Halim and Co.

completed

- 3 - International Finance CorporationA Member of the World Bank GroupInternational Finance CorporationA Member of the World Bank GroupEnvironmental Review Summary (ERS)Project Name Korea: Halim Region AsiaSector Food and Agribusiness Project No. 009111 1. This project involves the restructuring of finance in Korea’s largest broiler chicken production factory (approximately 82 million broilers pa). The operation includes hatchery and rearing facilities, slaughtering and rendering plants, meat processing and a feed mill. 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.2. Key environmental, occupational health and safety issues that were of potential concern in this project included:· air quality (including odor) from production units and boilers – in particular use of refrigerant materials and generation of particulate matter;· wastewater quality, management and discharge;· solid waste management and disposal; and · health and safety issues.The information provided about how these potential impacts are addressed in the development of the project is summarized in the paragraphs that follow3. Processing facilities are located in Iksan, a rural area approximately 200km south of Seoul. The project does not involve the construction of new plant or processing facilities and any changes to production or management will occur within the existing site boundaries.4. Air emissions from the meat processing facilities arise from a number of sources including, boilers, refrigeration plants and miscellaneous emissions from rearing facilities. Particulate emissions from boilers are recorded at 52mg/m3 and are within Korean environmental standards (150 mg/m3) but slightly above World Bank Group guidelines (50mg/m3). Replacement of existing particulate/dust collectors with electrostatic precipitators in the near future will allow compliance with World Bank Group guidelines. Sulfur dioxide and nitrogen oxide levels from boilers are within Korean and World Bank Group standards. 5. Particulate emissions from the feedmill, are controlled by filters and cyclones and resulting levels are within World Bank Group guidelines.6. Odor is controlled through the use of biological filters in the rendering plant and a combination of management and the use of ammonia absorbing microbial agents in the rearing facilities.7. The plant uses Freon gas as a refrigerant. Because of the potential ozone depleting nature of this substance, IFC will require that further details of use, control systems and details of proposed phase out arrangements, be provided as a condition of disbursement.8. Process water is drawn from boreholes and approximately 25% is recycled. All waste water receives comprehensive primary and secondary treatment on site prior to discharge and regular monitoring of discharge effluent is undertaken by the company. Waste water discharge complies with Korean standards and World Bank Group guidelines for liquefied effluents.9. Waste minimization, re-cycling and re-use are undertaken in the facility. By-products, feathers, food waste and egg shells are rendered and used as raw material for feed, and manure is used by farmers in the area as fertilizer. Waste plastics and sludge are disposed of by a licensed contractor. 10. The company operates an extensive health and safety program for employees which includes training, development of emergency plans, provision of protective equipment and regular (twice-annual) health checks. Detailed procedures control the use and disposal of all hazardous materials and there are comprehensive fire fighting/ control systems as well as certified hygiene standards throughout the plant.11. The company has prepared an environmental policy that has been endorsed by senior management and specific staff have been appointed to monitor environmental issues associated with the plant’s operation.12. IFC will monitor ongoing compliance with World Bank Group environmental, health and safety policies and guidelines during the lifetime of the project by evaluating reports submitted annually to IFC and by conducting periodic supervision.13. Based on its review of available information regarding potential environmental impacts and proposed mitigation measures, IFC concludes that Halim’s proposed project will meet World Bank Group environmental, health and safety policies and guidelines and host country requirements.L:\wpeu\Mark\Korea\Halim-ERS.docMay 22, 1998 5:00 PM