Environmental & Social Review Summary
Project Number
7728
Company Name
Maravi Flowers Ltd.
Date ESRS Disclosed
Feb 5, 2010
Country
Malawi
Region
Africa
Last Updated Date
Dec 31, 2016
Environmental Category
B - Limited
Status
Completed
Previous Events
Approved : Dec 19, 1996
Signed : Feb 12, 1997
Invested : Jun 12, 1997
Sector
Horticultural Products (Flowers)
Industry
other
Department
Regional Industry - MAS Africa
Project Description
ENVIRONMENTAL REVIEW SUMMARY
Project Name AEF-Malawi - Maravi Flowers Ltd.
Region Sub-Saharan Africa
Sector Agribusiness
Project No. 07728
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1. This project, which is to be financed through the Africa Enterprise Fund (AEF), involves the establishment of a perennial flower growing operation over a four year period. The sponsor intends to have 6.5 ha under cultivation in year 1, expanding to 17.3 ha by year 4. The farm is located at Thete, a small market center in Dezda district about 75 km south of the capital Lilongwe. Peak annual production will be 13.7 million stems, all of which are destined for Europe. Total project cost is estimated at US$1.127 million of which AEF has been asked to provide a loan of US$451,000.
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. Key environmental, health and safety issues that are of potential concern in this project include:
• pesticides handling and application;
• integrated pest management (IPM);
• water supply;
• liquid and solid waste disposal;
• CFC-free cold storage;
• disposal/destruction of pesticide containers; and
• provision of personal protective equipment and training.
3. The sponsors have provided an environmental information and management plan that outlines their program for the environmental and health and safety practices proposed for their operations. Major findings of the plan as regards the key issues listed above are described below.
4. Pesticides handling and application: None of the pesticides proposed for use by Maravi are listed on either the World Bank or European Union (EU) lists of banned substances or on the lists of substances whose use is to be avoided if possible. Because Maravi plans to export to EU countries, its pesticide handling and application practices must meet relevant EU regulations. Consistent with these regulations, all agro-chemicals and pesticides are stored separately and under strict security. Access to this store is limited to specially trained senior staff, who maintain records of the type and volume of chemicals released. Mixing and measuring take place in a specially designated area that is well-ventilated and has direct access to ablution facilities. Application of all pesticides and fertilizers is either by motorized wheelbarrow sprayers or manual backpack sprayers, as appropriate for the chemical in question.
5. Integrated pest management (IPM): Because biological control agents currently are not available in Malawi, it is not possible for Maravi to develop a full scale IPM program at present. The sponsors have put into practice a number of IPM principles, however. Frequent rotation of pesticides is practiced to prevent resistance to particular chemicals. Maravi uses the minimal amount of chemical control agents whenever possible. Specific flower varieties have been selected because they can be grown with as little chemical control as possible. Maravi also utilizes a comprehensive pest "scouting" system to enable early detection of pest outbreaks. Maravi utilizes spot sprays rather than blanket coverage whenever possible, as well as the use of pest-specific rather than broad spectrum chemicals. Other conventional methods such as crop rotation will be used to minimize chemical controls. The project sponsors were the first in southern Africa to introduce steam sterilization of soil in floriculture, a technique they intend to use on the proposed project. Maravi’s management is presently investigating the feasibility of heating greenhouses as an alternative to chemical control of certain fungal diseases.
6. Water supply: Water for irrigation purposes is pumped from an adjoining perennial river, the Thete. The sponsors have recently been granted a water right to pump 91,250 cubic meters per year from the river. This volume represents a relatively small percentage of annual flow. There are no other commercial users either up or downstream from Maravi’s operations. Local residents use the river for washing purposes and draw their drinking water from wells or boreholes in the villages. The sponsor intends to drill several shallow wells and boreholes on the property which will be used as an alternative or supplemental source of water, as needed during the dry season. If conditions warrant, the sponsors may in future construct a small dam on the property to store water during the rainy season for use during the dry season.
7. Liquid and solid waste disposal: Maravi provides sanitary facilities for all of its employees, including latrines and ablution facilities. As there is no municipal sewage system in the vicinity of the project, all waste water drains into a series of septic tanks. As it is not presently possible to return or recycle used pesticide containers in Malawi, these will be triple rinsed, crushed and buried on site. Waste water from the rinsing of containers or spraying equipment and chemical containers will be applied to the crop. Aside from sewage, the majority of solid waste produced is biodegradable organic matter that can be used for compost.
8. CFC-free cold storage: All cold storage equipment utilizes R-22, a hydro chlorofluorocarbon (HCFC) refrigerant whose use is permitted in Malawi under the Montreal Protocol on Substances that Deplete the Ozone Layer for at least the next two decades.
9. Provision of personal protective equipment and training: Maravi provides overalls and gum boots to all of its 60 employees. In addition, all employees involved in pesticide handling and application are provided with face masks and rubber gloves. Maravi will utilize the services of an agro-chemical distributor in Malawi to provide a training course covering the handling and application of chemicals. Several key staff have attended the training and have in turn trained other staff members as needed. Shower facilities will be available for all staff handling and applying agro-chemicals. When necessary, employees are provided medical treatment at a mission hospital located directly across the river from Maravi''s property.
10. Based on its review of Maravi''s environmental information and management plan, IFC concludes that the proposed project is being designed and will be operated to meet Government of Malawi requirements as well as all relevant World Bank policies and environmental, health and safety guidelines. IFC will monitor 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.
Environmental and Social Mitigation Measures
Broad Community Support
Related SII
