30249 - Altyn Ajydar IV

Who We Are
Who We Are

IFC is the largest global development institution focused on the private sector in developing countries. By encouraging growth, IFC advances economic development, creates jobs and improves the lives of people.
More About Us
About IFC

Our Leadership

Development Partners
Accountability

Learn more about accountability
Annual Report

Download the Report
What We Do
What We Do

IFC advances economic development and improves the lives of people by encouraging the growth of the private sector in developing countries. We achieve this by investing in impactful projects, mobilizing other investors, and sharing expertise.
What We Do Overview
SOLUTIONS

Our products and services
OUR PRIORITIES

Climate Business

Fragile & Conflict Afflicted Situations

Gender

Mobilizing Private Capital

Sustainability
SECTORS & EXPERTISE

Agribusiness & Forestry

Creative Industries

Education

Financial Institutions

Funds

Health

Infrastructure

Manufacturing

Public-Private Partnerships

Tourism, Retail & Property

Trade & Supply Chain Finance

Venture Capital

Working Upstream
Where We Work
Where We Work

As the largest global development institution focused on the private sector, IFC operates in more than 100 countries around the globe. We apply lessons learned in one region to solve problems in another.
Overview
By Region

Africa

East Asia and Pacific

Europe

Latin America and the Caribbean

Middle East and Central Asia

South Asia
Our Impact
Our Impact

Our impact improves lives. IFC brings a clear set of advantages to the world’s most challenging markets. Including a history of innovation, a global mandate, and a determination to achieve measurable development impact.
Our Impact Overview
PRINCIPLES & MEASUREMENT

Impact Investing at IFC

Measuring and Monitoring (AIMM)

Evaluation

Sustainable Development Goals (SDGs)

Owned by 186 member countries and consistently rated AAA/Aaa. IFC aims to achieve our mission of promoting development by providing debt and equity to the private sector, through a range of benchmark and bespoke products.

For Partners

For Investors

Get in Touch

Environmental & Social Review Summary

Project Number

30249

Company Name

Intermultiservice LLC

Date ESRS Disclosed

May 23, 2011

Country

Kazakhstan

Region

Central Asia and Turkiye

Last Updated Date

Jul 31, 2021

Environmental Category

B - Limited

Status

Completed

Previous Events

Approved : Jun 23, 2011
Signed : Jun 29, 2011
Invested : Apr 11, 2012

Sector

Paper Packaging Products (Including Boxes, Cartons, etc.)

Industry

Agribusiness and Forestry

Department

Regional Industry MAS MCT

Project Description

The Intermultiservice packaging material project is to develop in Almaty, Kazakhstan, a subsidiary of the existing AA operations in Bishkek, transforming cardboard and paper into printed corrugated cardboard packaging and utilizing waste materials from this production for the production of egg trays. The production will be limited to corrugation and gluing of cardboard and paper into packaging materials, printing these according to client needs, and preparing the final packaging shapes. Waste materials from this production together with locally collected waste paper will be utilized in a batch slurrying process to recover fibers for use in egg tray production.

Overview of IFC's Scope of Review

The review of this project consisted of appraising technical, environmental/social and occupational health and safety (OHS) policies, plans and procedures submitted by the project sponsor and an on-site field visit of both Altyn Ajydar''s (AA) existing operations in Bishkek, Kyrgystan and the site for the proposed new corrugated cardboard packaging and egg tray production plant in Almaty, Kazakhstan, to be established as a fully owned subsidiary under the name Intermultiservice, by an IFC E&S specialist. IFC has been involved in the financing of AA in Bishkek since 2002. As part of IFC''s involvement with AA the company has implemented several Environmental and Social Action Plans, has undergone a Labor Audit by external consultants and implemented the corresponding labor practices improvement measures, and is in the process of finalizing the implementation of a specific Occupational Health and Safety Plan. The previous Environmental and Social Review Summary (ESRS) and Environmental and Social Action Plan (ESAP) were disclosed by IFC on May 21, 2008, and can be found using this link: Project #26690

E & S Project Categorization and Applicable Standard

Performance standards that are expected to be applicable for this investment will include:
- PS 1. Social and Environmental Assessment and Management System;- PS 2. Labor and Working Conditions;- PS 3. Pollution Prevention and Abatement; and
- PS 4. Community Health, Safety and Security.

