PROJECT

Projects

Environmental & Social Review Summary

Project Number

9634

Company Name

KYRGYZ-CHINESE JOINT VENTURE ALTYN-AJYDAR

Date ESRS Disclosed

Feb 5, 2010

Country

Kyrgyz Republic

Region

Central Asia and Turkiye

Last Updated Date

Jan 2, 2017

Environmental Category

B - Limited

Status

Completed

Previous Events

Approved : Jun 28, 1999
Signed : Sep 9, 1999
Invested : Feb 28, 2000

Sector

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

Industry

Agribusiness and Forestry

Department

Gbl Ind, Manufact, Agribus & Services

Project Description

3

May 24, 1999
Environmental Review Summary (ERS)

Project Name Kyrgyz Republic: SEF-Altyn-Azhydahar

Region Europe

Sector General Manufacturing

Project No. 009634


1. The project involves the modernization and expansion of Altyn-Azhydahar, a corrugated cardboard and packaging material plant near Bishkek. Included in the project are the purchase of new manufacturing equipment and transport vehicles, the refurbishment of the new acquired production site, training programs and working capital.

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 and the technical appraisal. The following potential environmental, health and safety impacts of the project were analyzed:

· air emissions;
· liquid effluents;
· solid waste disposal;
· workspace air quality; and
· employee health and occupational safety.

The sponsor has provided information to address these issues and demonstrated how the proposed project will comply with applicable local regulations and World Bank policies and guidelines.

3. The current operations are going to be expanded and move to a new site owned by the sponsor. The new site, a 30,000 sq. meters area, is located at the distance of 43 km away from Bishkek, at the outskirts of Ken-Bulun village and near an auto transportation company, an small artificial channel situated at 20 m, and an small forest not considered neither natural protected nor preserved area.

4. After the purchase of the new site, Altyn cleaned some gasoline and lubricants concrete fills left behind by the previous owner. All collected material was transported to the Ken-Bulun’s village landfill as authorized by the local authorities.

5. Altyn’s operations consists mainly of carton paper corrugating, cutting, gluing, and painting. Th sponsor uses water disperse paint which does not contain harmful volatile organic compounds and the glue used is made of corn starch and is prepared on-premises.

6. The sponsor will only uses electric power and will implement measures to ensure that there is no generation of fugitive emissions (dust) during the preparation of the raw materials (i.e., glue). There will not be SOx or NOx emissions from this operation.

7. The process and consumption water will be obtained from the local water authority system. Liquid effluents including the remaining from glue preparation, equipment rinsing waters and domestic water will be all collected into a cesspool and sent to the Chui-Tokmok’s municipal sewage system for final treatment. The volume of liquids to be generated is approximately 2 m3/month. There will be a designated area for equipment and vehicle maintenance. The effluents generated in this area will be collected separately and the grease removed with oil traps before discharging the clean waters, which will be used for irrigation. Completion of the above measures will result in all liquid effluents complying with applicable World Bank guidelines.

8. All waste paper, including small cuttings, pieces, etc., will continue to be packed and transported for recycling to Tokmok Carton Paper Plant which whom the sponsor already has an agreement. Domestic solid residues will continue to be collected and picked up by the communal services of Ken-Bulun village. The collected solids from the oil traps will be disposed in the government authorized landfill.

9. The sponsors will take measures, as needed, to ensure that the noise levels are below World Bank guideline.

10. Altyn will ensure that the environmental, health and safety measures are up to date and that the employees are properly trained. Personal protective equipment will continue to be provided to and required to be used by the employees, including uniforms and shoes. Qualified personnel will continue implementing health and safety programs, and Altyn will continue training the employees in occupational health and industrial safety issues. The sponsor will appoint an Environmental Manager to oversee and implement the company’s environmental activities.

11. Raw materials, including large paper and carton rolls, paint, corn starch, and final products will be stored in a specially equipped warehouse. The warehouse will be equipped with fire prevention and protection equipment including fire extinguishers, sand, water tab, and no electrical wires to avoid electrical short circuit. The sponsor will continue implementing strict warehouse management measures including controlled entrance and exit, strict inventory control on raw materials and final products. The staff will continue to be trained in fire prevention and control and will have periodic fire drills.

12. All new staff will be trained on safety techniques, and fire prevention measures. The staff dealing with equipment, will be also trained, directly on a working station, place, on safe working methods. All employees are required to perform comprehensive medical examination at the local clinic before starting to work. For employees’ convenience, there is a canteen, shower cabins, and changing rooms. Also, workers are transported on private transport to the company’s site, free of charge. Altyn will also plant trees and set up fruit trees plantations at the new site.

13. Altyn will annually submit to IFC a monitoring report to ensure ongoing environmental compliance during the life of the project. Altyn’s monitoring reports will be based on results obtained from the monitoring program including the following components:

· project status including key developments or deviations from the original design;
· oil and grease concentrations in the water to be sent to the irrigation fields;
· significant incidents, if any;
· annual statistics for occupational accidents and illnesses including number of employees, work hours and lost-time incidents;
· rate of work related accidents and incidents
(Rate = # of incidents/# of workers)
· interactions with the local communities; and
· industrial, safety, and environmental employee training programs.

14. Altyn will submit to IFC copy of the local environmental permit obtained as soon as is received. Based on the review of the available information regarding potential environmental impacts and proposed mitigation measures, IFC concludes that the proposed project is being designed to meet Government of the Kyrgyz Republic requirements, and World Bank policies, and environmental, health and safety guidelines.

15. IFC will monitor Altyn’s ongoing compliance with World Bank policies and guidelines during the life of the project by evaluating environmental performance 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