SEF Rodoviaria da Beira Limitida

completed

ENVIRONMENTAL REVIEW SUMMARYProject Name MOZAMBIQUE: RODOVIARIA DA BEIRA LDA. Region Sub-Saharan AfricaSector Transport Project No. 008901______________________________________________________________________________1. This project is to be financed through the Small Enterprise Fund (SEF). When Mozambique became independent in 1975, its new Government nationalized most of the private businesses, including those involved in passenger transportation. Three companies were established to cover, respectively, the southern, central and northern parts of the country. They maintained a large fleet of buses and were able to meet demand nationwide. The civil war which began in 1982, combined with mismanagement of the companies throughout the 1980s, resulted in the companies declaring bankruptcy in the late 1980s. With the end of the civil war in 1992 and subsequent decentralization of the economy, a number of private entrepreneurs entered the transportation business. In March of 1997, three Mozambican sponsors established Rodoviaria da Beira, Lda. (ROBEIRA) and acquired three TATA buses to transport passengers between Beira and Machipanda, about a 200 km trip. The company has been successful in its first year of operations and now wishes to expand its fleet to a total of 11 buses and to expand its internal maintenance operations.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 key environmental health and safety issues that were analyzed are as follows: • disposal of liquid and solid wastes, including sewage; • recycling and/or proper disposal or used motor oils and grease; • spill prevention and secondary containment structures for above-ground fuel storage tanks; • discharges from underground fuel storage tanks; • vehicle emissions; • fire protection and emergency response preparedness; • employee health and safety, and training; • maintenance of vehicle fleet; and • general housekeeping.IFC has reviewed the environmental information supplied by ROBEIRA, key elements of which are described below.3. Disposal of liquid and solid wastes, including sewage: ROBEIRA''s operations generate minimal amounts of solid waste (office wastes, used packaging materials ), which are collected by the Beira municipal authorities. Sewage is discharged to the municipal sewerage system.4. Recycling and/or proper disposal or used motor oils and grease: ROBEIRA has a long term contract with Mobil to provide fuel and routine servicing, including oil filter changes, at a Mobil service station located 50 meters from ROBEIRA''s property. As a result, there is very little waste oil generated at ROBEIRA''s premises in the normal course of operations. The sponsors have indicated that where waste oils or grease are produced on their property, these will be containerized and taken to Mobil or another local distributor of petroleum products for disposal or recycling.5. Spill prevention and secondary containment structures for above-ground fuel storage tanks: As noted above, ROBEIRA''s vehicles obtain both fuel and routine servicing from Mobil and, consequently, there are no fuel storage tanks located on ROBEIRA''s own premises.6. Discharges from underground fuel storage tanks: ROBEIRA has no underground fuel storage tanks on its property.7. Vehicle emissions: Mozambiquan law provides only a very broad mandate that any vehicle emitting excessive smoke must be repaired, and this regulation is not routinely enforced. ROBEIRA has its own workshop for handling repairs and employs a team of mechanics trained by TATA, the Indian manufacturer of its buses, who oversee maintenance of the buses. According to the project sponsors, the three buses were purchased new in July 1997 and emit very little in the way of visible emissions.8. Fire protection and emergency response preparedness: Municipal regulations require that all buses be equipped with both a fire extinguisher and a first aid kit. All of ROBEIRA''s drivers and other members of its bus crews have been trained in the proper use of these extinguishers. At IFC’s request, ROBEIRA is considering sending one member of each crew to a basic first aid training course provided by the local Red Cross office. The company''s offices and workshop in Beira are equipped with fire extinguishers and are guarded 24 hours a day.9. Employee health and safety, and training: ROBEIRA employs approximately 15 people in its entire operation. Each bus has a crew of three, and the company employs two mechanics and a small number of clerical workers, cleaners and security staff. ROBEIRA employs only experienced drivers, all of whom have been given additional training in the company''s requirements and procedures. During its first several months of operations, ROBEIRA conducted several unannounced inspections of each of its buses to verify that the crews were operating the buses in a safe and responsible manner and that buses were not carrying more than the maximum permissible number of passengers. In the event of a serious occupational injury to one of its employees, ROBEIRA will utilize the services of the municipal hospital in Beira.10. Maintenance of vehicle fleet: As noted, ROBEIRA has its own staff of mechanics, trained by TATA. Because of the difficulty of obtaining spare parts, it is ROBEIRA''s policy to conduct an internal inspection of each of its vehicles every 3,000 kms to ensure that minor malfunctions or problems are addressed before they worsen. TATA maintenance rules require that buses receive a major servicing every 5,000 kms for the first 50,000 kms, after which a major service is required every 10,000 kms. These schedules are strictly adhered to.11. General housekeeping: Two of the three project sponsors resides in Beira and are the day-to-day managers of ROBEIRA''s operations. They are responsible for ensuring that the buses are operating properly and on schedule and the workshop and office premises are properly maintained. IFC staff who visited ROBEIRA’s premises during the project appraisal noted that they were clean and well-ordered.12. Based on its review of the environmental information provided by ROBEIRA, IFC concludes that the proposed project is being designed and will be operated to meet Government of Mozambique requirements and all relevant World Bank policies and environmental, health and safety guidelines, and environmental clearance is given for this project. IFC will monitor ongoing compliance with World Bank policies and guidelines during the life of the project by evaluating monitoring reports submitted annually to IFC by the sponsor and by conducting periodic site reviews during project supervision.