Environmental & Social Review Summary
Project Number
7199
Company Name
Alpha Cement Open Joint Stock Company
Date ESRS Disclosed
Feb 5, 2010
Country
Russian Federation
Region
Europe
Last Updated Date
Dec 31, 2016
Environmental Category
B - Limited
Status
Completed
Previous Events
Approved : Mar 11, 1996
Signed : Mar 22, 1996
Invested : Mar 27, 1996
Sector
Cement
Industry
Manufacturing
Department
Gbl Ind, Manufact, Agribus & Services
Project Description
Environmental Review Summary (ERS)
Project Name Russian Federation-Alpha Cement J.S.C.
Region Europe
Sector Cement
Project No. 007199 February 20, 1996
1. This project involves Alpha Cement J.S.C. (AC), a Russian company established in May 1994. AC, a joint venture of Alpha Capital Fund and Holderbank, has acquired equity stakes in eleven recently privatized cement companies. The eleven companies consist of 14 plants with a combined total installed nominal capacity of about 25 million tons per year, representing one quarter of the total cement capacity of the Russian cement industry. The adjusted capacity of AC’s equity stake in these plants, based on dry and wet process rotary kiln lines, is about 6 million tons per year of cement. The project does not include vertical kilns which were shut down in 1983. AC’s current plans include:
· acquiring equity in other cement companies which are strategically important and currently not in its portfolio;
· securing additional shares to gain majority control in selected companies currently in its portfolio;
· production improvements and restructuring in selected plants, including converting one plant to a clinker grinding facility;
· developing a modern cement distribution system for the Moscow market and improving the distribution infrastructure for other regions;
· divesting selected companies not strategically important;
· improving the environmental, health and safety aspects of the plants; and
· upgrading and improving the environmental conditions at its cement plants to meet Russian and World Bank requirements.
2. This is a category B project according to IFC’s environmental review procedure because specific impacts may result which can be avoided or mitigated by adhering to generally recognized performance standards, guidelines or design criteria. The review of this project consisted of appraising technical and environmental information submitted by the project sponsor, and the appraisal and site reviews completed by IFC’s consultants and IFC staff. The following potential environmental, health and safety impacts of the project were analyzed:
· air emissions and dust loading;
· liquid effluents;
· spill prevention;
· solid and liquid wastes;
· fire prevention; and
· employee protection from noise and dust.
The sponsor, Holderbank, has presented plans to address these issues and demonstrate the proposed project will comply with applicable governmental and World Bank requirements for existing cement plants. The information provided about how the potential impacts are addressed in the development of the project is summarized in the paragraphs that follow.
3. In order to assess the environmental, health and safety (EH&S) status of the principal facilities, EH&S audits were conducted at five companies (seven plants) by EWI Engineering and Consultants of Switzerland, under contract with IFC. The Terms of Reference (TOR) for the EH&S audits were established, in conjunction with the sponsor, and provided to EWI. AC personnel participated in all phases of the audits, including discussions with Public Officials responsible for EH&S matters, and significantly contributed to the successful completion of the audits in December 1995.
4. The objective of the audits was to assess the current and ongoing capability of the existing facilities for complying with governmental requirements and applicable World Bank environmental, health and safety guidelines. The audits were structured to identify needed environmental, and occupational health and safety improvements at each facility. Dust measurements were to be performed by EWI and AC personnel for selected emissions sources. Then, the results of the EH&S audits would serve as the basis for AC establishing Corrective Action Plans (CAPs) for the seven plants audited to ensure the facilities are upgraded to meet governmental and World Bank requirements. Additionally, the audit results and subsequent CAPs for existing facilities are to serve as guidance for establishing CAPs for AC’s additional subsidiary cement companies as they are added to their portfolio.
5. EWI issued a draft audit report, including the results of the dust measurements, in January 1996; areas identified as requiring improvement were:
· dust emissions from kilns and associated operations;
· dust emissions from other sources, including mills, dryers, conveyors and cement storage silos;
· occupational safety and health;
· plant housekeeping and cement spillage; and
· to a lessor extent, fire safety and wastewater treatment.
6. AC has established a CAP, to the satisfaction of IFC, to address the above issues and respond to the findings from the audits. The CAP identifies, on a plant-by-plant basis, the specific actions required to upgrade the EH&S aspects of the facilities in order to meet the applicable World Bank guidelines as well as governmental requirements. The CAP includes the estimated cost and implementation schedule for each action. The principal corrective actions planned and those involving the largest expenditures are associated with improving the control of dust emissions. Full implementation of the CAP will reduce dust emissions of all significant sources to a level which will meet the World Bank guideline for existing cement plants. In order to expedite the reduction of dust emissions, IFC and AC have agreed to designate $US 10 million of a Credit Line to the implementation of the CAP. Due to its significance, the reduction of dust emissions is further discussed in the next three paragraphs.
