Environmental & Social Review Summary
Project Number
7206
Company Name
Panafrican Airways Limited
Date ESRS Disclosed
Feb 5, 2010
Country
Kenya
Region
Africa
Last Updated Date
Dec 31, 2016
Environmental Category
B - Limited
Status
Completed
Previous Events
Approved : Mar 13, 1996
Signed : Mar 27, 1996
Invested : Apr 7, 1997
Sector
Paper for Printing and Writing
Industry
Agribusiness and Forestry
Department
Gbl Ind, Manufact, Agribus & Services
Project Description
December 6, 1995
Environmental Review Summary (ERS)
Project Name KENYA-PANAFRICAN PAPER MODERNIZATION
Region Sub Saharan Africa
Sector Pulp and Paper
Project No. 007206
1. Panafrican Paper’s Webuye mill first began operation in 1974, with IFC investment and support. Since then, the company has carried out five expansion and capital improvement projects, and now has a capacity of 90,000 tpa. Installation of a board machine is underway, and will increase the capacity to 120,000 tpa. The proposed new investment will modernize the operation, with approximately 39% of the proposed project cost directed to environmental improvements and energy efficiency. Key components of the proposed modernization include:
. change in bleaching process to chlorine dioxide and reduction in elemental chlorine consumption;
. significant improvement in energy efficiency;
. reduction in chemical consumption;
. marginal increases in chemical and mechanical pulp production; and
. improvements in product quality.
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 this project consisted of appraising technical and environmental information submitted by the project sponsor, and the technical appraisal and site review completed by IFC’s Technical and Environment Department staff. The following potential environmental, health and safety impacts of the project were analyzed:
. liquid effluents;
. air emissions;
. sludge and solid waste disposal; and
. wood and fiber supply.
The information provided about how these potential impacts are addressed in the development of the proposed project is summarized in the paragraphs that follow.
3. The company’s environmental monitoring report, dated November 1994, indicates that the paper mill has been operating in accordance with World Bank guidelines as well as applicable local laws and regulations. In 1995, the Work Bank added a new environmental criterion for paper mills, absorbable organic halogens (AOX) in liquid effluent discharges, which applies to the expansion project. The company’s conversion of its bleaching operations from elemental chlorine to chlorine dioxide will virtually eliminate the production of dioxins and other chlorinated organics as a byproduct, and will bring the entire facility into compliance with the guideline for AOX.
4. Panafrican Paper’s wood supply is predominantly from government-owned tree plantations; purchased pulp and waste paper augments fiber supply. The company has a long term standing license agreement with the government of Kenya to extract timber for the manufacture of pulp and paper, and has recently received commitment from the government to extend the license. The government has overall responsibility for plantation management, including the replanting of trees. As part of government policy (prior to the start of Panafrican Paper’s operations in 1973) housing accommodation was provided to forest workers within the forest areas as an incentive for attracting the labor force required to establish and maintain forest plantations. Problems with the policy in the 1980s (e.g., inefficiency, forest fires, over grazing) caused the government to relocate the people (by 1990) and provide them with lands for settlement elsewhere. The relocation program was handled solely by the Ministry of Lands and Settlement, with no role by Panafrican Paper and other private companies.
5. Panafrican Paper currently harvests wood under a government concession from tracts covering a total of 32,000 hectares. The company is presently consuming wood from about 1,000 hectares annually, which will increase to about 1,250 hectares with the project, still below the allowable offtake of 1,500 hectares Concession refers to consumption in terms of cubic meters rather than hectares. Current consumption is about 380,000 m3 which will increase to 440,000 m3 after the project, still within the allowable 550,000 m3. Conversion of cubic meters to area is based on average yield of 380 m3 per hectare and may vary due to: (a) location (higher growth in highlands), (b) impact of disease, (c) type of species, and (d) age at which the trees are cut.. As Panafrican Paper is currently replanting an area of 2,000 hectares annually (and has replanted over 14,500 hectares since 1987), the area under forest cover is increasing. Panafrican Paper’s reforestation efforts supplement the government’s program which covers an additional 4,000 hectares per year. Seedlings are raised in the company’s three nurseries at Kaptagat, Timboroa and Webuye. Since 1990, Panafrican Paper and Kenya Forestry Research Institute have collaborated on a project to develop disease resistant pine species and improvements in eucalyptus species. This will ensure that yields will continue to increase.
6. Based on its review of available information regarding potential environmental impacts and proposed mitigation measures, IFC concludes that the proposed project is being designed to meet Government of Kenya requirements, and World Bank policies, and environmental, health and safety guidelines.
7. IFC will monitor Panafrican Paper’s ongoing compliance with World Bank policies and guidelines during the life of the project by evaluating monitoring reports submitted annually to IFC by the sponsor and by conducting periodic site reviews during project supervision.
Environmental and Social Mitigation Measures
Broad Community Support
Related SII
