AEF Equitea EPZ Company Limited

completed

Environmental Review Summary (ERS)Project Name AEF - Kenya-Equitea Co. Ltd.Region Sub-Saharan AfricaSector AgribusinessProject No. 007366 1. The project, which is being financed through the Africa Enterprise Fund, involves the establishment of a packaging and blending unit for high grade East African teas and their export to Europe. The plant will be located in the Athi River Export Processing Zone (EPZ). The project will add value to teas previously exported in bulk, with an initial production of 205 tons p.a. The total project cost is US$1.2 million of which AEF has been approached 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 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:· waste disposal;· good housekeeping;· good ventilation;· provision of personal protective equipment ;· fire prevention; and· employee general safety and safety training.The information provided about how these potential impacts are addressed in the development of the proposed project is summarized in the paragraphs that follow. As the project only involves blending and packaging, impacts are minimal and primarily relate to safety and housekeeping.3. The only liquid waste generated will be sewage and sanitary waste. This waste will be treated at the central Athi River EPZ treatment facility. Solid waste, consisting of fugitive tea and minimal packaging material will be disposed of in accordance with local requirements.4. The plant will not utilize any cold storage nor will any PCBs or other hazardous substances be present on site. Adequate ventilation is naturally provided in building/warehouse design. Protective equipment will be provided to employees as necessary and regular medical exams will be provided as per Kenyan regulations. All machinery meets EC requirements in terms of safety and noise levels. Tea is not prone to spontaneous combustion and no fuel will be stored on site, fire extinguishers will be installed in strategic points as necessary.5. Based on its review of available information regarding potential environmental impacts and proposed mitigation measures, IFC concludes that the impacts associated with this project are minimal and that the proposed project is being designed to meet the Government of Kenya’s requirements, and World Bank policies and environmental, health and safety guidelines.6. IFC will monitor Equitea’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.lb\aef\kenya\equitea.ers