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 - host country laws and regulations and the World Bank/IFC environment and social policies and environmental, health and safety guidelines. The information about how these potential impacts will be addressed by the company is summarized in the paragraphs that follow. Further information is provided in the attached documentation.
- Company mission and vision in the sector:
Agrokasa has an integrated mission and vision statement that is part of its holding company, Corporacion Drokasa, corporate working modus operandi. The company’s mission statement avows responsibility for the health and safety of their employees, conservation of the natural environment, and establishes proactive relationships with the communities surrounding their operations. The company’s goal is to be national and international leaders in the management of quality, environment, social, and occupational health and safety issues, and as such, contribute positively to the Peruvian society as a whole. As part of this Project, Agrokasa will implement their corporate statement of vision and mission to Las Mercedes and PESU operations in accordance to the attached Environmental and Social Action Plan (ESAP).
- Systematic management of quality, environmental, occupational health and safety, and social affairs:
Agrokasa has implemented a systematic management approach for its operations in Ica, in the south of Lima, which addresses quality, environment, health and safety, and social affairs. In this effort, the company has developed a comprehensive monitoring program and a consolidated operational manual. As part of this Project, Agrokasa will apply this same approach into Las Mercedes and PESU operations in accordance to the attached ESAP. This system will be designed, as have been the rest of Corporacion Drokasa’s management systems, to ensure compliance with Peruvian regulations and World Bank/IFC policies and guideline requirements. Agrokasa will appoint qualified professionals to the position of environmental and social affairs, quality, and occupational health and safety coordinator to oversee Las Mercedes and PESU operations. These professionals will report to Corporacion Drokasa’s environmental and social affairs, quality, and occupational health and safety manager with regards to the Integrated Management system issues.
- Operational Best Practices:
Agrokasa strives to follow international best practices to achieve operational excellence. Agrokasa will construct and operate all future operations at Las Mercedes and PESU in accordance with World Bank/IFC’s environmental, social, and occupational health and safety policies and guidelines. The company will hold up-to-date environmental licenses for all of its operations, including Environmental Impact Assessments (EIAs) or similar studies required for both Las Mercedes and PESU. These will be presented to the Peruvian authorities in accordance to the attached ESAP. The company will follow strict quality control procedures, especially within the packhouses. PESU will have its own laboratory which will conduct daily quality controls on their processes and products. The company will implement Good Manufacturing Practices (GMPs) in accordance to the attached ESAP, including proper sanitary standard operating procedures (SSOPs) and a Hazard Analysis and Critical Control Point (HACCP) Plan. Las Mercedes and PESU operations will comply with Codex Alimentaris food safety requirements. The company will obtain EurepGap certification, a farm certification standard which aims to ensure integrity, transparency and harmonization of global agricultural standards. This includes the requirements for safe food that is produced respecting worker health, safety and environmental welfare. The company will also implement Integrated Pest Management practices in Las Mercedes. The company will continue its Corporate practice to include technical specifications in contracts with third party services to define requirements for World Bank/IFC environmental, social, and occupational health and safety policies and guidelines compliance. Corporacion Drokasa is in the initial stages in developing a Corporate Governance policy, which will include a vertically integrated organizational structure. Such a policy will promote the effective functioning of the Board, its committees, and the company.
- Environmental Impacts:
Impacts on environmentally-sensitive areas: Within Las Mercedes boundaries, there are 790 hectares of land planted with asparagus, 129 hectares of roads, 1,160 hectares of unusable land, and 533 hectares of usable land. This land will, in the near future, be planted with an additional 164 hectares of asparagus and 369 hectares with avocado. The Las Mercedes site comprises an area reclaimed from desert and did not contain areas of ecological significance. As part of this project the company will evaluate if there are archaeological or cultural resources within their estate and take appropriate measures if necessary, including chance find procedures to protect cultural property that could be discovered during construction activities in Las Mercedes. The existing packhouse, with an area of 26,000m2, is being demolished. This land had a previous agricultural use; it did not contain areas of ecological significance. A new asparagus and avocado packhouse, called PESU, will be built on the same site. This packhouse will be state-of-the-art.
