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. <<-Environmental, Health and Safety Management; <<-Labor Standards; <<-Water Supply and Treatment; <<-Power Supply and Fuel Storage; <<-Solid Waste Disposal; <<-Liquid Waste Treatment; <<-Health and Safety; <<-HIV/AIDS; and <<-Community Support.

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. - Environmental, Health and Safety Management BBL follow Coca Cola’s integrated Quality System, which combines environmental and health and safety issues, and are currently upgrading plant performance in these areas through implementation of Evolution 3. All procedures that have been documented and those to be documented have been listed in the already documented Process Monitoring Procedure and also referenced in the Quality Manual. Processes have been identified; training has also been conducted on awareness and requirements of the standard. Examples of the documented and implemented processes/procedures are: - Document Management, - Training, - Internal Audit, - Corrective Action, and - Recordkeeping - Labor Standards BBL follows all Tanzanian labor requirements, key elements of it’s policies are as follows:minimum age for employment is 18 years; salaries well above minimum wage; the working week is 45hours (i.e. 8 hours a day from Monday through Friday and 5 hours on Saturdays); contractors and/or subcontractors do not use child or forced labor in any of their operations; priority to hiring from the local community; procuring inputs and services locally where available; and providing training to local citizens to improve their job skills. - Water Supply and Treatment All water for production and plant operations is sourced from 2 boreholes located on the property for which BBL holds permits issued by the Pangani Basin Water Board (PBWB). Total daily extraction from these boreholes is 1000 m³/day. Impacts on other users are minimal as the town of Moshi sources it’s water from springs at a higher altitude than BBL, at the base of Kilimanjaro. BBL record daily water extraction rates and provide this data to the PBWB. BBL will monitor extraction on an ongoing basis and adjust extraction rates as directed by the PBWB. In over 15 years of extracting from the boreholes virtually no draw down or drop in the aquifer/water table has been recorded. After extraction water is treated prior to use in plant Returnable Glass Bottle (RGB – carbonated drinks) line and the water packaging line operations. The RGB line consists of a multi-barrier water treatment unit that includes alkalinity reduction, coagulation, chlorination, sand filtration, activated carbon filtration and a polishing filter. The Water Packaging line consists of a series of filters, Ultra Violet treatment and then a microbiological filter. The efficiency and performance standard of the treatment systems are checked on an hourly, daily and weekly basis (depending on the parameter) by automatic systems and BBL’s in-house laboratory. Filters are backwashed on a daily basis and tanks and piping are sterilized daily. The RGB line follows the Coca Cola Quality Manual and the Water Packaging line follows BBL’s procedures, which ensure compliance with WHO drinking water standards. In addition the Tanzania Bureau of Standards (TBS) and Coca Cola International conduct independent tests on untreated (raw borehole water) and treated water quality. - Power Supply & Fuel StorageThe main electric power source is the national grid, back up supply is from two stand by diesel fired generators. BBL also have an oil fired boiler. Both the boiler and the generators are small capacity and do not require emissions control; since the plant is in an industrial area impacts on residential areas is reduced. Diesel and oil storage tanks are provided with secondary containment structures (bund walls), however pipe runs (pipes entering the containment area) need to be sealed to prevent potential leakage in case the tanks are compromised. BBL also operate a fuel filling station for their vehicles, this filling station has tanks which are set in an underground concrete basin to prevent accidental leaks; this structure also allows for regular inspection and maintenance. - Solid Waste DisposalSolid waste and its storage and disposal methods are summarized below: Glass cullets are collected in gunny bags and stored on a designated place and then sent to glass bottle manufacturers for recycling. Empty concentrate jars are stored in an empty containers’ store and sold to individuals for reuse/recycling. Plastic drums are stored in an empty containers’ store and sold to individuals for reuse/recycling. Paper cartons are stored in an empty containers’ store and sold to individuals for reuse/recycling. Broken plastic crates are collected and stored in a designated place and sold to individuals for reuse/recycling. Wooden Pallets are stored behind the Workshop and given away free to employees/community for use as firewood. It should be noted that BBL will ensure that any chemical containers will be punctured prior to disposal and/or burned to prevent improper reuse. Other general solid waste from domestic sources or offices is disposed of at designated municipal sites by authorized agencies/companies. Liquid