Vimaflour (Cai Lan Flour Mills)

completed

- 3 - June 5, 1995Environmental Review Summary (ERS)Project Name VIETNAM-Vimaflour Ltd.Region AsiaSector AgribusinessProject No 0048771. Vimaflour Ltd. is a joint venture between Malayan Flour Mills Bhd, a large Malaysian milling company, and Vietnam Central Food Corporation 1, a Vietnamese government owned enterprise. The facility will be managed by Malayan Flour Mills. The proposed project, sponsored by Malayan Flour Mills, involves the building and operation of a 400 tpd wheat flour mill in Cai Lan about 170 km northeast of Hanoi. Cai Lan is the main deep water port in Northern Vietnam.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 and dust control; • liquid and solid waste management; • use of chemicals; • noise generation; • fire safety; and • employee training and safety.The information provided about how these potential impacts would be addressed in the Vimaflour project is summarized in the paragraphs that follow.3. The flour mill will be located within the Cai Lan port area. A masterplan for the port has been prepared by the Japan International Cooperation Agency (JICA). The masterplan includes tentative liquid effluent criteria well within World Bank guidelines. As part of the port development, good road access and a rail connection have been established. The actual site was leveled some years ago for the construction of a government owned flour mill. The land is now covered by grass and scrub vegetation.4. For dust emission control and as a protection against dust explosions, the mill will be equipped with reverse jet dust filters. Dust emissions will hereby comply with both local requirements and World Bank guidelines. The mill will not have any other air emissions.5. The milling operation will not create any wastewater. Only wastewater source will be domestic wastewater, this will be treated in Imhoff tanks to comply with World Bank guidelines. - 2 - June 8, 19956. The milling operation will not create solid waste. Potential rejected flour will be re-milled to acceptable quality.7. The flour mill will only use ordinary flour bleaching and maturing chemicals. These chemicals will be kept under proper storage and handled by trained personnel. No direct exposure of employees are foreseen.8. Within the mill noise will be generated by the rollermills. Under normal operation, employees will spend their working hours within the control room facilities, which are air-conditioned and noise protected. For work outside the control room facilities, hearing protection will be provided as applicable. The mill will be constructed to comply with local requirements and World Bank guidelines for ambient noise levels.9. The mill will have a fire control program with frequent drills and coordination with the local fire department.10. To ensure the quality of the product and the safety of the operation, Vietnamese technicians will be trained for one year in Malaysia at the sponsors facility. The trainees will need to pass the City & Guild Course of Flourmilling in addition to the American Operative Milling Course. The training will include environmental safety and health issues.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 Vimaflour and by conducting periodic supervision.12. Based on its review of available information regarding potential environmental impacts and proposed mitigation measures, IFC concludes that Vimaflour''s proposed project is designed to meet World Bank environmental, health and safety policies and guidelines, and host country requirements.