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Cement Production in Georgia – The Law Is Meant To Be Broken

Authors: Manana Ghoghoberidze, Eto Midelashvili, Dato Dolaberidze

“An integral part of a strong city” – these words are written on the banner of “Heidelberg Cement Georgia” at the entrance of Kaspi. The cement factory, its accompanying noise, and the dusty streets are indeed integral components of this city.

This results from the fact that “Heidelberg Cement Georgia” (“Heidelberg”) operates unlawfully in Kaspi. The company is not adhering to the terms of the environmental impact permits it agreed upon with the government in 2009 and 2017.

While state agencies have occasionally reacted to these breaches, their actions have proven ineffective. Despite facing numerous fines, the company persists in violating the law. This superficial approach of both the state and the company is reflected in the everyday lives of Kaspi residents.

“Heidelberg” and Cement Production in Georgia – the Source of Dust in Kaspi

“Heidelberg” operates a cement plant in Kaspi in the heart of the city. The closest residents live merely 300 meters away, along Parnavazi Street, separated from the factory by a single wall.

“It was raining now, and it has cleared a little. Otherwise, these spruces are all white from the cement. You couldn’t tell the colour, whether it was green or white. Sometimes, when I wash the black laundry and hang them to dry, they are covered in cement. I’ve lost count of how many times I’ve had to rewash them,” says Klava Mamardashvili from the Parnavazi Street IDP settlement.

“We can’t even open our windows. When we wash clothes, we have to beat them with a stick and bring them in quickly before they get covered in dust. Every morning, there’s a layer of dust on our tables. We might not see it all, but we inhale it anyway. We’re left with no choice but to consider relocating; there’s no other solution,” shares another resident of the IDP settlement who wishes to remain anonymous.

Some locals have lived by “Heidelberg” for so long that they have become accustomed to the problems. “I was born and raised here. So, I’m probably used to everything,” says a Kaspi resident who has lived on Parnavazi Street for 60 years. He did not wish to reveal his identity.

Earlier, the entrance of the cement factory was on Parnavazi Street. Locals remember that factory vehicles were moving intensively in front of their houses. Sometimes there were rows of heavy machinery loaded with cement on the street. After the protest of the residents, the company moved the cars from Parnavazi Street and arranged the entrance to the factory on the other side.

Now, the rehabilitation of Parnavazi Street is underway. 510,000 GEL is allocated from the state budget for the works. The mayor of Kaspi, Vakhtang Maisuradze, told us that the company will only supply them with concrete. “Heidelberg” allocates 1,000 m3 of concrete for Parnavazi Street.

“Sidewalks and sewage infrastructure were arranged, asphalt was laid, water was brought in, a new network was installed—the municipality did all of this. Regarding concrete, “Heidelberg” supplies it to us free of charge. We bear no cost for the concrete. This road hadn’t been repaired in 30-40 years, and whether you like it or not, it’s not fair to blame them and their cars. All roads deteriorate over time; even the roads in my village deteriorate,” explained Kaspi Mayor Vakhtang Maisuradze.

Parnavazi Street is not the only area in Kaspi affected by the presence of “Heidelberg.” Residents gathered in the city center highlight that cement trucks leaving the factory must pass through the main square on their way to Igoeti. After loading cement, the trucks aren’t washed within the factory premises; the dirty trucks exit onto the street, dispersing dust into the air.

Despite promising to address the issue last July, “Heidelberg Cement Georgia” has yet to fulfil its commitment to the community. Following vigorous protests by locals, the company signed a memorandum with Kaspi City Hall, pledging to ensure the cleanliness of its heavy equipment. However, nine months have passed since the agreement was made, and there has been no noticeable improvement in the cleanliness of “Heidelberg” vehicles on the streets.

“There hasn’t been a specific timeline provided for fulfilling the terms of this memorandum,” officials at Kaspi City Hall informed us.

Unsurprisingly, “Heidelberg” has been inactive in this regard, as the law does not mandate such actions. The memorandum itself does not serve as a binding agreement for compliance. As stated in the memorandum’s conclusion between Kaspi City Hall and “Heidelberg,” “By signing, the parties merely express their readiness to cooperate.”

When questioned about the cleanliness of their cement trucks, “Heidelberg Cement Georgia” clarified that the vehicles are not owned by them but by contractor companies, which are responsible for maintaining their cleanliness.

“In 2021, the company plans to renew its contractor base. The contracts will include clauses obligating all contractors to regularly clean and wash the cement silos,” “Heidelberg Cement Georgia” informed us.

