Environmental & Social Review Summary
Project Number
9761
Company Name
AB Drobe Wool
Date ESRS Disclosed
Feb 5, 2010
Country
Lithuania
Region
Europe
Last Updated Date
Jan 2, 2017
Environmental Category
B - Limited
Status
Completed
Previous Events
Approved : Dec 23, 1999
Signed : Jan 10, 2000
Invested : May 5, 2000
Sector
Integrated Textile Operation (Spinning, Weaving/Knitting, but no Garment )
Industry
Manufacturing
Department
Regional Industry MAS LAC & EUR
Project Description
Environmental Review Summary (ERS)
Project Name Lithuania - Drobe Wool
Region Central and Southern Europe
Sector Textile
Project No. 009761
1. Drobe Wool is a Lithuanian textile manufacturing Company, with operations in Kaunas, a weaving and finishing mill and a spinning mill in two different locations, in Vieèiûnai, a spinning mill, and in Ðilutë, a weaving mill. The project includes modernizations and upgrades to the weaving and finishing mill in Kaunas and upgrading of the spinning mill in Vieèiûnai to include dyeing operations. The two other operations will be closed down as a result of the re-structuring.
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 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 this project were analyzed:
· site locations;
· risks for contamination from past operations;
· implementation of environmental action plans;
· air emissions;
· liquid effluents treatment and discharge;
· solid waste handling;
· social impacts of the restructuring; and
· employee health and safety.
The information provided about how these potential impacts would be addressed in Drobe Wool’s proposed project is summarized in the paragraphs that follow.
3. All Drobe Wool’s sites are located in areas suitable for this type of production. An environmental audit was carried out in the summer of 1999. This audit revealed that all sites have minor potential for site contamination, related to fuel storage facilities used during a blockade period in the early 90s. The sites will be checked and if necessary, cleaned.
4. The audit also revealed that the facilities in general comply with all local regulations (air emissions, wastewater treatment/discharge, solid waste handling, and health and safety) and World Bank guidelines. There is however, room for improvement and action plans have been developed to cover these issues. Drobe is committed to implement all the actions identified and recommended by the audit.
5. Air emissions at the weaving and finishing mill in Kaunas are documented to be in full compliance with both local regulation and World Bank guidelines. The measuring data for Vieèiûnai showed compliance with local regulations but did not allow for comparison with World Bank guidelines. New measurements of boiler emissions at this facility will therefore be carried out and, if need be a corrective action plan agreed to ensure full future compliance with the World Bank guidelines.
6. The Kaunas facilities discharge wastewater to the municipal sewage treatment system. The municipality treatment facility is, however, only currently under construction, and will start pilot treatment by late 1999. It is anticipated that this facility will reach satisfactory treatment levels (World Bank guidelines) by the end of the year 2000. The Vieèiûnai wastewater treatment plant (factory owned and operated) operates well within both local and World Bank guidelines.
7. Solid waste is handled and disposed of in a responsible way. Any special waste is handled through licensed companies.
8. Approximately 30 % (or 600) of existing staff will be made redundant under the privatization contract with the State Property Fund. The redundancy process will be governed by applicable Lithuanian labor and privatization laws, and will not be conducted until financing for the project becomes available. Retrenchment of trade union members, about half of the employees, will be conducted by the unions through collective bargaining. Article 40 of the Law on Employment Contract requires that that the discharge gratuity for reduction of employees shall be an average salary of between two and six months, depending on number of years of employment with the company. In addition to the gratuity, the company will consult with the unemployment office concerning additional assistance that may be required. The company will continue to provide its standard services (plant medical doctor, medicine and canteen).
9. 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 Drobe Wool and by conducting periodic supervision.
10. Based on its review of available information regarding potential environmental impacts and proposed mitigation measures, IFC concludes that Drobe Wool’s proposed project will meet World Bank environmental, social, health and safety policies and guidelines and host country requirements.
Environmental and Social Mitigation Measures
Broad Community Support
Related SII
