10304 - Central Aguirre Portuaria

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Environmental Review Summary

Project Number

10304

Company Name

Central Aguirre Portuaria S.A.

Date ERS Disclosed

Apr 19, 2001

Country

Bolivia

Region

Latin America and the Caribbean

Environmental Category

B - Limited

Status

Completed

Previous Events

Approved : Jun 21, 2001
Signed : Feb 25, 2002
Invested : May 24, 2002

Sector

Port and Harbor Operations

Industry

other

Department

Regional Industry INF LAC & EUR

Project Description

Puerto Aguirre is an inland river port in eastern Bolivia, located on the Tamengo Canal, a tributary of the Paraguay-Parana international waterway. Barge convoys connect Puerto Aguirre to other ports on the Paraguay-Parana waterway in Paraguay and to Buenos Aires, Argentina (about 2,500 km distant). Rail and highway links connect Puerto Aguirre to the interior of Bolivia and Brazil as well as coastal ports in Brazil and Chile. The town of Quijarro, population about 16,000, abuts the site and is on the main highway that connects Brazil and Bolivia. Corumba, the business center of the region (population about 100,000) is about 10 km by road from the site in Brazil. Because the project is on an international waterway as defined in IFC policy OP 7.50, the IFC Executive Directors representing the other riparian countries have been notified as per the policy.

Puerto Aguirre started operations in 1988 mainly as a grain export transshipment facility (rail to trucks), and with a small barge terminal handling grain and general cargo. IFC first invested in the port in 1992 for expansion of the company’s grain terminal. The port has since expanded operations within the 206 ha site to include vegetable oil and diesel fuel handling. It also operates as a commercial and industrial free zone, under a 40-year concession awarded in 1991 from the Government of Bolivia.

The proposed project is the expansion of the port facility and the adjacent free zone. It includes: extension of the facilities of the free zone to allow more storage space; expansion of the bulk terminal for handling soy products and general cargo; and expansion of the diesel fuel terminal by constructing two additional storage tanks and improvement of existing facilities. The proposed expansions and improvements are expected to be completed by 2003. Expansion of facilities will take place within the existing site, without additional land acquisition.

Environmental and Social

The sponsor has presented plans to address these impacts to ensure that the proposed project will, upon implementation of the specific measures agreed, comply with applicable host country laws and regulations and World Bank/IFC requirements. The information about how these potential impacts will be addressed by the sponsor/project is summarized in the paragraphs that follow.

Existing operations at Puerto Aguirre are generally compliant with IFC’s guidelines for port projects. The company’s approach to site development results in limited site disturbance and low impact. Environmental infrastructure, although basic, is reasonably well maintained and adequate for current operations.

The free zone operations consist of two components - a retail facility and general cargo/bonded warehouses. The expansion project will provide an additional 1,000 m2 of warehouse space as well as a new office building for customs administration. The port entrance road (about 350 m), currently a dirt road, will be paved. Only minor environmental impacts will result from the free zone expansion.

In 1996, the company entered into a joint venture with Cargill International Inc. to own and operate the bulk terminal for soy and grain. Cargill is the day-to-day operator. The facility is primarily used for export of Bolivian soy products (soybeans, meal and pellets) that arrive by rail and truck, although it is sometimes used for wheat imports. The expansion project will provide more storage and handling capacity, and will include a new 33,000-ton storage silo, rail/truck unloading facilities, scales, and transfer equipment. The project will also establish limited capabilities for handling of general cargo and containers over the grain dock. Cargo received or shipped will be handled through the warehouses in the free zone. Environmental issues from these activities will be minimal. Existing dust collection systems consist of cyclones and collection bags only at conveyor transfer points. Ventilation and dust control equipment will be upgraded as part of the project. The existing system of grain temperature sensors, used for fire prevention, will also be expanded as part of the project.

The Cargill JV also operates the vegetable oil terminal, which is used primarily for export of crude soybean and sunflower oils. The existing loading dock and oil pipeline will be replaced as part of the project (this work is partially complete); only minor impacts are associated with this work. A new third tank of 2,500-ton capacity is being constructed as part of the project, located within the existing spill collection berm.