The company does not currently clean the trucks or the road. At the factory entrance, vehicles move in two directions: some arrive loaded with limestone from Nichbisi, while others depart from the factory carrying ready-made cement. As a result, the surfaces of these vehicles are often covered with limestone or cement dust, which is then dispersed onto the streets.

We observed how air quality fluctuated upon the arrival of “Heidelberg” cement-loaded vehicles. Giorgi Japaridze helped us to measure solid dust particles in the air. He is the founder of the organization “Green Pole” and administrator of the Facebook page “My City is Killing Me.”

Particulate matter (PM) is recognized as a significant air pollutant linked to various health issues, including asthma, bronchitis, cancer, lung damage, eye irritation, and adverse effects on the cardiovascular system, as stated on the website of the National Environment Agency.

According to the National Environment Agency, the permissible concentration of PM particles in the air ranges from 25 to 50 µm/m3 on average. If the concentration exceeds 100 µm/m3, the air quality is classified as very poor.

“Heidelberg Cement Georgia” does not conduct measurements of harmful substance emissions into the air along the routes covered by cement carriers.

Giorgi Japaridze suggests that the issue could be addressed through regular irrigation of the roads: “The problem arises from the cement spilled on the road. If these roads are regularly washed, the problem could be significantly mitigated. To address this, they could invest in a water truck, which costs around 50,000 USD.”

When questioned about road irrigation, “Heidelberg” informed us that the area around the factory and the road are regularly watered. However, during our air quality observation, we noticed that instead of watering the road, a “Heidelberg” employee was using a shovel to disperse cement accumulated on the truck’s body onto the street.

“Heidelberg Cement Georgia” indicated: “We have ordered additional irrigation equipment, including another water truck and so-called “Sweeper” with sweeping capabilities, to minimize road dusting in the future.”

When we inquired with locals about road irrigation by the company, responses varied. Some mentioned that only the road in front of the factory is watered, while others stated it occurs only during summer.

The crucial point here is that there’s no external pressure on the company to take action. According to the activity permits issued to “Heidelberg,” their obligation is limited to irrigating the internal area of the factory, which they currently neglect.

In 2009, the Ministry of Environment Protection and Natural Resources mandated ecological expertise and granted an Environmental Impact Permit to “Heidelberg.” One condition stipulated in these documents was that “Heidelberg” must irrigate areas of the enterprise prone to dust emissions.

In 2016, the Department of Environmental Supervision conducted an inspection of the Kaspi cement plant.

During the inspection of the surrounding area, we encountered a situation where a “Heidelberg” vehicle was seen dumping leftover limestone in the open space behind the facility. Piles of limestone residue were found scattered there.

Their waste management plan explicitly states: “The entire perimeter of the waste site will be fenced off to prevent harmful substances from contaminating the river or soil. Additionally, effective measures will be implemented to shield the waste from atmospheric precipitation and wind, such as constructing sheds or utilizing containers.”

Upon discovering the open dumping of waste on the state’s territory, we promptly contacted the Environmental Patrol and Rapid Response Service hotline. We reported the improper disposal practices of “Heidelberg Cement Georgia” and highlighted the elevated levels of PM particles in the air near the cement factory, exceeding permissible limits. They confirmed that these facts violated the law and assured us that their investigative team would take appropriate action upon confirmation.

Within an hour of our notification, Giorgi Mchedlidze, the head of the Eastern Regional Division of the Department of Environmental Supervision, contacted us. He inquired about the purpose of our call and explained that the Rapid Response Service team lacked the necessary equipment to test air quality and was not trained in conducting such assessments. Therefore, we would need to await the laboratory analysis from the Ministry of Environment Protection.

The following day, a representative from the Ministry’s laboratory contacted us, indicating that if the weather permitted, they would investigate the situation and take appropriate action. However, we have not yet received the inspection report.

Subsequently, Giorgi Chaladze, the environmental protection manager at “Heidelberg,” reached out to us after apparently obtaining our personal cell phone number from the authorities. We described the area where waste was improperly dumped, and Chaladze acknowledged that such disposal was unacceptable. Regarding the issue of PM particle dispersion, he advised us to await the inspection results before further discussion.

Giorgi Chaladze emphasized, “Dumping waste on our premises is strictly prohibited, and I need to verify where and when this occurred. There is indeed a designated limestone dump adjacent to the factory fence. If waste was deposited there, it’s acceptable; however, if it was placed elsewhere, I will address the matter accordingly. We have a contractual agreement with a waste management company, and if they are responsible for the disposal, we will ensure it is removed.”

