PCB Contaminated Site Investigation Report Including

UNITED NATIONS INDUSTRIAL DEVELOPMENT ORGANIZATION

Output 5.1 and 5.2 – PCB contaminated site investigation report including investment interest information with the Prioritized list of PCB contaminated site for decontamination related to Full-sized Project to Implement an Environmentally Sound Management and Final Disposal of PCBs in the Republic of Serbia, 100313

5th April 2018

These report provide PCB contaminated site investigation report including investment interest information with the Prioritized list of PCB contaminated site for decontamination to undertake the project activities of the project entitled “Full-sized Project to Implement an Environmentally Sound Management and Final Disposal of PCBs in the Republic of Serbia”, UNIDO ID: 100313, GEF ID: 4877.

Introductory considerations Legislative framework

Soil protection, as well as soil recovery and remediation are principally regulated by the Law on Environmental Protection (“Official Gazette of the RS” No 135/04, 36/09, 36/09 other law, 72/09 other law), leaving to the special law on soil protection to address the issue in details. The Law on Land Protection ("Sl. glasnik RS", No. 112/15) was adopted by the National Assembly of the Republic of Serbia and came into force in January 7, 2016. This law regulates land protection, systematic monitoring of the condition and quality of land, measures for recovery, remediation, recultivation, inspection supervision and other important issues for the protection and conservation of land as a natural resource of national interest. In the transitional Decree of the Law on Protection of Land, it is defined that the by-laws enacted on the basis of the authorization referred to in this Law, shall be adopted within one year from the date of

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entry into force of this Law. As well, the Land Protection Plan will be adopted within two years from the date of entry into force of this Law and local self-government units are obliged to make Annual Land Protection Programs within one year from the date of adoption of the Land Protection Plan. In addition, the Government of the Republic of Serbia shall issue a Land Monitoring Program at the level of the state network within one year from the adoption of the act referred to in Article 28, paragraph 2 of this Law. The competent authority of the autonomous province and the local self-government unit shall submit the approval for the land monitoring program at the local network level to the Ministry responsible for environmental protection within six months from the day of the adoption of the Land Monitoring Program at the state network level. Also, the Cadastre of contaminated locations will be established within six months from the date of entry into force of the sub-legal act referred to in Article 34, paragraph 5 of this Law. The content and method of managing a cadastre of contaminated sites, types, contents, forms, as well as the manner and deadlines for submitting the data, shall be defined by a sub-legal act issued in accordance to Article 34, paragraph 5 of the Law on Protection of Land. The cadastre of contaminated sites will be managed by the Environmental Protection Agency. It is important to note that until the adoption of bylaws based on the authorization from the Law on Land Protection, the relevant bylaws adopted on the basis of the Law on Environmental Protection will be applied ("Sl. glasnik RS ", No. 135/04, 36/09, 36 / 09- law, 72/09-dr law and 43/11-US), since the by-law acts prescribed by the Law on Land Protection have not been adopted to date. Also, the Land Protection Plan at the national level has not been adopted yet, as well as the Annual Land Protection Programs at the level of local self-governments. However, the Law on Amendments to the Law on Environmental Protection also focuses on the issue of land protection. Article 9 of the Law on Amendments to the Law on Environmental Protection defines the principle of "polluter pays". If polluter’s activities cause or can cause environmental burdens, he pays compensation for environmental pollution. Polluter, in accordance with regulations, shall bear the total cost of measures to prevent and reduce pollution which include environmental risk and environmental damage costs. This law, as well, prescribes that the protection of land and its sustainable use are achieved through measures of systematic monitoring of soil quality, monitoring indicators for the assessment of the risk of land degradation, as well as the implementation of remediation programs for removing the consequences of contamination and degradation of the land, that can happen naturally or the ones caused by human activities. The regulation adopted by the Government (The Decree on criteria to determine the status of a particularly endangered environment, the status of the endangered environment and determining the priorities for rehabilitation and remediation, " Sl. glasnik RS " No. 22/10) sets out the criteria for determining the status of endangered environment and for setting priorities for rehabilitation and remediation. Based on these criteria, the ministry responsible for environmental protection determines the status of the endangered environment and priorities for rehabilitation and remediation for areas of

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importance for the republic, and the areas of local importance are under the authority of the local self-government unit. We should here mention the Decree on the program for systematic monitoring of soil quality, indicators for assessing the risk of land degradation and the methodology for the development of remediation programs ("Sl. glasnik RS ", No. 88/2010) which define representative contaminated sites on which it was confirmed the presence of hazardous and harmful substances in concentrations that may cause a significant risk to human health and the environment, all caused by human activities. The Decree defines the limit minimum values that represent the values on which the functional properties of the land have been completely achieved, i.e. they indicate the level at which the sustainable land quality and remediation values have been reached, which represent values that indicate that the basic functions of the land are endangered or seriously damaged, and require remedial and other measures. Mentioned values are also defined for PCB content in the soil (limit value - 0.02 mg / kg, remediation value - 1 mg / kg). In the case of remediation values, the sum of the congeners polychlorinated biphenyls is taken into account: PCB 28, 52, 101, 118, 138, 153 and 180, and in the case of limit values, the sum of the same congeners other than PCB 118 is taken into account. Limit and remedial values and values that may indicate significant contamination for organic compounds, depend on the content of organic matter in the soil and their correction is done on the basis of the formulas given in the Decree. In the case of exceeding the limit values, additional surveys are carried out at contaminated sites to determine the degree of pollution and for the improvement of remediation programs. Remediation programs and remediation projects are realized if the average concentration of any hazardous or harmful substance exceeds the remediation value given in Annex 2 of the Decree in more than 100 m³ of water volume in contaminated sites or exceeds the remediation value given in Annex 3 of the Decree in more than 25 m³ volume of land. Also, the Law on Amendments and Amendments to the Law on Environmental Protection stipulates that the obligation of remediation and restitution of the degraded areas will remain on the legal and physical entity for which it is determined that it degrades the environment. This obligation must be implemented in accordance with the rehabilitation and remediation projects. The minister responsible for environmental protection shall prescribe the methodology for the development of these projects (Rulebook on the methodology for the development of the project of rehabilitation and remediation "Sl. glasnik RS ", No. 74/15). Land contamination, in addition to pollution of land due to regular activities, can occur even in the case of a chemical accident. Therefore, this law obliges the operator of the plant that carries out certain activities to draw up the Accident Prevention Policy or the Safety Report and the Accident Protection Plan, all depending on the amount of hazardous materials it uses to

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carry out these activities. It is also obliged to take measures to prevent a chemical accident and to limit the impact of such an accident on the life and health of people and the environment, as specified in those documents. In addition, the operator is obliged to provide, in the Accident Protection Plan, the appropriate measures for cleaning, remediation and recultivation of the environment after a chemical accident. Also, the operator is obliged to inform immediately the Ministry that is competent of environmental protection and the authorities in charge of emergency situations, on the chemical accident. This notice includes, inter alia: circumstances related to chemical accidents, presence of dangerous substance, available data for the assessment of consequences of chemical accident for humans and the environment, as well as notification of taken emergency measures. In the case of a chemical accident, the state of environmental vulnerability can be declared and the public can be informed about the measures taken. However, when pollution in a certain area exceeds the effects of measures being taken, that is, when the environmental capacity is endangered or there is a risk of permanent quality disturbance or damage to the environment, the law also provides for sanitary plans.

The Government adopts a recovery plan when: 1. when the level and extent of environmental degradation exceeds the sanational possibilities of the autonomous province, that is, the local self-government unit;

2. when the responsible entity is unknown, and pollution causes harmful consequences across the borders of the Republic of Serbia;

3. when the responsible entity is outside the jurisdiction of the Republic of Serbia, and the environmental pollution causes harmful consequences on its territory;

4. when environmental pollution threatens an area of exceptional significance for the Republic of Serbia or causes harmful effects on it;

5. when it is necessary to take urgent steps in case of emergency.

