Environmental & Social Review Summary
Project Number
8459
Company Name
MDD Lignosper
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 : Jan 15, 1998
Signed : May 11, 1998
Invested : Jun 5, 1998
Sector
Furniture and Related Products
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-HERZEGOVINA (REPUBLIKA SRPSKA): SEF-Lignosper
Region Europe
Sector Timber, Pulp and Paper
Project No. 008459
December 3, 1997
1. This project involves the refurbishment and upgrading of several war-damaged or obsolete production lines at an existing integrated wood processing and furniture manufacturing facility located about 3 km outside the city of Novi Grad on the western border with Croatia. The plant site is about 1 km east of the river Una, and is surrounded by other substantial industrial installations. Electrical energy requirements are supplied by the locally-available power grid. The Company extracts raw water from the River and treats it in their own treatment plant for process and potable uses (the project includes funds to refurbish the water treatment plant). Process heat is generated on-site by a wood-fired steam boiler, which is also equipped with a fuel oil burner. Lignosper’s wood products meet European E1 standards for formaldehyde content. After the project is completed, Lignosper expects to increase employment from its existing workforce of 480 to a total of 700 staff.
2. This 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. IFC’s Technical and Environmental Department staff’s review of this project consisted of appraising technical and environmental information submitted by the project sponsor. The following potential environmental, safety and health impacts of the project were analyzed:
· wood supply source and management;
· air pollution and emissions;
· effluent discharge;
· solid waste management;
· chemical storage and handling, emergency response, and fire protection;
· employee health and safety, and training; and
· environmental management system and responsibilities.
The sponsor has presented plans to address these issues and to demonstrate that the proposed project will comply with applicable Republika Srpska laws and regulations and World Bank requirements. The information provided about how these potential impacts are addressed by Lignosper is summarized in the paragraphs that follow.
3. Wood raw materials, the principal being beech wood, are obtained from local forests owned and operated by the Government. The Government’s Forest Department applies sustainable yield forestry management practices in harvesting timber, and uses the “select-felling” method, as well as adequate reforestation techniques. Lignosper transports most of the cut logs from forests within a radius of 20 km from the plant, and uses approximately 4% of the available regional timber capacity.
4. The sources of air emissions at the facility include particulates, SO2, and NOx from the 20 ton per hour wood-fired steam boiler (there is also another boiler, but it is not used); small amounts of urea-formaldehyde and phenol fumes in the glue spreader and press area exhausts; and wood dust particulates from the wood sawing and sanding operations. Boiler stack emissions are effectively controlled through use of efficient combustion techniques and opacity monitoring to keep levels within World Bank guidelines. Particulates from wood processing areas are controlled through the efficient use of ventilation systems and cyclone dust collectors.
5. Lignosper currently discharges glue and press area wash waters and employee sanitary sewage untreated to the river Una. As part of the refurbishment and upgrading, Lignosper will install a wastewater treatment system with adequate capacity to treat all liquid wastes to meet World Bank effluent guidelines. Prior to the first loan disbursement, Lignosper will have completed the engineering design and specifications for this system. Within six months of receiving the disbursement, the Company will have completed construction and will be operating the new effluent treatment system in compliance with World Bank guidelines.
6. The solid wastes generated by the plant include wood waste, formaldehyde and phenol glue waste, wood ash from the boiler, and sludge from the water treatment facility. All wood waste materials, as well as the liquid glue wastes, are burned as boiler fuel. Boiler ash is collected in closed containers and used as farmland fertilizer. Water treatment sludges (primarily lime and water-base minerals) are collected and disposed in an on-site pit.
7. The principal chemicals and additives used in production include urea formaldehyde (UF) and phenol glues and finishing lacquers. UF and phenol glues are mixed and stored in the glueing and pressing area. Liquids will be stored in containers and tanks specifically designed to prevent leakage. Flammable lacquers are stored inside the lacquering area in a manner designed to prevent spills and minimize accidents. The back-up fuel oil storage tank located outside the boiler plant will be provided with secondary containment. All areas will be equipped with fire fighting equipment. Emergency response plans will be developed.
8. Lignosper will address all aspects of employee health and safety including workplace air quality and noise, and general health and safety and training. Equipment deemed noisy (such as the wood chipper) will have insulated enclosures to reduce audible noise to acceptable levels. Ear protection will also be provided, as appropriate, to affected employees. All equipment that performs cutting operations will have safety guards to protect the operators. Employees will be required to wear safety glasses. Several positions will require employees to also wear special protective accessories, such as breathing masks for workers in the glue and press area where formaldehyde and phenol are used. The production facility will be properly ventilated to disperse any formaldehyde and phenol vapors escaping from the process line, and will comply with all local safety and fire standards. Management will train local skilled labor to operate equipment in accordance with corporate safety practices (see below), including environmental quality, accident prevention, and emergency procedures. In addition, all staff will receive training in corporate policies and procedures (see below) and general safety.
9. Lignosper has recently appointed an Environmental Officer to be responsible for environmental, safety and health matters at the facility. He reports directly to the General Manager, and will be responsible for developing a program that will ensure sound management will be practiced at Lignosper’s facility going forward. He will develop an appropriate corporate environmental management system (EMS) which includes written EH&S policies, as well as the procedures for ensuring that these policies are put into effect. The EMS will have the following components:
· policies and objectives;
· an action plan to achieve those objectives (including documented procedures);
· performance monitoring against established targets;
· appropriate reporting of results; and
· management review and improvement process.
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 Lignosper and by conducting periodic supervision.
11. Based on its review of available information regarding potential environmental impacts and proposed mitigation measures, IFC concludes that Lignosper’s proposed project will meet World Bank environmental, health and safety policies and guidelines and host country requirements.
