Environmental & Social Review Summary
Project Number
8083
Company Name
OAO Borsky Stekolny Zavod
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 : Aug 14, 1997
Signed : Dec 1, 1997
Invested : Dec 1, 1997
Sector
Glass and Glass Products (Including Glass and Mineral Wool)
Industry
Manufacturing
Department
Gbl Ind, Manufact, Agribus & Services
Project Description
Environmental Review Summary (ERS)
Project Name RUSSIA-AOOT BORSKY STEKOLNY ZAVOD (BORSTEKLO)
Region Europe
Sector Manufacturing
Project No. 8083
June 26, 1997
1. This project involves the acquisition and partial modernization of AOOT Borsky Stekolny Zavod (Borsteklo), one of Russia’s privatized manufacturers of flat glass for the automotive and construction markets. The sponsor and consortium leader is a major international producer of flat glass for the automotive, construction and furniture markets. Borsteklo is one of three large manufacturers of modern float glass in Russia, and has an existing manufacturing capacity of 400,000 tons per year. Located on a 73 ha site in Bor, on the banks of the Volga River, across from the major city of Nizhny Novgorod, Borsteklo is the dominant supplier to the Russian automotive industry and has a sizable share of the Russian construction industry. Borsteklo operates two float glass lines (capacity of 1,060 tons per day), and production lines for automotive laminated glass (2.5 million m2/yr), automotive tempered glass (3.5 million m2/yr). The company also manufactures consumer goods such as mirrors, double glazing and tempered glassware. Borsteklo employs some 6,000 employees.
2. IFC’s investment will include a capital increase used to finance a limited two-year expenditure plan aimed at improving the furnaces, general production control and environmental improvements. The sponsor intends to undertake a full renovation consisting of two furnace cold repairs and expanded downstream processing capacity, to be implemented over the next five years.
3. 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, in part, of appraising technical and environmental information submitted by the project sponsor. As part of their due diligence, the sponsor’s technical staff conducted a technical review of the plant facilities in March 1997, followed by an environmental audit in June 1997. A
technical appraisal and site review was completed by IFC’s Technical and Environment Department staff, and an environmental audit was conducted by a consultant to IFC. The following potential environmental, health and safety impacts of the project were analyzed:
· air emissions;
· liquid effluents;
· solid waste;
· fire prevention and emergency response;
· contaminated land from present or past operations; and
· worker exposure to high temperatures, noise, and dust.
The information provided about how these potential impacts are addressed in the development of the proposed project is summarized in the paragraphs that follow. The sponsor provided a summary of their action plan items in the June 1997 audit. A full Environmental Action Plan (EAP), satisfactory to IFC, with additional details on implementation of the proposed EAP, including detailed costs and schedules for implementation of the actions necessary to achieve the requisite performance improvements will be required prior to contract signing.
4. The existing float glass lines were built in 1970 and 1985, respectively, and are fueled by natural gas. They substantially meet the local limits for emissions of CO, NO and NO2 (there are no data available for dust and SO2). The lines currently do not have controls for process emissions. The sponsor has agreed to implement upgraded sampling of stack emissions, and to improve control equipment, and consequently emissions, during the next planned cold repairs. Following those repairs, the float lines are expected to meet World Bank guidelines for emissions of particulate matter, SO2 and NOX.
5. Water for technical and potable use is obtained from the Volga River at the rate of 450 m3/hr, with potable water being treated by filtration and chlorination. Sanitary waste water is collected in the plant sewer system and piped to a regional treatment plant. Cooling water in the float glass lines operates in a closed circuit with a cooling tower that serves both lines. Industrial waste water from the plant is currently discharged to the Volga River at four locations (three for technical water and one for grinding sludge) at a total rate of 600 m3/hr. Sludge is collected by the existing facilities; however, elevated levels of suspended matter and oils are sometimes experienced in the discharge. Borsteklo is constructing facilities to treat all of its industrial waste water, and recycle up to 600 m3/hr to the production process. When these treatment facilities are put into operation (the sponsor has agreed to ensure that the water treatment component is completed by the end of 1998, and sludge treatment in 1999), discharge of untreated industrial water to the Volga River will be eliminated.
6. The plant has a good ongoing program for administration of non-hazardous and hazardous solid waste in accordance with local requirements. No wastes are allowed to be disposed of onsite, and available historical information indicates that there have been no landfills on the site. Conventional solid waste and sludge collected by the water treatment facilities is disposed of in an offsite landfill operated by the company under local permit. Hazardous wastes are sent to a special landfill operated by the local authorities. Used refractories and used oils and lubricants are shipped back to suppliers.
7. Borsteklo employs a private 40-person fire brigade to provide fire fighting services at the plant and emergency response plans are in place. The brigade is fully equipped and certified firemen are deployed on all shifts. Company personnel are trained in fire prevention and in use of fire extinguishers.
8. Land contamination from past operations at the plant has not been investigated; however, solid wastes have been regularly disposed of offsite, and the one known site of past contamination, a plant for generating gas for the furnaces, was closed and remediated about 30 years ago. Borsteklo indicates that there have been no major incidents or accidents regarding hazardous substances. Current operations were found to have chronic spills of oils from various sources, including plant processes, out of service transformers (oil filled equipment does not contain PCBs), vehicles and tanks. The sponsor has agreed to implement, during the initial plant modernization, remediation of oil contaminated soil identified during the June 1997 audit, and to install preventative measures such as curbing, oil/water separators and spill containment.
9. The plant has long term and short term environmental protection plans, approved by the management of the plant and by the appropriate inspection bodies. All workers are provided with personal protective equipment; usage is currently low and will be upgraded by the sponsor. Borsteklo’s systems and procedures will be updated as part of plant modernization.
10. Based on its review of available information regarding potential environmental impacts and proposed mitigation measures, IFC concludes that, with the implementation of the EAP, the proposed project will be designed to meet Government of Russia requirements, and World Bank policies, and environmental, health and safety guidelines.
11. IFC will monitor Borsteklo’s progress of implementing the EAP as well as ongoing compliance with World Bank policies and guidelines during the life of the project by evaluating monitoring reports submitted annually to IFC by the sponsor and by conducting periodic site reviews during project supervision.
Environmental and Social Mitigation Measures
Broad Community Support
Related SII
