly 10,000 tonnes. Following public consultation and a public enquiry regarding the siting of a new 8.5ha landfill (90,000 m3) located 15km east of the plant, a final authorization was granted by the authorities in 2000. Construction was completed in 2001. The new site is operational. In parallel, a reinstatement and vegetation plan was agreed and implemented for the old landfill. Bor bear joint liability for this facility with the local authorities. Hazardous wastes are sent to a special landfill operated by the local authorities. Used refractories and used oils and lubricants are shipped back to the suppliers.
Land contamination from past operations does not appear to be an issue as solid wastes have been generally disposed offsite and the one known site of past contamination, a plant for generating gas for the furnaces, was closed and remediated about 30 years ago. Old disused buildings and unoccupied areas require fencing in order to forbid access and avoid accidents. Some very old buildings may have structural damage, and further actions to dismantle them will need to be reviewed including the need to check for the presence of asbestos. During the initial plant modernization, remediation of oil contaminated soil identified during the June 1997 audit was undertaken.
Current operations have been found to have chronic spills of oil from various sources, including plant processes, out of service transformers (oil filled equipment does not contain PCB’s), vehicles and tanks. Glaverbel has constructed preventative measures such as curbing, oil/water separators and spill containment. Secondary spill containment systems will be built at the gas station and around the various oil and gas tanks. A new installation for the regeneration of used oil has been completed. In 2002/3, Borsteklo will make further investments in fire-fighting systems and fire detection and improve general housekeeping, e.g. remove old buildings and improve internal roads. One fatality occurred in 2001, however Borsteklo has reinforced a program of enforcing the use of personal protective equipment through the company newsletter, local radio and by setting up a working group on safety. In 2001 both the frequency and gravity indices for accidents decreased compared with 2000 and previous years.
Borsteklo has downsized from approximately 6,300 staff at beginning of 1998 to a current figure as of March 2002, of 4,500 employees. In order for the company to remain competitive and create efficiencies, they have been actively reducing their work force since 1996 and will continue to downsize. Over the past six years, 1,850 people have been made redundant. Included in the total of 1,850, approximately 900 people were re-hired in various spin-off operations related to the production facilities (auxiliary shops, cleaning, tableware and double glazing production) and other activities (child care, housing, hostels, recreation and cultural centers reassigned to municipal authorities). Both the Administration of the BOR District and the Nizhny Novgorod Region were consulted and agreed to these measures in a 1997 agreement recognized by national law. They also pledged to lend support as far as possible to any redundancy programmes by providing alternative employment opportunities.
As part of it''s monitoring of the project, IFC shall request the company and Sponsor prepare a Staff Resources Plan which will be regularly updated and highlight any plans the company has to make further reductions to achieve optimal staffing at Borsteklo. As part of the plan, IFC shall ask the company to provide information on any previous redundancies, such as average severance packages, amount of staff reduction attributable to attrition, etc. It shall also request the company to identify efforts made by the local government as per the 1997 agreement to provide re-employment, or training opportunities. The plan will identify ongoing cooperation, if any, between local staff and the company to minimize the social and economic impacts of these layoffs on the employees and their families. The plan will also look forward and outline how the company will ease the socio-economic impacts on their employees, their families and the community.
