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 Procedure for Environmental and Social Review of Projects because a limited number of specific environmental and social impacts may result that 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 and social information provided by the project sponsor, and an on-site environmental audit of principal operations. The following potential environment, health and safety and social impacts of the projects were analyzed. - water supply for chicken rearing and processing; - air emissions and energy conservation; - management of liquid effluents); - management of solid waste; - hazardous materials management; and - occupational health and safety.

The sponsor has presented plans to address these impacts to ensure that the proposed project will upon implementation of the specific agreed measures, comply with the environmental and social requirements, Ukrainian laws and regulations and the World Bank/IFC environment and social policies and the environmental, health and safety guidelines. Detailed 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. - Water supply for chicken rearing and processing. With minor exceptions all company operations rely on ground water to meet facility needs. Existing water wells have been constructed to avoid surface contamination and contamination from the first water bearing zone. Aquifers have been evaluated carefully to ensure uninterrupted supplies of water for operations. Existing data suggest that in some cases mineral content may exceed IFC/WBG guideline limits for potable water. The sponsor operates a quality monitoring laboratory at the Mironovsky Feed Mill that is well equipped and staffed. Over the next six months the laboratory will assist in conducting an intensive sampling program for water supplies and subject collected samples to chemical, physical and microbiological analyses at the laboratory. Once the baseline quality has been established for each water source, the physical, chemical and microbiological results will be reviewed. If the data indicate exceedances of quality parameters in comparison to Ukrainian standards and IFC/WBG guideline limits, appropriate water treatment will be installed at affected facilities. - Air emissions and energy conservation. Air emissions - Mironovsky’s facilities in general utilize natural gas for steam and heat production. The State commission for Energy Conservation mandates a number of energy conservation measures that employ waste heat to advantage. Mironovsky complies with these measures. The gas is high quality and data evaluated for the three boiler farms and processing plants illustrate that particulate, NO2 and SO2 emissions are in compliance with IFC/WBG guideline limits. At the new feed mill, waste sunflower hulls (120 tons/day) will be burned in a boiler to produce 2.9 MW of power for use in the plant. Emissions from the boiler will comply with Ukrainian regulatory and IFC guideline requirements. The sunflower hull-fired power plant is projected to produce approximately 72% of electric power required for existing and new feed mill facilities and to significantly reduce natural gas consumption. Waste heat and steam from the power plant will also be used in the feed mill. - Management of liquid effluents. The principal sources of wastewater from Mironovsky operations emanate from the poultry processing plants. Limited wastewater production from the Mironovsky feed mill is returned to the municipality for treatment. At Cherkassy (Peremoga Nova) Broiler Farm #1 a series of facultative oxidation ponds is used for wastewater treatment. The existing ponds-in-series system provides adequate capacity for present and future operations. However, water conveyance to the ponds and among ponds needs to be improved. The first two ponds will be reconfigured to allow alternation of and periodic removal of sludge from the first pond in the series. Remaining ponds in the series will be interconnected with sealed piping so that wastewater will flow to the ponds without surface, embankment or other physical structures erosion or wastewater overflows. Pond dikes will be upgraded to include removing trees and vegetation that could imperil embankment integrity and stability. Druzhba Narodiv Nova (Broiler Farm #2) currently utilizes an energy-intensive system inherited from the Soviet era. The facility is negotiating use of two large treatment ponds, which were built to treat City wastewater but were never used. Utilization of these ponds will allow for high quality wastewater treatment and elimination of the need for electric power for wastewater treatment for the foreseeable future. At Orel Leader (Broiler Farm #3) the existing facility provides pretreatment of facility wastewater. Treated effluent is currently discharged to the sewerage of municipality of Dnieprodzerzhinsk. Supplemental treatment will be required to maintain compliance with local regulations for discharge to public sewerage and to avoid fines for increased wastewater strength. Currently BOD5 and COD are at 83 mg/l and 123 mg/liter versus local norms of 87 mg/l and 130 mg/l. The integrated investment program and the facility master plan includes consolidated wastewater treatment for existing and new operations and potential options for reuse of treated wastewater for agricultural and other purposes. - Management of solid waste. Processing waste in the three existing operations is rendered in the plant and in the case of Broiler Farms #1 and #2 is returned to the Mironovsky feed mill for incorporation into animal feed. Rendered processing waste at Broiler Farm #3 is sold to local feed manufacturers. At the Starinskaya Poultry Farm (Parent Stock Farm #1), litter and wheat straw waste for the operation are composted for one year prior to spreading on facility’s own agricultural fields. At Druzhba Narodiv Nova (Broiler Farm #2) broiler shed litter is collected and composted for roughly one year prior to shipment to farms for use as a soil amendment/fertilizer. Straw is purchased for a nominal sum from the farmers and the farmers purchase the compost for an equally nominal fee. Fertilizer is expensive so the farmers prefer this composting system. For Orel Leader (Broiler Farm #3) litter from broiler sheds, which is either sunflower hulls or wheat straw is composted at a facility on the property that maintains some nine months storage. This operation provides for segregated composting of wheat straw litter, sunflower hull litter, and wastewater treatment plant sludge. Litter compost is packaged for sale to mushroom farming operations and other compost is sold for agricultural soil amendment and fertilizer. The total production of finished compost is approximately 75 tons/month. The facility is considering purchase of specialized equipment to turn compost, which will speed production and improve compost quality as the material is currently turned manually and only infrequently - Hazardous materials management. As ammonia refrigeration systems predominate, the most common and largest volume hazardous material employed in operations is ammonia. As most of the existing facilities were state owned operations at one time, the equipment in general is older but it is well maintained. Emergency release maps have been prepared and response systems are in place. Most facilities are equipped with a drench system for potential releases to capture ammonia releases and to hold the drench water in a bermed area. Mironovsky will continue to maintain and upgrade ammonia refrigeration systems to comply with internationally recognized norms such as those promulgated by the International Institute of Ammonia Refrigeration or similar international standards. - Occupational health and safety. Elements of Mironovsky’s programs, such as employee training and monitoring, are relatively well developed. However, workplace signage and lighting in some areas could be improved to aid in the safety of work performed and reduce the possibility of accidents. Ukrainian regulations require that each plant have an assigned labor safety engineer who is responsible for implementation of in plant programs. Employees must have a medical passbook and up to date records to meet state requirements for employment. Food workers (meat handlers) are required to have full medical exam twice/year. Training programs consist of initial orientation (labor safety, fire prevention, first aid, etc), then specialized training for the work assigned, and regular workplace training (on-the-job training) every quarter. Mironovsky is striving to introduce new technologies not only in production but also in bringing working conditions into compliance with world standards. Thus, the company will expand employee development programs, introduce modern graphic, workplace signage, and improve lighting to match the requirements of specific tasks. Mironovsky will seek international certification (e.g. OHSAS 18000 or equivalent) of its occupational health and safety management system.

The following supporting documents provide further details of environmental and/or social issues. Corrective Action Plan (CAP). Local public disclosure commenced with publication on the Ukraine National Information Agency website on the 29th of July 2003 and local newspaper announcement of the availability of the ERS/CAP will commence on 31 July 2003.

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