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 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 information submitted by the project sponsor. The following potential environment, health and safety impacts of the projects were analyzed. - site selection and planning, - site environmental and social (including land rights and use) conditions, - air emissions, - liquid and solid waste treatment and disposal, - hazardous materials handling, - sale of materials on the IFC exclusion list, - power and water supply, - life and fire safety, - emergency response, - general worker health and safety, and - environmental management systems.

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, i.e., the host country laws and regulations and the World Bank/IFC environment and social policies and environmental, health and safety guidelines. The information about how these potential impacts will be addressed by the sponsor/project is summarized in the paragraphs that follow. - Site selection. An existing store is located in the Kharkivsky District of Kyiv (Kiev). Two new stores are planned under the Project. The first of these will be located in the Troyeschyna District at the intersection of Lyskivska and Balzaka Streets, the two principal streets in the district. The land was acquired from the City of Kyiv through auction and is unoccupied. The second site is yet to be determined. The company is likely to lease the land from the city administration, as it does for the existing store. - Environmental impact. Stores in the Ukraine are required to have operating permits from the Sanitary Authority and the Fire Safety Department, and are required to undergo a safety audit from the City Construction Control Authority. The new stores will have to demonstrate through studies that they will not have negative impacts on the architectural, social, environmental and geological situation at the site. They also have to meet national regulations on the use of water utilities, city sewage systems, and rain drainage. IFC will require evidence of compliance with these regulations following the review of construction plans by the Kyiv City Planning Authority. - Air emissions, liquid effluents and solid waste. The stores will use the city electrical and heat grids. They will not have generators or boilers. Thus, there will be no air emissions from the stores. As a home improvement store, the facilities only generate domestic wastewater from employees. Each store uses a limited amount, 10 cubic meters per day, of city-supplied water. The stores will be connected to the city sewer system and, as noted, will need to meet national norms to do so. The limited amount of solid waste is taken by the Municipal Garbage Disposal Company. - Hazardous materials, including pesticides. Nova Liniya does not sell items on IFC’s exclusion list. While it does have a garden center in its existing store, it does not sell pesticides or herbicides. Ukrainian law requires a permit for the sale of pesticides, and Nova Liniya has decided to not go through the process for obtaining that permit. Should Nova Liniya decide to sell pesticides, it will adhere to IFC’s Operational Policy 4.09 and will not sell pesticides falling in the World Health Organization’s Classes 1A, 1B, and 2. The company does not sell hazardous materials under IFC’s definition. - Life and fire safety. All the stores will have sprinkler systems, appropriate fire exits, and adequate numbers of fire extinguishers and hydrants. The company will also have prepared a Life and Fire Safety Master plan that will not only include the above mentioned passive physical measures, but also an emergency response plan and management system to ensure that safety measures are maintained according to manufacturers specification, local regulation and IFC requirements and that employees know how to respond in an emergency. - Employee training. Nova Liniya instructs its employees on safety, fire prevention, sanitary norms, and electrosecurity. They are examined on these areas prior to starting employment and monthly thereafter. Over the last two years, Nova Liniya has had no lost-time accidents. - Environmental management system. Nova Liniya has an integrated quality, environment, health and safety management system. The system is in compliance with the labor legislation of Ukraine, addressing labor and some health and safety issues, and the sanitary and hygienic standards of Ukraine, which address health, safety and environmental issues. Several managers are responsible for compliance and implementation of the health, safety and environment policies, all reporting to the Deputy Director for Safety of Nova Liniya. The Engineer for Labor Safety is responsible for compliance with the national labor legislation. The Technical Safety Engineer is responsible for supervising and maintaining of appropriate technical and safety conditions of the building and in-store equipment. The Technical Engineer is responsible for supervising and maintaining appropriate technical and safety condition for water, sewage and air ventilation equipment. The Board of Directors approves annual schedules for safety, health and environment measures including equipment upgrades, maintenance and training programs. The company performs monthly training for the store personnel on the related issues. Each store personnel signs his or her job description, which includes chapters covering quality, health and safety issues. Emergency response action plans have been developed; emergency training exercises are routinely performed among personnel. Every three months, the state authorities perform due diligence audits at Nova Liniya to supervise compliance with sanitary, hygiene, health and labor safety standards.

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