The site for the new packaging material plant has been bought through a willing-seller / willing-buyer transaction and is located within a dedicated light industrial area with no residential neighbors, thus not resulting in issues with respect to Land Acquisition and Involuntary Resettlement (PS5). Due to the site being in dedicated industrial areas, there are no issues relating to Biodiversity Conservation and Sustainable Natural Resource Management (PS6) while Indigenous Peoples (PS7) or Cultural Heritage (PS8) aspects are also not present in the project’s areas.

This is a Category B project according to IFC’s Procedures for Environmental and Social Review 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, WBG’s EHS guidelines or design criteria. The following environment, occupational health and safety and social impacts of the project were analyzed:
- Parent company''s management of environmental and health & safety affairs;- Parent company''s adherence to existing action plans;
- Sustainable raw material supply and utility connections;- Waste generation and recycling;
- Effluent treatment and discharge quality;
- Air emissions; and - Employment conditions.

Environmental and Social Mitigation Measures

Altyn Ajydar (AA), the parent company, has over the time of IFC''s involvement with the company implemented agreed upon ESAPs addressing the E&S issues relating to its paper recycling and cardboard production, as well as window production in Bishkek, and is presently finalizing the implementation of a comprehensive health & safety action plan at these facilities.

The proposed project will, upon implementation of the specific agreed measures for the new site, to be established as a fully owned subsidiary named Intermultiservice, comply with the environmental and social requirements, namely the applicable Kazahk laws and regulations, the IFC Performance Standards and the applicable generic and sector-specific World Bank Group (WBG) Environmental, Health and Safety (EHS) Guidelines. The information about how these potential impacts will be addressed by the sponsor/project is summarized in the paragraphs that follow.
PS1: Social and Environmental Assessment and Management Systems:

The new production is to be located at a 1.5 hectare site within a light industrial area of Almaty city. Intermultiservice will as part of the project preparation renovate some buildings already existing at the site, have a construction company design and get approval for a new corrugation, gluing, printing, and cutting building. The corrugation, gluing and cutting machines will be supplied from China, while the offset printing machine is already available at the site and is currently being overhauled. As soon as the production layout is established Intermultiservice will seek the appropriate permits according to local regulations.

The parent company Altyn Ajydar has implemented management system according to agreed ESAPs and H&S action plan at its Bishkek facilities in accordance with previous agreements with IFC. This has included hiring of professionals in the respective areas and establishing management routines. The systems to be established in Intermultiservice will partly be based on the principles used in AA''s Bishkek operations and partly on managerial experience established in Almaty based on Kazakh regulations.
PS2: Labor and Working Conditions:

The parent company Altyn Ajydar has undergone a labor audit as part of agreements with IFC under previous projects, which resulted in improvement of labor practices in the company and development of procedures in conformity with the IFC Performance Standard 2. The AA’s subsidiary company in Almaty, Intermultiservice currently does not have an HR Department established and the company’s secretary is taking care of all labor contracts with employees. At the present time Intermultiservice employs around 6-7 people, and plans to expand its staff with the establishment of production. Intermultiservice will set up all necessary HR procedures to be based on AA’s after-audit experience, Kazakh law and be in line with IFC Performance Standard 2 as soon as it starts its new facility’s operation.
The new operations will be in a mix of already existing concrete and sandwich panel buildings and a new production building to be designed by a local construction design company. Life and Fire Safety (L&FS) will be included in the design of the building and will as a minimum include fire hydrants distributed to be able to reach all corners of the production and storage facilities, as well as assurance of dual exits from all operations for appropriate egress. The facilities will be equipped with fire alarm system, and emergency drills, inspections and functional tests for the fire safety equipment will be regularly conducted and recorded.

