IFC requires that this document is made available through the World Bank InfoShop and to 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 were identified which will be mitigated by adhering to generally recognized performance standards, guidelines or design criteria. Review of this project included an evaluation of existing operations at Ransa San Agustin, Ransa Ave. Argentina, and Ransa Frio sites. Based upon discussions with engineering staff, remaining Ransa operations in Peru have similar operational issues and existing approaches to environmental affairs management. The following potential environment, health and safety and social impacts were analyzed at each site: - Environmental health and safety management systems; - Occupational health and safety (OHS); - Ambient and point source air emissions, including workplace air quality; - Liquid effluent management; and - Solid waste management. A description of the company’s operations and findings is presented below. The identified environment, health and safety, and social impacts which require ameliorative activities are summarized in a corrective action plan (CAP) that the sponsor will implement as part of the loan agreement. Upon successful implementation of the agreed mitigation measures, the proposed project will meet the Peruvian laws and regulations as well as the applicable World Bank/IFC environment, social, and health and safety policies and guidelines. - Ransa Comercial S.A. Ransa was founded in 1939. The company specializes in handling, storage, and distribution of grains, frozen food, and other general cargo as well as providing services such as in-bond warehouses, shipping, stevedoring, and transportation and distribution. The company has developed into a fully integrated logistics service company based in Peru’s capital city. The company is a market leader in the distribution and storage business. Ransa has three main operation centers in Lima: Ransa San Agustin complex, Ransa Ave. Argentina complex, and Ransa Frio (within Ransa Ave. Argentina). In addition, the company has satellite warehousing and distribution centers throughout Peru. - Systematic Quality, Environmental, and Social Management: Ransa has established an overarching corporate quality and health and safety mission statement and several units hold quality management system certification (ISO 9001:2000). However, the company has not developed an environmental and social mission statement, nor does it have an integrated quality, environment, and social management system. To achieve systematic management of social and environmental affairs, Ransa will establish a corporate management team, consolidate company procedures and management plans, and implement the means to manage all elements consistently. This effort will achieve continuity in the Company’s operations and bring management of the company’s environmental affairs into compliance with direction from senior management. - Systematic Occupational Health and Safety Management: Ransa has developed an overarching OHS mission statement and has started to develop an OHS management system based on Det Norske Veritas (DNV) systems. To date the most critical safety procedures have been developed. Ransa has appointed a Quality and Health and Safety Manager, who sits in the Operation offices in Ransa Ave. Argentina, to oversee all relevant health and safety issues for administrative and operational staff. In 2003, the company had a work force of approximately 1,100 full-time staff and an average of 400 contractors on site. All employees receive full work benefits, including medical insurance, social security, paid vacations, etc. All employed contractors are affiliated to companies which have signed working contracts with Ransa. The company does not hire minors; the minimum age to work for the company is 18. The company provides all the necessary protective equipment to its employees. In 2003, the company reported 13 non life-threatening accidents. Accidents are analyzed and corrective measures are established to prevent reoccurrences. The company has fire suppression systems in place. The company has established a comprehensive training program. As part of this Investment, the company will develop an integrated OHS management system based upon internationally recognized management systems such as OHSAS 18000 or BS 8800. - Emissions to the Environment: Ransa does not have an emissions monitoring system. As part of the integrated management system the company will develop monitoring protocols, commence quantitative data collection activities to characterize air emissions, wastewater discharges, and other emissions to the environment. Also, the company will conduct an emissions gap analysis. Corrective measures will bring all emissions into compliance with IFC guideline requirements. In addition, Ransa will achieve compliance with Peruvian environmental regulations by submitting the Preliminary Environmental Diagnosis (Diagnostico Ambiental Preliminar - DAP) and the Environmental Compliance Program (Programa de Adecuacion al Medio Ambiente - PAMA) to Peruvian Authorities. - Social Development Programs. Ransa takes its social responsibility seriously and makes efforts to coexist with local stakeholders as harmoniously as possible. However, the company does not have a corporate