31993 - Strominvest II

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Environmental & Social Review Summary

Project Number

31993

Company Name

STROMINVEST LLC

Date ESRS Disclosed

Jul 14, 2015

Country

Belarus

Region

Europe

Last Updated Date

Jun 12, 2021

Environmental Category

B - Limited

Status

Completed

Previous Events

Approved : Oct 28, 2015
Signed : Nov 20, 2015
Invested : Dec 29, 2015

Sector

Construction and Real Estate

Industry

Tourism, Retail and Property

Department

Regional Industry MAS LAC & EUR

Project Description

IFC is considering an investment, in the form of a corporate loan of up to US $17 million in EUR equivalent, to Strominvest Group (the “group”, the “company” or “Strominvest”), the leading construction and development company in the Republic of Belarus. The company is undertaking a project for a construction of an affordable housing complex, located in west of Minsk with the total size of 20,000 sq.m. and with the total project cost of US$25 million.

The group’s main assets are: 10.5k sq.m. A-class business centre (Erilin), which is an existing IFC investment committed in 2008, 125 room 3 stars BonHotel (Srominvest-Estate), 3.810 sq.m. B-class business centre (Strominvest), and mixture of trade and retail centers with the total space of 2,200 sq.m. (Strominvest).

Affordable housing by Strominvest is represented by high-rise apartment blocks, with average flats’ size of 58 m2, built across Minsk. Residential complexes are connected to public utilities; equipped with necessary infrastructure for comfort and safe living (like elevators, fire protection systems, ventilation); and typically include a playground for children and open parking. Kamennaya Gorka 3 (the project) will comprise two 19-storey buildings and one 10-storey building. Construction will commence in 2015 and will take 24 months to complete.

Overview of IFC's Scope of Review

The appraisal took place during November 19-20, 2014, in Minsk, and comprised meetings with senior executives and specialists covering various environmental, health and safety aspects of the company’s operation. E&S review was focused on the company’s housing business sector. The hotel and other assets were not subject to a detailed due diligence. Appraisal included a site visit to the completed Strominvest residential project Kamennaya Gorka 5 and a site of proposed residential project – Kamennaya Gorka 3 (vacant land).

E & S Project Categorization and Applicable Standard

While all Performance Standards are applicable to this investment, IFCs 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. If IFCs investment proceeds, IFC will periodically review the the project’s ongoing compliance with the Performance Standards

PS 1 – Assessment and Management of Environmental and Social Risks and Impacts
PS 2 - Labor and working conditions
PS 3 - Resource Efficiency and Pollution Prevention
PS 4 – Community Health, Safety and Security
If IFC’s investment proceeds, IFC will periodically review the the project’s ongoing compliance with the Performance Standards
Vacant project land at Kammenaya Gorka 3 has been made available by the Government and already has the necessary zoning and the majority of the consents. No physical or economic displacement was caused by this transfer, meaning that Performance Standard 5 was not found relevant to this development. Performance Standards 6-8 were also found not to be relevant to this project.

Based on information reviewed by IFC this proposed investment is expected to have limited environmental and social impacts which are expected to be site-specific and none is expected to be significant. Those impacts can be avoided or mitigated by adhering to recognized performance standards, procedures, guidelines and design criteria, as described in the following sections. Thus, this is a Category B project in accordance with IFC’s Environmental and Social Sustainability Policy.

Environmental and Social Mitigation Measures

Stakeholder Engagement

External Communications and Grievance Mechanisms
The company is building in areas of the city which are not yet largely developed. No ‘infill construction’ on underused landspots is planned and, therefore, the company does not expect grievances from local residents regarding construction impacts.

Strominvest has a formal external grievance mechanism where neighboring communities can raise and register their concerns. There were no concerns raised previously for the completed and ongoing projects. The information related with Strominvest’s grievance mechanism is shared at the gates of the project sites.
The interested parties can also share their concerns with the local authorities where the local authorities will follow up and provide feedback.

Land use regulation such as zoning in the City of Minsk is legally based on the approved Master Plan of the City, which has been developed in consultation with its citizens and public organizations. Master Plan and individual sites planning is available for residents, who could leave their comments and suggestions in a written form. Particularly, Kamennaya Gorka-3 project documentation is available for public comments at the Architecture and Planning department of Frunzenskiy district of Minsk, at the following address, Kalvariyskaya street, 39, room 312.

E&S related inquires to the company could be sent to:
JV Strominvest LLCAddress: 1B Olshevskogo Street, 220073 Minsk, BelarusPhone: +375-17-252-88-56
Fax: +375 17 2528876
mailto:HQ.Minsk@strominvest.com

Broad Community Support

**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

Broad Community Support

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

PS 1: Assessment and Management of Environmental and Social Risks and Impacts

PS 2: Labor and Working Conditions

PS 3: Resource Efficiency and Pollution Prevention

PS 4: Community Health, Safety and Security

Stakeholder Engagement

Stakeholder Engagement

Local Access of Project Documentation

Broad Community Support

IFC's Determination of BCS

Press-Release

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Information on E&S Complaints and Grievance Mechanisms

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