Grupo Industrial Bimbo, S.A. de C.V.

completed

- 2 - September 7, 1995International Finance CorporationA Member of the World Bank GroupInternational Finance CorporationA Member of the World Bank GroupEnvironmental Review Summary (ERS)Project Name Mexico-Grupo Industrial Bimbo, S.A. (GIBSA III)Region Latin America and CaribbeanSector Food and AgribusinessProject No 0070531. Grupo Industrial Bimbo, S.A. (GIBSA) is Mexico’s established leader in the production, marketing and distribution of bread products in Mexico. The proposed project involves an investment in Grupo Industrial Bimbo, S.A. de C.V.''s ongoing expansion program.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 Technical and Environment Department staff. The following potential environmental, health and safety impacts of this project were analyzed: • environmental policies; • air emissions; • liquid effluent treatment; • solid waste management; • ambient noise control; and • general employee training, and health and safety.Information provided on how these potential impacts would be addressed in the GIBSA project is summarized in the paragraphs that follow.3. The GIBSA group is Mexico’s largest food company with a well established leadership structure including environmental policies and the strength to implement the policies. 4. To keep air emissions as low as possible, GIBSA’s bakery ovens are using natural gas or LP gas for heating. GIBSA has also converted 3,100 vehicles from gasoline to gas engine combustion. GIBSA’s flour milling facility is equipped with up-to-date dust control systems and emissions are well below average for similar installations and in full compliance with both local requirements and World Bank environmental guidelines.5. GIBSA’s operations are basically dry or low effluent operations. The main part of the facilities are therefore discharging to municipal wastewater treatment systems. However at five facilities this has not been possible and GIBSA has installed its own facilities. Where wastewater is treated on-site, recycling (e.g. potato cleaning) or site irrigation is introduced. A typical effluent quality from the bakery division has BOD of 24 mg/liter, TSS of 12 mg/liter, oil and grease of 8 mg/liter, pH of 6.9 and coliforms MPN of 32/100 ml after treatment. All effluent is in full compliance with local requirements and World Bank environmental guidelines.6. GIBSA’s production facilities are only generating low amounts of solid waste and organic solid waste is recycled as animal feed.7. Ambient noise is kept under control at GIBSA. All facilities, including the milling facility, are having ambient noise levels below 55 dBA. Inside the facilities hearing protection is obligatory where the noise level can not be kept below 85 dBA.8. GIBSA has prepared a CD ROM on plant ecology for its employees in order to train and help them practice environmental safety. Plant safety and hygiene evaluations are conducted routinely. The company keeps records of the outcome of the evaluations and are setting goals for reducing the number of accidents per workinghours.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 GIBSA and by conducting periodic supervision.10. Based on its review of available information regarding potential environmental impacts and proposed mitigation measures, IFC concludes that GIBSA''s proposed project will meet World Bank environmental, health and safety policies and guidelines, and host country requirements.L:\WPEU\NIELS\MEXICO\BIMBO\ERS.DOCSeptember 7, 1995 2:23 PM