- Sustainability of irrigation water supply:
Las Mercedes sources its water from the Pativilca River. The river is dammed at its origin by a hydroelectric plant, ‘Cahuas”, forming the Viconga lagoon. The river flows abundantly between December and May and significantly reduces its flow between June and October. During these dry months the “Cahuas” dam releases water into the river. Las Mercedes will consume an average of 12,000 m3 of water per hectare per year for the asparagus plantations (which will amount to 965 hectares) and an average of 14,000 m3 of water per hectare per year for the avocado plantations (which will amount to 370 hectares). The company has estimated these figures based on their operation in Ica. This will result in a yearly consumption of 16.76 million m3 of water for the 1,335 hectares according to plan. The company intends to plant an additional 70 hectares of avocado, which will signify an additional consumption of 980,000 m3 per year. In total, Las Mercedes will consume 17.78 million m3 of water per year. The company is working under the assumption they will consume up to 20 million m3of water per year, this last value takes into consideration losses (e.g. from warm years, high evapotranspiration rates). Las Mercedes has been assigned by GoP 31 million m3 of water per year, so the company will fall well within the allotted amount. Pativilca River average volume in the last 40 years amounts to 532 million m3. Las Mercedes will be consuming on average approximately 3.8% of this volume. In the last 40 years, the driest month on record has been August, 2005 (21million m3/month). Analyzing this specific month, Las Mercedes was assigned 1.28 million m3 of water. Looking forward, when Las Mercedes has 1,400 hectares of operating fields, this would demand 994,700 m3 of water. In consequence, even in the worst recorded month in the last 40 years, the company will have enough water to operate and not surpass the allotted amount. To demonstrate compliance with the assigned volumes by GoP, as part of this project and in accordance to the attached ESAP, the company will install a measurement system which will collect data 24 hours a day of the amount of water flowing into the farm. The company is constantly implementing newer technology in their fields, and keeping up with world standards. Avocados require approximately 50% of their daily water intake in a 3 hour time period, so reservoirs will be built in order to meet the plantations demand (total capacity of approximately 16,000 m3). These reservoirs will be filled 24 hours a day. The company has hired international experts to design their entire irrigation system.
- Air Emissions:
Air emission in Las Mercedes and PESU will be minimal as there are no significant air emission sources. The roads within Las Mercedes are in good conditions; there is no need for dust reduction control systems. The company will not burn any material generated onsite, including vegetable scraps, plastic containers, paper sacs, etc. PESU will have a back-up diesel generator, used less than 100 hours per year. Both asparagus and avocado packhouses will utilize approved HCFC (R-22) in their air conditioning systems. The asparagus chilling systems in Las Mercedes and PESU will also run on Freon R-22.
- Liquid Effluent Emissions:
Las Mercedes will install latrines throughout the fields in accordance with IFC’s Occupational Health and Safety (OHS) guidelines. The company will also install septic tanks with percolating systems for the office and sleeping quarters in Las Mercedes. All equipment that comes into contact with agrochemicals, including gloves, clothing, and protective equipment will be properly washed before being used again. Plastic containers containing agrochemicals will be tripled washed before being discarded. Wash water will be disposed of into a forested plot of land (with eucalyptus) or any other safe site within Las Mercedes. Polypropylene sacs will not be washed. With regards to liquid effluents in PESU, the company will design a wastewater treatment plant (WWTP) to treat sanitary effluents of up to 1,000 employees working at the asparagus and avocado packhouses. This WWTP will effectively treat sanitary liquid effluent in accordance with World Bank/IFC’s regulatory limits and associated design and construction standards. The installation schedule of the WWTP will be in accordance with the attached ESAP. All the process wash water used in the asparagus packhouse will be collected in a closed canal system that will be spread throughout the unit. The water used to wash the asparagus will be chlorinated. The disposed water will be discharged into a canal which runs adjacent to the site.. This discharged will not require any treatment as it will meet World Bank/IFC’s regulatory limits. The avocado packhouse does not use any water, except for that of personnel use and for cleaning.
- Solid Wastes:
Used oil, batteries, and filters will be collected and sold for recycling or properly disposed off. Cardboard will also sold for recycling. Non-hazardous wastes (e.g. paper, plastics, glass, and building refuse) will be segregated and stored onsite. These wastes will then be properly disposed off in a licensed landfill, and when feasible, will be recycled by approved companies. Domestic waste, including kitchen and sanitary wastes, will be disposed founding a landfill onsite. This landfill will be managed according to best practice standards. No wastes will be burned. As part of this project, the company will, on a best effort basis, brokerage contracts and/or agreements with agrochemical providers to take back all product containers (e.g. plastic containers, plastic and paper sacs). Also, the company will find a suitable company to recycle between 2000 to 3000 km of old drip piping. The company will undertake required actions to maintain good house keeping practices. All vegetable cutting will be left on the fields to be then reincorporated to the soil.
