Ransa Comercial S.A.

completed

Environmental Review Summary (ERS)Project Name: PERU: RANSARegion: Latin America and the CaribbeanSector: Food and AgribusinessProject No: 009248 1. Ransa is an integrated logistic and service company based in Lima, which specializes in the handling, storage and distribution of grains, food and other general cargoes. The company is expanding its activities and the project will finance the development of a new warehouse and distribution center in Callao near Lima to improve the food products distribution system in Lima and more widely in Peru.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 appraising technical and environmental information submitted by the project sponsor. The following potential environmental, social, health and safety impacts of the project were analyzed:· site selection issues (including any past or present land uses which might affect new or existing sites);· compliance with World Bank Group requirements for air emissions, liquid effluent treatment and disposal, and solid waste management;· employee working conditions; and · handling and storage of any hazardous chemicals;· environmental management capacity.The information provided about how these issues and potential impacts have been addressed in the development of the project is summarized in the paragraphs that follow.3. Site selection issues: The company intends to relocate its existing warehousing and logistics center from Av. Argentina to a new purpose built site near the port of Callao. The new warehouse and logistics center site (600,000m2) is designated as industrial development land and was acquired in 1997. Previous land use included horticulture and in addition there were 15 households (representing 140 individuals) who had settled on the land without the permission of the owner (Sociedad Agricola San Agustin). During the acquisition process, SASA negotiated compensation with its tenant farmers which process was completed by July 1 1997. Ransa supervised this process to ensure that tenants received fair compensation. With regard to the squatter families, Ransa negotiated directly with the 15 households and provided compensation for loss of earnings, loss of improvements and costs incurred in relocating them. This process was documented at the time it occurred and subsequently formed the basis of the Resettlement Plan (RP) prepared by the sponsor and which has been submitted to IFC. A summary of the RP is attached to this ERS and the entire document is available at the World Bank infoshop in Washington DC and also locally in Lima as part of the disclosure process for this project. 4. Compliance with World Bank Group Environmental and Social Requirements: Electricity for the new warehouse is supplied from the national grid and there is no on-site generation. There are no refrigeration facilities and sources of air emissions are insignificant. Liquid waste from the site will comprise septic waters, which will be discharged to the municipal sewer. There will be no process or significant wash water discharges from this facility. Solid waste from the warehouse will comprise some organic matter, office materials, broken pallets and plastic. This material is collected, sorted on site and recycled (plastic, wood, paper) or disposed of to landfill. The project will be in compliance with relevant World Bank Group environmental guidelines.5. Handling and storage of any hazardous chemicals: The warehouse will not be used for the storage of hazardous chemicals or materials and the only hazardous chemicals on site are small quantities of pesticide which are used to control vermin and insects. Pesticide use is well managed and in compliance with WBG requirements. 6. Employee working conditions: The company complies with Health and Fire Department regulations in respect of health and safety at work. Staff receives training in first aid, fire fighting and emergency response (evacuation etc) and the company is in compliance with World Bank Group requirements.7. Environmental management capacity: Ransa has commissioned local consultants to provide independent advice on environment and health and safety and to assist the company in the implementation of quality management (ISO 9002 and HACCP) objectives as well as an environmental management system ( ISO 14002). The sponsor subscribes to a company wide environmental policy, which promotes local environmental management (protection and promotion of green spaces and cleaning of local buildings).8. IFC will monitor ongoing compliance with World Bank Group environmental, social, health and safety policies and guidelines during the lifetime of the project by evaluating reports submitted annually to IFC by RANSA and by conducting periodic supervision. In particular, IFC will require annual confirmation of:· compliance with WBG requirements;· progress in developing and implementing the environmental management system.9. Based on its review of available