IFC requires that this document be 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: - Environmental and social performance of existing operations; - Land acquisition and permitting for expansion facilities; - Quality and sustainability of potable water supplies; - Air emissions and energy conservation; - Management of liquid effluents; - Management of solid waste; - Existing and planned food safety and quality management systems; - Hazardous materials management including refrigerants; 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 - the host country laws and regulations and the World Bank/IFC environment and social policies and the environmental, health and safety guidelines. Information about how these potential impacts will be addressed by the sponsor/project is summarized in the paragraphs that follow. Supplemental information is provided in the attached corrective action plan (CAP). - Environmental and social performance of existing operations Mironovsky has made positive progress in implementing the specific tasks required by the corrective action plan associated with the first IFC investment in 2003. With minor exception all tasks have been or will be completed in accordance with the mandatory schedule for completion, and with these exceptions are in compliance with WBG guidelines and policies. The company has made significant progress toward implementation of Hazard Analysis and Critical Control Point (HACCP) food safety system and will achieve future certification in compliance with the attached Corrective Action Plan (CAP). All facilities in the new project will be HACCP designed and constructed to facilitate HACCP certification in the near term. - Land acquisition and permitting Mironovsky has leased ~727 hectares (ha) from Kanev State Administration for the purposes of establishing all seven new, greenfield activities. The parcels leased for the project elements are low fertility that were not previously used. The leased project parcels were surveyed by the regional archaeological inspectorate for evidence of cultural properties and nothing of significance was found. A procedure is in place for chance finds during the construction phase. Additionally, a thorough assessment of the lands to be used and the facilities and operations to be placed on these lands was conducted by a number of government entities including District Soil Resources Management, State Ecological Inspection, District Architecture Department, District Sanitary Epidemiological Services, Cherkassy Archaeological Inspection Services; and State Administration. Mironovsky has obtained all required permits for and has complied with local public disclosure requirements for project elements. The project construction phase will employ ~3500 people and thee individuals will be transported from local villages to work sites throughout the construction phase. Subcontractors will operate out of temporary facilities in the nearest villages. The new installations will employ ~3000 people when completed. - Quality and sustainability of potable water supplies The project will rely exclusively upon ground water sources to meet its estimated total demand of ~400 m3/day. Some 55 wells will be constructed to serve diverse project facilities’ needs. Consistent with the potable water characterization and monitoring program established during the first Mironovksy project and with the requirements of the Hazard Analysis and Critical Control Point (HACCP) food safety program, Mironovsky will characterize each water source and construct any indicated treatment measures to ensure the potability and safety of the water source for its intended purpose. The existing potable water monitoring program will be extended to each of the new facilities as they commence operations. - Air emissions and energy conservation Mironovsky will utilize sweet gas supplied from a national distribution networks for heat and steam production in the planned, new facilities. Low energy consumption equipment with economizers to preheat of combustion air and feed water in accordance with the requirements of the State Committee for Energy will be installed for each facility. The crushing operation associated with the greenfield feed mill at Katerinopol will burn waste sunflower seeds from crushing operations to generate heat and steam (~20 tons/hour) for this operation. All electrical energy needs will be supplied by the national grid. - Management of liquid effluents Final configurations for storm water and wastewater management facilities will be conducted as part of detailed engineering for the new operations. Collected wastewater will be treated biologically to meet WBG guideline limits for organic and physical parameters and discharged to surface waters or the subsurface in accordance with local sanitary requirements and IFC/WBG guidelines in accordance with the attached CAP. - Management of solid waste The bulk of solid wastes will originate from animal husbandry operations. At present Mironovsky estimates that ~170,000 tons of dry organic manure will be generated annually. This waste will be collected and composted and then distributed for use as an agricultural fertilizer. Other solid wastes inappropriate for recycling or processing by state owned and operated enterprises will be disposed of in permitted landfills. - Existing and planned food safety and quality management systems Mironovsky is developing the prerequisite sanitary standard operating procedures for its existing operations and modifying physical facilities layouts and equipment as part of a program in place to obtain HACCP certification. The company will obtain HACCP certification for all of its slaughter and meat processing and packaging operations in accordance with the CAP. - Hazardous materials management including refrigerants Aside from ammonia utilized for refrigeration systems, Mironovsky does not utilize hazardous materials outside of small quantities utilized for laboratory operations. Ammonia refrigeration systems will be designed and constructed in accordance with local regulatory and international good practice requirements. - Occupational health and safety Existing company operations provide extensive employee training to ensure that employees are prepared for work assignments. 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 a comprehensive medical examination 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. Accordingly the company is expanding employee development programs, introducing graphic workplace signage, and improving lighting to match the requirements of specific tasks. Mironovsky is seeking certification (e.g. OHSAS 18000 or equivalent) of its occupational health and safety management system. These existing programs will be extended to the new operations and facilities comprising this second investment.

The following supporting documents provide further details of environmental and/or social issues: Corrective Action Plan (CAP).

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 activities as reflected in the results of periodic and quantitative sampling and measuring programs. Periodic site supervision visits will also be conducted.