Marsman-Drysdale Agribusiness Holdings, Inc.

completed

- 3 - INTERNATIONAL FINANCE CORPORATIONA MEMBER OF THE WORLD BANK GROUPINTERNATIONAL FINANCE CORPORATIONA MEMBER OF THE WORLD BANK GROUPENVIRONENTAL REVIEW SUMMARY (ERS)Project Name: PHILIPPINES: Drysdale FoodRegion: AsiaSector: Food and AgribusinessProject No.: 008468 1. This project involves the expansion and upgrading of a Philippine fruit and vegetable processing operation. The sponsor, Marsan-Drysdale Group, includes five agribusiness concerns. Three of these are engaged in banana production and one in asparagus and okra production in Mindanao, and one produces mangoes in Guimaras. This project will increase the banana plantation and asparagus production areas by 1216 ha, add 74 ha of okra and papaya production and upgrade the mango and asparagus processing facilities. 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. The review of this 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 Department staff. The following potential environmental, health and safety impacts of the project were analyzed:· proper treatment and disposal of liquid and solid wastes and gaseous emissions;· use and handling of agricultural chemicals and other hazardous materials throughout the production cycle;· use of CFCs in cooling and refrigeration equipment; and· fire protection and general worker health and safety.The information provided about how these potential impacts are addressed in the development of the project is summarized in the paragraphs that follow.3. Existing plantation areas are based on contract farming arrangements or are in the process of being transferred to smallholders under the government’s agrarian reform program. New plantation areas will be leased from the land owners, who will also be employed on the plantation if they wish.4. Wastewater in all cases consists of rinse water from fruit processing, with limited contaminants, and is generally used for irrigation purposes or disposed of on the plantation. The agricultural production facilities have all participated in a government waste minimization program and have implemented measures to reduce water use.5. Solid wastes from fruit processing include fruit stalks and trimmings and rejected product. Rejected product is sold to other buyers and the remainder is used as cattle feed or is composted or mixed with fertilizer and used as a soil amendment on the plantations.6. No air emissions are produced. No prohibited CFCs are used in any cooling equipment, and none will be installed as part of this project.7. Chemical pesticides are used for insect, fungus, nematode and weed control. Pesticide use is fully controlled, and the sponsor is committed to safe and appropriate use of chemical pesticides and is active in developing and implementing biological control measures as part of an integrated pest management approach. The company has established a biotechnology laboratory and employs a full-time scientist specialized in biological control of crop pests. The laboratory has developed new biological control methods for fungal and nematode infestation which are being field tested. The company is expanding its area of cropland which uses little or no agricultural chemicals in order to meet the market for organic produce. Pesticide use is tightly controlled and field applicators receive frequent training in handling and application by the government Fertilizer and Pesticide Authority (FPA). Pesticide use is regulated by this Authority and the company does not use any internationally banned or restricted pesticides. Pesticide handlers wear complete Personal Protective Equipment (PPE). Disposal of pesticide containers is carried out as regulated by the FPA. 8. Appropriate fire protection equipment is installed in all buildings and workers are trained in fire safety and participate in the fire brigade. The company provides training for all employees on environmental issues, occupational health and safety, and first aid. Environmental and health and safety issues are managed by the company’s Central Health and Safety Committee.9. 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 by the company and by conducting periodic supervision.10. Based on its review of available information regarding potential environmental impacts and proposed mitigation measures, IFC concludes that this proposed project will meet World Bank Group environmental, health and safety policies and guidelines and host country requirements.