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) also provides details of where the ERS has been made available to the locally affected community. The SPI must be sent to World Bank 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 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 appraisal of IFC’s original investment comprised a site visit by the Environment and Social Development Department and a review of supplementary information provided by the sponsor. Sisecam, the main sponsor, had agreed to carry out an independent environmental audit as part of their due diligence. The following potential environmental, health and safety impacts of the expansion Project were analyzed: Air emissions from the furnace (SO2, NOx and dust) Liquid effluents treatment and discharge Oil and Chemicals storage and handling Waste management including recycling and minimization, and building a landfill for industrial waste Past liabilities due to previous operations Fire prevention and emergency response General housekeeping, worker safety and general health and safety awareness Worker exposure to high temperature, noise and dust Environmental monitoring

Most of the raw materials come from the surrounding area. All raw materials are stored in silos or in bags in a closed warehouse. Adequate prevention and mitigation measures are taken to limit particulate emission during unloading from transport and batch loading operations. The new glass-melting furnace will be designed as an end-fired regenerative furnace and will be located adjacent to the existing building of the facility. Natural gas will be used in the furnace. Therefore, dust and SO2 emissions are anticipated to be low. Estimated emissions based on measurement results of similar furnaces will meet World Bank Group guidelines for emissions of particulate matter, SO2 and NOx. Combustion control techniques will be used to control NOx emissions. The dry aspiration system already installed in the batch house reduces work place emissions to an acceptable level. Electricity is currently supplied from the grid. There is a natural gas line serving the facility. Process and potable water is obtained from the city water distribution system, with potable water being treated by filtration and chlorination. There are two wells for emergency use. Cooling water for the furnace is in a closed systems resulting in no discharge during normal conditions. Necessary cooling water make-up also comes from the city system. If any accidental overflow occurs from the cullet quenching circulation system, this wastewater is subject to oil and solids separation before being discharged to the sewer. Sanitary wastewater is treated (a) by an onsite biological treatment system, and (b) after onsite treatment, by discharge to the city sewer system which provides for additional treatment prior to discharge to the environment. Wastewater treatment sludges are collected and disposed of in a landfill. If elevated levels of suspended matter and oils occur in the process wastewater, these wastewaters will be discharged to settling ponds for decantation. The plant is currently implementing a comprehensive waste management program allowing operators to control and monitor non-hazardous and hazardous solid waste in accordance with local requirements and World Bank Group guidelines. No wastes are disposed of onsite and available historical information indicates that there have been no landfills on the plant site. Non-hazardous solid waste is disposed of at the local landfill operated by the company under a local permit. If any hazardous wastes are produced they will be sent to a special landfill operated by the local authorities. Diesel oil is used as the back-up fuel to natural gas. Any used mineral oils and lubricants are sold back to suppliers for reuse. Various scrap materials are also sold for reuse. The proposed independent environmental audit will identify any areas of contamination from spills of chemicals and oils during past operations including from plant processes, out of service transformers (oil filled equipment does not contain PCBs), vehicles and storage tanks. Ruscam has agreed to implement during the initial plant modernization remediation of any identified contaminated soils and to install preventative measures such as curbing, oil/water separators and spill containment systems. In order to prevent and extinguish fires, a fixed fire fighting system together with portable fire extinguishers have been provided. The fixed system consists of a large number of fire hydrants placed throughout the plant and metal hose boxes will be available in the plant site. The portable fire extinguishers are located throughout the operation such as at the fuel tanks. Company personnel are trained in fire prevention techniques and in the use of fire extinguishers. More rigorous training is provided to a smaller group of employees on fire risks, fire fighting systems and emergency response. Regarding occupational health and safety issues, prevention and mitigation measures are currently taken for workplace air quality, noise and other issues. All workers are provided with personal protective equipment and are trained in their use. Indoor dust is reduced to acceptable levels by means of adequate ventilation systems coupled with dedusting equipment. The maximum indoor dust concentration is maintained at 2 mg/m3. Respirators are supplied to the personnel during maintenance and repair work. Indoor noise levels are periodically measured throughout the plant and ears plugs and/or muffs are provided accordingly. In addition, sound isolated rooms have been installed at a number of locations such as in the furnace building. In the high temperature areas, especially near the glass melting furnace, personnel work for a short duration and cooling air is provided as necessary. Appropriate safety measures are applied for electrical systems and mechanical equipment thus reducing risks for workers. Stringent local regulations are enforced and periodic health examinations for all staff will begin shortly when onsite medical personnel begin work. Following plant startup in June, 2002 the Department of Environmental Expertise and Environmental Licensing of the Vladimir region branch of the State Committee for Environmental Protection issued the necessary environmental permit. This permit states that the proposed plant does indeed comply with the environmental laws and regulations of the Russian Federation. The environmental permit and related Conclusions of the Expert Committee include a brief description of the environmental conditions and identify areas of concern, including required mitigation and remediation measures. These include (a) measures to protect surface waters during construction activities; (b) measures to protect soil, surface runoff and groundwater in the plant area from contamination by pollutants discharged by the plant; (c) studies to determine the need for additional process wastewater treatment prior to discharge; and (d) implementation of monitoring programs after the plant becomes operational. The plant, in addition, has prepared long-term and short-term environmental protection plans, to be approved by the management of the plant and by the appropriate inspection bodies. A quality engineer manages Ruscam’s environmental issues as part of the quality assurance systems. Adequate procedures were implemented at the time of plant modernization. The Environment Group of Sisecam (located in Istanbul, Turkey) regularly provides technical assistance and consultant support to Ruscam on an as needed basis.

This ERS contains the full environmental and social documentation prepared for the project.

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 of the agreed mitigation measures.

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 any measures contained in the Environmental Action Plan, and (ii) ongoing performance of project-specific environmental, health and safety activities as reflected in the results of periodic and quantitative sampling and measuring programs. Periodic site supervision visits will also be conducted.