The new operations will follow the OHS practices developed by the parent company at its production facilities in Kyrgyzstan, be based on Kazakh law, and supported with all required documentation. Intermultiservice has already hired an OHS officer, who was responsible for that area of work at the previous production located on the site purchased by the company. The OHS officer will be also additionally responsible for environmental and fire safety issues.

PS3: Pollution Prevention and Abatement:
The only processes to take place at the production site in Almaty will be receiving of raw materials (rolls of flat cardboard, 70% from the Bishkek production facility, and 30% imported from Russia), corrugating of this cardboard and gluing in 3-7 layers with paper to form strong corrugated cardboard sheets, printing of these sheets in offset printing according to client needs, cutting/cluing and folding into final packaging materials. Cutting waste will be processed into slurry and used for production of up to 1 million egg trays per year.

All utilities, including electricity, water, steam, heating and waste water treatment will be supplied from the public utility systems. Water used in production would be recycled, and only insignificant quantities discharged into the municipal sewage system, and then treated by the municipal waste water treatment plant. Solid waste from the main corrugated cardboard packaging production will consist mainly of up to 50 tons of cutting waste, which together with approximately the same amount of recycled paper fibers sourced on the local market will form the basic raw material for the egg tray production. The only water usage, beside domestic usage will be for the egg tray slurry and this will be recycled to be used in preparing paper mixture for the egg tray production. All other waste types will only be generated in limited amounts and will be handled by the approved local waste handlers.

PS4: Community Health, Safety and Security:
The project site is located approximately 10 kilometers north-north-west of Almaty city center in a dedicated industrial area a few kilometers west of the city''s airport. Raw materials, consisting mainly of rolls of cardboard and paper, will be received by rail, which runs directly to the border of the site. Final products will be delivered to the company''s clients, who are mainly in Almaty city, by trucks. Due to the plant site being in an industrial area with close access to the main road network, no significant impact is anticipated on the communities. The main risk that could reach residential areas might be related to fire safety and smoke generation should a fire occur. To limit this risk the plant will be equipped with fire protection equipment, including fire hydrants, and separation between production and storage areas.

Stakeholder Engagement

The parent company in Bishkek is an important player in city’s economy providing employment opportunities for local communities. The company is also engaged in charitable activities providing support to orphanages and children with disabilities. Altyn Ajydar sponsors sport events and provides continuous support to development of children’s sport sections – box and tennis. Every year on Children’s Day (June 1st) Altyn Ajydar brings presents to the Ivanovskiy orphanage. The company plans to engage in similar activities in Kazakhstan when production is established there.

The new project and its E&S impacts would be analyzed by an independent company as part of environmental impact assessment required by Kazakh law. The information on preliminary expected E&S impacts has not been disclosed yet, but this would be done locally at the project site in Almaty.

Intermultiservice will make the current ESRS/ESAP locally available, in Russian language, at the entry to the industrial site at 96 V, Bekmahanova Str, Almaty, tel/fax: 8 - 727 - 252 – 7376, and inquiries can be addressed to:

Intermultiservices
121, Otegen Str., Kordai village, Kordai district, Jambyl region, 080400 Kazakhstan
Tel.: +7 700 463 3229
Alexander Litvichuk, General Director

Client Documentation

File Name	Actions
Intermultiservice ESAP 23May11.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.

Projects

Environmental & Social Review Summary

Project Description

Overview of IFC's Scope of Review

E & S Project Categorization and Applicable Standard

Environmental and Social Mitigation Measures

Stakeholder Engagement

Client Documentation

Similar Projects

Projects

Environmental & Social Review Summary

Project Description

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

Local Access of Project Documentation

Press-Release

Related SII

Client Documentation

Similar Projects

Information on E&S Complaints and Grievance Mechanisms

Disclaimer