Grupo Industrial Ayvi S.A. de CV

completed

- 2 - May 4, 1998International Finance CorporationA Member of the World Bank GroupInternational Finance CorporationA Member of the World Bank GroupEnvironmental Review Summary (ERS)Project Name Mexico – Grupo AyviRegion Latin America and the CaribbeanSector AgribusinessProject No. 008971 1. This project involves the expansion and modernization of a fully integrated small poultry company based in Monterrey. The project will provide necessary equipment, including incubators and refrigeration equipment, construction for a new by-product rendering plant to convert animal by-products rendering to feed, and provision for consolidation of debt. The Ayvi Group has two plants and 12 distribution facilities in 10 Mexican states, and facilities for grain storage and milling, integrated poultry production and production of meat snacks for export. 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 the 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 staff. The following potential environmental, health and safety impacts of the project were analyzed:· air emissions and wastewater effluents;· solid waste management and disposal;· handling and storage of hazardous materials;· use of CFCs in refrigeration equipment;· hygiene practices in all facilities;· fire protection and emergency response; and· general worker health and safety.The information provided by Grupo Ayvi about how each of these potential impacts will be addressed in the development of the proposed project is summarized in the paragraphs that follow.3. The hatchery has diesel-operated emergency power plants, which are compliant with Mexican air pollution regulations. The breeder farm complex and most of the broiler farms run by the company are located in rural areas. The hatchery and one of the broiler farms are located in an industrial area with a few irregular dwellings in the vicinity. Due to their high sanitary standards, no odor problems have been reported in these installations and nor are they likely to occur. The meat processing plant is situated in an industrial area within the city of Monterrey and does not produce air emissions at present. The proposed rendering facility will include a biofiltration system to control off gases containing biodegradable volatile organic compounds and inorganic toxic materials. This equipment will reduce the odor and render the emissions in compliance with Mexican air pollution regulations. Water for the poultry facilities is extracted from the company’s own wells and no process wastewater is discharged to external receptors. Domestic wastewater is disposed of in septic tanks. The meat processing plant uses water from the municipal system. Process and domestic wastewater is discharged to the sewers without treatment, which is acceptable to local authorities. However, a charge is levied by the Municipality according to flow and concentration of contaminants in the effluent. The project includes both a rendering facility to reuse organic material thus improving the characteristics of the effluent, and a wastewater treatment plant which will reduce the discharge charges and render it in compliance with international standards. Solid waste including eggshells and dead embryos from the hatchery are removed by a waste management company and disposed of in a municipal landfill. Other organic waste is sold for reuse as animal feed. Mortality waste from poultry farms is disposed of in anaerobic ditches which stabilize the waste and reduce its volume. The ditches are designed and operated so as to avoid leachate infiltration. Solid wastes produced at the slaughterhouse will be rendered for animal feed. Ayvi is preparing a waste minimization program for the meat processing plant in line with World Bank guidelines. Hazardous materials, which include pesticides, disinfectants, vaccines, and other organic substances, are stored and handled according to the manufacturer’s recommendations by trained personnel. Refrigeration equipment containing CFCs is used at the breeding house and the hatchery. The sponsor has committed to change the refrigerant in order to avoid the use of ozone-depleting materials. Refrigerators at the processing plant are run with ammonia and the equipment is regularly maintained in order to ensure a safe operation. Health, safety and emergency response procedures are appropriate for this kind of installations and they include training, safety equipment for employees and fire extinguishers. The poultry farms, meat processing plant and related facilities are managed according to Mexican sanitary regulations and there are no relevant health and safety issues associated with the project.4. Based on its review of available information regarding potential environmental impacts and proposed mitigation measures, IFC concludes that Grupo Ayvi’s proposed project will meet World Bank environmental, health and safety policies and guidelines and requirements of the Government of Mexico.5. 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 Grupo Ayvi and by conducting periodic supervision.\\StreetTalk\Shared Data@CAGNET@IFC\MEXICO\AYVI\Ers2.docMay 11, 1998 2:57 PM