EIA of Hot Dip Zing Galvanizing Facility - Oryahovo, BG.

Executive Summarv.The new Hot Dip Zinc GalvantzingPlant will be the only galvanrzingfacility in plant will be installed on the premisesof a NorthernBulgaria. The new galvamzing former metallurgy facility, which comprised a foundry and electro-galvamzing facility. The Plant's capacrtywill be 6,000 t p.a. assuminga one-shiftprocessing schedule. The new Hot Dip Zing GalvantzingPlant will be situatedin the NorthWesternpart of Bulgaria, and located in the town of Oryahovo - a port on the DanubeRiver, with a customsoffice and a ferry-boatcomplex (seeAppendixI.). During the period: October 2006 March 2007, a full Environmental lmpact Assessment Study (EIA Study) of the proposedHot Dip Zinc GalvanrzingProject (i.e., the Project) actlities was performed, and a final EIA Report, documenting the EIA processes and results was prepared. The EIA Report was developedin compliancewith the relevant guidelines,set by the OverseasPrivate Investment (OPIC), the IFC, and the BG Ministry of Environmentand Waters(BG Corporation MEW). This EIA Reportwould be submittedto OPIC in June 2007.

1. Project Proponents.A special entity (i.e.,a "SpecialPurpose Corporation", "SPC") will be incorporated or to implement the Project with the participation of a Bulgarian and an American partner. Bulgarian Purtner in this project is 66TRF1.-P" EOOD, a Bulgarian which has acquiredland, production,storageand administrative company, buildings, the related infrastructure and machinery and equipment located in the town of P" EOOD holds clean title over assetsacquired against a Oryahovo. "TRE considerationbelow the investment cost for setting up a similar plant which contributed the lower overall cost of the Project. American partner in this project to is "GTI Engineering Inc", - an U.S. corporationwith more than 14 years of in experience manufacturinggalvanrzing equipment. GTI has been selected supply to the Plant'smachineryand equipment. The assistance GTI will be continuous of as GTI experts were involved in the processof customrzingthe Plant's galvanizing and streamlineoperationsat the same equipmentin order to optimize perforrnance time.

2. Policy,Statutory and Institutional FrameworkThe main law of the Republic of Bulgaria governingthe rules applied in drafting an EIA and, which is applied in the Environmental Impact Assessment projects (including this Hot Dip GalvanizingFacility implementation specif,rc of Project),is the Environment Protection Act. This act is the basic legislativetool empowering the government to frame regulations fo, the protection of the environment. Passing the Environment Protection Act was followed by the establishment the Executive Environment Agency, which is governed by the of requirements laid down in its Rules of Organization.The Executive Environment Agency is charged with the task to monitor tl-reenforcementof legal provisions concerning the quality of the environment and to control the protection of the Regional Environment and Water environmentagainst pollution and disturbarrce.Executive Summarv - |

EIA of Hot Dilt Zittg Golvanizing Facility - Oryahovo, BG.

Inspectorates were established the sametime with the task to assistthe Executive at Agency in discharging dutiesin individual regionswithin Bulgaria. its The main legislative body on the government level in the field of environment protection and control is the Ministry of Environment and Waters. The relevant propertiesof the environment subject to monitoring and control, and the methods accordingto which those activitiesare conducted, regulatedby laws defining the are requirements applicableto the impact on individr-ral componentsof the environment (seeAppendix2.1), as well as by the relatedregLrlations guidelinesadopted the and by secondary legislation the Councilof Ministers. of A National Environmental Strategy is alreadyin place, and now the "2007 - 2013 Environmental OperativeProgram" is being developedand discussed, and is to be adoptedon the governmentallevel. The main strategicaim of this Program is to improve, protect and restore the natural environment and develop environmental infrastructure.The specific strategic aims are related to the preservation and improvementof the condition of waters;improvementof wastemanagement and soil protection; preserving biodiversityand protectingthe nature.

3. Project Description.o Project Location and Project Area. Oryahovo Municipality is located in the North-Westernpart of Bulg ana, on the DanubeRiver (seeAppendix /.). The new Hot Dip Zinc Galvanizingplant will be situated the industrialzoneof the town of Oryahovo, in BG, i.e., about 3 miles away from the town and about 6 miles away from the Danuberiver . The project site is bordered an empty land to the eastand the south,by a power plant to the west and by by an industrialzoneto the north,(i.e.the projectsite is not in proximity to residential quarters).The ProjectArea, its surroundings the Facility Site of the new plant are and presented respectively Exhibit 1.1 and Exhibit 1.2. in . Existing Assets,Past Operation History and Current Operations.

The assetsacquiredto date by "TRE-P" (i.e., the Bulgarian Partner),include land, production, storage and administrative buildings together with the related infrastructure. The Plant has an existing connection to the National Electricity Transmission Companyhigh-voltagegrid, a transforrner stationon the territory of the - P" EOOD owns and operates Plant and all relatedutilities. At present, "TRE also a metal processingfacility. The new hot dip zinc galvantzingfacility will own part of the former metallurgy plant's existing infrastrr,rctnre a considerable and part of the steel works manufactured the "TRE - P" EOOD metal-working facility will be by galvanized the new Plant. by . Plant's Logistics and Infrastructure.

The new Hot Dip Ztnc GalvanizingPlant in Oryahovowill use an existing assetbase comprising land, buildings, related infrastructure and will operate galvanizing equipment under a customized configuration, manufactured GTI EngineeringInc. byExecutive Summarv - 2

EIA of Hot Dip Zing Gqlvanizing Facility - Oryahovo, BG.

The infrastructure the new Galvantzing of Plant is presented Exhibit 3.2. in The plant's infrastructure consists of a Hot Dip Zinc Galvanizing Facility, a Warehouse Black Steel Worlrs (to be galvunizecl),a Warehouse for for Galvanized Steel Works (finishedproducts), Sorting anclpucking urea(s), HAZMAT Buitdingsfor temporarystorage of the already containerizedwuste (waiting for transportation and definitive disposal,Maintenance and repair workshop, Warehousefor raw materials and spareparts, Garagefor Fork-lift loaders, Offices (administration)andInter-plant roads & sites. The "In - Flows" of the new zinc galvanrzing plant will consist of steel works, that shall be submittedto galvantzing. The "Out - Flow,s"of the plant will respectively consistof the already galvanized steelworks. o Technologic, waste Processing and Auxiliary Equipment.

Full layouts of the galvanrzingequipment,the auxiliary equipment and the waste treatment systems the new Plant,areshowntn Exhibit 3.3. of The Ztnc GalvanizingTechnologic System consistsof Caustic and Caustic Rinse Tanks, Acid, Acid Rinse and Flux Tanks, u Galvanizing Furnace (Galvanizing Kettle), a Pre-Heater (Dryer), a Centrifuge Systen (for small and/or complexparts galvanizing), a Quench Tank, a Dross Clamshell (for collection of the zinc dross and a SludgeClamshell (for collection of the sludge). The WasteTreatmentSystemof the new galvanizing plant consistsof WasteFilters and Filter Pressfor Liquid Waste,a Centrul Pumping Station, ChemicalReaction Tank Mixers, Neutralization and Storage Tanksfor WasteAcids and an Air Quality & KettleAir Control Equipment- Hood EnclosureunclBaghouse. The plant's auxiliary equipment comprisesBridge Cranes with Monorail Hoists (special design)for handling the steel works insitle the galvanizing area, Fork Lift Loaders, CompressorStation & Air Tank, Universal Galvanizing Rack (for interfacility transportation of the steel works) anclu Scule & Control Equipment,' o ProcessStagesand Materials. The components the hot dip zinc galvantzing of processflow diagram are presented in Exhibit3.4. . Construction and Installation Activities.

All constructionand installationworks for the proposedproject will be carried out within the existingplant's boundaries.No new areafor the new zinc galvamzingplant will be acquired.All existing buildings and related infra structurewill be utilized. Once all specific civil drawings have been prepared,the undergroundinfrastructure will be installedand the foundationsfor the processequipmentwill be laid. GTI Eng. will prepareinstallation drawings and foundationlayout drawings,showingthe exact placementof the main technologic equipment and the location of the necessaryExecutive Summarv - 3

EIA of Hot Dilt Zing Galvanizing Facility - Oryahovo, BG.

foundationswithin Plant's building, and in the area adjacentto the building where auxiliaryand air controlequipment will be located.

4. Baseline Conditionsin the Project Area.. Physicul Geography - Climate, Soils, Geology, and Topography.

In terms of geographiclocation the project areabelongsto the Moderate-Continental sub-zoneof the European-Continental zone. The Moderate-Continental sub-zoneis subdivided in five climate regions, where the territory of the town of Oryahovo belongsto the Northern Climate Region of the DanubeHilly Plains and the Middle Climate Region of the Danube Hilly Plains. In geological terms the region of the town of Oryahovolies in the Bulgariansectionof the MoesianPlatform, southof the Danube,and more specificallyin its southwestsection,near the Forebalkan.The top (platform) complex in the upper sectionsof the crust in flat areas is represented mainly by sedimentary rock, whereas other,consolidated the (geosyncline), complex is made up of highly metamorphic folded and solid rock complexes of various compositions. The lower complex is normally tenned "crystallinefoundation". The soil-generating materials in the Project Areo are loessand alluvial deposits.The soil cover is quite varied, however, the most typical soil varieties are the Calcaric Chernozems, Haplic Chernozems, the Mollic Fluvisols.Gleyic Chernozems the and and Eutric Gleysols. . Biological Environment - Flora and Fuuna.

The town of Oryahovoand environs arepafi of the floristic areaof the DanubePlains. This area is charactertzed spacesalmost entirely free of woods used to grow by agricultural crops and vineyards. Agricultural land occupies the atea formerly occupiedby woods. Existing woods occupy areaswhich are not fit for agricultural activity. The Oryahovo areais part of the Lower-DanubeBiogeographicProvince, where the steppe and forest-steppetype of communities are dominant. This predetermines xerophilousfaunatypesin most of the area, the with a rich water fauna alongthe bank and in the Danube. . Socio-EconomicEnvironment.

