PROJECT

Projects

Environmental & Social Review Summary

Project Number

8193

Company Name

Sarajevska Pivara, d.d.

Date ESRS Disclosed

Feb 5, 2010

Country

Bosnia and Herzegovina

Region

Europe

Last Updated Date

Dec 31, 2016

Environmental Category

B - Limited

Status

Completed

Previous Events

Approved : Jun 30, 1997
Signed : Oct 1, 1997
Invested : Nov 13, 1997

Sector

Soft Drink

Industry

Agribusiness and Forestry

Department

Regional Industry MAS LAC & EUR

Project Description

- 3 -

International Finance Corporation
A Member of the World Bank Group
International Finance Corporation
A Member of the World Bank Group
Environmental Review Summary (ERS)

Project Name BOSNIA-HERZOGOVINA: Sarajevska Pivara

Region Eastern Europe

Sector Manufacturing

Project No. 008193



1. Sarajevska Pivara (Sarajevska) was established in 1864. Before the 1992-1995 war, Sarajevska was the fourth largest brewery in the former Yugoslavia, with an annual production capacity of 100 million litres sold in glass bottles. The war and break-up of Yugoslavia resulted in reduced market opportunities as a result of changed territorial access and enforced absence from the market. The project is a diversification program to introduce new products (carbonated soft drinks, water and syrups) and new packaging (330 ml cans and 330 ml and 1.5 l polyethylene terephthalate bottles) in addition to its existing bottling line. It involves construction of new and refurbishment/extension of existing facilities together with installation of new equipment and provision of working capital. This project will be up and running in June, 1997. Total project cost is $12.1 million, of which IFC has been asked to provide US$4.2 million

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 as well as site visits by a technical specialist from IFC’s Technical and Environment Department. The key environmental, health and safety issues considered in this project include:

· existing site conditions
· air emissions
· liquid effluents
· solid waste management
· noise
· workplace health and safety and
· relocation

3. The Sarajevska complex is located on a hill adjacent to the old part of Sarajevo and is bounded by residential buildings and a school. It is located 300 m south of the Miljacka River which flows through Sarajevo. The old complex is built on 15,000 m2 (150mx100m) and the buildings are three stories high. Most of these facilities that were partially destroyed during the war. They were refurbished in 1996. During the war, despite continuous mortar shell attacks on its facilities, Sarajevska continued its operations and was one of the few reliable sources of drinking water for residents of Sarajevo while under siege. The new building (a 2,400 m2 two story facility) has been built on immediately adjacent land that previously hosted two residential buildings and vacant land.

4. The main sources of air emissions are the two power boilers (7MWe and 10.4 Mwe) and the hops separator. Natural gas is the primary fuel, when available. Back-up fuel oil that is used has a sulfur content of 0.13 percent. With either fuel, stack emissions from the two boilers will comply with the applicable World Bank guidelines for particulate matter, nitrogen oxides and sulfur dioxide. A cyclone and gauze filters will be installed to control dust at the hops separator.

5. Liquid effluent from the project are almost entirely organic. The project will include pre-treatment of liquid effluent which will entail a separator for suspended solids, an oil separator and a neutralization pit. Liquid effluent after pre-treatment will be processed in future at the municipal wastewater treatment facility. This facility was destroyed during the 1992-1995 war. The Sarajevo Public Water Management Enterprise, in a May 14, 1997 letter to the company, stated that this municipal wastewater treatment facility should be restored and operating within two years. When operating, the municipal wastewater treatment facility will treat the brewery effluent to World Bank guidelines.

6. Solid wastes (including 5,000 kg of waste paper and cartons) are collected by the Sarajevo municipal waste collection department. Approximately 70,000 kg of broken glass in generated each year. Currently, this is disposed of at the municipal waste disposal facility but the company has plans to sell it to the Tuzla glass production factory when it starts operating. The project utilizes 50 tonnes of liquid detergents a year. Sedimented detergents from the projects separator are recycled.

7. Daytime ambient noise levels at the nearest residential areas are below 50 dBA. The brewery does not operate at night. Workplace noise sources are primarily associated with the Atlas Capco air compressor which is located in an enclosed area within the plant.

8. The Institute for Workplace Protection, the University of Sarajevo, analyzed health and safety conditions at the existing brewery in 1994. The analyses concluded that health and safety practices complied with the national and local permitted limits and the operation was provided with the requisite permits. A similar review is scheduled for September, 1997 after completion of the investment plans. The company requires staff to attend a safety training course once a year. All protective equipment is stored in designated areas which is readily accessible. This equipment is tested twice a year. Emergency exits are accessible and clearly marked.

9. To accommodate the project’s physical expansion two houses adjacent to the existing brewery had to be removed in 1996. These two houses contained eight flats (four of which were owned by the company and four of which were privately owned) occupied by eight families. They were old and severely damaged during the war. The families were offered one of the sixteen flats that the company had in various parts of Sarajevo. A total of 215,000 DM was spent by the company to refurbish the eight flats chosen by the eight families. These flats are located in the most attractive parts of Sarajevo and the company assisted in the moving of the eight families. Another 160,000 DM was paid as compensation for the four flats which were privately owned.

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 Sarajevska Pivara and by conducting periodic supervision.

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



L:\WPEU\RON\BOSNIA\SARAJEVS\ERS.DOC
May 22, 1997 3:32 PM

Environmental and Social Mitigation Measures

Broad Community Support