Environmental & Social Review Summary
Project Number
10149
Company Name
Magana Flowers Kenya Ltd
Date ESRS Disclosed
Feb 5, 2010
Country
Kenya
Region
Africa
Last Updated Date
Jan 2, 2017
Environmental Category
B - Limited
Status
Completed
Previous Events
Approved : Mar 30, 2000
Signed : Jun 16, 2000
Invested : Dec 15, 2000
Sector
Horticultural Products (Flowers)
Industry
Agribusiness and Forestry
Department
Regional Industry - MAS Africa
Project Description
- 4 -
International Finance Corporation
A Member of the World Bank Group
International Finance Corporation
A Member of the World Bank Group
Environmental Review Summary (ERS)
Project Name Kenya - Magana Flowers
Region Sub-Saharan Africa
Sector Agribusiness
Project No. 010149
1. This project is to expand an existing rose flower growing operation located about 20 km from Nairobi. Magana is engaged in rose cultivation for export to the European market. The operation was established in 1994 on a 2 ha farm. It has since undergone three phases of expansion to its current size of 7 ha exporting about 14 million stems from 6 million in 1995. Magana flowers have earned a high quality reputation and all sold through direct marketing on a fixed price basis. The success of the project has encouraged the sponsors to plan further expansion to realize better economies of scale. The company proposes to undertake an expansion of an additional 4.5 ha comprising of 4 ha of roses and 0.5 ha of lilies, which have had successful trials and a positive market response.
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 review of the project consisted of appraising technical and environmental information submitted by the project sponsor. The following potential environmental, health and safety impacts of the project were analyzed:
· Land use;
· Integrated Pest Management (IPM);
· Pesticides use and handling;
· Water supply;
· Waste disposal;
· CFCs;
· Employee safety and training; and
· Employee housing.
The information provided by Magana about how each of these potential impacts will be addressed in the development of the proposed project is summarized in the paragraphs that follow.
3. The project does not entail acquisition of land. The sponsor, who is from the neighboring village, commenced flower growing operations on a larger farm purchased in 1967 from a previous landowner who had held the farm since colonial times. No displacement of people will occur as part of the project. Rather the project and larger farm management provides a significant level of benefits to employees, all of whom are sourced from the surrounding villages.
4. Salaries, wages and benefits provided to employees are well above Kenyan minimum wage requirements. All employees living on site are provided with drinking water, electricity, a small plot for cultivation, and fuelwood for cooking (see paragraph 6 below for fuelwood). Staff have also been encouraged to initiate co-operative activities. This has resulted in establishment of a Co-operative Society on the farm through which staff have invested their own funds. The Society provides loans to members in time of need and funds specific community oriented projects and investments. Staff also have an elected committee which can formally meet with Farm Management to discuss various employment related issues. Farm Managerial staff are also supported professionally and receive regular training and visit the flower industry and markets in Europe.
5. Magana has initiated a Social Development Project on the farm. This project entails construction of a Social Centre on the farm which will include a Community Hall, Canteen, Co-operative Store, Sportscentre and Playing Fields, Clinic, Family Planning Centre and Day Care Centre. This is expected to benefit staff and their families in the adjacent villages.
6. Fuelwood is sourced from the farm’s own tree plantations. A nursery is maintained on the farm and a mixed species of tree are planted (minimum one for every tree cut) around the farm and in concentrated areas. The farm’s reservoirs are also stocked with fish. The farm therefore provides a variety of habitats for birds and other wildlife.
7. All chemicals used by Magana comply with local laws, WHO, European Union and World Bank guidelines. Magana only applies chemicals as a last resort and constantly conduct scouting in all greenhouses to identify pests early so that, if necessary, spot spraying can be done. Pests are only sprayed if they pose significant economic loss. Magana has an ongoing IPM strategy in place. Key elements of this strategy entail: weeding and pruning; monitoring and maintaining humidity; using curtains to minimise pest dispersal during windy periods; exploiting the weakest point in the life cycle of pests (e.g., just after hatching); and physical trapping of soil pests. Biological control trials are also underway, these involve utilizing vegetable extracts (e.g., garlic powder and neem) to treat certain pests. Regular soil testing is also conducted in Kenya and Holland to determine quality and adjust pest control and irrigation regimes.
Magana is also a dues paying member of the Flower Label Program. This is an independent Germany based organization comprised of experts from environmental associations, social groups, and chemical experts. This program carries out annual inspections of the farm to ensure that not only are EU standards met, but that extra steps are taken to reduce chemical use.
