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Environmental Guidelines - Table 2

PULP AND PAPER MILLS

Pulp and paper are manufactured from raw materials containing cellulose fibers, generally wood, recycled paper and agriculture residues such as bagasse, ceral straw, bamboo, reeds, esparto grass, jute, flax and sisal. Pulp and paper mills may be constructed as stand-alone or integrated operations. Pulp manufacturing starts with debarking of wood, chipping and processes such as depithing, and cellulosic pulp is manufactured using chemical and mechanical methods.

The most significant environmental issues in the pulp and paper industry result from the pulping and bleaching processes. Elemental chlorine is released from the paper bleaching process. The process also emits sulfur compounds and nitrogen oxides, and it discharges nutrients, organic compounds and metals to liquid effluents. 

The international guidelines for pulp and paper mills presented in this Table are condensed from World Bank Group guidelines set forth in the Pollution Prevention and Abatement Handbook (PPAH) and applicable World Bank Group Operational Policies. New pulp and paper mills and large expansions with a capacity greater than 100 tonnes/day; new mills or expansions producing paper and board having a capacity of 200 air-dried tonnes/day and projects located in or impacting a sensitive area (Annex D) require submission of an Environmental Impact Assessment (EIA - Annex E) describing the project's environmental effects and proposed mitigation measures. The preparation of EIAs for pulp & paper mill projects should include consideration of the potential for the occurrence of indirect impacts to near-by protected forests due to illegal logging that may be facilitated by the added capacity necessary to feed the new or expanded mill.

Further information relative to the guidelines presented in this Table and a description of measures to control emissions and effluents associated with pulp and paper mills are contained in the PPAH of the World Bank Group (1998). The PPAH and the World Bank Group Operational Policies referenced in this Table can be found at: http://www.ifc.org/enviro/EnvSoc/pollution/guidelines.htm. In the case of ambiguity between information in this Table and relevant sections of the PPAH and referenced Operational Policies of the World Bank Group, the guidelines presented within the PPAH and referenced Operational Policies, in effect as of December 18, 2003, will prevail for purposes of Ex-Im Bank's review and its determination of a project's compliance with the applicable international guidelines of the World Bank Group.

AIR QUALITY
STACK EMISSIONS - CONVENTIONAL POLLUTANTS
Concentrations of contaminants emitted from the stacks of significant sources (equivalent heat input > 10 million BTU/hr.) including boilers, furnaces, incinerators, and electrical generating should not be diluted nor exceed the following limits for dry gas at 0⁰ C and 1 atmosphere:

WATER QUALITY
LIQUID EFFLUENTS - Process wastewater, domestic sewage and contaminated stormwater should be treated to meet the following specified limits before being discharged to surface waters. Reduction in the generation of effluents through process modifications and recycling is recommended.

A mixing zone is a limited area or volume of water where initial dilution of a discharge takes place and beyond which applicable water quality criteria should not be exceeded. In the case of a thermal plume, a mixing zone is generally defined as occupying no more than 25% of the cross section of a waterway channel (river, stream, etc.) so as to allow passage of aquatic life and permit other uses of the water. In the case of an open body of water, the mixing zone will be defined on a case-by-case basis taking into account factors such as the existing ecology and in particular, the presence of coral reefs. Where zone is not defined, 100m from the point of discharge will be used.

Note: molecular chlorine should not be used in the process. As a minimum, use chlorine dioxide as a substitute for elemental chlorine in pulp bleaching.

Liquid effluent discharges to a public or private central wastewater treatment system may be subject to pre-treatment requirements. Applicants should provide information from the local authority or private central wastewater treatment company, to confirm that the treatment system has the capacity to adequately treat the project's liquid effluents. For projects potentially causing erosion and sedimentation impacts in receiving waters, a plan should be submitted incorporating measures to mitigate the impacts on water quality and aquatic life.

