Innova SA

completed

- 3 - June 23, 1998 International Finance CorporationA Member of the World Bank GroupInternational Finance CorporationA Member of the World Bank GroupEnvironmental Review Summary (ERS)Project Name BRAZIL - InnovaRegion Latin America and CaribbeanSector PetrochemicalsProject No. 008333 1. Innova is owned by Perez Companc International (PCI) of Argentina and the project involves takeover of an existing ethyl benzene plant in the Triunfo petrochemical complex and design, construction and operation of a 180,000 tpa styrene unit and a downstream 120,000 tpa polystyrene unit. The styrene units will use the ethyl benzene as raw materials.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 sponsors and the technical appraisal and site review completed by Chemicals, Petrochemicals and Fertilizers Department staff of IFC. The following potential environmental, health, and safety impacts of this project were analyzed:· site location;· potential for contamination from past operations;· air emissions;· wastewater treatment;· solid waste management;· socio-economic impacts;· plant safety; and· public consultation/information. Information provided on how these potential impacts would be addressed in the Innova project is summarized in the paragraphs that follow.3. The site is located within the Southern Petrochemical Complex (known as the Triunfo complex) 33 kilometers from Montenegro. The complex has a well established infrastructure and central systems for waste and wastewater management. The complex is known for its no effluent discharge policy implemented from the start of operation. There are no residences and no agricultural activities within the complex. The location is ideal for petrochemical production.4. The Triunfo complex has an established program for ground water monitoring. During tests in 1997 a minor ethyl benzene contamination was found near the existing ethyl benzene plant. The contamination is contained within the plant site and limited to concentrations of less than 100 PPM, which in turn is well below the level of water saturation. The clean-up of any contamination from the past is the responsibility of the previous owner. Innova and the local environmental authorities are, together with a certified independent consultants, working on a final site environmental audit thus allowing the previous owner to proceed with a clean-up plan preparation.5. Innova has efficient air pollution prevention equipment installed on the existing ethyl benzene unit and the new styrene/polystyrene units will also comply with local requirements and the World Bank guidelines. The furnace to support the production units has been planned for compliance with local requirements. Innova is now ensuring that the unit will be designed and/or ultimately operated so that the combined furnace emissions will meet the current World Bank guidelines of 50 mg particulate/Ncm, 500 mg SO2/Ncm, and 360 mg NOx/Ncm. The NOx requirement will be complied with by the use of low-NOx burners, the SO2 requirement will be complied with by the use of fuel with maximum 0.2 % of sulfur, and the particulate emissions will be complied with by designing furnaces to the best current international practices, in particular the PS furnace burner systems, and if eventually required, by fuel selection when natural gas will be available in Triunfo.6. The spent catalyst from the ethyl benzene plant will be recycled for use by tanning industries in their wastewater treatment. Innova’s wastewater will, after pre-treatment, be transferred to the central wastewater treatment facility (SITEL) within the Triunfo Complex. The SITEL facility treats all common wastewater generated at the Triunfo Complex, and dispose it of by infiltration within the complex area. The infiltration is controlled and aims at meeting the goal of no effluent discharge from the complex.7. The Innova production will have a limited generation of solid wastes. The wastes generated will be disposed of through the waste handling facilities established within the Triunfo complex.8. Innova will directly employ approximately 220 in the operation phase. Approximately 600 will be employed during construction.9. Innova’s existing ethyl benzene unit was certified according to both the ISO 9000 (quality management) and the ISO 14000 (environmental management) standards. This unit will be re-certified after start-up and the same certification standard will be followed for the new styrene and polystyrene units. Innova will adopt national and international standards (e.g. NIOSH, ACGIH, and OSHA) to ensure that employee health and safety will be satisfactory. Innova will also take advantage of the already well functioning emergency response system developed for the Triunfo complex. This system includes a Mutual Assistance Plan, whereby the individual industries will support each other during emergency situations.10. The Innova project was part of the original petrochemical complex planning, which included public consultation. This dates back to the late seventies and early eighties. The project, which was originally sponsored by the Copesul Company, has been known for many years. Innova has recently, as part of the construction permitting process, published their plans and applications. These newspaper advertisings (nine in the period August 5 – October 10, 1997) did not result in any public objection.11. 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 Innova and by conducting periodic supervision.12. Based on its review of available information regarding potential environmental impacts and proposed mitigation\\StreetTalk\Shared Data@CTENET@IFC\wpeu\NIELS\BRAZIL\INNOVA\FINAL ENVIRONMENTAL REVIEW SUMMARY.DOCAugust 12, 1998 2:36 PM