All Asia Capital & Trust

completed

ENVIRONMENTAL REVIEW SUMMARYProject Name BOTSWANA: Northern Textiles (Pty) Ltd. (Nortex)Region Sub-Saharan AfricaSector TextilesProject No. 007781______________________________________________________________________________1. This project, which is to be financed through the Africa Enterprise Fund (AEF), involves the expansion of Nortex''s cotton towel products line. The company currently produces bath and hand towels and baby diapers for export to South Africa. The expansion will involve installation of new weaving machines and related ancillary equipment in the dyeing and sewing operations. Total project cost is estimated at US$3 million of which AEF has been asked to provide total financing of US$875,000.2. 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. Key environmental, health and safety issues that are of potential concern in this project include: • air emissions and power supply; • liquid effluent; • solid waste management; • handling of chemicals and dyes; • employee training and safety; and • fire protection.3. The sponsors have provided information regarding their environmental, health and safety practices at their current operations and for the proposed project. Major elements as regards the key issues listed above, are described below. 4. Air emissions and power supply: Nortex uses two coal-fired boilers to heat water used in processing operations and is proposing to add a third boiler as part of its facility expansion. The boilers are certified by the Francistown municipality and inspected periodically. Electricity is obtained from the municipal grid.5. Liquid effluent: Nortex''s dyeing operations use approximately 75 cubic meters of water daily. At present the water that is flushed out of the dye baths drains to a three-chambered tank to allow the solids to settle. Acetic acid is added to lower the pH of the slightly alkaline (pH of 8-9) flush water to a pH of 6-7 before the water is released to the municipal sewer system, in compliance with existing municipal regulations. Due to rapid industrial growth in Francistown in the last several years, however, the municipality has recently introduced regulations requiring industrial users to pretreat their waste water prior to discharge to the municipal system. Nortex has met with the City Engineer regarding these new regulations and intends to install additional preliminary treatment capacity to comply with these requirements. Nortex has contracted with the Division of Textiles Technology at the Council of Scientific and Industrial Research (CSIR) in South Africa, who will serve as technical consultants in designing and implementing the new pre-treatment system. CSIR staff are scheduled to visit the Nortex plant on 14-15 November, at which time they will sample and test existing effluent. The results will be made available to IFC, as will the design parameters and capacity of the proposed system. Nortex has agreed to provide IFC with sample results from the new pre-treatment facility once it is operational. The cost of the effluent pre-treatment system is included in the project''s contingency costs. Sewage and waste water from the plant''s ablution facilities are discharged to the municipal sewer system.6. Solid waste management: Any solids in the settling tank are trapped in a filter which is cleaned on a daily basis. The residue, which is primarily cotton lint with small amounts of dyes, salts, and other fixing agents is disposed in a municipal landfill. 7. Handling of chemicals and dyes: All of the dyes used in Nortex''s operations are water-based. Dyes are purchased in powder form and kept in a separate storage room. The only other chemicals used in the process are commercial water softeners (the local water supply has high levels of calcium), bleaching agents, and salt and soda ash (used as fixing agents). Acetic acid used to neutralize effluent before discharge is stored separately. 8. Employee training and safety: All employees are provided with protective clothing and equipment appropriate to the area of operations in which they work. Employees in the sewing area are given overalls and masks. Workers in the weaving plant are supplied with overalls, ear plugs and masks. The weaving shed is fully air conditioned and humidity controlled to prevent against heat build-up. Workers in the dye house are provided with overalls, gum boots, gauntlet shields, gloves, and masks. The dye house is equipped with air extractors to prevent the circulation of dye powder, as well as with drinking water and shower/ablution facilities. Water taps have been located in close proximity to the dyeing tanks to enable workers to flush out their eyes immediately in the event of a spill or other accident resulting in exposure. Every department is equipped with first aid kits, and all employees receive first aid training from local Red Cross staff, as well as occupational health and safety training from Nortex''s security officer. In the event of a more serious incident, employees are taken either to a government clinic located 2 kms from the plant or to a referral hospital located 4 kms away.9. Fire protection: The plant was designed and constructed in accordance with relevant Government of Botswana fire safety codes. Each of the three departments was constructed with fire walls and a fire door to ensure that a fire in one area does not spread to the others. Fire alarms, emergency exits, and fire extinguishers (including dry powder, CO2, and foam units, depending on the nature of the operations) are located throughout the plant. The property is equipped with fire hydrants and high pressure reel hoses in strategic locations, in accordance with government requirements. Fire safety and response training is provided to all employees and fire drills are conducted on a regular basis.10. Based on its review of Nortex''s environmental, health and safety plans, IFC concludes that the proposed project is being designed and will be operated to meet Government of Botswana requirements as well as all relevant 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.