Terminal 6 S.A.

completed

- 3 - 5/9/97International Finance CorporationA Member of the World Bank GroupInternational Finance CorporationA Member of the World Bank GroupEnvironmental Review Summary (ERS)Project Name ARGENTINA: Terminal 6 S.A.Region Latin AmericaSector PortsProject No. 007962 May 9,19971. This project will be IFC’s fifth investment in Terminal 6 S.A., an existing grain export facility, located in Puerto San Martin on the Paraná River. The project comprises the expansion of the existing port terminal by adding three new vegetable oil storage tanks, two flat floor silos and thirty-four vertical silos to accommodate additional volumes from a new 4,800 ton per day soybean crushing plant located adjacent to Terminal 6. The expansion of the port will be undertaken by Terminal 6 - an existing IFC client. IFC’s first investment in 1987 financed the project construction of Terminal 6, and the three expansion projects were financed in 1989, 1990 and 1995. The sponsors are four large Argentine agricultural companies: Aceitera General Deheza, Aceitera Chabás, Buyatti and Guipeba-Ceval.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. The following potential environmental, health and safety impacts of the project were analyzed: dredging and disposal of dredged materials;· air emissions and dust control; · effluent treatment and disposal;· stormwater drainage and treatment; solid waste management; · spill prevention· bilge waste effluent monitoring; protection of marine water resources;· chemicals handling and disposal; fire and explosion prevention; emergency response; and employee exposure to noise and dust.The following is a summary of findings of IFC’s environmental review of this proposed investment.3. Dust emissions due to the handling of grain or oil extracted meals are controlled with suction systems that return the collected dust to the conveyors. Regular housekeeping is performed in all tunnels and operational areas, to avoid dust accumulation that might risk explosion.4. Liquid effluents from operation of the terminal include stormwater, which can contain grain dust, and wash water from hosing and cleaning of plant equipment. No toxic substances are employed in the products handled (cereals and seeds), and the water discharged to the Parana River (which has an average flow of 15 to 20,000 cubic meters per second) complies with permit conditions established by local authorities and World Bank guidelines. Domestic sewage is processed by a septic system that is permitted and inspected by local authorities5. Solid waste generated at the site is primarily biodegradable grain residue which is disposed of according to local ordinance at sanitary landfills designated by the proper authorities. Approximately 4 metric tons of waste are collected and disposed of on a monthly basis. Used oils are recycled.6. Water for human consumption is obtained from wells, disinfected and monitored to ensure compliance with drinking water standards.7. Petroleum products stored onsite total 20,000 liters of gasoline and oil. The containment area surrounding the storage tanks has been constructed with impervious material. Railcars are used to transport seeds and products of the oil extraction process. Terminal 6 confirms that railcars passing through the project site do not and will not transport hazardous materials. The company also confirms that plant transformers are air cooled and do not use PCB based mineral oils.8. The vegetable oil storage tanks will be built and installed following API standards, including secondary lined containment with a capacity larger than the largest tank and pump systems to prevent soil and marine water contamination in the event of a spill. The oil will be piped to the ships by a surface pipeline network, with a possibility of visual inspection including pumps and security valves.9. The sponsor has a strict fire prevention system in place. The facility is being designed with anti-static equipment and anti-explosive electrical circuits. There are also fire extinguishers in all tunnels, manual and automatic sprinklers and fire hoses in all silos and operations areas, and four water cannons at the loading berth. There are designated fire brigades available for each operating shift, and training and drills are conducted regularly.10. Terminal 6 employs an outside engineering contractor to oversee the company''s environmental, health and safety matters. In addition, the company has also contracted the services of a physician who specializes in occupational medicine, and has a health and safety technician on staff to oversee occupational health and safety matters. The company also conducts weekly environmental, health and safety inspections and immediately implements corrective actions as necessary. Terminal 6 employees are provided with training in particular areas of health and safety relating to the job requirements, including safe operational methods. Employees are provided with personal protective equipment for use in plant areas where noise levels exceed 85 dBA or dust levels exceed 10 mg/m.11. IFC will monitor Terminal 6 ongoing compliance with World Bank policies and guidelines during the life of the project by evaluating the environmental performance reports submitted annually, in conjunction with the annual financial report, to IFC by the sponsor and by conducting periodic site reviews during project supervision.12. Specifically, after the submittal and review of the annual environmental performance report required under the existing IFC investment, the Environment Division may require the company to carry out an environmental, health and safety audit of its operations by an independent consultant and if necessary to prepare a Corrective Action Plan (CAP) including cost estimates and an implementation schedule for each primary action needed.13. 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 Argentina requirements, and World Bank policies, and environmental, health and safety guidelines.L:\WPEU\JOSEFINA\ARGENTIN\TERM6SA.ERSMay 9, 1997 2:28 PM