AEF Bawan Roses (formerly Island Farm)

completed

- 2 - May 31, 1995INTERNATIONAL FINANCE CORPORATIONA Member of the World Bank GroupINTERNATIONAL FINANCE CORPORATIONA Member of the World Bank GroupEnvironmental Review Summary (ERS)Project Name Kenya-Island FarmRegion Sub-Saharan AfricaSector AgribusinessProject No 0051421. The project, which is being financed through the Africa Enterprise Fund, involves the establishment of a horticultural farm at Mangu, near Thika (50 km north of Nairobi), to grow roses for export to the European market. The sponsor plans to develop a portion of its 170 hectare site to grow 3 hectares of roses under plastic greenhouses, for an annual production of 5.7 million stems. A locally-based senior technical advisor will assist in the detailed design and construction of greenhouses, planting, initial training of the production staff, and ongoing advice on production, quality control and marketing. Day-to-day operation of the farm will be conducted by an experienced farm manager and production manager.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. The following potential environmental, health and safety impacts of the project were analyzed: • pesticide handling and application; • worker safety and training; • water supply; and • use of CFC-free refrigerants.The information provided about how these potential impacts are addressed in the development of the proposed project is summarized in the paragraphs that follow.3. Responsibility for pesticide handling and application, including all other chemicals, will reside with the farm manager and supervisors. Island Farm will have in place written guidelines for pesticide and chemical storage, protective clothing and equipment, pesticide and chemical handling, banned substances and introduction of new developments. As the farm’s production will be mainly exported to Europe, practices employed at the farm will be consistent with the requirements of the European Union with respect to banned chemicals and chemical residues.4. All farm workers will be given training relevant to a rose growing operation. Specific attention will be paid to pesticide and chemical handling and application, and the use of personal protective equipment. The sponsor will also seek to exchange information with other growers in order to assure its use of the latest techniques for chemical use and worker protection.5. Irrigation water will be drawn, in part, from dams and a well already onsite which serve a large coffee farm. Additional supplies will be provided by constructing an onsite reservoir which will be supplied by the Karimenu River. Application for withdrawal of 1,000 cubic meters per day from the river has been approved by the Kenyan authorities. No significant effects are anticipated on the environment or other neighboring water users from these withdrawals.6. The project’s refrigeration plant will use the environmentally acceptable R22 refrigerant.7. Based on its review of available information regarding potential environmental impacts and proposed mitigation measures, IFC concludes that the proposed project is being designed to meet Government of Kenya requirements, and World Bank policies, and environmental, health and safety guidelines.8. IFC will monitor Island Farm’s ongoing compliance with World Bank policies and guidelines during the life of the project by evaluating monitoring reports submitted annually to IFC by the sponsor and by conducting periodic site reviews during project supervision.L:\WPEU\LAKHDEEP\AEF\KENYA\ISLAND.ERS