Bompreco S.A. Supermercados do Nordeste

completed

Environmental Review Summary (ERS)Project Name BRAZIL: BOMPRECO S.A. SUPERMERCADOS DO NORDESTERegion Latin AmericaSector Retail SalesProject No. 7683 November 12, 1996 1. Bompreco S.A. Supermercados do Nordeste (BSN) is the largest supermarket chain in the northeast of Brazil, where it operates 50 stores and 4 distribution centers. The proposed project is a three-year expansion and modernization program, about 75% of which will consist of the establishment of seven new stores located in the northeastern states of Pernambuco, Paraiba, Ceara and Rio Grande do Norte. This will include six hypermarkets (store size 6,000 to 10,000 m2) and one 4,000 m2 supermarket. Improvements in existing stores, including automation of systems and applications and training will comprise the remainder of the program. Seventeen stores will be partially refurbished and upgraded and the distribution centers will be expanded and reconfigured for increased efficiency.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 appraising technical and environmental information submitted by the project sponsor and technical appraisal and site review completed by IFC’s Technical and Environment Department staff. The following potential environmental, health and safety impacts of the project are considered of most significance:· liquid and solid waste disposal;· use of non-ozone depleting refrigerants;· fire safety measures; and· employee training and general safety.The information provided by Bompreco about how each of these potential impacts will be addressed in the development of the proposed project is summarized in the paragraphs that follow.3. All of Bompreco’s existing and proposed stores are located in urban areas and are connected to municipal sewer and effluent treatment systems. No pretreatment of store effluent is required. Recycling of cardboard is conducted at each store; other solid waste is disposed of at municipal landfills. No hazardous wastes are generated by store operations.4. Bompreco’s proposed stores will be air conditioned, as are its existing upmarket stores. All new and replacement air conditioning and food refrigeration systems will be CFC-free.5. Fire safety measures in the existing stores include adequate exits and provision of fire extinguishers at key locations. The proposed stores will be equipped with fire sprinkler systems. Annual training with fire extinguishers and fire combat materials is provided to employees.6. Annual employee training is provided in general safety and safe storage and handling of materials. Medical examinations are also conducted annually for all employees, as required by local laws. All Bompreco units have an accident prevention group. Workplace areas are well ventilated and equipped with sanitary facilities. Protective equipment is available and used by employees exposed to low temperatures (freezers) and above average dust levels (bakeries). No employees are exposed to noise levels above 85 dBA.7. 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 Brazil requirements, and World Bank policies, and environmental, health and safety guidelines.8. IFC will monitor Bompreco’s 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.