If the person responsible for pollution is identified afterwards, the body that has borne the cost of environmental rehabilitation requires reimbursement of costs. If entity responsible for causing the pollution is later determined, the institution which financed the rehabilitation measures shall request appropriate reimbursement. In cases of pollution which exceeds the legally defined emission limit values and other activities leading to the environmental degradation, the polluter is obliged to carry out appropriate recovery plan at its own expense. Action and recovery plans should include the following elements: state, measures, assessment of the impact on human health in the case of an endangered environment, carriers, method, dynamics and resources for the implementation of the plan. Action and sanitary plans

Page 4 of 39 are prepared by the ministry responsible for the environment in cooperation with ministries in charge of the proper area. The autonomous province and local self-government units shall adopt an environmental protection program on their territory, in accordance with the National Program and plans of this Law and their interests and specifics. Two or more local self-government units may adopt a common environmental protection program to reduce negative environmental impacts or for reasons of cost- effectiveness (joint management of waste, wastewater, etc.). From the abovementioned provisions of the law, it can be concluded that the obligations under Article 6, paragraph 1, point (e) of the Stockholm Convention are recognized, although no POPs chemicals or PCBs are specified, and no strategy for the identification of contaminated sites is foreknown.However, it should be emphasized that the ministry responsible for environmental protection is in charge of determining contaminated sites and for prescribing the methodology for the development of remediation plans, and the polluter is obliged to carry out these plans. There is no regulation adopted in the Republic of Serbia, that more precisely identifies and prescribes the conditions and procedure for defining liability for environmental damage caused by the work of the company that is in the process of privatization (or in general in the change of ownership process). In the privatization procedures for the purpose of identifying historical pollution as well as the mismatch between the subjects of privatization and the existing environmental legislation, framework surveys are conducted. However, apart from the formal division of responsibilities in the purchasing procedure, where the state assumes responsibility for historical pollutions, and the buyer assumes the obligation for future compliance with the regulations, no additional legal mechanisms have been elaborated, that would lead to the obligation of remediation of historical pollutions with the provision of funds, from the purchase, that are separately allocated for these works. The Law on the Liability for Environmental damage to transpose the provisions of EU Directive 2004/35 / EC on Environmental Liability is not yet enacted. However, the scheme of this law and the schemes of the subsidiary bylaws were produces with the support of the "PLAC" project in 2015. The full transposition of this Directive was planned for 2017 (Post-screening with the RS Government Paper for Negotiation Chapter 27 - Environment and Climate Change, September 2015), but to date, this law has not been adopted. The purpose of this law is to establish a framework of environmental responsibility, based on the "polluter pays" principle, in order to prevent and eliminate environmental damage. This law should regulate: measures for the prevention and elimination of damage done to the environment; types of environmental damage; procedure for identifying, preventing and removing environmental damage; procedure for determining environmental responsibility;

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subjects of rights and obligations; type, scope and limits of liability; costs for identifying, preventing and removing damage caused to the environment; insurance against damages; public participation in the proceedings and other issues prescribed by the aforementioned Directive. The Law on Agricultural Land, which defines the maximum permitted quantities of hazardous and harmful substances in agricultural land, does not cover PCB. The requisite to create an appropriate legal and institutional framework for attracting private investment in the Republic of Serbia was reflected in the growing need for building new public infrastructure, investments in goods of general interest and efficient provision of services of public importance. In this regard, the Law on Public Private Partnership and Concessions ("Sl. glasnik RS " No. 88/11) was adopted in November 2011, by which the concept of public-private partnership was introduced into the legal system of the Republic of Serbia and allowed the Government, the autonomous province and the local self-government unit to decide on the initiation of the procedure for the implementation of the public-private partnership project. Also, the accompanying bylaws were passed on the basis of this Law, which regulated the provisions of this Law more closely. Public-private partnership, which can be contractual or institutional, represents long-term cooperation between public and private partners in order to provide financing, construction, reconstruction, management or maintenance of infrastructural and other facilities of public interest and provision of services of public interest. Public-private partnership projects should be economically efficient and socially responsible. The value obtained for the invested funds should be higher than the one obtained through the implementation of the "traditional" (budget) investment model. The Government established a Public Private Partnership Commission to provide expert assistance in the implementation of public-private partnership projects and concessions, as an inter-ministerial public body, which operates independently in its work. The application of the public-private partnership model in the processes of waste and wastewater management, as well as the remediation of larger contaminated sites, has already been largely implemented in EU countries, and it has also started in our country (construction of Incinerator of municipal waste and remediation and sanitation of the landfill in Vinca). According to Experience from some Eastern European countries, the adequately treated issue of historical pollution in the processes of change of ownership, significantly influenced the development of the market in the field of remediation of contaminated soil and groundwater, and had far-reaching positive effects on the improvement of the state of the environment in these countries.

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Results of previous tests at selected localities

The results of the project "Improvement of cross-sectoral land management through reduction of pressure on land and land use planning" were used for the purpose of realization of this project task. The three-year project "Improving cross-sectoral land management through reducing land pressure and land use planning" is funded by the Global Environment Fund (GEF) and implemented by the United Nations Environment Program - a software office in Vienna, with close cooperation with the Ministry of Environmental Protection of the Republic of Serbia. The project aspire to reduce the pressure on the land as a natural resource for competitive purposes, to use land in a broad sense, to mitigate the process of land degradation and its remediation in the Republic of Serbia, all through development of instruments and mechanisms for integrated land use management and development of management capacities. The project began in October 2015 and will last until the end of 2018.

The project is supported by the Ministry of Environment, Land and Sea of the Republic of Italy in the form of many years of cooperation with the aim of improving the monitoring of soil quality in industrial zones.

In the process of determining the state and risk assessment of selected abandoned industrial sites, the following regulations were used:

− Law on Environmental Protection ("Sl. Glasnik RS", No. 135/2004, 36/2009, 36/2009 - other law, 72/2009 - other law, 43/2011 - decision US and 14/2016), − Law on Land Protection ("Sl. Glasnik RS ", No. 112/2015), − Rulebook on the methodology for the preparation of the project for rehabilitation and remediation ("Sl. Glasnik RS ", No. 74/2015), − Regulation on criteria to determine the status of the endangered environment and priorities for rehabilitation and remediation ("Sl. Glasnik RS ", No. 22/2010), − Regulation on the program for systematic monitoring of land quality, indicators for assessing the risk of land degradation and the methodology for the development of remediation programs ("Sl. Glasnik RS ", No. 88/2010).

For the needs of the project, visits, data collection and examination of the situation at 37 industrial sites in the Republic of Serbia were carried out, while the sampling of the land was carried out in 32 industrial locations during 2017. The sites were selected on the basis of project criteria and existing data on the existence of contaminated land within industrial complexes, with special attention to abandoned sites. It can be concluded, by visiting and reviewing the situation at the locations, that in most cases it is a matter of historical pollution on complexes of state-owned enterprises, in bankruptcy, in the restructuring or privatization phase. In addition to the stated ownership, fewer companies are privatized, or they are leased premises.

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In each location, several soil samples from several depth (0-10, 0-30, 50cm) were taken, in accordance with field conditions and tenency for samples to be the best representation of the location. Taking soil samples was carried out by the Environmental Protection Agency using the "Instructions for taking soil samples for physical and chemical tests (UP 2.2 / PC 169)" method in the accreditation process. (A brief description of the sampling method is given in Appendix 1).