The region of Oryahovohas a populationof over 16,000,of which more than 95% Orthodox Christiansof Bulgarian nationality. The official languagein the region is Bulgarian.The alphabetis Cyrillic. The leading industry sector in Oryahovo region is machine building, followed by construction and agriculture. A numberof entitiesin the region manufacture machine parts for agriculturalmachinery and equipmentand for automobileproducers.The populationin the ProjectArea are employedin more than major part of the residential 260 industrial and trade organizations companies, & established various business in sectors. All enterprises from Oryahovo region (i.e. industrial and trade companies, municipal and state administration, banks, insurancecompanies,etc.,), respect the termsof the Equal EmploymentOpportunityPolicy (EEO Policy).

Executive Summarv - 4

EIA of Hot Dip Zing Galvunizing Facility - Oryahovo, BG.

.

Environment Quality in the Project Area.

A). Ambientair conditions. Oryahovo Municipality is an administrativeunit within the territory of the Vratsa District. The quality of ambient air within the district is controlled through the readings taken from severalstationarymonitoring points /seven/,part of the National Automated Environmental Monitoring System, using also the Mobile Automated Station of the District Environment and Water Inspectorate the town of Pleven. of The following propertiesare monitored:dust, heavy-metalaerosols, sulphur dioxide, nitrogendioxide, carbonmonoxide,hydrogensulphide,ammonia,nitrogen oxide and ozone. B) WaterSources. The main rivers, that run through the territory of Oryahovo Municipality are the Danube River (running at aboutsevenmiles to the norlh of the ProjectArea) and the Studena,Yantra, Osam, andIskar rivers (running at about 50 to 80 miles away from the ProjectArea). TheDanube river is the largestwaterbody in the ProjectArea. C). Soil conditionsincluding contaminationfrorn previous or current activities. A field and analytical study was performed by experts with the Ministry of Environmentand Waters, the Vratsa RegionalTesting Laboratory,and the Institute "N.Poushkarov" Sofia, in order to establish of Soil Sciences any possibleexisting contamination soils in the vicinity of the ProjectArea. The core samplingwas of performed in accordance with the methods adopted within the relevant soilmonitoring system.The collected sampleswere dried and preparedfor analysisof heavy-metal contentas per the relevantISO standards.The statistical resultsobtained have been analyzedand evaluated test the cornpliance to with the adoptedstandards on heavy-metal contentin soils valid in someEU rnember-states, particularthe UK, in the Germany, Netherlands, the EU in general. and The results,obtainedare as follows: - permittedlimits, (as appearin the regulatorydocuments referredto), evrdence the absence toxic concentrations heavymetalsin the soils collectedfrom the areaof of of the Hot-Dip GalvantzingFacility of the town of Oryahovo,Bulgaria. - it was found that the concentration the elementsunder review LSseveral times of lower than the permittedlevelsaccordingto the relevantregulations.

5. Waste Treatment and Disposal Measures Technologiesand Equipment for Waste Processing. Logisticsof the Waste.The technologic equipment delivered by GTI comprises also a state of the art Environmentul Protection Equipment, r.e. an oir control componentequipment,a wasteliquids treatmentequipment and a fluxfiltrution & transferpump.

Executive Summarv - 5

EIA of Hot Dip Zitrg Gulvunizing Facility - Oryahovo, BG.

mitigation plan foresees, that a waste disposal exposure The Plant's environmental will be usedto properlyhandleliquid waste. company o Treatment of the Liquid Vl/aste.

The primary liquid waste is a spent pickling acid. The Hydrochloric acid (used for pickling steel prior to galvanrzitrg), becomes inactive as the iron concentration approaches12% by weight and must be replaced in order to maintain plant throughput. The chemicalreactionof pickling, producesferrouschloride in solution, disposalbecomes which will inhibit the pickling reaction.As the iron level increases, necessary. using relatively simple equipmentand The spentacid will be treatedby neutralization readily availableneutralizingchemicals. Thesperttttciclwill be neutralizedwith lime an chips. After neutralization, easilyhandlediron oxide sludgeis producedwhich can be landfilled without ltazard. The resultingliquid is free of heavy metals and can be to reusedin the plant or discharged the sewer,or ground water dependingon local is system, capable treatthe wasteliquids to regulations.The wasteliquids treatment proper chemistryin the processtanks. A from plant's pickle area and to maintain a Filter Press is usedto remove liquid from the sludge,and the presscake is semi-dry (about30% solids& no free liquid). The capacityof the systemis basedon a batch to processing spentacid tanks.The systemis also designed purify the flux tank by of a scheduled basis. batchprocessing_on . Air Quality and Kettle Air Control Equipment.

from the surfaceof the molten zinc as the emission(i.e., smoke)escapes A particulate of is by is steelwork to be galvantzed dipped. This emission caused the volatilization the flux and is primarily ammoniumchloride,althoughzinc oxide is also present(See in EPA AP-40). Pollution control agencies generalhave ruled that, thesefumesmust be collectedusing the best availabletechnology. This is done by using a tightly refer to this bath as the enclosedfu*, hood aroundthe moltenzinc bath ( galvanizers This filter is equipped "kettle" ) and a specifictype of air filter known as a bughouse. with a powerful suction fan and cloth bags,through which the air is filtered, and it may be thought of as a very large vacuum cleaner.The fume hood also makes a significantcontributionto personnelsafetyby containingthe splatterof hot zinc, that made of a fume hood and resultswhen work is dipped. The combination, sometimes the ernission.GTI Eng. quotes design will 99 a baghouse capture % of the particulate kettle below) for air pollution control of the galvanizing of the equipment(described in the new plant. The system consistsof a hood enclosureand baghouse,with will be suppliedby GTI, and fabrication& ductwork of PVC. System components underGTI supervision. will be by plant's personnel, installation o Quantities of the GeneratedlYaste- Liquids, Sludge and Solids.

of facilitiesare not large generators waste. Galvanizing pounds (i.e., 1,000,000 approximately For example,the proposedplant will process about 500 tons) per month of galvantzedsteel works during the 5-th year of the to Project. This equates a use of 70,000poundsof zinc per month, and the removalofExecutive Summarv - 6

EIA of Hot Dilt Zitrg Gulvanizing Facility * Oryahovo, BG.

approximately 5,000 poundsof rust (ferric oxide) from the steelby the pickling acid (AGA & GTI data). If, the iron saturation |2o/o weight, then the average is by waste disposal is approximately I I0 I20 gullons per dqt (waste liquids) and approximately 200 - 250 pounds of sludge(dry busis). So, the maximal wasteload (during the 5-th yearof the project)will be 2 800gallons (i.e., sbout 10,500 liters) per month (22 daysmonth) of liquid spent & neutralized hydrochloric ucid, nlus 2 cubic yards per month of iron oxide sludge and solids. Respectively, during the 1-st year of the Project,the proposedplant will process approximately 660,000pounds(i.e., about 300 tons) per month of galvamzed, steel works. The wasteload per month will be 1,400gollons of wasteliquid, fo; I cubic yard of iron oxide sludge and solids. o Logistics of the lltaste - Storage, Transportation and Disposal Options. A) On-site Logistics - Material Hanclling ond Temporary Storage of the Generated Waste.HAZMAT Containers and HAZMAT Buildings. The generated wasteshall be packedin "Hazmat Containers", speciallydesigned for storageand transportationof solid & liquid waste (LIN approved) barrels & hazpack boxes. A speciallydesigned" Warehouse for Stock of SpareHazmat Containers" will be designedand built in the main facility building. The storage capacity of this (i.e., the number of the spareHazntatContainers Warehouse put "On Stock"), will provide possibilities for permanent supply of the wastetreatmentsystem(s) with all necessary quantities& types of spareHazmatContainers, during a 6-month period of Plant'soperation. A special purpose HAZMAT Buildings, tlesignetlfor Temporary Storage of the already containerized waste, will be installedand includedin the Plant's logistics chain. Two HAZMAT Buildings will be situatednear the main building of the facility and close to the waste processingarea. The calculated capacity of the HAZMAT buildings provides the required options for temporary storageof the already containerized waste (waiting for transportationand definitive disposal), duringa two-monthperiodof Plant'soperation. The entire floor spaceof the Waste Liquids Processing Area, will be concretelined and will have an additional cover' made of Spill Containment Modular Platfurms & Ultra Spill Deck(s). The modular spill containment platforms and spill decks shall providefull protection of the Waste Processingarea,in case,if some kind of accidental hazardous spillage could eventually occur during the waste treatment and waste handling procedures.Spill containment platforms will also provide options for hazardous waste collection from the waste processingarea (in caseof someaccidental spillage). B). Transportationof the Waste. All types of the Hazmat Containers,selectedfor storageand transportationof the hazardous waste(liquids & solids), are in full cornpliance with the ADR ConventionExecutive Summorv - 7

EIA of Hot Dip Zing Galvsnizing Facility - Oryahovo, BG.

requirementsi.e., European Agreement,concerning the International Carriage of Dangerous Goods by Road, VolumeI, ADR -2007, Chapter 3.2, VolumeII, ADR 2007,Chapter 4.1.4.1. The selectedtypes of Hazmat Containers will be placed on a flat and/or metal (or metal cage) pallets and will be manipulatedby a specializedmaterial-handling equipment- i.e., by fork-lift loadersat the factory site, by crane-manipulators the of transportation vehicles (if necessary) and by fork-lift loaders at the landfill. The transportation schedule of the alreadycontainertzed waste from the factory site (i.e., from the HAZMAT buildings) to a certified landfill, designatedfor a definitive storage the waste, will be madeon a monthlybasis. of C). Definitive Storageof the [il'aste on o Certified Landfill. The already containerizedwaste, generated during the operation of the new Ztnc Galvantzing Plant, shall be disposed(for a definitive storage)on a landfill, specially designedfor storage of Industrial & Municipul Hazardous Waste. The landfill is locatednear the town of Sevlievo, r.e.,at about 70 miles away from the project area. The landfill was completedand openedfor operationabout an year ago (in October2006). The landfill was designed a Germancompanyand built by by a BG-Gerrnan consortium.The total capacityof the landfill is for about 1,300,000 cubic yards of waste, of which 325,000 cubic yards are designatedfor industrial hazardous waste(distributed 47 spectally in designed,concrete-lined cells).

