Cementos del Caribe S.A.

completed

8 Environmental Review Summary (ERS)Project Name Colombia - Cementos del Caribe, S.A. (Caribe Cement Group)Region Latin AmericaSector Cement and construction materialsProject No. 9904 1. The proposed project entails the modernization and capacity expansion of two of Cementos del Caribe, S.A’s cement plants, Corporacion de Cemento Andino, C.A. (“Andino”) in Venezuela and Cales y Cementos de Toluviejo, S.A. (“Tolcemento”) in Colombia. The project involves: a) reduction of production costs; b) environmental upgrades; c) capacity upgrades; d) creation of standby power generation capacity for Andino and e) de-bottlenecking.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 relevant environmental specialists at Cemento del Caribe, S.A. (“Caribe”), Andino and Tolcemento and technical and environmental appraisal visits. The following potential environmental, health and safety impacts of the project were analyzed:· air emissions;· process and domestic liquid effluents;· solid waste handling and disposal;· sustainable raw material supply;· quarry reclamation;· port related impacts;· fuel storage and handling;· employee training; and· employee health and safety including exposure to noise and dust.3. Caribe, as sponsor, and each of Andino and Tolcemento individually, have presented plans to address these issues and demonstrated that the proposed project will comply with applicable local regulations and World Bank policies and guidelines. The information provided, which indicates how these potential impacts will be addressed in the development of the project, is summarized in the paragraphs that follow.4. Caribe has cement operations at three different sites in Colombia: two wet process plants, Caribe in Barranquilla and Colclinker in Cartagena, and a dry process plant, Tolcemento in Toluviejo. In addition, Caribe has another dry process operation, Andino, in Trujillo, Venezuela. Caribe will undertake to improve and upgrade the Andino and Tolcemento plants under this proposed investment. Andino and Tolcemento, each of which will enter into direct Loan Agreements with IFC, will individually commit to certain undertakings as per this ERS and in their respective Loan Agreements. Caribe, as project Sponsor and in addition to its own obligations, will, as majority shareholder of Andino and Tolcmento, require that Andino and Tolcemento carry out their respective commitments as set forth below. Cementos Andino5. The plant is located approximately 6 km from the city of Monay, Trujillo in Venezuela in a mainly agricultural area. There are no natural or culturally sensitive areas nearby. The plant has a 1,600-tpd clinker dry process line. As part of the operation, the plant also has a crusher, a raw mill, a blending unit, a finish mill, a packing plant, and a cement storage area. The plant has an associated port, La Ceiba, located approximately at 120 km from the plant.6. The plant obtains its water from a nearby stream, the Quebrada Timiachi, and uses fuel oil as combustible. The power, which is obtained from the main electricity grid, is not very reliable.7. The limestone is obtained from an open pit concession operated quarry located 3-km from the plant. Once exploited, the limestone is transported via-belt conveyor to the plant. Andino is currently in the process of obtaining additional concessions. The environmental actions associated with these concessions will be submitted to IFC as soon as the concessions are approved. 8. Andino will increase its production in two phases. In Phase I, it will increase production from 1,600 tpd to 1,800 tpd; and in Phase II, it will boost production to 2,500 tpd. The air emissions generated by the kiln/raw mill and the cooler, during Phase I will continue to be controlled with the existing two electrofilters which are designed for a 1,800 tpd control capacity. The monitored dust stack emissions for the kiln/raw mill and cooler electrofilters have been reported as 45 mg/Nm3 and 55 mg/Nm3 respectively complying thereby with the applicable, 50 mg/Nm3, dust World Bank guidelines. Andino will also ensure that the stack concentrations for SOx and NOx will be maintained below 400 mg/N m3 and 600 mg/N m3 respectively.9. For Phase II, Andino will upgrade the existing kiln/raw mill electrofilter to control the stack emissions generated and ensure compliance with the applicable 50 mg/Nm3 particulate World Bank applicable guideline and the 400 mg/N m3 SOx and 600 mg/N m3 NOx World Bank guidelines. A coal mill will be installed and will be designed and operated to comply with the applicable World Bank guidelines. The cooler electrofilter will be also upgraded to ensure stack emissions less than 50 mg/N m3.10. The additional sources of dust generation (i.e., crushers, mills, etc.) will be operated to ensure compliance with the 50-mg/N m3 World Bank guideline. If necessary, Andino will implement actions to meet the applicable dust concentrations. Andino will conduct stack testing on all the additional sources emitting particulates to the atmosphere and submit the results as well as the proposed environmental measures, if needed, and the costs and implementation deadline before the first disbursement.11. The process waters will continue to be recirculated. The storm waters will continue to be released to a nearby stream and will be treated as necessary to ensure compliance with the World Bank guidelines. The plant and quarry domestic waters generated will continue to be disposed in septic tanks and the releases will comply with World Bank guidelines. 