AEF Green Charcoal

completed

SUMMARY OF PROJECT INFORMATION (SPI)Project Name South Africa:  Green CharcoalRegion Sub-Saharan AfricaSector ManufacturingProject Number 8391Projected Board Date September 30, 1997Company Name Green Charcoal (Pty) LtdTechnical Partner and/or Major ShareholdersThe main project sponsors are two entrepreneurs, Patrick Frampton (41), a professional engineer, and Tessa Fairweather (47), a marketing executive. A group of Eastern Cape based small businessmen from a previously disadvantaged group are also participating in the venture through African Pioneer Investment Holdings (APIH). The driving force behind APIH is the Chairman, Stephen Dondolo (40), a prominent Eastern Cape businessman.Project cost including proposed IFC investmentProject Cost: US$3.0 million equivalentIFC Investment: US$0.87 million (equity and quasi-equity)Location of project and Description of SiteThe project’s facilities are expected to be located at Two Streams, in the Eastern Cape Province.Description of Company and Purpose of ProjectThe project is to build and operate a plant to produce high quality lump charcoal for export, primarily to Europe and the Far East. The output will be designed to meet the German “DIN” standard for charcoal--minimum 80% carbon content--which is widely applied across the European Union. The manufacturing process will use wattle trees as  basic raw material. Wattle is regarded as an invasive and alien species by the Department of Water Resources and Forestry and a programme is already in place to eradicate the tree from water catchment areas. Well over 20 years of feedstock is available within 30 kilometres of the plant. The project will utilize the environmentally  friendly “retort” technology for charcoal production.Project Development ImpactAt peak production Green Charcoal is expected to  employ 78 direct employees at the plant and create indirect jobs for an estimated 650 sub-contractors supplying feedstock. The beneficiation of low grade wood and the earning of foreign exchange are further positive effects of this project. Environmental Categories and IssuesThis is an environmental review Category B project.  Key environmental, health and safety issues include source of raw material; harvesting and transport of raw material; water and power supply, including fuel storage if applicable; disposal of solid wastes; disposal of liquid wastes, including sewage; air emissions; workplace air quality; provision of personal protective equipment and employee health and safety training; and fire protection and emergency response. At IFC''s request, the sponsors have agreed to carry out emissions testing after plant startup has been completed and the facility is in full operation, and have agreed to provide IFC with a copy of the analytical results.  The sponsors have also stated that they will install condensation tunnels, if necessary, to ensure that emissions comply with relevant South African standards and World Bank guidelines.  Although dust in the plant is not expected to be significant, the sponsors have agreed that workers involved in offloading and bagging operations will be provided with face masks, if necessary, to ensure against excessive inhalation of dust or soot.  As part of its community development efforts in the region, Green Charcoal intends, with the assistance of the provincial government, to construct a clinic for use by both its employees and residents in the area. The ERS was submitted to the PIC on May 22, 1997.The  is  from the Public Information Center.Date SPI sent to PIC For Additional Information contact:  Corporate Relations Unit -telephone: (202) 473-7711facsimile: (202) 974-4384Environmental documents for this project are available at http://www.ifc.org and from the World Bank InfoShop (http://www.worldbank.org/html/pic/aboutinfo.html).