Environmental & Social Review Summary
Project Number
9867
Company Name
LP-Gaz, LLP
Date ESRS Disclosed
Feb 5, 2010
Country
Kazakhstan
Region
Central Asia and Turkiye
Last Updated Date
Jan 2, 2017
Environmental Category
B - Limited
Status
Completed
Previous Events
Approved : Dec 30, 1999
Signed : Jun 25, 2000
Invested : Feb 23, 2001
Sector
Natural Gas Distribution
Industry
Manufacturing
Department
Regional Industry MAS MCT
Project Description
The project involves the green-field development of a network of Liquefied Petroleum Gas (LPG) distribution centers by LP-Gaz. From these distribution centers, LP-Gaz will provide LPG in cylinders and bulk tankers to domestic consumers for use in home cooking and, to a lesser extent, heating. The project will have two phases. Phase I is underway and involves the construction of two stations (in Shymkent and Almaty). Phase II will build the second two stations (in Ust-Kamenogorsk and Astana) and is expected in year 2000/2001 depending on the progress of Phase I.
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 to IFC. The following potential environmental, health, and safety impacts of this project were analyzed:
- site selection;
- safety standards of transportation, storage and filling stations; and
- safety standard of consumers systems;
- emergency planning and response;
- general health and safety issues; and
- employee training.
The information provided about how these potential impacts would be addressed in the project is summarized in the paragraphs that follow.
The distribution centers will be constructed on greenfields. Each center will occupy a land area of approximately 50 m by 50 m and will be located at least 5 km distant from the nearest town or village. Each center will consist of an unloading bay to empty the rail tankers, 5-10 pressurized tanks to store LPG and facilities to fill cylinders.
Two of the sites, which were formerly vacant and have been already purchased, are located in industrial areas with no environmentally sensitive areas in their vicinities. These two lots were acquired through willing buyer/seller commercial transactions. The sponsor will confirm that the two additional sites to be acquired are not located near sensitive environments and that the acquisition is also being carried out as a willing buying/seller transaction.
The LPG will be transported from local refineries to the distribution centers by rail tankers, where the cylinders will be filled and road transported to the public to be used in domestic cooking.
Since the sponsor will use state of the art equipment, they will ensure that only minor amounts of gas will be released during connection and disconnection.
The distribution centers will only generate minor amounts of liquid effluent. Sanitary sewage will be disposed in septic tanks. The terminals will only produce minor amounts of domestic solid waste, which will be disposed in accordance with local requirements.
The sponsor jointly with the main equipment supplier is currently developing accident prevention, maintenance, safety and employee training programs. Copies of these programs satisfactory to IFC will be submitted to IFC prior to first disbursement. In addition, the sponsor is developing an environmental policy, which will be also submitted to IFC, as soon it is ready.
The sponsor will equip each terminal will and alarm and fire fighting equipment systems. The specific systems details (i.e., fire fighting water sources, hydrants, water sprays, fire drills, communication with local fire fighting authorities, etc.) will be provided to IFC as soon as they are ready but prior to first disbursement.
LP-GAZ will have a full-time employee responsible for company-wide coordination of plant safety, occupational health and safety initiatives, and compliance with applicable rules and regulation. Each local filling plant will have an employee responsible for handling local health and safety questions and for following the company rules.
By project completion, the sponsor’s operations will be in full compliance with the relevant World Bank guidelines and policies and with the environmental standards of the government of Kazakhstan. The sponsor will annually submit to IFC a monitoring report to ensure ongoing environmental compliance during the life of the project. Minimum information to be provided in the environmental monitoring reports is provided in Appendix A.
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 Kazakhstan requirements, and World Bank policies, and environmental, health and safety guidelines.
IFC will monitor the project’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.
- Monitoring Reports Minimum Requirements:
- 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.
In case of any deviation from the applicable World Bank Environmental and Occupational Health and Safety guidelines, the company shall inform IFC within a period of not more than five (5) working days about the nature of such deviation and the steps taken to correct such deviations.
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 to IFC. The following potential environmental, health, and safety impacts of this project were analyzed:
- site selection;
- safety standards of transportation, storage and filling stations; and
- safety standard of consumers systems;
- emergency planning and response;
- general health and safety issues; and
- employee training.
The information provided about how these potential impacts would be addressed in the project is summarized in the paragraphs that follow.
The distribution centers will be constructed on greenfields. Each center will occupy a land area of approximately 50 m by 50 m and will be located at least 5 km distant from the nearest town or village. Each center will consist of an unloading bay to empty the rail tankers, 5-10 pressurized tanks to store LPG and facilities to fill cylinders.
Two of the sites, which were formerly vacant and have been already purchased, are located in industrial areas with no environmentally sensitive areas in their vicinities. These two lots were acquired through willing buyer/seller commercial transactions. The sponsor will confirm that the two additional sites to be acquired are not located near sensitive environments and that the acquisition is also being carried out as a willing buying/seller transaction.
The LPG will be transported from local refineries to the distribution centers by rail tankers, where the cylinders will be filled and road transported to the public to be used in domestic cooking.
Since the sponsor will use state of the art equipment, they will ensure that only minor amounts of gas will be released during connection and disconnection.
The distribution centers will only generate minor amounts of liquid effluent. Sanitary sewage will be disposed in septic tanks. The terminals will only produce minor amounts of domestic solid waste, which will be disposed in accordance with local requirements.
The sponsor jointly with the main equipment supplier is currently developing accident prevention, maintenance, safety and employee training programs. Copies of these programs satisfactory to IFC will be submitted to IFC prior to first disbursement. In addition, the sponsor is developing an environmental policy, which will be also submitted to IFC, as soon it is ready.
The sponsor will equip each terminal will and alarm and fire fighting equipment systems. The specific systems details (i.e., fire fighting water sources, hydrants, water sprays, fire drills, communication with local fire fighting authorities, etc.) will be provided to IFC as soon as they are ready but prior to first disbursement.
LP-GAZ will have a full-time employee responsible for company-wide coordination of plant safety, occupational health and safety initiatives, and compliance with applicable rules and regulation. Each local filling plant will have an employee responsible for handling local health and safety questions and for following the company rules.
By project completion, the sponsor’s operations will be in full compliance with the relevant World Bank guidelines and policies and with the environmental standards of the government of Kazakhstan. The sponsor will annually submit to IFC a monitoring report to ensure ongoing environmental compliance during the life of the project. Minimum information to be provided in the environmental monitoring reports is provided in Appendix A.
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 Kazakhstan requirements, and World Bank policies, and environmental, health and safety guidelines.
IFC will monitor the project’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.
- Monitoring Reports Minimum Requirements:
- 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.
In case of any deviation from the applicable World Bank Environmental and Occupational Health and Safety guidelines, the company shall inform IFC within a period of not more than five (5) working days about the nature of such deviation and the steps taken to correct such deviations.
Environmental and Social Mitigation Measures
Broad Community Support
Related SII
