AEF Transenergy Limited

completed

ENVIRONMENTAL REVIEW SUMMARYProject Name AEF/KENYA: TRANSENERGY LTD. Region Sub-Saharan AfricaSector Transport Project No. 009430 November 25, 1998______________________________________________________________________________1. This project is to be financed through the Africa Enterprise Fund (AEF). Transenergy Limited operates a fleet of 30 prime movers with tanker trailers for the transportation of petroleum products. The Company transports fuel from the Eldoret oil pipeline depot to Uganda and Rwanda. Its business mainly comprises the transport of oil for its sister company, Gapco Uganda, from Kenya to Gapco stations in Uganda and Rwanda. The Company is expanding its operations to meet the increasing demand for fuel products in Uganda and the landlocked countries of Rwanda and Burundi.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 key environmental health and safety issues that were analyzed are as follows: • source of water and power at fleet depot(s); • disposal of liquid and solid wastes including sewage; • spill prevention and secondary containment for aboveground and underground fuel storage tanks; • monitoring for possible discharges from leaking fuel storage tanks; • vehicle emissions; • fire and explosion prevention, life safety and emergency response preparedness;• employee occupational safety and fire response training; • maintenance of vehicle fleet; • recycling and/or proper disposal of used motor oils and grease from vehicle servicing; • CFC-free air conditioning if applicable; and • facility safety and good housekeeping practices.3. IFC has reviewed environmental information supplied by Transenergy, key elements of which are described below.4. Source of water and power at fleet depot(s): The company sources water for domestic and fleet washing purposes from the Eldoret municipal supply. Electricity is drawn from the national grid. The company does not have a standby generator on its premises.5. Disposal of liquid and solid wastes including sewage: Transenergy’s facilities generate minimal amounts of wastewater. Sewage and grey water from cleaning operations aredischarged to the Eldoret municipal sewerage system, which has sufficient capacity to handle the increased amount of wastewater that will be generated by Transenergy’s expanded operations.6. Spill prevention and secondary containment for aboveground and underground fuel storage tanks: Transenergy does not have fuel tanks of any type on its premises. Vehicles are taken to nearby petrol stations for fueling. Petroleum products to be transported are pumped into the vehicles at the oil terminal depots.7. Monitoring for possible discharges from leaking fuel storage tanks: As noted above, Transenergy does not have any fuel storage tanks on its premises. 8. Vehicle emissions: Transenergy uses a planned preventive maintenance system, whereby vehicles are regularly tested and tuned to ensure that emissions are within permissible limits. Vehicle engines are overhauled and serviced on an established schedule, as well as in the event of a problem or malfunction. All servicing and maintenance is done in accordance with manufacturers’ recommendations and using certified spare parts. All vehicles are subject to annual inspections by the Government of Kenya. Vehicles are also subject to emissions tests before they are allowed to be loaded at the oil terminals. 9. Fire and explosion prevention, life safety and emergency response preparedness: Fire extinguishers are provided, in accordance with Government of Kenya fire safety standards in Transenergy’s offices, workshops and in each of its vehicles. First Aid boxes are also provided in the workshop, offices and each of the company’s vehicles. Fire extinguishers are inspected by a licensed supplier on a biannual basis. First Aid boxes are inspected regularly to ensure that they are complete and to replace any items that may have been used. All new employees are given instruction by the Group Workshop Manager regarding the use of fire extinguishers and First Aid boxes in an emergency situation. 10. Employee occupational safety and fire response training: Drivers are given instruction in defensive driving techniques, over and above the training needed to obtain the license required to drive a large transport vehicle. As noted, all employees are trained in the proper use of fire extinguishers, and periodic fire drills are conducted to ensure that staff are able to respond in a timely and effective manner to possible fire emergencies. 11. Maintenance of vehicle fleet: Transenergy has established a comprehensive maintenance schedule that includes weekly, monthly, quarterly and annual repairs and maintenance. In addition to preventing costly breakdowns en route, this approach minimizes the amount of vehicle “down time.” As noted earlier, vehicles are subject to annual safety inspections by Government authorities. 12. Recycling and/or proper disposal of used motor oils and grease from vehicle servicing: Used motor oils and grease removed during vehicle servicing are collected in designated barrels which are periodically taken to vendors who supply oil recycling companies. The vehicle washdown area is equipped with grease traps and oil and water separators, to enable recovery of oils and grease prior to discharge of wastewater. 13. CFC-free air conditioning if applicable: Transenergy’s facilities are not equipped with either cold storage or air conditioning units. 14. Facility safety and good housekeeping practices: As described, Transenergy has equipped its offices and workshops with fire extinguishers and first aid kits. All employees are trained in the use of these items and in workplace safety and good housekeeping practices. Transenergy is in the process of preparing a summary of the environmental, health and safety “good practices” that it employs. This information will be distributed both to other transport companies and to customers, along with a request to share their experiences and practices with the rest of the industry. Transenergy intends to collect and collate the information received into a good practice handbook that will be distributed to transporters and clients.15. Based on its review of available information regarding potential environmental impacts and proposed mitigation measures, IFC concludes that the proposed project is being designed and will be operated to meet pertinent Government of Kenya requirements and all relevant World Bank policies and environmental, health and safety guidelines. 16. 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.S:\AEF Projects\Kenya\Transenergy-9430\ERS.docNovember 25, 1998 1:34 PM