Environmental & Social Review Summary
Project Number
36529
Company Name
PUERTAS FINAS DE MADERA MONTEALBAN, S.A. DE C.V.
Date ESRS Disclosed
Mar 12, 2015
Country
Mexico
Region
Latin America and the Caribbean
Last Updated Date
Jul 27, 2017
Environmental Category
B - Limited
Status
Active
Previous Events
Approved : Nov 5, 2015
Signed : Jul 1, 2015
Invested : Dec 9, 2015
Sector
Solid Wood Products (VAP)
Industry
Agribusiness and Forestry
Department
Regional Industry MAS LAC & EUR
Project Description
Holding Montealban, S.A. de C.V. (“Puertas Finas” or the “company”) is a leader in the production of doors, contract woodwork, plywood, kitchens, and furniture in Mexico. The company has production facilities in various parts of Mexico, and its headquarters are located in Oaxaca. IFC has previous investments with the company, including Puertas Finas II (#33550), currently under supervision.
The proposed IFC investment (“the Project”) consists of approximately $2 million in the form of an A Loan through the Cleaner Production Lending Facility (“CPLF”). The Project will enable Puertas Finas to: (i) install solar panels; (ii) replace older or obsolete equipment (such as incandescent lamps, motors, industrial dryers), with more energy efficient models in two of its plants located Oaxaca and Guerrero; and iii) change the varnishing system at the Puertas Finas Oaxaca Plant to reduce solvents in the workplace environment.
Whilst the energy efficiency components have no adverse environmental and social risks or impacts, the change of varnishing system may potentially transfer pollutants (solvents in this case) from air to water. To mitigate this, the Puertas Finas II environmental and social action plan (ESAP) includes a requirement to recover and reuse the solvents as appropriate.
The proposed IFC investment (“the Project”) consists of approximately $2 million in the form of an A Loan through the Cleaner Production Lending Facility (“CPLF”). The Project will enable Puertas Finas to: (i) install solar panels; (ii) replace older or obsolete equipment (such as incandescent lamps, motors, industrial dryers), with more energy efficient models in two of its plants located Oaxaca and Guerrero; and iii) change the varnishing system at the Puertas Finas Oaxaca Plant to reduce solvents in the workplace environment.
Whilst the energy efficiency components have no adverse environmental and social risks or impacts, the change of varnishing system may potentially transfer pollutants (solvents in this case) from air to water. To mitigate this, the Puertas Finas II environmental and social action plan (ESAP) includes a requirement to recover and reuse the solvents as appropriate.
Overview of IFC's Scope of Review
The Project was developed as part of an advisory engagement delivered by IFC’s Energy & Resource Efficiency Client Advisory Services (CASEE) team. The environmental and social (E&S) review consisted of assessing the impact of the various components of the Project to identify potential impacts, and corresponding mitigating measures if necessary.
The outcome of the E&S review determined that whilst the energy efficiency components have no adverse environmental and social risks or impacts, the change of varnishing system may potentially contaminate the plant’s wastewater stream. To prevent this from happening, the ESAP for Puertas Finas II has been amended to include the recovery and reuse of the solvents as appropriate.
The outcome of the E&S review determined that whilst the energy efficiency components have no adverse environmental and social risks or impacts, the change of varnishing system may potentially contaminate the plant’s wastewater stream. To prevent this from happening, the ESAP for Puertas Finas II has been amended to include the recovery and reuse of the solvents as appropriate.
E & S Project Categorization and Applicable Standard
Environmental and Social Mitigation Measures
Stakeholder Engagement
Broad Community Support
Related SII
