Agrisouth (Chile)

completed

- 2 - International Finance CorporationA Member of the World Bank GroupInternational Finance CorporationA Member of the World Bank GroupEnvironmental Review Summary (ERS)Project Name CHILE: AgrisouthRegion Latin America & CaribbeanSector Food & AgribusinessProject No. 004930 February 28, 19971. Agrisouth (Chile) S.A. is developing a vertically-integrated fruit plantation near the town of Linares in central Chile (300 km south of Santiago). The project will include a 750 ha orchard (primarily apples), along with construction of a packing house and cold storage facility.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 this project included information provided by the project sponsor and the technical appraisal and site review completed by Agribusiness Department staff. The following potential environmental, occupational health and safety issues for this project were analyzed:· land use;· air emissions;· liquid effluents;· use of refrigerants:· solid wastes disposal;· pesticide handling and application;· fire prevention and emergency response; and · worker health and safety.Information on how these potential impacts would be addressed in the Agrisouth project is summarized in the following paragraphs.3. The project includes the planting of mainly apple trees (supplemented with some pears and kiwis) on 750 ha of existing agricultural land, previously used for annual crops. The project is located in an existing agricultural area and no protected or ecologically sensitive land is being converted to agricultural use.4. Infrastructure development for the project will consist of a packing plant and cold storage facility, along with roads and drainage and irrigation systems.5. There are no liquid process wastes nor any air emissions from the facilities. There will be very minor amounts of solid waste from the packaging operation which will be disposed of according to local regulations. Domestic sewage and wash water will be disposed of through a septic system. There are no significant noise emissions.6. Pesticides are applied when indicated through monitoring of pest and disease incidence throughout the growing cycle. All pesticides applied are government approved and all conform to the World Bank guideline on pesticide use. Agrisouth provides detailed training in pesticide handling and has stringent safety and handling procedures in effect. Pesticide application follows international practice. All personnel that will be exposed to the pesticides or other chemicals will wear appropriate protective equipment. Agrisouth also uses diphenylamine, a plant growth regulator for the reduction of scald on apples in storage, and this is subject to the same controls as for pesticides. Diphenylamine residues on drenching equipment will be washed into a holding pond on the property where the diphenylamine is readily subject to photodecomposition. There is no discharge to any surface waters off site.7. Ammonia is used as a refrigerant for the cold storage facility. A detection and warning system for ammonia leakage is being installed. Fire prevention systems are installed as per local regulations, and include a closed circuit water system and independent water supply, along with portable fire extinguishers as prescribed.8. Occupational health and safety training is required under Chilean law and is compulsory for all employees. An environment and health and safety officer is being appointed, and a permanent safety committee is established to prepare emergency response plans and ensure appropriate training and practice exercises. 9. 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 and by conducting periodic supervision.10. Based on its review of available information regarding potential environmental impacts and proposed mitigation measures, IFC concludes that the proposed project will meet World Bank environmental, health and safety policies and guidelines and host country requirements.L:\WPEU\PNEAME\CHILE\AGRISTH.ERSFebruary 28, 1997 11:06 AM