Turborreactores S.A. de C.V.

completed

Environmental Review Summary (ERS)Project Name Mexico - TurborreactoresRegion Latin America and the CaribbeanSector General ManufacturingProject No. 009951 1. Turborreactores S.A. de C.V. (ITR) is Mexico’s sole service provider for the overhaul and repairs of aeronautical jet engines. The company based in Queretaro, 135 miles (220 Km) north of Mexico City, is currently offering services for partial and complete repair, refurbishment and testing of JT8D type turbofan engines. The proposed project consist of (i) rehabilitation and upgrading of the current facilities to enhance the plant’s efficiency, (ii) expanding the range of engine repair capability to access a larger market, and (iii) working capital requirements to support the operations. The upgrading of the facility will include: the installation of specialized facilities to repair blades and vanes for engine disks, new vacuum furnaces, new tooling for the accessories shop, and improvement of the manufacturing control software and of the engine test cell computerized system.2. This is a category B project according to IFC’s environmental and social 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 (ITR), 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:· Air emissions;· Liquid effluent handling, treatment and discharge,· Solid waste handling and disposal· Fuel and hazardous materials storage and handling· Noise· Contingency and emergency and response plans; and· Employee training and general health and safety.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. ITR’s plant is located in an Industrial Park in the city of Queretaro. The plant is not located near sensitive habitats and no resettlement nor economic displacement has occurred as a result of the project.4. Natural gas is the fuel used at Turborreactores. The air emissions generated are controlled and will continue to be monitored to ensure compliance with the local requirements and the World Bank guidelines.5. The generated process wastewater is treated on-site, ITR is currently implementing an upgrading program to reduce the levels of Biochemical Oxygen Demand (BOD), including the installation of an aeration system. ITR is in the process of obtaining from the “Comision Nacional del Agua” a permit to use treated water for irrigation purposes. Sanitary liquid effluents are treated at the municipal wastewater facilities.. Sludge from the wastewater treatment facility is considered and treated as a hazardous waste. The sludge is collected and disposed of by “Recolecciones Ecológicas D.B. S.A. de C.V.” an entity authorized by the environmental authorities of Mexico.6. Industrial solid waste are either recycled or disposed at a sanitary landfill. Hazardous waste are collected and treated by an authorized entity and disposed of at authorized disposal sites.7. Currently, ITR is in the process of preparing a noise study within the plant as well as the perimeter of the facility. Fuel and hazardous materials are properly stored and handled. These materials have appropriate secondary containment to reduced the risk of soil contamination in the case of accidental spills or release. ITR provides training in the areas of proper use and handling of hazardous materials.8. ITR has prepared emergency, contingency and response plans in the event of fire, explosions, gas leakage etc. ITR has also a fire prevention program including a fire emergency response program, has a designated fire brigade and regularly conducts fire training and drills. Personal protective equipment is provided to all employees.9. ITR will annually submit to IFC an environmental monitoring report to ensure ongoing compliance during the life of the project. ITR’s monitoring reports will be based on the results obtained from their monitoring programs including at a minimum the following components:Ø projects status including key developments or deviations from the original design;Ø compliance status with the local authorities;Ø air emissions – monitoring of particulate matter, volatile organic compounds (VOC’s), and nitrogen oxides,Ø treated liquid effluents;Ø ambient and workplace noise levels;Ø rate of work related accidents and incidents;Ø interaction with local communities;Ø significant incidents (if any); andØ employee training programs10. Based on its review of available information regarding potential environmental impacts and proposed mitigation measures, IFC concludes that, with the implementation of the Corrective Action Plan(CAP), the proposed project is being designed to meet Government of .Mexico requirements, and World Bank policies, and environmental, health and safety guidelines.11. IFC will monitor the progress of implementing the CAP as well as ongoing compliance with World Bank policies and guidelines during the life of the project by evaluating monitoring reports submitted annually to IFC by ITR and by conducting periodic site reviews during project supervision.