- Agrochemical use:
The personnel in charge of agrochemical application (either manually or by tractor) will utilize all the necessary protective equipment. Supervisors will constantly monitor their performance. These personnel will receive all the necessary training, not only from the company, but from the agrochemical suppliers. All equipment will be washed before being reused. Wash water will be disposed off in a forested plot of land (together with the containers rinsing wastewater) or in any other safe site within Las Mercedes. All the agrochemicals used by the company will be approved and registered by the Servicio Nacional de Sanidad Agropecuaria (SENASA). Also, all the pesticides used will be EPA registered. As part of this Project, the company will develop and implement an integrated pest management system. With this tool, the company will minimize the use of agrochemicals and maximize the use of biological pesticides as well as implement more efficient application practices of agrochemicals. All used agrochemicals will be properly stored according to World Bank/IFC’s policies and guidelines.
- Employment Impacts:
Agroguayabito (former owner of Las Mercedes) employed approximately 160 full-time agricultural workers and 776 part-time (seasonal) agricultural workers when it was acquired by Agrokasa (November 2005). Over the next year Agrokasa plans to increase the size of the agricultural labor force in Las Mercedes substantially to 1,200 workers in order to reach its production targets. The number of agricultural workers on average is expected to rise from 1,200 in 2006 to 2,200 in 2008. Agrokasa plans to convert seasonal workers, who in the past have worked exclusively during the harvest periods, into workers who carry out maintenance and harvest activities most of the year. Agrokasa expects that the size of Las Mercedes workforce will stabilize by 2009. That year Las Mercedes is expected to employ approximately 2,500 agricultural workers. Agricultural workers will be recruited primarily from nearby towns and communities (Barranca, Roncador, Las Huertas, Araya Grande, Huacho, Supe, Vegueta, Pativilca, etc.) and the Company is committed to maximize local employment. These numbers include PESU operations.
Agrokasa plans to employ about 500 workers in PESU by the end of 2006. This figure is expected to rise to about 1,000 workers by 2,010. These workers will be recruited primarily from nearby towns.
- Employee Health and Safety:
Agrokasa has a written policy on training, security, and workplace cleanliness, which will also cover Las Mercedes and PESU. The company will implement the same quality control procedures that it has put in place in its other agricultural operations and packhouses. The Centro de Prevención de Riesgo para el Trabajo (CEPRIT) will monitor Las Mercedes and PESU working conditions, including noise and illumination intensity. Staff will be trained in work-related injury prevention, first aid, biosafety, safe use of agrochemicals, and food management. Depending on their work tasks, personnel will be provided with all necessary protective equipment. In addition, all personnel will be provided with state-of-the-art working utensils and equipment (scissors, trimming scissors, farming accessories, etc). Las Mercedes and PESU Health and Safety team will monitor the correct use of protective equipment, as it does in other Company operations. As part of this project the company will develop a plan to prevent road accidents and traffic congestion near the entrance to PESU.
- Development Plan for “Los Olmitos”:
A total of 105 workers currently reside in the work camp “Los Olmitos”, which is located within Las Mercedes. Most of these workers have lived in Los Olmitos with their families for several years. As of February 2006, 340 persons lived in Los Olmitos. The company will prepare a development plan for the families of Los Olmitos in accordance to the attached ESAP to improve their quality of life, including the provision of filtered raw-water.
- Community Relations:
Agrokasa is committed to support the communities surrounding its operations and enjoys good relations with them. The company supports the program Mathematics for Everyone, which benefits 160,000 students and 355 schools throughout Peru. The company is committed to maximize local employment as it expands its labor force in Las Mercedes and the Supe Plant. Employment opportunities generated by these operations will bring important economic benefits to the communities near Las Mercedes (Roncador, Las Huertas, Araya Grande and Pampa San Alejo and also Huacho, Vegueta, and Pativilca), as well as to the towns of Barranca and Supe. Agrokasa is currently supporting educational activities in Los Olmitos and Pampa San Alejo and is working together with the community to improve the quality of the water being utilized by the community Pampa San Alejo and prevent the contamination of the water supply with fertilizers. The company is also working with the community Pampa San Alejo to improve their capacity to generate clean hydraulic energy on a small scale.
