Ticofrut S.A.

completed

- 2 - June 8, 1995Environmental Review Summary (ERS)Project Name COSTA RICA-TicoFrut, S.A.Region LACSector AgribusinessProject No 0070221. TicoFrut, S.A. is involved in citrus and pineapple juice production. The proposed project involves the improvement of TicoFrut''s long-term competitiveness by (i) expanding its orange juice processing capacity from 1,760,000 to 7,500,000 boxes (40.8 kg each) in order to benefit from economies of scale, (ii) reducing shipping costs by erecting bulk handling facilities including a tank farm in Costa Rica, and (iii) adding value to processing waste by erecting a plant for conversion of 153,000 mt/y of wet orange peel into pelletized animal feed and d-limonene, a solvent.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 information submitted by the project sponsor and the technical appraisal and site review completed by IFC''s Agribusiness Department staff. The following potential environmental, health and safety impacts of this project were analyzed: • site location; • air emissions; • water recycling and usage; • solid waste recycling; • liquid effluent treatment; • noise generation; • hazardous materials; and • occupational health and safety standards.Information about how these potential impacts would be addressed in the TicoFrut project is summarized in the paragraphs that follow.3. The facility is located in a rural district and will receive oranges from local plantations. There are no immediate neighbors to the plant.4. The existing boilers in the evaporation section of the plant are operated on bunker C fuel. As part of the upgrading of the facility new boilers using low-NOx burners will be installed. The air emissions will comply with local requirements and World Bank guidelines.5. Vapors from the evaporators are recovered in a citrus oil fraction, which is of commercial value and a water fraction. The water fraction is separated in a 180,000 gpd stream recycled into the juice extraction process and a 50,000 gpd fraction sent for secondary solid recovery before discharge to the wastewater treatment plant. By recycling 180,000 gpd of condensed process vapor, the raw water consumption will be limited to 20,000 gpd. TicoFrut has two of its own wells for supply of the raw water.6. The peel from the juice pressing has until now been landfilled. A new recovery unit will allow the waste to be dried for use in cattle feed production by a local feed mill. The use of dried citrus peel in cattle feed production is well documented from use in Florida.7. The combined wastewater flow from the juice fabrication and preparation of peel for feed mill use will be approximately 500,000 gpd. A new wastewater treatment plant will be installed, after treatment the wastewater will have BOD <50 mg/liter, TSS <50 mg/liter and will comply with local requirements and World Bank guidelines.8. The plant does not generate excessive noise, and is not located near residential areas. The use of ear plugs is obligatory in plant areas with high noise levels.9. The only hazardous chemical at the facility is caustic soda used for cleaning the processing equipment. Standard safety procedures, equivalent to United States standards, for the use of caustic soda are enforced.10. The facility will meet OSHA standards for occupational health and safety.11. IFC will ensure ongoing compliance with World Bank environmental, health and safety policies and guidelines during the life of the project by evaluating monitoring reports submitted annually to IFC by TicoFrut and by conducting periodic supervision.12. Based on its review of available information regarding potential environmental impacts and proposed mitigation measures, IFC concludes that TicoFrut''s proposed project is designed to meet World Bank environmental, health and safety policies and guidelines, and host country requirements.