Grunbaum, Rico Y Daucourt S.A.

completed

- 2 - November 6, 1995Environmental Review Summary (ERS)Project Name Argentina-GRD TanneryRegion Latin America and CaribbeanSector Food and AgribusinessProject No 0070151. Grunbaum, Rico y Daucourt S.A. (GRD), located in the Province of Buenos Aires, Argentina, is the country’s second largest processor of cattle hides. The proposed project involves an investment in the company’s expansion program, which includes modernization of the hide processing plant, expansion of the capacity of its finishing plant to increase production of high quality leathers, and the expansion and upgrading of the effluent treatment plant.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 sponsor and the technical appraisal and site review completed by IFC’s Agribusiness Department staff. The following potential environmental, health and safety impacts of this project were analyzed:· environmental policies;· air emissions;· liquid effluents;· solid waste; and· general employee training, health and safety.Information provided on how these potential impacts would be addressed in the GRD expansion project is summarized in the paragraphs that follow.3. GRD has an established leadership structure committed to complying with national and local environmental guidelines. Although the company has no stand-alone environmental policy, its management practice is defined by the designation of two full-time professional engineers to oversee such matters.4. The company’s operations generate dust emissions in the buffing areas. In order to control these emissions the company will install a dust gathering system in areas where levels are high. GRD’s operational processes do not generate significant levels of SO2 or NOx. As a result, the company is in compliance with local requirements and World Bank guidelines for air emissions.5. The GRD facility is currently equipped with an on-site waste water treatment plant. Effluents from the facilities undergo a secondary treatment process prior to discharge into an adjacent surface water body. Waste water is currently treated to achieve parameter levels that are within local regulations and World Bank guidelines. Because the proposed plant expansion will exceed current treatment plant capability, the expansion project contemplates increasing treatment capacity to ensure continued compliance with local regulations and World Bank guidelines.6. Current facility operations generate a total of 10,000 m3/yr. of sludge from the effluent treatment plant, 120,000 kg/yr. of dust from the buffing process, and 240,000 kg/yr. of general domestic waste. The company disposes of its solid waste at locations outside the plant designated and approved by the local authorities, while waste generated at the beam house and chrome bath are recycled.7. Ambient noise levels are not exceeding World Bank guidelines due to the type of machinery employed by the industry.8. GRD offers occupational health and safety training associated with the facility’s activities and equipment to its employees. In addition the company offer training in general safety issues such as fire protection and use of fire protection devices. The company maintains a professional nurse and physician on staff on-site, and complies with Argentine labor and occupational health and safety regulations.9. 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 GRD and by conducting periodic supervision.10. Based on its review of available information regarding potential environmental impacts and proposed mitigation measures, IFC concludes that GRD proposed project will meet World Bank environmental, health and safety policies and guidelines, and host country requirements.