8987 - PAKENSO

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Environmental & Social Review Summary

Project Number

8987

Company Name

STORA ENSO PAKADZHING BB, OOO

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 : Jun 17, 1998
Signed : Jul 6, 1999
Invested : Nov 20, 2000

Sector

Paper Packaging Products (Including Boxes, Cartons, etc.)

Industry

Agribusiness and Forestry

Department

Gbl Ind, Manufact, Agribus & Services

Project Description

ENVIRONMENTAL REVIEW SUMMARY (ERS)

Project Name RUSSIA: Pakenso

Region Europe

Sector General Manufacturing

Project No. 008987
April 21, 1998
________________________________________________________________________

1. Pakenso Oy, a leading Finnish paper packaging company, has formed a Russian subsidiary, ZAO Pakenso, to build and operate a corrugated box production facility at balabanovo, 100 km south-west of Moscow. This facility will be able to produce 90 million sq. m of corrugated board per annum. The estimated project cost is US$40 million.

2. This is a category B project according to IFC’s environmental review procedure because the specific impacts that may result can be avoided or mitigated by adhering to generally recognized performance standards, guidelines or design criteria. The project does not involve loss of natural habitats, nor is there resettlement or other significant adverse social impacts.

3. The review of this project consisted of appraising technical and environmental information submitted by the project sponsor. An engineer from the Technical and Environment Department visited the site as part of the appraisal.

4. The following potential environmental, social and health and safety issues relating to the existing operation and the proposed project were analyzed:

· corporate policy;
· land use changes;
· adhesive and ink characteristics;
· effluent treatment and disposal;
· solid waste disposal;
· air/noise pollution;
· health and safety;
· fire safety and;
· Sustainable sources of material.

Corporate policy

5. The Pakenso Group has an environmental policy and implements an environmental management system based on ISO 14001. Pakenso Group complies with all regulations and furthermore is committed to continuous improvement throughout its activities. The Group minimizes waste through training, planning and developing appropriate production processes, using both raw material, energy and water efficiently.They incorporate environmental aspects throughout the life cycle of their products, ensuring that their suppliers have the same commttment to environment.

Land use

6. The location of the new plant is in the industrial area of Balbanovo city. The plant will be constructed on a site with an existing building. The building was a former needle plant and occupied 4800m2. Additional land adjacent to the building will also be acquired. The total land take will be 9ha. An examination will be conducted of the site to ensure that there is no past contamination. There have been no objections to the project.

Adhesive and ink characteristics

7. The adhesive used in the process is starch and contains no solvents. The inks are water based and do not contain heavy metals.

Effluent treatment and disposal

8. Process washing water and sanitary effluent is conveyed to the municipal treatment plant. The project does not discharge into sensitive water courses. Oil and water separators will also be installed in the factory.

Solid waste

9. Approximately 6000 tonnes of corrugated waste is produced per annum. This is then recycled back into the process for paper and board production. Other waste sych as office waste is placed at the municipal dump.

Air/Noise

10. There are no air emissions associated with the project. The principal source of noise is from the box corrugator. Noise reduction cabinets are installed on these machines to minimize noise. In addition personal protective equipment is provided.

Health and safety/fire safety

11. Health and safety issues relate largely to noise from the box corrugator. As stated above silencers are used. If noise exceeds the maximum permissible of 85 dbA, personal protective equipment is issued. All machines are protected according to EC standards. The factory will be equipped with a water reservior (capacity 1000m3), sprinkler system, smoke detector system, and hand extinguishers.

12. Based on its review of available information regarding potential environmental impacts and proposed mitigation measures, IFC concludes that the proposed project is being designed to meet Government of Russia requirements, and World Bank policies, and environmental, health and safety guidelines.

13. IFC will monitor 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

**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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