7. All significant air emissions sources at the seven plants audited are equipped with dust control equipment. Electrostatic filters are installed on all of the kilns and about one-half of the clinker coolers, while the remaining clinker coolers are equipped with cyclone batteries. The dust control equipment for the cement mills consist of a combination of settling chambers, cyclone batteries and/or bag filters. The design efficiencies of the dust control devices are: (i) 99+ percent for electrostatic filters; (ii) 90 - 99+ percent for bag filters; (iii) 65 - 95+ percent for cyclones; and (iv) 30 - 70 percent for settling chambers which are used for pre-cleaning and removal of relatively large particles.
8. During the course of the audits, the audit team inspected air pollution control equipment and reviewed relevant equipment specifications, the Sulfur content of fuels, operating logs and historical air emissions monitoring records. Additionally, dust emissions measurements were conducted for representative dust emissions sources - kiln, clinker cooler and cement mill. The audit team determined that the only area needing improvement was the control of dust emissions, especially for kilns and clinker coolers. The team found that many of the existing dust control devices were not performing to their original design levels for various reasons, including:
· the equipment is typically 20 - 25 years old, has not undergone technical renovation and has not been properly maintained;
· some electrostatic filters are not provided with the proper voltage;
· several cleaning systems for bags are not operational and/or the bags are damaged; and
· in selected cases, the equipment is not being properly operated.
9. In many cases the existing dust control equipment can be refurbished or upgraded, and with proper operation and maintenance, achieve the efficiency levels to meet government standards and World Bank guidelines for dust emissions. For selected critical cases, however, new control devices will be installed since the existing equipment is either of inadequate capacity or beyond repair. The CAP details the installation of new dust control equipment on a plant-by-plant basis. Additionally, AC is establishing a preventive maintenance and spare parts program, and is providing the necessary training to employees to ensure the proper operation, maintenance and monitoring of the dust emissions control equipment.
10. The CAP also includes specific actions to improve wastewater treatment, stormwater control, fire safety, and occupational health and safety. Many of these actions involve strengthening administrative procedures and employee training; improvements which will be implemented during an early stage of the project.
11. AC’s facilities generally comply with the governmental standards and World Bank guidelines for liquid effluents. The audit team concluded that all of the wastewater treatment facilities are providing adequate treatment of liquid effluents, except at one plant where the treatment system is not fully operational; this deficiency is addressed in the CAP. The CAP also includes actions to ensure the adequate control of contaminates in the stormwater runoff. The improvements include: (i) installation of additional settling basin capability at selected locations; (ii) additional enclosing of conveyors and other materials handling equipment; (iii) cleanup of several small areas of soil contaminated with lubricating oil due to seepage from equipment; and (iv) upgrading maintenance and housekeeping measures to prevent spillage of cement from reaching the stormwater drainage systems.
12. All of the seven facilities audited have established Fire Safety and Occupational Health and Safety programs which generally comply with governmental standards and World Bank guidelines. Employees are trained with regard to plant safety rules, accident prevention, hazards of the workplace, fire safety and use of Personnel Protective Equipment (PPE). The workplace is monitored for employee exposure to noise and dust. Employees are provided with appropriate PPE when noise levels are above 80 dBA and/or dust levels above 10 mg/m3. The average occupational accident and illness rate for the seven facilities is relatively low; 1.5 lost-time incidents per million hours worked. The audit team recommend several health and safety actions for inclusion in the CAP, including: (i) installation of additional fire extinguishers at selected locations; (ii) improving general plant housekeeping; (iii) strengthening inspection systems for the identification and elimination of workplace hazards; (iv) broader use of noise-reducing covers for equipment; and (v) instituting measures to achieve greater employee adherence to plant rules, especially the use of PPE.
13. Based on its review of available information regarding potential environmental impacts and proposed mitigation measures, IFC concludes that, with the implementation of the CAP, the proposed project is being designed to meet Government of Russian Federation requirements, and World Bank policies, and environmental, health and safety guidelines.
14. IFC will monitor AC’s progress of implementing the present CAP and establishing CAPs for plants added to their portfolio as well as AC’s ongoing compliance with World Bank policies and guidelines during the life of the project by evaluating AC’s environmental performance and monitoring reports, and by conducting periodic site reviews during project supervision.
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February 20, 1996 4:40 PM
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