Tilda Uganda Limited

completed

- 5 - REVISED Environmental Review Summary (ERS)Project Name UGANDA: Tilda Uganda LimitedRegion Sub-Saharan Africa Sector AgribussinessProject No. 008136 October 22, 19971. This project involves the privatization, rehabilitation and development of the Kibimba Rice Scheme, a 3900 ha tract established in 1973. Tilda Uganda Ltd. (TUL) has acquired the property and will rehabilitate the project. This will involve rehabilitation of 550 ha of paddy, renovation buildings, erection of a new rice mill and replacement of machinery. Total project cost is estimated at US$6.4 million of which IFC has been requested to provide a loan of US$2.0 million. 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 key environmental, health and safety issues considered in this project include:· irrigation water supply and distribution;· sustainability of water supply and impacts on other users;· liquid and solid waste disposal;· housing and infrastructure services;· pesticide use and handling;· integrated pest management;· outgrower training;· CFCs;· provision of personal protective equipment;· water-borne disease control;· general worker health and safety;· fire protection.The sponsor has presented plans 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.3. At the time the scheme was established in 1973, the government settled all relocation and compensation issues, therefore, it is not anticipated that resettlement issues will arise in the project. However, if any potential liabilities related to resettlement arise, the Government of Uganda has confirmed that it will deal with all compensation claims. All current estate employees will be retained and housed by Tilda.4. The sponsor will improve layout, land leveling and control structures for the irrigation system. The improvements will include comprehensive earthworks and replacement of many of the existing control structures. The new system will be designed to minimize impacts to the environment. The sponsor will also implement a tree planting program. In addition, the sponsor will determine nitrogen levels in the surface waters and will check for changes in soil characteristics, fertility and salinity, as a result of fertilization. 5. The scheme includes an existing 1.5 km earthen dam which creates a storage of 3 million cubic meters of water for irrigation. The sponsor will improve water management by improving the irrigation system.6. Power is supplied to the site by the Uganda Electricity Board. There are also two 75 kVA back-up diesel generators on-site. The generators will be operated to comply with World Bank guidelines. The sponsor will inform IFC before implementing any changes to the existing power supply system. 7. The liquid discharges from the mixing area will be segregated from the domestic residues and treated separately. The site’s sewage system will be rehabilitated and the effluents will be treated. The treated effluents will comply with World Bank guidelines. The oil and grease from the maintenance operations will be collected in traps and properly disposed. 8. Rice husk ash will be used in the fields to improve paddy seedling propagation. The small amounts of metal waste generated as a result of maintenance activities will be collected and sold as scrap. The sponsor began inquiries about the possibility of returning empty agrochemical containers to the supplier for recycling. The sponsor will inform IFC about the final disposal method for the empty containers. 9. The sponsor will refurbish the homes of the employees. These homes will have power, water supply and sewer services and will include mosquito netting to reduce exposure to disease vectors. Much of the accommodation has shared facilities. Employees will have access to water supply and latrines. While the refurbishing of the homes is completed, the sponsor will ensure that the water for consumption will comply with World Bank guidelines and be chlorinated if necessary, the odors from the sewer system will be controlled, pit latrines and wash-houses will be available while the sewer system is restored, communal cooking areas will be available, and disposal and collection systems for domestic solid wastes will be accessible.10. Herbicides, fungicides and pesticides are used as part of the operation. None of the agrochemicals to be used by the sponsor is part of the IFC’s excluded pesticides list. The sponsor will phase out methyl bromide, as agreed by the Montreal Protocol, with aluminum phosphate thereby complying with World Bank guidelines. The use of natural manuring is also being considered.11. The sponsor has yet to implement the Integrated Pest Management (IPM) practices, however the sponsor has initiated actions to implement them. To start, the sponsor is planning to preserve peripheral strips of wetlands as a permanent habitat for insect predators and will initiate consultation with IPM local experts. The sponsor will keep IFC informed about progress in the implementation of IPM practices.12. A training program for outgrowers will be developed by TUL staff. The sponsor has hired a permanent expert and will also be assisted by expert outside consultancy.13. No chromates or CFCs will be used on the project. If a new connection is made to the high tension line, non-PCB transformers will be installed.14. Diesel fuel is maintained in a newly installed underground storage tank specially designed for that purpose. 