information regarding potential environmental impacts and proposed mitigation measures, IFC concludes that RANSA''s proposed project will meet World Bank Group environmental, social, health and safety policies and guidelines and host country requirements.RANSA: RESETTLEMENT PLANSUMMARY OF MAIN REPORTIntroductionRansa''s proposed project involved the acquisition of land near Callao and also the relocation of houses and other assets. As a result, a resettlement plan was required by the International Finance Corporation (IFC) in accordance with World Bank Group Policy The relevant policy in this instance is OC 4.30 - Involuntary resettlement - which describes the circumstances (including those relating to economic displacement) in which a resettlement plan is required.. This short document summarizes information and details in a resettlement plan (RP) provided by Ransa to IFC in April 1999. The full RP has been disclosed locally in Spanish and is also available at the World Bank infoshop in Washington DC.Summary of Compensation Package and ArrangementsPrior Land UseThe new headquarters of Ransa Comercial SA is located on the Av. Nestor Gambeta, level with the right bank of the mouth of the Rimac River in the Province of El Callao, Lima. The area, known as the Ex-Fundo Agricola San Agustin, was purchased from the Sociedad Agricola San Agustin (SASA).Most of the area was previously used for horticulture and the largest portion was used by SASA, although seven other parcels were rented out. In addition, along the Av. Centenario, which divides the property, 15 households were settled on two small plots of land, which they had occupied without the permission of SASA.Resettlement ArrangementsRansa’s resettlement plan involved two distinct procedures:Those relating to Tenant Farmers in which SASA negotiated with the tenants who were renting the agricultural plots, and indemnified them for their improvements and loss of earnings. This was supervised by Ransa to ensure that the tenants were fairly compensated. The purchase agreement required SASA to negotiate a settlement with the seven legally recognized tenants to ensure that they left the property and were fully compensated for their improvements and loss of earnings. Once all the tenants had received payment, Ransa reimbursed SASA for the sums outstanding. All the tenants had been compensated by 1 July 1997. In the case of the informal settlements, Ransa negotiated directly with 15 squatter households (represented by 22 adults – for a total population of 140 individuals) who were occupying land along the Av. Centenario and indemnified them for the loss of their housing and other structures, loss of earnings, and the cost of their moving to other areas in the city. They were compensated for the loss of improvements, loss of earnings and the cost of transporting them and their goods to the sites where they were resettled. Each household signed a formal agreement with Ransa, accepting the compensation offered. The levels of compensation were based on the size of the area they had been occupying, plus payments for pigs. The inhabitants of the informal settlements were willing to accept cash payments as they could use the money to purchase houses or plots in the vicinity. Compensation packagesTenant Farmers. The payments were negotiated on the basis of a cost per square meter, and details of parcels, area and amounts paid are detailed below.NameParcelArea m2CompensationRoque Leon B1065510,000US$ 15,000US$ 25,000Claudia Gutierrez1065633,516US$301,644Emilio Santana106884,27438,466Jose Oshiro1069110,000US$ 40,000Jorge Furugen1069224,900US$ 67,726Julio Matsubara (*)106941069554,21059,000US$ 216,840US$ 236,000Roque Leon Bardales (*)10,69310,69037,7692,376US$ 181,078US$ 9,504(*) These individuals farmed two plots of landInformal Settlements. The payments were generally negotiated on the basis of a cost per square meter, and details of area and amounts paid are detailed below.Affected Households/AdultsAreaCompensation Variation in compensation arrangements reflects the type of housing, other constructions and location of plot.1. Miguel Yupanqui(*)S/60,7502. Juan Huayhua Ana de Huayhua(*)US$ 24,782+ S/ 6,000 (pigs)3. Elar Hilartaype Marta Zevallos1,500 m2US$ 4,5004. Patricia Bejar14,500 m2US$ 150,0005. Bonifacio Gallardo3,437 m2US$ 13,7506. Simeon Carrasco3,500 m2US$ 7,0007. Simeon Carrasco, Benito Carrasco, Ricardo Castro, Cipriana Castro, Juana Castro2,403 m2US$ 7,000 each8. Luis Castro, Edelmira de Castro2,817 m2US$ 29,5859. Clara Choque de Y5,100 m2S/125,00010. Evangelina Vasquez5,000 m2US$ 35,00011. Abel Zelaya5,000 m2US$ 35,00012. Alejandro Blacido5,000 m2US$ 35,00013. Pedro Pariona5,000 m2US$ 35,00014. Carlos Zevallos1,500 m2S/ 9,450+ S/ 2,700 (pigs)15. Maria Zevallos de R800 m2S/ 9,500+ S/3,350 (pigs)(*) The extent of land in these two instances was not determined, but agreed package covered compensation for loss of buildings. Land use and loss of earnings