SEF Agro Investment Company S.A.

completed

- 3 - May 27, 1997International Finance CorporationA Member of the World Bank GroupInternational Finance CorporationA Member of the World Bank GroupEnvironmental Review Summary (ERS)Project Name SEF-GUINEA: Agro Investment Company (AIC)Region Sub-Saharan AfricaSector FruitsProject No. 008345 May 27, 19971. AIC owns approximately 150 hectares (ha) of land in Fandie, 135 km from Conakry. The company has been in operation a little over a year and currently produces melon and watermelon for export to Europe during off-season. AIC started operations using traditional overhead irrigation methods, but later brought in a melon consultant from Israel who recommended that drip irrigation would be better suited to local climate and soil conditions. Use of drip irrigation is expected to improve the quality of the product, increase yield per hectare from 20 to 35 tons, and make the company more competitive in its export markets. As a first step in the expansion program, the company has experimented with drip irrigation on a plot of 20 ha to determine what kinds of results could be achieved. This initial experiment has proven successful and AIC now wants to expand drip irrigation to an additional 60 ha. The project consist of switching technologies for irrigation to better control the quality of fruits produced as well as to increase the yield per hectare.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 the 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 staff. The following potential environmental, health and safety impacts of the project were analyzed:· chemical and fertilizer handling and application;· integrated pest management;· provision of personal protective equipment and employee training;· regular medical check-ups for employees handling chemicals;· chemical container disposal;· source of water and power supply; and· disposal of solid and liquid wastes, including sewage.Key environmental, health and safety issues in regard to the irrigation scheme include:· impacts on riverine and/or groundwater hydrogeology (if applicable);· impact on river flow and other water users, including fisheries and subsistence fishing (if applicable):· increase waterborne diseases (if applicable);· restoration of land disturbed during construction; and· general worker safety during construction.The information provided by AIC about how each of these potential impacts will be addressed in the development of the proposed project is summarized in the paragraphs that follow.3. AIC will store its pesticides and chemicals in separate areas which will be at all times locked and guarded. All fertilizers and pesticides will be stored in adequate containers with clearly identifiable labels showing content, expiration date, health hazards, and first aid measures in case of accidental exposure or ingestion. AIC will have a specialized team for the sole purpose of pesticide application. Spraying programs will be established at AIC’s plantation facilities. AIC will use solar desinfection during the months of July, August, and September.4. AIC will provide its employees with personal protective equipment appropriate for the different risk areas at the site. Respiratory devices as appropriate will be provided and used by all handlers and applicators of pesticides. The sponsor will also provide employees handling chemicals with regular medical check-ups. The eating areas for employees will be separated from work areas where pesticides are present and adequate washing facilities will be made available to employees.5. The Republic of Guinea does not provide services for recycling or return of use chemical/pesticide containers. AIC will rinse its containers and burn the outer cartons of the container. The cleaned containers will then be crushed and buried on an appropriate and safe area designated by local authorities.6. Water for irrigation purposes will be supplied by two (2) water streams, on which AIC has built an earth dam with an overflow. The dam was constructed in agreement with land owners, surrounding villages and local authorities. AIC will reinforce the works on the dam prior to heavy rains. Water sources will be checked and analyzed before and after each rain. The water for the packhouse and for domestic use will be supplied by a 5 meter deep open well. The water will be purified by an ultra-violet purification system.7. AIC will produce approximately 20 tons/year of damaged fruits, which will be considered waste. The damaged fruits will be composted in a designated area. Domestic waste and sewage will be disposed of into septic tanks.8. AIC will train its employees on hazards, precaution, safe storage and handling of potentially harmful materials. New employees will work initially under the supervision of a trained and experienced employee. The facility will have a first aid clinic.9. The land selected by AIC for its plantation is considered a typical slash and burn farming used by local farmers for rice production. AIC has selected the flat areas appropriate for the drip irrigation. AIC has undertaken an environmental audit performed by FESA Ltd., as part of the importers treaty. Based on the environmental audit, AIC will replace some of its Internationally accepted pesticides for milder products. Also, an Integrated Pest Management (IPM) will be implemented. The IPM will include; pest scouting and monitoring procedures utilizing pest thresholds, use of tolerant and resistant varieties, crop rotation and solar soil desinfection, sound nursery and field hygienic practices, use pest specific insecticides, and insect growth regulator insecticides. 10. Based on its review of available information regarding potential environmental impacts and proposed mitigation measures, IFC concludes that AIC proposed project will meet World Bank environmental, health and safety policies and guidelines and host country requirements.11. 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 AIC and by conducting periodic supervision.L:\WPEU\ROSA\SEF\GUINEA\AIC1.ERSMay 27, 1997 3:25 PM