Environmental & Social Review Summary
Project Number
9448
Company Name
AMBRO SA
Date ESRS Disclosed
Feb 5, 2010
Country
Romania
Region
Europe
Last Updated Date
Jan 2, 2017
Environmental Category
B - Limited
Status
Completed
Previous Events
Approved : Jun 7, 1999
Signed : Nov 5, 1999
Invested : Mar 31, 2000
Sector
Paper Packaging Products (Including Boxes, Cartons, etc.)
Industry
Agribusiness and Forestry
Department
Regional Industry MAS LAC & EUR
Project Description
Environmental Review Summary (ERS)
Project Name: ROMANIA: Ambro
Region: Central and Southern Europe
Sector: Timber, Pulp and Paper
Project No: 009448
1. This proposed US$ 71 million project will modernize an existing integrated pulp and paper mill, located in Suceava in northern Romania’s major forestry area. Ambro Suceava Mill includes an unbleached kraft pulp mill and three paper and paperboard machines. The project will include pulp mill modernization (including upgrading of the recovery boilers and installation of a bark boiler), paper machine refurbishment and environmental improvements (remediation of contamination, and improvement of wastewater treatment facilities, among others), and will result in an increase in production from 72,000 tpa in 1998 to about 247,000 tpa in 2000. Wood supply is largely from state forests in the region. 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.
2. The review of this project consisted of appraising technical and environmental information submitted by the project sponsor, and the technical appraisal and site review completed by IFC’s Technical and Environment Department staff. The following potential environmental, health and safety impacts of the project were analyzed:
· air, water and solid waste emissions and management;
· water and land contamination from prior activities;
· forest management and harvesting practices and sustainability of forests and forest communities;
· storage and handling of hazardous materials;
· fire protection and emergency response; and
· general worker health and safety.
The information provided about how these potential impacts are addressed in the development of the project is summarized in the paragraphs that follow.
3. The Ambro plant occupies a 53 ha site in an industrial area of the city of Suceava. It is bordered by the Suceava River on one side and other industrial and commercial establishments on the other sides. There are no environmentally-sensitive areas in the immediate vicinity of the plant. Site contamination from process chemicals and petroleum hydrocarbons has been identified as an issue.
4. Air emissions include emissions from the power station (5 steam boilers, fueled with heavy oil or gas), recovery boilers, black liquor evaporation and lime kilns. Ambro has reduced its air emissions in recent years and the upgrading of the pulping operations, recovery boilers and lime kilns as part of this investment will further reduce air emissions and will enable the plant to meet World Bank Group guidelines. The recovery boilers are equipped with electrostatic precipitators and the lime kilns have scrubbers for particulate removal. The bark boiler will also be equipped with an electrostatic precipitator. Currently, odor from sulfides and mercaptans is very noticeable in the plant vicinity, and it is expected that improvements to the recovery boiler will contribute substantially to improving this situation. Ambro will install monitoring equipment and will institute a comprehensive program to monitor stack emissions and ambient air, as part of its upgrading program.
5. Process wastewater and site runoff are discharged to a primary (pre-treatment) facility on the Ambro site. After settling of sludge, this water is discharged to the municipal secondary treatment plant, located outside but adjacent to the Ambro site boundary. Sanitary wastes are discharged directly to the municipal plant. Effluent from neither plant meets Romanian government standards, which are equivalent to or more stringent than World Bank Group guidelines. Ambro has committed to ensuring full treatment of its liquid wastes to meet Romanian standards and World Bank Group guidelines, and is reviewing alternative technologies to achieve this. Ambro will present, for IFC’s approval prior to disbursement, a detailed plan for upgrading of the wastewater treatment plant and/or construction of new facilities. Progress on implementation of these plans will be linked to disbursement.
6. Solid waste handling requires improvement. Currently the site has three lagoons which have been used for deposit of lime sludge, water treatment sludge, wood waste and other waste materials. These lagoons have reached their design capacity, and solid wastes are now being transferred to the municipal landfill or are being stockpiled elsewhere on site, neither of which measures are viable in the longer term. Ambro is considering redesign of the existing lagoons, and will review current solid waste production and produce a detailed plan for handling of these wastes and for remediation or rehabilitation of the lagoons prior to disbursement.
7. Heavy fuel oil for the power plant is stored in four, 2000 m3 underground concrete storage tanks. These tanks are leaking, and contamination of soil and groundwater is likely. Ambro has contracted with an international consultant to carry out a Phase 2 environmental site assessment to determine the extent and magnitude of contamination from this source, and to prepare appropriate remediation plans. The required remediation will be carried out as part of this project.
8. Ambro has a Health and Safety Department which handles health issues, labor protection and fire protection. A health unit with 2 doctors and 3 medical assistants is located within the plant. Ambro reports that it follows the Romanian government norms for labor protection, but numerous instances of non-compliance with standard safety measures were observed during the environmental appraisal of the plant. Plant management will ensure that further training programs and workplace safety measures are fully implemented.
9. Ambro has a designated and trained fire brigade, with a fire truck and related equipment. Some fire safety measures (such as extinguishers and hydrants) are implemented throughout the facility, but many are missing or inoperative. IFC will require that a fire safety review be carried out by a recognized international specialist and that an action plan to implement the recommendations of this review be prepared prior to disbursement.
10. An FAO/World Bank study concluded that Romanian forests are generally managed in an environmentally sound manner, through a centralized system of management plans based on the concept of sustainable production. Romania has one of the largest areas of forest in eastern Europe, and has a long history of forest management. Spruce and beech are the dominant species. Current annual harvesting is well below annual production of wood. The government is interested in developing a certification system for forests to meet international requirements and is working with the World Bank on a pilot project in this regard. Ambro will move toward obtaining supply from certified forests as this system is developed.
11. General housekeeping needs improvement throughout the entire site. Ambro’s management is being encouraged to develop and implement a formal Environmental Management System which will strengthen and focus management attention on environmental and health and safety issues.
12. Ambro Suceava is an old facility in which environmental and health and safety issues have clearly not been a priority. Specific areas of concern have been indicated above. The new management of this facility is committed to remedying previous contamination issues and ensuring that it meets national and international standards. IFC is working closely with management to ensure that outstanding issues are properly identified and that action plans are developed and implemented. Prior to disbursement, Ambro will prepare a comprehensive Environmental Management Plan covering the various environmental and health and safety measures which will be incorporated in this project, along with schedules which will be linked to disbursement.
13. IFC will monitor ongoing compliance with World Bank Group environmental, health and safety policies and guidelines during the lifetime of the project by evaluating reports submitted annually to IFC by the company, in a form to be specified by IFC, and by conducting periodic supervision. Conditions of disbursement in regard to environmental issues will be incorporated in the Investment Agreement.
14. Based on its site visits and review of available information regarding potential environmental impacts and proposed mitigation measures, IFC concludes that this proposed project will be designed and implemented to meet World Bank Group environmental, health and safety policies and guidelines and Romanian government requirements.
Environmental and Social Mitigation Measures
Broad Community Support
Related SII
