RUPAFAB LTD.

completed

- 2 - April 28, 1995INTERNATIONAL FINANCE CORPORATIONA Member of the World Bank Group April 28, 1995 PAKISTAN: RUPAFAB LIMITED Environmental Review Summary1. The project will involve the construction of a new greenfield plant near Lahore, to produce 36 million linear meters/yr of textile goods. The plant will employ about 540 personnel and includes finishing, dyeing and printing operations. It will be located on a 425 hectare site in a new industrial area with available power and water; total area under cover for the factory buildings, warehouse, and other facilities is approximately 32,000 m2. The plant will use all new equipment and incorporate state-of-the-art technology and equipment throughout, including the dye kitchen. It will include the installation of a 2.5 MW power generator, as well as relatively small thermoil (HTO) and steam boilers, all of which use oil as fuel.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, 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 effluents; • spill prevention for fuel oil; • solid and liquid wastes; • fire prevention and emergency response; and • employee exposure to noise and hazardous substances.The information provided about how these potential impacts are addressed in the development of the proposed project is summarized in the paragraphs that follow.3. The power generator proposed by Rupafab will have an installed load of 2.5 MW, and thus is less than the 2.9 MW (10 million BTU/hr) threshold for application of the World Bank guidelines for stack emissions. The HTO boiler (11.2 million BTU/hr) and steam boilers (13.7 million BTU/hr) are expected to meet the World Bank guideline for SO2 (1,000 mg/Nm3) when operating on the planned 3 percent sulfur content oil.4. Fuel oil storage tanks will be enclosed within diked areas for spill containment. Wastes that can not be reused or recycled will be deposed of in accordance with local laws and regulations.5. Prior to plant start up, Rupafab will have in place an operational wastewater treatment plant. The waste treatment plant is designed to meet World Bank guidelines, including pH (6 to 9), BOD5 (50 mg/l), TSS (50/mg/l), COD (250 mg/l), and color (220 color units). The plant will include an aeration tank for inflow mixing, two biological treatment units, polymer and chemical flocculation dosing, and polishing sand filters. Sludge from the treatment process will be disposed of in accordance with local regulations.6. Rupafab will establish an Emergency Response Plan, and environment, health and safety (EH&S) policy and training programs prior to plant start up, in accordance local practice and requirements.7. Employees will be trained in accident prevention and in the use of personnel protective equipment when potentially exposed to hazardous materials or noise levels above 85dBA. The company will restrict hazardous operations and storage and use of hazardous materials to designated areas. Rupafab will employ other measures such as machine guarding and ventilation systems to ensure workplace safety.8. Based on its review of available information regarding potential environmental impacts and proposed mitigation measures, IFC concludes that the proposed project is being designed to meet Government of Pakistan requirements, and World Bank policies, and environmental, health and safety guidelines.9. IFC will monitor ongoing compliance with World Bank policies and guidelines during the life of the project by evaluating monitoring reports submitted annually to IFC by the sponsor and by conducting periodic site reviews during project supervision.L:\WPEU\JOHN\PAKISTAN\RUPAFAB.ERSL: