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.
- Land acquisition:
The sponsors have obtained a 50-year renewable lease from the Government of Mozambique for a 28-hectare site in Beira, in the industrial area near the port of Beira. The site is devoid of infrastructure and has no previous history of development. The sponsors have confirmed that no one was either living or earning a living from activities on the property at the time the site was acquired.
- Supply chain issues:
Merec only sources wheat through reputable international traders (Seaboard, based in the US, and Holbud, based in the UK) who obtain supplies from the international commodity markets. The sponsors have taken an active role in promoting local production of wheat and rice, and have indicated that they will source inputs locally as soon as these are available in sufficient volume, and of a quality that meets international standards. The Zambezi valley in Mozambique produced significant volumes of wheat during colonial times, and the country is currently in the process of increasing its wheat production again. The presence of Merec’s mill in Beira, which is considerably closer to the Zambezi valley than the mills in the Maputo area, could act as a catalyst to the expansion of wheat growing areas. However, it likely will take 5-6 years for the country to produce sufficient quantities of required quality to supply local mills. The planned rehabilitation of the Mozambican railway system, which is supposed to start in approximately a year, will also be important, as transport within Mozambique is also an impediment to ensuring a reliable supply of inputs to the mills.
- Source of water and power supply including fuel storage if applicable:
The proposed project site is served by power from the national grid and water from the municipal system. The new mill will require approximately 10,000 liters of water per day, which will be drawn from the municipal system and supplemented by a borehole. Water will be stored in a new 60,000-liter tank installed on the roof. The Merec sponsors have considered installing their own emergency power supply but found that it would only be economical in the events of power cuts lasting two to three days, which do not occur. Merec instead intends to commission a 100kVA diesel generator to ensure reliable supply for lights and the other essential equipment. The generator and fuel tanks will be bunded to ensure that fuel spills or leaks do not reach soils or surface water.
- Treatment and disposal of wastewater from processing operations:
As the only water used in processing is in the form of steam, the mill will generate no process effluent. Domestic waste water will be discharged to a septic tank and, from there, to the municipal sewerage system.
- Minimization, recycling and disposal of solid wastes from processing operations:
Merec has indicated that wastes from the new wheat mill plant will be sold as animal feed locally. Office and packaging wastes will be collected on site and disposed in a municipal landfill.
- Air and dust emissions from plants, boilers and other sources:
The only emissions associated with the milling operations are dust emissions, and Merec controls these in several ways. Merec pays a premium to purchase higher quality wheat, as the dust content of these supplies is lower. All of the milling equipment is fitted with hoods and extraction fans, which collect the dust and convey it back to the milling machines. Wheat supplies for the new wheat mill will be put through dust separators to remove as much dust as possible before being stored in silos, which will reduce the dust content and the likelihood of flash explosions. IFC has visited the Machava plant on a number of occasions, and observed dust emissions are very low. Steam for the pre-processing phase of the milling operations is provided by a small electric hot water heater on the premises.
- Use of CFC cold storage equipment, if applicable:
At the present time, Merec anticipates installing air conditioning equipment only in the in-house testing laboratory. The sponsors have agreed to install equipment that utilizes non-CFC refrigerants, in accordance with the provisions of the 1987 Montreal Protocol on Substances that Deplete the Ozone Layer.
- Chemical handling and storage, if applicable:
Not applicable; no chemicals are used in the processing operations. Fumigation of wheat inputs will be subcontracted to specialist firms located within the port of Beira.
- Employee exposure to noise and dust, and provision of personal protective equipment and training:
The sponsors have reviewed the relevant IFC/World Bank Group guidelines and agreed to comply with them, as well as with national and local regulations of the Mozambique government. The new building will be constructed with regard for the sub-tropical weather conditions in Beira. As noted, milling equipment will be fitted with dust extraction hoods and dust emissions in the mill are expected to be minimal. Packaging in the new wheat plant will be fully automated, so that no employees will be exposed to dust emissions in this phase. Merec will nonetheless supply dust masks to employees working in areas of the plant as and when dust emissions are evident.
- Compliance with Mozambican labor law and IFC policy on harmful child labor:
Most of the labor for the mill will be sourced from nearby suburbs, so that there will be no need to house staff on site. Merec''s existing plant complies fully with all Government labor laws and regulations, and these requirements will be adhered to at the new mill as well. Merec''s management has reviewed IFC''s policy and guidance on harmful child labor and agreed to abide by these provisions.
- Employee safety, medical monitoring and training, including HIV/AIDS awareness:
The wheat mill will be Merec’s second mill from Buhler; the existing maize mill has been operating successfully for 18 months. The Buhler equipment is ISO 9002 certified and is installed with all requisite international quality and safety features. Merec currently employs approximately 45 people in Machava; the same number will be employed at the Beira facility. All employees are provided with overalls and boots, as well as hair restraints for those employees working in the packaging sections. Employees undergo annual health examinations, and employees who become ill are taken to a local clinic for treatment. Merec devotes considerable attention to its on-the-job training program. The mandatory training course for all employees includes a detailed section of safety training. Safety equipment and signage in the new wheat mill will be installed to the same standards obtaining in the existing plant, which has had zero disabling injuries.
- Packhouse and storage facility hygiene:
The production manager in Machava has established a quality control system including on-site laboratory facilities with the intent of obtaining ISO 9000 certification for the plant. The laboratory serves to analyze and test both incoming grain and flour produced. Merec employs strict cleaning and hygiene practices to control rodents, although it is at times necessary to place rat poison in certain parts of the plant. When necessary, the substances used are ones that are not toxic to humans and are used in full accordance with the manufacturer''s recommendations.
- Prevention of and response to fires and flash explosions:
Both the unprocessed wheat and finished products will be filtered before storage in silos, to prevent dust explosions. The facility is equipped with fire extinguishers throughout. Merec provides fire prevention and response training to all employees, in conjunction with a local fire-fighting supply company. The entire facility is posted with ''no smoking'' signs, and smoking anywhere in the plant is strictly forbidden.
- Mill hygiene and good housekeeping measures:
Housekeeping at the existing operation in Machava is very good. Ablution blocks are located away from the processing areas and are supplied with hot water, anti-bacterial soaps and towels. Employees are given training in personal and workplace hygiene. The plant is cleaned and swept out daily.
- Local disclosure:
The ERS is being translated into Portuguese and made available for public review in Beira and at the World Bank office in Maputo. An advertisement was published in the national daily newspaper, Noticias, on April 30, 2003, announcing that the ERS is available for public review.
