AEF WIP Motors (Pty) Limited

completed

- 2 - International Finance CorporationA Member of the World Bank GroupInternational Finance CorporationA Member of the World Bank GroupEnvironmental Review Summary (ERS)Project Name South Africa-AEF:WIP Motor Holdings (WIP)Region Sub-Saharan AfricaSector AutomotiveProject No 007046 1. This project, which is being financed through the Africa Enterprise Fund, involves the establishment of a car dealership which will provide sales (new and used cars), service, and parts supply. The company anticipates sales of new and used cars to be between 30-50 per month. The dealership was awarded to the Women Investment Portfolio (Pty) Ltd. [WIP] by BMW (South Africa) in support of continued efforts to broaden the base of the South African business community. To ensure the success of the business, WIP has formed a joint venture with Imperial Holdings Ltd. (IHL), an established company with experience in the automotive industry. Total project cost is estimated at US$2.8 million of which AEF has been approached to provide a loan of US$610,000.2. 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:· disposal and recycling of motor fluids and oils;· fuel storage· fire protection; and· general employee and site safety issues.3. The sponsor has submitted a report outlining how the key issues listed above, as well as other potential impacts, will be mitigated. Measures to be adopted by WIP are summarized below.4. The only liquids discharged from the facility will be base oil and water. The WIP workshop floor has a double basin for collecting and separation of oil and water. The basin is connected to an underground storage tank via two separate piping systems. From here fluids are remove by Oilkol, WIP’s designated waste disposal company. Oilkol pays WIP for the used oil (and other fluids-e.g., hydraulic) collected, and recycles, refines and resells the oils. WIP therefore anticipate zero discharge of motor fluids and oils from their premises.5. WIP’s fuel storage tanks were purchased from and installed by British Petroleum (BP). In order to ensure compliance with applicable BP corporate standards, the following inspections were performed by BP:· all tanks and underground pipes were pressure tested to 35 kpa for 1 hour;· filler manhole was upgraded;· dip manhole was upgraded with new seals and cover; and· a new pump was installed.6. As WIP will be storing flammable substances on site, fire fighting equipment and systems will be installed. These include dry chemical extinguishers, a 30x500m fire hose reel in both buildings, and a ceiling sprinkler system. In addition, certain staff will be trained in fire and emergency response as per the guidelines specified by the South Africa’s National Occupational Safety Association (NOSA).7. In order to maintain safe air quality and temperature levels the workshop area will be fitted with ventilation fans. The WIP site was also visited by NOSA officials who made several recommendations concerning the establishment of an appropriate health and safety program. In addition, WIP has been required to, and has committed to, sending several staff to attend NOSA safety courses. Subject to implementation of NOSA’s recommendations, WIP’s operations will be audited by NOSA. WIP anticipates that there will be no significant\hazardous generation of emissions or noise from the site. Safety equipment and training will be provided to all staff as appropriate.8. 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 South Africa requirements, and World Bank policies, and environmental, health and safety guidelines. 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.