20490 - Domicem

Who We Are
Who We Are

IFC is the largest global development institution focused on the private sector in developing countries. By encouraging growth, IFC advances economic development, creates jobs and improves the lives of people.
More About Us
About IFC

Our Leadership

Development Partners
Accountability

Learn more about accountability
Annual Report

Download the Report
What We Do
What We Do

IFC advances economic development and improves the lives of people by encouraging the growth of the private sector in developing countries. We achieve this by investing in impactful projects, mobilizing other investors, and sharing expertise.
What We Do Overview
SOLUTIONS

Our products and services
OUR PRIORITIES

Climate Business

Fragile & Conflict Afflicted Situations

Gender

Mobilizing Private Capital

Sustainability
SECTORS & EXPERTISE

Agribusiness & Forestry

Creative Industries

Education

Financial Institutions

Funds

Health

Infrastructure

Manufacturing

Public-Private Partnerships

Tourism, Retail & Property

Trade & Supply Chain Finance

Venture Capital

Working Upstream
Where We Work
Where We Work

As the largest global development institution focused on the private sector, IFC operates in more than 100 countries around the globe. We apply lessons learned in one region to solve problems in another.
Overview
By Region

Africa

East Asia and Pacific

Europe

Latin America and the Caribbean

Middle East and Central Asia

South Asia
Our Impact
Our Impact

Our impact improves lives. IFC brings a clear set of advantages to the world’s most challenging markets. Including a history of innovation, a global mandate, and a determination to achieve measurable development impact.
Our Impact Overview
PRINCIPLES & MEASUREMENT

Impact Investing at IFC

Measuring and Monitoring (AIMM)

Evaluation

Sustainable Development Goals (SDGs)

Owned by 186 member countries and consistently rated AAA/Aaa. IFC aims to achieve our mission of promoting development by providing debt and equity to the private sector, through a range of benchmark and bespoke products.

For Partners

For Investors

Get in Touch

Environmental Review Summary

Project Number

20490

Company Name

Domicem S.A.

Date ERS Disclosed

May 8, 2003

Country

Dominican Republic

Region

Latin America and the Caribbean

Date Revised ERS Disclosed

Mar 16, 2005

Environmental Category

B - Limited

Status

Completed

Previous Events

Approved : Sep 26, 2003
Signed : Oct 3, 2003
Invested : Aug 18, 2004

Sector

Cement

Industry

other

Department

Gbl Ind, Manufact, Agribus & Services

Project Description

The project is to construct and operate a greenfield, integrated, dry process cement plant of 800,000 tons per year (tpy) clinker capacity, and 900,000 tpy cement capacity, at an estimated cost of $113.5 million (cost estimate revised on March 16, 2005). The plant will be set up at a site 40 Km from the capital Santo Domingo, 26 Km from the international port of Haina, and 2 Km from the village of Sabana Grande de Palenque. The project will use locally available raw materials. The proposed limestone and shale quarries would be in the immediate vicinity of the plant. The project will also include a 25 MW captive power generation plant to eliminate reliance on the national electricity grid. The project will become operational by the late 2005. The project company, Domicem, will sell 90% in the domestic market and 10% in the export market.

The project sponsors are the following:

- Colacem, a reputed Italian cement industry player; and
- a group of Dominican investors with knowledge of the local cement market and implementation experience.
IFC has been asked to assume the entire debt financing by providing an A loan of $ 21 million to Domicen and sindicate a B loan of $21 million.

Environmental and Social

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. Further information is provided in the attached documentation.

Domicem prepared an Environmental Impact Assessments of the integrated cement plant and the quarries, which amount to a full EIA as required by the DR’s General Environmental Law (64-00) dated August 18, 2000. The EIA and its corresponding Environmental Management Plan (PMAA) were subject to public consultation according to the Dominican requirements. The company also provided supplementary information, which together with the EIA fulfils IFC’s environmental assessment requirements.
Colacem has corporate policies and procedures to prevent negative impacts on the environment or the workforce and for emergency preparedness and response, which Domicem has committed to apply consistently in its cement plant. These management practices are consistent with international standards and with IFC’s requirements. To reduce the effect of air emissions and wastewater discharges, appropriate measures have been envisaged as stated in the corresponding Environmental Management Plan.
The integrated cement plant is a dry process, state-of-the-art facility with pre-calcination and best practice on fuel consumption. These characteristics ensure that potential air emissions will be minimal. Also, the contractor for the cement plant (CBMI) issued a guarantee stating that air emissions will be compliant with IFC requirements (i.e. NOx <400 mg/Nm3, SO2 <600 mg/Nm3, Dust <50 mg/Nm3). The contractor for the power plant has committed to issue a similar guarantee for its liquid oil-fired 25 MW power plant (i.e. NOx <460 mg/Nm3, SO2 <2000 mg/Nm3, Dust <50 mg/Nm3).

According to the information provided by the company, Domicem’s CO2 emissions would amount to approximately 680,000 tons/year. The corresponding emission factor compares favorably with the most exacting benchmark for OPC, the type of cement Domicem intends to produce. Further reductions of CO2 emissions cannot be anticipated unless Dominican Standard Specifications and the Dominican market allow for the production of blended cement (thereby reducing the clinker load).

The impacts of limestone and clay quarrying will not be significant. Except for small areas that will not be affected by the project, the 500 ha site for the limestone and clay quarries does not contain natural habitats. Most of the concession area was formerly used for cattle grazing; only a few oxen remain, which are used for hauling sugar cane for the neighboring sugar mill owned by one of Domicem’s partners. There are no settlements, permanent or otherwise, in the project area. The quarrying process will consider shallow extraction following the contour of the terrain; therefore, the visual impact will be minimal. Furthermore, the quarry will not be visible from the neighboring roads. The quarrying plan includes an adequate conceptual reclamation plan.

The clay quarry will occupy a much lesser area either in the same location as the limestone quarry or in another location nearby. The alternative location identified for the clay quarry is also the property of Domicem’s partners and does not contain natural habitats or settlements that might otherwise be matter of concern.

The nearest human settlement is the town of Sabana Grande de Palenque, located about 2.5 Km from the project. It is unlikely that the Domicem would produce negative impacts to the population of Palenque. It would, however provide jobs and opportunities for improving the living conditions of the inhabitants. IFC has required the preparation of a Public Consultation and Disclosure Plan to ensure public participation in the preparation and implementation of Domicem’s community development initiatives.

Domicem’s partner, Colacem, has a track record of implementing community development programs in association with its plants in Italy. Domicem has committed to support similar efforts in the Dominican Republic.

Conclusion & Monitoring

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:

- the status of implementation of any measures contained in the Environmental and Social Action Plans and
- ongoing performance of project-specific environmental, health and safety and social activities as reflected in the results of periodic and quantitative sampling and measuring programs.

Periodic site supervision visits will also be conducted.

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.

Projects

Environmental Review Summary

Project Description

Environmental and Social

Conclusion & Monitoring

Similar Projects

Projects

Environmental Review Summary

Project Description

Environmental and Social

Environmental Category B Disclosure Requirementsy

Environmental and Social Issues

Proposed Mitigation for Environmental and Social Issues

Environmental and Social Documentation

Conclusion & Monitoring

Conclusion

Monitoring and Compliance

Press-Release

Related SPI

Similar Projects

Disclaimer