Bonar Fisheries Holdings LDA

completed

- 2 - June 8, 1995International Finance CorporationA Member of the World Bank GroupJune 8, 1995International Finance CorporationA Member of the World Bank GroupEnvironmental Review Summary (ERS)Project Name Mozambique-Bonar Fisheries Holdings (BFH)Region Sub-Saharan AfricaSector Fishing & Fish Processing IndustryProject No 0050941. This project, which is being financed through the Africa Enterprise Fund, involves the expansion of BSP’s fishing operation, which currently consists of two leased Kapenta fishing rigs, on Lake Cahora Bassa, in the north of Mozambique. The project would involve the purchase of nine new Kapenta fishing rigs from Zimbabwe, one tractor for moving fish from the shore to the processing areas and two vehicles for transporting fish to market and for bringing in supplies. A warehouse and drying racks together with staff housing and an office would be constructed on a 20 acre site that is leased from the local government. 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 a technical appraisal by a consultant commissioned by IFC. The following potential environmental, health and safety impacts of the project were analyzed:· sustainable fishing;· land clearing for site development;· liquid and solid waste disposal;· processing plant hygiene and housekeeping;· provision of personal protective equipment;· emergency preparedness and employee training; and· fleet maintenance.IFC has reviewed the consultant’s report together with BSP’s Environmental Management Guidelines and Plan, which address all of the environmental health and safety issues listed above, as follows:3. Lake Cahora Bassa is a large man made reservoir on the lower Zambezi River. Stocks of Kapenta, a small sardine-like fish, have increased over the past 20 years due to lack of fishing caused by local civil unrest, and are currently underexploited. At present there are only 19 Kapenta rigs on the lake, compared to the over 500 rigs in use at Lake Kariba. BSP has government licenses for a total of 10 Kapenta rigs. Sustainability of the Kapenta resources was evaluated by a consultant appointed by IFC, who concluded that the fishery is sustainable given a reasonable degree of management and principally through a limit being placed on the number of rigs. Discussions with government officials indicated that promulgation of a limiting policy can be anticipated. For its part, BFH has committed to respect the Kapenta breeding grounds of less than 20 meters depth as a protective measure.4. The project site is located in a wooded area. The sponsor has chosen to limit land clearing by utilizing existing road networks and establishing the drying racks and warehousing on a site originally cleared as an athletic field. Required roadways will be gravel surfaced to prevent erosion. Cutting of wood for drying frames and for domestic fuel will be reduced through the use of metal drying frames and by providing electricity to onsite staff housing.5. Kapenta are processed by salting and sun drying whole on racks; no other processing will occur onsite. Salt and fish pieces which fall from racks are generally collected and consumed locally. Drying racks will be protected from rain by temporary covers. Runoff from the drying area will transport minor amounts of salt and fish pieces to drainage ditches. Ventilation improved pit (VIP) latrines and washrooms with piped water have been included in the design so as to reduce the domestic use of the lakeshore and to create hygienic conditions for fish handling.6. BFH’s Kapenta rigs will all be equipped with safety rails and all moving parts of the rigs will be fitted with safety covers. Fire extinguishers, life jackets, life rafts and signal flares will be carried on all rigs. BFH will equip the shore facilities with telephone and radio for emergency communications, and will maintain a shore-based boat for emergency use. Full and safe utilization of the fishing rigs will be ensured through a full time maintenance crew, servicing on a regular schedule, and spare parts stores. A full time technical advisor will be employed for the first few years of operation to develop and implement training programs for operations, maintenance and safety.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 Mozambique 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.