Industrias de Caju Mocita SARL

completed

- 2 -International Finance CorporationA Member of the World Bank GroupInternational Finance CorporationA Member of the World Bank GroupEnvironmental Review Summary (ERS)Project Name Mozambique-Industrias De Caju MocitaRegion Sub-Saharan AfricaSector AgribusinessProject No. 0070081. Industrias De Caju Mocita (Mocita) is majority owned by Anglo-American Company, a major South African mining financing house with widely dispersed ownership, and Oltremare SpA of Italy, a leading manufacturer of cashew processing equipment. Both companies were involved in the establishment of the original Mocita facility in 1966. The proposed project involves rehabilitation and re-equipping of an 8,000 tpa cashew processing factory converting wet in shell nuts to dry, graded kernels. The proposed project is located near Xai Xai.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:· site location;· air emissions;· liquid effluent treatment; · solid waste management;· ambient noise control;· fire prevention and emergency control; and· general employee training, and health and safety.Information provided on how these potential impacts would be addressed in the Mocita project is summarized in the paragraphs that follow.3. The site in located four kilometers from the center of Xai Xai and has in the past been used for cashew nut processing in an old factory, which is run down. There are no environmentally sensitive areas in the vicinity and the factory will only utilize 12 ha of the ±50 ha available at the site.4. Air emissions will mainly be from the factory boiler units. These units will utilize Cashew Nut Shell Liquid (CNSL) extracted from the cashew nuts during the processing. The CNSL is an 0-carboxy phenol derivative and contains no sulfur. The high efficient boilers will therefore have negligible SO2 and particulate concentrations in the flue gas and will be designed to comply with local requirements and World Bank guidelines for all other parameters.5. The facility will use an estimated 25 cubic meters of washwater per day. This water is suitable for irrigation of gardens and sports fields. Sewage water will be treated in a septic tank system. The septic tank system is built with a design capacity of 2500 person equivalents and is hereby having a significant over capacity with the planned staff accounting to approximately 700.6. The facility will produce an estimated 4,500 tpa of peels and nut rejects. These solid waste products can either be used as fuel in the form of briquettes, composted for reuse as fertilizer or incinerated. Mocita is seeking to enter into an agreement with a nearby ceramics factory to sell this waste for use as a fuel.7. The facility will only result in noise levels below 45 dBA outside the site boundary.8. Fire prevention will be included in the factory design and an emergency response plan will be developed and implemented before commissioning of the factory. The fuel storage will be established separated from the other facilities.9. To minimize employees exposure to CNSL, the facility will be equipped with mechanical shelling. CNSL will be pumped directly from the roasting section where it is produced to the separated fuel storage area. The boiler units which will utilize CNSL will be designed to avoid any escape of CNSL fumes and ensure complete combustion. A general occupational health and safety training program will be developed and implemented before commissioning of the factory.10. 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 Industrias De Caju Mocita and by conducting periodic supervision.11. Based on its review of available information regarding potential environmental impacts and proposed mitigation measures, IFC concludes that Industrias De Caju Mocita’s proposed project will meet World Bank environmental, health and safety policies and guidelines, and host country requirements.L:\WPEU\NIELS\MOZAMBIQ\MOCITA\ERS.DOCMarch 27, 1996 3:42 PM