26174 - Bakhresa

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Environmental & Social Review Summary

Project Number

26174

Company Name

BAKHRESA GRAIN MILLING MOZAMBIQUE LIMITADA

Date ESRS Disclosed

Oct 19, 2007

Country

Mozambique

Region

Africa

Last Updated Date

May 10, 2025

Environmental Category

B - Limited

Status

Pending Signing

Previous Events

Approved : Jun 26, 2008

Sector

Grains and Beans

Industry

Agribusiness and Forestry

Department

Gbl Ind, Manufact, Agribus & Services

Project Description

The project includes construction and operation of a wheat grain bulk handling and short-term storage facility in the Port of Nacala, Mozambique. The Bakhresa grain terminal will be the first modern bulk handling facility in the Port of Nacala with a grain storage capacity of 40,000 tons. Major terminal elements will include metallic silos, intake, pre-cleaner, transfer, packing, bulk loading, and allied accessories and equipment. Less than 10% of the grain will be moved out of the terminal on trucks while the remainder will be transported by rail to Malawi. This storage facility will be an integral part of Bakhresa Grain Milling (Malawi) Limited, which in December 2003 assumed ownership and operation of the former Grain & Milling Company Limited (GRAMIL) from the government of Malawi in a privatization process. The two existing flour mills are situated in Limbe, situated approximately 5 Km from Blantyre, Malawi’s commercial city. Bakhresa Grain Milling Limited invested significantly in working capital, rehabilitation and expansion during the first year of operation. The principal investment was installation of an ultra modern 250 tons/day wheat milling plant. Supplemental IFC investment in the company could include financing for Limbe, Malawi and Dar Es Salaam, Tanzania milling operations.

Overview of IFC's Scope of Review

As part of IFC’s appraisal a number of documents were collected and reviewed including: Bakhresa’s application for an environmental permit prepared for the Nacala Branch of the Ministério Para A Coordenação Da Acção Ambiental (MICOA); a response letter from Nacala MICOA confirming that the Greenfield grain terminal project was categorized as a C (no full EIA required); Porto de Nacala: Environment Health and Safety Policy Statement; Nacala Port Grain Terminal Environmental License; BGM Safety Manual; General workplace practices and procedures; and the Bakhresa Conditions of Service.doc (fully detailed Labor and Human Resources Policy).

IFC’s visits included a meeting with Bakhresa’s environmental consultant in Maputo, Mozambique, to discuss the environmental assessment prepared and submitted to MICOA to obtain a C categorization and the environmental permits; and the physical characteristics and environs of the proposed grain terminal in Nacala. In addition, IFC the visited flour milling operation in Limbe, Malawi that was formerly owned by the government of Malawi. Bakhresa has upgraded local installations to include a 500 tons/day wheat cleaning operation, and installation of an ultra modern 250 tons/day mill situated in parallel to the existing 120 tons/day mill, which was constructed in 1975 and currently in standby mode.

E & S Project Categorization and Applicable Standard

While all Performance Standards are applicable to this investment, IFC’s environmental and social due diligence indicates that the investment will have impacts that must be managed in a manner consistent with the following Performance Standards:

PS 1: Social and Environmental Assessment and Management Systems;
PS 2: Labor and Working Conditions;
PS 3: Pollution Prevention and Abatement; and
PS 4: Community Health, Safety and Security.

A Greenfield grain terminal will be constructed in Nacala Port in Northern Mozambique. The Mozambican Environmental Agency in Nacala, upon submission of a project definition and associated characteristics from Bakhresa’s environmental consultant, categorized the project as a C meaning that it is low risk and that an environmental impact assessment is not required. Nacala MICOA’s approved the project and granted an environmental license; the license includes permit conditions including full compliance with the Port of Nacala integrated environmental management system being implemented at present. Nacala expects ISO 14001 (environmental affairs management) and OHSAS 18001 (occupational health and safety) certification in early 2008. The grain terminal in Nacala will receive and store imported grain, bag it and then ship it to Malawi for processing. Packaged grain will be shipped to Malawi by rail that is operated by third parties with no relationship to Bakhresa. The original mill constructed in 1975 in Limbe, Malawi was an existing facility recently purchased from the government; it is not operating at present. The second mill, which is currently operating, is an ultra modern 250 tons/day recently constructed and commissioned by Bakhresa; its design incorporates collection and reuse of dust and highly efficient energy use. Flour milling is a low impact operation; and, collected product wastes are typically recycled into products including different grades of wheat flour and bran.