Land analysis on PCB content was done by the City Public Health Institute of Belgrade using ISO 10382: 2002 method.

In a total of 264 soil samples, the following parameters were examined:

• mechanical and basic chemical properties, • the content of heavy metals and metalloids (Ac, Cd, Cr, Cu, Ni, Pb, Zn, and Hg only in the selected samples), • content of organic pollutants (C10-C40, PCB, PAH, organochlorine pesticides) and • asbestos and cyanides (only in selected samples, in accordance with the analysis plan). The testing of soil samples on PCB content was done in the territory of 32 industrial complexes.

Table 1. Industrial complexes on which PCB content is examined in the soil

FSK – Elemir Smederevo - environment of the ironworks AD ''Toza Marković'' – Kikinda TE - Kostolac ''Radijator'' AD – Zrenjanin HI Župa - Kruševac ''Papirpak'' – Čačak TENT A - Obrenovac Ei – Niš TENT B - Obrenovac FOM – Prokuplje RB - Kolubara Fabrika vagona – Kraljevo TE - Kolubara Magnohrom – Kraljevo Valjaonia bakra -Sevojno Šumadija – Kragujevac HI Zorka - Subotica Zastava kamioni – Kragujevac FOPA(lagune)- Vladičin Han RTB – Bor Surdulica - Mačkatica KTK ''Koža'' – Zaječar PKS Latex - Čačak Prva petoletka – Trstenik Negotin - Prahovo TE Morava – Svilajnac Loznica - HI Viskoza MI – Niš Šabac - Zorka obojena metalurgija FAS – Sombor Kragujevac - 21.Oktobar

Having in mind the scope and detail of the tests, they have the character of preliminary research, and the obtained results can be used for the purposes of determining priorities and further activities. After this phase of the research, for those sites that require rehabilitation and

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remediation, the phase of detailed research, development of characterization plans and preparation of the Rehabilitation and Remediation Project is next.

Detailed studies must include water testing (surface and underground), and detailed soil testing, to quantify the extent of pollution and assess the risk to human health and the environment.

If we observe the number of industrial complexes (locations), where the presence of PCBs is found above the limit values (GV) and above the remediation values (RV), the following can be noted:

− only at the location '' Radijator '' AD Zrenjanin, the concentration of PCB exceeds the RV, the location of the former landfill at the border with agricultural land, at depths of 0- 10cm (sample Z-16/2017), in which PCB 52, PCB 101, PCB 118, PCB 138, PCB 153 were found and at a depth of 50 cm (sample Z-17/2017) in which PCB 52, PCB 101, PCB 118, PCB 138, PCB 153, PCB 180 were found. − In addition to the PCB, the limit value for Cu was exceeded in Z-16/2017, and Z-17/2017 exceeded the limit value for Cr, Cu and Zn. The land on this site belongs to the texture class clay loam and is poor alkaline reaction. − Within 6 industrial complexes (total at 6 locations) PCB concentrations exceeded GV, but not RV: 1. FOM - Prokuplje - Factory of non-ferrous metals - locality " Livnica – pogon otprašivanja " at a depth of 0-10cm (sample Z-32/2017) in which PCB 138 and PCB 153 were found. In addition to PCB, 32/2017 remediation value exceeded Cu and Zn, while the limit value exceeded: As, Cd and Ni. The land on this site belongs to the texture class sandy loam and poor alkaline reaction. 2. Factory of wagon Kraljevo - locality "Deponija- skladište materijala", 3. Zastava trucks – Kragujevac – locality “Ispred škole“, 4. TE Morava – Svilajnac – locality "Zemljište iza deponije otpada", 5. MI – Niš – Mechanical industry Niš – locality "Obod deponije prema ogradi kompleksa", 6. Šabac - Zorka stained metallurgy – locality "Deponija pirita".

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Prioritized list of PCB contaminated site for decontamination

Based on the examination of the state and the implementation of the preliminary risk assessment for human health and the environment (PRA.MS methodology) at the examined locations, as well as insight into the existing information obtained under the project "Proper management and final disposal of PCBs" UNIDO ID: 100313 and GEF ID: 4877, it was decided to collect and present data for the following locations: "Radiator" AD Zrenjanin, FOM - Prokuplje - Factory of Non-ferrous Metals and HI Zupa - Kruševac. Although on site HI Župa - Kruševac PCBs were not found in the soil at sites where the soil was sampled, there is a knowledge that in some parts of the complex PCB is present. Due to the size of the complex that could not be fully investigated by these preliminary research, further consideration of this site is suggested.

For these three sites, further detailed research, risk assessment for human health and the environment is proposed in order to determine the priorities for remediation one of a PCB contaminated site.

For the purposes of developing the Report on PCB contaminated sites, data have been collected for determining the priorities for rehabilitation and remediation and provided in the "Regulation on the establishment of criteria to determine the status of a specially endangered environment, the status of the endangered environment and for setting priorities for rehabilitation and remediation, "Sl. glasnik RS "No. 22/10". The data includes general information about the complex, activity, status, infrastructure, pollution data and pollutants, area characteristics, climatic factors, geological and hydrological characteristics. Reports also include photo documentation, situational plans, and soil sampling reports for each site. The data for the needs of the preparation of this report was provided by the Environmental Protection Agency.

For selected locations, the issues of the ownership structure are specifically scrutinized in order to consider the possibility of involving the interests of investing from several parties during the remediation process.

DETAILED REPORTS ON ANALYSED SITES:

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Site No. 1

RADIJATOR LTD ZRENJANIN

GENERAL INFORMATION ABOUT THE COMPLEX Street: Beogradska bb, Zrenjanin Total area of the complex (m2): 210000 Identificational number: 08062528 Tax identificational number: 101162472

ACTIVITY Manufacture of radiators and boilers for central heating (code of predominant activity 2521)

OWNERSHIP STRUCTURE Since 2007, the majority owner is the Consortium of business entities from the Republic of Croatia, 56.67% of the share capital. Currently, the company is leased.

COMPANY STATUS Active production - production is carried out by the current tenant.

INFRASTRUCTURE ON LOCATION

• The factory has three production facilities. • There are piezometers on the location • Manufacturing is ISO 9001 certified; 14001 and are in the process of obtaining an integrated permit.

Water supplying Connected to the city water supply network, and also, on the site is recorded watered well/pump.

Electrical facilities According to a field trip to this location, it is registrated transformators which are out of use.

Waste water treatment plant Unknown/not recorded by field trip.

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NOTE • Radiator LTD was established in 1932 and operates as a state enterprise since 1946. • Based on field mission in 2016. and 2017. it has been established that the company has a list of hazardous waste.

INFORMATION ON CONTAMINATION

IDENTIFIED DOMINANT CONTAMINANTS According to the expert opinion team engaged on the project and on the basis of the collected documentation, the following polluting substances were identified at the location of this factory: • PCB (originating from waste from transformers which are contaminated with PCBs) • Total hydrocarbons • Heavy metals • Asbestos

CONTAMINATION SOURCES/HAZARDOUS WASTE National pollution source register (NRIZ) Index number Waste description 2014 2015 10 09 03 Slag from the stove 320 t 204 t Cores and casting moulds that have undergone a spill 10 09 08 160 t 102 t process differ from those mentioned in 10 09 07 13 01 11* Synthetic hydraulic oils 3.5 t 4.9 t 16 02 09* Transformers and capacitors containing PCB 0.1 t 0.1 t Mixed waste from construction and demolition 17 09 04 different than those mentioned in 17 09 01 and 17 09 63 t 54 t 02 and 17 09 03 Source: SEPA Air emission (NRIZ): Pollutant (t) 2010 2011 2012 2013 2014 2015

Nitrogen oxides (NOx/NO2) 623.3 4632.5 4761.2 13133.3 11515.6 11515.6

Sulphur oxides (SOx/SO2) 13 785.8 3866.4 4189.6 3623.7 3623.7

Suspended particles (PM10) 2013.5 Source: SEPA

OTHER POLLUTERS AND POTENTIAL POLLUTION SOURCES IN THE SURROUNDING AREA

On the west side from the "Radiator" LTD is the industrial complex of the company “Sinvoz”

Page 12 of 39 which is main activity overhaul of rail vehicles, the northern railway and terminal with railway facilities. On the east side is the complex of SIBA (collection and processing of secondary raw materials). At a distance of 350 m is located NIS Naftagas - Novi Kompleks.