6. Project Impacts and Mitigation Activities.An extremely important stage in this new Project will be the developmentof a detailed study of all significant potential environmental and social impacts, that could be generatedduring the proposedproject activities. Such a study should comprisea definition of all major issues, relatedto eachpotential project impact, an evaluation of the existingconditions,apredictionof thesignificanceof all generated project impacts and a determinationand a developmentof appropriatemitigation meosures,that should be applied to reduce the possible adverse impacts. An appropriate monitoring requirements, should also be createdand included in the proposed study. o Environmental Impacts and Mitigatiort Measures, Associated with Facitity Operation. A) Potential Impacts of the GenerateclWuste on the Environment. Mitigation Activities. WasteMinimization Measures. The liquid and solid industrial waste,generated during the operationof the new hot dip zinc galvanizingfacility (and considered a hazardous as one), could potentially affect the environment.The metal working facility (owned and operatedby "TRE P" and situated in the project area) representsa source, that generatesa nonhazardousindustrial waste

Executive Summarv - 8

EIA of Hot Dilt Zing Galvanizing Facility _ Oryahovo, BG.

When determiningthe significance of the potentiul impacts on the environment, an extremelyimportant "weight factor" shouldbe considered i.e., that in fact, the quantitiesof the liquid and solid waste, generuteclcluring the operation of the new hot dip zinc galvanizing facility shalt be vent srnoll. During ihe First and,the Second year of the Project,the generated wasteload, will not exceed50 - 60 gallons of treatedwaste liquids & sludgeper doy, which equatesapproximatelyto just 1 (one) barrel, with capacityof 55 gallons, per clcq,. Respectively, maximal waste the load, generated per day during the Fifth ))e(tr of the Project, will be about I I0 gallons of treatedwasteliquid, which equates approximately 2 (nuo) barrels,with to capacrtyof 55 gallons per day, plus about 0 I cubic yard of solids and sludge. These small quantities of waste shall be processed by an extremely effective technologies,applied for complete neutralizcttiort the wasteliquids. of As a result of all above-mentioned activities a fully environmentalprotection , measures:, which excludeany possibility for occurrence hazardous of potentialand/or unmitigated dischargeon the environment have been developed and would be carriedout' The first stepof the proposed Mitigution measureswas implemented in the tank's design The pickling process tanks and the wastetreatmentprocesstanks will be containedby -fir" levels of security, so thut leakage to the environment will be practically impossible. These -fir, levelsof security respectivelyare the thermoplastic primary tank liner, secondary tank containment,the thirmoplastic tank pit liner, the concrete tank pit itself, the thermoplasticunder-liner between the concrete the pit & the soil. ln caseof somehighly improbable situation, when of someaccidentalspillage of spent andlor fresh acids occurs, (for example, there could be someleakage from the tanks for fresh acid and/orthe neutralization tanks), then,the atea, that would be impacted by this leakage should have a total surface of about 22 m2. The appliedmitigationmeasllresprovide, that, all tank's pits, (which are under the bottom of all tanks and situated below the ground level), will be concrete-lined, with 30 cm thicknessof the concrete.In fact, it will be practicallyimpossible for some accidentally spilled acid (a treatedand/or a fresh one) to pass through 30 cm (i.e. about 1 foot) of concrete after that - go through , the thermoplastic under-liner(placedunderthe concrete pit), and finally - penetrate into the soil. The pickle and the waste treatment arca witt be monitored by a system of test points in the ateabetweenthe concretepit and the thermoplastic under-liner. These testpointswill be sampled daily to ensure that no liquid hasescaped. Records for all types of waste, generated during the facility operation will be maintained. Quantitiesof all waste(liquids,sludgeand solids),that are subjectto onsite temporary storage and/or definitive disposal, will be logged on a specially createdl4/aste Tracking Register. B) Waste Management and Mitigation Measures, associated with the On-site Handling, On-Site Storageand Disposal of the Wuste. All kinds & quantitiesof hazardous waste,generated during the operationof the new hot dip zinc galvanizingplant must be packecl in appropriate HAZMAT containers, speciallydesignedfor transportation and storageof hazardous materials. SpeciallyExecutive Summary - 9

EIA of Hot Dilt Zirtg Galvunizing Facility - Oryahovo, BG.

designed HAZMAT Building'smust be usedfor a temporarystorageof the hazardous waste "on-site". An appropriate environmentalprotection actions, which will provide full protection of the environment during the on-site handling and the onsite temporarystorageof the generated waste,as rvell as during transportation the of already containertzed waste, havebeendeveloped would be carriedout and Separation collectionof all recyclable & materialsshallbe performed duringthe onsite handlingof the waste. The main recyclablematerialin the new zinc galvanizing facility will be the so-called "zinc dross". Specifictypes of containersfor storage of the zinc drossand a specialmaterialhandling eqLripment(a drossclamshelland a monorail system), shall be used for the purpose. All other kinds of recyclable materials, i.e., plastic, paper, glass, andmetul scrap, will be separated,collected and stored rn separatebins. All recyclablewasteshall be sold to waste contractors. The zinc drossshallbe sold to a smelter company. On-siteaudits for all kinds of wastemanagement activitieswill be carriedout on a regularbasis. Audits of the selected waste disposalcontractors, well as of the as selected wastedisposal facilitieswill be undertaken a regularbasis.The purpose on of theseauditswill be to check that, all procedures and measures relatedto the waste transportation and the waste disposalactivities, included in the already signed Agreements,are being respected . o Potential Human Impacts. Mitigation Measures. The new Hot Dip Zinc GalvanizingFacility Project is a relatively small one. Therefore,the number of persons,that shall be employed during constructionand rehabilitation works, as well as the numberof the plant's pennanent personnel,will also be a relatively small one. The estimated number of personsto be employed duringthe construction stage of this project (i.e.,for construction, rehabilitation and installation works) will be about 20 people. The estimated numberof the plant's perrnanent personnel, to be employedduring the first year of the Plant's operation (i.e., management, professional/technical unskilled labor) will be about 30 and people, and respectivelyby the fifth year of operation - about 50 people. The Positive potential human impacts of the new project will be the creation of opportunities for new employment and ne\N services, related to the plant's operation activities. is expected,that there should be no any kind of significant It Negative potential human impactsfrom this project on the Oryahovo region, (for examplesome kind of resettlementandloreconomicdisplacement).The new plant will be situatedinside the boundariesof the already existing assets, and the number of the personsemployedwill be relatively small. Therefore,there shouldbe no any real negativehuman impactson the residentialand occupational population in the project area. During the constructionstage of this project, the SPC (i.e., the Special Purpose Corporation)can provide jobs for the people from the villages, situated near the Project atea. These people can be hired as unskilled laborers. Once the construction, rehabilitation and installation works are completed, some of the unskilled laborerswill receive supplementary tntining and can be employedagain (this time in the galvantzing operation)on a perntunentbasis. All theseactivitiescanExecutive Summary - l0

EIA of Hot Dip Zing Gslvanizing Facility - Oryahovo, BG.

be considered Mitigation Measures, developed as during the implementation of this new Project. o Environmentul Impacts Associuted with Construction and Installation Activities. Mitigation Measures. The main potential impacts, that could be generatedduring the construction, rehabilitationand installationworks are the Constructionand Installation Noise,the potentialDust Emissions, and the Equipmentond Vehicle ExhaustEmissions. A). Constructionand Installation Noise. All potential issues,related to the noise, generated during the construction & rehabilitation stageof this project, are mainly the possible disturbances,that could be causedto the population, residing near the project area, (but outside the boundaries the new plant). These possible disturbances of could be provoked by the operation of all types of light and heavyconstruction equipment, that shouldbe used in the construction, rehabilitation and installation works, performed on the project site. The existing sources of noise in the project areaare mainly the industrial units of the metal-working facility, (operated by "TRE-P" and situated also in the project area), the inter-planttrffic, ar-rd existingroad trffic, (outside the of the facility boundaries). Sincethe new plant and the existingmetal-working facility are situatedin the industrial zoneof the town of Oryahovo, and not in proximity to quarters, theseexistingsources noise are not expected to generate residential of some significant impacts to any nearby industrial facility andlor to residential quarters. The managementteam of the Project will develop and apply an appropriate mitigation activities, that will result in minimizutionof the noise levels beyond the plant's boundaries and which include,a noisesurveyof all constructionequipment, a reduction of the equipment noise (at source)antl o recluction the trffic noise. of No irreversiblenoise impacts are expectedfrom the proposedconstructionactivities at the projectsite. Sincethe sizeof the proposed construction habilitationworks is & relativelysmall it is not expected that,the requirednoiselevelswould be exceeded. B). PotentialDust Emissions Potentialdust emission,that could be emitteddr-rring construction& rehabilitation the activities,can eventuallyresult in somedeterioration the ambientair quality and of could be a nuisanceto any person exposedto it. The potential sourcesof dust emissions during the construction phaseof the projectincludethe land excavation (for equipment'sfoundations), exposedsurfaces the and/orstorage piles, the concreteand the masonrybatching and mixing, the truck dumping and the vehicle movement,the combustionof liquid fuel in constructionandlor material handling equipment and transportation vehicles. There areno any existingsourcesof dust emissions the project site. The existing at factory site has many green areas,fountains and a decorativepool, designatedforExecutive Summarv - ll

EIA of Hot Dip Zittg Galvanizing Facility - Oryohovo, BG.

