SEF Elma Cheese Factory Limited

completed

-2-May 25, 1999 Environmental Review Summary (ERS)Project Name Uzbekistan: Elma CheeseRegion Central Asia Middle East and North AfricaSector AgribusinessProject No. 0088321. This project involves the expansion of an existing cheese business, located about 40km from Tashkent, by setting up a second and larger plant, adjacent to the existing facility, in order to produce approximately 500 tpa of Gouda cheese for the local market.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. The following potential environmental, health and safety impacts of the project were analyzed· air emissions;· wastewater treatment and discharge;· solid waste management;· storage and handling of hazardous chemicals;· avoidance of the use of CFC’s in refrigeration systems;· fire protection and emergency response; and· general employee health and safety.The sponsor has provided information about how these potential impacts will be addressed and demonstrated how the proposed project will comply with applicable local regulations and World Bank policies and guidelines. This information is summarized in the paragraphs that follow.3. The new plant will be located about 10 km outside Tashkent in Zangiata region in the middle of a traditional dairy area. 4. Elma Cheese operations consists mainly of cheese production and brining and repining. The milk is standardized and pasteurized, cultures and additional materials are added, and pressing takes place. The milk is submitted to temperatures ranging between –5 degree Centigrade to 72 degree Centigrade.5. The sponsor will only uses electric power and has a gasoline powered boiler for steam production. The sponsor will operate this boiler ensuring that the air emissions will comply with World Bank guidelines. In addition, the feed silos will be covered to that there is no generation of fugitive emissions and thereby reducing the potential for accidental fires.6. Water will be obtained from the utility as well as ground wells. Elma Cheese will have its own wastewater treatment system which will be operated to ensure compliance with the applicable World Bank guidelines including pH between 6 and 9, BOD 50 mg/l, COD 250 mg/l, TSS 50 mg/, oil and grease 10 mg/, total nitrogen 10 mg/l, total phosphorus 2 mg/l, temperature increase less than 3 degree Centigrade, and coliform bacteria 400 MPN/100 ml.7. Manure and other wastes will be processed at the manure depositaries where is left to process naturally is then delivered to the fields and used as natural fertilizer. Process and domestic wastes will be collected and properly disposed in accordance to local requirements. 8. Elma Cheese will continue to use agrochemicals including fungicides and insecticides. These materials will be stored in a special separate warehouse located outside the project site. 9. The cooling systems to be used in the process are currently freon based refrigeration systems. When changes in these systems are required, Elma Cheese will phase out the freon based equipment and replace it with internationally acceptable refrigerants such as ammonia.10. The project will be equipped with fire prevention and protection systems including fire hydrants near the feeding areas, cheese factory and animal shelters and fire extinguishers. As part of the agreement with CEBECO, the international institution specialized in implementing agricultural projects assisting the sponsors with the project, CEBECO will train Elma Cheese employees on hygiene practices, and occupational health and safety matters. The employees using agrochemicals will be further trained and undergo special medical examination annually. In addition, the employees will be provided with and required to use personal protective equipment including gloves, respirators, and special clothes.11. Elma Cheese will annually submit to IFC a monitoring report to ensure ongoing environmental compliance during the life of the project. Elma Cheese’s monitoring reports will include monitoring results and current status for the following components, at a minimum:· project status including key developments or deviations from the original design;· treated liquid effluents concentrations;· annual statistics for occupational accidents and illnesses including number of employees, work hours and lost-time incidents;· rate of work related accidents and incidents;· interactions with the local communities; · significant incidents, if any; and· employee training programs.12. Based on the review of the available information regarding potential environmental impacts and proposed mitigation measures, IFC concludes that the proposed project is being designed to meet Government of the Uzbekistan requirements, and World Bank policies, and environmental, health and safety guidelines.13. IFC will monitor Elma Cheese’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.