Project Name AEF-TANZANIA: Aquva Ginners Tanzania Ltd.

Region Africa

Sector Textiles

Project No. 7708
October 28, 1996

1. This project involves the establishment of a cotton ginnery in the Mwanza region of Tanzania. International Cotton Consultants (a Lonhro subsidiary) have been awarded a turnkey contract which includes purchase of a gin, installation, training and performance warranties. The ginnery will have a capacity of 11,000 tpa of lint cotton (32,000 tpa seed cotton). Total project cost is estimated at US$5.0 million of which IFC has been approached to provide a loan of US$1.4 million.

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 the appraisal of technical and environmental information submitted by the project sponsor and completed by IFC’s Environment Department staff. The following potential environmental, health and safety impacts of the project were analyzed:

· ambient dust emissions;
· power supply;
· employee exposure to dust, heat and noise;
· waste disposal;
· provision of personal protective equipment and training; 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. Dust generated during the cotton ginning operations will be collected by dust collection systems and dust collection hoppers. The dust will be stored outside the main building prior to final disposal.

4. The sponsor will operate two diesel generators to generate power. The underground diesel storage tanks will be provided with secondary containment and will be monitored to prevent leaks and potential soil contamination.

5. The cotton seeds will be packed and sold to nearby oil mills. The solid waste will be collected in trash collectors and will be disposed of as per local requirements.

6. Employees have been trained with regard to plant safety rules, accident prevention, safe lifting procedures and proper control and maintenance of equipment, fire safety and emergency response and use of Personnel Protective Equipment (PPE). Employees are provided with and required to use appropriate PPE including breathing masks and noise protection equipment. Records of job related accidents and illnesses are being maintained by the sponsor. The employees have access to medical facilities.

7. All machines are provided with shield guard and railing and staircases, platforms and walkways are provided with non-slip surfaces. Each electrical machine is provided with a separate earthpoint. Fire extinguishers, an overhead water tank and a truck mounted water tank are available for fire prevention. Fire hydrants will be installed around the facility and a team of employees will be trained in fire fighting activities.

8. 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.

9. IFC will monitor Aqua Ginners’ 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.





L:\WPEU\LB\AEF\TANZANIA\AQUAGIN.ERS
October 28, 1996 11:08 AM