Project Name: Argentina: Kleppe II

Region: South America

Sector: Agribusiness

Project No.: 7494
December 26, 1996

1. This project involves a restructuring of Kleppe’s activities to concentrate on its core business of fruit production, packaging and export, by expanding packaging and handling capacities and improving orchard management.

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

· air emissions;
· liquid effluents;
· solid wastes;
· pesticide handling and application;
· use of CFC-based refrigerants;
· fire prevention and emergency response; and
· worker health and safety.

The sponsor has presented plans to address these issues and ensure 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. Detailed environmental information for the Kleppe project was prepared by the sponsor and submitted to IFC. The project sponsor is committed to implement the measures as provided.

4. There are no air emissions associated with the project .

5. Kleppe’s facility will comply with government standards and World Bank guidelines for process liquid effluents. Liquid effluents include primarily wash waters. Kleppe will, as part of the project, implement wastewater treatment to ensure that all contaminant concentrations are within acceptable levels. The local government has established a periodic liquid effluents monitoring program to determine levels of toxic substances including pesticides. Domestic sewage is treated in a septic system

6. The solid wastes generated will be handled and disposed of according to local regulations.

7. The sponsor will only use pesticides where no other alternative for pest management is available. Carbaryl will be used under close supervision and will be replaced when a more suitable alternative becomes available. Kleppe will follow the General Principles, Guidelines and Standards for Integrated Production of Pome Fruits in Europe, 2nd edition, published in January 1994.

8. No CFC-based refrigerants will be used.

9. Kleppe has established Fire Safety and Occupational Health and Safety programs which 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. The facility has emergency response procedures in case of fire and has a fire department approved fire prevention and protection system in place.

10. 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. Employees are provided with appropriate PPE when noise levels are above the standards. The facility has clearly signaled restricted areas where only authorized personnel are permitted.

11. 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.

12. IFC will monitor Kleppe’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.