10530 - Diamond Cement Ghana Limited

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Environmental Review Summary

Project Number

10530

Company Name

Diamond Cement Ghana Limited

Date ERS Disclosed

Mar 28, 2001

Country

Ghana

Region

Africa

Environmental Category

B - Limited

Status

Completed

Previous Events

Approved : Jun 29, 2001
Signed : Jun 28, 2002
Invested : Jan 26, 2004

Sector

Cement

Industry

other

Department

Regional Industry - MAS Africa

Project Description

The project involves the establishment of a 100-ton per hour (about 600,000 tons per year) grinding unit to produce ordinary Portland cement for the Ghanaian market mainly. It will be implemented and managed by Diamond Cement Ghana Ltd. (Diamond), a Ghanaian company created in 1998. The new plant will be located in a rural and undeveloped area, at Nkorgbuitame, near the villages of Akporkploe and Dzivorkope, Ketu District, at 3 km north of Aflao Town. Wacem, a Togolese cement producer will supply the clinker Diamond will grind to produce cement. Trucking arranged by Wacem will convey clinker to the Diamond Cement Plant. The plant is at the initial stages of its physical development: a site has been selected, most of the equipment suppliers have been identified and basic civil works have started. Diamond’s operation will employ 400 people.

Environmental and Social

The sponsor has presented plans to address these issues and demonstrated that the proposed project will comply with applicable World Bank requirements. The information about how these potential impacts are addressed by Diamond Cement is summarized in the paragraphs that follow.

Site Location: The plant will be built in an undeveloped rural area of about 50 acres which is currently not used for agricultural or other purposes. Site visits by the appraisal team have confirmed that the site was not occupied or used before construction started. The zone has been declared an industrial zone by the Ketu District Assembly on September 2000, following a request from the sponsor. The nearest human settlement is the town of Afloa, 3 km away from the proposed site. Isolated dwellings ( Nkorgbuitame and Akporkploe) are located near the site which is a zone of low population density.

Impact of increase of Traffic: Current traffic on the 3.5 miles to the plant is minimal and during the operational phase, an average of 100 truck per day will be using this dirt road. Speed will be limited to 20km/hour and at IFC''s request, the sponsor has agreed to implement additional measures to mitigate the impact of the increased traffic (speed humps, fences,…). These will be defined in consultation with the Ketu district and will be submitted to IFC prior to disbursement.

CFC free equipment: The sponsor has confirmed in writing that all equipment will be CFC free.

Air emissions: Air emissions associated with the project are dust particulates from the plant, airborne dust particles from clinker transportation as well as noise. To minimize dust emission and maintain ambient air quality, Diamond Cement is committed to install state-of- the art technology-fabric bag filters, design movement of raw material and finished product to provide a dust free operational plant; and will monitor air quality to evaluate the efficiency of such measures. Submission of a detailed monitoring plan for dust emission within the plant and on the dirt road used by the trucks will be a condition of disbursement.

Noise levels: Noise levels are expected to be high. Mitigation measures include noise attenuators for compressors and ear proof equipment for workers. The sponsor has committed to regularly monitor the noise level and implement corrective actions should IFC’s guidelines be exceeded.

Water and Power Supply: Water is to be pumped from a borehole located on site. Daily needs are estimated at around 50m3. Water used for cement cooling, about 34 m3 per day will be recirculated and sewage from will be collected and disposed off in septic tanks. Permission has been obtained for the use of the borehole and the amount to be drawn daily from the aquifer which is not used by the surrounding villages. Power will be supplied by the local utilities. A stand-by generator will be installed to prevent from power cut and 1000l of fuel will be stored on site. Both the generator and fuel storage will be in retention to prevent soil contamination by spill.

Solid waste management: Solid waste produced at the plant mainly consists of burst paper sacks (about 7200kg/year), office paper and metal scraps (about 6000kg/year) from discarded grinding media. Burst paper sacks and office paper will be collected in an internal dump yard and incinerated or disposed with the help of the "Ketu District Assembly " which is responsible for waste management in the district. Metal waste will be given to scrap dealers for sale to Ghanaian steel works located in Tema.

Fire and Safety: Fire risks are associated with electric motors and other electrical part of machinery. The sponsor is committed to take precautionary measures to forestall fire outbreaks among which adequate and suitable fire extinguishers, fire hydrant points, smoke detectors, fire alarm and caution notice at points of fire risk. At the request of Ghana EPA, the sponsor will also submit to EPA a comprehensive contingency plan that will also address fire and safety issues. A copy of the contingency plan will be submitted to IFC for review.

An Environmental Assessment Statement has been submitted to Ghana EPA as required by Ghana legislation on December 2000. Comments from Ghana EPA on the Environment Impact Statement will be fully addressed and copies of additional information submitted to EPA will also be provided to IFC. Approval of Diamond Cement plans by Ghana EPA and implementation of all of Ghana EPA''s recommendations will be made a condition of disbursement.

Health and Safety: The provisional Environmental Management Plan presented in the Environmental Impact Statement includes Health and safety issues. At IFC’s request, and as also partly requested by Ghana EPA, the sponsor has agreed to submit a detailed Health and safety Plan including a medical and HIV policy as well as a calendar for implementation. This will be made a condition of disbursement.

The ERS will be released in Ewe and posted at project site and at the town hall of Aflao. Locals will be kept informed through local media as per the IFC ''guidance to project sponsors on local disclosure of the Environment Review Summary.

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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