12. The dust collected in all air pollution control devices will continue to be mostly recycled back into the process. Minimum amounts to be discarded will be stored in specifically assigned exhausted areas of the quarry. The used lubricants and waste oils are stored and burned in the kiln as fuel. Andino does not use chrome-based kiln refractory. However, the kiln currently has chrome-based refractory. The discarded chrome-kiln refractory will be properly disposed also in specifically assigned exhausted areas of the quarry. Non-chrome discarded kiln refractory and the scrap will continue to be sold for recycling purposes. The discarded paper and wood will continue to be sold for reuse. The domestic wastes will continue to be collected and disposed in accordance with the local regulations.13. The fuel oil is stored in above ground storage tanks, which have double containment to prevent soil contamination as a result of accidental leaks or spills. 14. As part of the project, Andino will upgrade the operations at the port including bulk cement silos, packing operations, clinker reception, and storage system. Andino will also install an auxiliary electrical generating plant in the port premises, near the existing plant sub-station, and dredge the port. The dredged material will be temporarily disposed in the port and finally disposed in the quarry. 15. The upgrade of the port units will include the installation of air pollution controls as necessary to ensure compliance with the World Bank guidelines. The three additional diesel electric generation units, to be installed, will produce 400 kW, next to the existing plant sub-station located in the port. The diesel fuel will be filtered before entering the power generators and the sludge generated during the filtration will be burned. Andino will provide specific details about the burning of these sludges before IFC presents the project to its Board of Directors. The diesel storage tanks will have double containment to avoid the risk of soil contamination caused by accidental leaks or spills. 16. The combined new and existing power generation system in the port will generate a total of 1 MW and will be operated to comply with the applicable stack emission World Bank guidelines as follows: 100 mg/Nm3 for particulate matter, 2,000 mg/Nm3 for SOx, and 2,300 mg/Nm3 for NOx if the maximum NOx ambient air concentration is less than 150 ug/m3; if the NOx ambient air levels are greater than 150 ug/Nm3 the NOx stack guideline is 400 mg/Nm3. There are no PCB oil transformers at the existing power plant neither will be in the additional power generation station. The project will also include a power generation system of approximately 6 MW at the plant site which will also operate in compliance with the applicable World Bank guidelines.17. Andino is upgrading the two environmental impact statements (EIAs) prepared for its plant and for the associated port, respectively. The upgrades will include assessment of additional impacts, mitigation measures, monitoring plans with parameters and frequencies, and contingency and emergency response plans. The specific aspects to be addressed in the addendum to the plant’s EIA include final destination of the discarded kiln refractories, coal mill and storage, and quarry reclamation. The additional aspects to be considered in the addendum to the port’s EIA include port dredging and disposal of dredged material, combined power generation plant, fuel storage, and material transport safety measures. These two addenda ought to be satisfactory to IFC and be submitted to IFC prior first disbursement. 18. As a result of the project, there will be a reduction in the labor force, Andino will implement a workers compensation program which will fully comply with the local Venezuelan regulations. In developing this program, Andino will consult regularly with the labor unions. The methods and processes to be used in these consultations will include voluntary retirement programs and training and guidance for future employment options such as microenterprising.Tolcemento19. The plant is located in Toluviejo, Sucre in the northern part of Colombia. The main land use in the area is agricultural. The closest community is located about 3 km from the plant site. There are neither natural nor culturally sensitive areas nearby. The plant has two dry process lines, a 1,000 tpd, and a 650-tpd-clinker capacity, kilns No. 1 and No. 2 respectively. Additional plant equipment includes crushers, raw mills, cement and coal mills, packing units, and cement and homogenization silos. The plant has an associated port, the Morrosquillo Gulf port, located approximately 30 km from the plant.20. The plant obtains its process and drinking water from the El Escobillo reservoir. The water is treated in a treatment plant prior human consumption. Petcoke, coal, and natural gas are used as fuels. The power is obtained from the main electricity grid and from its own 2 MW diesel power generator. 21. Currently, Tolcemento is exploiting one concession-operated quarry (limestone/marl and clay) located at approximately 3 km from the plant site and has two other concessions as reserve. Once exploited, the raw materials are transported via-truck to the plant. In cases where there is no natural vegetal layer in the areas to be exploited, Tolcemento has been required by the local authorities to perform environmental improvements in equivalent areas as agreed with the local environmental authorities. 