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Environmental classification and rationale
The proposed project was screened A/1, as pursuant to Bank’s Environmental
Policy all projects above a 300 MW thermal capacity are screened as A level
requiring an Environmental Impact Assessment (“EIA”) to the satisfaction of
the Bank. Given that the new CCGT plant is interlinked to developments
occurring at the main plant an Environmental Audit was undertaken of existing
integrated steel plant and an Environmental Analysis of the proposed
investment programme at AMK in addition to the EIA of the Bank funded Project.
Information reviewed during the environmental appraisal
An Environmental, Social Impact Assessment as well as an Environmental Audit
and Analysis has been undertaken as part of the Bank’s due diligence. The
Project has also been subject to Ukrainian EIA and a technical review was made
of the project by an international consultant.
It should be noted that the Project is just one element of a major wide
ranging environmental improvement and modernization programme at AMK. The
International Finance Corporation (“IFC”) approved the financing of this
project in June 2006 and undertook an environmental due diligence as part of
its decision making process. The Bank liaised with the IFC as part of it’s due
diligence. The intention of the IFC funded improvements is to provide
significant environmental benefits, particularly with respect to air quality,
which is very poor in the City and is attributed to the steel plant. The IFC
has agreed with AMK an Environmental Correction Action Plan (“CAP”), which
will provide significant environmental benefits.
Members of the Bank’s Environment Department visited the site in 2005 and
2006. EBRD staff attended public consultations in August 2006.
Key environmental issues and mitigation
The new CCGT plant will be located within the existing steel plant and, after
the planned wider modernization of the steel plant, will utilise process
off-gases from the coke ovens, converters, and blast furnaces. The plant will
utilize waste gases, which otherwise would have to be flared, thereby reducing
the environmental impact of the plant. The new power plant will be using
state-of-the-art pollution control technology and meet all the relevant EU and
Ukrainian emission, notably as specified by the EU Large Combustion Plant
Directive and EU Integrated Pollution and Prevention (“IPPC”) Directive BREF
Note for the Steel Sector. AMK will operate the power plant in compliance with
Ukrainian laws and regulations as well as in accordance with EU environmental
standards, including the IPPC defined Best Available Technique’s (“BAT”)
guidelines. An environmental management system and continuous monitoring will
be incorporated into day-to-day operations of the CCGT plant as well as the
AMK facility.
Nevertheless, additional investments may still be required in the future at
the AMK steel plant and the nearby AMK coke works as the local ambient air
quality may still remain elevated and above EU and National standards. Further
studies will be necessary once the modernization programme is further advanced
to determine whether additional mitigation is needed at the AMK facility.
Environmental opportunities
The Project is expected to bring significant environmental benefits as the new
plant will be using state-of-the-art technology and will have a large positive
impact on air quality in Alchevsk as it will utilize some of the waste gases
from the AMK steel plant. Moreover, by utilising waste process gasses to
generate of electricity, AMK can displace electricity produced by mainly coal
fired power plants. The reductions achieved in the period until 2012 are
estimated to be over 5 million tonne of CO2.
Summary of Environmental Action Plan
An Environmental, Social Action Plan (“ESAP”) for the Project as well as AMK
owned assets has been developed based on the findings of the environmental due
diligence. ESAP is being negotiated with the Company. This among others
requires that that AMK design and implement IPPC BAT requirements for the new
power plant and implement an environmental management system at the entire
facility. The ESAP is interlinked to the IFC agreed CAP.
Disclosure of information and consultation
The Project has been subject to a public consultation and a disclosure plan
has been developed to the satisfaction of the Bank. Disclosed materials
include:
1. 2006 Environmental Impact Statement, Executive Summary in Russian and
English
2. 2006 Environmental Impact Statement, Main Report plus appendixes in Russian
and English
3. 2006 Public Consultation and Disclosure Plan (PCDP) in Russian and English
The materials are available in hard copy at the following locations in Ukraine
at
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Alchevsk Iron & Steel Works, AMK Environmental Department , 4 Schmidt Str,
Alchevsk; tel. +38 6442 933 25, Contact: Mr Nickolaj Antonv; e-mail:
dikovich@amk.lg.ua
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EBRD Regional Office Kiev, 27/23 Sofiyska Street, 01001 Kiev, Ukraine. Tel:
+380 44 270 6132. Contact: Olga Yeriomina email: yeriomio@kev.ebrd.com
The EIA package and Executive Summary have also been released for public
review by the project sponsor on its website www.amk.al.lg.ua and released
locally in the following locations:
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Architect office, Municipal Administration, Lenina 48, Alchevsk, Attention: Mr
Victor Bogach, Head of Labour, Safety and Environment, Town Hall, tel: +
380644235333;
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Alchevsk Iron & Steel Works, Environmental Departament, 4 shmidt Str,
Alchevsk. Attn: Yuri Popov and Nickolaj Antonv: tel +38 644235333 email:
dkiovich@amk.lg.ua
Additionally the executive summary is available on the EBRD internet site at
www.ebrd.com.
Monitoring and reporting
The Company will monitor the environmental impact of its operations in
accordance with national law and regulations. The Bank will evaluate the
project's compliance with the applicable environmental and social requirements
during the lifetime of the project by reviewing annual environmental reports
prepared for the project covering:
(i) ongoing performance of project-specific environmental, health and safety
activities as reflected in the results of periodic and quantitative sampling
and measuring programmes, and
(ii) the status of implementation of environmental mitigation and improvement
measures. The Bank’s representatives will also conduct periodic site
supervision visits when deemed appropriate.
The Bank will undertake monitoring of the Project, inclusive of site visits by
Bank staff as well as independent audits and an additional BAT Assessment of
the Project and AMK facilities.
There is an Environmental Impact Assesment available for this project.
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