AEF Carosa Farm (Proprietary) Limited

completed

- 2 - International Finance CorporationA Member of the World Bank GroupInternational Finance CorporationA Member of the World Bank GroupEnvironmental Review Summary (ERS)Project Name South Africa - Carosa FarmRegion Sub-Saharan AfricaSector AgribusinessProject No. 007336 1. This project, which is being financed through the Africa Enterprise Fund, involves the purchase, rehabilitation, and expansion of an existing 21 ha rose farm in Tarlton, Gauteng. The project entails rationalization of product variety, renovation of infrastructure, and expansion of greenhouses from 3 ha to 4.5 ha. Once the rehabilitation is complete Carosa estimates a total annual production of 3.7 million roses, and subsequent to greenhouse expansion (about one year after project startup) annual production will surpass 6 million stems. Carosa will be exporting about 80% of their production to the EC market, with the balance going toward domestic/local sales. 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 following key environmental health and safety issues were analyzed:· chemical handling and application;· integrated pest management;· water supply;· provision of personal protective equipment and employee training; · regular medical checkups for employees handling chemical; and· chemical container disposal.The sponsor has submitted a report outlining how the key issues listed above will be addressed. Measures to be adopted by Carosa are summarized below.3. Only permissible chemicals (including all fungicides, herbicides, and pesticides) will be used. The company will ensure that only necessary chemicals are used in accordance with safe handling and application processes. In order to ensure that appropriate levels of fertilizers and pesticides are applied, soil testing will be conducted by the University of Potchestroom on a regular basis. Once chemicals are applied, empty chemical containers are washed, destroyed and disposed of in accordance with local laws. The company is also exploring the possibility of returning containers to the supplier for reuse.4. Employees applying chemicals will be provided with protective clothing, gloves and shoes. During spraying masks will be used, and after spraying a change of clothing will be required for the respective employees. All employees handling chemicals will receive safety training and regular visits by the Department of Labor and NOSA (national occupational safety authority) will ensure continued compliance with national safety laws. Staff will also be subject to regular medical checkups.5. There are three boreholes with a combined supply capacity of 72 cubic meters per ha per day and a 230,000 l capacity reservoir on the farm. There are no other users on site who will be impacted by this water use. Adjacent farms have there own boreholes and groundwater reserves are adequate for local needs.6. Cold storage facilities will be R-22 based, which is an acceptable refrigerant under South Africa’s obligations to the Montreal Protocol. While the company has not at this stage developed any Integrated Pest Management (IPM) strategies, it is committed to developing an IPM program and will rely on the experience of an expatriate manager to ensure implementation of a program. 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 South Africa requirements, and World Bank policies, and environmental, health and safety guidelines. IFC will monitor 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.