United Pulp and Paper Company Inc.

completed

Environmental Review Summary (ERS)Project Name: PHILIPPINES: United Pulp and Paper Region: East Asia and PacificSector: Timber, Pulp and PaperProject No: 0093391. This project involves the expansion of United Pulp and Paper Co.’s existing paper mill producing sack kraft paper and corrugating medium in Calumpit, Bulacan, which uses waste paper and some unbleached market pulp. The project will include the installation of a second paper machine and support facilities including a 30 MW steam-turbine power co-generation plant. Expansion will take place on the existing plant site. 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.2. 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 and Environment Department staff. The following potential environmental, health and safety impacts of the project were analyzed:· liquid effluent handling and treatment;· air emissions;· solid waste disposal;· handling of hazardous materials;· fire protection and emergency response; and· general worker health and safety.The information provided about how these potential impacts are addressed in the development of the project is summarized in the paragraphs that follow. UPPC has prepared Environmental Impact Assessments for both the mill expansion and the cogeneration power plant to meet the requirements of Philippine regulatory authorities.3. The plant occupies a 40 ha site located north of Metro Manila in Calumpit, Bulacan, a suburban area with mixed commercial, residential and other light industrial uses. There are no environmentally-sensitive areas in the immediate vicinity of the plant. There is a 6.5 ha lagoon on the site which contains some residual black liquor which remains from the former operation of a bagasse pulp mill which was decommissioned in 1989. Monitoring of groundwater wells in the vicinity of the lagoon has indicated that there has been no infiltration from this pond and no observable impact on groundwater quality. UPPC has committed to draining this lagoon and properly reclaiming the area. There is no other site contamination from past activities.4. UPPC has just completed construction of a new 30 MW cogeneration power plant, which is fueled with Bunker C fuel oil. The boilers are fitted with state-of-the-art combustion controls, and measured stack emissions meet World Bank Group guidelines.5. Water supply for the mill is from deep wells as licensed by the government regulatory agency. Sanitary waste is treated in septic tanks. Process wastewater from the paper machines is handled in a new, state-of-the-art activated sludge wastewater treatment plant with ample capacity for the new mill. The mill is also equipped with systems for fiber recovery and water recycling. Remaining liquid in the black liquor lagoon will also be treated in this new treatment plant as the lagoon is drained and reclaimed over the next year. Discharge of treated process water and site runoff is to the nearby Labangan River. All liquid effluents from the site will meet World Bank Group guidelines and Philippine government requirements.6. Solid wastes are largely rejects from waste paper cleaning, and these are landfilled on the site. Fuel tanks are provided with secondary containment.7. The entire project site and facilities are generally neat and well-maintained. Appropriate fire prevention measures are incorporated throughout. The plant has one fire truck and a trained fire brigade. All employees receive training in health and safety, and a safety committee conducts monthly audits of the plant. A health post with two nurses is on site. Staff are issued and required to wear Personal Protective Equipment as required for their tasks and work locations. UPPC has achieved ISO 9002 quality certification, and is presently preparing for ISO 14001 certification. UPPC is also a member of the Philippine pulp and paper industry association and is active in developing environmental management standards for the industry.8. IFC will monitor ongoing compliance with World Bank Group environmental, health and safety policies and guidelines during the lifetime of the project by evaluating reports submitted annually to IFC by UPPC, in a form to be specified by IFC, and by conducting periodic supervision.9. Based on its review of available information regarding potential environmental impacts and proposed mitigation measures, IFC concludes that this proposed project will meet World Bank Group environmental, health and safety policies and guidelines and Philippine government requirements.