15. Air quality in the mill area will be maintained at levels complying with World Bank guidelines. A dust collection system will be installed at the workplace to control the air quality in the working areas. Employees handling and using chemicals will be provided with all the relevant personal protective equipment (PPE) including rubber aprons, used when mixing stock. The work site will have washing facilities on site including showers at the chemical mixing areas. Eyewash baths will also be provided.16. Improvements to the drainage systems will aim to reduce the areas of standing water and thereby eliminating breeding sources for disease vectors (i.e., “sycharie” part of the schistosomiasis chain). 17. The chemical mixing operations will be performed under controlled conditions near the store and taken to the fields for decanting to spray tanks reducing the likelihood of accidents. The chemicals mixing area will have secondary containment to minimize the risk of soil contamination in case of a spill. The field store will be moved to an independent compound physically separate from the living quarters.18. The main workshop area has been fenced off and isolated from the elementary school run by the local council and located at the edge of the project site. The chemical field store is not in close proximity to the school.19. The sponsor will implement strict health and safety training programs. The plant protection team will be trained in consultation with the Agricultural College in Uganda. A specialist on training in techniques of farm protection at plant level will be hired. The immediate training programs to be implemented include use of PPE as needed and proper use and application of agrochemicals. The sponsor will ensure that the employees understand the health and environmental implications involved with the handling and application of the agrochemicals. 20. All machinery moving parts are guarded and the elevated areas have safety rails. The sponsor will perform regular inspections to all equipment ensuring that work safety is maintained. Electrical works are being rehabilitated. Milling dust and noise levels will be in compliance with World Bank guidelines. 21. The fire system is being overhauled as part of the rehabilitation program for the water supply system. The sponsor will install rice processing equipment in a manner so as to minimize the risk of dust explosion in the rice milling area. The sponsor will develop fire and emergency response plans and submit them to IFC.22. The clinic located on the main workshop site is being rehabilitated. The nurse will be trained further about care, potential accidents and emergency procedures associated with the use of agrochemicals. The sponsor will install a shower in the clinic. 23. The sponsor has implemented a social program to assist in the social and economic development of the area. The social program will be extended to people not working for TUL but living in the neighboring villages as part of TUL’s general commitment to raise living standards in the area. The program will be administered in collaboration with representatives of the local community. 24. TUL will implement a monitoring program to assess key environmental issues including irrigation practices, agrochemical application, drinking water quality, air emissions, equipment maintenance, and medical and emergency procedures. 25. The project sponsor is committed to implement mitigation measures to meet governmental and World Bank requirements by July 1998. The sponsor will submit a Corrective Action Plan (CAP), satisfactory to IFC, as a condition of first disbursement of IFC’s loan. The CAP will identify the specific actions required as well as the estimated costs and implementation schedules for each action. The CAP will be implemented between 1997 and July 1998. The principal corrective actions planned are associated with the improvement of the irrigation and sewage systems; employee health and safety issues including training, refurbishing of the employees housing units including access to utility services and appropriate handling of agrochemicals including the implementation of the IPM practices. Full implementation of the CAP will reduce impacts from all significant sources to levels which will meet the relevant World Bank guidelines established for the project.26. In addition to the CAP, the sponsor will also submit, as a condition of first disbursement, the following items:· training programs outline;· fire and emergency response plans;· copy of the fresh water/sewerage system survey; and· detailed monitoring plan.27. Based on its review of available information regarding potential environmental impacts and proposed mitigation measures, IFC concludes that, with the implementation of the corrective actions, the proposed project is being designed to meet Government of Uganda requirements, and World Bank policies, and environmental, health and safety guidelines.28. IFC will monitor Tilda Uganda Ltd’s 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.This ERS was first sent to the PIC on November 11, 1997 and revised on November 20, 1997.