SEF IMACASA II

completed

- 2 - August 3, 1998International Finance CorporationA Member of the World Bank GroupInternational Finance CorporationA Member of the World Bank GroupEnvironmental Review Summary (ERS)Project Name SEF-EL SALVADOR: Implementos Agricolas Centroamericanos S.A. II (Imacasa) Region Latin America and CaribbeanSector General ManufacturingProject No. 009038 1. Imacasa is among the largest manufacturers of agricultural hand tools in Central America. The production process includes: (a) cutting metal sheets, (b) heating of metals and molding into tool forms, and (c) finishing of products, including sharpening, painting and installing of handles. This project includes (i) the expansion of the company’s manufacturing facilities, (ii) the purchase of new machinery for a production line to manufacture machetes with different characteristics, (iii) the sale of US$1.2 million of Imacasa shares. 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:· liquid effluent treatment;· solid waste handling and disposal;· air emissions; · fire prevention and emergency response;· employee protection from heat, noise, dust, and hazardous chemicals.The information provided by Imacasa 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. The project site has been occupied by the company for 30 years, consisting of 10,000 square meters of covered industrial area in Santa Lucia Industrial Park, on the outskirts of the city of Santa Ana.4. Process water is recycled. Domestic sewage from the workforce goes into the city sewage collection system. There is no direct discharge of effluent from the operations to the environment.5. The company has implemented a wet sand paper process for the sharpening of tools, which has eliminated the production of metal particles. Domestic solid waste is collected and disposed of according to local regulations.7. Electrical power is supplied by the national grid. Imacasa uses two stand-by generators used in emergencies. Currently, one of the generators is used approximately 5 hours per day (to save energy cost during the peak hours of the day). The diesel fuel is stored on site in two tanks one of 9,000 and 5,000 gallons. The tanks have adequate secondary containment in the event of spills.8. Employees are required to wear hearing protection devices in areas of high noise level. Personal protective equipment (PPE) is provided for employees including gloves, goggles and other safety equipment required in areas of hazards. Emergency response equipment, including fire extinguishers, are located in strategic areas. The company has a task force assigned to provide safety training and emergency response capacity. 9. Based on its review of available information regarding potential environmental impacts and proposed mitigation measures, IFC concludes that Imacasa II proposed project will meet World Bank environmental, health and safety policies and guidelines and host country requirements.10. 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 Imacasa II and by conducting periodic supervision.\\StreetTalk\Shared Data@CTENET@IFC\wpeu\rosa\El Salvador\imacasa2.ers.docAugust 3, 1998 1:36 PM