Source: Expert group field mission during 2016. and 2017. CONTAMINATION/SUSPECTED CONTAMINATION OF THE MEDIA

Based on the expert opinion of the team engaged on the project, it is assumed that soil and groundwater is contaminated with PCB, total hydrocarbons and others. CHARACTERISTICS OF THE AREA

CLIMATIC FEATURES OF THE AREA

The climate in the municipality of Zrenjanin is between poorly humid to a dry climate. The ratio between the amount of precipitation and the potential evapotranspiration is 0.81 for Zrenjanin. Precipitation The mean annual rainfall is 583.2 mm. Wind The most dominant wind of this area is the košava. The speed of the košava is very variable. Speed of wind is 5 - 11 m/s but sometimes its reach a speed of 28 m/s. It blows from the southeast or east direction and brings relatively warm and predominantly dry air masses. Another significant wind of this region is the wind from the northwest direction. He regularly brings rain and snow and supplies the entire Vojvodina with sufficient amounts of moisture. The third significant wind is from north. It's a cold and often quite strong wind. Temperature The mean annual air temperature in the city of Zrenjanin is 11.5°C.

Source: Environmental Impact Assessment Study оf the Reconstruction and Upgrading of the Foundry, Prokonsing-Kikinda, Local Ecological Action Plan Zrenjanin HYDROGEOLOGICAL CHARACTERISTICS

The area is characterized by the presence of shallow aquifer, while the groundwater is at a depth of less than 2 m. Source: Geological survey of Serbia HYDROLOGICAL CHARACTERISTICS

The waters from the territory of the city of Zrenjanin gravitates toward the four navigable rivers and the dense channel network of the hydro-system "Danube - Tisa - Danube", which

Page 13 of 39 makes it one of the densest river hubs in Europe. Zrenjanin is formed and lies on the banks of the River Begej, and only ten kilometers from the city flows the river Tisa, the largest tributary of the Danube throughout its course. The Begej river is located at a distance of 2 km from the Radiator factory. About thirty kilometers from Zrenjanin, Tisa river enters in the Danube, which represents the administrative border of the territory of the City. The fourth river in the city territory is Tamis. Source: Environmental Impact Assessment Study оf the Reconstruction and Upgrading of the Foundry, Prokonsing-Kikinda GEOMORPHOLOGICAL CHARACTERISTICS Slope of the terrain: up to 8% Elevation level of the site 80 m AMSL Source: Environmental Impact Assessment Study оf the Reconstruction and Upgrading of the Foundry, Prokonsing-Kikinda

PEDOLOGICAL CHARACTERISTICS According to the pedological map of Vojvodina, the area of the city of Zrenjanin is divided into only two pedological categories: carbonate chernozem on the higher parts of the loess terrace and solonetz - slag in the valley of Begej. However, according to some local pedological studies done for some detailed urban planning solutions and according to the general knowledge of the situation, it is more likely that the surfaces are marked on the map as a solonet, in fact, varieties of chernozem and vertisol. Land use: industrial use while the land south of the factory is used for agricultural purposes. Source: Digital pedological map, Institute of Soil Science - Belgrade, SEPA

GEOLOGICAL CHARACTERISTICS The most mapped units (Basic geological map 1:100 000, sheet: Zrenjanin) • Clays and alevrites, sand and alevrites, loess alevrites and alevritic sand • Eolic sand • Alevrites, sand and clay • Clay and alevrit • Sand and alevrit • Alevrites, sand and clay • Lake sediments in creation Source: Geological Information System of Serbia, Geological survey of Serbia SEISMOLOGICAL CHARACTERISTICS

According to its seismological and geological characteristics, the area of the city and the municipality of Zrenjanin belongs to the area of rare and moderate earthquakes.

Source: Seismological survey of Serbia DESCRIPTION OF SURROUNDING AREA

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PROTECTED NATURAL ASSETS ON NATIONAL/INTERNATIONAL LEVEL OF PROTECTION

At the site and in the surrounding area, there are no rare natural resources of special value (protected) and endangered plant and animal species. At a distance of 5 to 10 km there are the nature reserves: “Carska bara”, Rusanda and “Okanj bara”. Source: SEPA/UN Environment PROTECTED OBJECTS ON NATIONAL/INTERNATIONAL LEVEL OF PROTECTION

Near the factory "Radiator LTD" there is no cultural property protected by law. Source: SEPA/UN Environment SENSITIVE/ VULNERABLE OBJECTS

• Residential zone: 400 m • Agricultural zone: in the immediate vicinity • City swimming pool: 1.5 km Source: SEPA/UN Environment INHABITANTS

According to the 2011 census, there were 123,362 inhabitants live in City of Zrenjanin and 76,511 citizens in the urban area. Out of total urban population there are 40,100 female and 36,411 male citizens with average age for female 41.9 and for male 40.0. Average density in urban area is 396 citizens per km². Source: Statistical office of the Republic of Serbia

PHOTO-DOCUMENTATION AND SPATIAL PLANS

PHOTO-DOCUMENTATION

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URBANISTIC PLANNING There is a plan for detailed regulation of the complex.

SOIL SAMPLING REPORT Field mission soil sampling report

"Radiator" 25. May 2017

City of Zrenjanin

In the frame of UN Environment/GEF project "Enhanced Cross-sectoral Land Management through Land Use Pressure Reduction and Planning", on 25 May 2017, the Serbian Environmental Protection Agency, in cooperation with the Belgrade Public Health Institute has performed soil sampling on the site located in the city of Zrenjanin. Sampling was performed at 3 points and at 2 depths (0-10 cm and 50 cm). Total: 6 composite samples. Only at one site, PCB concentration exceeds the RV and that site is the former landfill at the border with the agricultural land, at the depth of 0-10cm (sample Z-16/2017) in which are found PCB 52, PCB 101, PCB 118, PCB 138, PCB 153 and at a depth of 50 cm (sample Z-17/2017) in which they were

Page 16 of 39 found PCB 52, PCB 101, PCB 118, PCB 138, PCB 153, PCB 180. It is assumed that pollution is caused by waste from transformers contaminated with PCB.

25 May 2017 – City of Zrenjanin

Sampling was carried out on the territory of the factory "Radiator" in Zrenjanin. The company is under bankruptcy and is leased.

Sampling was performed at 3 points and at 2 depths (0-10 cm and 50 cm). Total: 6 composite samples.

