IFC requires that this document is made available through the World Bank InfoShop and to the locally affected community no less than 30 days prior to project consideration by the IFC Board of Directors. The Summary of Project Information (SPI) provides details of where the ERS has been made available to the locally affected community. The SPI must be sent to InfoShop no less than 30 days prior to project consideration by the IFC Board of Directors.

This is a Category B project, according to IFC’s Procedure for Environmental and Social Review of Projects because a limited number of specific environmental and social impacts may result which can be avoided or mitigated by adhering to generally recognized performance standards, guidelines or design criteria. The review of this project consisted of appraising technical and environmental/social information submitted by the project sponsor, as well as a site appraisal and a visit to an existing Pilkington float glass plant. The following potential environmental, health and safety and social impacts of the project were analyzed: · Site location and suitability; · Sustainable raw material supply; · Air emissions; · Wastewater and solid waste management; · Noise; · Occupational health and safety; · Employment opportunities.

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.) The proposed site is located 35 kilometers south east of Moscow, in the Ramenskii District and is owned by a private farm company. The private farm company, formerly a collective, owns and uses approximately 4,500 ha of land for its production based on cattle, milk and vegetables. The 37 ha site is located between two villages (east and west), a major sand quarry (north), and open fields with an underground high-pressure sewage line (south). The nearest village is Zhukovo approximately 600 meters west-south-west of the property line on the other side of two high voltage power transmission lines and a railroad line leading to the sand quarry. At a further distance towards the east is the village of Kakuzevo. The nearest residence is 300 meters from the site boundary and a land usage plan will ensure that no residences can be build within 100 meters of the project site. The site is located along the rail line and the project includes rail facilities for raw materials import. Road access to the main road to Moscow is currently via a local road passing thru the village of Zhukovo. To avoid heavy traffic in the village the project will construct a new access road to the north of the village. This road will follow existing field divisions to avoid impact on the usage of the fields. The land take for the access road is included in the 37 ha to be bought from the farm company. General utilities, including natural gas, are readily available near the site; while the project will have the limited need for water supplied from own wells. The main raw materials for the float glass production are sand, soda ash, and dolomite/limestone. All these raw material are available as a commodity at the market and Pilkington will, by principle, ensure supply contracts with at least two suppliers for each essential raw material. The principle of at least two suppliers is to ensure price competitiveness and the possibility of eliminating any supplier breaking basic principles for environmentally sustainable supply. Despite the principle of at least two suppliers for all raw material it must be expected that the local sand quarry, which is the leading local supplier for glass production and has a capacity of up to 1,000,000 tpa, will have a transport cost advantage over other suppliers and will supply a significant part of the 180,000 tpa needed by the project. Pilkington will carry out an internal review of all major suppliers ahead of contracting. Melting inorganic raw materials in a furnace at high temperature is the basis for glass production. The high temperature glass melting process needed results in the formation of sulfur oxides (SOx), nitrogen oxides (NOx), and dust emissions. Sulfur oxide in the air emissions is derived from the fuel used and the raw materials, while nitrogen oxides are formed by oxidation of the natural free nitrogen in the atmosphere. A normal trimmed (optimized) glass melter furnace will have NOx emissions of up to 2,500 mg/Nm3 if no NOx reduction measures are taken. Dust emissions are caused by both the raw material used and evaporation and later condensation of sodium sulfate from the melt. The proposed plant will utilize natural gas, which is low in sulfur and the air emissions from the fuel will therefore be low in sulfur oxide. Careful control of the melting process minimizes sulfur oxides derived from raw materials. To limit the NOx emissions Pilkington will install its 3R-low NOx technology on the plant. This will allow the plant to reduce the NOx emissions to around 1200 mg NOx/Nm3. Pilkington has further committed to follow European Union Directive based IPPC (Integrated Pollution Prevention and Control) as applied to float glass manufacturing once it becomes available. Natural gas is a clean fuel and does not result in dust formation by itself. Therefore the dust emissions will be limited to evaporation of sodium sulfate (a water soluble non toxic substance) from the molten glass bath. The evaporated sodium sulfate will condense as the temperature of the combustion gas decreases in the heat recovery system. Pilkington has managed to optimize the furnaces from originally emitting around 250 mg dust/Nm3 to around 100 mg dust/Nm3 at the moment, and is currently developing and testing further furnace modifications to lower the dust emissions. Pilkington is committed to optimize the furnaces operation to bring the dust emission below 50 mg/Nm3 before the end of 2007in line with IPPC. The compliance with the 50 mg/Nm3 limit will be achieved either by the new furnace modifications or by installing traditional flue gas scrubbing systems. Water consumption and wastewater from the new facility will be limited. Both cooling water and wash water from the process will be circulated in closed loops, with only a small bleed being discharged to the on-site wastewater treatment plant. Therefore the on-site biological wastewater treatment plant will mainly receive its load from domestic sources (toilet, bath, canteen facilities, etc.). The treatment system will be based on a system successfully implemented at another Pilkington float glass plant and will fully comply with both local requirements and World Bank guidelines. A float glass plant needs significant fans for the furnaces. These fans will, due to the construction of the heat recovery systems, be located in deep enclosures and will have practically no noise impact on the site. Therefore the main sources of noise will be rail movements and truck movements. No residences are located near the site, and the new access road will ensure that the trucks do not pass thru the local villages. While cut related accidents in the downstream handling of the flat glass has been typical for this industry sector in the past, Pilkington PLC, the sponsor company, has corporate wide focused on occupational health and safety upgrades. As a result the Pilkington corporate accident rates has fallen from 34 LTA/MMH (Lost Time Accidents/Million Man-Hours) in 96/97 to 5.85 LTA/MMH in 01/02. While the reduction is impressive, Pilkington PLC is aware that further improvement is desirable and is constantly looking for opportunities for further reduction. Within the Pilkington worldwide operations the float glass plant in Sandomierz, Poland, has the best safety record with no LTA for the last 1790 days (nearly five years) at the time of appraisal. The Sandomierz operation is of approximately the same size as the proposed project and to ensure the highest safety standard from the very beginning, the General Manager of Pilkington’s operations in Sandomierz is expected to take the position of General Manager of the new facility. During construction the number of construction workers will be between 500 and 1000. In the operational phase the float glass plant will need around 200, of which 180 will be hired locally and trained to operate the plant safely and optimally.

The Environmental Review Summary will be disclosed locally at the following locations: Ramenskoye District Offices 140100 MO Ramenskoye Komsomolskaya Ploschad , 2 Pilkington Glass LLC 119002 Moscow Troilinsky Pereulok, 3, 2nd floor

Accordingly, IFC concludes that the proposed project will meet the applicable World Bank/IFC environment and social policies and the environmental, health and safety guidelines upon successful implementation.

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 ongoing performance of project-specific environmental, health and safety activities. Periodic site supervision visits will also be conducted.