AEF Continental Flowers Limited (CONTIFLORA)

completed

Environmental Review Summary (ERS)Project Name Tanzania-Continental Flowers Ltd.Region Sub-Saharan AfricaSector AgribusinessProject No. 007567 May 15, 19961. This project which is being financed through the Africa Enterprise Fund involves the expansion of the operations of an existing rose farm in Arusha from 2 ha to 6.5 ha. The farm was started during 1995, and the project will enable the company to fully utilize its facilities and improve the variety mix to better suit market requirements. The company’s management is already familiar with pesticide practices, and chemical applications will be strictly controlled. The project’s irrigation water will come from two existing boreholes and from the nearby Kijenge River. Total project cost is estimated at US$ 1.48 million, of which AEF has been requested to provide a loan of US$ 0.4 million.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;· CFC-free cold storage;· 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 registered with the Tropical Pesticides Research Institute (TPRI), Ministry of Agriculture. Continental also maintains certification from the Institute concerning pesticide handling and application.4. Integrated Pest Management Continental do not currently have any IPM programs, however they have committed to explore IPM methods and report back to IFC on these issues in their annual monitoring reports.5. Water Supply Water supply is from a combination of bore holes and a well, from a separate acquifer. If necessary the company has obtained the necessary permission to draw water from a nearby stream and from the Kijenge River. Impacts on other users is not anticipated and Continental will monitor the sustainability of water use from these sources.6. Solid and Liquid Waste Management Solid waste involves production of organic wastes from the processing and trimming of the rose bushes and the marketable flowers. This material is composted. Liquid waste which consists of runoff from the greenhouses and the grading hall will be disposed of via a soak pit at the perimeter of the property. Continental will periodically monitor and test groundwater in the project area to determine if any contamination of acquifers is occurring as a result of soak pit disposal of effluent.7. Pesticide Container Management Pesticide containers will be incinerated to prevent improper re-use.8. Health and Safety Staff handling pesticides will be provided with special clothing, gloves, breathing masks, and boots. Training is provided on safe handling and application procedures, this includes awareness programs as enforced by the TPRI with regard to Standard Pesticides practices. Staff receive annual medical examinations from the Chief Government Chemist. To date there is no history of illness among employees handling pesticides.9. Cold Storage existing cold storage units are R-22 based. R-22 is a transitional substance and is currently acceptable under the Montreal Protocol. World Bank guidelines, which Continental has committed to following, require that new cold storage units be CFC-free and that any existing CFC-based units be phased out in accordance with Tanzania’s commitments under the Montreal Protocol.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 Tanzania’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.L:\WPEU\LB\AEF\TANZANIA\CONTINENT.ERS