CEMENTO DE EL SALVADOR, S.A. (CESSA)

completed

Environmental Review Summary (ERS)Project Name El Salvador-Cemento de El Salvador, S.A. (CESSA)Region Latin AmericaSector CementProject No. 003564 April 16, 19961. CESSA, the only cement producer in El Salvador, owns and operates two cement plants in the northeastern area of the country. The El Ronco plant, located about 8 km from Metapan, currently has three small/old wet process cement lines and one newer dry process line, and the Maya plant which is located about 4 km east of the El Ronco plant site, operates with one dry process line. CESSA is undertaking a project that will consist of: (i) building a new/modern cement line at the El Ronco plant, with a clinker production capacity of 2,000 metric tons per day, equivalent to 706,000 mtpa of cement; and (ii) modernizing and upgrading of the companies existing operations at both plants. The implementation of the investment program will effectively increase CESSA’s cement production capacity from 1.1 million mtpa to 1.7 million mtpa. The new line will be constructed within the El Ronco plant site. The project construction will start in 1996 and will be completed at the end of 1998. CESSA currently employs a total of 740 people.2. The project includes important environmental improvements for both the new line and the existing facilities. The implementation of this program will result in all of CESSA’s facilities complying with the World Bank’s Guidelines for new and existing facilities before project completion. Environmental equipment on the new line, the upgrading of the line at the Maya plant, and the phasing-out or upgrading of the old lines at the El Ronco plant will significantly reduce stack dust emissions as well as improve overall energy efficiency.3. 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 the 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 were analyzed:· air emissions;· liquid effluents;· spill prevention;· solid waste disposal;· fire prevention;· reforestation of existing limestone quarries; and· employee protection from noise and dust.The sponsor has presented plans to address these issues and demonstrate the proposed project will comply with applicable governmental and World Bank requirements. The information provided about how these potential impacts are addressed in the development of the project is summarized in the paragraphs that follow.4. In order to assess the environmental, health and safety (EH&S) status of the existing operations, EH&S reviews were conducted at the two plants with the assistance of consultants from Spain and Sweden as well as technical and environmental assistance from IFC technical staff. The objective of the reviews was to identify needed environmental, and occupational health and safety improvements required at each facility in order for the facilities to comply with governmental requirements and applicable World Bank environmental, health and safety guidelines. As a result of the studies, areas identified as requiring improvement were:· dust emissions from existing kilns and associated operations;· dust emissions and leakage from other existing sources, including mills, conveyors and cement storage silos;· occupational safety and health;· plant housekeeping; and· to a lessor extent, fire safety and stormwater control.5. The results of the EH&S reviews served as the basis for CESSA establishing a Corrective Action Plan (CAP) for the two plants to ensure the facilities are upgraded to meet governmental and World Bank requirements. The CAP addresses the above issues and is satisfactory to IFC. The CAP identifies, on a plant-by-plant basis, the specific actions required to upgrade the EH&S aspects of the facilities and includes the estimated cost and implementation schedule for each action. The CAP will be implemented between 1996 and 1998. 6. The principal corrective actions planned and those involving the largest expenditures are associated with the control of dust emissions. Full implementation of the CAP will reduce dust emissions of all significant sources to levels which will meet actual World Bank guideline established for the existing cement plants. In order to expedite the reduction of dust emissions, CESSA and IFC have agreed to designate about $US5 million of the project budget for the installation of improved pollution control equipment on the existing lines as established in the loan agreement.7. At the Maya plant, adequate dust control devices are installed on the clinker cooler and kiln; additional testing will be conducted to confirm compliance with the World Bank guideline. CESSA will begin to report dust emissions levels for their existing lines, at both plants, starting in July, 1997 for monitoring results through June 1997, in accordance with the program submitted by CESSA.8. A new and larger dust control device will be installed on the existing dry process line at the EL Ronco plant. The existing collector will be relocated to the #3 wet process line since it is of sufficient size to handle the emissions from this lower capacity line, or the existing collector for kiln #4 will be enlarged and the new one will be installed in kiln #3 in compliance with the World Bank guideline. Additionally, in conjunction with the new installed capacity, CESSA will shut down two inefficient wet-process lines ( #1 and #2 ) which emit dust at levels above the World Bank guideline. These two lines will only be reactivated subject to future demand conditions, but after the installation of new dust collectors or the retrofitting of the dust collector from kiln #3 to control particulate emissions in compliance with the World Bank guideline.9. In accordance with the maintance plan from CESSA, many of the existing dust control devices for secondary emissions will be