IFC requires that this document is made available through the World Bank InfoShop and to the locally affected community no less than 30 days prior to project consideration by the IFC Board of Directors. The Summary of Project Information (SPI) also provides details of where the ERS has been made available to the locally affected community. The SPI must be sent to World Bank InfoShop no less than 30 days prior to project consideration by the IFC Board of Directors.

This is a Category B project according to IFC’s Procedure for Environmental and Social Review of Projects because a limited number of specific environmental 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 appraising technical and environmental information submitted by the project sponsor. The following potential environment, health and safety impacts of the projects were analyzed: - Site selection - Dredging and dredge spoil disposal - Stormwater management - Handling and storage of dangerous cargoes - Ship support operations - Liquid, solid and hazardous waste disposal - Oil/hazardous materials storage and handling - Emissions to air - Emergency response planning and preparedness. - Environmental, health and safety management

The sponsor has presented plans to address these impacts to ensure that the proposed project will upon implementation of the specific agreed measures, comply with the environmental and social requirements - the host country laws and regulations and the World Bank/IFC environment and social policies and the environmental, health and safety guidelines. The information about how these potential impacts will be addressed by the sponsor/project is summarized in the paragraphs that follow. - Site selection Before development of the Port, the land that it occupies was uninhabited desert. It supported no economic activity nor does the site contain any articles of archaeological interest. - Dredging and dredge spoil disposal Dredging of the access channel, turning basis and mooring basin was undertaken by a dredging consortium contracted to the Government of Egypt through the Red Sea Port Authority (“RSPA”). RSPA will also have responsibility for maintenance dredging of the access channel and basins. It is not expected that frequent dredging will be required because no rivers discharge to the Red Sea near Sokhna, the sea is very clear and little sedimentation is expected. - Stormwater management Terminal areas are paved and graded to slot drains which lead to drainage channels. These in turn lead to solids and oil/fat separators of which three are installed to serve the container, general cargo/bulk and fertilizer terminals. Solids and oil/fats are collected by vacuum truck from these separators, and taken for further treatment. Cleaned water is discharged to the basin. It is the policy of the Port to prohibit access to terminal areas to sub-standard vehicles such as those leaking fuel or oil, and in this way limit potential ground contamination. Any fluid leakages will be contained using absorbent materials to prevent their flow to drains. Livestock have been transported through the general terminal, and there are plans to develop this business and eventually build a feed lot adjacent to the port. Livestock are unloaded to a quay adjacent to but outside the fertilizer terminal and warehouse. Animals then walk from the quay to a dedicated gate in the concession fence and then on a fenced walkway outside the terminal to the holding area. When livestock are moved, mobile barriers are used to create well-defined livestock walking routes, away from drains and outside the fertilizer, bulk or container terminals. Straw is laid on the route in order to absorb urine and feces. After the animals are moved, the straw is collected and composted. - Handling and storage of dangerous cargoes A computer database is used to track the location and properties of all cargo including hazardous cargo while within the port. Particularly dangerous cargoes are stored in a fenced hazardous materials storage area to prevent unauthorized access. Cargos which leak or are at risk of leaking are transported on a spill-capturing plinth to the hazardous materials storage area. The hazardous cargo storage area is equipped with a drainage system which collects to a spill containment tank. Any spilt fluids are collected from the tank by vacuum truck, packed in sealed drums and delivered to the consignee. The hazardous materials storage areas is equipped with spill response kits comprising containing tubes and absorbent materials. Fire fighting hydrants are located in the area and a portable foam system is also available for fire fighting. Breathing apparatus is provided near the hazardous materials area. - Ship support operations The Port will accept various ship-borne wastes. These will be dealt with by the means now described. --Ballast Water Ships exporting cargo such as steel or fertilizer from Sokhna will enter port in ballast condition. SPDC will only accept into port ships built after 1985 which have clean separated ballast water tanks. Discharge of ballast water to the basin is only permitted if the ballast is Red Sea water. --Oily Liquid Wastes Ship-borne oily liquid wastes such as oily bilge water, used lubrication oil, fuel residues, oily washing water etc. will be collected from ships by vacuum truck which will take these wastes to an off-site storage and treatment facility where oil is separated and sold for reprocessing. --Ship-borne Sewage SPDC accepts ship-borne sewage, which is collected by vacuum truck. A waste water treatment plant to accept sewage from ships and land operations has been built at Sokhna, but the volume of sewage does not yet meet the minimum flow requirements for this plant. In the interim, ship-borne sewage is disposed to an off-site government operated waste water treatment plant. --Solid