Sampling Sampling Description of the sampling Sampling depth identification coordinates site number Z – 14/2017 N 45.367363° Across administrative building 0-10 cm E 20.431615° towards facitity Šinovoz Z - 15/2017 N 45.367363° Across administrative building 50 cm E 20.431615° towards facitity Šinovoz Z – 16/2017 N 45.369036° Former landfill on the border 0-10 cm E 20.436965° with agricultural land Z – 17/2017 N 45.369036° Former landfill on the border 50 cm E 20.436965° with agricultural land Z – 18/2017 N 45.36657° Agricultural land near the 0-10 cm E 20.43598° factory (behind the scales) Z – 19/2017 N 45.36657° Agricultural land near the 50 cm E 20.43598° factory (behind the scales)

Belgrade, 26.05.2017. SEPA: Dr.Dragana Vidojevic

MAP OF SAMPLING POINTS

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PHOTO-DOCUMENTATION FROM SOIL SAMPING SITE

Location where samples Z-16/2017, Z-17/2017 were taken

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Site No. 2

FACTORY OF NON-FERROUS METALS PROKUPLJE

GENERAL INFORMATION ABOUT THE COMPLEX Street: The Factory of non-ferrous metals is located in street Industrijska bb, in the city of Prokuplje, in the area of commercial industrial use and small settlements, about 2 km away from the city center. The Factory of non-ferrous metals in Prokuplje is located in the wider city center and there are two foundries (foundry of non-ferrous metals and lead foundry). Total area of the complex (m2): Total area of cadastral plot 3925/1, Cadastral municipality Prokuplje is 72.659,00. The location is in the III urban zone, occupying an area of about 8.5 ha Identificational number: 07204230 Tax identificational number: 100952260

ACTIVITY The predominant activity is processing of copper and copper alloys.

OWNERSHIP STRUCTURE The non-ferrous metal factory in Prokuplje is an industrial complex in restitution, State Ownership, under control of Bankruptcy Supervision Agency of the Republic of Serbia.

COMPANY STATUS At the complex, the production process is not currently being carried out because the company is in bankruptcy.

INFRASTRUCTURE ON LOCATION In the immediate surrounding of the complex on the western border there is a large city substation and accompanying infrastructure for its needs. The location is equipped with plumbing, sewage and electrical installations connected to the city network, telecommunication installations and access road. All objects are mostly older dates of construction, built mostly during the 70s and 80s of the 20th century, and are in poor condition and unsustainable. Some of the facilities are in a state of use, but certain interventions are needed to bring these objects to a technologically correct state that requires modern trends in the production area, while other facilities are in a much worse

Page 19 of 39 condition, and some are for demolition. Source: Expert team, during field mission in 2016. and 2017. NOTE Factory of non-ferrous metals pouring brass alloy and "new silver". It consists of two casting lines, whereby the casting line no. 1 has a function of a melting furnace, and the casting line no. 2 has a collection furnace. The total number of these two lines is four tones of liquor. In lead foundry, the metal is melted by a batch process. The lead foundry has one casting furnace, the capacity of which is 300 kg of iron. In a single batch, about 150 g of lead dissolution is obtained as a finished product, after which casting is made in the form of plates. The daily capacity of lead foundry is 3 - 4 bars, so the average production is 900 - 1200 kg of cast. In the process of production in the factory of non-ferrous metals and lead foundries, electricity is used as an energy source. As raw materials for melting in casting furnaces in factory of non-ferrous metals and lead foundries, secondary raw materials and pure metal copper are used. Monthly production in foundries is 400 tons of cast material. Source: Assessment on market value FOM Prokuplje Report No. 1586/15 INFORMATION ON CONTAMINATION

CONTAMINATION SOURCES/HAZARDOUS WASTE Within the factory, there are large quantities of residual industrial waste that can lead to pollution: • In open technical pools, size 10x2.5 m, there is water from neutralization (after the melting process of waste brass slag and metal dust), mixed with rainwater of an unknown total quantity; • In open lagoons measuring 50x80 m and 10x2 m there is a waste oil deposit similar to dried grease. The lagoons are 1.2 m deep and are located about 20 m from the river bed of the river Toplice. During 2014, the complex of non-ferrous metals was flooded, so part of the waste water from the neutralization pool, as well as part of the oil waste, came to the coastal land and the watercourse of the river Toplica; • Waste metal dust from the ventilation system of the non-ferrous metal factory is in barrels (an unknown total quantity) in the part of the facility that is secured from

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burglary and theft; • Waste oil emulsion in quantity of 10 tons is located in the open part of the complex, in barrels of 200 liters (17 casks) and in underground pipeline. The quantity of waste oil in two spherical reservoirs and associated pipelines within the facility has not been determined. According to the information obtained from the local local government in 2010 from the subject complex, a quantity of 70 tons of waste oil emulsion was taken care of. The procedure for identifying the types and character of hazardous waste from the previous period (2005) on the complex was: • 10 tons of waste brass slag and dust (hazardous characteristic H11), • 200 kg of waste dust from non-ferrous metal ventilation systems (hazardous characteristic H11). Special note: waste dust from the ventilation system is partially found in the ventilation tubes in the factory, and besides the high gram concentrations of heavy and toxic metals (zinc, copper, cadmium, lead), dust also contains concentrations of polycyclic aromatic hydrocarbons. Source: City of Belgrade, Public Health Institute OTHER POLLUTERS AND POTENTIAL POLLUTION SOURCES IN THE SURROUNDING AREA In the surround environment there are no facilities that can represent potential pollutants.

CONTAMINATION/SUSPECTED CONTAMINATION OF THE MEDIUM Hazardous and dangerous substances that can contaminate soil or groundwater: - heavy metals: zinc (Zn), copper (Cu), nickel (Ni), chromium (Cr), lead (Pb), cadmium (Cd), - total polycyclic aromatic hydrocarbons (total PAH). - PCB

Emissions measurement, which come from the process of melting non-ferrous metals and lead in foundries of the Non-ferrous Metal Factory, has been working for many years in the “Institute for the Quality of Working and Living Environment, 1. May” from Nis and Physical- Chemical Laboratory LTD on Work and Environmental Protection “Belgrade”. Potential sources of pollution of the external atmosphere are gaseous and powder matter, which are generated in the production process and are emitted through the lead-carrier of lead and casting platform emitters and from the boiler room factory of non-ferrous metals. Combustion of fossil fuels in boilers, harmful substances are distinguished as waste gas. The dominant pollutants emitted through the ambient air from the combustion process are primarily carbon monoxide, sulfur dioxide, nitrogen oxides, powder materials and other less- widely-used combustion products. The Regulation on Limit Values of Emissions of Pollutants in the Air ("Official Gazette of the Republic of Serbia", No. 71/2010, 6/2011) regulates the

Page 21 of 39 maximum permissible concentrations of harmful substances discharged into the air.

Source: Market value assessment of FOM Prokuplje Report No. 1586/15, City of Belgrade Public Health Institute CHARACTERISTICS OF THE AREA

CLIMATIC FEATURES OF THE AREA Precipitation The climate of the municipality of Prokuplje is very dry, so the average annual precipitation is only 541 mm. Wind The most common wind blow from southwest direction. Temperature The valley of the Toplica river has a moderate continental climate with distinctive continental characteristics, warm summers and moderately cold winters. For its thermal regime it is characteristic that the negative mean monthly temperature has only January (-0.9°C), while the warmest month is July with 22.0°C. Source: Republic Hydrometeorological Service of Serbia HYDROGEOLOGICAL CHARACTERISTICS The terrain next to the Toplica river is flat and the appearance of underground waters beneath the surface occurs at 8.0 m, with a small estimated flooding point. Source: Republic Hydrometeorological Service of Serbia

HYDROLOGICAL CHARACTERISTICS The main hydrographic artery is the river Toplica, which is in the direction of the west-east. The most important hydrographic objects are the river Toplica with its tributaries, artificial reservoirs Bresnica and Rastovica, mineral springs Viče and mineral water Suva česma. The average flow of river Toplica near Prokuplje is 13 m3/s. Source: Republic Hydrometeorological Service of Serbia GEOMORPHOLOGICAL CHARACTERISTICS The altitude at which the factory is located is 250 m, while the slope of the site is up to 8%.

