AEF Kiwa II Industries Limited

completed

-2- November 1, 1996ENVIRONMENTAL REVIEW SUMMARY (ERS)Project Name UGANDA: Kiwa Industries Ltd.Region Sub-Saharan AfricaSector General Manufacturing Project No. 7915 November 1, 19961. This project which is being financed through the Africa Enterprise Fund involves the expansion and diversification of an existing concrete roofing tile manufacturing plant located in Kampala. Kiwa will increase roof tile production and will diversify into colored tile production. The plant will have a capacity 2.4 million tiles per year. Total project cost is estimated at US$500,000 of which AEF has been approached to provide US$250,000 in total financing.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 key environmental, health and safety issues that were considered in this projects include:· liquid and solid waste disposal;· power supply;· exposure to hazardous compounds and heat;· plant ventilation and provision of protective equipment; and· general safety training and fire protection.The information about how these potential impacts are addressed in the development of the proposed project is summarized in the paragraphs that follow.3. Waste Disposal - liquid and solid waste are not generated in the production process. Tiles are made from a mixture of sand, cement, water, and iron oxide pigment. There is no liquid runoff, and any irregular or damaged tiles will be returned to the extruder for reuse. Tiles are naturally cured, without heat.4. Power Supply - On site power will be supplied by the national grid from the hydropower plant located at Jinja. All electrical installations will be installed as per the requirements of the Uganda Electricity Board.5. Hazardous Substances, Ventilation, and Protective Equipment - The tile production method does not involve use of any hazardous compounds or substances. Employees working near the extruder and mixing lines will be provided with protective clothing, gloves and footwear to protect against heat exposure. Protective equipment will also be issued to all employees working in the mixing area. Plant design and installation of exhaust fans and ducts will ensure adequate ventilation. Equipment will be provided with appropriate guards and rails.6. Safety Training and Fire Protection - In addition, Kiwa will require all staff to undergo a training program covering: handling and storage of materials; emergency response; and safe working habits around the plant. All accidents will be logged and recording system and statistics monitored. Employees will also be required to undergo annual training as a refresher. Fire protection measures include training, as part of the training described above, and regular fire safety drills. No volatile organic compounds are used in the process or stored on site and fire extinguishers will be strategically located throughout the plant and will be serviced annually.7. Based on its review of available information regarding potential environmental impacts and proposed mitigation measures, IFC concludes that proposed project is being designed to meet the Government of Uganda’s requirements, and World Bank policies and environmental, health and safety guidelines.8. IFC will monitor Kiwa’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.