Siderurgica de Guatemala, S.A. (Aceros)

completed

3Environmental Review Summary (ERS) Project Name Guatemala-Grupo Aceros de Guatemala (Acero) Region Latin America Sector Steel Manufacturing Project No. 007057 September 5, 19961. This project involves installation of a 38.6 MW diesel driven power unit in connection to Acero’s existing EAF-based steel melt shop and upgrading of the steel production facilities.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 appraising technical and environmental information submitted by the project sponsor, and the technical review completed by IFC’s staff. The following potential environmental, health and safety impacts of the project were analyzed:· air emissions;· liquid effluents;· solid wastes;· noise emissions;· general occupational health and safety in heavy industry;· protection against heat and noise; and· fire protection and emergency response.The sponsor has presented plans to address these issues and to comply with applicable governmental and World Bank requirements. The information provided about how these potential impacts are addressed in the development of the proposed project is summarized in the paragraphs that follow.3. In order to assess the environmental, health and safety (EH&S) status of the existing operations, private consultants, on behalf of the sponsor, conducted an environmental audit of the plant. The objective of the environmental audit was to identify needed environmental and occupational health and safety improvements required to bring the complete facility in compliance with local requirements and applicable World Bank environmental, health and safety guidelines. As a result of the environmental audit, areas identified as requiring improvements included:· dust and heavy metals emissions reduction;· liquid effluents treatment;· raw materials storage;· potential for furnace explosions;· reduction, handling and final disposal of solid residues;· occupational safety and health;· institutional strengthening;· emergency response plan;· employees training and· monitoring program.4. The results of the environmental audit served as the basis for Acero to establish a Corrective Action Plan (CAP) for the plant to ensure the facility will comply with local and World Bank requirements. The CAP addresses the above issues and is satisfactory to IFC. The CAP identifies the specific actions required at the plant as well as the estimated cost and implementation schedule for each action.5. The principal corrective actions planned are associated with the control of dust and heavy metal emissions, liquid effluent treatment and safety and health issues. These corrective actions will be implemented between 1996 and 1998. Full implementation of the CAP will reduce the emissions of all significant sources to levels that will meet the World Bank guidelines established for existing steel plants. In order to ensure the reduction of emissions, Acero has designated approximately US$1,800,000 of the project budget for the implementation of procedures and the installation and improvement of pollution control equipment and approximately US$340,000 dollars for improvements in occupational health and industrial safety programs. 6. The CAP includes the upgrading and/or installation of air pollution control equipment to significantly reduce the air emissions from these operations. Acero will install additional filters to control the particulate emissions. Additionally, Acero is establishing a preventive maintenance and spare parts program, and is providing the necessary training to employees to ensure the proper operation, maintenance and monitoring of the air emissions control equipment. Additional actions such as (i) covering raw material stockpiles and (ii) disposing solid residues in an adequate manner are being considered in the CAP to further reduce emissions to the atmosphere.7. To comply with the governmental standards and World Bank guidelines for process liquid effluents, Acero’s CAP also includes actions to ensure the adequate treatment of liquid effluents and domestic sewage. The improvements include the installation of an oil separator and the treatment of heavy metals. 8. The CAP includes measures to ensure that the solid waste generated will be disposed of in designated areas, to the satisfaction of local authorities, following best management practices and that the solid and hazardous waste generated during the process will be properly disposed avoiding soils and/or groundwater contamination.9. Acero will create an environmental/industrial safety unit and establish Fire Safety and Occupational Health and Safety programs to comply with governmental standards and World Bank guidelines. Employees will be trained with regard to plant safety rules, accident prevention, use of Personnel Protective Equipment (PPE) hazards of the workplace and fire safety. The workplace will be monitored for employee exposure to noise and dust. Employees will be provided with appropriate PPE when noise levels are above 80 dBA and/or dust levels above 10 mg/m3. The facility will have clearly signaled restricted areas where only authorized personnel with appropriate personnel protective equipment is permitted. Measures to account for the high temperatures in the furnaces working areas are also considered in the CAP.10. In addition, the CAP contains health and safety actions including: (i) improving workplace housekeeping; (ii) strengthening inspection systems for the identification and elimination of workplace hazards; (iii) further improvements in employee training; (iv) improvements to the employees sanitary services and (v) instituting measures to achieve greater employee adherence to plant rules, especially the use of PPE. Fire safety and accident prevention measures including the installation of fire extinguishers, fire hoses and water sprinklers will be part of Acero’s fire safety and occupational health and safety programs.11. The CAP also includes a monitoring program to evaluate the impact of the plant to the environment. Air monitoring and stack emissions will be performed regularly and the results will be reported to IFC. In addition, strengthening administrative procedures to ensure that the environmental, health and safety are implemented and followed are also being considered in the CAP.12. Based on its review of available information regarding potential environmental impacts and proposed mitigation measures, IFC concludes that, with the implementation of the CAP, the proposed project is being designed to meet Government of Guatemala requirements, and World Bank policies, and environmental, health and safety guidelines.13. IFC will monitor Acero’s progress of implementing the CAP as well as ongoing compliance with World Bank policies and guidelines during the life of the project by evaluating environmental performance reports submitted annually to IFC by the sponsor and by conducting periodic site reviews during project supervision.