PEDOLOGICAL CHARACTERISTICS In the pedological cover of the municipality of Prokuplje the dominant soil is vertisol, fertile and highly productive land. It is located on neogenic lake sediments, rich in humus and clay material. Alluvial soils are represented at the alluvial bank of the river Toplica. Land use: industry Source: Digital pedological map, Institute of Soil Science - Belgrade, Serbian Environmental Protection Agency

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GEOLOGICAL CHARACTERISTICS The mapped units (Basic geological map 1:100 000, sheet: Niš) • Marble • Quartzites • Fine gneisses • Liscuit rocks • Leptinolites • Sandstones and conglomerates • Pliocene Source: Geological Information System of Serbia, Geological survey of Serbia SEISMOLOGICAL CHARACTERISTICS The proximity of the Kopaonik earthquake area affects a certain level of hazard from the occurrence of a high intensity earthquake (the maximum possible expected intensity of the earthquake is 6-7º MCS scale). Source: Seismological survey of Serbia

DESCRIPTION OF SURROUNDING AREA

PROTECTED NATURAL ASSETS ON NATIONAL/INTERNATIONAL LEVEL OF PROTECTION

In the planning area, it is not possible to clearly distinguish, nor delineate regions characterized by special plant associations.

PROTECTED OBJECTS ON NATIONAL/INTERNATIONAL LEVEL OF PROTECTION

In the surrounding area, no protected cultural property was recorded.

SENSITIVE/ VULNERABLE OBJECTS • Residential area: 150 m • River Toplica at a distance of 10 - 15 m and at a height difference of 5 - 10 m (waste water from the factory is directly cast in the river Toplica): 250 m • City swimming pool: close proximity • Water supply source: immediate vicinity • Agricultural zones: 150 m • Endangered groundwater Source: SEPA/UN Environment team INHABITANTS According to the 2011 census, there were 44,419 inhabitants in Prokuplje and 27,333 citizens in the urban area. Out of total urban population there are 13,891 female and 13,442 male

Page 23 of 39 citizens with average age for female 40.6 and for male 38.0. Average density in urban area is 1,298 citizens per km². Source: Statistical office of the Republic of Serbia

PHOTO-DOCUMENTATION AND SPATIAL PLANS

PHOTO-DOCUMENTATION

Coordinates: N 43.228768 E 21.574608

Coordinates: N 43.228431 E 21.574838

Coordinates: N 43.228431 E 21.574838 Coordinates: N43.229911 E 21.577098

URBANISTIC PLANNING

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Spatial plan of the municipality of Prokuplje is available on link: http://www.prokuplje.org.rs/images/content/file/Planski%20dokumenti/SPU%20PPO%20Proku plje.pdf.

SOIL SAMPLING REPORT Field mission soil sampling report "Non-ferrous metal factory" 07-08. June 2017 Municipality of Prokuplje In the frame of UN Environment/GEF project "Enhanced Cross-sectoral Land Management through Land Use Pressure Reduction and Planning", on 7-8 June 2017, the Serbian Environmental Protection Agency, in cooperation with the Belgrade Public Health Institute has performed soil sampling on the site located in the Municipality of Prokuplje.

The sampling was carried out in the "Non-ferrous metal factory" in Prokuplje. After the privatization, the factory worked for some time with reduced capacity and soon, due to outstanding debts, it has bankrupted. Sampling was performed at 6, instead of planned 8 sampling points, at 2 depths. Total: 12 composite samples. The entire factory complex is surrounded by Toplica river.

PCB 138 and PCB 153 were found at the site "Foundry - dusting plant", at a depth of 0-10cm (sample Z-32/2017) in quantities exceeding the limit values. It is assumed that PCB pollution originates from industrial waste.

The entire factory complex is surrounded by Toplica river.

Sample Sampling Description of the Sampling depth identification coordinates sampling site number Z – 30/2017 N 43.229020° Near Toplica river 0-10 cm E 21.47780° Z – 31/2017 N 43.229020° Near Toplica river 50 cm E 21.47780° Z – 32/2017 N 43.23034° Iron foundry – section 0-10 cm E 21.57705° dusting Z – 33/2017 N 43.23034° Iron foundry – section 50 cn E 21.57705° dusting Z – 34/2017 N 43.23021° Transformer station 0-10 cm E 21.57548° Z – 35/2017 N 43.23021° Transformer station 50 cm

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E 21.57548° Z – 36/2017 N 43.22851° Next to the reservoir for 0-10 cm E 21.57453° wastewater treatmen Z – 37/2017 N 43.22851° Next to the reservoir for 50 cm E 21.57453° wastewater treatmen Z – 38/2017 N 43.228562° Next to the lagoon 0-10 cm E 21.574859° Z – 39/2017 N 43.228562° Next to the lagoon 50 cm E 21.574859° Z – 40/2017 Land in front of the oiled N 43.228037° tank – the boundaries of 0-10 cm E 21.575629° the complex Z – 41/2017 Land in front of the oiled N 43.228037° tank – the boundaries of 50 cm E 21.575629° the complex

Belgrade, 09.06.2017. SEPA: Dr. Dragana Vidojevic

MAP OF SAMPLING POINTS

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PHOTO-DOCUMENTATION FROM SAMPLING SITE

Location where samples Z-32/2017, Z-33/2017 were taken

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Site No. 3

CHEMICAL INDUSTRY "ŽUPA" LTD KRUŠEVAC

GENERAL INFORMATION ABOUT THE COMPLEX Street: Šandora Petefija bb, Kruševac Total area of the complex (m2): 346000 Identificational number: 07194480 Tax identificational number: 100259243

ACTIVITY The main activity is the production of other basic inorganic chemicals. The production of xanthate is currently being carried out at the complex.

OWNERSHIP STRUCTURE State Ownership, under control of Bankruptcy Supervision Agency. Factory has changed its owners several times.

COMPANY STATUS Part of the company is in active status and part of it is under bankruptcy procedure.

INFRASTRUCTURE ON LOCATION Water supply Water supply is done directly from the water supply network. During the field mission in 2017 the team has not recorded existence of wells. Electrical facilities Unknown existence of electro-installation. Wastewater treatment plants Waste water treatment plants are out of service. There are no piezometers on site.

NOTE • At the end of the "Župa" complex in the area near Rasina River, there is a industrial waste deposit from an electrolysis plant that covers an area of about 150 m². • A large number of chemical accidents from the previous period are associated with the complex, and in connection with the detection of high concentrations of mercury in the

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sediment of the Dedinac stream, within the plant in the system for the acceptance of industrial wastewater, as well as in the coastal zone of the Rasina River. The factory is located near water bodies and residential areas. The state of the environment was never monitored at site, nor the soil tests were performed.

INFORMATION ON CONTAMINATION

IDENTIFIED DOMINANT CONTAMINANTS According to the opinion of expert team engaged on the project and on the basis of the collected documentation, the following polluting substances were identified at the location of this factory: • Xanthate - is obtained by the chemical reaction between carbon disulfide and methanol. Both chemical compounds are toxic, explosive and inflammable and significant from the point of view of endangering the human health and the environment, especially land and groundwater. • Mercury in the sewage canals on the complex - under the influence of atmospheric precipitation and other natural disasters (floods) can reach the environment (groundwater, the Rasina River) • High concentrations of zinc, iron and manganese (in the soil near the Rasina River). • Asbestos • PCB CONTAMINATION SOURCES/HAZARDOUS WASTE The presence of the following substances stored in tanks, installations and other parts of the complex was determined during the field visits of the ecotoxicological unit for chemical accidents by the City of Belgrade Public Health Institute: • 50 t of sodium chloride • about 50 t of potassium chloride • 100 t of sulfuric acid • 524 t of carbon disulphide • About 200 t of methyl ethyl alcohol • 10 t of thioglycolic acid • Smaller quantities of hazardous chemicals Source: Public Health Institute City of Belgrade, during field mission in 2005.

