Casa Mantica, S.A. and Inmuebles Diano Marina, S.A. (La Colonia)

completed

- 2 - International Finance CorporationA Member of the World Bank GroupInternational Finance CorporationA Member of the World Bank GroupEnvironmental Review Summary (ERS)Project Name: Nicaragua: La ColoniaRegion: Latin America and CaribbeanSector: Food and AgribusinessProject No.: 008877 April 24, 1998 1. This project involves the expansion and modernization of an existing supermarket chain in Managua. Three of the existing five stores will be modernized, and two new stores will be opened. 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.2. The review of this project consisted of appraising technical and environmental information submitted by the project sponsor, and the technical appraisal and site review completed by IFC’s Agribusiness Department staff. The following potential environmental, health and safety impacts of the project were analyzed: existing and past land use at the site; liquid and solid waste disposal; CFC-free cooling and refrigeration systems; fire prevention and emergency response; and hygiene and employee health and safety. The information provided about how these potential impacts are addressed in the development of the project is summarized in the paragraphs that follow.3. The supermarket sites are located in existing commercial spaces or vacant land, in commercially-zoned areas of Managua, but generally close to residential areas. No sites contain contamination liabilities and none affect any environmentally-sensitive areas.4. There are no air emissions associated with the project. Water for project consumption will be obtained from the local drinking water network. Wash water from food processing areas and general cleaning, along with sanitary waste, is discharged to the municipal sewage system. 5. Solid waste, largely packaging material and discards from the produce and meat departments, are collected daily by the municipal authority and disposed in authorized sanitary landfills. Freon 12, a CFC, is used in some cooling or refrigeration equipment, and this will be phased out. All new equipment will use Freon 504 which has minimal ozone-depleting potential. No new equipment containing CFCs will be installed.6. Acceptable fire protection measures, including fire extinguishers and adequate exit routes, are provided in case of fire emergencies. The sponsor will ensure that smoke detectors and alarm systems are installed in all facilities, to provide additional protection. The employees are provided with training in health and safety issues related to food handling, to ensure appropriate hygiene practices and safe operation of these facilities.7. IFC will monitor ongoing compliance with World Bank policies and guidelines during the life of the project by evaluating the environmental performance reports submitted annually, in conjunction with the annual financial report, to IFC by the sponsor and by conducting periodic site reviews during project supervision. 8. 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 Nicaragua requirements, and World Bank policies and environmental, health and safety guidelines.