Acindar Industria Argentina de Aceros S.A.

completed

3September 8, 1998 Environmental Review Summary (ERS)Project Name ARGENTINA: Acindar ExpansionRegion Latin America and CaribbeanSector Steel ManufacturingProject No. 009220 1. Acindar operates two steel plants, one at The Villa Constitution in the Santa Fe district and the second one at La Tablada plant near Buenos Aires. The project involves (i) bridge the imbalances in capacities of the steel making shop and rolling mills at Villa Constitucion, by way of revamps, modernization and additions, (ii) upgrade the environmental standards of the revamped facilities to fully comply with IFC/World Bank guidelines; (iii) close the only hot operation unit at La Tablada (mill #4) and replace with a new bar mill at Villa Constitucion, (iv) upgrade the wire drawing operations and (v) open three new distribution yards.2. This is a category B project according to IFC’s environmental review procedure because specific impacts may result which can be avoided or mitigated by adhering to generally recognized performance standards, guidelines or design criteria. The review of this project consisted of appraising technical and environmental information submitted by the project sponsor and the technical appraisal. The following potential environmental, health and safety impacts of the project were analyzed:· site location; land use and habitat modification at each of the three distribution yards;· air emissions;· water supply;· liquid effluents;· solid waste disposal;· local employment conditions and socioeconomic impacts;· fuel storage and handling;· employee exposure to heat, noise and dust; and· environmental performance of the sponsor’s existing plants.The sponsor has provided information about how these potential impacts will be addressed and demonstrate the proposed project will comply with applicable local regulations and World Bank policies and guidelines. This information, which is summarized in the paragraphs that follow, includes a Corrective Action Plan (CAP) and a proposed monitoring program.3. The site location for the three distribution yards have not been identified yet. Acindar is committed to undertake and provide IFC with details of land acquisition for the new distribution centers and to comply with World Bank policies and guidelines. Land acquisition requiring resettlement will be subject to the preparation of a Resettlement Action Plan to be approved by IFC. In addition, the sponsor is committed to submit the potential impacts and the mitigations actions needed to ensure the distribution centers will comply with World Bank guidelines and policies.4. Acindar plans to install additional dust control equipment and gas analyzers to improve process and operations and to improve control of stack emissions and ambient air quality. Air pollution improvements are planned for the facility which include the sponge iron, billet and slabs, wire rod, skelps and bars, wire and wire ropes and tubular product sections. The particulate emissions for the Villa Constitution and La Tablada sites will both comply with the 50 mg dust/Nm3 World Bank guideline. The SOx and NOx emissions will be controlled to comply with the World Bank guidelines.5. Acindar’s existing wastewater treatment systems handle process wastewater, domestic sewage and contaminated stormwater prior to discharge to surface waters. Planned improvements to these system include installation of an additional new wastewater tre4atmetn system, recirculation of process waters, and installation of continuous monitoring systems. The existing wastewater treatment plant will be expanded to meet the needs of the modernization project. Completion of the above projects will result in all liquid effluents complying with applicable World bank guidelines. 6. The dust collected in all air pollution control devices and the dehydrated sludges from the sedimentation lagoons will be disposed in a secured landfill. This landfill will be lined and equipped with a leachate collection system to prevent contamination of groundwater and will be constructed within the plant boundaries. The domestic residues are collected and properly disposed off following local requirements.7. Acindar has a workers compensation program in place to address any potential employment loss. This program fully complies with the local regulations. The program includes economic benefits, health insurance for one year, and training for future employment relocation. Employment compensation is directed by the human resources of Acindar.8. Acindar has created an Occupational Health and Environmental Department. The sponsor will ensure that the environmental, health and safety measures are up to date and that the employees are properly trained. Personal protective equipment are provided to and required to be used by the employees. Hard hats are provided for all personnel, and dust masks and hearing protection are provided for personnel working in areas with high dust and noise levels, respectively. The employees receive pre-employment and periodic medial check-ups. Qualified personnel is implementing health and safety programs, and Acindar will continue training the employees in occupational health and industrial safety issues. The Sponsor is currently, implementing procedures based on ISO 14000 and BS 8800 to control safe handling, storage and disposal of, or substitution of hazardous materials.9. The sponsor has developed a contingency plan for the event of fire, gas leakage, or transport accidents. As part of Acindar’s environmental management plan, the sponsor has a monitoring program which includes air quality, stack emissions testing, liquid effluent concentrations to be performed periodically.10. The project is anticipated to be completed by 2002. By then all Acindar’s operations will be in compliance with the relevant World Bank guidelines and policies.11. Acindar will annually submit to IFC a monitoring report to ensure continuing progress in implementing the Cap and, subsequently, ongoing environmental compliance during the life of the project. Acindar’s monitoring reports will be based on results obtained from the monitoring program including the following components:· ambient air using the existing five sampling points to monitor particulate;· stack emissions – monitoring of particulate, NOx, SOx and HCl;· liquid effluents –monitoring of the plant outfalls; and· employee exposure – monitoring of workplace noise, dust and toxics through the plant.12. Based on the review of the available information regarding potential environmental impacts and proposed mitigation measures, IFC concludes that the proposed project is being designed to meet Government of Argentina requirements, and World Bank policies, and environmental, health and safety guidelines.13. IFC will monitor Acindar’s ongoing compliance with World Bank policies and guidelines during the life of the project by evaluating environmental performance reports submitted annually to IFC by the sponsor and by conducting periodic site reviews during project supervision.L:\wpeu\JOSEFINA\ARGENTIN\acindar1.ers.doc.rtfSeptember 8, 1998 2:44 PM