social mission statement and each site manages social issues individually. As part of this Loan Agreement, the company will formalize their social commitment in an environmental and social mission statement and will integrate quality, environment, and social management systems. Ransa San Agustin Ransa San Agustin houses storage (warehouses and open-air), transportation and distribution, file storage, and portacabin construction operations. The warehouse operation consists of four warehouses, two of them dedicated solely to mass consumption products (Charlie and Delta) and two dedicated to varied bulk products (Alfa and Bravo). The open-air storage operation stores a variety of products, including vehicles, agro-chemicals, and mining goods. In addition, containers are stored on-site, although this operation is managed by a sister company, Transmarsa. The transportation and distribution operation provides ground shipping services to the rest of the units. Depending on the need, additional trucks may be contracted. The company fully guarantees the quality of this service, even if carried out by contractors. The file storage operation maintains custody of paper and digital files in two areas within Ransa San Agustin, one area is dedicated to file storage and the other is within the Alfa warehouse. The portacabin construction operation builds field offices out of used metal shipping containers. - Environment, Health and Safety: Ransa San Agustin has approximately 700 full-time staff (about 65% of the company’s work force). This unit follows the company’s corporate quality and health and safety policies and procedures. The file storage operation holds ISO 9001:2000 certifications. As part of the Loan Agreement, Ransa San Agustin will implement the United Nations recommendations on transport of hazardous goods. Ransa will undertake technical actions to bring illumination intensity into compliance with IFC’s OHS guidelines. Staff is provided with all the necessary protective equipment and very few accidents were reported last year. In the transportation operation, trucks carry Geographical Positioning Systems (GPS) tracking devices and electronic control systems. As a result, drivers’ health and safety is closely monitored, and accidents have been kept to a minimum. The four warehouses and the file storage operation have fire hydrants and smoke detection systems placed strategically throughout. Ransa San Agustin invested in a fire fighting water distribution network. This will serve the entire site. As part of this Project, Ransa San Agustin will implement required life and fire safety measures necessary to bring the fueling station, as all other operations in this site, into compliance with IFC’s OHS guidelines. The fueling station will also obtain an Operation Certificate from Peruvian Authorities. Ransa San Agustin uses pesticides. Contractors apply these products. Because most contractors do not use any protective equipment, the company will develop technical specifications for third party contracted services. As part of this Investment Ransa will conduct a hazardous materials management gap analysis to define areas that are not in compliance with the World Bank/IFC hazardous material policies and guidelines (e.g. proper storage of wastes, proper disposal of wastes, good house keeping practices, etc). Ransa San Agustin site conditions need improvement. Access roads within the site are deteriorated; this not only represents a safety hazard but also a nuisance hazard because of the dust generated. As part of this Investment, Ransa San Agustin will develop a comprehensive operation maintenance program to improve site infrastructure. - Air Emissions: This site has two standby generators which run on diesel fuel. These have been used less than 100 hours per year. Electricity is sourced from the grid. All the equipment used in Delta and Charlie warehouses is electric, while the equipment used in Bravo and Alfa run on diesel or gas. All diesel-fuelled equipment will be phased out and replaced with gas or electric. The warehouses do not emit air contaminants except for those emanating from air conditioning equipment. All systems use Freon 22 (R22). Peru, as a signatory to the Montreal Protocol, is obliged to phase out R22 by 2040. In addition, humidity and temperature inside the warehouses is monitored. The warehouses have ventilation systems that create positive pressure inside them preventing any dust from entering. In the transportation operation there are no air emissions generated other than from vehicles. Because the fleet is in good condition, mobile emission sources are limited. The portacabin construction operation does not emit point source emissions. Employees use proper protective equipment. - Liquid Effluent Emissions: Water is sourced from a well located on-site. San Agustin consumes approximately 3,500 m3 per month, mainly used in bathrooms and for cleaning. Well-water is not used for human consumption. Ransa San Agustin needs to distribute more potable water throughout the site in accordance with IFC’s OHS guidelines. Sanitary wastewater is either disposed directly into the sewerage or collected in a tank and then disposed into the sewerage. This tank is maintained regularly. Bathrooms are only located inside warehouses and office buildings. As part of