SEF Tesinma Coachbuilding Project

completed

Environmental Review Summary (ERS)Project Name SEF - ERITREA: Tesinma CoachbuildingRegion Sub-Saharan AfricaSector General Manufacturing Project No. 008224 April 25, 19971. This project involves the establishment of a bus and commercial vehicle assembly plant in the industrial area of Dekemhare, 40 km from Asmara. The facility will assemble vehicles from completely knocked down (CKD) kits imported from Italy. Tesinma will supply the local market as well as export to Ethiopia and Saudi Arabia.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 the appraisal of technical and environmental information submitted by the project sponsor and completed by IFC’s Environment Department staff. The key environmental, health and safety issues considered in this project include:· liquid and solid waste disposal;· handling and storage of hazardous materials;· recycling/proper disposal of solvents, oils, and motor fluids;· power supply and fuel/oil storage;· employee exposure to heat, noise and hazardous materials; and· fire protection and emergency response.The information provided about how these potential impacts are addressed in the development of the project is summarized in the paragraphs that follow.3. Waste generated at the Tesinma plant will primarily consist of sewage, metal cuttings and empty paint barrels, waste paint, and used oil. These will be handled as follows:· Sewage - there is no local sewage treatment facility in Dekemhare, sewage (free of any chemicals, paints, or oils) will therefore be disposed of via a soakaway system. This system will be located 200 meters from the plant well and will be over 2 km from the next nearest well in Dekemhare. Due to the size of the plant (approximately 32 employees), flow rates to the soakaway system will be small;· Metal cuttings and Barrels - will be sold locally to a business that cuts them down for various uses (e.g., small domestic stove manufacturing, laundry basins etc.). Tesinma commit that they will ensure that paint barrels are not sold to individuals/companies who will potentially use the barrels to make containers used for storing (or cooking) water/food destined for human or animal consumption; and· Waste Paints and Oil - given that there are no hazardous waste landfills or specialized disposal facilities in Eritrea, several alternative disposal methods for waste (polyurethane based) paints and used oil were considered. Given that storage may lead to undetected leakage, increased fire risk, or improper use/disposal at a later date, this option was rejected. A second option was to was dispose of the substances at a nearby paint plant, however the paint plant indicated they were not in a position to handle Tesinma’s waste. Therefore, given that the volume of waste paints and used oil generated is small (about 500 kg per year), Tesinma’s proposal to sell the waste paints and used oil for use as fuel in the furnace of a lime factory is currently the best short term option. Tesinma has committed to explore the possibility of disposing of this waste in Ethiopia at an appropriate facility. In addition, as and when appropriate disposal/recycling facilities are developed in Eritrea, Tesinma will cease selling this material to the lime factory. Tesinma will report to IFC, as part of annual monitoring, on this issue. The amount of waste produced will be monitored, if these are deemed excessive (especially with regard to potential incremental impacts on the lime kiln furnace emissions) by IFC, Tesinma will stop the sale of this waste and instead safely store (including the provision of secondary containment) the materials until an acceptable alternative is agreed upon by Tesinma and IFC.4. Storage of paints and thinners will be in a secure area equipped with fire protection doors, special lighting, and secondary containment structures. Fuel tanks will also be provided with secondary containment, in the form of a concrete basin.5. Employees working in the painting unit will be provided with protective breathing masks, eye protection, and protective clothing. The paint room will also be equipped with air filters, ventilation , and fire protection doors. All staff will receive training and will be provided with safety equipment as appropriate (e.g., gloves, boots, eyewear etc.). Safety posters will also be displayed in the plant.6. Electric power will be obtained from the national/local grid. Fire protection measures include the installation of fire extinguishers, provision of emergency exits, special lighting and doors, and employee training.7. IFC, in coordination with Tesinma, will monitor the volume of waste paint and used oil generated. Monitoring of the other key issues associated with the project, as identified above, with respect to World Bank environmental, health and safety policies and guidelines will occur during the life of the project by evaluating reports submitted annually to IFC by Tesinma and by conducting periodic supervisions.8. Based on its review of available information regarding potential environmental impacts and proposed mitigation measures, IFC concludes that the proposed project is being designed to meet Government of Eritrea requirements, and applicable World Bank policies, and environmental, health and safety guidelines.L:\WPEU\LB\SEF\ERITREA\TESINMA.ERS