AEF V&F Export

completed

- 3 - International Finance CorporationA Member of the World Bank GroupInternational Finance CorporationA Member of the World Bank GroupEnvironmental Review Summary (ERS)Project Name Burundi - Vegetables and Flowers Exports SA.Region Sub-Saharan AfricaSector Agribusiness Project No. 10138 1. The project involves establishment of a greenfield 3 ha rose growing operation located at Gifurgwe on an existing 390 ha Dairy Farm that was privatized by the Government in 1991. Flowers will be grown primarily during the winter season under wood framed greenhouses for export to Europe, Bujumbura Airport is 12 km from the farm.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. The following potential environmental, health and safety impacts of the project were analyzed:· Land use;· Integrated Pest Management (IPM);· Pesticides use and handling;· Power and Water supply;· Wood Supply;· Waste disposal;· CFCs;· Employee safety and training; and· Employee housing.The information provided by V&F 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. The sponsor has confirmed that the project involves no resettlement or displacement of people. All employees for the farm will be sourced from the neighboring villages and will live in their village homes. On site housing will only be provided Management staff. These houses will be equipped with water and power from the national/local grid. The sponsor will ensure that drinking water provided to these houses and all employees will meet WHO standards. 4. Wood for the greenhouse structures is eucalyptus (soft wood), this will be sourced from the Forestry Sevirce, Ministry of Agriculture, who are also responsible for harvesting this wood. 5. All chemicals used by V&F comply with local laws and World Bank/IFC guidelines. Proper safety equipment (e.g., masks, impermeable overalls, gloves, and boots) will be provided to all employees as necessitated by their job functions. Safety training will be provided by the Production Manager, who is a trained Agronomist. The Production Manager will also implement an Integrated Pest Management program. The independent APDF Technical Consultant has also advised the company on IPM methods. V&F will report back to IFC on the IPM implementation. All employees will receive annual medical check-ups and a nurse will be maintained full time on the farm for emergency cases. In the case of employees regularly handling chemicals, medical examinations will be provided twice per year.6. All sewage on the farm is captured in septic tanks which are preriodically emptied by municipal authorities for disposal at designated sites. Liquid effluent generated from greenhouse surface run-off, grading and packing operations, and any other point source where effluent may contain chemicals (e.g., chemical stores and mixing/pump house) will be channelled to dedicated soakpits away from the rivers and surface water. Given that the irrigation and fertigation system is through a drip system, runoff is expected to be minimal, as are excess or waste batches.7. Solid waste generated is comprised of vegetable matter, plastic containers, and general domestic waste. Vegetable matter will be disposed of on the farm; chemical plastic containers will be punctured and disposed of in a pit on the farm (away from housing); all other domestic and plastic waste will be disposed of through municipal services at the landfill at Buterere. 8. The farm sources it’s irrigation water from the Musenyi and Gifurgwe Rivers. Total extraction from these rivers will be 50 cm/day. This represents less than 1% of the total daily flows of each river during the wet and dry seasons. Given that extraction rates are very low and that the farm is approximately 30 km upstream from Lake Tanganyika negative impacts on downstream users are not expected. Nevertheless the sponsor has committed to the following water management program:liase with downstream water users on an ongoing basis;monitor river extraction and irrigation rates to identify any losses;repair any leaks in the existing irrigation system; andmodify extraction from the river as directed by the relevant Water Authorities to ensure water flows to downstream users during extended drought.9. Power is supplied by the grid and diesel storage for backup generator supply will be provided with secondary containment. All cold storage equipment will be CFC-free.10. The sponsor has close links with the local community and will employ the bulk of the workforce from the nearest village, Musenyi. In addition the sponsor is building a staff football pitch and has discussed use of the farm’s canteen for social functions such as weddings and ceremonies. 11. This ERS will be translated into Kirundi, the local language, and it’s availability at the project site and at the Burgomaster’s Office (District Officer) will be advertised in a local paper.12. Based on its review of available information regarding potential environmental impacts and proposed mitigation measures, IFC concludes that V&F’s proposed project will meet World Bank environmental, health and safety policies and guidelines and host country requirements. 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 V&F and by conducting periodic supervision.