Messer Gases Dikheila Company S.A.E.

completed

Environmental Review Summary (ERS)Project Name EGYPT: Industrial Gas Center (IGC)Region CamenaSector Industrial GasProject No. 008006 1. This project involves a joint venture company, Industrial Gas Center (IGC), which will own and operate an air separation plant and cylinder filling station on the premises of Alexandria National Iron and Steel Co. (ANSDK), and integrated steel mill in El Dikheila. The main sponsors are ANSDK and Messer Griesheim (MG), a German company and one of the leading global industrial gas companies. The plant’s capacity of 2,000 Nm3/hr of oxygen, 4,300 Nm3/hr of nitrogen and 70 Nm3/hr of argon will be sold to ANSDK and the local market. Distribution equipment and road tankers owned by IGC will serve customers in the proximity of the plant. IFC has been approached for a loan of US$4.0 million and an estimated equity of US$1.2 million.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 the appraisal of technical and environmental information submitted by the project sponsor and completed by IFC’s Environment Department staff. The key environmental, health and safety issues considered in this project include:· hazard assessment;· employee exposure to the presence of high pressure gases and heavy steel cylinders;· equipment safe guarding; and· fire prevention and emergency response.The sponsor has presented plans to address these issues and demonstrate that the proposed project will comply with applicable governmental and World Bank requirements. The information provided about how these potential impacts are addressed in the development of the project is summarized in the paragraphs that follow.3. Liquid oxygen, nitrogen and argon are stored in low pressure tanks, which are equipped with trailer filling facilities. Gaseous nitrogen is produced in a low pressure column, warmed up in the heat exchanger and blown to the atmosphere, as there is no further use for. Corrosion of the tanks will not likely occur, since the liquid gases are very dry and will only be warmed up for inspection. MG will install double wall pressure vessels with inner shell made of cryo-steel, the space between the outer and inner shell will be filled with insulating materials. Occasional ruptures of pressure bearing vessels and pipes will be minimized by providing accurate design of the pressure system via safety valves. The spill of liquid gases by rupture of hoses between tanks and trucks will be prevented by “dead man protection circuits”, which stops the supply pumps immediately when the operator leaves the pump. 4. There are no effluents produced in the process, other than used cooling water. The contamination of water by machinery oil will be prevented by installing an oil separator, that will be surveyed and maintained periodically. Domestic sewage will be discharged into the community sewage treatment facility. Solid waste in the form of molesieve adsorber and/or dust filters will be collected by an authorized company for their proper disposal. The used oil and the dirty scouring cloths will be collected in special containers and disposed of at the waste collecting facility in the community for final disposal.5. Asbestos and PCB’s will not be used in the installations or equipment at the facility. Ozone depleting substances will not be used or produced at the facility.6. A hazard assessment (Hazop) plan is in place, that includes, the sources of hazard associated with the handling of chemicals, and the circumstances and situations in which accidents are possible.7. The general safety at the facility will be designed according to the German and International rules and regulations. This regulations applies not only to the design of equipment, but also to the regulations of accident prevention. This regulations need to be applied in nitrogen and oxygen plants. The electrical equipment, pressure vessels, tanks and pipes will be grounded. Additional ventilation and fire detection systems will be installed within the instrumentation, electrical controls and analyzer room and machinery hall. Areas where the lack of breathing oxygen should appear will be equipped with MAG air quality monitoring systems. This systems will display warning signs of bad air quality through a signal lamp. Ambient noise will be minimize by means of civil engineering works, so that World Bank values for ambient noise will not be exceeded.8. Personnel will be trained on the job during installations and checking of equipment. The sponsor will also provide training courses in different areas, including safety operations before start up and operation of the equipment. 9. A fire protection and life safety plan as required by the local fire department will be implemented. Extinguishers and other fire fighting equipment will be installed and placed according to the fire department recommendations. The sponsor has developed a Hazop emergency response and evacuation plan. The plan will address emergency response coordination with local authorities, personnel training and regular drills to address emergency situations of various magnitudes. 10. The project has been deemed consistent and in compliance with local zoning laws, land use practices and local sanitation and environmental requirements. Prior site use did not involve practices that may have caused land contamination. No family or business relocation will be necessary.11. 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 IGC and by conducting periodic supervisions.12. Based on its review of available information regarding potential environmental impacts and proposed mitigation measures, IFC concludes that the proposed project is being designed to meet Government of Egypt requirements, and World Bank policies, and environmental, health and safety guidelines.L:\WPEU\ROSA\EGYPT\IGC.ERSMarch 26, 1997 2:17 PM