recreation the plant's personnel.A11 inter-plantroadsas well as the externalroads, of are concreteroads, so it is not expected,that, the construction related traffic can causesignificantamount of dust emissions, that cor-rld affect the persons,who shall be employed during the construction stageof this project. Sincethe project activitieswill not involve a significantamount of civil and groundworks,it is not expected that they will cause significant dust emissions.Therewill be no any kind of complex excavationworks, since no new factory buildings shall be built. The constructionactivitieswill be mostly a rehabilitationof the existingplant buildings and warehouses. There will be no heavy cranesand heavy excavators at the constructionsite. The digging of all foundations,(neededfor the processtanks andthe furnace), will be performed only in the interiorof the main plant's building, and under a strict control of all potential dust emissions. The material handling equipment, that shallbe usedduringthe construction rehabilitation and activities will be fork-lift loaders and bucket loaders,powered by gas engines (i.e., their combustionwill be a natural gas), so there will be no significant dust emission generated' An appropriate mitigation measures, reslllting in considerable reduction of all potential dust emissions, will be developed appliedat the construction and site. These measures include a reduction of all potential dust emissions by wet suppression,a reduction of the dust emissions from the aggregate stock piles, specific options for transportation of att materiuls, that are susceptibte to dust during batching and mixing of formation, and reductionof potential dust emissions the aggregatematerials. Since the applied mitigation measureswill provide a considerable reduction of the dust emissions, is expected, it that the air quality shallremainalwayswithin the acceptable limits. The potential effectsof an eventual dustnuisanceshall be only temporary,and with no residualimpacts. C). Construction Equipment and Vehicle ExhuustEmissions. The combustion processes in all kinds of construction& material handling equipment,transportvehicles and camp generators (if any), in general result in exhaust gases, that could potentially affect the ambient air quality at the construction site. However, since there will be no any complex constructionand excavation works at the construction site, there will be no heavy cranesand heavv excavators, that could emit significant exhaust emissions. An appropriate mitigation activities, resulting in preventionof all adverseimpacts of potential exhaust emissionson the ambient air quality will be developedand applied.A proper implementation of all mitigation measuresdeveloped, should not allow the generation of any kind of long-termresidualimpactson the ambient air quality. o Potential Impacts on the Biological Resources - Vegetation and lltildJire Loss, Since the proposedproject activities do not require any kind of widening and/or new development the existingaccess of roads (i.e.,the existinginfra-structure will be fully utilized), therewill be no lossof the existingvegetation,and therewill be no any potential impact on the vegetationas well. The project site is not locatedon the

Executive Summarv - 12

EIA of Hot Dip Zing Galvanizing Facility - Oryahovo, BG.

naturalhabitat of any faunal speciesand so the project activitieswould not result in any impactson the wildlife resources the area. of

.

Potential Impacts on the WaterResources.

The amount of water, required for the operationof the new facility will be provided by the plumbing systemof Oriahovo region. An additional advantage of the new project will also be the applicationof a wuter recyclingsystem (currently under operationin the metal-working facility), during some specific technologic processes. The supplied water quantities would not result in any kind of water shortage. Therefore,no mitigation measures are required, since no any potential impactson the water resources will occur. . StakeholdersConsultations.

It is an advantage of this project, that specificconsultations, relatedto some potentialenvironmental issues,have been developedat a very early stage in the projectcycle. Thesespecificconsultations (referredas "stakeholdersconsultstions'),, havebeen organrzed and have been carried out r,vitha participationof the Project team and the potential stakeholdersof this Project. The stakeholders,represent people, groups, andlor institutions, that might be affected by, or can significantly influence, or are important to the achievement a stated purpose of a proposed of projectaction. Themain obiectiveof the stakeholders consultattons,was to spreadwidely a relevant informationon the new project and its expected environmental impacts,among the goups of people concerned (i.e., the stakeholtlers), well as to provide an as appropriatefeedback information,collectedfrom communitiesand other stakeholders, concerned with the project activities. Such feedbackinformation could be used for eventualmodification and improvementof the project's design, its planning and its implementation, (especially from an environmental socialperspective). second and A important objectiveof the stakeholders consultations, was to determinethe range of all potential positive and negative impacts, that could be generatedduring the proposed project activitiesand to recommend appropriate an mitigation measures. The stakeholdersconsultations consisted of meetings, held with relevant organrzations government and departments, which are concerned with the new project (andthereforeconsidered secondary as stakeholders). The purposeof thesemeetings was to inform the stakeholdersabout the project components,to analyze the generation some eventual project impactson the stakeholders of activities,and to record their concerns(whether real or perceived). In general,there was no any specific concern, that was expressedby the stakeholders during the consultation process. However, most of the stakeholders expressed generalconcernabout some a possibleimpact on the DanubeRiver, especially, regardingsome potential discharge of any untreatedwaste liquids (effluents) into the river. The new hot dip zinc galvanrzing plant will be a zero effluentfacility. The plant will be situatedat about7 to 8 miles away from the DanubeRiver, and on the far side of the industrial zone(see Exhibit LI. and Exhibit L2.), where a clirect efrluent in the Danube River is practically impossible. Moreover, all waste liquids of the plant will be first treatedExecutive Summarv - 13

EIA of Hot Dip Zing Gulvsnizing Facility - Oryahovo, BG.

(by the facility's wasteprocessing system)and then - safely containe11zed sealed and in a speciallydesignedcontainers,that shall be storedon a certified landfill, situated 60 miles away from the Danuberiver. All this considerations resultedin the fact. that this particularconcernis not relevant to the Pro.ject.

7. Conclusions.This EIA Study was calried out to assess environmental the and socio-economical conditions, well as the potentialimpactsof the proposed as Hot Dip Zrnc Galvanizing Project- Oryahovo, Bulgaria. A final EIA Report, documenting EIA processes the and results was prepared.The EIA Report was developedin compliancewith the relevantguidelines,set by the Overseas PrivateInvestmentCorporation(OPIC), the IFC, and the BG Ministry of Environmentand waters (BG MEw). An importantamount of baselineenvironmental and socio-economical information was collected from a variety of information soLlrces, including reports on previous studiesand published literature. A considerable and a very important preliminary information,(relatedto the existing soil conditionsin the project arca), was collected also from a field survey, which was speciallydeveloped the purposeof this EIA for study. The collectedinformation was used for creationof specific profiles on the natural,socio-economic and cultural environments, that could eventuallvbe affected by the projectactivities. As new zrnc galvanizingfacility will be locatedin the industrial zoneof Oryahovo, where the residential communities are at least 3 miles away, there should be no significantenvironmentalandlorsocial impactsduring the constructionphaseof this project. The only environmentalconcern,expressed the stakeholders by consulted, was related to some potential dischargeof any untreatedwaste liquids (effluents) into the Danuberiver. Since the new hot dip zinc galvanizing plant will be a zero effluent facility and will be situatedat about 7 to 8 miles away from the Danube River, a directeffluentin the river is practicallyimpossible.All wasteliquidswill be first treated,after that - safely containerized (in HAZMAT containers), and finally disposedat a certified landfill. All this considerations resultedin the fact. that this particularconcernis not relevantto the Project. It is therefore concluded, that, if all project activities, including the strict implementation of all mitigation measures, will be developed as described in this EIA Report, then, the anticipated project impucts on the natural and the socioeconomical environment (in the project area), will be well within the acceptable limits. The proposed project will also comply with all statutory environmental requirements and norms, presented in Chapter 2 of this EIA report.

Executive Summarv - 14

Hot Dip Zinc Galvanizing Facility Oryahovo Bulgaria

PLANT INFRA-STRUCTUREHAZMAT Buildings for Temporary Storage of Hazardous Waste Main Control Room

B1

B2 Hot Dip Zinc Galvanizing Facility GalvanizedBlack Steel Works To be Galvanized

Galvanizing Process

Steel Works

Gas Tank

Warehouse for Black Steel Works To be Galvanized Offices Offices

Preparation of the Galvanizing Racks, supporting the Black Steel Works

Raw Materials & Spare Parts Garage for Forklifts Maintenance & Repair Facility Galvanized Steel Works (OUT Flow) Black Steel Works (IN Flow)

Galvanized Steel Works

Sorting & Packing Area

Warehouse for Galvanized Steel Works (Finished Products)

Hot Dip Zinc Galvanizing Facility Oryahovo Bulgaria EQUIPMENT LAYOUT Variant 2

Air Compressor 30 CFM (1.1 m3/min); 80 PSI (6 atm) HAZMAT Building 1 HAZMAT Building 2 Power Unit for Hot Sticks 480 / 3 / 50 ; 20 HP (15 kW) Concrete Construction

Natural Gas for Galvanizing Furnace Natural Gas for Hot Sticks 4000 SCFH (145 m3/h); 10 PSIG (0.68 atm) 4000 SCFH (145 m3/h); 10 PSIG (0.68 atm) Combustion Blower 480 / 3 / 50 ; 5 HP (3.7 kW) Hot Gases For Preheater Baghouse Blower Baghouse

Main Electrical Panel Kettle Control 220 / 1 / 50 ; 20 Amp. Baghouse Control 480 / 3 / 50 ; 30 H.P. (23 kW) Compressor & Air Tank Main Control Room Cooling Tower

Temporary storage of the Hazardous Waste (waiting for transportation & definitive storage)

Bridge Crane Rails

12,100

Caustic Tank 180 F (82oC) Scale & Control Fork Lift Caustic Rinse Tank 120 F (50oC) Caustic Rinse Tank 120 F (50oC)

Stripping Acid Tank 180 F (82oC) Acid Pickling Tank (HyChl.) Ambient Temp. 1 Acid Pickling Tank (HyChl.) Ambient Temp. 2

Flux Tank 150 F (65oC) Acid Rinse Tank Ambient Temp. Kettle Cover Bridge Crane -1 Bridge Crane -2 Preheater 400 F (205o C) Galvanizing Kettle 840 F (450oC) Quench Tank Centrifuge Galvanized Steel Works

Black Steel Works To Be Galvanized

1

2

Rails for Universal Rack Carrier Conveyor

Bridge Crane Rails

Universal Galvanizing Rack

Platform Filter Press Pumping Station

Neutralization (mixing) Tank Storage Tank for Waste Acids

Stock of Empty (Spare) Containers for HAZMAT

Raw Materials & Chemicals

Dressing Room For Ladies

WC & Bath Ladies

WC & Bath Men

Dressing Room For Men

Work Shop

1

2

3

4

5

6

7

8

9

106,000

11

Waste Liquids Processing Area 60,000

: 1. , () (.., ) , , ( ) , . 2. , (. ) ( ) (.., ) (). 8500 mm x 1200 mm x 1200 mm. . , (. .... ). 4 ( ), PVC 400 - 600 mm ( ) - (.., . 3. , (.., ) ( , ), 1, 2, 3, 4 5. 4. , , ( ). 5. ., , , , , () . . -, , , .., 0, ( ), . ( ), ( ).

