25323 - SEF Konstruksion

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Environmental & Social Review Summary

Project Number

25323

Company Name

Konstruksione Metalike shpk

Date ESRS Disclosed

Sep 6, 2006

Country

Albania

Region

Europe

Last Updated Date

Jun 3, 2021

Environmental Category

B - Limited

Status

Completed

Previous Events

Approved : Jan 22, 2007
Signed : Jan 22, 2007
Invested : May 11, 2007

Sector

Other Steel Products (Including Wire, Metal Sheets etc.)

Industry

Manufacturing

Department

Regional Industry MAS LAC & EUR

Project Description

Konstruksione Metalike was established in 1993 and is one of the most successful businesses in Albania in the large metal structures sector. It is owned and managed by three experienced mechanical engineers who have known and worked with each other for over 30 years. The company has been growing consistently over the last five years and is now the largest producer and assembler of light and heavy metal structures (e,g, steel structured buildings of all types) in Albania. The 7 million euro project has three phases as follows:

- to purchase 8,000 m2 of land zoned for industrial use on the outskirts of Tirana (on the way to the airport). This phase has now been completed and the land has been purchased;
- to build a 4,000 m2 workshop with an attached underground parking garage and 1 story building to house their office and showroom. This phase of the project also includes the purchase of new equipment to enable the company to increase capacity, improve their efficiency, and maintain their quality; and
- in the future phase 3 will involve adding three more stories to the office building to provide additional office space for rent.

Overview of IFC's Scope of Review

IFC’s review of this project involved analyzing project documentation provided by Konstruksione Metalike as well as site visits to the company’s existing workshop and offices, the site of the proposed new facilities, and to a number of their construction project sites in and around Tirana. Meetings were held with company management in Tirana and specifically with the company’s General Manager and Administrator.

E & S Project Categorization and Applicable Standard

The following Performance Standards (PS) apply to this project:

- PS 1 Social and Environmental Assessment and Management Systems;
- PS 2 Labor and Working Conditions;
- PS 3 Pollution Prevention and Abatement;
- PS 4 Community Health, Safety and Security; and
- PS 5 Land Acquisition and Involuntary Resettlement.

PS 6 Biodiversity Conservation and Sustainable Natural Resource Management does not apply to this project given the location of the new workshop and office facilities (i.e. in an industrial zone). PS 7 Indigenous People (IP) does not apply as there are no IPs involved or impacted by this project. PS 8 Cultural Heritage does not apply as there is no cultural heritage impacted by this project.

The relevant PSs have been provided to and discussed with the client as have the relevant IFC Guidelines (i.e. General Environmental Guidelines, July 1998; Occupational Health and Safety Guidelines, June 2003; and Life and Fire Safety Guidelines, December 2002).

The project involves the construction and operation of a new workshop and office facilities for a company in the large metal structures business to be located in an industrial zone near Tirana. Based on the site visits and discussions with Konstruksione Metalike management, IFC believes this project will have limited potential adverse environmental and social impacts. Also any impacts will be few in number, site-specific, reversible and easily addressed through agreed mitigation measures. As a result this is a Category B project.

Environmental and Social Mitigation Measures

The client has presented plans to address any impacts to ensure that the proposed project will, upon implementation of the specific agreed measures, comply with the environmental and social requirements of Albania as well as the IFC environment and social policies and the environmental, health and safety guidelines. The information about how these potential impacts will be addressed by the management project is summarized in the paragraphs that follow.

The proposed new workshop and office building of Konstruksione Metalike will pose only a very limited impact on the environment and the neighboring community. These new facilities will be located in an industrial area on the outskirts of Tirana. The local municipality has provided the necessary permits for this industrial development under regulations laid down by the Government of Albania. The local permitting process is as follows:

- The company files a single detailed application to the local municipality: this application covers the following items: use of electricity, telecommunications, fire protection, healthcare issues, land use and urban planning, and environmental issues such as water supply, wastewater discharge, and handling and disposal of garbage;
- Once all the relevant government agencies are satisfied with the company’s application, the local municipality provides Planning Permission;
- Once the Planning Permission is issued by the local municipality the company can begin constructing the workshop and office facilities;
- Once the building is constructed each government agency covered in the Planning Permission inspects the new facilities for compliance with Albanian requirements;
- Once these inspections are completed satisfactorily, the municipal authorities issue the permit/license to operate; and
- Once the final license to operate is issued by the municipality it is registered with the central tax authorities, the relevant Ministries of the Government of Albania, and the local community.

The local community provides input to the municipal authorities during the initial Planning Permission process. Each of the government agencies covered in the Planning Permission document inspects the company’s facilities on an annual basis. However those agencies covering water supply and wastewater discharge complete random checks more regularly (e.g. about 3 times per year). Thus in Albania for this type of small industrial development there is an integrated permitting process with local community input as well as an integrated inspection/monitoring process.