OTHER ENVIRONMENTAL REQUIREMENTS
Mercury and Chlorine Compounds - The use of mercury compounds as fungicides is banned. Where feasible, the project shall utilize Total Chlorine-free (TCF) or Elemental Chlorine-free (ECF) bleaching systems. In the pulp and paper sector, where the project adopts Total Chlorine-free (TCF) or Elemental Chlorine-free bleaching processes, Ex-Im Bank will provide financial support for its portion of the entire project under the terms of the "Environmental Exports Program", Annex F.

SOLID AND LIQUID NON-HAZARDOUS WASTES
Applicants should provide a waste management plan that incorporates environmentally safe waste management and disposal practices. Recycling or reclamation of materials is encouraged where possible. If recycling or reclamation is not practical, wastes must be disposed of in an environmentally safe manner that incorporates best management practices, as well as in compliance with applicable local laws and regulations.

HAZARDOUS AND TOXIC MATERIALS AND WASTES
Projects that include the handling, storage, treatment, and disposal of hazardous materials must include a management plan for those materials which contain the following elements:

• Existing equipment and systems involving PCBs or CFCs should be phased-out and disposed of in a manner consistent with the requirements of the host country and in accord with the recommendations set forth in the PPAH ("Industrial Management of Hazardous Wastes".)
• Storage and liquid impoundment areas for fuels, raw and in-process materials, solvents, wastes, and finished products should be designed with secondary containment, where required, to prevent the contamination of soil, groundwater and surface waters. 
• Maintenance of all hazardous materials in clearly labeled containers or vessels
• Storage and handling of all hazardous materials appropriate to their hazard characteristics: reactivity; flammability; corrosivity; radioactivity; and toxicity
• Fire prevention systems and secondary containment for storage facilities, where required, to prevent fires or the release of hazardous materials to the environment
• Hazardous wastes must be treated and disposed of in a manner to prevent the contamination of soil, groundwater and surface waters and to avoid the release of toxic substances in the environment.
• A suitable remediation will be developed to address the clean-up, as necessary, of contamination on soil and water as appropriate, for the specific site conditions.

NOISE
The Project boundary or fence line is the commonly accepted location for evaluating Project related noise impacts, although the outer edge of a buffer zone or other uninhabited area may be appropriate in selected cases.

AMBIENT NOISE: Steady-state noise levels from the Project's operation, measured at noise receptors located outside the Project property boundary, should not exceed the following limits:

RESETTLEMENT, INDIGENOUS PEOPLES, CULTURAL PROPERTY (When Applicable)
Project site selection should take into account and minimize to the extent practical adverse impacts to indigenous and other vulnerable people within the project's area of influence resulting from involuntary resettlement, land use changes, population influx due to increased access caused by the project, or effects on culturally significant artifacts or sites.

Where large resettlement or relocation becomes unavoidable, a Resettlement Action Plan (RAP) must be developed and implemented in compliance with host-country laws and international guidelines such as those of the World Bank Group. (See Operational Safeguard Policies of the World Bank: OP 4.20, Indigenous Peoples; OP 4.11, Safeguarding Cultural Property and OD 4.30, Involuntary Resettlement). 

NATURAL HABITATS  (When Applicable)
Project site selection should take into account and minimize to the extent practical impacts to the ecology within the project's area of influence.  Care to avoid/minimize impacts should be demonstrated, particularly in the case of important and critical natural habitats as defined in World Bank Operational Policy 4.04; Natural Habitats.  For projects situated in sensitive locations, the EIA should address the risk of direct and indirect impacts on the environment of the project's area of influence as well as measures to mitigate these impacts.  Guidance in protecting natural habitats is provided in OP 4.04.

ENVIRONMENTAL MANAGEMENT AND MONITORING (When Applicable)
For category A projects, an environmental management and monitoring plan (EMP), as described in Annex E, should be provided that sets forth:  (a) the measures to be taken during the implementation and operation of a project to eliminate or offset adverse environmental impacts, or reduce them to acceptable levels;  (b) the actions needed to implement these measures; and (c) actions required to assess the effectiveness of the mitigation measures employed.  Specific requirements of the EMP will be made on a case-by-case basis according to the project's environmental sensitivities.  The World Bank Operational Policy 4.01 provides guidance with respect to the preparation of an EMP.