8169 - AB Ekranas

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Environmental & Social Review Summary

Project Number

8169

Company Name

EKRANAS AB

Date ESRS Disclosed

Feb 5, 2010

Country

Lithuania

Region

Europe

Last Updated Date

Dec 31, 2016

Environmental Category

B - Limited

Status

Completed

Previous Events

Approved : Jan 26, 1999
Signed : Jan 27, 1999
Invested : May 23, 2000

Sector

Computer & Electronic Products(Computers & Peripherals, Communications Equip., Elec. Watches & Similar Elec. Products. Integrated Circuits & the application of Miniturization Technologies characterize this sector.)

Industry

Manufacturing

Department

Regional Industry MAS LAC & EUR

Project Description

ENVIRONMENTAL REVIEW SUMMARY

Project Name LITHUANIA: Ekranas

Region Europe

Sector General Manufacturing
Project No. 008169

_____________________________________________________________________

1. Ekranas (‘the company’) is a private company which manufactures color picture tubes (CPTs) for use in TV sets. The company operates from a single 50 hectare site in Panevezys, Lithuania. The proposed project involves modernization and upgrading of the manufacturing plant in order to improve quality and increase production yields (with a corresponding drop in waste arisings).

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 environmental appraisal of this project was based on:

· an environmental compliance audit undertaken by independent consultants on behalf of IFC; and
· review of information submitted by the project sponsor.

The information was collected directly during the technical appraisal visit, with subsequent follow up by an IFC environmental specialist in order to verify the information provided.

The environmental review (and audit) had a broad scope, including analysis of:
· Air emissions;
· Wastewater treatment and discharges;
· Raw material and waste handling and storage practices;
· Potential for soil and groundwater contamination;
· Noise levels;
· Employee health and safety practices and accident statistics.

Information provided on how these potential impacts are to be addressed in the Ekranas project is summarized in the paragraphs that follow. The company has formally committed to the improvement program which is referenced in several places. Apart from the pollution reduction initiatives listed below, the company has also implemented resource saving initiatives, such as energy efficiency programs and water use reduction programs.

3. Air emissions from the panel furnace currently exceed World Bank environmental guidelines. The project will bring these into compliance through a three year improvement program which includes a rebuild of the panel furnace and the installation of an electrostatic precipitator to control dust emissions. Other minor upgrades will also be undertaken in relation to the production lines.

4. The facility generates two process wastewater streams. Effluent from the plating processes receives physical-chemical pre-treatment prior to discharge to the municipal sewer, which in turn is served by the municipal waste water treatment plant. The facility holds a permit to discharge to sewer. Effluent from the sanding processes receives physical treatment before being discharged via a third party sewer line to the Nevezis River. The facility holds a permit for this discharge stream. Monitoring data for both effluent streams indicates general compliance with both permit conditions and World Bank environmental guidelines (minor exceedances on zinc and BOD levels). This has been achieved through a number of improvements undertaken during 1997-98, including the introduction of a closed loop system for rinse water.

5. Solid wastes generated on site include effluent pre-treatment sludges, scrap metals, oils and general non-hazardous wastes (eg. paper, card). These are either recycled or disposed to approved off-site landfills. An on site dumping area receives broken glass, furnace bricks and minor quantities of other wastes. Together with abandoned machinery stored around the site, Ekranas will remove or reuse as much of this material as possible and construct dedicated facilities for future storage. These waste storage areas will include catchment pits or drains for storm water run-off, therefore reducing the risk of surface water and soil contamination.

6. The facility is handling and storing a number of hazardous raw materials, including chlorinated solvents, acids and alkalis. On site electrical equipment contains oils contaminated with PCBs. Asbestos is used as insulation material within specific production equipment. The facility improvement program includes actions to find alternatives to these materials and/or to reduce their use over time (or in the case of PCBs, to replace with non-contaminated oil). Actions to improve chemical storage and handling are also ongoing.

7. Soil and groundwater investigations indicated elevated levels of hydrocarbons in the vicinity of the Fuel and Lubricants Depot, indicating localized spillage or leakage. Elevated levels of heavy metals were also identified across the soil surface at the site. The concentrations found were below internationally accepted ‘trigger’ thresholds for remediation, with the exception of barium. The facility’s improvement program includes several actions and provisions to remove underground tanks, clean up existing contamination hotspots and improve management procedures to reduce the risk of future incidents.

8. Internal noise levels at the facility frequently exceed the limit of 85 dBA specified in the World Bank health and safety guideline and Lithuanian law. In the short term, greater enforcement of the use ear defenders and other personal protective equipment (PPE) is required. In the longer term, noise abatement will be implemented through equipment upgrades or the installation of acoustic shields/curtains. Ekranas has committed to solving this issue within its improvement program.

9. The proposed project does not include any structural lay-off at the company. The company will present a retrenchment program to IFC for review, should such lay-offs later be found necessary.

10. IFC will monitor ongoing compliance with World Bank environmental, health and safety policies and guidelines during the lifetime of the project by evaluating reports submitted annually to IFC by Ekranas and by conducting periodic supervision.

11. Based on its review of available information regarding potential environmental impacts and proposed mitigation measures, IFC concludes that the proposed project will meet World Bank environmental, health and safety policies and guidelines and host country requirements.

Environmental and Social Mitigation Measures

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.

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