Waste Ship-borne garbage when packed in sealed bags will be collected by a truck and transported to a materials separation and landfill site operated by the municipality. Paper, metals, plastics and glass are separated and sold for recycling. Ship maintenance waste will be collected by the Port and transported the municipality’s hazardous materials disposal site. Cargo residues are collected, packaged and delivered to the consignee. - Liquid, solid and hazardous waste disposal Wastes arising from land operations are disposed of in the same manner as equivalent ship-borne wastes as now described. Waste water from buildings will be discharged to a sewer system connected to the waste water treatment plant. However, sewage is currently collected and transported by truck to the off-site waste water treatment plant Garbage arising from the port operations will be collected by SPDC and taken to the separation and landfill site. Oily and hazardous wastes such as used lubricating oil or batteries, will be collected and sold for reprocessing. - Oil/hazardous materials storage and handling SPDC’s three oil storage tanks are located in a dedicated tank farm. The tank area has a concrete floor and is surrounded by a concrete containment wall providing an enclosed capacity equivalent to the total oil storage capacity of all tanks. Workshop areas are currently under construction. Oils, solvents, and paints will be used in this area. The workshop has a dedicated drain which leads to a collection tank. This tank will be emptied as required by vacuum truck and materials sent for reprocessing, along with oil separator waste. - Emissions to air SPDC obtains its electricity from the grid therefore there are no air emissions from generators. Emissions can arise however from bulk materials and fertilizer handling. In the bulk terminal, dust arisings are limited by the use of clamshell grabs in loading and unloading scrap and leak proof grabs when handling iron ore pellets and coal. Crane operators will lower grabs before opening to minimize the height through which unloaded material falls. Water spray systems are installed at the unloading hopper, conveyor transfer points and at material stockpiles in order to minimize dust. Additionally, conveyor transfer points are enclosed. Fertilizer (urea) is transported from the factory to the loading warehouse by truck. Dust extraction systems will be used at the dump pit, at conveyor transfer points, feeder hoppers and the shiploader, and dust collected in these will be returned to the product flow. - Emergency response planning and preparedness. SPDC has responsibility for emergency response on the land-side of the terminal, while the Red Sea Ports Authority has responsibility for the water side, the access channel, turning and mooring basins and anchorage. On the land side, emergency response procedures are in place to deal with spills of hazardous materials and fire. SPDC has a team of 3 emergency response coordinators, supplemented by security staff who have been trained in emergency situations. Two members of this team have responsibility for liaison with external parties. On the water side, the Red Sea Ports Authority has two tugboats equipped to deal with emergencies. These boats have water and foam firefighting equipment, spill containment booms, and skimmers to facilitate removal of oil from water. A firewater main system will be constructed through out the terminal. This system serves reel-hoses in the offices, sprinklers and fire hoses in the warehouse (though not the fertilizer warehouse), and a portable foaming fire fighting system . The fire system is capable of using potable or sea water and has electric and diesel operated fire pumps plus smaller pressurizing pump. - Environmental, health and safety management Sokhna Port has been in operation for six months only. The port aims for high environmental standards and has a written environmental and safety policy. The Port’s Security, Safety and Environmental department has a manual of environmental and safety procedures and document controls. Sokhna will seek certification of its safety and environmental management procedures to ISO 14000 and OHSAS 18000 standards respectively and documentation and procedures to these standards are under development. It has been found necessary to devote considerable attention to raising awareness of safety and environmental matters among SPDC’s staff , contractors, visiting drivers and port users, which has been done through the use of signs, booklets and conversation. All security staff and surveillance camera operators are trained in safety and environmental matters and are alert for breaches in the necessary standards, such as smoking in a non-smoking zone, or littering. SPDC contracts-out its waste handling operations (described above). In all cases, it has established procedures which require documentation that waste is delivered to the appropriate disposal authority (e.g. the refinery for oily waste or the separation/disposal facility for garbage) and demands receipts.

This ERS contains the full environmental and social documentation prepared for the project.

Accordingly, IFC concludes that the proposed project will meet the applicable World Bank/IFC environment and social policies and the environmental, health and safety guidelines upon successful implementation of the agreed mitigation measures.

IFC will evaluate the project's compliance with the applicable environmental and social requirements during the lifetime of the project by reviewing the annual monitoring reports (AMRs) prepared for the project covering: ongoing performance of project-specific environmental, health and safety activities as reflected in the results of periodic and quantitative sampling and measuring programs. Periodic site supervision visits will also be conducted.