refurbished or upgraded, and with proper operation and maintenance, achieve the efficiency levels to meet government standards and World Bank guidelines. New control devices, however, will be installed on emissions sources where the existing equipment is either of inadequate capacity or beyond repair. Additionally, CESSA is establishing a preventive maintenance and spare parts program, and is providing the necessary training to employees to ensure the proper operation, maintenance and monitoring of the dust emissions control equipment.10. The CAP also includes specific actions to improve effluent control, oil spill prevention, general housekeeping, and occupational health and safety. Many of these actions involve strengthening administrative procedures and employee training; improvements which will be implemented during an early stage of the project.11. CESSA’s facilities generally comply with the governmental standards and World Bank guidelines for liquid effluents. The CAP, however, includes actions to ensure the adequate control of contaminates in the stormwater runoff. The improvements include: (i) the paving of selected streets and yard areas; (ii) cleanup of soil contaminated with fuel oil and the installation of improved fuel oil storage facilities; and (iii) upgrading maintenance and housekeeping measures, including the purchase and use of a vacuum sweeper, to prevent spillage of cement from reaching the stormwater drainage systems.12. The facilities have established Fire Safety and Occupational Health and Safety programs which generally comply with governmental standards and World Bank guidelines. Employees are trained with regard to plant safety rules, accident prevention, hazards of the workplace, proper use of explosives, fire safety and use of Personnel Protective Equipment (PPE). The workplace is monitored for employee exposure to noise and dust. Employees are provided with appropriate PPE when noise levels are above 80 dBA and/or dust levels above 10 mg/m3. Two clinics have been established to monitor employee health and respond to plant emergencies. CESSA has identified, however, several health and safety actions for inclusion in the CAP, including: (i) installation of additional fire extinguishers at selected locations; (ii) improving general plant housekeeping; (iii) strengthening inspection systems for the identification and elimination of workplace hazards; (iv) further improvements in employee training; and (v) instituting measures to achieve greater employee adherence to plant rules, especially the use of PPE.13. CESSA has instituted a program for the recovery and recycle of waste materials. Dust collected in the emissions control devices is recycled to the process or, when necessary, returned to the quarry. Bricks from the relining of kilns are crushed and used in the mortar for construction projects at the plants. Waste lubricnats are collected and mixed with fuel oil, then burned in the kilns. Solid wastes which can not be recovered or recycled are disposed of in accordance with local regulations.14. As a consequence of the Company’s concern for employees, the community and the environment, CESSA has an ongoing social program involving cooperative efforts with public and private entities. CESSA’s contributions are exemplified by several initiatives, including: (i) the establishment of two clinics - one inside of the CESSA plant and one outside the plant for community access; (ii) the sponsoring of a school which will be expanded to include the ninth grade; and (iii) the implementatin of a significant reforestation program at the quarries. To date, over 250,000 trees have been planted under the direction of CESSA’s Agronomist engineer. This program, which is considered a role model in El Salvador, has also directly benefited 70 families who have been entrusted with preparing the nursery, planting the trees and providing for their subsequent care.15. The new kiln line to be installed at the El Ronco plant will be equipped with modern air pollution control equipment to control primary and secondary dust emissions in accordance with the World Bank particulate emissions guideline of 50 mg/Nm3. Equipment selection and proper operation of the new line will comply with the guidelines for SO2 and NOx emissions. All air pollution control devices will be fully operational when the line is commissioned. The new line will not involve any liquid effluent discharges as process water is recycled and domestic sewage is treated in a septic system in accordance with local requirements. Liquid effluents are handled in the same manner at the Maya plant.16. During the life of the IFC loans, CESSA plans to acquire additional limestone resources. IFC will work with CESSA to ensure the addition of a quarry which will comply with relevant World Bank policies and guidelines. Should the new quarry necessitate the relocation of residents, a Resettlement Plan and related Public Consultation and Disclosure Plan will be established and implemented in accordance with governmental requirements and World Bank policies. 17. Based on its review of available information regarding potential environmental impacts and proposed mitigation measures, IFC concludes that, with the implementation of the CAP, the proposed project is being designed to meet Government of El Salvador requirements, and World Bank policies, and environmental, health and safety guidelines.18. IFC will monitor CESSA’s progress of implementing the CAP as well as ongoing compliance with World Bank policies and guidelines during the life of the project by evaluating environmental performance reports submitted annually to IFC by the sponsor and by conducting periodic site reviews during project execution and normal supervision.L:\WPEU\JOHN\ELSALVAD\CESSA.ERSApril 28, 1996 10:43 AM