8. All employees and their families are provided with access to clinics and hospitals, employees receive regular check-ups. A designated Safety Team exists within the operation. External experts train this team, and it is the team who train staff on safe work procedures and chemical handling and application techniques. Protective clothing and safety equipment is provided to all employees. Spray teams are provided with an impermeable suit, boots, goggles, masks, and gloves. Every member of the spray team is sent to a hospital for regular check-ups. Greenhouses have signs in English and Swahili indicating whether it is safe to enter.
9. Effluent associated with the project is minimal and mainly comprises wash waters from the processing operation and domestic sewage. These will be disposed via a separate soakpit and septic tanks. None are near any watercourses and farm borehole depth of greater than 200 meters and soil conditions mean there is little risk of leaching to the aquifer. Solid waste is primarily biodegradable and will be composted. Plastic chemical containers are punctured and buried in a fenced area on the farm. Paper and plastic from the greenhouse structures is sold for recycling. The company has a central computer controlled drip irrigation and fertilization system, this minimizes fugitive fertilizer emissions.
10. Irrigation and domestic water is supplied to the farm by a combination of borehole, river, and rainwater collection. The operation inherited a water permit when the farm was purchased in 1967. The farm has 8 boreholes in total, 3 of which are dedicated to the flower growing operations. However not all of these are used as there is adequate flow in the river, which combined with rainwater, meets the operations needs. Downstream users of the river have not been negatively affected to date as in dry periods the farm shifts its load to the boreholes. In addition District Water authorities monitor downstream flow rates. The sponsor has committed to the following water management program:
liase with downstream water users on an ongoing basis;
monitor river extraction and irrigation rates to identify any losses;
maintain 120 days water storage capacity (so that during dry periods and extended drought river extractions can be ceased if necessary);
repair any leaks in the existing reservoirs and irrigation system; and
modify extraction from the river as directed by the Water Authorities to ensure water flows to downstream users.
11. Power is supplied by the grid and a diesel storage tank on site is equipped with secondary containment, any new fuel storage tanks will also be provided with secondary containment. It is against company policy to employ children in any part of the project operation. All cold storage equipment will be CFC-free.
13. This ERS will be translated into Swahili and made available at the local council office, neighboring villages (where oral presentations will also be made) and at the farm. Availability of the ERS at these locations will be advertised in a local newspaper.
14. Based on its review of available information regarding potential environmental impacts and proposed mitigation measures, IFC concludes that Magana’s proposed project will meet World Bank environmental, health and safety policies and guidelines and host country requirements. IFC will monitor ongoing compliance with World Bank environmental, health and safety policies and guidelines during the lifetime of the project by evaluating reports submitted annually to IFC by Magana and by conducting periodic supervision.
International Finance Corporation
A Member of the World Bank Group
International Finance Corporation
A Member of the World Bank Group
Environmental Review Summary (ERS)
Project Name Kenya - Magana Flowers
Region Sub-Saharan Africa
Sector Agribusiness
Project No. 010149
1. This project is to expand an existing rose flower growing operation located about 20 km from Nairobi. Magana is engaged in rose cultivation for export to the European market. The operation was established in 1994 on a 2 ha farm. It has since undergone three phases of expansion to its current size of 7 ha exporting about 14 million stems from 6 million in 1995. Magana flowers have earned a high quality reputation and all sold through direct marketing on a fixed price basis. The success of the project has encouraged the sponsors to plan further expansion to realize better economies of scale. The company proposes to undertake an expansion of an additional 4.5 ha comprising of 4 ha of roses and 0.5 ha of lilies, which have had successful trials and a positive market response.
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 review of the project consisted of appraising technical and environmental information submitted by the project sponsor. The following potential environmental, health and safety impacts of the project were analyzed:
· Land use;
· Integrated Pest Management (IPM);
· Pesticides use and handling;
· Water supply;
· Waste disposal;
· CFCs;
· Employee safety and training; and
· Employee housing.
The information provided by Magana about how each of these potential impacts will be addressed in the development of the proposed project is summarized in the paragraphs that follow.
3. The project does not entail acquisition of land. The sponsor, who is from the neighboring village, commenced flower growing operations on a larger farm purchased in 1967 from a previous landowner who had held the farm since colonial times. No displacement of people will occur as part of the project. Rather the project and larger farm management provides a significant level of benefits to employees, all of whom are sourced from the surrounding villages.
4. Salaries, wages and benefits provided to employees are well above Kenyan minimum wage requirements. All employees living on site are provided with drinking water, electricity, a small plot for cultivation, and fuelwood for cooking (see paragraph 6 below for fuelwood). Staff have also been encouraged to initiate co-operative activities. This has resulted in establishment of a Co-operative Society on the farm through which staff have invested their own funds. The Society provides loans to members in time of need and funds specific community oriented projects and investments. Staff also have an elected committee which can formally meet with Farm Management to discuss various employment related issues. Farm Managerial staff are also supported professionally and receive regular training and visit the flower industry and markets in Europe.