Table 1. Identified hazardous waste at HI "Župa" site Hazardous waste Packaging method (type of Phisical Number Type Amount (t) packaging) state Waste xanthate Soild 90 t Plastic barrel (200 l) 250

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Metal barrel (200 l) 400 A sludge formed by the filtration of zinc and Soild 80 t In an open concrete plateau / magnesium Packaging waste (200 l Soild 1,2 t In an open concrete plateau 60 waste wastes) Sludge from the waste Soild 98 t Plastified bags 1850 water treatment system Underground tank capacity Waste oils liquid 1,7 t 1 2 m3 Pyrite burnt Soild 50 t In an open concrete plateau /

Waste sodium hydroxide Soild 15 t Barrels 200 l 10 Waste Bottles (Chlorine- Soild 5 t In an open concrete plateau / Steel) Waste freon bottles Soild 0,150 t In an open concrete plateau /

Waste bottles Soild 0,4 t In an open concrete plateau /

Waste bottles Soild 0,1 t In an open concrete plateau /

Waste zinc Soild 20 t In bulk /

Source: Republic Inspectorate for Environmental Protection, 2014 Table 2. Type of waste, estimated quantities and removed quantities at HI "Župa" site

Estimated quaintities of Removed quaintities of waste Type of waste waste (tons) (tons)

Waste xanthates 90 19.28

Mud resulting from the filtration of zinc and 80 103.34 magnesium solutions Sludge from the wastewater 98 41.96 treatment system

Waste oils 1.7 0.48

Pyrite 50 106.46

Waste sodium hydroxide 15 18.66

Waste zinc 20 23.06

In total 354.7 313.24 Source: Republic Inspectorate for Environmental Protection, 2014

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• Xanthate: • A large amount of waste xanthate (mixture of carbon disulphide, sodium hydroxide and methyl-ethyl alcohol) in the part of the complex towards to the Rasina River is found in very damaged barrels and tubs for electrolysis. Barrels were found visibly damaged with leaking contents from the barrels and prochromatic tubs whereas characteristic smell on carbon disulfide has felt in the air. During the visit, there were about 650 barrels with waste xanthate found on the concrete plateau. • In addition a large amount of waste xanthate was identified at the complex (estimated at 350 tones), several tens of tons of sludge from the waste water treatment plant. Based on the insights from the field, a part of the urban land between the factory and the Rasina River was flooded in 2002, 2006, 2010 and 2014, and part of hazardous waste (waste xanthate and sludge with heavy metals mercury, cadmium, arsenic, nickel, etc.). has by the flood wave reached the Rasina river and coastal land. • According to the employees, a large amount of hazardous waste that was left behind from the previous period of the factory was stored at the complex. The waste is mainly of chemical origin found dispersed, unpacked, unmarked, of unknown content and in most cases disposed to the land surface. • In this area, according to the employees of the electrolysis plant, between 500 and 700 tons of toxic sludge were deposited. According to the employees, this land belongs to private owners, the subject area is a flood plain and in 20014 as well as part of the "Zupa" complex, it was hit by floods, so that part of the waste probably reached the Rasina River and the coastal area. Source: Based on the Republic Inspectorate for Environmental Protection Report from 2014. and Public Health Institute, City of Belgrade, during field mission in 2016. and 2017.

OTHER POLLUTERS AND POTENTIAL POLLUTION SOURCES IN SURROUNDING AREA

In the immediate vicinity of the factory (northern direction) there is the Cooper tire factory, while the Nis Petrol pump is located across the road (east of the complex). In the direction of the southeast there is a factory for the production of powder and liquid detergents and home chemistry "Henkel" (former "Merima Krusevac").

CONTAMINATION/SUSPECTED CONTAMINATION OF THE ENVIRONMENTAL MEDIA

Soil, surface and groundwater contamination is assumed.

CHARACTERISTICS OF THE AREA

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CLIMATIC FEATURES OF THE AREA In the area of the city a moderate-continental type of climate, with maritime influences is observed. Due to the existence of settlements and therefore also the objects of varying magnitude and height, deformation of the air masses occurs. On the territory of the city, fogs are not frequent, but there is more frequent haze, which are also related to aerosols. Wind blows from the direction of north, northwest, south and east. One of the disadvantages is the occurrence of temperature inversions due to cold and heavy air in the valley. Hill Bagdala is a regulator of climatic phenomena at the local level and in the wider area the regulator is Jastrebac. The average annual air temperature in the Kruševac area (Kruševac meteorological station, based on observations from 1961 to 1990) is 10.8°C. Annual precipitation amounts are relatively small - 647.5 mm. Source: Ministry of Environmental Protection, Environmental impact assessment department HYDROGEOLOGICAL CHARACTERISTICS

According to the possibilities for construction, based on groundwater status (the level of groundwater) the terrain is characterized as a terrain with favorable conditions for construction, with industries "Župa", "Trajal", "Merima" located on this territory.

Source: Ministry of Environmental Protection, Environmental impact assessment department

HYDROLOGICAL CHARACTERISTICS The hydrographic network in the observed area is highly developed and consists of three basins: West-Moravian, Rasinskog and the Ribarska river. River Rasina from the chemical industry complex of “Župa” is located at a distance of 50 m.

Source: Ministry of Environmental Protection, Environmental impact assessment department

GEOMORPHOLOGICAL CHARACTERISTICS The mountain altitude and the remains of the lake plateau reach the average height of 362 m. The three abrasions of the terraces used on the circumference of Krusevac cave represent the trace of this old lake. In addition to the tectonic elements, its further formation was created by further work of lake waves and processes throughout all phases of its appearance and disappearance of the Pannonian Sea and Lakes, and at the same time through the impact of the surface flows, which still persists today. As a result of the work of these forces in the present relief and the disappearance of lakes, two lake terraces were created: • Tall with an unobstructed height of 220-250 m • Lower along the right bank of Rasina, whose height is 180-220 m

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Kruševačka valley is 35 km long and extends from Trstenica suthern in the west to the Mrzenička valley in the east. It is an important valley in the composite valley of the Western Morava. On the rim of the valley there are the mountains of Jastrebac, Kopaonik, Gledićke, Mojsinjske mountain. The old part of Kruševac is on alluvial plane of the West. Morava. The line from the flat plain to the terrace is seen below Lazar's town in the direction of the bus station. Source: Ministry of Environmental Protection, Environmental impact assessment department

PEDOLOGICAL CHARACTERISTICS Soil type: non-calcareous alluvium deposit Land use: industry Source: Digital pedological map, Institute of Soil Science - Belgrade, SEPA

GEOLOGICAL CHARACTERISTICS The oldest rocks represent high-grade crystalline shrines of metamorphism (michaist, gnaiss). In the east, shrines extend to the Mojsinj Mountains, and in the south, they cover Jastrebac with their branches. Quaternary formations include alluvial, delluvial and proluvial genetics, and morphological forms have developed the terraces, the blue and the deluxe slopes, and are found in the valleys of West Morava, Rasina and on the northern slopes of Jastrebac. The most widespread is the lowest and the youngest rectangular terrace and intercepts the area between Kruševac, Zapadna Morava and Rasina, and extends west of Čitluka. Most represented mapped units (Basic geological map: 100 000, sheet: Vrnjci Kruševac) are: • Liskun-quartz-plagioclastic slate • Amygdaloidal biotite-muscovite gnaiss • Clay, sand, gravel limestone • Marl, clay and sands • Conglomerates, sands, marls and limestones • Proluvium • Alluvium Source: Geological Information System of Serbia, Geological survey of Serbia SEISMOLOGICAL CHARACTERISTICS According to the data of "Provisional Seismic Maps of the SFRY" published in December 1982 by the Seismological Institute of SR Serbia in Belgrade, the observed area is located in the zone up to 8 ° of the basic degree of seismic intensity on the MCS scale for the 100-year return period. Source: Seismological survey of Serbia