Environmental and Social Mitigation Measures

PS1: Social and Environmental Assessment and Management Systems –

Bakhresa engaged a Maputo-based environmental consulting firm to prepared a mandatory submittal to MICOA, Mozambique’s environmental regulatory agency, for the Greenfield grain terminal in Nacala. The agency declared the project a Category C (no full EIA is required). An environmental permit was granted for the facility with specific permit conditions including compliance with the Environmental Management System implemented by the Port of Nacala. The client has a Safety Management Program consisting of a manual that is applied across the corporation; it incorporates environmental affairs and elements to ensure adequate management of both environmental and occupational health and safety. Bakhresa’s flour milling operations in Tanzania have obtained ISO 9001 certification for existing quality management systems. The milling operation in Limbe, Malawi is implementing HACCP food safety program and will seek certification in early 2008. In addition the client will adopt and adhere to the requirements of the integrated management system implemented by Nacala Port in accordance with the attached Environmental Management Plan (EAP).

- PS2: Labor and Working Conditions –

The client’s Human Resources Policy is captured in Bakhresa Milling’s detailed Conditions of Service document that provides full transparency for employment conditions, hiring and dismissals, grievance mechanisms and associated matters. The purpose of the Conditions of Service is to ensure consistency and fairness in handling personnel and administrative matters, and to provide a ready reference for management and staff to ensure positive working relationships for the company and staff. Bakhresa’s former regional labor and vocational training officer currently manages administrative and human resources affairs. The company has a comprehensive Safety Management Program and a detailed manual that is applied across the corporation. Bakhresa’s Safety Manual is a customized program for grain management and milling and attendant occupational health and safety risks. It addresses safety committees and meetings, employee training, permit requirements and procedures (e.g. hot work permits) and accident investigation and reporting. The program is adequately responsive to the requirements of this performance standard and the General EHS Guidelines (30 April 2007).

- PS 3: Pollution Prevention and Abatement –

Bakhresa’s operations at Nacala and Limbe, Malawi, are low impact food manufacturing facilities. Wastes and operations dust are collected in flour milling operations and incorporated into products. Greenhouse gas emissions from consumption of electric power and other operations do not exceed the threshold stipulated in this performance standard; however, both the Mozambican and Malawi operations are modern installations and highly energy efficient. Bakhresa’s Safety Manual and employee training address the potential for catastrophic dust explosions and emergency response to prevent adverse impacts within the Port. Sanitary wastewater at the Nacala Port and sanitary effluent from the Malawi milling operations are discharged to municipal systems operated by the concessionaire and municipal government. Bakhresa will develop an integrated pest management program for its operations at Nacala to comply with Nacala permit conditions, be consistent with food safety procedures, and the requirements of this performance standard in accordance with the attached EAP.

PS 4: Community Health, Safety and Security –

The Nacala Port Greenfield grain terminal facility is required to adopt and to comply with the integrated management system developed by the Port. Bakhresa’s operations in Nacala Port will also be governed by the BGM Safety Manual that incorporates safety and loss prevention policies and procedures including the potential for dust explosions and associated precautions, and emergency response procedures. Rail transport of raw materials from Mozambique to Limbe, Malawi, will reduce truck traffic volume to flour milling operations and associated community health and safety risks.

Stakeholder Engagement

Bakhresa will adopt and comply with the Port of Nacala’s integrated management system and thereby participate in community engagement initiatives and activities initiated or mandated by the Port. Malawi flour milling operations are situated on a four ha parcel in an existing light industrial area segregated from local communities. In Mozambique, Bakhresa will make this document, the companion Environmental Action Plan (EAP) along with copies of the environmental permits available in publicly accessible places in Nacala. Similarly, the ESRS and EAP will be made publicly available in Limbe, Malawi.

Further information about Mozambican and Malawi operations may be obtained from the following Bakhresa employees.

