SEF Distribuidora Cesar Guerrero S.A.

completed

May 8, 1998Page 2Environmental Review Summary (ERS)Project Name Nicaragua: SEF - DicegsaRegion Latin AmericaSector PharmaceuticalProject No. 008994 May 8, 19981. Dicegsa is the largest distributor of pharmaceutical goods in Nicaragua. The project involves (a) the construction of a new warehouse and office headquarters complex to expand and modernise Dicegsa’s wholesale distribution operations, and to expand their distribution vehicle fleet and (b) the expansion and modernization of Dicegsa’s pharmaceutical production subsidiary, Ceguel S. A. which produces generic pharmaceuticals. 2. This is a category B project according to IFC’s environmental review procedure because a limited number of 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, health and safety impacts of the project were analyzed:· air emissions;· treatment and disposal of process effluent;· disposal of pharmaceutical related waste;· disposal of solid, and other liquid wastes, including sewage;· source of water and power, including fuel storage if applicable;· employee exposure to dust and noise· provision of personal protective equipment; · health and safety training for employees; and· fire safety.The sponsor has presented plans to address these issues and demonstrate the proposed project will comply with applicable governmental and World Bank requirements. The information provided about how these potential impacts are addressed in the development of the project is summarized in the paragraphs that follow.3. The Dicegsa site is located in approximately 9,000 sq m area in an industrial area in Managua. New area to be built includes 3,100 sq m. The Ceguel’s site is in the outskirts of Granada and occupies about 1,600 sq m. The project will not require any resettlement nor will impact sensitive habitats.4. The sponsor will operate the plant ensuring that there are no particulate emissions to the atmosphere. 5. Ceguel’s process waters are currently discharged into the municipal system without treatment. As part of the project, the sponsor has committed to install a wastewater treatment system and treat the wastewater to the level established in the World Bank guidelines. As a condition to first disbursement, the sponsor will be required to submit a wastewater treatment program for the Ceguel operations, satisfactory to IFC which includes the implementation schedule as well as the budgetary commitments. Dicegsa, which only generates domestic waters, discharges its liquid effluents to the city’s sewage system. 6. The sponsor will install an incinerator to burn the industrial solid residues. The domestic solid residues will be collected, removed by truck and properly disposed following the local regulations.7. The plant has filters to control the dust released to the work environment. Personal protective equipment will be provided to, and required to be used by the employees. Hard hats are provided for all personnel, and dust masks are provided for personnel working in areas with high dust levels.8. The company has emergency response plans and fire extinguishers throughout the plant. The company conducts periodic fire drills in coordination with the local fire department and trains the employees on emergency response measures. The company will train the employees in occupational health and industrial safety issues and will continue implementing occupational health and industrial safety programs to comply with World Bank guidelines.9. 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 Nicaragua requirements, and World Bank policies, and environmental, health and safety guidelines.10. IFC will also monitor Dicegsa’s ongoing compliance with World Bank policies and guidelines during the life of the project by evaluating environmental performance reports submitted annually to IFC by the sponsor and by conducting periodic site reviews during project supervision.\\StreetTalk\Shared Data@CTENET@IFC\wpeu\josefina\NICARAGU\dicegsa-ers.docMay 26, 1998 1:49 PM