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DESCRIPTION OF SURROUNDING AREA

PROTECTED NATURAL ASSETS ON NATIONAL/INTERNATIONAL LEVEL OF PROTECTION Rasina river, whose quality of water is damaged due to pollution from the factory “Župa”, flows into the lake Ćelije, which is in the proclamation procedure to be pronounced as an area of exceptional features. Lake Ćelije is also used for the water supply of the town Krusevac. So far, 134 taxon of vascular plants have been published for the flora of the Lake Ćelije, and 278 plant taxons have been identified by the Institute for Nature Protection, which is certainly not the final number. Here is a rare species of Serbia (Anemone blanda), which will be included in the Red Book of Serbia's flora. There are 117 species of birds recorded in the area of the lake, of which 32 species are related to aquatic habitats. Specifically, there is a species Pelecanus crispus, which is listed in the Red List. Two species of ornitho fauna of Ćelije lake are found listed in the European Red List. These are duck brunette Aythya nuroca and Limosa limos. There are 59 species on the list of the lake fauna, which are protected as natural rarities. One of the largest ornithological values of the Ćelije lake is the Ardea cinerea. The fauna of the mammals of Ćelije lake, according to the knowledge so far, makes a total of 31 species. Diversity of amphibians and reptiles in the lake area is exceptionally high. There are 17 species present, of which three are in the list of the Decree on the Protection of Natural Rarities. Source: Ministry of Environmental Protection, Environmental impact assessment department

PROTECTED OBJECTS ON NATIONAL/INTERNATIONAL LEVEL OF PROTECTION In the vicinity of the complex it is not known whether there is a protected object.

SENSITIVE/VULNERABLE OBJECTS AND DISTANCE FROM THE SITE

• River Rasina: 30 - 50 m • Stream Dedinac: nearby • Residential area: 100 m • Agricultural zone: 100 m

INHABITANTS According to the 2011 census, there were 128,752 inhabitants in City of Kruševac, and 58,745 citizens in the urban area. Out of the total urban population there are 30,827 female and 27,918 male citizens with average age of 42.7 for females and 40.1 for males. Average density in urban area is 5,245 citizens per km². Source: Statistical office of the Republic of Serbia

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PHOTO-DOCUMENTATION AND SPATIAL PLANS

PHOTO-DOCUMENTATION

SOIL SAMPLING REPORT Field mission soil sampling report

'' HI Župa '' 4-5. September 2017 City of Kruševac

In the frame of UN Environment/GEF project "Enhanced Cross-sectoral Land Management

Page 35 of 39 through Land Use Pressure Reduction and Planning", on 4-5. September 2017, the Serbian Environmental Protection Agency, in cooperation with the Belgrade Public Health Institute has performed soil sampling on the site of industrial complex „Župa“ located in the city of Kruševac. During this period sampling was performed in the area of ''HI Župa'' on Kruševac in 8 sampling points, and 15 composite samples were taken and 1 sample from the bottom of the depression The results show the exceedance of remediation values for certain heavy metals and limit values for organic hydrocarbons.

Sample Sampling point Description of the identification Sampling depth coordinates sampling site number N 43.59711° From the landfill to the Z – 141/2017 0 – 10 cm E 21.34835 ° river upstrem N 43.59711° From the landfill to the bottom of the Z – 142/2017 E 21.34835 ° river upstrem depression N 43.5974° Z – 143/2017 Next to the landfill 0-10 cm E 21.34895° N 43.5974° Z – 144/2017 Next to the landfill 50 cm E 21.34895° N 43.59779° Behind the fence around Z – 145/2017 0-10 cm E 21.34949° the landfill N 43.59779° Behind the fence around Z – 146/2017 50 cm E 21.34949° the landfill N 43.59627° Channel Dedinac – the Z – 147/2017 0-10 cm E 21.35255° bottom N 43.59627° Channel Dedinac – the Z – 148/2017 50 cm E 21.35255° bottom N 43.59629° Next to wastewater Z 149/2017 0-10 cm E 21.35036° treatment plant N 43.59629° Next to wastewater Z – 150/2017 50 cm E 21.35036° treatment plant N 43.59683° Over the landfill of Z – 151/2017 0-10 cm E 21.34977° hazardous waste N 43.59683° Over the landfill of Z – 152/2017 50 cm E 21.34977° hazardous waste N 43.59327 Z – 153/2017 Next to Zn-Mg slag landfill 0-10 cm E 21.34959°

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N 43.59327 Z – 154/2017 Next to Zn-Mg slag landfill 50 cm E 21.34959° Next to CS₂ and pyrite N 43.59238 Z – 155/2017 burnt dumps that is taken 0-10 cm E 21.35270° away Next to CS₂ and pyrite N 43.59238 Z – 156/2017 burnt dumps that is taken 50 cm E 21.35270° away Belgrade, 06. 09. 2017. SEPA Dr. Dragana Vidojevic

MAP OF SAMPLING POINTS

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PHOTO-DOCUMENTATION FROM SAMPLING SITE

Location where samples Z-155/2017, Z-156/2017 were taken

Location where samples Z-143/2017, Z-144/2017 were taken

Recommendations

1. It is necessary to adopt the Law on liability for damages in the environment to establish the legal framework of environmental liability, according to the "polluter pays" principle, and to prevent and eliminate damage caused by the environment, and that environmental polluters are financially responsible for remediation and prevention of environmental damage. In the context of the management of PCB equipment and waste

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containing PCBs, this law should clearly define the division of responsibilities with the owner of the PCB equipment and waste containing PCB in the cases when due to unsafe handling or disposal of equipment and waste containing PCBs or failure, the release of the PCB in soil or water, and bear the costs of remediation and remediation of soil contaminated with PCBs. . In addition, indirectly, this law could have the effect of establishing a market for the insurance of business entities for environmental damage, thereby further enhancing the financial mechanism for financing the cost of environmental damage, and thereby strengthening the implementation of the public- private model partnerships in the remediation of PCB contaminated sites. 2. It is necessary to Competent authorities prepare all sublegal acts to regulate in detail the provisions of the Law on Soil Protection, as well as making plans for soil monitoring by all the competent state bodies (central, provincial and local governments) in accordance with the provisions of this Law.

3. It is necessary to adopt a sublegal act to regulate more closely the provisions of the Law on Agricultural Soil which defines the maximum allowable quantities of hazardous and harmful substances in agricultural soil due to the existing subordinate legislation is still in force, and was adopted on the basis of the old laws in the field of agricultural soil protection, PCB is not currently included in existed mentioned national legislation related to agricultural soil protection.

Annex 1.

Description of the soil sampling method

Soil sampling method in the vicinity of industrial sites consists in marking the square 25x25 m using a meter and marker sticks. Within the square, soil samples from 6 wells opened in the intersection of the square diagonal dimension 5x5 m are taken.

The samples are taken from the foreseen depth using a manual auger for soil sampling. Taken individual samples are placed in a bucket where they mix well with a mixing spoon, larger clumps should be crushed, stones and plant parts removed, and then the contents poured into the mixing bowl. In this container, the composite sample is mixed once again, divided into four parts, so that the composite sample contains two diagonal pieces from the divided sample. The average weight of the sample is 0.5-1 kg.

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