AEF Ceres Estates Limited, Subukia Tea Company Limited

completed

Environmental Review Summary (ERS)Project Name KENYA-Ceres Estates Ltd.Region Sub-Saharan AfricaSector AgribusinessProject No. 007776 August 30, 19961. This project which is being financed through the Africa Enterprise Fund involves the purchase and upgrading of a coffee (350 acres) and tea (250 acres) plantation and related processing facilities. Ceres will also be purchasing coffee and tea from outgrowers, of whom there are approximately 47 individuals. Coffee and tea will be auctioned in country and then exported (30% of the tea will go to the local market). Total project cost is estimated at US$3.557 million of which AEF has been approached to provide total financing of US$907,000.2. 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:- pesticide handling and application;- integrated pest management;- water supply;- power supply;- liquid and solid waste management;- disposal of pesticide containers; and- provision of personal protective equipment and training.The sponsor has submitted a report outlining how the key issues listed above are being addressed, this information is summarized below.3. Pesticide Handling and Application All pesticides used by the company are permissible chemicals as per World Bank guidelines. The company will also supply pesticides to outgrowers. All outgrowers receiving chemicals will be provided with appropriate safety equipment and required to undergo safety training, as outlined below. 4. Integrated Pest Management Ceres estates is located on a plateau surrounded areas of natural vegetation which harbor predator insects. As such, the main insect which must be chemically controlled is Scale. Ceres is currently experimenting with planting Lavender along the border of their tea plantations and roads. This will have the indirect effect of reducing ambient dust levels, which in turn reduces the spread of scale. In addition, Ceres plan to actively protect the natural insect predator habitats.5. Water Supply Water supply, for all purposes, is from a number of bore holes on the plantations. Impacts on off-farm users are not anticipated, however Ceres has committed to monitor this issue and will report back to IFC as part of overall annual monitoring requirements.6. Solid and Liquid Waste Management Waste is primarily composed of organic wastes from the processing of coffee and tea. Currently coffee processing operations discharge acidified water and pulp into soak pits. Problems have been encountered with overflow of these pits and consequent runoff into neighbouring surface waters. Accordingly the company is planning to relocate it’s coffee processing facilities. Solid/pulp waste will then be composted for use on the plantation and runoff to surface water will be eliminated.7. Pesticide Container Management Pesticide containers are thoroughly rinsed and then buried in order to prevent improper re-use.8. Power Supply Power supply is primarily electricity from the national grid. In addition, the tea factory uses furnace oil in the dryer. Based on the capacity of the dryer it is anticipated this will comply with World Bank guidelines on a mass emissions basis.9. Health and Safety Employees handling pesticides and other chemicals will be provided with special clothing, gloves, breathing masks (as appropriate), and rubber boots. Training is provided on safe handling and application procedures. Staff who regularly handle chemicals will be provided with regular medical examinations. A first aid kit is maintained on site and the nearest major medical facilities are located 3 km away in Kabazi. A supply of freshwater is maintained next to the chemical mixing areas and all work crews are accompanied by a supervisor whose responsibilities include oversight regarding safety issues. Outgrowers who are supplied chemicals and pesticides by Ceres will be trained in their proper use and handling and will also be provided with appropriate safety equipment.10. 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’s requirements, and World Bank policies, and environmental, health and safety guidelines.11 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.P:\PIC\KEE0776.DOCAugust 30, 1996 5:07 PM