26119 - NMC II

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Environmental & Social Review Summary

Project Number

26119

Company Name

AVA-PETER, OOO

Date ESRS Disclosed

Dec 6, 2007

Country

Russian Federation

Region

Europe

Last Updated Date

Jun 3, 2021

Environmental Category

B - Limited

Status

Completed

Previous Events

Approved : Feb 19, 2008
Signed : Feb 20, 2008
Invested : Jun 30, 2010

Sector

Hospitals and Clinics

Industry

Health, Education and Life Sciences

Department

Regional Industry MAS LAC & EUR

Project Description

The proposed IFC investment involves a local currency loan to finance the three-year expansion of the New Medical Center (NMC), a private provider of healthcare services in St. Petersburg, Russia and an existing IFC client. The proposed project comprises the following two main components:

- Refurbishment and operation of a clinic and hospital in Kazan (a public-private partnership with Kazan municipality);
- Refurbishment and operation of 10 satellite clinics across St. Petersburg.

Overview of IFC's Scope of Review

The review of this project consisted of appraising technical, environmental, health, safety and social information submitted by the project sponsor, and a site visit in July 2007. The environmental and social (E&S) appraisal team visited the company’s existing operations in St Petersburg, and also one of the satellite clinics. The E&S team also held meetings with NMC management and staff.

E & S Project Categorization and Applicable Standard

While all Performance Standards (PS) are applicable to this investment, IFC’s environmental and social due diligence indicates that the investment will have impacts which must be managed in a manner consistent with the following Performance Standards:

- PS1: Social and Environmental Assessment and Management Systems;
- PS2: Labor and Working Conditions;
- PS3: Pollution Prevention and Abatement;
- PS4: Community Health, Safety and Security;
- PS8: Cultural Heritage.

Land acquisition will be achieved through willing buyer willing seller arrangements, and there will be no involuntary resettlement or economic displacement. The project will not affect natural or modified habitats and there are no protected species or protected areas at or near the project sites. Indigenous Peoples were not identified in the project area of influence.

This is a Category B project according to IFC’s Environmental and Social Review procedures 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 project site locations are all in urban settings in either St Petersburg or Kazan. The satellite clinics will all be developed within existing residential or business developments (i.e. conversion of existing uses to medical clinics). The Kazan site is an existing hospital site that is currently derelict and which will be renovated. The company is in compliance with the requirements of the first IFC loan (project #10407, 2002) and has demonstrated a commitment and capacity to effectively manage environmental and social (including fire and life safety) risks during the first loan (which was also categorized as B).

Environmental and Social Mitigation Measures

- Environmental and social management and organization

Over the past 5 years the company has developed an informal social and environmental management system (SEMS) which ensures that waste, chemical handling, Occupational Health and Safety (OHS) and training issues are addressed. As the company scales up to a multi-site operation there is need to formalise and expand the scope of the SEMS and in particular to address reporting and accountabilities for SEMS delivery. The sponsor recognizes the need to develop a more formal and comprehensive SEMS, and will develop and implement this as a Condition of Disbursement (CoD) for funding.

The focus of SEMS will be on procedures and processes (including grievance mechanisms) necessary to ensure that there is effective management of E&S issues across all sites, and staff capacity building/training, and accountabilities will also be enhanced as appropriate. Solid waste management and handling, Fire and Life Safety (FLS), and OHS aspects will form the focus of the SEMS.

An environmental audit of the Kazan site will also be undertaken as a CoD to ensure that there are no environmental liabilities associated with former hospital use.

- Labor and Working Conditions

Human Resources (HR) Policy and Management:

Currently NMC employs 480 staff (72 % of these are full time posts), expanding to an estimated 1190 at full project completion. The company has a written HR policy which reflects Russian employment norms and requirements and there are formal employment contracts with all staff. Salaries for all staff are above minimum wage. Staff receive specific training when they join the company (including company rules and policies, fire and life safety, communication and client service) and professional staff are provided with opportunities for continuing professional development. Staff receive regular medical checks and medical staff are required to maintain a current “health passport” (confirming that they do not have infectious diseases).

Worker’s Organization:

Employees have the right to collective bargaining and freedom of association (and there are regular monthly meetings of HR department staff and employees).

Non-Discrimination and Equal Opportunity:

Hiring is conducted in accordance with the Russian Labor Code and there is a strict policy against discrimination based on gender, race, age or nationality. The HR department asserted that there is no discrimination and there is a broad mix of employees including disabled/visually impaired, and employees from several different regions/ ethnicities.

