Agrocapital, S.A.

completed

- 2 - June 4, 1996International Finance CorporationA Member of the World Bank GroupInternational Finance CorporationA Member of the World Bank GroupEnvironmental Review Summary (ERS)Project Name Ecuador-Floricola La AlboradaRegion Central AmericaSector AgribusinessProject No. 0076871. Floricola La Alborada (Alborada) operates a rose farm in Ecuador, producing roses for export. The proposed project involves establishment of 20 hectare greenhouse and post harvest processing facilities.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 consisted of information submitted by the project sponsor and the technical appraisal and site review completed by Agribusiness Department staff. The following potential environmental, health, and safety impacts of this project were analyzed:· site location;· air emissions;· wastewater management;· organic waste recycling;· noise emissions;· pesticide storage and safety; and· use of natural insect repellents to limit chemical pesticide usage.Information provided on how these potential impacts would be addressed in the Alborada project is summarized in the paragraphs that follow.3. The size of the site is 35.5 hectare, 20 hectare will be covered with greenhouses, the rest will be used for infrastructure, post-harvest facilities, offices, water reservoirs, etc. The land was peviously used for dairy cattle pastures.4. The facility will only have rose growing and there will be no air emissions from the project.5. There will be no wastewater discharge from the facility. Domestic sewage from the facility will be treated in septic tanks.6. The facility will only produce organic waste from the rose production and post-harvest preparations. The leaves and organic waste will be composted in a system using earth-worms and will be recycled as growth media.7. There will be no significant noise emissions.8. A specially designed and ventilated storage room will be used for pesticide storage. All personnel that will be exposed to the pesticides, or any other chemicals, will wear appropriate protective equipment.9. Natural insect repellents, as garlic and onion extracts will be used to prevent insect attacks by trips, worms, aphids, etc. The use of natural insect repellents will further limit the use of artificial pesticides.10. 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 Floricola La Alborada and by conducting periodic supervision.12. Based on its review of available information regarding potential environmental impacts and proposed mitigation measures, IFC concludes that Floricola La Alborada’s proposed project will meet World Bank environmental, health and safety policies, and guidelines, and host country requirements.L:\WPEU\NIELS\ECUADOR\ALBORADA\ERS.DOCJune 4, 1996 11:13 AM