Nghe An Tate & Lyle Ltd.

completed

- 2 - International Finance CorporationA Member of the World Bank GroupInternational Finance CorporationA Member of the World Bank GroupEnvironmental Review Summary (ERS)Project Name VIETNAM: Nghe An Tate & Lyle SugarRegion AsiaSector AgribusinessProject No. 0078521. This project is to build a “greenfield” 6000 mt cane per day capacity sugar mill in the Nghe An Province of the north central coastal region of Vietnam. Nghe An Tate & Lyle Sugar Company Ltd. (NAT&L) will produce refined and plantation white sugars, as well as molasses byproduct, from 6,000 mt per day of raw sugar cane to be supplied from local sugar cane smallholders/growers within a 35 km radius of the site. Previously mainly used as agricultural land, the 60 ha site is located about 15 km west of Thai Hoa, and is bordered by Highway 48 on the south and the Song Bee River to the north. NAT&L will also invest in farmer training; introduce higher yielding seed varieties and modern planting techniques; develop efficient harvesting methods; and establish a modern cane collection system The project will benefit from an IBRD-funded upgrade of main roads serving the plant and cane growing areas which the Government of Vietnam is responsible for implementing.2. The plant will employ tandem milling technology whereby mill white sugar will be produced via the sulphitation method. Refined sugar will be produced by re-melting mill white sugar, filtering the liquid and recrystalizing it. The plant’s bagasse-fired boilers will be powered by the combustion of the fiber residue of sugar cane and will permit the occasional use of fuel oil. There are no known environmentally sensitive areas or endangered plant and animal species within or around the site. There is a small village nearby.3. 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 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:· site location;· air emissions;· liquid effluents;· solid waste and solid waste recycling;· employee training, health and safety.The sponsor has presented plans to address these issues and demonstrate the proposed project will comply with applicable Government of Vietnam laws and regulations and World Bank requirements. The information provided about how these potential impacts are addressed by NAT&L is summarized in the paragraphs that follow.4. There are two major air emissions of concern: particulate matter from general milling and bagasse combustion operations, and sulfur oxides from the combustion of fuel oil. NAT&L will install and operate two wet scrubber units to ensure particulate emissions will not exceed a level of 100 mg/Nm3 in the stack gas from the mill. In addition, the sulfur content of any fuel oil burned in the plant’s boilers will be monitored to ensure that SO2 emissions will not exceed 1000 mg/Nm3.5. Process wastewater and scrubber effluents will be collected and biologically treated in a two-stage anaerobic pond facility followed by a system of artificial wetlands. Some treated effluents will be recirculated through the factory process; the remainder will be discharged to the Soon Bee River. The discharge quality of 20 mg/l of BOD5 will meet World Bank guidelines for sugar mill effluent discharge (50 mg/l).6. The solid wastes generated by the plant include bagasse, cane filter mud, boiler ash, and scrubber sludge. Bagasse will be recycled as fuel for the plant’s boilers. The other waste materials will be returned to and spread on local cane growing fields as a fertilizer supplement.7. NAT&L will implement a workplace health and safety policy commensurate with Tate & Lyle procedures worldwide. Training programs for all level of employees will be provided, and safety equipment and protective clothing will be issued to personnel required to work with hazardous substances (e.g., caustic soda for pressure vessel cleaning) and in dangerous areas. Equipment will be designed to limit noise to less than 85 dBA in the workplace. Safe storage for chemicals and flammable liquids will be provided, and an emergency response plan will be developed.8. Based on its review of available information regarding potential environmental impacts and proposed mitigation measures, IFC concludes that NAT&L’s proposed project will meet World Bank environmental, health and safety policies and guidelines and the Government of Vietnam’s requirements.9. 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 NAT&L and by conducting periodic supervision.P:\CTEEU\NAT&L.ERSApril 2, 1997 2:45 PM