EIA of Hot Dip Zing Gctlvsnizing Facility - Oryahovo, BG.

ContentsChapter1. Introductionl.l. Project Proponents 1.2. ProjectLocation and Project Area

1-11-1 1-t

1.3.Introductionin the EIA1.4.Organization of the EIA Report.

r -21-6

chapter 2. Policy,Statutory and Institutional Framework..2 . 1 .S t a t u t o r y e q u i r e m e n to f B u l g a r i a . . R s 2 . 1 . 1O v e r v i e w . . . 2.1.2. NationalEnvironmental Strategy 2.1.3. "EnvironmentalOperativeProgram 2007-2013"(pending approval). 2.L4. Statutory Framework.. 2 . 2 . R e q u i r e m e no f I F C a n d W o r l d B a n k t 2.2.1. Socialand Environmental Review procedures 2.2.2. IFC PerformanceStandards Social and Environmental on Sustainability. 2.2.3.World Bank Guidelines Environment.. on 2.3. Non-Govgrnmental Organizations... . . .. ............ ..............o..........

2-l2-l 2-l 2-3z -4 z -5 z _T1 2 -8

z -9 2 - 10

. ........,...,.,.,.................. 1 1 2_

Chapter 3. Project Description3.1. ProjectLocation 3 . 2 .P r o j e c P r o p o n e n t s . . . . . . . . o . . . . . . . . . . . t .........,............

3-13-1 3-2 3-2 3-3aa J-J

3.3.Existing Assets, Past Operation History and Current Operations.. 3 . 4 .P r o p o s e P r o j e c t . . . . . . . . . . o . . . . . . . . . . . . . d 3.4.1. Process Overview 3.4.2. Plant'sLogisticsand Infrastructure. Technologic and Waste Processing Equipment. 3.4.3. Process Stages andMaterials 3.4.4. Processing Capacity. o........

3-5 3 -9 3-10Contents- |

EIA of Hot Dip Zing Gulvsnizing Facility - Oryultovo, BG.

3.4.5.Steel Works to Galvanrze. 3.5. Constructionand InstallationActivities........... 3 . 6 . E n e r g yC o n s e r v a t i o n . . . . . . . . . o o . . .....o...o....

3 - 12 3 - L2 3 - t4

Chapter 4. BaselineConditionsin Area PotentiallyAffectedb y P r o j e c t ( t t P r o j e c t A r e a " ) . . . , . oo . . . . . . . . . . . . . . . . . . . . . . . . . oo .o .r o . . . 4.1.Designation ProjectArea Parameters OryahovoRegion......... of 4.2. PhysicalGeography- Climate, Soils, Geologyand Topography... 4 . 2 . 1 .C l i m a t e . . . . 4.2.2. GeologyandTopography 4 . 2 . 3 .S o i l s . 4.3.Natural Events History - earthquakes, floods,fires and storms......4.4.BiologicalEnvironment...............ooo...oo.............o.o...oo.....

4- | 4- | 4-3 4-3 4-4 4-8 4 - 124 - 13

4.4.1.Proximity to nationalparksand otherprotectedareas 4.4.2. Flora. 4.4.3.Fauna. 4.5. Human Environment.o..... populationin the 4.5.1. Distributionof residential and occupational ProjectArea. 4.5.2. Description of previous, current and planned land-use activitiesinlor nearthe ProjectArea. 4 . 6 . E n v i r o n m e n Q u a l i f yo f P r o j e c tA r e a . . . . . . t 4.6.1. AmbientAir Conditions... 4.6.2. WaterSupply,Qualityand End Use. 4.6.3.NoiseLevels. 4.6.4. Soil conditions,including contaminationfrom previous or current activities Historical and Cultural Resources... 4.7. Archeological, andHistory.. 4.7.1. Archeology 4 . 7 . 2 .R e l i g i o n 4.7.3. Museums andArt Galleries. 4.7.4. RegularCultural and Municipal Events .... oo

4 - 13 4 - 14 4-15 4 - 18

4-18

4 - 19 . . . . . . . .. . .o . . . . . o 4 - 2 0 4 - 20 4 - 21 4 - 25

4-26 4 ' 36 4 - 36 4-38 4 - 38 4 - 39

Contents - 2

EIA of Hot Dip Zing Galvanizing Facilig - Oryahovo, BG.

Chapter 5. Waste Treatment and Disposal Measures Technologies and Equipment for Waste Processing. 5 - l Logisticsof the Wastet 5 . 1 . T r e a t m e no f t h e L i q u i d W a s t e . . . . . . . . . . ...... ...........

5-l 5 -2 5 -7 5 -7 5-8 5-8 5 -9 5-10 5 - l1

5.1.1.WasteLiquids- Processing Technologies Equipment.... and 5.1.2. Design. System 5.1.3. Operation. .. Furnished. 5.1.4. Equipment 5.2. Air Quality and Kettle Air Control Equipment 5.2.1. Hood Enclosure. .. 5.2.2.Baghouse. . .. 5.2.3.Equipment Furnished.

5.3.Materials,usedin the WasteProcessing Technologies......ooo..o..... - 1 2 5 5.3.1. Sodium Hydroxide .. 5.3.2. Ammonium Hydroxide 5.3.3. PicklingAcids 5.3.4. ChemicalAdditives (Optional). 5.4. Quantities of the GeneratedWaste - Liquids, Sludgeand Solids.... 5.5. Logistics of the Waste - Storage, Transportation and DisposalOptions ............ ooo......... .......o.......

5-12 5-12 5-12 s - 13 5-14

5-16

5.5.1. On-site Logistics - Material Handling and Temporary Storage of the Generated Waste. HAZMAT Containers and HAZMAT Buildings..... of 5.5.2. Transportation the Waste. of 5.5.3. DefinitiveStoraqe the Waste on a CertifiedLandfill

5-16 5 - 18 5-19

Chapter 6. Project Impacts and Mitigation Activities.......of 6.1.Methodologyfor Assessment the ProjectImpacts.................. 6.2. Environmental Impacts and Mitigation MeasuresAssociatedwithF a c i l i t y O p e r a t i o l l . . . . . . . . . . . . . . . . o . . . .. . . . . . . . o . . .. . . . . o . . .. . . . . . . . . . . . . . . . . o o

6- |6- I

6 - 3

6.2.1. Potential Impacts of the Generated Waste on the Measures........ MitigationActivities. WasteMinimization Environment. ' Associated and Mitigation Measures, 6.2.2. Waste Management 6-3

Contents - 3

EIA of Hot Dip Zing Galvanizing Fucility - Oryahovo, BG.

with the On-siteHandling,On-siteStorage and Disposal the Waste....... of 6.3.PotentialHuman fmpacts. Mitigation Measurs......... ............ 6.4. Environmental Impacts Associated with Construction and

6-5 6-7

I n s t a l l a t i o n c t i v i t i e sM i t i g a t i o nM e a s u r e s . . . . . . . . . .oo . . . . . . . . .... .o . . . . . . . , A . 6.4.1. Construction Installation and Noise. 6.4.2.Dust EmissionsDuring Construction and Rehabilitation.. . . . .

6-8 6-9 6-13

6.4.3.Construction Equipment andVehicleExhaust Emissions...... 6 - t 6 6.5. Potential Impacts on the Biological Resources- Vegetation andWildfire Loss........oo... o...............o..o............. .....o..o

6-17

6 . 6 .P o t e n t i aIl m p a c t so n t h e W a t e r R e s o u r c e s . . . . o . o o . . . . . . .. . . . . . . o . . . 6 - 1 8 6.7. Potential for Safety and Health Hazards beyond the Workplace,M i t i g a t i o n M e a s u r e s . o .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . o . . o . . o . . o . . o . . . . . . . . . . . . . . 6. .-. . 1.8 . .

6.8. Stakeholders Consultation.........o... 6.9. Conclusions- Significance, Sensitivifyand Nature of the Impacts...

6 -20 6 - 24

C h a p t e r 7 . A n a l y s i s o f A l t g r n a t i v e S .. . . r . . . . . . . . . . . o . . . . .ooo .o .o . .

7 -l

Chapter 8. Conclusions

8-1

References

Appendices

Appendix 1.

Project Location.

Appendix 2.1. Appendix2.2.

Legislationon Environmental Protection. National (NEQS). Environmental Quality Standards

Appendix 2.3.

Environmental Non-GovernmentalOrganizations

(NGos).Appendix'3. Galvanizing Equipment. Contents - 4

EIA of Hot Dip Zing Gctlvunizing Facility - Oryahovo, BG.

Appendix 4.1.

List of Important Reserves and ProtectedLocalities within the Republic of Bulgaria

Appendix 4.2.

Maintained Bulgaria

Reserves within

the

Republic

of

Appendix 4.3. Appendix4.3.1.

Flora and Fauna of the Oriahovo Region. Vegetationof the Oriahovo Region. Protectedplant species underthe BiodiversityAct in the Floristic Area of the DanubePlains.

