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 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. The following potential environment, health and safety and social impacts of the projects were analyzed. - Land Acquisition for the expansion project - Liquid Effluents - Emissions to air - Occupational health and safety - 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 - the host country laws and regulations and the World Bank/IFC environment and social policies and the 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. Further information is provided in the attached documentation. - Land Acquisition for the expansion project: Land for the expansion project was bought in two parcels, firstly through the willing-buyer-willing seller route from another manufacturing enterprise, and secondly by auction from the administrator of another industrial enterprise. - Liquid Effluents: The most significant liquid effluents will arise from papermaking. Water used in papermaking will be sent to two sedimentation pools from which water will be recycled to the paper making area. Some water, amounting to 30 – 40 m3/ tonne of paper will be discharged from the site to the municipal sewage collection and treatment system. AA will meet the acceptance criteria for the municipal effluent treatment system. AA’s product is not bleached. Sludges and captured oil and grease are disposed of to the municipal landfill site. - Emissions to air: Emissions to air occur from the gas-fired steam boiler plant used to heat the paper drying sections and the corrugating machines. No data are available describing emissions to air from the boiler. However because the boiler is natural-gas fired, high emissions of particulate matter or sulfur oxides are not suspected. AA will monitor these parameters and also NOx emissions and take necessary actions to reduce emissions to IFC and local requirements should this monitoring show this to be necessary. The packaging printing processes are based upon water-based inks, hence there are no emissions to air of harmful organic solvents. - Occupational health and safety (OHS): All new recruits have basic training in industrial safety and precautions necessary in an industrial environment. Regular safety briefings are undertaken and all accidents are reviewed to identify causes and means to prevent repetition. Appropriate personal protective equipment is provided as required. Fire protection is provided by a hydrant system, AA will audit its OHS systems in order to determine their capacity to achieve OHSAS 18001 or equivalent certification, as required by IFC’s Occupational Health and Safety Guidelines, and will implement such corrective measures as this audit shows to be necessary. - Environmental management systems: AA does not have a formal environmental management system, but will monitor key indicators of environmental performance regularly and report results to IFC on an annual basis.

The following supporting document provide further details of environmental and/or social issues. - Environmental Action Plan.

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 Action Plans and - 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.