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Approved : Mar 7, 2006 Signed : Apr 7, 2006 Invested : Mar 21, 2007
Sector
Storage (Including Agricultural Products)
Industry
other
Department
Regional Industry MAS LAC & EUR
Project Description
Trio is constructing a $57 million A-class automated low temperature warehouse and distribution facility to be located 11 km from the Moscow MKAD, southwest of the city, nearby to Yam settlement of Domodedovsky district. It will have a total storage capacity of about 22,000 mt, equivalent to a storing capacity of about 24,000 pallets of frozen meat, processed meat products, fish, and vegetables.
Environmental and Social
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 and social information submitted by the project sponsor. The following potential environment, health and safety and social impacts of the projects were analyzed.
- Land acquisition and planning procedures; - Air emissions and wastewater discharges; - Solid waste and hazardous materials management; - Occupational health and safety, including fire protection and emergency response; - Environmental, Health and Safety and Social 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. Land acquisition and planning procedures:
The company has signed the long-term lease contract with the local government and got the priority right to acquire the land. The area is 11.29 ha through a long-term lease of 49 years. The leased plot is located in Domodedovo district in the Moscow area (11 km to the south of Moscow) and comprises agricultural land, which has been re-designated as industrial land, fully in compliance with Russian requirements. No individuals lived on or derived economic benefits from this land before its leasing. In addition to lease payment, the company has paid a fee calculated to represent the opportunity cost of alternative use of the land to local government owners.
The project includes the construction of an access road and a 1.8 km rail spur. Under Russian legislation new developments are required to carry out an environmental impact assessment (EIA) study in order to identify, avoid or mitigate potential environmental and social risks associated with the project. The necessary studies are under preparation, and IFC will require evidence of compliance with these regulations following the review of the design documentation of associated infrastructure by the relevant environmental authorities.
On the completion of the project in 2008 Trio will employ 350 people.
- Air emissions and wastewater discharges
The company is planning to draw electricity from the grid. A gas-fired boiler will be used to provide space heating and supply hot water. An alternative option is to install a gas-fired power station for electricity and heat cogeneration. Utilizing heat generated from cooling equipment is also under consideration.
Space heating will be required for:
- the process control rooms of the warehouses, - office buildings, - repair workshops, - check-point office.
Hot water supply will be provided to all the lavatories of the enterprise.
Although air emissions are expected to meet IFC and local requirements, they will be monitored under the environmental management system. In case they exceed IFC requirements, the company will develop and implement corrective action required to achieve the compliance with IFC standards.
The company’s operations will generate sewage waste water and storm water. Both effluent streams will be discharged to the public utility system for further treatment.
- Solid and hazardous materials management
The materials handled by the company are essentially dry food products, which present no special hazards in storage.
The company will implement the innovative 2-steps cooling system using ammonia to provide the initial cooling of CO2 to be further used as the major refrigerant. This approach will allow significant reduction of ammonia to be stored at the site compared to 100% ammonia refrigeration system. Appropriate leak and gas detectors for CO2 and ammonia need to be installed in designated areas. In addition, suitable ventilation should be provided to ensure dispersal of any refrigerant leaks. The company is committed to develop a procedure for safe handling of hazardous materials and emergency action plan. Hazardous wastes such as mercury-containing lamps will be removed by the authorized licensed company.
To the extent possible, the company will promote recovery and reuse of recyclables such as cardboard, and remaining non-hazardous solid waste will be disposed at licensed landfill site.
- Occupational Health and Safety
The warehouse will be equipped with fire detection and suppressions systems, and appropriate fire exits.
As the company will be using CO2 as the major refrigerant, the risk of employees’ exposure to ammonia is low. Those employees who may be exposed to ammonia will be provided with personal protective equipment.
The company will have and maintain carbon dioxide detectors and alarm systems.
The company is committed to prepare a Life and Fire Safety Master Plan that include the above mentioned passive physical measures, but also an emergency response plan. Under the local Russian federation requirements the company is obliged to provide systematic training to employees on general safety precautions and specific procedures applicable to their job tasks.
- Environmental, Health and Safety and Social System
The company’s activity could have potential impacts upon the environment. The company recognizers the need for more systematic approach to identification and control of such risks. The company is intended to recruit an environmental specialist to evaluate EHS risks of the operations and to provide proper management of those risks.
The Environmental Action Plan (EAP), attached with this document and agreed upon between the IFC environmental team and the sponsor, will address the compliance gap with IFC’s requirement. The implementation of the Environmental Action Plan (EAP) will ensure that the proposed project will 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 following supporting documents provide further details of environmental and/or social issues:
Environmental Action Plan dated November 07, 2005.
Conclusion & Monitoring
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 described in the Environmental Action Plan (EAP).
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 ERS and the EAP, and - the results of periodic and quantitative sampling and measuring programs.
Press-Release
Related SPI
Environmental and Social Documentation
File Name
Actions
Trio_Inv.pdf
Similar Projects
This Environmental Review Summary (ERS) is prepared and distributed in advance of the IFC Board of Directors' consideration of the proposed transaction. Its purpose is to enhance the transparency of IFC’s activities, and this document should not be construed as presuming the outcome of the Board of Director’s decision. Any documentation that is attached to this ERS has been prepared by the project sponsor or in conjunction with the project sponsor and authorization has been given for public release. IFC has reviewed this documentation and considers that it is of adequate quality to be released to the public but does not endorse the content. The following ERS is disclosed in accordance with IFC's Disclosure of Information Policy that went into effect September 1998.
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