Appendix 4 .3.2.

Faunain the Project Area.

Appendix 5.1.

Containers for Material Handling and Storage of Hazardous Materials - *H.AZMAT" Containers. WasteAwaytM Containers. Polyethylene ClosedHeadDrums. Over-Pack Salvage / Drums. HazPacContainers. Composite Drums. Containers KeepingChemicals for and Waste. UH.AZNIAT" StorageBuildings. Spill Containment Platforms and Modular Systems. ADR Convention - UN Codes & Instructions. Signed Contracts & Licenses for Collection,

Appendix5.1.1. Appendix5.1.2. Appendix5.1.3. Appendix 5.1.4. Appendix5.1.5. Appendix 5.1.6. Appendix 5.2. Appendix 5.3. Appendix 5.4. Appendix 5.5.

Transportation, Treatment and Storageof Waste.

Contents - 5

EX. d'Hot Dip Zitt,s GalyanizitrgFucility - Oryahovo, BG.

Chapter1. Introduction.

The ner,vHot Dip Zinc GalvanizingPlant r,vill be the only galvanizingfacility in NorthernBulgaria. The new galvamzing plant w'ill be installed on the premisesof a former metallurgy facility, which comprised a for-rndryand electro-g alvanizing facility. The Plant's capacitywill be 6,000 t p.a.arssuming one-shiftprocessing a schedule.The use of hot dip galvanized productsis extensiveand there is a growing demand the local market,which cannotbe met by the existingcapacities. on During the period: October 2006 March 2007, a full Environmental Impact Assessment Study @fA Study) of the proposedHot Dip Zinc GalvanizingProject (i..., the Project) activities was performed, and a final EIA Report, documenting the EIA processes resultswas prepared. and The EIA Reportwas developed compliance in with the relevantguidelines,set by the Overseas Private InvestmentCorporation(OPIC), the IFC, and the BG Ministry of Environmentand Waters(BG MEW). This EIA Reportwould be submittedto OpIC in June2007. 1.1.Project Proponents. A special entity (i.e., a "special Purpose Corporation", or "SPC") will be incorporated the implementation this Project.The new SPC will be created for of with the participation a Bulgarian and an American partner. of Bulgarian Purtner in this project is "TRE-P" EOOD, & Bulgarian company, which has acquired land, production, storage and administrativebuildings, the related infrastructure and machineryand equipmentlocatedin the town of Oryahovo. "TRE - P" EOOD holds clean title over assets acquiredagainsta consideration below the investment cost for settingup a similar plant, which contributedto the lower overali costof the Project. Americanpartner in this project is "GTI Engineering fnc", - an U.S. corporation with more than 14 yearsof experience manufacturing a galvarizrng equipment. in of GTI Eng. has been selectedto supply the Plant's machinery and equipment. GTI experts will be supervisingthe installationof the galvamzingequipment, and will be providing an on-site training of the Plant's personnelin the art of galvanrzing. GTI will assistthe Plant's expertsin fine-tuningthe operations, well as will address as any issues,that might have come up immediately after the Plant's launch. GTI's expertisewill be utilized to select and procure the best suited air pollution control equipment and wasteliquids treatment equipment. 1.2.ProjectLocation and ProjectArea. The new Hot Dip Zing GalvanizingPlant will be situatedin the North-Western part of Bulgaria, and located in the town of Orycthovo- a port on the DanubeRiver, with a customs office and a ferry-boat complex(see AppendixL).Chapter 1. Introduction.

1-1

BG. Facilirx-- Ory*ahovo, EL4 oJ'flot Dilt Zin.q (iul,*ttttiz,ing

below: The EIA Study was performed rn four muitt phuses,rvhicharedeveloped PhaseA. Scoping. The general activities,developedduring the scoping phase of the EIA study included: Compilcrtionof the Project Data : A generic description of the proposed project activities, a1l specific technical data, (related mostly to the technological processes equipment),as well as all significant logistics & factors, that should be relevant to the EIA, were compiled and analyzed during this first phase of the EIA study. Review of the published specializeclliterature and other soLtrces _fo, informcttion : An appropriate(secondary)data on the weather, soil, water resollrces,wildlife and vegetationwere reviewed and complied dunng the phaseof the EIA study; second Review on Legislation : Complete information on relevant legislation, norrnsand standards, that must be used in the EIA, was reviewed regulations, the third phaseof the EIA study; and compliedduring Identification of the Potential EnvironmentulImpacts: The already collected databaseswere analyzedand the main potential environmentalissueswere identified. PhaseB. CoUection of Baseline Data. amount of baselineinformation on the Project Area was collected An appropriate from an akeady published information sources,as well as from previous studies, in conducted the Oryahovoregion (closeto the project area). and a very importantpreliminary inforrnation,relatedto the existing A considerable soil conditionsin the project area,was collected from a field survey, which r,vas speciallydevelopedfor the purpose of this EIA study. The field survey was conductedin the period: November 2A06 January 2007 and included a soil , samplingdatacollection, analysis and evaluationof the obtainedresults. of Phase C. Anulysis and Assessment the Impacts. logisticsand other tlpe of project technologic, socio-economic, All environmental, information,which was collectedduring the first two phasesof the EIA study, was of used for analysisand assessment all potential environmentalimpacts,that might project activities. These environmentalimpacts could by be generated the proposed potentially affect the baselineconditions in the Project Area, ?s well as some factorsat the facility site. importanttechnologic, logistics and socio-economic with thefacility operation, represented impacts,associated The main environmental all potentialimpacts, that could be caused by the wastegeneration, as well as,by of thetreatment,storage and transportation the wastein the project area(or closeto it).Chapter 1. Introduction.

1-5

EIA oJHor Dip Ziu,g(iulvsnii,ingFaciiiry- Oryohovo, BG.

The environmental impacts, from constructiort tttttl itrstallation activities are mainly the impacts, caused by construction and installation noise, as lveil ns, by dust emissions and vehicle exhaust emission (that might be generated during the constructionphase of the project). The analysis of all potential issues detemrined, was focused mainly assessment thefollowing types of environmentul intpctcts: of on the

a) environmental impactson the geomorphology the project area, i.e., of potential impactson geology, topography and soils; impacts on the ecology in the project area (including the flora and the b) fauna); c) impactson the ambientair quality and ambientnoise levels; d) impactson the water quality ; e) impacts on the human environment, i.e., on the residential and/or populationin the project area(if any); occupational processcoveredthe following main aspects: The assessment o . . identification and analysis of all potential issues,related to the proposed projectactivities; (i.e.,the existing) baseline evaluation the present of conditions ; prediction of all potential changes, that could be generated in the environmentalparameters,(which are likely to be affected by the project related activities); identificationof all potentialimpacts, analysisand evaluationof the significanceand the magnitudeof all potential impacts; that should development mitigation activities and minimization measures, of be applied to reduce the "potential" of each significant project impact, (or evento avoid the impact entirely); predictionand preliminary analysis of any residualimpacts; determinationof an appropriate minimum of monitoring requirements.

. . .

. .

PhaseD. Preparfltion of the Report Documentation. as A final EIA Report, documenting all developed ElA-processes, well as all results, obtained during the EIA study, was prepared. The EIA Report was prepared compliancewith the relevantguidelines, in set by the OPIC, the IFC, and the BG Ministry of Environmentand Waters. The final versionof this EIA Report r,vould submittedto OPIC in June2007. be 1.4.Organization of the EIA Report. This EIA Reportconsists the following main Chapters: of . Chupter 1. Introduction.

Chopter 1. Introduction.

1-6

BG' Facili4'- Oryahovo, E!,1of I{ot Diltling Gult'ntti:itig

Chupter 2. Policy, Statutory oild Instittttionul Framework. The major the existing national policy factorsof the National EnvironmentalStrategy, developmentand environmental and the resuiting legislation for sustainable protection are briefly developedin the diil-erentsectionsof the chapter.The while conductingthis EIA that need to be follor,ved, legislativerequirements, in Study are alsopresented this chapter. Chapter 3. Project Description. A descriptionof the proposed project, of including presentation the project location,the project proponents,as well of the plant's logistics,the infra-structureand the applied as full description in are equipment, developed this chapter. technologicand wasteprocessing Chapter 4. Baseline Conditions in Area PotentiaUy Affected by Project ("Project Area"). A detaiteddescriptionand analysisof all existing physical, in conditionsare developed this chapter.The biological and socio-economic the mainly on the geomorphology, different sectionsof the chapterare focused the soils, the water resources, flora and fauna, the air quality and the human existingin the project area. environment, Chapter 5. lYuste Treatment and Disposal Measures - Technologies and Equipment for WasteProcessing. Logistics of the Waste. The main phases as and the equipment,appliedin the wastetreatmenttechnologies, well as all important logistics activities, including the material handling, the waste, are developedin details and the storageof the generated transportation in this very importantchapterof the EIA report. Chapter 6. Project Impacts and Mitigation Activities. A detailed description are and analysisof all potential impactson the environment developedin this that mitigation activitiesand minimization measures, A11necessary chapter. "potential"of the project impactsare also have to be appliedto reducethe developed in details. Results, from an already developed stakeholders in are consultations alsopresented the chapter. project alternatives, Chapter 7. Analysis of Alternatives.Some considered mostly to the plant's infrastmctureand the plant's logistics chains are related presented the chapter. in of Chapter 8. Conclusions.The main conclusions the proposedproject in this chapter. summarized References. Appendices.

Chapter 1. Introduction.

