AEF Société Agro-Industrielle et Commerciale du Cameroun

completed

ENVIRONMENTAL REVIEW SUMMARY Project Name: CAMEROON: AEF - SAICAMRegion : Sub-Saharan AfricaSector: Food and AgribusinessProject No: 0093881. This project, which is being financed through the Africa Enterprise Fund, involves the expansion of SAICAM’s production facilities to increase production from 120 tons per annum (tpa) to 600 tpa. SAICAM is a coffee-processing unit created in 1994 whose main activity is divided in four stages: sorting and dehusking, roasting, milling, and weighing and bagging. It is located in Bafoussam, the Western and coffee production region of Cameroon, with a total production of over 20,000 tons yearly of arabica and robust coffee. The products are collected for processing from local farmers against cash payment, and the company requirements will be 750 tpa. 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 potential environmental, health and safety impacts of the project were analyzed:· Site selection and condition;· Sewage and liquid effluent treatment and disposal;· Solid waste management;· Pesticides handling and application; · Power supply; and · Occupational health and safety.The information provided about how these potential impacts are addressed in the development of the proposed project is summarized in the paragraphs that follow. This information was derived from information supplied by SAICAM.3 Site selection and condition: The existing SAICAM site (1660m2) is located in an industrial development zone on the outskirts of Bafoussam. Expansion of processing facilities will require an additional 1500m2 adjacent to the existing site and which has already been acquired from private owners. The land was not used or occupied by other parties and no economic displacement or resettlement has occurred. SAICAM has obtained planning permission and all other local permits necessary to operate the existing and expanded processing facilities.4 Sewage and liquid effluent treatment and disposal: Water for the site will be drawn from the municipal supply and piped to the site from the adjacent water main and the sponsor has made provision for local people to have access to water from the pipe. Coffee is "dry processed" and the only use of water will be for domestic use, all effluents will be discharged to an on site septic tank. 5 Solid waste management: Solid waste will comprise surplus organic matter from processing activities which will be collected by third parties and used as a soil conditioner. Other forms of solid waste (paper, card etc) will be recycled or disposed of at a municipal landfill. The project will not generate hazardous waste.6 Pesticides handling and application: Coffee producers who supply the sponsor with beans use surplus organic material as mulch and there is very limited use of inorganic fertilizer or other agrochemicals. Coffee production in Cameroon is part of the World Bank funded Programme Nationale de Vulgarisation Agricole and there are strict controls on the type of pesticides that can be used and restrictions on the use of banned or restricted pesticides. 7 Power supply and air emissions: The site will use municipal electricity and there will be no generation of power on site. Butane gas will be used to roast the coffee and emissions from this source will be insignificant (particulate emissions from the roasting process are controlled by cyclones), there are no other significant sources of air emissions and the site will not use CFCs.8 Occupational Health and Safety: The plant will not generate high levels of noise and dust levels are within WBG requirements. The sponsor has installed sufficient fire extinguishers and first aid equipment and provides employees with information and training on emergency response (fire, accident and evacuation). The company has adequate control of hazardous materials (3x12kg butane cylinders) and there is no risk of major accident. The company has formal environment and health and safety policies and receives regular inspection visits from local authorities 9 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 Cameroon’s requirements, and World Bank policies and environmental, health and safety guidelines. In particular, IFC will require annual confirmation:· of pesticide (and other agrochemical) use and management practices as well as details of pests controlled;· that the sponsor continues to operate in compliance with WBG environmental and occupational health and safety guidelines;· that the sponsor continues to meet the recommendations made by the Ministere des Mines de l''Eau et de l''Energie (in relation to the provision of fire extinguishers, first aid facilities, solid waste management and disposal and general site security).10 IFC will monitor SAICAM''s ongoing compliance with World Bank Group 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.