25229 - Concordia Russia

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Environmental & Social Review Summary

Project Number

25229

Company Name

MIRATORG ZAPAD, OOO

Date ESRS Disclosed

Nov 22, 2006

Country

Russian Federation

Region

Europe

Last Updated Date

May 4, 2024

Environmental Category

B - Limited

Status

Completed

Previous Events

Approved : Jan 30, 2007
Signed : Apr 2, 2007
Invested : Jun 17, 2008

Sector

Animal Slaughtering and Processing

Industry

other

Department

Regional Industry MAS LAC & EUR

Project Description

The project consists of construction and operation of a green-field meat processing plant in Kaliningrad, Russia with initial installed capacity of 53,000 ton per year, expandable to 110,000 ton per year, of breaded, molded, and smoked meat products and ham. The project will increase domestic production and reduce Russia’s reliance on imported meat products.

Overview of IFC's Scope of Review

The initial review of this project consisted of appraising technical and environmental/social information and plans submitted by the project sponsor. A physical review of proposed operations by an IFC environmental and social specialist was carried out to finalize this review.

E & S Project Categorization and Applicable Standard

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 following potential environment, health and safety and social impacts of the projects were analyzed:

- Environment and social management system;
- Quality and availability of potable water;
- Wastewater management;
- Solid waste management;
- Occupational health & safety issues related to physical and biological hazards;
- Use of ozone-depleting refrigerants;
- Food safety;
- Labor and working conditions;
- Community health and safety;
- Land acquisition.

Environmental and Social Mitigation Measures

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.

- Environmental and social management system

The environmental and social management system (ESMS) and operational procedures (OPs) will be developed based on the systems used in Sadia, the main shareholder. ESMS and OPs will be tailored to accommodate the design of the plant and the local regulatory requirements with the help of technical consultants from Sadia and local experts.

- Quality and availability of potable water

Potable water will be extracted from two wells that are owned by the company and will have a capacity of 1000 cubic meters per day. The company’s potable water needs will be fully covered by extraction permits that have already been obtained from the local authorities.

- Wastewater management

Process and storm wastewater will be pretreated for solids and fat removal at Concordia’s pre-treatment facilities. After pre-treatment it will be combined with domestic wastewater from the plant will be treated at the municipal waste water treatment facilities which Concordia will renovate and install a new wastewater treatment system that will be sufficient for project’s needs.

- Solid waste management

The company will collect and recycle all recyclable waste from the facility (mostly plastic and carton). It is expected that recyclable waste will include about 600 t of carton and 300 t of plastic per year which will be recycled by the independent contractors on a commercial basis. The company also plans to recycle organic waste from meat by selling it to private pet-food production facilities.

- Occupational health & safety issues related to physical and biological hazards

The facility will be designed with four separated and completely contained areas for four different levels of biological hazard risk for the production process. Each of the four areas will have separate access and full separation of people and equipment in order to avoid cross–area contacts. The facility will comply with EU regulations and local requirements for biological hazard risks.

- Use of ozone-depleting refrigerants

The company is currently finalizing the design for its production processes and currently plans to use exclusively non-ozone-depleting refrigerants in its operations.

- Food safety

The facility will process fresh chilled meat and fresh frozen meat. Food safety is considered a top priority and a food safety audit will be commissioned upon completion of the facility with subsequent HACCP certification of the facility.

- Labor and working conditions

The company plans to hire about 550 staff for its operations which will include 450 facility operating staff and about 100 administrative staff. The company will comply with the Russian Labor Code and IFC’s Performance Standards in developing and implementing its labor policy and ensuring safety of working conditions.

- Community health and safety

The company plans to develop an emergency response plan that will include emergency notification system for surrounding communities.

- Land acquisition

The company has acquired lease rights for a plot of land (28.3 ha) for this project. Most of the land (18.3 ha) was acquired from the local government and additional land (10 ha) was acquired from private owners. All land was acquired in an open transaction and the local government followed the necessary disclosure procedures for the transfer of land to the company. The company has completed archaeological research mandated by the local legislation, de-mining, and received permits for top soil removal and on-site infrastructure development.

Stakeholder Engagement

The company is currently engaged in the process of developing its procedures for communication, engagement and development of the local communities. To date, an investment agreement has been signed with the local administration that defines concrete steps to be taken by the company to contribute to the community’s development and infrastructure upgrade.

The final project design of the facility is expected to be completed by Kaliningradpromproekt (KPP) in January-February 2007. At the same time the complete ESIA (OVOS) that will be prepared by KPP that will be publicly disclosed and public hearings will be held according to the local legislation. The Company will make available to the community OVOS documents as well as a summary of environmental and social impacts of its operations.

