CARIBBEAN ISPAT LTD

completed

- 3 - May 23, 1995INTERNATIONAL FINANCE CORPORATIONA Member of the World Bank GroupINTERNATIONAL FINANCE CORPORATIONA Member of the World Bank Group May 23, 1995 TRINIDAD AND TOBAGO: Carribean Ispat LimitedEnvironmental Review Summary1. Carribean Ispat Limited (CIL) is a major steel plant in Trinidad. The company is currently being privatized, restructured and modernized. The proposed project will help finance CIL''s investment and modernization program over the next three years. The environmental component of the investment and modernization program includes necessary steps to turn the company from being an environmentally criticized operation to an efficient and environmentally sound operation. The project investment in environmental improvements is approximately US$ 25 million. The environmental component of the project will result in compliance with local requirements and World Bank guidelines.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 IFC''s Technical and Environment Department staff. The following potential environmental, health and safety impacts of this project were analyzed: • air emissions; • removal of accumulated dust; • solid waste management; • wastewater and run-off water management; • resource recovery; • use of effluent for irrigation; • system safety; • general employee health and safety; and • environmental monitoring and reporting program.The information provided about how these potential impacts would be addressed in the CIL project is summarized in the paragraphs that follow.3. For improved air emission control, CIL will invest more than US$ 17 million in increased fan capacities and introduction of ventury scrubber for the conveyor system in the direct reduction plant, upgrade existing equipment and replace missing equipment in the dust emission control system for the direct reduction plant, revamp the lime plant dust collection system, instal systems to control both primary and secondary emissions from the electric arc furnaces and planned future ladle furnace, install a pelletizer for recycling of the electric arc furnace dust, and pave all unpaved roads and storage areas and repair existing roads to limit dust from cars and trucks. The necessary improvements will be designed to bring the air emissions from CIL in compliance with local requirements and World Bank guidelines.4. CIL will further take the necessary actions for obtaining a landfill site for the accumulated dust from the direct reduction plant. After obtaining the landfill site the dust will have to be deposited and covered within a twelve month period.5. To improve solid waste management CIL''s initiative will include installation of vacuum filtration systems to deviate sludge from the direct reduction plant clarifier. The sludge will be deposited in a dedicated landfill to avoid dust emission from dried sludge disposal.6. To improve the quality of wastewater and run off water CIL will install new oil water separation equipment in the billet caster and rod mill area, prepare box drains in pollution prone areas and lined drains in other stretches and correct the drains gradients according to results of detailed surveys and designs to be prepared. CIL will also install spill collection pads in areas where spill potential is likely, i.e. in vehicle fueling area and the warehouse for storage of chemicals in drums. Later in the project, accumulated dust will be removed from the production site and vegetation or asphalt cover will be established to prevent contamination of surface water runoff with particulates. These initiatives are designed to bring the effluent water from CIL in compliance with local requirements and World Bank guidelines. The improvements will further lower ambient dust levels.7. To improve the resource recovery at the plant and to limit the water consumption, a reverse osmosis system will be considered to reduce makeup water quantity.8. A 3,000 meter pipeline will be installed to allow the effluent from the plant to be used for irrigation in greenbelt development within the plant boundary.9. To improve the safety of the plant operation, an emergency water storage will be constructed. This will allow for a more safe and controlled shut down of the plant should the water supply be interrupted. Stand-by fire pumps will also be installed.10. The project improvements will significantly improve the occupational health and safety at the plant. The most important improvements will be related to lower dust content in the working environment.11. Finally, CIL will implement an environment monitoring and reporting program to verify ongoing compliance with applicable environmental standards.12. IFC will ensure ongoing compliance with World Bank environmental, health and safety policies and guidelines during the life of the project by evaluating monitoring reports submitted annually to IFC by CIL and by conducting periodic supervision.13. Based on its review of available information regarding potential environmental impacts and proposed mitigation measures, IFC concludes that Caribbean Ispat''s proposed project is designed to meet World Bank environmental, health and safety policies and guidelines, and host country requirements.niels\trinidad\ispat\ers