5. Magana has initiated a Social Development Project on the farm. This project entails construction of a Social Centre on the farm which will include a Community Hall, Canteen, Co-operative Store, Sportscentre and Playing Fields, Clinic, Family Planning Centre and Day Care Centre. This is expected to benefit staff and their families in the adjacent villages.
6. Fuelwood is sourced from the farm’s own tree plantations. A nursery is maintained on the farm and a mixed species of tree are planted (minimum one for every tree cut) around the farm and in concentrated areas. The farm’s reservoirs are also stocked with fish. The farm therefore provides a variety of habitats for birds and other wildlife.
7. All chemicals used by Magana comply with local laws, WHO, European Union and World Bank guidelines. Magana only applies chemicals as a last resort and constantly conduct scouting in all greenhouses to identify pests early so that, if necessary, spot spraying can be done. Pests are only sprayed if they pose significant economic loss. Magana has an ongoing IPM strategy in place. Key elements of this strategy entail: weeding and pruning; monitoring and maintaining humidity; using curtains to minimise pest dispersal during windy periods; exploiting the weakest point in the life cycle of pests (e.g., just after hatching); and physical trapping of soil pests. Biological control trials are also underway, these involve utilizing vegetable extracts (e.g., garlic powder and neem) to treat certain pests. Regular soil testing is also conducted in Kenya and Holland to determine quality and adjust pest control and irrigation regimes.
Magana is also a dues paying member of the Flower Label Program. This is an independent Germany based organization comprised of experts from environmental associations, social groups, and chemical experts. This program carries out annual inspections of the farm to ensure that not only are EU standards met, but that extra steps are taken to reduce chemical use.
8. All employees and their families are provided with access to clinics and hospitals, employees receive regular check-ups. A designated Safety Team exists within the operation. External experts train this team, and it is the team who train staff on safe work procedures and chemical handling and application techniques. Protective clothing and safety equipment is provided to all employees. Spray teams are provided with an impermeable suit, boots, goggles, masks, and gloves. Every member of the spray team is sent to a hospital for regular check-ups. Greenhouses have signs in English and Swahili indicating whether it is safe to enter.
9. Effluent associated with the project is minimal and mainly comprises wash waters from the processing operation and domestic sewage. These will be disposed via a separate soakpit and septic tanks. None are near any watercourses and farm borehole depth of greater than 200 meters and soil conditions mean there is little risk of leaching to the aquifer. Solid waste is primarily biodegradable and will be composted. Plastic chemical containers are punctured and buried in a fenced area on the farm. Paper and plastic from the greenhouse structures is sold for recycling. The company has a central computer controlled drip irrigation and fertilization system, this minimizes fugitive fertilizer emissions.
10. Irrigation and domestic water is supplied to the farm by a combination of borehole, river, and rainwater collection. The operation inherited a water permit when the farm was purchased in 1967. The farm has 8 boreholes in total, 3 of which are dedicated to the flower growing operations. However not all of these are used as there is adequate flow in the river, which combined with rainwater, meets the operations needs. Downstream users of the river have not been negatively affected to date as in dry periods the farm shifts its load to the boreholes. In addition District Water authorities monitor downstream flow rates. The sponsor has committed to the following water management program:
liase with downstream water users on an ongoing basis;
monitor river extraction and irrigation rates to identify any losses;
maintain 120 days water storage capacity (so that during dry periods and extended drought river extractions can be ceased if necessary);
repair any leaks in the existing reservoirs and irrigation system; and
modify extraction from the river as directed by the Water Authorities to ensure water flows to downstream users.
11. Power is supplied by the grid and a diesel storage tank on site is equipped with secondary containment, any new fuel storage tanks will also be provided with secondary containment. It is against company policy to employ children in any part of the project operation. All cold storage equipment will be CFC-free.
13. This ERS will be translated into Swahili and made available at the local council office, neighboring villages (where oral presentations will also be made) and at the farm. Availability of the ERS at these locations will be advertised in a local newspaper.
14. Based on its review of available information regarding potential environmental impacts and proposed mitigation measures, IFC concludes that Magana’s proposed project will meet World Bank environmental, health and safety policies and guidelines and host country requirements. IFC will monitor ongoing compliance with World Bank environmental, health and safety policies and guidelines during the lifetime of the project by evaluating reports submitted annually to IFC by Magana and by conducting periodic supervision.
Environmental and Social Mitigation Measures
Broad Community Support
Related SII
