Project Name Argentina-Vicentin S.A.I.C (Vicentin)

Region Latin America and Caribbean

Sector Agribusiness

Project No. 007439


1. This project involves an investment program to increase the capacity of Vicentin’s existing oil-seed crushing and vegetable oil production plants to assist the company in maintaining and consolidating its market share.

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 Environment Department staff. The following potential environmental, health and safety impacts of the project were analyzed:

· air emissions;
· liquid effluents;
· solid waste disposal;
· fire and explosion safety;
· emergency response;
· employee exposure to dust; and
· general employee health and safety.

The sponsor has presented plans to address these issues and demonstrate that the proposed project will comply with applicable governmental and World Bank requirements. The information provided about how these potential impacts are addressed in the development of the project is summarized in the paragraphs that follow.

3. The sponsors are expanding the plant in compliance with governmental requirements and relevant World Bank policies and guidelines. A detailed environmental information report of the Vicentin project was prepared by the sponsor and submitted to IFC in May 17th, 1996. The project sponsors are committed to implement the mitigation measures described in this report.

4. The new extraction plant will include a new 40 ton per hour boiler. This will burn natural gas or fuel oil and the stack gases will be cleaned so as to comply with World Bank guidelines.

5. The dust emitted during the production will be controlled with either baghouses or cyclones ensuring that the particulate matter emissions will not be greater than 0.07 mg/Nm3. Additionally, dust generated during raw material and intermediate products handling operations will be also controlled. The sponsor will meet local government and World Bank dust emissions limits.

6. Vicentin’s facility will comply with the governmental standards and World Bank guidelines for process liquid effluents. The industrial liquid effluents contain suspended solids from the process operations and receive primary treatment using sedimentation tanks. After treatment, the liquid effluents are discharged to the Parana River at a location about 4 km from the plant. The existing wastewater treatment plant will be upgraded to accommodate for the effluent increase to be treated. Domestic sewage is treated in a septic system.

7. Hexane, a high flammable solvent, will be used during the oil extraction process at an approximate rate of 4,000 l/d. The sponsor has a strict safety program in place to minimize the risk of fires and explosions caused by the poor handling of this solvent or by the presence of high concentrations of grain dust around the facility. The dust accumulated on roofs and floors is constantly cleaned off to eliminate the possibility of fires. Fire detection and fire fighting will be installed and include fire extinguishers, fire hoses, water sprinklers and a dedicated fire water system. The plant will establish a well-trained and equipped fire brigade. An engine driven form generator and emergency power unit will ensure adequate fire fighting capability in case of emergency.

8. The transportation, unloading and storage of hexane, fuel oil, and caustic soda and sulfuric acid are performed with strict safety procedures under the direct supervision of the Department of Safety and Industrial Hygiene personnel. No traffic around the surrounding hexane and fuel oil storage areas is permitted during loading operations. No “hot activities” are performed during loading times. The equipment involved on the loading operations (valves, pipes, etc. ) is carefully checked to ensure that accidental spills will not occur.

9. Vicentin has established Fire Safety and Occupational Health and Safety programs which generally comply with governmental standards and World Bank guidelines. The Department of Safety and Industrial Hygiene of the facility is in charge of overseeing all safety and environmental matters involved in the operation of the project. Employees are trained with regard to plant safety rules, accident prevention, hazards of the workplace, spill prevention, fire safety and emergency response and use of Personnel Protective Equipment (PPE). The workplace is monitored for employee exposure to noise and dust. Employees are provided with appropriate PPE when noise and dust levels are above the standards. The facility has clearly signaled restricted areas where only authorized personnel is permitted.

10. 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 Argentina requirements, and World Bank policies, and environmental, health and safety guidelines.

11. IFC will monitor Vicentin’s compliance with World Bank policies and guidelines during the life of the project by evaluating environmental performance reports submitted annually to IFC by the sponsor and by conducting periodic site reviews during project supervision.