AEF White Nile Limited

completed

3ENVIRONMENTAL REVIEW SUMMARY (ERS)Project Name AEF: UGANDA: White Nile DairiesRegion Sub Saharan AfricaSector Food Processing Project No. 009057 ________________________________________________________________________1. This project involves the development of an 8,000 liter per day dairy plant at Jinja. The plant will process raw milk into pasteurized whole milk. Milk will be obtained from the sponsor’s own farms (not part of the project or this review) and nearby commercial dairy farmers. Total project cost is estimated at US$926, 937 of which AEF has been approached to provide financing totaling US$250,000. 2. This is a category B project according to IFC’s environmental review procedure because the specific impacts that may result, can be avoided or mitigated by adhering to generally recognized performance standards, guidelines or design criteria. The review of this project consisted of appraising technical and environmental information submitted by the project sponsor. 3. The following potential environmental, social and health and safety issues relating to the existing operation and the proposed project were analyzed:· current and past land use;· sewage treatment/disposal;· liquid and solid waste disposal;· power and water supply;· CFC-free cold storage and air conditioning;· Hygiene/housekeeping; and· Employee health and fire safety measures.The sponsor has presented plans to address these issues and demonstrate that the proposed project will comply with applicable governmental and World Bank requirements. The information provided about how these potential impacts are addressed in the development of the project is summarized in the paragraphs that follow.Land use4. The project is located in an industrial area of Jinja. The diary will be housed in a group of existing buildings comprising seven concrete units and a toilet block, which were constructed in the 1950’s. Until 1998, the buildings were used to house workers and as a vehicle servicing area. The project does not involve loss of natural habitats, nor is there resettlement or other significant adverse social impacts. There are no known objections to the project.Wastewater treatment5. Sanitary and process wastewaters will be disposed of to Jinja’s municipal wastewater treatment system. The municipal plant has both the capability and capacity to treat such effluent. Some pretreatment will be undertaken before discharge. Pre-treatment will comprise a wastewater buffer tank (12.5 cubic metres) to neutralize all effluent. Solid waste disposal6. Solid waste generated from the project comprises foodstuffs from the staff kitchen, waste paper from office use and other sources. This waste will be stored in designated areas, and taken by a company truck to the municipal landfill site. Water/Power supply7. Water is supplied from the Municipal Council, which in turns abstracts it from Lake Victoria. Abstraction does not detract from other users in the vicinity. Drinking water will be tested and will meet WHO drinking water guidelines. The project will derive its power from the National grid. A standby diesel generator will also be installed. The project will install secondary containment structures to any fuel storage. Use of CFC’s8. Refrigeration equipment and air conditioning units will be CFC free.Housekeeping/hygiene9. The plant will ensure that a high standard of hygiene is maintained. The plant will have its own self-automatic cleaning system. The project incorporates a laboratory where milk will be tested and records kept. Employee health and Fire safety.10. Periodic examination of workers will also be undertaken and workers will be supplied with the appropriate equipment. Portable fire extinguishers will be installed throughout the buildings and a fire hose connected to main supply. Extinguishers will be regularly inspected. The fire station is 2km away. Technical Assistance11. Technical assistance will be provided to commercial diary farmers from whom milk is purchased. The Ministry of agriculture and animal industry has extension staff who provide this service. This project also will demonstrate to other local farmer’s good husbandry practices as well as proper handling facilities. 12. 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 Uganda requirements, and World Bank policies, and environmental, health and safety guidelines.13. 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:\CAF\AEF\UAN\whitenilers.docApril 28, 1998 10:20 AM