this investment the company will install adequate sanitary facilities at strategic locations around the site to ensure adequate management of human waste at all times. Cleaning wastewater, like sanitary wastewater, is disposed into the sewerage. In the transportation operation, vehicles are washed in an adjacent lot being used by the company. The water flows into a channel that drains into the ocean untreated. Ransa San Agustin will develop a management system for sanitary wastewater and wash water at the San Agustin site. This system should appropriately manage liquid effluent in accordance with Peruvian regulatory limits and associated design and construction standards. - Solid Wastes: All solid wastes generated at Ransa Ave. Argentina are picked up by a licensed contractor and sent to the Ventanilla Landfill. In the warehouses, as in the entire site, there are quite a few garbage metal bins placed throughout. Plastic wrapping film is returned to the film provider, who recycles it into new wrapping material. Cardboard and paper are collected and disposed in the landfill where pickers segregate and recycle them. Spent wooden pallets are disposed of in the landfill once they can’t be repaired any more. In the transportation operation, hazardous materials are stored within a locked area; used oils are stored in a sealed tank. The used oil is taken by an authorized contractor who recycles it. Used tires are sold to recyclers, who grind them and reuse the rubber. In addition, spent batteries are returned to the providers, oil filters and rags are sent to the landfill, metal scrap is sold to a recycler. Soil stains were observed throughout the site. As part of this project, Ransa San Agustin will conduct a hazardous materials management gap analysis to define areas that are not in compliance with the World Bank/IFC hazardous material policies and guidelines (e.g. proper storage of wastes, proper disposal of wastes, good house keeping practices, etc). Ransa Ave. Argentina Ransa Ave. Argentina houses the grain storage, container and export-import warehousing, customs (serves the export-import operation), and a logistics operator. A warehouse operation is being moved in its entirety to Ransa San Agustin. The company’s operation and administration offices are also positioned in Ransa Ave. Argentina. The grain storage operation has a capacity to store 46,000 tons of grain. The container and export-import warehousing operation has a 20,000m2 fenced asphalt working surface. This operation also has a warehouse used to store in-transit products. Because this unit receives export or import products, the company has developed a customs agency on-site. They are in charge of the inspections of the merchandise. The logistics operator integrates all the services the company provides. This operation is completely run from the Corporate offices in the Argentina site. Ransa Ave. Argentina also houses a sister company, Compañía Almacenera S.A. This operation provides product warrants. Its operations consist of offices and a small warehouse. - Environment, Health and Safety: Ransa Ave. Argentina follows the company’s corporate quality and health and safety policies. The container and export-import warehousing operation, customs, and the logistics operator have ISO 9001:2000 certification. The container and export-import warehousing operation also hold the Business Anti-Smuggling Coalition (BASC) certification. Ransa Ave. Argentina employs approximately 385 full-time staff. Employees use proper safety equipment. Overall accident levels in 2003 were low. Ransa Ave. Argentina has a firewater network. In addition, fire extinguishers are placed throughout the site and the export-import warehouse has smoke detectors. Safety signaling throughout the site is also good. Ransa Ave. Argentina has implemented the same pest control program than Ransa San Agustin. As in Ransa San Agustin, most contractors do not use any protective equipment. Technical specifications for third party contracted services will be developed. As part of this Investment, Ransa Ave. Argentina will replace all colored liner cloths with white colored ones to control bird population in the grain storage operation. Their use will be maximized at all times. Also, additional controls will be sought to keep bird populations at a minimum. Ransa Ave. Argentina will carefully control speed limits within their site. - Air Emissions: The site has 3 standby generators. They all run on diesel, less than 100 hours per year. Electricity is sourced from the grid. The container and export-import warehousing, customs, and the logistics operator do not generate any air emissions. As part of this project, Ransa Ave. Argentina will analyze the risk related to dust generation in the silos underground conveyor belt system. If deemed necessary, Ransa Ave. Argentina will identify the best suitable equipment to reduce dust concentrations. In addition, Ransa Ave. Argentina will successfully minimize dust generation from open-air grain storage operations by maximizing the use of lining cloths over grain stockpiles and controlling vehicle speed within the site. The equipment used in the export-import warehouse runs on diesel. These will be replaced by gas fueled machinery. - Liquid Effluent Emissions: This site consumes a total of 6,000 m3 of water