Weihai Weidongri Comprehensive Foodstuff Co., Ltd.

completed

- 2 - August 18, 1995International Finance CorporationA Member of the World Bank GroupInternational Finance CorporationA Member of the World Bank GroupEnvironmental Review Summary (ERS)Project Name China-Weidongri Comprehensive Foodstuff Co., LtdRegion AsiaSector Food and AgribusinessProject No. 0070651. Weidongri Comprehensive Foodstuff Co., Ltd (WCF) is a Joint Venture company owned equally by Katokichi (Japan), Hokushu (Japan), Dong-won (Korea) and Weihai Economic and Technical Development Zone (WETDZ)(China). WETDZ, located in the Shandong Province in China in the coastal area adjacent to Southern Korea, will host WCF’s operations. WCF will receive white fish from Dong-won’s fleet of fisherboats and other raw materials, such as oysters, chicken, pork and cabbage from local producers, and import high quality flour for production of high value foodstuff for the Japanese and Korean market. The proposed project involves the building and operation of WCF’s processing and freezing facilities near Weihai.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 Technical and Environment Department staff. The following potential environmental, health and safety impacts of this project were analyzed: • site location and availability of utilities; • air emissions; • liquid effluent treatment; • solid waste management; • hygienical standard; and • general employee training, and health and safety.Information provided on how these potential impacts would be addressed in the WCF project is summarized in the paragraphs that follow.3. The WCF project is being developed on a 6.7 hectare site located within the existing economic development zone with good access to both rail and the port of Weihai. The location is approximately 20 kilometers from Weihai City. Power, water supply and sewage treatment is provided by WETDZ as part of the economic development zone service.4. There are no air emission issues as power will be supplied by the economic development zone and steam will be supplied by a joint venture company also located within the economic development zone. The only potential for air quality problems is the flour sack tipping point in the bread crumb plant. This potential problem will be handled at the source.5. The plant wastewater will be discharged to the WETDZ wastewater treatment system, which will provide central wastewater treatment for the complete economic development zone. WETDZ is discharging treated effluents through an ocean outfall. The WETDZ wastewater treatment plant is presently undergoing a US$ 4 million upgrade, supplied by an Australian company, to increase its capacity to 8,000 m3/day by the end of 1995. WCF will include coarse screening of the wastewater before leaving the plant to avoid build-up, smell, and hydrogen sulphide generation in the pipework system. Remaining treatment will be at the central wastewater treatment plant.6. The white fish will be delivered to the plant without head and gut. Chicken and pork will be delivered in major cuts. Solid waste from the plant will therefore consist of cutoffs from the further processing of the meats, together with oyster shells and vegetable trimmings and some packing materials. The solid waste will be disposed of in a municipal operated landfill.7. The plant is hygienically designed with cleanable surfaces and hand and foot washing facilities at personnel entry points. Employees will be provided with protective boots, coats and hats as well as frequent laundry service. The plant layout allows for full segregation (including bathroom facilities) of uncooked process areas (such as the coating line) and the thermal processing area (such as delicatessen preparation and packing). The segregation will prevent cross-contamination of products.8. The plant will employee about 350 people. It is expected that many of the employees will be hired from a local training school, with only about 10 percent coming from Weihai City. There are 140 workers already in training in Korea at Dong-won’s facilities, and approximately 250 workers will have received training by the end of 1995. The training will both ensure a clean high value product and result in better employee health and safety.9. 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 Weidongri Comprehensive Foodstuff Company and by conducting periodic supervision.10. Based on its review of available information regarding potential environmental impacts and proposed mitigation measures, IFC concludes that Weidongri Comprehensive Foodstuff Company''s proposed project will meet World Bank environmental, health and safety policies and guidelines, and host country requirements.