AEF E. Ekesons Brothers Nigeria Ltd.

completed

Environmental Review Summary (ERS)Project Name AEF - NIGERIA: Ekesons Brothers Nigeria LimitedRegion AfricaSector Transport ServicesProject No. 008095 1. This project involves the expansion of Ekensons current 66 unit fleet of buses, through the purchase of 10 new locally assembled Mercedez Benz buses and the construction of Bus Stations in Abuja and Lagos network in Lagos State. Total cost of the project is estimated at US$1,224,000 million of which AEF has been approached to provide a loan of US$385,000.2. 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 review of this project consisted of the appraisal of technical and environmental information submitted by the project sponsor and completed by IFC’s Environment Department staff. The key environmental, health and safety issues considered in this project include:· oil/fuel storage and spill prevention;· disposal and recycling of used fluids and oils; and· employee training and fire protection.The sponsor has presented plans to address these issues and demonstrate that the proposed project will comply with applicable governmental and World Bank requirements. The information provided about how these potential impacts are addressed in the development of the project is summarized in the paragraphs that follow.3. The company has a well established maintenance workshop, used oils and solvents will be stored by placing them separately in safe tanks which then will be collected by a state owned oil company, who will be responsible for recycling the oil and solvents in accordance with local regulations.4. Storage tanks are properly fixed to the ground with secondary containment, and are supervised periodically by experts. The company operates a spare part business, that is fully stocked with components for repairing of the vehicles.5. Ekeson’s corporate Environmental, Health and Safety (EH&S) programs provides the overall policy and direction for EH&S matters. As part of their safety policy, new employees must first be certified medically as being able to operate a vehicle. New employees are also trained by experienced drivers for a period of three months.6. Ekeson’s worker training programs are designed to increase the level of expertise in their employees in the different operations at the company. ANAMCO, a subsidiary of Mercedez Benz in Nigeria organizes training programs for Ekeson’s employees. 7. Fire safety at the company is carried out in compliance with local and World Bank regulations and guidelines. Fire drills including, use of fire fighting equipment and evacuation plans are part of Ekeson’s fire safety program. Ekeson’s also furnishes all of its vehicles with fire fighting equipment at all times. Training and inspection of fire equipment is provided by the Federal and State Fire services.8 IFC will ensure ongoing compliance with World Bank environmental, health and safety policies and guidelines during the life of the project by evaluating monitoring reports submitted annually to IFC by Ekenson and by conducting periodic supervisions.9. 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 Governments of Nigeria and Lagos state requirements, and World Bank policies, and environmental, health and safety guidelines.L:\CAF\AEF\EKESERS.DOC