Environmental & Social Review Summary
Project Number
10185
Company Name
MEREC INDUSTRIES SA
Date ESRS Disclosed
Feb 5, 2010
Country
Mozambique
Region
Africa
Last Updated Date
Jan 2, 2017
Environmental Category
B - Limited
Status
Completed
Previous Events
Approved : Jun 9, 2000
Signed : Nov 15, 2000
Invested : Oct 16, 2008
Sector
Grain Processing (Milling, Starch, Flour, Malt)
Industry
Agribusiness and Forestry
Department
Gbl Ind, Manufact, Agribus & Services
Project Description
ENVIRONMENTAL REVIEW SUMMARY
Project Name Mozambique - AEF Merec Industries Lda.
Region Sub-Saharan Africa
Sector Food and agribusiness
Project No. 010185
1. This project involves the establishment of a new plant in Machava, the suburbs of the capital city of Maputo, for the processing of imported wheat, with the capacity of 140 tonnes per day or 30,000 tonnes per annum; and construction of silos with a storage capacity of 15,000 tonnes. The equipment supplier will be Buhler, from whom the Merec sponsors have imported a complete maize mill plant that is already under operation at the same complex at Machava. The sponsors have selected Machava for their industrial activities because of its good infrastructure: a railway line 4km from the Maputo port, electrical power, easy access to land and labor, and proximity to the market. The intention is to start processing in January 2001. The main products will be wheaten flour for bread manufacturing; and bran and wheat germ, which are used as ingredients in animal feed.
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. Key environmental health and safety issues analyzed included:
• compliance with relevant national and World Bank Group environmental and
health and safety requirements;
• air and dust emissions;
• wastewater treatment and disposal;
• solid waste management;
• compliance with Mozambican labor law and IFC policy on harmful child labor;
• use of CFC cold storage equipment, if applicable;
• employee exposure to noise and dust, and provision of personal protective equipment and training;
• packhouse and storage facility hygiene;
• prevention of and response to fires and flash explosions; and
• mill hygiene and good housekeeping measures.
3. IFC has reviewed environmental information supplied by Merec, including its environmental management plan, employees safety program, and details of its resettlement effort. IFC also reviewed relevant sections of the appraisal report. Key elements of the information reviewed are presented below.
4. Compliance with relevant national and World Bank Group environmental and health and safety requirements: The sponsors have reviewed the relevant IFC/World Bank Group guidelines and agreed to comply with them, as well as with national and local regulations of the Mozambique government. The proposed project site is well served by all utilities, including power from the national grid and water from the municipality. The power supply, which has been erratic, will be bolstered by supply from Motraco. Motraco supplies the Mozal aluminum smelter, which demands a reliable, 24-hour energy source. The Merec sponsors have considered installing their own emergency power supply but found that it would only be economical in the events of power cuts lasting two to three days, which do not occur. Merec instead intends to commission a 100kVA diesel generator to ensure reliable supply for lights and the stackers.
5. Air and dust emissions: The only emissions associated with the milling operations are dust emissions, and Merec controls these in several ways. Merec pays a premium to purchase higher quality wheat and maize, as the dust content of these supplies is lower. All of the milling equipment is fitted with hoods and extraction fans, which collect the dust and convey it back to the milling machines. Wheat supplies for the new wheat mill will be put through dust separators to remove as much dust as possible before being stored in silos, which will reduce the dust content and the likelihood of flash explosions. The appraisal report noted that there is very little ambient dust present in the existing maize mill. Steam for the pre-processing phase of the milling operations is provided by a small hot water heater on the premises.
6. Wastewater treatment and disposal: The maize mill utilizes approximately 2-3,000 liters of water per day, in the form of steam in the pre-processing phase. This is currently supplied by municipal sources, supplemented by a borehole on site and stored in a 5,000-liter tank. The borehole water has been tested and is of potable quality. The new wheat mill will require approximately 10,000 per day, which will be drawn from the same sources, to be stored in a new 60,000-liter tank installed on the roof. As the only water used in processing is in the form of steam, the mill will generate no process effluent. Domestic waste water will be discharged to a septic tank and from there to the municipal sewerage system.
