Project Name Tanzania-Pallsons Consumer Industries Ltd.

Region Africa

Sector Agribusiness

Project No. 007702
August 27, 1996

1. This project involves the establishment of vegetable oil production plant. The plant will be located in Arusha at the Themi Industrial Estate and will have the capacity to produce 4,500 tons of refined sunflower and/or cotton seed oil. Total project cost is estimated at US$1.8 million of which AEF has been approached to provide a loan of US$500,000.

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

· boiler/air emissions;
· liquid and solid waste disposal;
· fuel storage;
· employee training and safety; and
· fire protection.

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 boiler will be operated with diesel oil and will comply with the World Bank guidelines. It will be inspected before and after installation by local inspectors. The sponsor will submit to IFC data regarding boiler air emissions immediately after the supplier provides this information to the sponsor.

4. The liquid wastes, which are generated by oil washing with soda caustic and brine, are disposed of in a septic tank. The solid wastes generated include husk and seed cake. Twenty percent of the husk is reused, the remaining 80 percent is sold as secondary fodder for animal feed. The seed cake is a secondary product of the plant and is sold as premier animal feed.


5. A 15 day fuel supply will be stored in secondary containment storage tanks. The sponsor has fire fighting equipment including hoses and pumps to assist combat potential fires, has installed water outlets and an early warning system to assist in the immediate evacuation of the building.

6. Pallsons has established Fire Safety and Occupational Health and Safety programs which comply with governmental standards and World Bank guidelines. Employees are trained with regard to plant safety rules, accident prevention, hazards of the workplace, fire safety and use of Personnel Protective Equipment (PPE).

7. 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 Tanzania requirements, and World Bank policies, and environmental, health and safety guidelines.

8. IFC will monitor Pallsons’ 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.