As a result of their existing operations in Tirana Konstruksione Metalike already has in place a very strong management team. The company has a very strong quality focus and has achieved ISO 9001 -2000 (Quality) certification. In addition the company has 1 well trained and experienced engineer with clearly defined responsibility for environment, health and safety (EHS). Konstruksione Metalike’s construction team will supervise the construction of the workshop and office facilities – a role they are very well equipped to undertake given their wide experience in the steel building construction sector.

Konstruksione Metalike will have approximately 120 workers after the move to the new workshop and office building, with 70 workers in the manufacturing and assembly operations and 50 administrative staff (e.g. engineers, designers, accounting, sales, human resources). The company has a small Human Resources (HR) Department, with an HR Manager. The company has HR policies and procedures that comply with the Government of Albania’s requirements. Each employee has an employment contract which is reviewed and signed by each employee when they start work at the company. Each year as required by law negotiations are held with each staff member regarding their salary with minimum salaries specified by the Government (as are requirements for overtime pay, sick leave and vacation) – bonus are also paid based on individual performance. Each worker has a file where his performance is detailed on a regular basis (e.g. quality of work). Each year an HR Committee of senior company management and employees review this file and prepare a detail performance evaluation which is discussed with the staff member. This is a key input to the decision regarding salary increases. Salaries and benefits are very good by standards in Tirana. The company has a strong focus on quality and thus on staff training. The company has an excellent team of workers who are experienced and very dedicated and who have been with the company for a number of years. However the company does have difficulty in finding well qualified new workers not only in the trades area (e.g. welders) but also engineers – thus the need to provide additional training and supervision to new entrants to the company.

As noted above Konstruksione Metalike has an engineer responsible for worker health and safety (OHS). The company has OHS procedures in place and staff undergo training once per month – all workers must by law sign that they have taken and understand the training provided. The Government’s Labor Inspectorate make spot inspections of the company’s workshop and construction sites. The current (and new) workshop has a small medical room with a first aid kit which is adequate for small cuts etc (the most common injury) – the company has experienced no serious injuries to date and if such an accident occurred there is a hospital close to the workshop.

Based on the visit to the current workshop which is in a very old building, work practices were very good. Obviously the work environment in the new workshop will be much improved. Again based on visits to a number of construction sites, work practices were adequate.

With regard to the new office building, the need for a Life and Fire Safety Master Plan as required by IFC’s Guidelines was discussed with company management. It was agreed that the Life and Fire Safety Master Plan would be prepared by an expert acceptable to IFC and sent to IFC for review and approval before the start of construction (Fall 2006).

Raw water is supplied from the municipal system and is of acceptable quality and quantity. However as backup the company has permission from the authorities to drill a 60 m well onsite to supply water for industrial use only (about 4 to 6 litres per second). The main industrial use is in their new paint area where steel profiles are washed and painted. The new paint booth will be closed and will be supplied by Maxwer, an Italian supplier, and will meet EU EHS requirements. Wastewater from the paint shop will be treated in special filters and recycled back to this process area. Once per week this treated wastewater will be discharged to the local municipal sewer system. Used filters are returned to Maxwer for treatment and then reuse. Other wastewater (mainly domestic wastewater and lightly contaminated washwater from the workshop) will be discharged directly to the municipal sewer system for treatment prior to disposal. A dual fuel (LPG and fuel oil) boiler will provide heating as well as cooling. The fuel oil tank will be below ground in a concrete structure with all the required safety equipment. Welding and cutting gases will be stored and handled with due regard to OHS issues. The major solid waste is metal which is collected and sold to a recycler. Other solid waste is collected once per week by the municipal authorities and the company pays a fee for this service.

There are few, if any, community impacts associated with this project. The company moves its raw material and finished products to and from its workshop by truck. Trucks are contracted from reputable transportation/logistics companies in Tirana. The new workshop is located beside the main highway from Tirana to Durres, the second largest city in Albania. The company’s operations do not use or produce hazardous materials. Konstruksione Metalike will hire its own very small security staff who will be trained. The security staff will look after the smoke and fire alarms systems in the workshop and office building.

Konstuksione Metalike has purchased the 0.8 ha site for this project at fair market value from the previous land owner. There is a well functioning and transparent market for the selling and purchase of real estate in this part of Albania. There are no economically or physically displaced persons or resettlement of any sort from the purchase of this land on the outskirts of Tirana.

Stakeholder Engagement

Konstruksione Metalike is an existing and well known company in Albania in the steel structures construction business. The company has an excellent reputation for quality and for being an excellent employer. The company’s new workshop and office facilities will be located on an 0.8 ha site in an industrial zone on the outskirts of Tirana (on the way to the airport). The local permitting process has provided an opportunity for the local community to be informed and consulted about this small industrial development. In addition management has an open door policy with regard to these issues.

**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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