Packages Group/Printcare (Ceylon)

completed

Environmental Review Summary (ERS)Project Name Sri Lanka: Packages Lanka (Private) LimitedRegion AsiaSector ManufacturingProject No. 7709November 20, 19961. This project involves the establishment of a greenfield flexible packaging facility in Sri Lanka, incorporating printing lines and facilities for lamination, coating, bag making and related operations. The project will produce a range of custom-made flexible packaging, including printed/laminated plastic and paper-based materials for various consumer products including foods, beverages and health care products. Total project cost is about US$10 million of which IFC has been asked to provide equity financing of up to US$1.4 million. This is a category B project according to IFC''s environmental review procedure because a limited number of specific impacts may result which can be avoided or mitigated by adhering to generally recognized performance standards, guidelines or design criteria.2. Key environmental and occupational health and safety issues that were of potential concern during IFC’s environmental review of this project included: · air emissions, liquid effluents and solid wastes:· site selection;· general worker health and safety including protection from noise; and· fire protection and emergency response.Following is a brief summary of IFC’s findings during its environmental review of the project. Primary sources of information included information on design specifications provided by the project sponsor.3. The plant site is located in an industrial area. No resettlement is involved from this site. The sponsor has undertaken a soil and groundwater sampling program to check on current environmental quality. No liquid effluents are produced from the printing process. Sewage and waste water from the canteen and wash facilities will be treated in a septic system and discharged into the local sewage collection system. Solvent-based inks are used for plastic printing, and will generate limited amounts of solvent vapors which will be vented to the atmosphere with the exhaust from the printing presses. The plant will include a diesel generator for electricity generation, with appropriate silencing devices. Stack height will meet local environmental standards. All liquid and gaseous emissions from the plant, including generator emissions, will be within applicable World Bank guidelines4. Solid wastes will include side trims (unprinted material) and process waste generated in the printing, lamination, and bag-making operations (printed waste). The unprinted material will be recycled in-house. The printed waste is sold to outside recyclers who remelt the plastic for reuse or shred it for use as packing material.5. Procedures for protection of general health and safety will be incorporated into plant operation. Fire prevention measures should be implemented, particularly in raw material storage areas. Significant adverse impacts on the environment and worker health and safety are not expected from this project. The sponsor will meet all applicable World Bank guidelines for employee health and safety.6. On the basis of this review, the Environment Division has concluded that this project will comply with local environmental regulations and relevant World Bank environmental and health and safety guidelines. IFC will monitor ongoing compliance with World Bank policies and guidelines during the life of the project by evaluating environmental performance reports submitted annually to IFC by the sponsor and by conducting periodic site reviews during project supervision.