8431 - Vilniaus Margarino Gamykla

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Environmental & Social Review Summary

Project Number

8431

Company Name

VILNIAUS MARGARINO GAMYKLA UAB

Date ESRS Disclosed

Feb 5, 2010

Country

Lithuania

Region

Europe

Last Updated Date

Dec 31, 2016

Environmental Category

Status

Completed

Previous Events

Approved : May 14, 1996
Signed : Mar 17, 1997
Invested : Sep 2, 1999

Sector

Vegetable Fats and Oils

Industry

Agribusiness and Forestry

Department

Regional Industry MAS LAC & EUR

Project Description

ENVIRONMENTAL REVIEW SUMMARY (ERS)

Project name Lithuania-Margarine Factory “Vilnius”
Region Europe
Sector Manufacturing
Project No. 008431

1. The company will produce margarine mainly for the Lithuanian market. The margarine will be sold to consumers and professionals (bakeries, cake producers etc.). The technology and equipment used at the factory in Lithuania will be similar to the technology used at Dragsbæk Margarinefabrik A/S (DM)’s factory in Denmark. The equipment will be of a high quality and not too technically advanced.
2. The products will be consumer packages, i.e. margarine in blocks and/or cups of 0.5 or 0.4 kg. In addition the factory will produce bulk packs for the professional users (bakeries, biscuit factories etc.) packed in 5, 10 or 20 kg blocks. The production capacity is expected to be approx. 5,000 tons annually based on one shift. This makes it possible to double/triple the capacity with few investments as the market/sale increases.
3. This is a category B-project according to IFC’s environmental review procedures. Specific impacts may result which can be avoided or mitigated by adhering to generally recognised performance standards, guidelines or design criteria. The review of this project consisted of appraising the technical and environmental information submitted by the project sponsor, and a technical appraisal by an environmental expert of the Investment Fund for Central and Eastern Europe (IØ), the agent for this facility. Wastewater and noise levels associated with the project have been identified as potentially significant environmental issues. Information on how these potential issues may be addressed is summarised below.
4. The production facilities will use an existing building which previously was used for bottling of edible oils. No site contamination assessment has been conducted as the site only has been used for pressing and bottling of vegetable oil. Vegetable oil is a bio-degradable product. The building will be refurbished. Land use has been approved.
5. To reduce contents of fat in the wastewater a grease separator will be installed. Sludge from the separator will be disposed of in a public landfill in accordance with Lithuanian laws and regulations.
6. Noise in the production room will be below 75 dB(A).
7. Solid waste produced will consist of cardboard and polypropylene. All solid waste will be taken to an incinerator.
8. Refrigeration equipment will not use CFCs.
9. IØ will monitor ongoing compliance with World Bank environmental, health and safety policies and guidelines during IØ’s financial participation in the project by evaluating reports submitted annually to IØ by DM, and by conducting periodic supervision.
Based on its review of available information regarding potential environmental impacts and proposed mitigation measures, IØ concludes that DM’s proposed project will meet World Bank environmental, health and safety policies and guidelines and Lithuanian environmental laws and regulations.

A:\ERS.DOC
July 2, 1997 16:09

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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