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Environmental and Social Compliance Audit Report KAZ: RG Brands Agribusiness Project

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Environmental and Social Compliance Audit Report KAZ: RG Brands Agribusiness Project Environmental and Social Compliance Audit Report Project Number: 46944 March 2013 KAZ: RG Brands Agribusiness Project Prepared by DG Consulting Ltd for RG Brands This environmental and social compliance audit report is a document of the borrower. The views expressed herein do not necessarily represent those of ADB's Board of Directors, Management, or staff, and may be preliminary in nature. Your attention is directed to the “Term of Use” section of this website. ENVIRONMENTAL AND SOCIAL DUE DILIGENCE REPORT RG BRANDS AGRIBUSINESS PROJECT Final Version 41140_R1_Eng January 2013 DG Consulting Ltd Address: 1. Mitrophane Lagidze Street, 0108, Tbilisi, Georgia; Registered office: 5 Shevardenidze Street, 0177, Tbilisi, Georgia; Reg No 205 280 998; Tel: +995 322 997 497; +995 599 500 778; e-mail: [email protected]; [email protected] 41140_R1_Eng Page 2 of 110 Signatures chapter Prepared by: The present Report is prepared by DG Consulting Ltd Project Manager – David Girgvliani Revision Table chapter Revision # Revised Part of Document Reason of Revision DG Consulting Ltd 41140_R1_Eng Page 3 of 110 TABLE OF CONTENTS Executive Summary ..................................................................................................................................... 8 1 Nature of the Project ........................................................................................................................... 18 1.1 Introduction ............................................................................................................................................ 18 1.2 Description of the Proposed Project ....................................................................................................... 19 2 The Existing Company/Facilities ...................................................................................................... 21 2.1 The RG brands – corporate level ............................................................................................................. 21 2.1.2 Overview of RGB organizational structure ........................................................................ 24 2.2 Aksengir Plant ......................................................................................................................................... 26 2.2.2 Baseline environmental conditions in vicinity of Aksengir plant ..................................... 30 2.3 Kosmis Plant ............................................................................................................................................ 35 2.3.2 Baseline Environmental and Social information for Kosmis Plant ................................. 38 2.4 Other production sites and distribution network ................................................................................... 42 2.4.1 Tealand Plant ......................................................................................................................... 42 2.4.2 Almaty Snack and Food Plant (ASF) .................................................................................. 42 2.4.3 The warehouse infrastructure .............................................................................................. 42 2.5 Potential Impact Area ............................................................................................................................. 43 3 Regulatory Requirements .................................................................................................................. 44 3.1 National Legislation ................................................................................................................................. 44 3.1.1 The Environmental impact assessment ............................................................................. 44 3.1.2 The air emissions .................................................................................................................. 44 3.1.3 The waste management ....................................................................................................... 45 3.1.4 Water extraction or supply ................................................................................................... 45 3.1.5 Wastewater discharge .......................................................................................................... 45 3.2 The ADB requirements applicable to funded projects ............................................................................ 45 4 The RGB Environmental Performance ............................................................................................ 47 4.1 Corporate environmental policies and management ............................................................................. 47 4.1 EHS Organization and Management ....................................................................................................... 49 4.2 Compliance to Regulatory Requirements ............................................................................................... 50 4.2.1 Compliance to National Regulations .................................................................................. 50 4.2.1 Compliance to ADB Requirements ..................................................................................... 51 4.3 Environmental Management at Aksengir Plant ...................................................................................... 52 4.3.1 Atmosphere Air emission ..................................................................................................... 52 4.3.2 Soil pollution ........................................................................................................................... 55 4.3.3 Water and wastewater management .................................................................................. 58 4.3.4 Waste management .............................................................................................................. 60 4.3.5 Housekeeping ........................................................................................................................ 60 DG Consulting Ltd 41140_R1_Eng Page 4 of 110 4.3.6 Sanitary management ........................................................................................................... 62 4.3.1 Pest management ................................................................................................................. 63 4.4 Environmental Management at Kosmis Plant ......................................................................................... 64 4.4.1 Atmosphere air emissions .................................................................................................... 65 4.4.2 Soil pollution ........................................................................................................................... 67 4.4.3 Water and Wastewater Management ................................................................................. 68 4.4.4 Waste management .............................................................................................................. 70 4.4.5 The housekeeping ................................................................................................................. 71 4.4.6 Sanitary management ........................................................................................................... 72 4.4.7 Pest management ................................................................................................................. 73 5 The Company’s Occupational Health and Safety Performance .................................................. 75 5.1 Human Resources Management and Gender ......................................................................................... 75 5.2 Key Occupational Health and Safety Issues ............................................................................................ 76 5.2.1 The Health and safety at facility level ................................................................................. 77 5.2.1 First aid systems .................................................................................................................... 82 5.2.1 Safety records ........................................................................................................................ 82 5.3 Fire Protection ......................................................................................................................................... 83 5.1 Emergency situation action plans ........................................................................................................... 85 6 External Social Performance and Management ............................................................................. 86 6.1 Potentially Affected Communities .......................................................................................................... 86 6.2 Community Health, Safety and Security ................................................................................................. 87 6.3 Involuntary Resettlement & Displacement ............................................................................................. 88 6.4 Impact on Vulnerable Groups ................................................................................................................. 89 6.5 Impact on Cultural Heritage .................................................................................................................... 89 6.6 Social Projects for Potentially Affected Communities............................................................................
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