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Chapter 2. Policy,Statutory and Institutional FrameworkThe adoptionof modern technologyin agriculture,industry and everydaylife, and the precondition also the of appearance denselypopulatedterritories and megalopolises, and factorson the environment,, more specifically,on negativeimpact of anthropogenic radiation background, such as water, ait, soil, natural resources, its main components, and landscape. biodiversity existingbetweenhumanbeingsand the natureand In order to regulatethe relationships to preservethe favourableliving conditions on our planet we createdthe ecological the which subjectsto evaluationand monitors and manages impact of each of science, the more significanthumanactivitieson the environment. in Over the past decades the courseof planning and implementingall kinds of regional of managingthe development larger or smaller areas,the so-called policies applied in accordingly. havebeenidentifiedand implemented objectives" "priority environmental The paragraphsbelow list the priorities identified in the relevant policies on the protectionof the environmentof the Republic of Bulgaria,which form an integral part Plan over the 2000 - 2006period. of the National RegionalDevelopment 2.1. Statutory Requirementsof Bulgaria. 2.1J. Overview. The developmentof statutoryand other instrumentsfor environmentalmanagementhas steadilygainedpriority in Bulgariasincethe late 1990s. The Environment Protection Act was passedby the Parliament of the Republic of Bulgaria in 1991 and it constitutesthe first regulatory document governing the protectionand melioration.Over the past several activities involved in environmental in yearsthis Act has been subjectto a number of amendments view of harmonization with as with the relevantEU and world standards, well as in order to ensurecoherence on states the Balkans. the relevantlegislationof neighbouring Passingthe Environment Protection Act was followed by the establishmentof the laid down in Executive EnvironmentAgency, which is governedby the requirements The ExecutiveEnvironmentAgency is chargedwith the task its Rules of Organrzatton. to monitor the enforcement of legal provisions concerning the quality of the environmentand to control the protection of the environmentagainst pollution and disturbance. at were established the sametime with RegionalEnvironmentand Water Inspectorates the task to assistthe ExecutiveAgency in dischargingits duties in individual regions within Bulgaria.

Chapter 2. Policy, Stututory und Institutionul Frumework.

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Regional Testing Laboratories have been attached to those units to control the properties the environment: waters,soils,etc. of air, The main legislative body on the government level in the field of environment protection and control is the Ministry of Environment and Waters. The relevant properties of the environment subject to monitoring and control, and the methods accordingto which those activities are conducted,are regulatedby laws defining the requirementsapplicableto the impact on individual componentsof the environment (seeAppendix 2.1), as well as by the relatedregulationsand guidelinesadoptedby the legislationof the Council of Ministers. secondary The Ministry of Environment and Waters has been appended the Environment undertaking which may not have ProtectionManagement Company.It is a state-owned interest in business companiesor partnershipswithout the written consent of the Minister of Environmentand Waters.The main objectsof the companyis to implement environmentalprojects and activities towards the realizatronof national and municipal and programs. environmentalstrategies of The programson preservation and control of individual components the environment form an integral part of and are derived directly from the BulgarianNational Regional DevelopmentPlan. A National Environmental Strategy is already in place, and now the 2007 - 2013 Environmental Operative Program is being developedand discussed,and is to be adoptedon the governmentallevel. The featuresof the National Strategy,and of the Operative Program, are discussed below in this chapter. to of The bodiescontrollingthe implementation projectsand programsdesigned protect are of the relevantproperties the environment, as follows: On the national level: the SupremeCouncil of Environment Experts, which as suggests the decisionson EnvironmentalImpact Assessments, well as the of decisionson the reports on the assessment environmentaldamage caused through past acts or failure to act, including a program to remedy such past The SCEE suggests also programsaimed at bringing the environmental damage. to activity of privatizedcompanies compliancewith the relevantenvironmental legislationetc. On the regional level: Councils of Environment Experts with the Regional Those are specializedbodies of the Environment and Water Inspectorates. which discussEnvironmental Regional Environmentand Water Inspectorates, the Reportsand attacheddocumentation, procedureon the Impact Assessment impact etc. on the regionallevel. assessment environmental of

Chapter 2. Policy, Stututory snd Institutional Frumework.1")

EIA of Hot Dip Zirtg Gulvurtizing F'acility - Oryalrcvo, BG.

2.1.2. National Environmental Strategy of The National EnvironmentalStrategyconsists the following sections: of of 1. Analysis of the conditionof individual components the environment, the factors affecting them, of the trends, causes and sourcesof pollution and environmental damage by individual sectors of national economy, as well as of the institutional framework, and the administrative and economic tools whereby the policies are implemented. and domesticterms. of 2. Assessment optionsand limitations in international andpriorities. 3. Objectives will be attained. 4. Tools wherebythe objectives while at the same time the possible positive and 5. Options to reahzethe strategies, in and domesticterms are assessed. negativeimpactsand consequences international and 6. Five-yearactionplan identifying specificinstitutional,organtzational investment funding sources. and responsible institutions,requiredresources deadlines, measures, 7. Schemeof organization,monitoring and reporting on the performanceof the action resultsand take correctiveactionwherenecessary; plan in orderto evaluate The main criteria in identifying priorities in the National EnvironmentalStrategyare: development; A) Compliancewith the principlesof sustainable of B) Prevention or abatement risks for the human health and the environment; of C) Preventionor abatement risks for the biodiversity; componentsas a for D) Abatementof adverseconsequences individual environmental and resultof naturalprocesses phenomena; and E) Optimal use of naturalresources energy. and the factors National plans and programsby individual environmentcomponents, affecting those, are developedon the basis of the principles,objectivesand priorities identified in the National Environmental Strategies,and in compliance with the laws. of requirements specificenvironmental The plans and programs on regional development, economic development or of of development individual branches economyon the national and the regional level ensurethe integralprotectionof the environmentin compliancewith the principles and purposes the law and the National EnvironmentalStrategy. of

Chapter 2. Policy, Stututory und Institutionul Frumework..la

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units attached the relevantministriesand governmentagencies to Local administrative which collect and manageenvironmentalinformation, support program development of throughthe services their expertsand the provisionof information. of Representatives Non-Governmental Organizations(i.e., NGOs), companies and industrial organizationsare also involved in the development,extending and updating of the programs. 2.1.3. 'oEnvironmental Operative Program 2007 approval)

2013'

(pending

The main strategicaim of the Program is to improve, protect and restorethe natural environmentand develop environmentalinfrastructure. The specific strategicaims are related to the preservationand improvement of the and soil protection;preserving condition of waters;improvementof wastemanagement biodiversityand protectingnature; which the Programis aiming to attain, arethe following: The main objectives 1. 2. 3. 4. 5. 6. 7. 8. Wastemanagement. Reclamation polluted land. of Water supply. Municipal wastewatertreatment. Air-quality control. Pollution Prevention and Control (IPPC). Integrated protection. Boostingbiodiversityand environmental Providing assistance SMBs to introduce new environmentallyfriendly to management systems. and environment technologies energysources. 9. Energyefficiency and renewable

of The implementation the OperativeProgramon environmentprotectioninvolves the following activities: sector; Analysisof the conditionof the environment Strength,Weakness,Opportunitiesand Threats (SWOT) Analysis of the environment sector: Building strategicaims and priority trends in the protectionand control of the environmentsector; Creating monitoring indicators and a mechanismto collect and process information; with EU legislationand policies; Ensuringcompliance Developmentof an indicativefinancialplan; Compiling a list of large-scaleprojects within the framework of the OperativeProgram; assessment. and from the ex-anteassessment the environmental Conclusions

Chupter 2. Policy, Statutory and Institulional Frsmework.

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Priorities of the Environment Protection Program: Priority /. Improvement and development of wastewater and drinking-water infrastructure settlements above2'000 populationequivalents. of of infrastructure. Priority 2. Improvementand developmentof waste-treatment The main objectivesidentifiedin Priority 2 of the EnvironmentProtectionProgramare: with a in Improvementof waste management Bulgaria in accordance recoveryand ultimate hierarchy(prevention, definedwaste-management disposal).

'

iii ill#l"ff lffi i#i:i.#'"J,",T""'[:lli'Til,1ilT' T:;":?.landfills. household-waste

and Priority 3. Biodiversitypreservation restoration. The main objectiveidentifiedrn Priority 3 is minimizing and checkingbiodiversityloss in Bulgaria. A User AssistanceHandbook has been developedalongsidewith the Environment in the ProtectionProgram. This Handbookdetermines main stages the implementation of the OperativeProgram,which are as follows:

: iil1T,1Tii"to,"" and selection;o o Awarding public contracts; Monitoring and reporting;

and accounting; : filfi#lril#,xr":rtrement. o and financial a{ustments; Irregularities Informationand publicity; Keepingdocuments.

2.1.4.Statutory Framework. The main law of the Republic of Bulgaria governing the rules applied in drafting an EnvironmentalImpact Assessment EIA and, which is appliedin the implementation of specific projects (including in the case at hand, the Hot Dip Galvanizing Facility project),is the Environment ProtectionAct. This &ct is the basic legislative tool empoh)ering the government to frame regulations for the protection of the environment.Chapter 2. Policy, Strttutor.yand Institutional Frsmework.

