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.
- Environmental, Health and Safety (EHS) Management system:
Savservice operates as a holding company, with operational service to its ultimate clients being provided by separately structured company-controlled operating companies. The company also has a number of external clients at some of its facilities.
Certain of the operating companies have excellent environmental and occupational health and safety management practices. For example, at the Esma site in Kyiv these issues are managed in the context of an environmental, health and safety system, and will be integrated into a quality management system which has received ISO 9001 certification. The company expects to achieve ISO 14001 and OHSAS 18001 certification of this system during 2006. However these EHS management activities are local rather than company-wide initiatives and in the case of Esma were developed in response to the needs of sophisticated clients.
The Kalynivka site and others have tenants who may be involved in a variety of industrial enterprises some of which could have impacts upon the environment. The company recognizes the need for more systematic approach to identification and control of such risks, and to more systematic improvement of the company’s environmental performance, including identification and dissemination of existing internal best practices throughout the company. To address this issue, the company will recruit a corporate environmental specialist to evaluate environmental, health and safety risks of the current operations of the company and its company-owned and third-party tenants, to establish roles, responsibilities and provide appropriate resources; and to strengthen the process for internal/external communications on environmental issues. EHSMS will be integrated with other key organizational processes - to improve Savservice’s financial, quality, safety and environmental performance.
- Land acquisition and planning procedures:
The company has acquired 15 ha of land at Kalynivka, which was formerly an industrial park from its local government owners, the Kalynivka Settlement Council in 2004 and plans to acquire an adjacent 4.5 site, and then to purchase the combined site outright. This site had been abandoned for a considerable time before acquisition by Savservice, and was unoccupied: no humans lived on or derived economic benefit from this land before its acquisition. The land acquisition and leasing procedures used are in compliance with the Ukrainian legislation.
In addition, the company has acquired by lease from its local government owners an additional adjacent 22 ha area. This land comprises an unoccupied mixture of hayfield, green areas, a marshy area and open space. The land has been examined by Ukrainian authorities and found to have no archaeological, historical or unique natural value. In addition to lease payment, the company has paid a fee calculated to represent the opportunity cost of alternative use of the land. The land has been redesignated as industrial land, fully in compliance with Ukrainian requirements.
Under Ukrainian legislation new developments are required to demonstrate through environmental impact assessment (EIA) studies that they will not have negative impacts on environmental and social conditions at the site. The necessary studies are under preparation, and IFC will require evidence of compliance with these regulations following the review of design documentation by relevant environmental and sanitary authorities.
On completion of the renovation and expansion project in 2006, Kalynivka will employ 250 people. The company will give preference to hiring locally.
- Emissions to air and water:
The sites all purchase rather than generate electricity. Air emissions are limited to those arising from the transport fleet and from boilers used to provide space and domestic hot water heating.
The company uses modern West European vehicles. These are regularly maintained, thus limiting emissions to air.
Existing boilers at the Kyiv site use natural gas as fuel. Air emissions meet IFC and local requirements. The existing boiler at Kalynivka used heavy oil – “mazut” as fuel. This boiler is not currently operational and replacement by a natural-gas fired boiler whose air emissions will meet IFC and local requirements is ongoing. Boiler air emissions are not known at the other sites. They will be monitored under the expanded environmental management system, and plans developed for improvement to meet IFC and local requirements should this be necessary.
The company’s operations generate sanitary waste water and storm water run off must also be managed. Both are discharged to public utility systems.
- Solid and hazardous materials management:
The materials handled by the company are essentially consumer goods and dry food materials, which present no special hazards in storage.
The Kalynivka site has fuel storage tanks. These are equipped with secondary containment and inspection showed no evidence of spills. The company has not yet determined whether it wishes to continue to use the fuel storage facility: if it does the tanks will be inspected and an appropriate management plan developed. A gasoline refueling station acquired with the site will be dismantled. Otherwise, the company does not own or operate vehicle fuelling facilities, and fuels its vehicles at public facilities.
The company and its company-controlled tenants do have procedures for safe handling of hazardous materials such as solvents and compressed gases. Hazardous wastes such as mercury-containing lamps are removed by the authorized specialized licensed companies for disposal at authorized sites. Within its expanded environmental management framework, the company will provide suitable hazardous and solid waste disposal facilities for its external tenants, or require them to demonstrate that they already use appropriate means of waste disposal.
To the extent possible, the company will promote recovery and reuse of recyclables such as ferrous metals and cardboard, and remaining non-hazardous solid waste will be disposed at municipal landfill site.
- Occupational Health and Safety:
Existing warehouses are equipped with fire detection and suppressions systems (sprinklers), and appropriate fire exits. A Life and Fire Safety Master Plan has been prepared that include the above mentioned passive physical measures, but also an emergency response plan, which is practiced. The company provides systematic training to employees on general safety precautions and specific procedures applicable to their job tasks.
Similar Life and Fire Safety practices at new sites.
These procedures will be replicated throughout the company.