L:\WPEU\STEPHEN\ERS\LIGNO.ERS
December 4, 1997 9:54 AM
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-HERZEGOVINA (REPUBLIKA SRPSKA): SEF-Lignosper
Region Europe
Sector Timber, Pulp and Paper
Project No. 008459
December 3, 1997
1. This project involves the refurbishment and upgrading of several war-damaged or obsolete production lines at an existing integrated wood processing and furniture manufacturing facility located about 3 km outside the city of Novi Grad on the western border with Croatia. The plant site is about 1 km east of the river Una, and is surrounded by other substantial industrial installations. Electrical energy requirements are supplied by the locally-available power grid. The Company extracts raw water from the River and treats it in their own treatment plant for process and potable uses (the project includes funds to refurbish the water treatment plant). Process heat is generated on-site by a wood-fired steam boiler, which is also equipped with a fuel oil burner. Lignosper’s wood products meet European E1 standards for formaldehyde content. After the project is completed, Lignosper expects to increase employment from its existing workforce of 480 to a total of 700 staff.
2. This 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. IFC’s Technical and Environmental Department staff’s review of this project consisted of appraising technical and environmental information submitted by the project sponsor. The following potential environmental, safety and health impacts of the project were analyzed:
· wood supply source and management;
· air pollution and emissions;
· effluent discharge;
· solid waste management;
· chemical storage and handling, emergency response, and fire protection;
· employee health and safety, and training; and
· environmental management system and responsibilities.
The sponsor has presented plans to address these issues and to demonstrate that the proposed project will comply with applicable Republika Srpska laws and regulations and World Bank requirements. The information provided about how these potential impacts are addressed by Lignosper is summarized in the paragraphs that follow.
3. Wood raw materials, the principal being beech wood, are obtained from local forests owned and operated by the Government. The Government’s Forest Department applies sustainable yield forestry management practices in harvesting timber, and uses the “select-felling” method, as well as adequate reforestation techniques. Lignosper transports most of the cut logs from forests within a radius of 20 km from the plant, and uses approximately 4% of the available regional timber capacity.
4. The sources of air emissions at the facility include particulates, SO2, and NOx from the 20 ton per hour wood-fired steam boiler (there is also another boiler, but it is not used); small amounts of urea-formaldehyde and phenol fumes in the glue spreader and press area exhausts; and wood dust particulates from the wood sawing and sanding operations. Boiler stack emissions are effectively controlled through use of efficient combustion techniques and opacity monitoring to keep levels within World Bank guidelines. Particulates from wood processing areas are controlled through the efficient use of ventilation systems and cyclone dust collectors.
5. Lignosper currently discharges glue and press area wash waters and employee sanitary sewage untreated to the river Una. As part of the refurbishment and upgrading, Lignosper will install a wastewater treatment system with adequate capacity to treat all liquid wastes to meet World Bank effluent guidelines. Prior to the first loan disbursement, Lignosper will have completed the engineering design and specifications for this system. Within six months of receiving the disbursement, the Company will have completed construction and will be operating the new effluent treatment system in compliance with World Bank guidelines.
6. The solid wastes generated by the plant include wood waste, formaldehyde and phenol glue waste, wood ash from the boiler, and sludge from the water treatment facility. All wood waste materials, as well as the liquid glue wastes, are burned as boiler fuel. Boiler ash is collected in closed containers and used as farmland fertilizer. Water treatment sludges (primarily lime and water-base minerals) are collected and disposed in an on-site pit.
7. The principal chemicals and additives used in production include urea formaldehyde (UF) and phenol glues and finishing lacquers. UF and phenol glues are mixed and stored in the glueing and pressing area. Liquids will be stored in containers and tanks specifically designed to prevent leakage. Flammable lacquers are stored inside the lacquering area in a manner designed to prevent spills and minimize accidents. The back-up fuel oil storage tank located outside the boiler plant will be provided with secondary containment. All areas will be equipped with fire fighting equipment. Emergency response plans will be developed.
8. Lignosper will address all aspects of employee health and safety including workplace air quality and noise, and general health and safety and training. Equipment deemed noisy (such as the wood chipper) will have insulated enclosures to reduce audible noise to acceptable levels. Ear protection will also be provided, as appropriate, to affected employees. All equipment that performs cutting operations will have safety guards to protect the operators. Employees will be required to wear safety glasses. Several positions will require employees to also wear special protective accessories, such as breathing masks for workers in the glue and press area where formaldehyde and phenol are used. The production facility will be properly ventilated to disperse any formaldehyde and phenol vapors escaping from the process line, and will comply with all local safety and fire standards. Management will train local skilled labor to operate equipment in accordance with corporate safety practices (see below), including environmental quality, accident prevention, and emergency procedures. In addition, all staff will receive training in corporate policies and procedures (see below) and general safety.
9. Lignosper has recently appointed an Environmental Officer to be responsible for environmental, safety and health matters at the facility. He reports directly to the General Manager, and will be responsible for developing a program that will ensure sound management will be practiced at Lignosper’s facility going forward. He will develop an appropriate corporate environmental management system (EMS) which includes written EH&S policies, as well as the procedures for ensuring that these policies are put into effect. The EMS will have the following components:
· policies and objectives;
· an action plan to achieve those objectives (including documented procedures);
· performance monitoring against established targets;
· appropriate reporting of results; and
· management review and improvement process.
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 Lignosper and by conducting periodic supervision.
11. Based on its review of available information regarding potential environmental impacts and proposed mitigation measures, IFC concludes that Lignosper’s proposed project will meet World Bank environmental, health and safety policies and guidelines and host country requirements.
L:\WPEU\STEPHEN\ERS\LIGNO.ERS
December 4, 1997 9:54 AM
Environmental and Social Mitigation Measures
Broad Community Support
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