Project Name ARGENTINA: Guipeba

Region Latin America and Caribbean

Sector Agribusiness

Project No. 7731


1. Guipeba S.A. is a medium-sized Argentine oilseed crushing company with integrated operations in the refined oil and port industries. The Company has requested IFC to structure a US$40 million financing to improve its competitiveness. The project involves modernizing and expanding its crushing and storage capacity, installing a new edible oil bottling line and incremental working capital. The Tancacha plant, where a new 2,000 tn/day soy grinding facility will be built, is located to the south of Tancacha in the Province of Cordoba. The San Jeronimo plant, located on the National Route No. 9, is expanding its flour production operations and plans to install a PET oil bottling facility. The project also includes the upgrading of the storage facilities in the Tancacha and San Jeronimo plants in the Las Lajitas plant located in the Province of Salta, and the storage facility located in Manfredi Province of Cordoba. In addition, a new storage facility will be built in the Province of Santa Fe.

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:

· land use;
· air emissions;
· liquid effluents;
· solid wastes;
· fire prevention and explosion prevention; and
· employee exposure to noise and dust.

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 to comply with governmental requirements and relevant World Bank policies and guidelines. An environmental information report of the Guipeba project was prepared by the sponsor and submitted to IFC. The project sponsors are committed to implement the mitigation measures described in this report.

4. The sponsor acquired land next to the existing Tancacha plant site to be able to use existing infrastructure while building the facility and upgrading the existing operations. The site is located 15 km from Rio III City, a 7,000 people community. No relocation or resettlement was involved in the acquisition of the land.

5. The project will use a natural gas boiler for steam generation. The stack emissions will comply with World Bank guidelines.

6. The dust emitted during the production will be controlled with either baghouses or cyclones ensuring that the particulate matter emissions will comply with World Bank guidelines. Additionally, dust generated during raw material and final and intermediate products handling operations will be also controlled. The sponsor will meet local government and World Bank dust emissions limits. Guipeba has a monitoring program in place to ensure that the emissions are in compliance.

7. The industrial liquid effluents from the Tancacha plant, are treated and disposed in aerobic evaporation ponds. The liquid effluents from the San Jeronimo plant will be treated in a new wastewater treatment plant before being discharged to the San Jeronimo Channel, which ultimately discharges to the Parana River. Domestic sewage is treated in a septic system. Guipeba’s facility will comply with the governmental standards and World Bank guidelines for liquid effluents.

8. Hexane, a high flammable solvent, will be used during the oil extraction process at an approximate rate of 2,500 l/d. The sponsor has a strict safety program in place to minimize the risk of fires and explosions caused by the 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 consequently cleaned off to eliminate the possibility of fires. Fire detection and fire fighting will be installed and will 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 emergency power unit will ensure adequate firefighting capability in case of emergency. All emergency exits are clearly marked and appropriately lighted.

9. The transportation, unloading and storage of hexane, fuel oil, and other chemicals are performed with strict safety procedures under the direct supervision of the Safety and Industrial Hygiene personnel. No traffic around the 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. Hexane will be stored in underground storage tanks. The measure gauges are controlled and checked frequently and gas is slightly depresurized to ensure adequate operation of the tanks The facilities are monitored permanently to detect potential chemical leaks to the air.

10. Guipeba has established Fire Safety and Occupational Health and Safety programs which generally comply with governmental standards and World Bank guidelines. Specialized Safety and Industrial Hygiene personnel 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. Employees have annual medical exams including vision and hearing tests and access to dental services.

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 Guipeba’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.