PROJECT

Projects

Environmental & Social Review Summary

Project Number

7229

Company Name

Ningbo Taihang Agricultural Products Co., Ltd.

Date ESRS Disclosed

Feb 5, 2010

Country

China

Region

East Asia and the Pacific

Last Updated Date

Dec 31, 2016

Environmental Category

B - Limited

Status

Completed

Previous Events

Approved : Aug 2, 1996
Signed : Apr 3, 1998
Invested : Aug 31, 1998

Sector

Fruits and Vegetables

Industry

Agribusiness and Forestry

Department

Regional Industry - MAS Asia & Pac

Project Description

- 2 - May 10, 1996
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 China-Ningbo Agricultural Products Co., Ltd.

Region ASIA

Sector Agribusiness

Project No. 007229


1. Ningbo Agricultural Products Co., Ltd. (Ningbo) is a newly established joint venture between Tako Co., Japan, two additional Japanese investors and a local state owned enterprise. The proposed project involves the growing and harvesting of 1,500 metric tons per year of natural log shiitake mushrooms for the export market. Ningbo Agricultural Products Co. Ltd. will be the first project in China to produce this premium type of mushroom (natural log grown); other producers utilize a compressed sawdust substrate. The project will be located in Longshan, Ningbo City, Zhejiang Province.

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 information submitted by the project sponsor and the technical appraisal and site review completed by IFC''s Agribusiness Department staff. The following potential environmental, health and safety impacts of this project were analyzed:

· site location;
· production principles;
· raw materials;
· liquid effluent;
· solid waste; and
· sustainable log supply.


Information provided on how these potential impacts would be addressed in the Ningbo project is summarized in the paragraphs that follow.

3. The required spore factory and greenhouses will be established on a 20 hectare greenfield site in the Ningbo Economic and Technical Development Zone (NEYDZ) in Zhejiang Province. The project site is currently agricultural land.

4. Major facilities to be constructed include 250 greenhouses (640 m2 per greenhouse), mushroom spore production and multiplication buildings totaling 4,580 m2, ten staff housing units and other infrastructure. During the production cycle, logs (each about 1 m long and 12 cm in diameter) are inoculated with the mushroom spore and then stored under controlled conditions during which the mushroom fungus colonizes the logs. After harvesting, mushrooms are transported to a central packing facility for preparation and packing for shipment.

5. Approximately 15,000 metric tons of hardwood logs (mainly oak) will be required annually, which will be sourced from commercial woodland areas. The logs are used for approximately 10 successive mushroom production cycles until the nutrient reserves of the log are exhausted, at which time they are sold for use as agricultural mulch.

6. Liquid effluent will be generated from routine washing of the greenhouses and related equipment, and will mainly contain suspended organic material. Settling basins will be used to control suspended material in the discharge. Sanitary wastes will be handled separately and disposed of in accordance with local practices and regulations.

7. Solid waste will largely consist of the depleted logs, which will be recycled as agricultural mulch. Other solid waste, including domestic trash, will be disposed of in accordance with local practices and regulations.

8. The main area of wood supply for the project will be the An Hua region of Hunan Province. The woodlands are managed by the An Hua Forestry Department, and tree felling and wood use are a controlled commercial operation. The forestry department operates a rational replanting program to replace harvested areas and maintain the sustainability of the resource. This replanting program is to replace the tree species that are used for commercial timber applications (construction industry, furniture manufacture, etc.). In these commercial areas of woodland there are a number of self sown oak species which grow as an underbrush to the main timber growth. Generally, these have been used on a limited basis as a source of firewood and have a low commercial value. Because of this the use has been restricted to provincial villages and towns. These oak tree species regenerate naturally over a few years when cut. This project gives increased economic value to this product which often in the past has been cut and discarded in the woodlands. Nevertheless, its utilization will be limited to a sustainable basis and the planned level of offtake is well within the production potential of the woodlands for these undergrowth species. The An Hua Forestry Department manages the woodlands under a sustainable program of resource utilization that complies with World Bank principles and guidelines. On the basis of this overall management program, and particularly since this project uses only secondary tree species forming an undercover below trees and in open spaces, the project will be in compliance with the World Bank’s forest policy.

9. IFC will ensure ongoing compliance with World Bank environmental, health and safety policies and guidelines during the life of the project by evaluating monitoring reports submitted annually to IFC by Ningbo Agricultural Products Co., Ltd. and by conducting periodic supervision.

10. Based on its review of available information regarding potential environmental impacts and proposed mitigation measures, IFC concludes that Ningbo Agricultural Products Co., Ltd.’s proposed project will meet World Bank environmental, health and safety policies and guidelines, and host country requirements.


P:\CTEEU\TAIHANG.ERS
May 10, 1996 11:47 AM

Environmental and Social Mitigation Measures

Broad Community Support