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This act regulates: o . . . the protectionof the environment; the preservation of biodiversity in accordance with Bulgaria's natural biogeography; components; the protectionand useof environment the control and the managementof factors damaging to the environment; exercising control on the condition of the environment and the sources of pollution; of the preventionand abatement pollution; the establishing and the functioning of the National EnvironmentalMonitoring System; programsand plans on environmentprotection;the collection of the strategies, to and access environmentalinformation; the economic organization environmentprotection activities; of the municipalities,the legal and the rights and obligationsof the government, natural personsin terms of environmentalprotection.

o o o . o

to The act is applicableto a broadrangeof issuesand extends air, water, soil, land, and wastes.The key featuresof the noisepollution, as well as to the handlingof hazardous law that have a direct bearingon the proposedProjectrelateto the requirementfor an initial environmentalexamination. of Section III, Art. 92 of the Act regulates environmental impact assessments activity and technology,and investment investmentproposalsin terms of construction, impact activity and technologyhaving cross-border proposalsin terms of construction, on the environment. are components for The additionalrequirements the quality of individual environmental (acts,rules,regulations etc.).Theseinclude: listed in the relevantregulatorydocuments Act 1. The EnvironmentProtection and Preparations 2.The Protectionfrom the Adverse Effects of Chemical Substances Act 3. The Water Act Act 4. The WasteManasement 5. The CleanAir Act 6. The Protectionof Water and Soil from Pollution Act 7. The Asricultural-LandProtectionAct

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8. fhe BiodiversityAct 9. The Medicinal PlantsAct Organisms Act 10. The Genetically-Modified AreasAct I 1. The Protected 12. The ProtectionagainstNoise in the EnvironmentAct The specificmethodologyapplied in deliveringthe EnvironmentalImpact Assessment laying down the conditionsand the procedure by of the site is governed the Regulations impact assessments. applicablein deliveringenvironmental

National Environmentsl Quality Standards (NEQS). The NEQS specifythe following standards: in 1. Emission norms on the permitted content of harmful and dangeroussubstances in released water bodies. wastewater marinewaters. 2.The qualityof coastal purposes and the for 3. Norms on the quality of water designed drinking and household quality requirements for surface waters designed for drinking and household water supply. cationnorrns. 4. Waste-classifi by in 5. Norms on harmful emissions the air released varioussources. sludge on 6. Standards the recoveryof wastewater-treatment in 7. Permittedlimits of pollutant-content the soil 8. Maximum noiselevels set The complete of NEQS is given in Appendix2.2. 2.2. Requirementof IFC and World Bank. The IFC and the World Bank requirethat all projectsfunded by theseagencies have to be constructedand operatedin an environmentallyresponsiblemanner. All World Bank projectsthat receiveIFC funding must thereforecomply with appropriate Group environmentalpolicies and guidelines.As the project proponentsare likely to project,the EIA has beencarried expansion seekfunding from the IFCIfor the proposed

Chapter 2. Policy, Statutory and Institutionol Framework.11

EIA of Hot Dip Zing Galvanizing Facility - Oryahovo, BG.

The key documents the IFC are of out to comply with both nationaland IFC guidelines. discussed below. 2.2.1. Socialand Environmental Review Procedures. (ESRP) outlinesthe processthrough IFC's Environmentand Social Review Procedure which IFC staff implement the Corporation'scommitmentto promoting projects that part of This commitmentis a fundamental and socially sustainable. are environmentally IFC's mission and is elaboratedon in IFC's Policy and PerformanceStandardson (PPS) as well as in IFC's Policy on Disclosure Social and EnvironmentSustainability (the DisclosurePolicy). of Information The ESRP applies to the full range of IFC's investmentactivities: direct lending to (including both corporateand project finance);lending to financial private enterprises minority equity/shareholding companies,financial institutions, and in intermediaries; securitizations); and municipal other entities; structuredfinance products(guarantees, its technical assistanceand finance. The ESRP also describesIFC's approach to work and capacity building to advisory activities, including both investment-related private sectordevelopment emergingmarkets.The ESRP also describes in help support the applicationmethodologythat IFC staff must follow in order to implement IFC's with the DisclosurePolicy. requirements accordance in institutionaldisclosure The applicationof the PPSvariesaccordingto the natureof IFC's interventionwith the versus (for example,industrialcompanies client and the natureof the client's business institutions).The ESRP coversIFC's review and supervisionresponsibilities financial throughoutthe project life cycle. and socialperformance for environmental activitiesand project The timing of an IFC investmentin relationto a client's business processvaries from project to project. IFC doesnot control the timing implementation more times than not, occurswell after the of its entry into a project; IFC's engagement, started.When considering project is conceived, with the site selected and development whether or not to participate in a transaction,IFC's review takes into account any project developmentwork undertakenbeforehand.IFC has a range of other tools to help staff assistits clients in improving the environmentand social outcomesof their projects. the of Other sources informationthat complement PPS include the GuidanceNotes for IFC EnvironmentalHealth and Safety Guidelines,which the PerformanceStandards; provide specific benchmark criteria in line with good internationalpractice; and a diverserangeof best practicematerial.The ESRP thereforedoesnot provide technical and social issues.Insteadit is a defined supportor guidancefor specific environmental and structuredprocessthat helps IFC maintain consistencyand quality of its review are identified and committed to. It thus processand ensurethat policy requirements outcomesin the operationsit helps fulfil the Corporation'scommitmentto sustainable investsin or supports. with and social impactsin a mannerconsistent and managingenvironmental Assessing review the work of is of the PPS is the responsibility the client.IFC's responsibility toChapter 2. Policy, Statutory and Institutional Framework.

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the client, identify opportunitiesto improve outcomes,and ensure consistencywith of policy requirements. IFC's approachis to take full advantage any work undertaken thus minimizing additional by the client before IFC's own entry into the transaction, processing burdenswhere it is possibleto do so while still meetingthe Corporation's of policy requirements. particularimportancein the PPS is the adequacy the client's Of ESMS. IFC's investment or advisory support is used to influence and improve performance wheneverpossible. The ESRP includes an amended categorizationmethodology, which categorizes projects accordingto potential adverseimpacts after IFC's review rather than during initial screening.Categorizatronwas previously used as a determinant of certain community engagement proceduralrequirements the client relating to assessment, for and disclosure. The ESRP recognizesthat all process requirementsof the client have now been captured in the PPS and that categorizationis now used only to determine IFC's IFC's environmentaland social specialists are institutional disclosurerequirements. the and integralpartsof the process Corporationusesto optimize outcomes. essential judgment and expertisebut provides a The ESRP is not a substitutefor professional of and frameworkfor the consideration documentation key issuesand decisionsthat are made during the project cycle. It also provides staff with a process for document preparation. 2.2.2. IFC Performance Standards on Sustainability. Social and Environmental

to IFC applies the PerformanceStandards managesocial and environmentalrisks and in opportunities its private sectorfinancing in its impactsand to enhancedevelopment member countries eligible for financingz.The PerformanceStandardsmay also be applied by other financial institutionselecting to apply them to projects in emerging that the client: establishstandards Standards markets.Together,the eight Performance is to meet throuehout the life of an investmentbv IFC or other relevant financial institution: Performance Standard 1: Social and Environmental Assessment and Management System PerformanceStandard2: Labour and Working Conditions and Abatement Standard PollutionPrevention 3: Performance 4: Standard CommunityHealth,Safetyand Security Performance 5: Performance Standard Land Acquisition and InvoluntaryResettlement Natural PerformanceStandard6: Biodiversity Conservationand Sustainable Management Resource Peoples 7: Performance Standard Indigenous 8: Performance Standard CulturalHeritage assessment the StandardI establishes importanceof: (i) integrated Performance to identify the social and environmentalimpacts, risks, and opportunitiesof

o o o a a

O

o a

Chapter 2. Policy, Statutory and Institutionsl Frumework.

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projects; (ii) effective community engagement through disclosureof projectrelated information and consultationwith local communities on matters that directly affect them; and (iii) the client's management of social and environmentalperformancethroughout the life of the project. Performance Standards2 through 8 establish requirementsto avoid, reduce, mitigate or compensatefor impacts on people and the environment, and to improve risks While all relevantsocial and environmental conditionswhere appropriate. and potential impacts should be considered as part of the assessment, 2 Performance Standards through 8 describepotentialsocial and environmental impacts that require particular attentionin emergingmarkets.Where social or environmentalimpacts are anticipated,the client is required to managethem through its Social and Environmental Management System consistent with Performance Standard1. clients must Standards, In addition to meeting the requirementsunder the Perforrnance comply with applicablenationallaws, including thoselaws implementinghost country law. obligationsunderinternational offers helpful Standards, to A set of GuidanceNotes, corresponding the Performance guidance on the requirementscontained in the PerformanceStandards,including practices help clientsimprove project to materials,and on good sustainability reference performance. 2.2.3.World Bank Guidelineson Environment. guidelinesfor areas using World Bank (WB) environmental The Pak-EPArecommends where there may be a gap in the national guidelines. The principal World Bank guidelinesare listed below. publications that containenvironmental Pollution Preventionand AbatementHandbook 1998: Towards Cleaner Productionl Volume I: Policies,Procedures, Assessment Sourcebook, Environmental Issues2 and Cross-Sectoral Environmental Assessment Sourcebook. Volume II: Sectoral Guidelines3. The first two publicationslisted above provide general guidelinesfor conducting an While themselves well as project designers. as the EIA, and address EIA practitioners the Sourcebookin particular has been designedwith Bank projects in mind, and is projects,it also infrastructure of especiallyrelevantto impact assessments large-scale and containsa wealth of informationusefulto environmentalists projectproponents.'

World Bank, UNIDO, and UNEP. 1999. Pollution Prevention and AbatementHandbook, Towards The World Bank; IINIDO; UNEP. EnvironmentDepartment, CleanerProductio,n. 2 Sourcebook,VolumeI, Policies, Procedures,and CrossWorld Bank. 1991.EnvironmentalAssessment The World Bank. World Bank TechnicalPaperNo. 139.EnvironmentDepartment, SectorqlIssues. 3 World Bank. 1991.EnvironmentalAssessment Sourcebook,Yolume III, SectoralGuidelines.World Department, The World Bank Paper No. 140.Environment Bank Technical Chupter 2. Policy, Statutory und Institutional Framework.

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The Sourcebookidentifies a number of areas of concern that should be addressed It during impact assessment. lists activities that may have significant negative for consequences biodiversity,and mentionsloss of habitatresultingfrom mining and mineral exploration as one such activity. It sets out guidelines for determining the project impact in such cases, provides a checklist of tools to identify possible biodiversity issues',and suggests possible mitigation measures.Possible project developmenteffects on wild lands, wetlands, forests' etc., are also identified, and The Sourcebook also highlights core concernsin social mitigation measures suggested. issuesinto and the impact assessment emphasizes need to incorporatesocioeconomic impact assessment exercises. environmental is dealing with sectoralassessment more The EnvironmentalAssessment Sourcebook specific. It contains sect