PT Ades Alfindo Putrasetia

completed

- 2 - International Finance CorporationA Member of the World Bank GroupInternational Finance CorporationA Member of the World Bank GroupEnvironmental Review Summary (ERS)Project Name: Indonesia- AdesRegion: AsiaSector: Food and AgribusinessProject No.: 008275May 15, 19971. This project involves the expansion of an existing water and beverage production company in Indonesia. The company, P.T. Ades Alfindo Putrasetia, has 9 factories and 17 warehouses. The expansion program will include: establishment of a new bottled water facility in Ujung Pandang, Sulawesi; expanding and upgrading of the existing bottled water facilities; establishment of a distilled water plant in Cibinong, West Java; adding new capacity for juice and tea-based products in West Java and Surabaya; providing PET packaging production facilities in 6 centers; and establishing new distribution centers. 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:· air emissions;· liquid effluent treatment;· solid waste disposal;· site selection criteria and integrity of the water supply;· fire prevention and emergency response; and · environmental and health and safety performance of existing operations.The information provided about how these potential impacts are addressed in the development of the project is summarized in the paragraphs that follow.3. There are no significant air emissions produced by these plants. Power supply in all cases is provided by the state-owned electrical authority. The plant at Cibinong has one small boiler, operated on light fuel oil, which is used to produce hot water for bottle washing. Electrical heaters are used elsewhere.4. Liquid process effluent consists of limited quantities of wash water. At the largest Surabaya plant, liquid wastes are handled by the treatment system established for the industrial estate. At the Rungkut plant in Surabaya, this water is discharged to a fish pond. At the remaining plants, liquid effluents are discharged to a percolation pit or absorber well with sufficient capacity for this waste stream. Sanitary wastes are discharged to septic tanks in all cases. Ades will ensure that any future liquid effluents will meet both Indonesian regulations and World Bank guidelines.5. Solid waste is largely packaging waste, including plastic, paper and glass. This is all sold to a local recycler. Cooling equipment includes small refrigerators and air conditioning units. No new cooling equipment containing CFCs will be installed, and existing cooling equipment which uses CFCs, if any, will be replaced as part of normal equipment maintenance over the next five years. No PCBs are currently believed to be used in any electrical equipment and none will be used in any systems installed as part of this project6. The new plant to be established in Ujung Pandang will be in a new industrial estate. The water supply for this plant will be a combination of well and spring water, located 60 km away, and will be trucked to the plant. In the existing plants, water supply is from either deep wells (approximately 100 m) or from springs. Water quality in all cases is monitored on a monthly basis to guard against contamination of these sources.7. Fire protection and warning systems in all plants currently include fire extinguishers and hydrants, and these will be brought up to international standards as part of this project, with particular attention to packaging and storage areas.8. Ades currently provides health and safety training to all new employees, and supplements this with additional training as required. An environment, health and safety officer is appointed for each plant. The sponsor has committed to ensuring that all new and upgraded facilities will fully meet all of the World Bank’s guidelines for environment, health and safety.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 P.T. Ades Alfindo Putrasetia and by conducting periodic supervision.10. Based on its review of available information regarding potential environmental impacts and proposed mitigation measures, IFC concludes that the proposed project will meet World Bank environmental, health and safety policies and guidelines and host country requirements.L:\WPEU\PNEAME\INDONESI\ADES.ERSMay 16, 1997 9:37 AM