P.T. DHARMALA AGRIFOOD

completed

- 2 - November 20, 1995Environmental Review Summary (ERS)Project Name Indonesia-Pt Dharmala AgrifoodRegion AsiaSector AgribusinessProject No 0050651. Pt Dharmala Agrifood (Dharmala) is a poultry and egg-layer operator on Java. This project is to invest in an expansion of Dharmala’s poultry and layer operation and later investment in a poultry slaughter and processing facility. The expansion program includes construction of new hatcheries, broiler and parent stock farms and feed mill expansion.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 information submitted by the project sponsor and the technical appraisal and site review completed by IFC’s Agribusiness Department staff. The following potential environmental, health and safety impacts of this project were analyzed:· environmental impact assessments;· air emissions;· liquid effluents;· solid waste management; and· general employee training, health and safety.Information provided on how these potential impacts would be addressed in the Dharmala project is summarized in the paragraphs that follow.3. As part of Indonesian procedures for establishing industrial activities an environmental impact assessment (EIA) has to be prepared. Therefore, Dharmala has prepared EIA’s prior to building their breeder farms and hatchery. The EIA’s cover background information on the projects, environmental monitoring plans and goals, description of expected environmental impact and applied mitigation measures, and implementation and monitoring schedules. The EIA’s has been reviewed by the Indonesian Authorities and the plans found satisfactory for compliance with local requirements. The facilities will also comply with World Bank guidelines. An EIA for the slaughtering and processing facility will also be prepared and reviewed for compliance before this part of the investment will be initiated.4. Air emissions from the breeder houses and hatchery are minimal and comply with both local requirements and World Bank guidelines.5. Liquid effluents will be treated on site by septic tanks and small pond systems before discharge. The wastewater treatment system for the coming slaughter and processing facility will be integrated into the plant design and will result in an effluent complying with both local requirements and World Bank guidelines.6. Organic waste from the poultry operations, except the slaughter and processing facility, will be used as fertilizer where possible. Other solid waste will be landfilled. Waste related to medical use or vaccination will be destroyed by incineration.7. Personal protective gears are provided where relevant and a safety organization will be established for the slaughtering and processing facility before start-up.8. 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 Dharmala, and by conducting periodic supervision.9. Based on its review of available information regarding potential environmental impacts and proposed mitigation measures, IFC concludes that Pt Dharmala Agrifood’s proposed project will meet World Bank environmental, health and safety policies and guidelines, and host country requirements.