AEF Plantation Resources Limited

completed

- 2 - August 26, 1997International Finance CorporationA Member of the World Bank GroupInternational Finance CorporationA Member of the World Bank GroupEnvironmental Review Summary (ERS)Project Name AEF-GHANA: Plantation Resources Ltd. (PRL)Region AfricaSector Coffee, Cocoa, TeaProject No. 8346 August 26, 19971. PRL was set up in 1988 to develop coffee and cocoa plantations. The plantations are located in the Ashanti and Western regions of the country. The proposed project involves the rehabilitation and modernization of three plantations (a total of 1,200 ha), including the installation of a new drip feed irrigation system. PRL projected yield and turnover for the first four years of operation are 28 MT, 85 MT, 245 MT and 750 MT by the year 2001.2. 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:· chemical and fertilizer handling and application;· integrated pest management;· provision of personal protective equipment and employee training;· regular medical check-ups for employees handling chemicals;· chemical container disposal;· source of water supply;· power supply and boiler emissions; and· disposal of solid and liquid wastes, including sewage.Key environmental, health and safety issues in regard to irrigation rehabilitation and construction are as follows:· loss of grazing land and wildlife habitat;· minimum flow maintenance and impacts on downstream users;· restoration of land disturbed during construction; and· general worker safety during construction.The information provided by PRL 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. PRL recently acquired some 3,200 hectares (ha) of coffee plantations under the Government of Ghana’s privatization program, of which 1,200 ha will be rehabilitated. The area being developed for coffee plantation are secondary forests, with scattered trees and shrubs.4. The company has developed a plan for the application of fertilizers, and has contracted a commercial firm of consultants to study and monitor the soils, geology, physical and chemical properties of the land. The application of fertilizers, such as 23:15:5 (N:P:K) will be applied based on the recommendations of Cocoa Research Institute of Ghana (CRIG), thus 70 g/l of fertilizer will be applied to each coffee stand. Fertilizers will only be applied to selected areas. The company will dispose of its empty chemical containers by bury them in designated areas and according to Ghanaian regulations.5. PRL will construct ditches on the boundaries of the estate to control run-off water. Waste water will be analyzed to monitor the level and accumulation of any toxic material. The waste water collected will be recycled and used for irrigation. PRL will also monitor the level of groundwater accumulation of any toxic material.6. PRL will adopt an Integrated Pest Management as recommended by the Ministry of Agriculture of Ghana. The personnel in charge of chemical (fertilizers/pesticides) application and handling will be provided with special protective equipment including boots, long sleeve shirts and trousers, respiratory equipment and spraying goggles. Personnel will be trained in the use and handling of fertilizers/pesticides, fire prevention, and first aid. As fire prevention measure PRL will construct fire belts around the estate, plant teak trees, and will adopt irrigation best practices7. PRL will adopt the following measures to avert any damage to natural habitats; mulch will be retained to preserve the soil moisture and to reduce stormwater run-off and soil erosion, slashing will be done with cutlasses. Vegetation near water bodies will be preserved by ensuring that the plantation of coffee trees is not extended to these areas. The post development restoration of the area will include plantation of nitrogen fixers trees such as Leucaeno leucocephale and Gliricidia sepium. These trees will enhance the microclimate of the coffee plant and will add nitrogen to the soil. 8. Based on its review of available information regarding potential environmental impacts and proposed mitigation measures, IFC concludes that PRL proposed project will meet World Bank environmental, health and safety policies and guidelines and host country requirements.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 PRL and by conducting periodic supervision.