AEF Ladoto Ginners Ltd.

completed

- 2 – August 12, 1999 International Finance CorporationA Member of the World Bank GroupInternational Finance CorporationA Member of the World Bank GroupEnvironmental Review Summary (ERS)Project Name Uganda - Ladoto Ginners Ltd.Region Sub-Saharan AfricaSector Textiles Project No. 9839 1.This project involves rehabilitation and upgrading of an existing cotton ginnery located in Eastern Uganda. The ginnery was mismanaged by the previous owners and was shutdown in the early 1980s. It was bought by the sponsors in 1997 and is now undergoing renovation. The project is located in a major cotton growing region and will take advantage of limited ginning capacity, plant capacity will be 24 tpd.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 the 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:- Impacts from past operations;- source of water and power;- air emissions;- treatment and disposal of process effluent and sewage;- ambient dust emissions;- employee exposure to dust, heat, and noise- provision of personal protective equipment; - health and safety training for employees;- fire safety and emergency response; and- hygiene and housekeeping practicesThe information provided by Ladoto about how each of these potential impacts will be addressed in the development of the proposed project is summarized in the paragraphs that follow.3. Impacts from past operations are minimal as the previous plant owners did not engage in any processing operations. The ginnery process does not require water. Water is only required for fire fighting purposes and for drinking and domestic needs. This water will be supplied from an onsite borehole which is not expected to impact other users. Power for operations will initially be provided by generators with secondary containment on fuel storage tanks. Ladoto has requested connection to the grid and municipal authorities have indicated they will provide this. Installation of power lines will be the responsibility of the local/national electricity authority. The ROW for the line is expected to be 4 miles long and follow the Ladoto-Kumi road. To conserve energy and financial resources the sponsor intends to use solar power for lighting during the off season for housing and plant premises.4. The plant operations will generate minimal solid waste and air emissions. Air emissions will be from small capacity diesel generators and will comply with applicable guidelines on a mass emissions basis. Dust generated as part of the ginning process will be captured in a dust chamber. The amount of dust produced is minimal and it is not expected that the chamber will need to be emptied for up to 3 years. When disposed of dust will be bagged and handled by the local council. Cotton seed will be either retained for replanting purposes or sold to local oil mills. Domestic sewage from the plant and employee housing will be stored in septic tanks which will be periodically emptied by the local council. Mixed biodegradable waste from the project will be incinerated on site, and non biodegradable waste will be disposed of at a dumpsite identified by the Palisa Council.5. Employees will be provided with appropriate safety equipment (including face masks, overalls, and gloves). All machinery is equipped with guard rails and shields and is fully automated, therefore employees will not be in close proximity to working parts. Training will be provided to all workers by the Cotton Development Organization on general safety and fire safety. The plant will be equipped with hydrants and a siren system, and all electrical equipment will be earthed. The sponsors intend to make housekeeping a priority, as this reduces the risk of accidents and fire. All areas around the plant will be paved.6. Ladoto do not grow any cotton of their own and no chemicals will be provided by Ladoto to local growers. No new PCB or CFC based equipment will be installed. Any existing CFC based equipment will be phased out as per Uganda’s commitments under the Montreal Protocol.7. This ERS will be made available through the local press and radio and Local Council Chairmen will be given a copy and an oral briefing on the project so that local farmers and residents will be informed about the project.8. Based on its review of available information regarding potential environmental impacts and proposed mitigation measures, IFC concludes that Ladoto’s proposed project will meet World Bank environmental, health and safety policies and guidelines and host country requirements. IFC will monitor ongoing compliance with World Bank environmental, health and safety policies and guidelines during the lifetime of the project by evaluating reports submitted annually to IFC by Ladoto and by conducting periodic supervision.