EIA of Hot Dip Zing Galvanizing Facility - Oryahovo, BG. Executive Summarv. The new Hot Dip Zinc GalvantzingPlant will be the only galvanrzingfacility in NorthernBulgaria. The new galvamzingplant will be installed on the premisesof a 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 North- Westernpart of Bulgaria, and located in the town of Oryahovo - a port on the DanubeRiver, with a customsoffice and a ferry-boatcomplex (see Appendix I.). During the period: October 2006 March 2007, a full Environmental lmpact AssessmentStudy (EIA Study) of the proposedHot Dip Zinc GalvanrzingProject (i.e., the Project) actlities was performed, and a final EIA Report, documenting the EIA processesand results was prepared. The EIA Report was developedin compliancewith the relevant guidelines,set by the OverseasPrivate Investment Corporation(OPIC), the IFC, and the BG Ministry of Environmentand Waters(BG MEW). This EIA Reportwould be submittedto OPIC in June2007. 1. ProjectProponents. A specialentity (i.e., a "SpecialPurpose Corporation", or "SPC") will be incorporated 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 company, which has acquiredland, production,storage and administrativebuildings, the related infrastructure and machinery and equipment located in the town of Oryahovo. "TRE P" EOOD holds clean title over assetsacquired against a considerationbelow the investment cost for setting up a similar plant which contributedto the lower overall cost of the Project. American partner in this project is "GTI Engineering Inc", - an U.S. corporationwith more than 14 years of experiencein manufacturinggalvanrzing equipment. GTI hasbeen selected to supply the Plant'smachinery and equipment. The assistanceof GTI will be continuousas GTI expertswere involved in the processof customrzingthe Plant's galvanizing equipmentin order to optimize perforrnanceand streamlineoperations at the same time. 2. Policy,Statutory and InstitutionalFramework The main law of the Republic of Bulgaria governingthe rules applied in drafting an Environmental Impact Assessment EIA and, which is applied in the implementationof specif,rcprojects (including this Hot Dip GalvanizingFacility 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 establishmentof the Executive Environment Agency, which is governed by the requirementslaid down in its Rules of Organization.The Executive Environment Agency is charged with the task to monitor tl-reenforcement of legal provisions concerning the quality of the environment and to control the protection of the environmentagainst pollution and disturbarrce.Regional Environment and Water Executive Summarv - | EIA of Hot Dilt Zittg Golvanizing Facility - Oryahovo, BG. Inspectorateswere establishedat the sametime with the task to assistthe Executive Agencyin dischargingits dutiesin individual regionswithin Bulgaria. 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 environmentsubject to monitoring and control, and the methods accordingto which those activitiesare conducted,are regulatedby laws defining the requirementsapplicable to the impact on individr-ralcomponents of the environment (seeAppendix 2.1), as well as by the relatedregLrlations and guidelinesadopted by the secondarylegislation of the Councilof Ministers. 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;improvement of wastemanagement and soil protection;preserving biodiversity and protecting the 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 situatedin the industrialzone of the town of Oryahovo,BG, i.e.,about 3 miles away from the town and about 6 miles away from the Danuberiver . The project site is borderedby an empty land to the eastand the south,by a power plant to the west and by an industrialzone to the north,(i.e. the projectsite is not in proximity to residential quarters).The ProjectArea, its surroundingsand the Facility Site of the new plant are presentedrespectively in Exhibit 1.1 and Exhibit 1.2. Existing Assets,Past Operation History and Current Operations. The assetsacquired to 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 TransmissionCompany high-voltage grid, a transforrnerstation on the territory of the Plant and all relatedutilities. At present,"TRE - P" EOOD owns and operatesalso a metal processingfacility. The new hot dip zinc galvantzingfacility will own part of the former metallurgy plant's existing infrastrr,rctnreand a considerablepart of the steelworks manufacturedby the "TRE - P" EOOD metal-working facility will be galvanizedby the new Plant. 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 equipmentunder a customizedconfiguration, manufactured by GTI EngineeringInc. Executive Summarv - 2 EIA of Hot Dip Zing Gqlvanizing Facility - Oryahovo, BG. The infrastructureof the new GalvantzingPlant is presentedin Exhibit 3.2. The plant's infrastructure consists of a Hot Dip Zinc Galvanizing Facility, a Warehousefor Black Steel Worlrs (to be galvunizecl),a Warehousefor Galvanized (finished Steel Works products), 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 galvanrzingplant will consist of steel works, that shall be submittedto galvantzing. The "Out - Flow,s"of the plant will respectively consistof the already galvanizedsteel works. o Technologic, waste Processing and Auxiliary Equipment. Full layouts of the galvanrzingequipment, the auxiliary equipment and the waste treatmentsystems of the new Plant,are shown tn Exhibit3.3. 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 WasteTreatment System of the new galvanizingplant 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 Enclosureuncl Baghouse. 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 inter- facility transportation of the steel works) anclu Scule & Control Equipment,' o ProcessStages and Materials. The componentsof the hot dip zinc galvantzingprocess flow diagram are presentedin 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 processequipment will be laid. GTI Eng. will prepareinstallation drawings and foundationlayout drawings,showing the exact placementof the main technologic equipment and the location of the necessary Executive 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. BaselineConditions in the ProjectArea. Physicul Geography - Climate, Soils, Geology, and Topography. In termsof geographiclocation the project areabelongs to the Moderate-Continental sub-zoneof the European-Continentalzone. The Moderate-Continentalsub-zone is subdividedin 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