22. The plant has a closed cooling water system. The additional industrial and storm waters are passed through oil tramps prior being discharged to a reservoir for further reuse in the process. Sweep vacuums are used to clean the plant grounds and reduce the particulate concentration in the reservoir. The plant and quarry domestic waters generated are properly disposed into two septic tanks at the plant and a portable septic tank at the quarry. The process and quarry liquid effluents will comply with World Bank guidelines and if needed, Tolcemento will install additional controls to achieve compliance. 23. Kiln No. 1, has an electrostatic precipitator to control its particulate emissions. The particulate releases to the atmosphere from the grinding packing operations, cement and homogenization silos, and crusher are controlled by baghouses. The belt conveyors also have dust collection systems and the roads are irrigated with water to reduce fugitive dust. Tolcemento will ensure that the particulate releases from the kiln No. 1 ESP and the additional emitting particulate-sources (i.e., grinding, packing, silos, etc.) will emit less than 50 mg/Nm3 to comply with the applicable World Bank guidelines.24. As part of the project, Tolcemento will increase its production capacity from 650 tpd to 850 tpd in kiln No. 2 and will install an electrostatic precipitator (ESP) to control the combined stack emissions from the kiln and the raw mill to be less than 50 ug/Nm3. In addition, Tolcemento will ensure that whenever natural gas is used, the NOx emissions will be less than 600 ug/Nm3 and the SOx emissions will be also controlled to comply with the 400-mg/Nm3 World Bank guidelines. The coolers dust control systems will be upgraded to also emit less than 50 mg/Nm3. The dust collected in these systems will be returned to the process. There is a coal mil as part of the operation, which does not emit particulate matter to the atmosphere because the mill is directly connected to the kiln. 25. The dust collected in all air pollution control devices will continue to be mostly recycled to the process. The minimum amounts to be discarded will be stored in specifically assigned exhausted areas of the quarry. The used lubricants and waste oils are currently stored in tanks located within the premises of the project. Tolcemento will inform IFC about the proposed final disposal measures before the first disbursement. Tolcemento does not and will not use chrome-based kiln refractory. The discarded kiln refractory is sold for recycling purposes. The plant’s scrap as well as the discarded paper and wood are properly stored and sold to be recycled. 26. Tolcemento will build a sanitary landfill for the final disposal of the domestic residues and a final disposal site for industrial residues. Details satisfactory to IFC, about the specific locations, environmental control measures, implementation schedules and associated costs will be submitted to IFC prior to first disbursement.27. The port has two silos of 5,000 tons each, a packing unit, and a warehouse. The cement is transported from the plant to the port by truck. Tolcemento has installed several baghouses, in the silos and in the packing unit, to control the release of dust to the atmosphere. The collected dust is recirculated back into the silos. For the port, Tolcemento will submit to IFC a copy of the port contingency plan, satisfactory to IFC, before first disbursement. 28. Tolcemento will continue implementing the existing reforestation program at all the quarries. The program includes the recuperation of the vegetal layer in the exhausted areas, the planting and maintenance of native vegetation barriers and erosion controls. This program has been developed and is implemented under the supervision of Reforestadora del Caribe, a Caribe subsidiary specialized in reforestation activities, which has its own nurseries. Tolcemento has reforested approximately 120 hectares in the quarry area. Andino will begin its reforestation program as early as 2006 when the first exhausted areas become available. 29. Tolcemento is implementing measures including installing/improving the drainage systems to avoid the solid deposition in the water bodies nearby the quarries. Specifically, Tolcemento will capture and conduct the stormwater to sedimentation lagoons where the solids will be removed before the water is finally discharged, avoiding thereby an increase in the solids concentration in the nearby rivers and streams. Tolcemento will monitor these effluents before being discharged to ensure they comply with the applicable World Bank guidelines. The slopes will be also adequately maintained. 30. Tolcemento will install appropriate fuel, lubricants, and raw material storage systems and disposal procedures at both plants and quarries, including the maintenance shops, to avoid the risk of air pollution or groundwater and soil contamination. Tolcemento will ensure that rain water will not fall directly on the materials or that there will be appropriate drainage systems.31. Tolcemento and Andino will ensure that the plants will comply with the applicable ambient air concentration, at property boundary, as follows: 50 ug/m3 (annual arithmetic mean) and 70 ug/ m3 (maximum 24 hour average) for particulate matter, 125 ug/m3 (maximum 24 hour average) for SOx, and 150 ug/m3 (maximum 24 hr average.) and 50 ug/m3 (annual arithmetic mean) for NOx. 32. To reduce noise emissions, the equipment at all plants is regularly maintained. Both Tolcemento and Andino will install controls as necessary to ensure that the noise levels are in compliance with the applicable World Bank noise levels. In addition, both Tolcemento and Andino will ensure that workplace noise levels at their respective plants are below 85 dBA and in cases when these levels are greater, the employees will be using hearing protection equipment. The workplace air concentrations will be maintained at 10 mg/m3 and if the levels are greater than this concentration the workers will be provided with and require to use protective respiratory equipment. 