In 1997, the company formed a joint venture with The Williams Companies, Inc. for construction of a diesel fuel terminal to supply diesel fuel and provide terminalling services to fuel importers in Bolivia and Brazil. The Williams Companies, Inc. is the operator and constructed the terminal to specifications similar to those for its inland river terminals in the USA, and has an environmental license from the Bolivian Government. Double-hulled barges are used for diesel fuel shipments. The fuel transfer pipeline has shutoff valves at each end to assist in controlling spills. The expansion project includes the construction of two additional 5,000 m3 storage tanks, implementation of a water and foam-based fire fighting system to meet current Bolivian standards, dredging to improve access to the dock, and expansion of the administration building to accommodate a laboratory for fuel quality analysis.

For spill protection the diesel fuel tank farm is surrounded by an earth berm with a capacity that exceeds the volume of the existing and proposed oil storage tanks. The earth berm also provides for collection of storm water, and collected runoff is stored in a tank and processed through an oil/water separator before discharge. The truck and rail car load-out racks have sumps that are also connected to the oil/water separator.

The port is configured such that only necessary equipment is located adjacent to the river; all storage facilities are situated in upland areas. During construction of past terminal facilities dredged material was disposed of in low-lying areas behind the docks. Native vegetation quickly reclaimed the disposal sites. A small amount of dredging to improve access at the diesel terminal is planned as part of the expansion project. Disposal of the dredged material, expected to be non-contaminated, will affect only a small area which will naturally revegetate.

The project will not introduce new risks or significantly alter the existing traffic on Tamengo Canal and Paraguay-Parana waterway. Arrangements are in place among the operators of the free zone, the grain and vegetable oil terminals, and the diesel terminal for response to spills, fires and other emergencies. Water tank and hydrant systems supplemented by handheld extinguishers provide fire protection in the free zone and grain terminal. The existing fire system meets industry practice for a diesel fuel terminal in a river port. Bolivia now requires a more extensive system, thus an upgraded system is included as part of the project.

Spill collection booms are deployed around docked barges at the diesel and vegetable oil terminals. Absorbent booms and other spill cleanup gear are stored in two 40-foot containers at the diesel terminal. An on-call arrangement is in place with a specialty response company in the event of a major spill. The port is well prepared for the current and planned scale of operations. There have not been any major accidents or spills since opening of the oil terminal in 1997

General fueling service is provided to vessels at the same dock as used for fuel offloading. Meters and valves at the dock area are equipped with a pan for collecting drips and small spills. The port does not provide other vessel support and ship-based effluents including sewage and bilge waste effluent are not offloaded at Puerto Aguirre.

Septic tanks are used for sewage disposal at all locations on the site, which is acceptable for the current and planned scale of operations. Solid waste results mainly from the free zone, and consists of cardboard and domestic trash. Very little hazardous waste is generated. Solid waste is disposed of locally in a landfill.

Employees are provided with personal protective equipment appropriate to their tasks. Workers at the grain terminal wear masks for protection against grain dust and are subject to regular medical monitoring following Cargill International''s safety standards. Likewise, the diesel fuel terminal follows The Williams Companies'' safety and operational procedures. The respective port operators provide training.

Conclusion & Monitoring

This Environmental Review Summary (ERS) is prepared and distributed in advance of the IFC Board of Directors' consideration of the proposed transaction. Its purpose is to enhance the transparency of IFC’s activities, and this document should not be construed as presuming the outcome of the Board of Director’s decision. Any documentation that is attached to this ERS has been prepared by the project sponsor or in conjunction with the project sponsor and authorization has been given for public release. IFC has reviewed this documentation and considers that it is of adequate quality to be released to the public but does not endorse the content. The following ERS is disclosed in accordance with IFC's Disclosure of Information Policy that went into effect September 1998.

The map is for illustrative purposes and does not imply the expression of any opinion on the part of the World Bank, concerning the legal status of any country or territory or concerning the delimitation of frontiers or boundaries. Country borders or names do not necessarily reflect the World Bank Group's official position. In some cases, available project location information is limited to the country of the project's activities. Locations are approximate.

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