Waste Treatment BBL generates three streams of liquid waste: i) process effluent, ii) storm-water and iii) sanitary waste as detailed below: - process effluent from all operations is treated in four stages as follows: the liquid effluent is screened, passed through a sedimentation pond , and oil skimmer and finally is neutralized to control pH. This plant will be upgraded and expanded as part of the project to include biological treatment to ensure compliance with IFC and local standards. - storm water is channeled in separate drains to prevent oil or other contamination prior to surface discharge. It should be noted that the Workshop area of the plant has separate channels for wash water, this channel passé through an oil separator prior to discharge. All waste oil, from treatment plant, separators and from other points is burned in the boiler. - sanitary waste is directed into cesspits from where municipal authorities collect it and treat it at their treatment facility before being disposed. Coca Cola conducted a water and waste minimization workshop in 2004 to help minimize generation of waste at source by ensuring that waste generation is minimized rather than depending on the end of pipe treatment of waste. Spillage of material is minimized by ensuring people are trained and made aware on the importance of proper material storage and handling. BBL have water ratio reduction targets which they have committed to achieve over the next 1-2 years which will reduce water use by approximately 50%. - Health, Safety; Hygiene & Housekeeping BBL have an in house training center, this center is the focal point of achieving health and safety objectives. Training on safe work methods and use of protective equipment delivered by Government agencies, suppliers and in-house management occur at regular intervals and cover a variety of topics ranging from safe operating procedures, storage of materials, emergency response, use of protective equipment, and hygiene. All employees are provided with safety equipment (e.g., gloves, aprons, earplugs/earmuffs, goggles, welding shields, gas and dust masks, protective shoes/boots.) based on their job functions. Training is also provided to truck drivers to ensure they follow safe driving procedures and obey Tanzanian traffic laws.Coca Cola also conduct audits of BBL’s operations every six months, these audits cover all aspects of BBL’s integrated Quality Manual. As part of the expansion and modernization project BBL have also committed to make general improvements to their health and safety performance; this includes upgrading safety of their two ammonia ice plants to meet the standards of the International Institute of Ammonia Refrigeration. It should be noted that no Chlorofluorocarbon (CFCs) - based equipment is used by BBL; R-134A is used in fridges supplied to Distributors. Regular fire drills are conducted involving all staff and fire extinguishers and hose reels are strategically located around the plant. The local fire department periodically conducts inspections and provides training. HIV/AIDSBBL has a program in place to address HIV./AIDS, key elements of this plan include: - Voluntary Counseling and Testing (VCT) for staff and families; - Free antiretroviral treatment for staff and families; - Support for Home based care service for positive living; - Training related to gender and HIV infection; - Training related to HIV and Nutrition; - Education programs on HIV/AIDS in the workplace. IFC, as part of this project, will evaluate, together with BBL, ways to improve BBL’s program and explore possibilities of extending training to/through its distributors. Community Support BBL has formal links to the local community, community groups/NGOs and other stakeholders. Regular consultative meetings are held with the local authorities to inform them of planned activities. BBL supports cleanup campaigns in Moshi as part of an effort to keep the city clean; in support of this, and linked also to their advertising campaign, they sponsor and maintain several roundabouts in the city. Meetings are also held with the Forestry Department to co-ordinate activities for BBL’s tree planting campaign in the Kilimanjaro region. The campaign is aimed at backing up the government reforestation efforts to prevent habitat, watershed degradation in the region. Awards are given to winners (those who plant many trees in a given year). The competition has attracted individuals, villages/community, religious groups, institutions, schools, and community based organizations. Approximately 21million trees have so far been planted under the campaign (about 41% of the total number of trees planted in the region). IFC will also explore potential to support/catalyze additional community development projects in the project area. This ERS will be translated into Kiswahili and made available in English and Kiswahili, at the factory gate and at the Moshi Municipal Offices. Availability of the document at these locations will be advertised in a local newspaper.

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: - the status of implementation of any measures contained in the Corrective Action Plan and/or the ERS - 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.