SEF Lijanovici

completed

- 3 - November 24, 1998 International Finance CorporationA Member of the World Bank GroupInternational Finance CorporationA Member of the World Bank GroupEnvironmental Review Summary (ERS)Project Name SEF-BOSNIA & HERZEGOVINA: LijanoviciRegion EuropeSector Food and AgribusinessProject No. 008599 1. This project involves expansion and modernization of an existing integrated meat processing operation outside of Siroki Brijeg, north of Mostar. Lijanovici intends to increase the production capabilities of its facilities through the acquisition of new processing and packing equipment and the construction of a new product storage unit, equipped with shelving and cooling systems, on land adjacent to the existing facility. Water and electricity are supplied by the existing utility infrastructure, and there is a diesel-fueled standby generator to ensure power supply in case of failure of the main system. The project is expected to be completed at the end of 1998, at which time Lijanovici will increase employment of its existing workforce from 429 to 450 staff.2. This 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. IFC’s Technical and Environmental Department staff’s review of this project consisted of appraising technical and environmental information submitted by the project sponsor. The following potential environmental, safety and health impacts of the project were analyzed:· site land use and potential for contamination;· effluent discharge;· solid waste management;· chemical storage and handling (including CFCs in cooling systems), emergency response, and fire protection; and· employee health and safety, and training.The sponsor has presented plans to address these issues and to demonstrate that the proposed project will comply with applicable Bosnia-Herzegovina laws and regulations and World Bank requirements. The information provided about how these potential impacts are addressed by Lijanovici is summarized in the paragraphs that follow.3. The Siroki Brijeg site is located along the main road to Mostar with the closest town being 3 km away. The facilities were built in 1988 on previously undeveloped land, and include slaughterhouse and meat processing buildings, as well as a vehicle maintenance and fueling station, and a cafeteria and retail shops. The sponsor asserts that there is no potential for contamination of the existing site, and the project is not located near any sensitive or protected ecological areas.4. Lijanovici currently generates on average about 50 cubic meters per day of wastewater from the slaughterhouse floor and the meat processing unit ( in addition to employee sanitary sewage). Wastewaters are currently treated a series of aerobic/anaerobic ponds and discharged to a small river under consent from the Ministry of Health and municipal authorities. The treatment system appears to be adequately treating effluents to levels acceptable to the authorities and within World Bank guidelines, and the current capacity of the available ponds appears sufficient to treat the increase (i.e., doubling) in wastewater flows anticipated. Nevertheless, and prior to disbursement, Lijanovici will conduct a review of its water use practices, particularly where carcasses are washed and during slaughter floor cleaning activities, with a view toward identifying ways it can reduce overall wastewater volumes to ensure effective treatment of wastewaters to levels within World Bank guidelines in the future. Lijanovici will submit its plan for wastewater volume reductions to the IFC for approval.5. Solid wastes generated include slaughterhouse wastes, wastewater sludges, and plant trash. The slaughterhouse wastes are currently disposed in a landfill near the plant. Lijanovici employees manage the waste disposal process which involves daily waste burial and cover. As soon as a slaugherhouse waste rendering facility becomes available within Bosnia and Herzegovina, Lijanovici will discontinue land disposal and send its wastes to the rendering facility. Wastewater sludges are periodically landspread on local agricultural land as soil conditioner and fertilizer. Paper and cardboard wastes are sold to a recycler. Trash is disposed at the local landfill.6. No significant amounts of hazardous chemicals are used in Lijanovici’s operations. The original cooling systems have been upgraded to use glycol coolant; no CFCs are used in the plant. The plant and buildings have strategically located fire fighting equipment. Periodic fire drills are conducted, and all employees are trained in fire prevention and emergency procedures.7. The company is addressing all aspects of employee health and safety including workplace hygiene, and general health and safety and training. Staff are provided with proper attire and equipment, including footwear and protective gloves for cutting operations. Prior to disbursement, Lijanovici will institute improved staff training in specific health and safety procedures and accident prevention.8. 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 Lijanovici and by conducting periodic supervision.9. Based on its review of available information regarding potential environmental impacts and proposed mitigation measures, IFC concludes that Lijanovici’s proposed project will meet World Bank environmental, health and safety policies and guidelines and Bosnia and Herzegovina requirements.S:\Mainstream Projects\Bosnia\SEF-Lijanovici-8599\Ers.docDecember 3, 1998 1:38 PM