per month, of which 4,500 m3 are consumed by Ransa Frio. The remaining 1,500 m3 is used for bathrooms, cleaning, and irrigation. The water is sourced from a well, and stored in two tanks. One tank has a continuous chlorine dosification device, sourcing the food processing plant, bathrooms, and for general site cleaning. The other tank stores water used in the firewater network and for irrigation. Other than for cleaning and for bathrooms, the grain storage, customs, and the logistics operator do not use any water. The container and export-import warehouse operation does use water for cleaning containers. Although this operation has momentarily been stalled, it will soon resume. Wash water will be discharged into sewerage. As part of this Project, Ransa Ave. Argentina will develop a management system for sanitary wastewater and wash water. This system should appropriately manage liquid effluent in accordance with Peruvian regulatory limits and associated design and construction standards. - Solid Wastes: There are garbage bins placed throughout the site. All solid wastes are disposed in the Ventanilla landfill by the same contractor hired in Ransa San Agustin. Packaging materials, such as paper, cardboard, and plastics are segregated at the landfill by recyclers. Grain scarp waste in the grain storage operation is also sent to the landfill. Metal scraps are sold to recyclers. Ransa Frio Ransa Frio consists of two operation units: a cold storage and a food processing plant. The cold storage unit has a storage capacity of 4,500 tons and the food processing plant has a processing capacity of 18,600 m3 of produces. All processing is done manually: products are cut, cleaned, grouped according to weight, and frozen/chilled. This plant handles mainly marine products, including fish and shellfish, although it also has a small vegetable processing unit. This plant has 7 processing rooms and 5 freezing tunnels, ranging between 12 to 35 tons in capacity. Three cooling plants source these operations. In addition, there is a 7-ton ice plant on-site. - Environment, Health and Safety: Ransa Frio follows the Company’s corporate quality and health and safety policies. Both of these operations are ISO 9001:2000 and HACCP certified. With regards to the food processing plant, this unit has installed bio-security controls. In addition, employees use proper clothing equipment, including plastic robes, gloves, and head covers. Employees working in the cold storage units also utilize appropriate equipment. Overall, accidents in both of these operations are low. The cooling plants have emergency equipment in place in case of ammonia leaks, including gas masks and specialized suits, although there are no leakage detection systems in place. As part of this Investment Project, Ransa Frio will improve its fire safety equipment and smoke/leakage detection systems and will implement appropriate safety signaling in accordance with IFC’s OHS guidelines. Chemicals are stored next to food produces. As part of this agreement, Ransa Frio will conduct a hazardous materials management gap analysis to define areas that are not in compliance with the World Bank/IFC hazardous materials guidelines and close these gaps. - Air Emissions: The processing plant utilizes a small diesel boiler. The boiler emissions are vented to the atmosphere through a stack without prior treatment. The smoke emanating was colorless, thus combustion must be efficiently taking place. Vapor remains in a closed circuit system. All cooling systems run on ammonia gas, an ozone-friendly substance, and the equipment used is electric. This site has a standby generator, which operates less than 100 hours per year. - Liquid Effluent Emissions: The food processing plant consumes approximately 1m3 of potable water per ton of processed product. All wash water and process water is collected in a drainage canal system. Each processing room has an independent grease trap. After flowing through the traps, all the water is then channeled into two solid traps. These are given regular maintenance. The effluent is discharged into the municipal sewerage. The water used to cool compressors and to condense ammonia within a closed-circuit system. As part of this Project, Ransa Frio will develop and implement cleaner production techniques to reduce water use and disposal. Ransa Frio will also develop, together with Ransa Ave. Argentina, a management system for wastewater, including process, cleaning, and sanitary wastewaters. - Solid Wastes: Spent compressor oil is stored and reused in situ as a lubricant. Excess used oil will be recycled in accordance with local and World Bank/IFC guidelines. All domestic garbage is disposed in the Ventanilla landfill. The grease and solids traps are regularly give maintenance by a certified contractor. Scrap paper and cardboard are collected and disposed in the landfill. These materials are segregated out on site and recycled.

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 regarding environmental, health and safety guidelines.

There is no additional supporting documentation attached to this ERS.

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: - the status of implementation of any measures contained in the Environmental and Social Action Plan 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.