SEF Implementos Agricolas Centroamericanos, S.A. de C.V.

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- 2 - Date (Must be Typed In)International Finance CorporationA Member of the World Bank GroupInternational Finance CorporationA Member of the World Bank GroupEnvironmental Review Summary (ERS)Project Name El Salvador-ImacasaRegion Latin AmericaSector Small Enterprise Fund-General ManufacturingProject No. 008163 This project involves the modernization of the company’s manufacturing facilities, which produce about 3,200 tons per year of agricultural hand tools (machetes, axes, picks, shovels) for the Central American market. 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 company’s manufacturing process consists mainly of cutting steel sheets, heating and molding into tool forms, and finishing of products including sharpening, painting, and installing of wooden handles. The company employs 330 people, and processes annually about 3,500 tons of steel. The site has been occupied by the company for 30 years, consisting of 10,000 square meters of covered industrial area in the Santa Lucia Industrial Park, on the outskirts of the city of Santa Ana, El Salvador. Key environmental, occupational health and safety issues that were of potential concern during IFC’s environmental review of this project included: air emissions; liquid effluent treatment; solid waste handling and disposal; and employee protection from hot surfaces and aerosols. The company has prepared a summary environmental information report regarding the environmental aspects of this project. This document constitutes the primary source of information used by IFC in conducting its environmental review. The following is a summary of the findings of this environmental review.Diesel is used at the rate of 13,000 gallons/month as a fuel source for heating and molding the steel into tools. Air emissions from this small fuel source for heating steel are considered to be less than significant because of the small quantities involved, and do not warrant the cost of specific environmental pollution control measures. Quality of the fuel, in terms of sulfur content, for example, is dictated by the market supply and demand in El Salvador, and is not within the control of the company.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.Metal particles from the sharpening process are collected with vacuum equipment, and consist of about 5 barrels of collected particulates per year. The company has been using this material to fill minor holes in the road on the company site. The project investment will replace the old sharpening system with a wet sand paper process, which will virtually eliminate the production of metal particles.Noise levels are high in some areas of the plant. Employees handle sharp and hot objects. Employees are required to use noise protection equipment, gloves, goggles, and other personal safety equipment in areas with 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. Safety policies are documented, and used in the employee training program.Based on its environmental review, IFC’s Environment Division has concluded that the project complies with local environmental regulations and World Bank environmental guidelines appropriate for this project. The sponsor will be required to submit an annual monitoring report to IFC regarding compliance with local environmental laws and regulations and World Bank environmental guidelines.imacasa.ers