EL-ZAY

completed

Environmental Review Summary (ERS)Project Name JORDAN: El-Zay Suits ManufacturesRegion CamenaSector Garment ManufacturingProject No. 007919 March 24, 1997 1. This project consist of (i) an expansion program to diversify El-Zay’s product line by manufacturing uniforms; and (ii) a financial restructuring designed to strengthen El-Zay’s balance sheet by replacing most of its short and medium term debt with long term debt. El-Zay is a modern and profitable company which manufactures high quality men’s suits. Total project cost is estimated at US$11 million; IFC has been approached to provide an “A” loan of US$5.0 million.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 the appraisal of technical and environmental information submitted by the project sponsor and completed by IFC’s Environment Department staff. The key environmental, health and safety issues considered in this project include:· sanitary discharge treatment and disposal; and· solid waste management;· general occupational health and safety procedures including training; and· fire prevention and emergency evacuation.The sponsor has presented plans to address these issues and demonstrate that 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.3. El-Zay’s sanitary effluent is discharged into the national sanitary disposal sewers for treatment. The solid waste generated at the company are pieces of fabric classified as defects or remnants, the percentage of which is about 2.5%, this waste is sold to be shredded for use in other industries.4. The company has an extensive occupational health and safety training programs for its employees, which includes orientation training for new employees, training for operators in the sewing lines at a vocational center for four months and an additional three months at the factory, and internal and external training courses in different issues according to the needs of its employees. El-Zay’s provide its employees with protective equipment that includes safety gloves, safety glasses and ear protection for use in the boiler room. The company has a clinic with a full time nurse and a part-time doctor, first aid supplies are available in each sewing line.5. The outer walls of the building are thermally insulated, and the machines are grounded, insulated and periodically inspected. The factory aisle are well defined, which guarantees safe material handling. The company has two air units that have two main functions; one is used for air conditioning and the other one for ventilation. Drinking water is supplied by filtered coolers and by using mineral water.6. A qualified general safety supervisor is at the factory at all times to verify the use of safety equipment, working environment in terms of air conditioning and ventilation, and hygiene in the cafeteria.7. The company training programs for fire prevention includes training courses implemented twice a year on fire prevention, emergency evacuation and first-aid. The warehouse area as well as the boiler room, computer room, archives, and the main electricity room will have smoke detectors that will be connected to the security office. A total of 26 water cabinets with fire hoses, and 71 fire extinguishers will be distributed throughout the factory. The emergency evacuation at the factory consist of emergency doors properly marked, and exit signs in the event of electicity shut-off.8. 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 El-Zay and by conducting periodic supervisions.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 Jordan requirements, and World Bank policies, and environmental, health and safety guidelines.L:\WPEU\ROSA\JORDAN\ELZAY.ERSMarch 24, 1997 10:39 AM