AEF Redhill Flowers Limited

completed

Environmental Review Summary (ERS)Project Name Kenya-Redhill Flowers Ltd.Region Sub-Saharan AfricaSector Agribusiness Project No. 008189 March 25, 19971. This project which is being financed through the Africa Enterprise Fund involves the establishment of a 3 ha rose farm on an existing 53 ha farm located at Limuru, 25 km from Nairobi. The project will produce 4.2 million stems per year under greenhouse. Total project cost is estimated at US$1.3 million of which AEF has been approached to provide a loan of US$360,000.2. 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 following key environmental health and safety issues were analyzed:· pesticide handling and application;· integrated pest management (IPM);· water supply;· CFC-free cold storage;· disposal of pesticide containers; and· provision of personal protective equipment and training.The sponsor has submitted a report outlining how the key issues listed above are being addressed, this information is summarized below.3. All pesticides used by the company are permissible as per World Bank guidelines. However several chemicals, Dichlorovous, Fenamiphos and Aldicarb, require special handling; employees will specifically be trained to handle these with appropriate caution. While the company does not currently have any proposed IPM programs, they have committed to explore IPM methods and report back to IFC on these issues in their annual monitoring reports. In order to ensure the correct application levels of chemicals, soil samples will be regularly sent to the Kenya Agricultural Research Institute.5. Water supply is from a reservoir on the Karura River, this reservoir has been in existence at least since 1965, when the farm was acquired. There are several downstream users on the river, however impacts on these groups is not anticipated. The river has never dried up, even during the worst droughts since 1965. Reservoir level and downstream flow rates will be monitored to ensure adequate flow.6. The majority of used pesticide containers will be returned to the chemical suppliers. Those containers not recycled will be punctured and buried on the farm in order to prevent improper re-use.7. The new cold storage units will be CFC-free.8. All staff handling pesticides will be provided with special clothing, respirators and boots. Only permanent employees will be assigned to chemical handling and application duties. Training is provided on safe handling and application procedures by the Production Manager and the chemical suppliers. All employees will receive regular medical checkups and a first aid kit will be located on the farm. In case of emergency situations, there is a clinic located five minutes drive from the farm.9. Based on its review of available information regarding potential environmental impacts and proposed mitigation measures, IFC concludes that the proposed project is being designed to meet Government of Kenya’s requirements, and World Bank policies, and environmental, health and safety guidelines.10. IFC will monitor 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.L:\WPEU\LB\AEF\KENYA\REDHILL.ERSApril 9, 1997 11:39 AM