Information inquiries can be directed to:
Mr. Renato Ruszczyk, General Director
OOO Concordia
Kaliningrad, Russia
+7-4012-59-53-06 (Telephone)
+7-4012-59-53-10 (Fax)

Client Documentation

File Name	Actions
Concordia ESAP Nov 16.pdf

**Information on IFC's Policy and Performance Standards on Environmental and Social Sustainability can be found at www.ifc.org/sustainability

IFC supports its clients in addressing environmental and social issues arising from their business activities by requiring its real sector clients to set up and administer appropriate grievance mechanisms and/or procedures to address complaints from Affected Communities in relation to environmental and social issues arising from IFC's clients' business activities. Since 2012, IFC's Financial Intermediary clients applying the Performance Standards are required to develop External Communications Mechanisms to receive and review inquiries or complaints from any interested party regarding the E&S risks and impacts of their operations.

For IFC projects that are active or under consideration, individual(s), or their authorized representative(s), who allege they have been or will be adversely affected by E&S risks or impacts arising from IFC's clients' business activities, may submit a complaint to IFC directly for consideration. When receiving an E&S complaint, IFC engages with complainants and works with its clients to find solutions to E&S concerns as quickly and efficiently as possible.

Complaints can be submitted to IFC online at www.ifc.org/escomplaints or by email to EScomplaints@ifc.org.

IFC complaint response is separate from and complementary to IFC’s clients’ project level grievance mechanisms and IFC’s Independent Accountability Mechanism (CAO). Lodging a complaint directly with IFC does not, at any time, restrict access to CAO.

Affected communities have unrestricted access to the Compliance Advisor Ombudsman (CAO), the independent accountability mechanism for IFC and MIGA. CAO facilitates the resolution of complaints related to IFC and MIGA projects and sub-projects, undertakes reviews of IFC’s and MIGA’s environmental and social compliance, fosters public accountability for their commitments, and enhances the environmental and social performance of IFC and MIGA.

Independent of IFC and MIGA management and reporting directly to the IFC and MIGA Boards of Executive Directors, CAO helps resolve issues raised about the environmental and social impacts of projects through a neutral, collaborative, problem-solving approach via its Dispute Resolution function. It also reviews IFC’s and MIGA’s compliance with environmental and social policies, assesses related harm, and recommends remedial actions through its Compliance function. Additionally, CAO provides advice to IFC, MIGA, and their Boards to enhance environmental and social sustainability performance and minimize the risk of harm.

Complaints may relate to environmental and social harm regarding any aspect of the planning, implementation, or impact of a project or sub-project, and can be made by any individual, group, community, entity, or other party affected or likely to be affected by the environmental or social impacts of an IFC- or MIGA-financed business activity.

Complaints can be submitted by any of the following methods:

Online form: available at https://www.cao-ombudsman.org/
Mail/Hand Delivery to: 2121 Pennsylvania Avenue, NW, Washington, DC 20433, USA
Voice mail: +1 202 458 1973
Email: cao@worldbankgroup.org
SMS, WhatsApp, Telegram, and Signal: +1 202 650 2627

CAO receives and addresses complaints in accordance with the CAO Policy, which can be accessed at: https://www.cao-ombudsman.org/policies-guidelines.

This Environmental and Social Review Summary (ESRS) is prepared by IFC to disclose its findings and recommendations related to environmental and social considerations regarding potential investments. Its purpose is to enhance the transparency of IFC's activities. For any project documentation or data included or attached herein, whether prepared by the project sponsor or otherwise, authorization has been given for public release by the project sponsor. IFC considers that this ESRS is of adequate quality for release to the public, but has not necessarily independently verified all of the project information therein.
It is distributed in advance of IFC Board of Directors' consideration and may be periodically updated thereafter. Board dates are estimates only and this document should not be construed as presuming the outcome of the Board Directors’ decision. The following ESRS is disclosed in accordance with IFC's Access to Information Policy (AIP).

The map is for illustrative purposes and does not imply the expression of any opinion on the part of the World Bank, concerning the legal status of any country or territory or concerning the delimitation of frontiers or boundaries. Country borders or names do not necessarily reflect the World Bank Group's official position. In some cases, available project location information is limited to the country of the project's activities. Locations are approximate.

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Environmental & Social Review Summary

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Overview of IFC's Scope of Review

E & S Project Categorization and Applicable Standard

Identified Applicable Performance Standards

Environmental and Social Categorization and Rationale

Environmental and Social Mitigation Measures

Environmental and Social Mitigation Measures

Stakeholder Engagement

Stakeholder Engagement

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