For Mozambique and Malawi

Mahesh Josyabhatla
General Manager
Bakhresa Grain Milling (Malawi) Limited
Charterland Road
P.O. Box: 5847
Limbe, Malawi
Tel. (265) 1 641198/641310
Fax. (265) 1 643342

E-mail: mahesh@bakhresagroup.com

Alternate contact for Malawi and Mozambique and Tanzanian operations:

Ramesh Kumar
Financial Controller
Said Salim Bakhresa & Co.
Mzizima Flour Mill
Nyerere Road
P.O. Box 2517
Dar es Salaam, Tanzania
Tel. (255) 22 2861116/2861117
Fax. (255) 22 2861140

E-mail:ramesh@bakhresa.com

Client Documentation

File Name	Actions
Bakhresa EAP.pdf

**Information on IFC's Policy and Performance Standards on Environmental and Social Sustainability can be found at www.ifc.org/sustainability

IFC supports its clients in addressing environmental and social issues arising from their business activities by requiring its real sector clients to set up and administer appropriate grievance mechanisms and/or procedures to address complaints from Affected Communities in relation to environmental and social issues arising from IFC's clients' business activities. Since 2012, IFC's Financial Intermediary clients applying the Performance Standards are required to develop External Communications Mechanisms to receive and review inquiries or complaints from any interested party regarding the E&S risks and impacts of their operations.

For IFC projects that are active or under consideration, individual(s), or their authorized representative(s), who allege they have been or will be adversely affected by E&S risks or impacts arising from IFC's clients' business activities, may submit a complaint to IFC directly for consideration. When receiving an E&S complaint, IFC engages with complainants and works with its clients to find solutions to E&S concerns as quickly and efficiently as possible.

Complaints can be submitted to IFC online at www.ifc.org/escomplaints or by email to EScomplaints@ifc.org.

IFC complaint response is separate from and complementary to IFC’s clients’ project level grievance mechanisms and IFC’s Independent Accountability Mechanism (CAO). Lodging a complaint directly with IFC does not, at any time, restrict access to CAO.

Affected communities have unrestricted access to the Compliance Advisor Ombudsman (CAO), the independent accountability mechanism for IFC and MIGA. CAO facilitates the resolution of complaints related to IFC and MIGA projects and sub-projects, undertakes reviews of IFC’s and MIGA’s environmental and social compliance, fosters public accountability for their commitments, and enhances the environmental and social performance of IFC and MIGA.

Independent of IFC and MIGA management and reporting directly to the IFC and MIGA Boards of Executive Directors, CAO helps resolve issues raised about the environmental and social impacts of projects through a neutral, collaborative, problem-solving approach via its Dispute Resolution function. It also reviews IFC’s and MIGA’s compliance with environmental and social policies, assesses related harm, and recommends remedial actions through its Compliance function. Additionally, CAO provides advice to IFC, MIGA, and their Boards to enhance environmental and social sustainability performance and minimize the risk of harm.

Complaints may relate to environmental and social harm regarding any aspect of the planning, implementation, or impact of a project or sub-project, and can be made by any individual, group, community, entity, or other party affected or likely to be affected by the environmental or social impacts of an IFC- or MIGA-financed business activity.

Complaints can be submitted by any of the following methods:

Online form: available at https://www.cao-ombudsman.org/
Mail/Hand Delivery to: 2121 Pennsylvania Avenue, NW, Washington, DC 20433, USA
Voice mail: +1 202 458 1973
Email: cao@worldbankgroup.org
SMS, WhatsApp, Telegram, and Signal: +1 202 650 2627

CAO receives and addresses complaints in accordance with the CAO Policy, which can be accessed at: https://www.cao-ombudsman.org/policies-guidelines.

This Environmental and Social Review Summary (ESRS) is prepared by IFC to disclose its findings and recommendations related to environmental and social considerations regarding potential investments. Its purpose is to enhance the transparency of IFC's activities. For any project documentation or data included or attached herein, whether prepared by the project sponsor or otherwise, authorization has been given for public release by the project sponsor. IFC considers that this ESRS is of adequate quality for release to the public, but has not necessarily independently verified all of the project information therein.
It is distributed in advance of IFC Board of Directors' consideration and may be periodically updated thereafter. Board dates are estimates only and this document should not be construed as presuming the outcome of the Board Directors’ decision. The following ESRS is disclosed in accordance with IFC's Access to Information Policy (AIP).

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