International Finance Corporation Environmental and Social Information Memorandum (ESIM) ALBANIA: Elbasan Cement (#9725) To: Mr. Alireza Zavar, CSEG1 Mr. Mishel Remacka, CSEG1 Mr. Sushil Anand, CTETE Environmental Category: B Project Description: From: Josefina Doumbia, CTESR Environmental Specialist Kerry Connor, CTESR Social Development Specialist Project Major Sector: Cement Date Issued: July 6, 1999 PDS-ER Issue Date: The proposed project includes an investment of approximately US$61.2 million for substantial rehabilitation and environmental improvement of quarry and cement milling operations and construction of a dry process kiln line to expand the production capacity of the Elbasan Cement Factory from 100,000 tons per annum to approximately 500,000 tpa. The Plant is located on the outskirts of the city of Elbasan, approximately 60 kilometers southwest of Tirana, the capital. Information Reviewed: Draft PDS-ER Key Issues: air emissions; process and domestic liquid effluents; solid waste handling and disposal; sustainable raw material supply; quarry reclamation; fuel storage and handling; employee training; and employee health and safety. Public Consultation & Disclosure: Public disclosure of information for category B projects requires that after obtaining the sponsor's permission for public release of the ERS, the sponsor must release the ERS locally 30 days prior to the proposed Board date, in a culturally appropriate manner to facilitate awareness by local stakeholders; and the Investment Department sends the ERS to the Corporate Relations Unit via E-mail for release to the InfoShop not later than 30 days prior to the proposed Board date. This requirement should be communicated to the sponsor as soon as possible in the project cycle. Studies Required: Environmental audit including a Corrective Action Plan Information Required: Corrective Action Plan including associated costs and implementation time frame to ensure compliance with World Bank guidelines: and outline of how the sponsor proposes to release the ERS locally in a culturally appropriate manner to facilitate awareness by local stakeholders. Information provided above should be shared with the sponsor as soon as possible in the project cycle. Sections below are for IFC purposes only. Key Comments: Since this project is co-finance with EBRD, the audit will be evaluated by both institutions and the environmental requirements will determine by both EBRD and IFC. -2PDS-ER Language: "This is a category B project according to IFC's environmental and social review procedure. Environmental and social issues associated with this project include: air emission control, management of solid waste and liquid effluents, sustainable raw material supply (quarry operations), and employee health and safety. The sponsor has been asked to perform an environmental audit and prepare a Corrective Action Plan including associated costs and implementation timeframe to upgrade the existing operations and ensure compliance with World Bank guidelines and policies.” MOR Language: " This is a category B project according to IFC's environmental and social review procedure. Environmental and social issues associated with this project include air emission control, management of solid waste and liquid effluents, sustainable raw material supply (quarry operations), and employee health and safety. The sponsor has been asked to perform an environmental audit and prepare a Corrective Action Plan including associated costs and implementation timeframe to upgrade the existing operations and ensure compliance with World Bank guidelines and policies.” cc: Messrs./Mmes. Raczynski, Riddle, Armstrong, G. Thomas, Rosen, Lamba, Aizawa, Spooner, Sakiqi, de Nevers, IFC Info. Center Attachments: Cement Manufacturing Guidelines, July 1998; General Health and Safety Guidelines, July 1998; Guidance on Local Disclosure of the Environmental Review Summary; Policy Statement on Forced Labor and Harmful Child Labor, March 1998; OP 401 Environmental assessment, October 1998. S:\Mainstream Projects\Albania\Elbasan-9725\Elbasan-9725-ESIM.doc July 6, 1999 11:37 AM