10692 - Grand Prix Autobody

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Environmental Review Summary

Project Number

10692

Company Name

Auto Body Grand Prix Lda

Date ERS Disclosed

Mar 21, 2001

Country

Mozambique

Region

Africa

Environmental Category

B - Limited

Status

Completed

Previous Events

Approved : Jun 13, 2001
Signed : Aug 23, 2002
Invested : Dec 24, 2002

Sector

Automotive and Light Vehicle

Industry

other

Department

Regional Industry - MAS Africa

Project Description

This project, which is to be financed through the Small Enterprise Fund (SEF), involves the expansion of an existing motor vehicle repair company in Maputo. The company is presently operating from a rented facility with an area of less than 4,000 square meters in an industrial area in Maputo and need to move to bigger premises and expand its equipment. Grand Prix Autobody started operations in 1998 doing body repair and paintwork on all makes of vehicles, and quickly extended its services to cover full car maintenance. Grand Prix has quickly established itself as one of the leading motor vehicle repair companies in Mozambique with the best quality equipment as well as up-to-date materials used in the industry. Its quality workmanship has guaranteed Grand Prix a preferred status among all Mozambican insurers as well as international companies and donor agencies established in Mozambique. The company''s level of workmanship and service led to the appointment of Grand Prix as a Nissan Service Center in 2000. This appointment is expected to be upgraded to a full dealership status in 2001. Grand Prix''s quality and speed of service has made it a preferred maintenance and repair company for most rent-a-car businesses in Mozambique. It has a contract with Avis, the largest, who has asked Grand Prix to quote for the maintenance of its 800 vehicles on a 24-hour basis.

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.

1. Land use at the proposed project site and possible contamination from current or past activities: The sponsors have purchased an existing facility and warehouse in a light industrial area of Maputo. The site and warehouse were previously used for grain storage and distribution. The sellers were responsible for removing the contents of the warehouse prior to the Grand Prix taking possession of the facility. There is no evidence of prior contamination at the site.

2. Source of water and power supply: Water will be sourced from a borehole sited in the property purchased, and power will be sourced from municipal supplies. Grand Prix also will have a backup diesel generator to supply power in the event of an interruption. At IFC’s request, Grand Prix will ensure that the generator and fuel tanks will be housed in a concrete containment structure to prevent contamination from fuel supplies in the event of a spill.

3. Disposal of solid and liquid wastes including sewage and wastewater from vehicle servicing activities: Most of the solid wastes generated by Grand Prix’s operations consist of damaged vehicle parts that cannot be repaired. These are disposed of in an industrial landfill area on the outskirts of Maputo. Office waste is disposed of in industrial bins, which are emptied regularly by municipal waste collection services. Sewage is discharged to the Maputo sewage collection system. Greywater from vehicle washing will be discharged into water sumps being built in the premises. Municipality tankers will collect this water on a regular basis.

4. Recycling and/or proper disposal of used motor oils and grease: Used oils and grease from vehicle servicing are stored in drums and collected by a local oil company for recycling. An oil sump will be built on the premises where all used oils and grease will e discharged for collection by Mobil. Grand Prix uses a state-of-the-art vehicle spray painting and baking unit imported from Italy, which generates minimal waste. The filters of the spray boots are thoroughly cleaned once a week, and a full maintenance service is done once a year by the agents. Similarly, all other equipment is maintained on a regular basis by the respective agents.

5. Hazardous materials storage and handling: Grand Prix’s operations do not utilize significant volumes of hazardous materials. Grand Prix uses small amounts of cleansing agents and solvents to clean vehicle parts during repair. These are stored in a locked area of the facility and their use is carefully monitored.

6. Secondary containment, spill prevention and monitoring of fuel or other storage tanks: Grand Prix has diesel storage tanks on the premises. These are segregated from vehicle repair operations for safety reasons and are posted with appropriate warning and hazard signs. At IFC’s request, all fuel storage tanks will be equipped with cement secondary containment structures capable of holding the entire contents of the tanks in the event of a spill or breach. Fuel deliveries and use are carefully monitored to prevent theft and accidental spills.

7. Provision of personal protective equipment and employee occupational health and safety training: All employees are provided with shoes and overalls. Employees involved in soldering and welding are provided with safety glasses and gloves. Employees using solvents to clean vehicles or vehicle parts are provided with gloves and eye protection. The painting and baking unit is largely automated, with employees involved only in moving the vehicles into and out of the unit. Grand Prix, in partnership with all equipment suppliers, provides training to all staff on proper and safe workplace methods. Paint and material suppliers from South Africa visit Grand Prix’s premises once a month to train on the use of their products, and introduce new materials and techniques to all workers. Nissan is also undertaking staff training at Nissan South Africa on mechanical, electrical, service and parts management techniques. A sick room and training room will be built in the new premises. The company has had no serious injuries to any of its employees in its three-plus years of operations.

8. Fire protection, life safety and emergency response preparedness: Because of the high value of the equipment and vehicles on its premises, Grand Prix has implemented stringent fire protection measures. The facility is equipped with fire extinguishers in all areas, which are regularly monitored and serviced. All staff are trained in the proper use of extinguishers. The company employs a 24 hour security company that provides for all the company’s security requirements. The security company is instructed to notify the police/fire brigade and the sponsor in the event of an emergency. The new facility will be equipped with fire reels.

9. General housekeeping and safety provisions: Grand Prix’s existing operations were maintained in an orderly and safe manner, despite the fact that the leased space was small and the work areas consequently were quite crowded. The new facility is much larger, which will alleviate the overcrowding situation. Because of its status as a licensed Nissan Service Center, Grand Prix must maintain high standards of workmanship, quality and safety in its operations and premises.

10. Local Disclosure: Local disclosure of the ERS was made in an advertisement in Noticias published on March 21, 2001. The ERS had been translated into Portuguese and both the English and Portuguese versions are available for review at the World Bank/IFC offices in Maputo.

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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