ENVIRONMENTAL REVIEW SUMMARY


Project Name Nigeria – AEF Oha Motors Ltd.

Region Sub-Saharan Africa

Sector Motor Vehicles and Components

Project No. 010090


1. This project, which is to be financed by the Africa Enterprise Fund (AEF), consists in the acquisition of six (6) new 55-seater buses to expand the Company''s inter-state transportation business by starting Lagos-Abuja route. Oha Motors currently has a fleet of 23 buses in operation and has been in road transport business since 1994. Oha Motors terminals are centrally located in Lagos and Abuja. The buses, 55-seater, VOLVO Executive Bus, 13.2 MTS type will be air-conditioned, fitted with two televisions sets for the entertainment of the passengers (this is common in Nigeria now) and a toilet at the rear. The buses will be supplied by Volvo Do Brazil Veiculos LTDA, through their local sole distributor, Concieto Motors Nigeria
.

2. This is a Category B project according to IFC''s environmental review procedure because specific impacts may result which can be avoided or mitigated by adhering to generally recognized performance standards, guidelines, or design criteria. The key environmental, health and safety issues that were analyzed are as follows:

· Site location and potential pre-existing contamination;
· Water supply and sustainability;
· CFC free equipment;
· Fuel and other chemicals storage (including secondary containment and leak detection)
· Waste management including sewage, liquid, solid and hazardous waste;
· Control of vehicles air emissions and maintenance.
· General occupational health and safety;
· Equipment safeguarding;
· Fire prevention and emergency response preparedness; and
· Employee exposure to noise and chemical substances.

3. IFC has reviewed environmental information supplied by the Oha Motors sponsor regarding potential environmental impacts and proposed mitigation measures. Key elements of this information are described below.

4. Prior use of the site: The site has been used by Oha Motors as passengers terminal since April 1999 and was used for the as a show room for cars prior to that.

Source of water and power supply, including fuel storage if applicable: Water and power will be supplied by utilities and there is a generator on site a well as 24 000l of fuel. The fuel is currently stored in an above ground tank on the floor and at IFC request, the sponsor has agreed to place this tank as well as those located in the other Oha Motors locations within retention bunds. The construction of these retention walls will be written into the Conditions of Disbursement.

Disposal of solid wastes: office type solid waste is regularly collected by a private company. Hazardous wastes such as used filters are bought by recyclers who also collect scrap metals. As no specific facilities exist in Nigeria for the adequate handling and recycling of such waste, the sponsor has committed himself to the use of such facilities should they become available.

Liquid waste comprises used oils and lubricants, which are collected separately, and handled over to the informal sector which uses it as fuel. Sewage is disposed off into septic tank, which are regularly services by a local sewage disposal company. Run off water resulting from the partial cleaning of the bus on site, about 500l/day will be discharged into the municipal network for final discharge onto the Lagos lagoon. Quality of the effluent will be monitored and measures implemented to limit the amount of pollution produced. Corrective action such as in situ pretreatment will be implemented should the monitoring indicate that IFC guidelines cannot be meet. Submission to IFC of plans for the monitoring of effluent quality and implementation of in situ treatment in case of non-compliance will be made a condition of disbursement.
The buses are regularly washed in station located along the routes and most do not have any waste water treatment facilities. The sponsor has committed himself to preferentially used washing stations with adequate facilities whenever they are available. In addition the sponsor has hired an independent environmental consulting firm to conduct monthly sampling and analyses of effluent generated. Sampling will commence in April 2000.

7. Control of vehicles air emissions and maintenance. As part of the company policy, all the vehicles are taken to the workshop every Saturday for inspection and possible servicing in addition to the daily routine checks. Control of the exhaust emission will be through adhering to the maintenance schedule. Maintenance activities will be planned in advance and integrated into the running schedule.

8. General occupational health and safety: The guidelines for health and safety have been drafted by a consulting firm and will be implemented prior to disbursment.

Employee health and safety training: Drivers are trained regularly on health and safety as well as emergency response preparedness and maintenance as well as regularly tested for proper vision. Training is provided by the local fire brigade and by the Brazilian suppliers of the buses.

Fire protection, life safety and emergency response: Fire extinguishers are installed in the offices and the premises are regularly inspected by the Federal Fire Service. On board all vehicles, the emergency exits are clearly labeled and fire extinguishers are fitted in. In addition, managers, drivers and bus attendants are drilled on fire prevention by the fire department. Regular announcement is made to passengers prior to each bus departure, which also include restrictions on the type of goods allowed for transportation.

Release of the ERS: Public disclosure of the ERS will take place in English in the Vanguard daily newspaper as well as through the publication of leaflets and display posters which will be posted an the entrance of the garage. The full text of the ERS will be made available from the main office.


12 Based on its review of the environmental information provided by Oha Motors, IFC concludes this project will be operated in a manner that meets all pertinent Government of Nigeria requirements and all relevant World Bank Group policies and environmental, health and safety guidelines.

13 IFC will monitor ongoing compliance with World Bank Group policies and guidelines during the life of the project by reviewing and evaluating the Environmental and Social Monitoring Reports (AMRs) be submitted annually to IFC by the sponsor, and by conducting periodic site visits during project supervision.