33. Caribe has developed a corporate-wide environmental policy that addresses several issues including (a) the development and implementation of environmental, health and safety programs to protect the environment, its workers, and the surrounding communities; (b) all the cement plants will have environmental management plans for the quarries, ports/terminals, transport operations, power generation, dredging activities, and equipment maintenance; (c) completion of a comprehensive program for handling and disposal of solid and liquid residues by year 2003; (d) implementation of a comprehensive occupational program including hygiene and industrial safety as well as health aspects at each plant; and (e) initiation of the ISO 14000 certifications once the ISO 9000 certifications are completed. Caribe will begin the implementation of its policy as soon as possible.34. Caribe will submit outlines of the environmental management plans above mentioned and of the comprehensive occupational program including hygiene and industrial safety before the first disbursement.35. Tolcemento and Andino have created Occupational Health and Environmental Departments at their respective plants. Personal protective equipment, including hard hats, safety goggles, safety gloves and boots as well as dust masks and hearing protection for personnel working in areas with high dust and noise levels, are provided to and required to be used by the employees. Jobs requiring specialized equipment (i.e., welding masks, isolation jackets. etc.) are also provided. There are very well equipped medical facilities at each of the plants. The employees receive pre-employment and periodic medical check-ups. Each plant has a qualified nurse available to attend work related cases. 36. Tolcemento and Andino will develop and implement a safety and evacuation and fire prevention program ensuring that the environmental, health and safety measures are up to date and that the employees are properly trained. Tolcemento and Andino will install their own fire fighting system including high-pressure fire-fighting hydrants, extinguishers and smoke detectors throughout their respective plants and will perform periodic fire drills. As part of the housekeeping, Tolcemento and Andino will ensure that the handrails, roofs, mechanical equipment guards, etc. are in good working condition, and will ensure that the roads and hard surfaces in their respective plants are maintained clean at all times. 37. Qualified personnel is implementing health and safety programs, and Tolcemento and Andino will continue training their employees in occupational health and industrial safety issues to ensure that the environmental, health and safety measures are up to date and that the employees are properly trained as specified in the applicable World Bank guidelines. 38. To demonstrate that the project has been implemented in accordance to the applicable World Bank guidelines, Caribe will conduct environmental audits at Tolcemento and Andino by project completion and will submit copies of the audits to IFC.39. By project completion, Tolcemento and Andino’s operations will be in compliance with the relevant World Bank guidelines and policies; as well as Colombian and Venezuelan environmental standards. Each of Tolcemento and Andino will annually submit to IFC a monitoring report to ensure ongoing environmental compliance during the life of the project. Minimum information to be provided in the environmental monitoring reports is provided in Appendix A.40. 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 the requirements of the Government of Colombia (in the case of Caribe and Tolcemento) and the Government of Venezuela (in the case of Andino) and World Bank policies, and environmental, health and safety guidelines.41. IFC will monitor Tolcemento and Andino’s ongoing compliance with World Bank policies and guidelines during the life of the project by evaluating environmental performance reports submitted annually to IFC and by conducting periodic site reviews during project supervision.APPENDIX AMONITORING REPORTS MINIMUM REQUIREMENTS· status of the mitigation actions for the projects defined during that year;· stack emission monitoring results for each emission point;· process and domestic water liquid effluents concentrations;· ambient noise levels;· significant incidents, if any; · annual statistics for occupational accidents and illnesses including number of employees, work hours and lost-time incidents;· rate of work related accidents and incidents (Rate = # of incidents/# of workers)· interactions with the local communities; and · industrial, safety, and environmental employee training programs.In case of any deviation from the applicable World Bank Environmental and Occupational Health and Safety guidelines, the company shall inform IFC within a period of not more than five (5) working days about the nature of such deviation and the steps taken to correct such deviations.