Upon our clarification that the limestone was not dumped near the factory fence, Chaladze reiterated that such disposal was unacceptable. He requested video evidence to substantiate our claims, which we promptly provided. However, after reviewing the footage, Chaladze wrote us an official email, not agreeing to our arguments. He stated that the location where the limestone was dumped is an open warehouse, which is permitted both in the quarry and within the factory premises.

After a month, we received a call from the Ministry of Environmental Protection laboratory. Paata Akofashvili informed us that they measured the air quality and could not confirm any violations of the law, suggesting that the area might have been watered recently. According to him, they can not conduct systematic checks. We inquired whether they had investigated whether “Heidelberg” was disposing of waste appropriately.

“Heidelberg” Violates Noise Regulations Too

The environmental impact assessment report of “Heidelberg Cement Georgia,” prepared in 2017, states: “Negative effects related to the spread of noise in the residential area are not expected. Violation of the population’s peace practically does not occur because the activity of the production facility is carried out at a distance from residential areas.”

Based on this report, the Ministry of Environmental Protection issued an ecological expertise report granting permission for a new, modernized cement production project to the company. 

Contrary to the claims made by “Heidelberg Cement Georgia” that their operations do not disrupt the peace of residents, the noise emanating from the enterprise, situated outside the city, disturbs not only Kaspi residents but also residents of the villages of Kaspi.

“When the weather is bad, and people tend to stay indoors, the noise starts as early as 7 o’clock in the morning, disrupting everything. It only stops around half past ten, after which it becomes quiet. I’ve been here for the past year, and the noise has been a constant issue,” says Iuri Jananashvili from the village of Gomi, 12 kilometers from the factory.

The noise is also disturbing for residents of Parnavazi Street, adjacent to the factory. Anka Solomonashvili mentions that the noise became unbearable for her, prompting her to move to Tbilisi.

“They plan to address the noise issue by enclosing their equipment where raw materials are ground under a special building to reduce noise. Currently, some of these equipments are in the open air, causing concern among residents and prompting protests. The company intends to encapsulate this area with sound suppression measures, although specific timelines are uncertain”, told us Kaspi mayor Vakhtang Maisuradze. Although he initially declined an interview, we accidentally encountered him on Parnavazi Street and discussed the matter.

Gela Lomiashvili, a resident of the village of Niabi located six kilometers from the cement factory, shared his experience. Despite living in Tbilisi, he visits his country house in Niabi on weekends. However, he finds the noise there so intrusive that it makes his Tbilisi home in Vake seem quieter by comparison.

“I first became aware of this issue in March when I was in quarantine and went to the country house. At night, the noise penetrated even through the metal-plastic windows. I am afraid to visit my own home. Opening the window or stepping onto the balcony is out of the question. Sometimes, it is impossible to go into the garden; you hear a monotonous noise in your ear, resembling the type of sounds used when people are being tortured.”

In June of last year, Gela Lomiashvili was so disturbed by the noise from the cement plant that he contacted the Department of Environmental Supervision. Measurements revealed a noise level of 52.8 decibels, significantly exceeding the legal limit of 40 decibels.

The Kaspi Court reviewed the Ministry’s report and stated that “Heidelberg” exceeded the noise limit by only 7.8 decibels.

This discrepancy arises from the company’s Environmental Impact Permit, which allows nighttime noise levels up to 45 decibels. This permit, issued in 2016, predates technical regulations setting the maximum noise level at 40 decibels. As a result, the Ministry applies special conditions to “Heidelberg Cement Georgia,” while the court follows the environmental impact permit conditions rather than current legislation.

On August 17, 2020, the Kaspi Court fined “Heidelberg Cement Georgia” 7 thousand GEL for noise violations. However, the issue persisted, with factory noise remaining disruptive even seven months later.

In March 2021, the Department of Environmental Supervision conducted noise measurements near the factory, Parnavazi Street, and in villages kilometers away. The results showed noise levels exceeding 43 decibels in both areas, including the village of Gomi, 7 kilometers from Kaspi. Although these levels surpassed legal limits, it’s unlikely the company will face fines. The Court and the Supervision Department, guided by the Environmental Impact Permit conditions, do not consider noise levels exceeding 40 decibels a violation.