Protecting the Work Force:

Protection of the work force in Russia is provided through legislation, in particular the Labor Code. The Labor Code was updated in 2006 to provide extensive protection for workers and ensure that a large array of social benefits must be provided by the company. Overall, employee satisfaction appears high with 100% of employees having a labor contract and a low staff attrition/ turn over rate. There is no retrenchment anticipated for this project and there is a commitment to minimum age requirements for all employees and contractors.

For the construction/development of existing facilities, NMC applied labour (OHS and minimum age requirements) via FIDIC contracts to third party construction companies and they plan to do the same for all new works also.

Occupational health and safety (OHS):

OHS issues are addressed via training for all staff and through the provision of appropriate personal protective equipment for staff. The company maintains an accident log and investigates all incidences of accident.

- Pollution Prevention and Abatement

NMC will generate solid wastes and liquid effluents.

Liquid effluents:

Are currently discharged to functioning municipal sewers under licence and there is pre-treatment of effluents prior to disposal (including disinfection as necessary). Development of new sites will utilise similar approaches to waste water effluents and the project will comply with national laws and international funding requirements.

Solid Waste Management:

Solid waste from existing facilities (the Scandinavia clinic and satellite clinics in St Petersburg) is recycled where practical (glass, paper, plastics, mercury lighting, x-ray fluids and materials) and good industry practices are applied in terms of on site medical waste management (Class B wastes). Solid waste which cannot be recycled (and which does not contain infectious or highly hazardous materials) is managed to industry good practice standards by the sponsor. NMC uses the services of a State waste management agency - Spestrans – which is responsible for transport and final disposal. Spestrans dispose of an estimated 600,000m3/month of Class B wastes from all medical facilities in St Petersburg, of which NMC contributes in the region of 30m3/month. NMC does not generate Class V (highly hazardous wastes containing toxic or infectious materials).

The company has passed all inspections by Spestrans and also a recent (Feb 2007) State inspection by an independent review group (and has been cited as an example of best practices in medical waste management).

Similar methods of waste management will be developed for the new St Petersburg facilities and in Kazan.

The company has committed to using best efforts to promote the use of good practices in medical waste management via the nascent Association of Private Clinics in St Petersburg and will work more broadly to explore opportunities for improving medical waste management .

- Community Health, Safety and Security

Principal risks to community health and safety will relate to fire and life safety risks for patients and visitors to the company’s facilities. There is an acceptable level of Fire and Life Safety (FLS) control and management at the Scandinavia clinic: Smoke detectors, alarms, fire hoses and extinguishers are present throughout the facility and automatic powder fire control systems are present in the clinic’s boiler and generator rooms. There are twice monthly fire alarm tests and FLS training for all staff. The company has committed to the installation of relevant FLS requirements at all new facilities and confirmation that these have been designed/ installed will be a CoD for the current project.

Air conditioning systems at the Scandinavia clinic are managed and maintained regularly with specific interventions to reduce risk of disease (especially legionnaire’s disease).

There are no other significant community health risks associated with this investment.

- Cultural Heritage

The sponsor has renovated the Scandinavia clinic (which is in a preservation area in the centre of St. Petersburg) and adjacent public open space in a sensitive and culturally appropriate manner that was approved by the city regulators. Cultural heritage at Kazan (essentially the retention and preservation of the façade of a protected building), will be managed in accordance with local and international funding requirements.

Stakeholder Engagement

NMC has disclosed details of the proposed clinics in St. Petersburg and Kazan in accordance with Russian requirements for public consultation and disclosure, and will develop a grievance mechanism as part of the implementation of the SEMS.

The location of the environmental documents is as follows:

Rostehnadzor
E-mail: zakaz@rostehnadzor.ru
Telephone: +7 (812) 334-99-37
Website: http://www.rostehnadzor.ru

As well as, on the company’s website: www.avaclinic.ru.

To contact the project company, please write to:

Petersburg Complex Project
191024 Saint-Petersburg, 5th Soviatskaya St., 45, Letter A
Russian Federation

E-mail: pkp@inbox.ru
Telephone: +7 (812) 746-67-29
Website: www.pkp-piter.ru

Client Documentation

File Name	Actions
ESAP v2 Final Dec 3 2007.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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