AEF Multi Hauliers (EA) Limited

completed

- 2 - May 26, 1998 International Finance CorporationA Member of the World Bank GroupInternational Finance CorporationA Member of the World Bank GroupEnvironmental Review Summary (ERS)Project Name AEF-KENYA: Multiple Haulers (East Africa) Ltd. (MHEA)Region Sub Saharan-AfricaSector Transportation ServicesProject No. 009058 1. This project involves the refinancing and expansion of MHEA’s fleet of 96 prime movers (tanker and cargo trailers) and 15 trucks. MHEA is East Africa’s largest cross border transporter and is the largest transporter of fuel to Uganda. MHEA is in the process of expanding their operations in Uganda, Burundi, Rwanda and Zaire.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, and the technical appraisal and site review completed by IFC’s Technical and Environment staff. The following potential environmental, health and safety impacts of the project were analyzed:· vehicle maintenance;· cargo screening;· workshop waste disposal;· fuel storage;· general liquid and solid waste disposal;· fire safety and emergency response;· CFC-free cold storage; and· employee training and safety.The information provided by MHEA 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. MHEA will carry the maintenance of the vehicles in accordance to manufacturers recommendations, and will be provided on a monthly basis. The vehicles will be subject to annual Government inspections. Additionally, vehicles under contract with international oil companies will be subject to annual inspection by the oil company. The vehicles air emissions will be controlled by regular calibration of all fuel injection systems by Bosch of Germany.4. The material to be transported include premium motor spirit, auto gasoil, and dual purpose kerosene. The loading and unloading of these material will be under stringent Shell Uganda Limited (SUL) and Total Uganda Limited (TUL) safety and environmental regulations and standards. All transported materials are verified by the customs authorities in Mombassa. All vehicles will be equipped with fire extinguishers and first aid kits.5. MHEA’s workshop facilities include: tires retreading equipment, maintenance workshop, and spare parts store. Used oils will be collected and sold to local oil recycling companies. The vehicle washing area has been built and design with oil and water separators according to local regulations and as required by the oil companies. Sludge will be disposed of at sites managed by the Nairobi City Council. MHEA’s will implement the SUL practice of giving the sludge to staff for the production of bricks.6. Fuel storage tanks are properly fixed to the ground with secondary containment, and are supervised periodically by experts. Refueling of vehicles en-route is provided at service stations. MHEA does not operate cold storage containers.7. MHEA will undergo training in defense driving techniques according to the standards and regulations set by SUL and TUL. The company has a well established emergency and preparedness plan.8. MHEA will comply with SUL and TUL environmental health and safety standards. SUL and TUL are subsidiaries of international oil companies and are governed by the standards set for all global operations.9. 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 MHEA and by conducting periodic supervision.10. Based on its review of available information regarding potential environmental impacts and proposed mitigation measures, IFC concludes that MHEA’s proposed project will meet World Bank environmental, health and safety policies and guidelines and host country requirements.\\StreetTalk\Shared Data@CTENET@IFC\wpeu\rosa\AEF\KENYA\MHEA.ers.docMay 26, 1998 4:15 PM