“They’re telling me there’s a margin of error of three decibels, but the law doesn’t account for the margin of error. If it exceeds 40 decibels, it should be re-evaluated, they say. There is no mention of margin of error in technical regulations either. It’s straightforward: if the noise level exceeds 40 decibels, it’s considered a violation, without allowances for margin of error.” – says Gela Lomiashvili.

Initially, Lomiashvili suspected that nearby stone quarries were causing noise near his village of Niabi. However, after observing the pattern of noise disturbances, he ruled out the quarries and was surprised to discover “Heidelberg” as the source. Given the reputation of “Heidelberg,” Lomiashvili never expected such blatant disregard for the law.

“When we were here, it was windy, and when the weather settled, revealing a complete disaster. Initially, I didn’t suspect “Heidelberg”; I immediately ruled them out. Being an international brand, I could not fathom such an obvious violation of the law. Hence, my initial complaint didn’t target them.”

“Heidelberg” informed us that they modified the working mode of the noise-causing device in June 2020, restricting its operation to daylight hours. Despite this change, locals continue to report hearing noise from the factory, particularly at night. The company plans to further reduce noise by modernizing the packaging machine this summer.

The fact that “Heidelberg Cement Georgia” would work in violation of noise norms should not have been news to the Ministry of Environment Protection. The modernized cement plant was put into operation without a plan for monitoring noise levels.

On March 17, 2020, the Ministry of Environmental Protection warned “Heidelberg” to submit a noise monitoring plan within three months, but they failed to do so even after seven months. Consequently, the company was fined 15,000 GEL by the court.

Five more months have passed since then, and the company still does not control the level of noise caused by the operation of the enterprise. It turns out that fines are not effective. The company pays the amount but continues to operate, violating the law.

Noise reduction was one of the conditions in the memorandum signed by Kaspi City Hall and “Heidelberg” last summer.

Who owns “Heidelberg Cement Georgia?”

“Heidelberg Cement Georgia” has had various owners over the years, many of whom have had close ties to the government or were members.

Until 2017, Gela Bezhuashvili, a former Minister of Defense and Foreign Affairs, owned the company’s shares. However, in 2017, the shares were acquired by the “Co-Investment Fund,” founded by Bidzina Ivanishvili. 

The “Co-Investment Fund” purchased half of the shares of “Cement Invest B.V.” in 2017 and made a significant investment of 100 million for the modernization of the cement factory that same year.

Subsequently, “Cement Invest B.V.,” along with the Bidzina Ivanishvili Foundation, was acquired by “Hanovel Partners.” Irakli Rukhadze, the founder of “Hanovel Partners,” also serves as the chairman of the Supervisory Board of “Liberty Bank” and the T.V. channel “Imedi.”

“Heidelberg Cement Georgia” was registered in the public registry in 2004 and started operating in 2007. It is wholly owned by “Caucasuscement Holding B.V.,” a company registered in the Netherlands.

How does “Heidelberg Cement Georgia” Contribute to Kaspi?

According to the official website of “Heidelberg Cement Georgia,” the company is guided by three principles of sustainable development: economy, ecology, and social responsibility. However, when asked about the company’s contributions to the residents of Kaspi, locals have difficulty recalling significant support or assistance from the company. According to officials at City Hall, the company may not publicly disclose all the good deeds it does.

According to the city hall, “Heidelberg” has undertaken several initiatives in Kaspi. Dali Korkomashvili, a representative of the public relations department of City Hall, informed us that the company distributes printed bags to schoolchildren at the beginning of the school year, arranges special lighting for children in the park during New Year celebrations, provides one-time assistance to socially disadvantaged families, and cleans roads in highland villages during bad weather, also providing cement to the population. The company reportedly donated inventory to the sports complex two years ago. According to Dali Korkomashvili, the company also built a mini-stadium in the area.

“This is an encouragement. Such a large company as Heidelberg pays attention to children, and not only them.” Our chemistry teacher had a greening campaign in the quarry area, where children were provided with equipment, gloves, and plants, with transportation facilitated by Heidelberg. The endangered yellow-bellied birds inhabit the area, and such initiatives are essential”, shares Nino Niparishvili, a civil education teacher at Kaspi Gymnasium.

She also recalls that Heidelberg purchased a 2,000 GEL projector for the occupation museum at the school upon request. Additionally, city hall officials noted that Heidelberg provided masks to the community during the pandemic. However, masks were necessary items in Kaspi even before the pandemic to protect the population against cement dust.

The article was prepared as part of a long-term investigative journalism study. The training is conducted by “iFact” with the support of the “Friedrich Nauman Foundation for Freedom”.

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