Stanmore/Cadbury Schweppes Bottling Plant

completed

- 4 - 15th May, 1998International Finance CorporationA Member of the World Bank GroupInternational Finance CorporationA Member of the World Bank GroupEnvironmental Review Summary (ERS)Project Name KENYA: Anspar (formerly Stanmore –Enterprises Ltd.) Region East and Southern Africa Sector Food and Beverages Project No. 008916 1. This project comprises the construction of a new bottling facility for the production and distribution of soft drinks in Kenya under a franchise agreement with Cadbury Schweppes International. The sponsor has been active in Kenyan business for the past twenty-two years, began development of this project eighteen months ago, and in the intervening period, with exposure to C/S management, technical and marketing personnel, has obtained a very strong understanding of the soft drinks business. C/S are committed to provide technical support as part of the licence agreement; this has been significant to date. The project will greatly improve the choice and availability of soft drinks available within the Kenyan market place, and will eventually provide direct employment for about 280 people and secondary employment in the supply and distribution chains. Wage levels and terms of employment for Anspar’s employees will also be above average.2. The plant will have an installed filling capacity of 24,000 bottles per hour (annual capacity 33.5 million liters), mainly returnable single-serve size glass bottles (300ml and 500ml), but will also be able to fill 1 liter multi-serve size glass bottles. The packaging line will be for returnable glass bottles (RGB) which currently represent over 90% of the market. The project includes the purchase of vehicles for distribution as well as land, buildings and equipment for the bottling plant and distribution centers. Initial staffing projections are for 72 personnel in production, and 88 in distribution. The project will be located on land owned by the sponsor in an industrial development zone adjacent to Nairobi Airport. 3. Water is to be obtained from a mixture of municipal and well water supply. The sponsors envisage that procurement of goods and services for the project will be for the following sources: concentrate from Cadbury Schweppes (UK), sugar – EC2 grade sourced internationally, EC3 domestically; bottles from Kioo (Tanzania).4. This is a category B project according to IFC’s environmental review procedure because 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 appraisal and site review completed by IFC’s Technical staff. The following potential environmental, health and safety impacts of the project were analyzed:· water supply;· liquid effluent treatment;· air emissions from steam boilers;· solid waste disposal;· control of vehicle fueling and maintenance waste disposal practices;· potential contamination of the bottling plant and distribution center sites from present or past uses;· use of CFC’s in refrigeration systems; and · workplace noise and safety.5. The sponsor has presented information on how he intends to address these issues and demonstrate that the proposed project will comply with applicable governmental and World Bank requirements. The information provided about how these potential impacts are addressed in the development of the project is summarized in the paragraphs that follow. 6. Water supply will come from the municipal supply and also from plant site boreholes of 180 to 200 meters depth. Likely availability from borehole sources would suggest well output of 4.6 to 12.5 m3 per hour compared with 25 m3 per hour maximum instantaneous demand from the plant. Sourced water will be held in storage tanks pre and post filtration. Water quality is expected to be good, except for high fluoride levels of about 9ppm compared with the WHO standard of 1.5ppm. The C/S water treatment requirement includes coagulation, carbon filtration and polishing filter and will probably be supplied by Permutit, who are currently working on an add-on for fluoride reduction. C/S have provided manuals for major quality control parameters, production tests, bacteriological tests as well as the environment; the sponsor will be expected to adhere to these under the licensing agreement. 7. The treatment of waste – water has been discussed with the sponsor. The site on which the plant is to be built has no dedicated storm water drainage and there is no storm water drainage in the area. A connection to the municipal sewer is available at about 0.6km distance from the plant location. The sponsor has been advised to evaluate the terms of connection and charges before deciding on the final method of treatment. If the cost of discharge to the Municipality is the same with or without treatment and if the sponsor can demonstrate that municipal treatment is adequate and meets World Bank guidelines, and that the Municipality is willing to accept the company’s process liquid and domestic sewage effluent, then this is an acceptable course of action from IFC’s point of view. The sponsor is of course required to obtain all discharge permits required by Kenyan law. If the municipal plant is not adequate or the municipality proves unwilling to accept the waste water effluent the sponsor has agreed to provide pre-treatment to World Bank guidelines, as well as to C/S’ own environmental policies. The issue of the disposal of bottle wash rinse water which contains caustic soda needs to be addressed in the design of the waste water effluent treatment plant. .8. Power is available through connection with the local power grid; the plant will have an emergency diesel fired generator of sufficient power to run the production operation on a short term basis in the event of power outage. 9. The sponsor has advised that bottles and plastic palettes are returned to the factory and recycled and re-used.10. Limited storage of oil will take place on site with appropriate containment measures to prevent spillage. Any containment arrangements will need to meet Guideline 14 of CS’ Guide to Environmental Management – Good Housekeeping Management.11. The project is located on a 2 ha site adjacent to Nairobi International Airport, and has not been previously developed. It is located in a developing industrial area, is situated across the street from Kenya Airways offices and has warehouses situated on either side. The land is currently owned by the sponsor. There will be no need to relocate residents. The site has been observed to have black soil present to a depth of up to one meter. This layer will be removed and backfilled prior to construction, and should be of a sufficient depth to remediate any soil contamination which may have arisen from previous industrial use. If this layer becomes thicker in ‘isolated areas’ or hot spots, we would recommend that the additional volume of material is removed and backfilled.12. The building will have forced air ventilation, but no air – conditioning and the sponsor has confirmed that no CFC’s will be used.13. The project will be designed to meet C/S’ extensive requirements, as described in their Environmental Policy document and to IFC’s guidelines for Health and Safety and will need to comply with fire, health and other safety precautions as required by local regulations. Volume II of CS’ Guide to Environmental Management includes Guidelines on “Minimising Environmental Damage due to Fire (Guideline 7)”, “Hazardous Materials Management (Guideline 11)”, Occupational and Workplace Noise ( Guideline 13a) as well as Good Housekeeping Management ( Guideline 14). 14. The sponsor has stated that company employees will be provided specifically with protective clothing and hearing protection in the packaging line area. The sponsor has also been advised to consider footwear needs in the bottling and packaging hall area. Fire protection will be provided by a fire main and hose point system fed by a bore hole pump and tank with a back-up emergency generator. Fire alarms? Procedures in place for fire and medical emergencies?? Elements of Planned Health and Safety Plan. Personal Protective Equipment? 15. 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 Anspar and by conducting periodic supervision.16. Based on its review of available information regarding potential environmental impacts and proposed mitigation measures, IFC concludes that Anspar’s proposed project will meet World Bank environmental, health and safety policies and guidelines and host country requirements.\\StreetTalk\Shared Data@CTENET@IFC\wpeu\Lis\New Folder\ERSKENANS.DOCMay 15, 1998 1:02 PM