Chengdu Potassium Hydroxide/Carbonate

completed

- 2 - May 11, 1998International Finance CorporationA Member of the World Bank GroupInternational Finance CorporationA Member of the World Bank GroupEnvironmental Review Summary (ERS)Project Name CHINA-Chengdu Potassium Hydroxide/CarbonateRegion AsiaSector ChemicalsProject No. 008506 1. Chengdu Chemical Company, Ltd. (CCCL) is a joint stock company with a diversified shareholding structure. The state owns 35% of CCCL, individuals own 35% and legal entities own 30%. The legal entities can further be categorized into 4 groups: 5 listed companies own 16.8%, a cooperative holds 7.2%, a state owned financial institution holds 3.9%, other legal entities hold the remaining 2.3%. The proposed project involves design, construction and operation of a new 10,000 tpa high purified KOH flake production facility and a new 12,000 tpa K2CO3 production facility in connection with the company’s current KOH, K2CO3, and NaOH productions. The project will be located at the JianJiang Chemical Plant site in Jiuchi Town, Pengzhou City, a satellite city 48 kilometer from Chengdu City.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 sponsors and the technical appraisal and site review completed by Chemicals, Petrochemicals and Fertilizers Department staff of IFC. The following potential environmental, health, and safety impacts of this project were analyzed:· site suitability;· air emissions;· wastewater treatment;· solid waste handling; and· plant safety.Information provided on how these potential impacts would be addressed in the Chengdu Potassium Hydroxide/Carbonate project is summarized in the paragraphs that follow.3. The site is within an industrial estate located 1 kilometer from Jiuchi town. The industrial estate has good infrastructure access, including highway and railway connections. Water and power is also readily available.4. The original project included a power plant for own power supply, when it was approved by the authorities. Due to a readily available external power supply, this part of the project has now been canceled. Only remaining air emissions are related to chlorine escaping from the process. The process applied is based on an up-to-date membrane process, followed by a better than 99% absorption of off-gasses. The resulting chlorine air emissions from the new unit has been estimated at 0.13 kg/hour during normal operation and 0.33 kg/hour during process interruptions based on a 99% absorption. The emissions are released through a 30 meter stack. All air emissions will comply with both local requirements and World Bank guidelines.5. Wastewater from Chengdu Chemical Company will have to comply with the local standards of 30 mg BOD/liter, 100 mg COD/liter, pH of 6-9, and 70 mg TSS/liter. The only local standard exceeding the World Bank guidelines is TSS which should be 50 mg/liter. Chengdu Chemical Company has designed its biological wastewater treatment for achieving 3.8 mg BOD/liter, and 10.6 mg COD/liter. There is currently no specific TSS design but it is unlikely that the designed plant will not comply with the World Bank guidelines from the start due to the good BOD and COD removal efficiencies. Chengdu Chemical Company will ensure that the treated wastewater comply with the World Bank guidelines, if necessary by improving the TSS separation after commissioning of the plant.6. The only process related solid waste generated at the facility is salt sludge from the brine purification. This sludge is filtered and the sludge cake is delivered to other operations in the area. Here it is used as an additive in the production of honeycomb coal briquettes. The filtrate is returned to the process7. The plant does not have any major noise emitting sources. It is further located within an industrial area, and no noise emission problems are foreseen.8. Chlorine containing gases are by nature hazardous and special care will be taken to avoid chlorine gas related accidents. The project includes absorption units able to handle chlorine releases during process disturbances. Ambient air monitoring devices will be installed at strategic points within the process area to monitor potential leaks. These monitors will be connected to automatic warning systems. Water curtain and steam screen systems will also be installed to prevent accidents from escalating.9. IFC will monitor ongoing compliance with World Bank environmental, health and safety policies and guidelines during the lifetime of the project by evaluating reports submitted annually to IFC by Chengdu Chemical Company and by conducting periodic supervision.10. Based on its review of available information regarding potential environmental impacts and proposed mitigation measures, IFC concludes that the proposed Chengdu Potassium Hydroxide/Carbonate project will meet World Bank environmental, health and safety policies and guidelines, and host country requirements.\\StreetTalk\Shared Data@CTENET@IFC\wpeu\NIELS\CHINA\CHENGDU\ENVIRONMENTAL REVIEW SUMMARY.DOCMay 15, 1998 12:44 PM