7. Solid waste management: Process wastes from the maize mill is presently sold as animal feed to buyers in South Africa. Merec has indicated that wastes from the new wheat mill and oil extraction plant also can be sold as animal feed. Office and packaging wastes will be collected on site and disposed in a municipal landfill.
8. Compliance with Mozambican labor law and IFC policy on harmful child labor: Most of the labor for the mill will be sourced from nearby suburbs, so that there will be no need to house staff on site. Merec''s existing plant complies fully with all Government labor laws and regulations, and these requirements will be adhered to at the new mill as well. Merec''s management has reviewed IFC''s policy and guidance on harmful child labor and agreed to abide by their provisions.
9. Use of CFC cold storage equipment, if applicable: At the present time, Merec anticipates installing air conditioning equipment only in the in-house testing laboratory. The sponsors have agreed to install equipment that utilizes non-CFC refrigerants, in accordance with the provisions of the 1987 Montreal Protocol on Substances that Deplete the Ozone Layer.
10. Employee exposure to noise and dust, and provision of personal protective equipment and training: The new building will be constructed with regard for the sub-tropical weather in Machava. As noted, the milling equipment will be fitted with dust extraction hoods and dust emissions in the mill are expected to be minimal. Packaging in the new wheat plant will be fully automated, so that no employees will be exposed to dust emissions in this phase. Merec will nonetheless supply dust masks to employees working in areas of the mill or maize packhouse where dust emissions are evident. The wheat mill will be Merec’s second mill from Buhler; the existing maize mill has been operating successfully for 18 months. The Buhler equipment is ISO 9000 certified and is installed with all requisite international quality and safety features. Merec currently employs approximately 45 people and this number is not expected to change as a result of the expansion. All employees are provided with overalls and boots, as well as items such as dust masks, hearing protection, and hair restraints for those employees working in the packaging sections. Employees undergo annual health examinations, and employees who become ill are taken to a local clinic for treatment. The appraisal report noted that Merec devotes considerable attention to its on-the-job training program. The mandatory training course for all employees includes a detailed section of safety training. Safety equipment and signage in the new wheat mill will be installed to the same standards obtaining in the existing plant, which has had zero disabling injuries.
11. Packhouse and storage facility hygiene: The production manager for both the maize and wheat mills has established a quality control system including on-site laboratory facilities with the intent of obtaining ISO 9000 certification for the plant. The laboratory serves to analyze and test both incoming grain and flour produced. Merec employs strict cleaning and hygiene practices to control rodents, although it is at times necessary to place rat poison in certain parts of the plant. When necessary, the substances used are ones that are not toxic to humans and are used in full accordance with the manufacturer''s recommendations.
12. Prevention of and response to fires and flash explosions: As noted, both the unprocessed wheat and finished products will be filtered before storage in silos, to prevent dust explosions. The facility is equipped with fire extinguishers throughout. Merec provides fire prevention and response training to all employees, in conjunction with a local fire-fighting supply company. The entire facility is posted with ''no smoking'' signs, and smoking anywhere in the plant is strictly forbidden.
13. Mill hygiene and good housekeeping measures: The appraisal report noted that housekeeping at the existing operation is very good. Ablution blocks are located away from the processing areas and are supplied with hot water, anti-bacterial soaps and towels. Employees are given training in personal and workplace hygiene. The plant is cleaned and swept out daily.
14. Based on its review of the environmental information provided by Merec, IFC concludes that the proposed project is being designed and will be operated to meet pertinent Government of Mozambique requirements and all relevant World Bank policies and environmental, health and safety guidelines.
26. 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) to be submitted annually to IFC by the sponsor, and by conducting periodic site visits during project supervision.
Environmental and Social Mitigation Measures
Broad Community Support
Related SII
