PROJECT

Projects

Environmental & Social Review Summary

Project Number

7907

Company Name

JY Estates Limited

Date ESRS Disclosed

Feb 5, 2010

Country

Zambia

Region

Africa

Last Updated Date

Dec 31, 2016

Environmental Category

B - Limited

Status

Completed

Previous Events

Approved : Mar 24, 1997
Signed : Aug 15, 1997
Invested : Dec 2, 1997

Sector

Horticultural Products (Flowers)

Industry

Agribusiness and Forestry

Department

Regional Industry - MAS Africa

Project Description




ENVIRONMENTAL REVIEW SUMMARY


Project Name AEF-ZAMBIA: JY Estates Ltd.

Region Sub-Saharan Africa

Sector Food and Agribusiness

Project No. 007907 November 6, 1996
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1. This project, which is to be financed through the Africa Enterprise Fund (AEF), involves the relocation of a 5 ha rose farm from the outskirts of Lusaka to Chisamba, approximately 80 kms from Lusaka. The sponsors have been successfully running a rose export project on leased land for the past four years, and the owner now wishes to sell the land, prompting the need to relocate. Total project cost is estimated at US$2.6 million of which AEF has been asked to provide a loan of US$1.1 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. Key environmental, health and safety issues that are of potential concern in this project include:

• pesticides handling and application;
• integrated pest management;
• water supply;
• CFC-free cold storage;
• periodic employee health monitoring;
• provision of personal protective equipment and training; and
• disposal/destruction of used pesticides containers.

3. The sponsors have provided a detailed Environmental Health and Safety Plan that outlines the proposed environmental and health and safety practices for the project. Major elements of the plan regarding each of the key issues listed above are described below.

4. Pesticides handling and application: The sponsors'' Environmental Health and Safety Plan states that chemicals are selected with regard for their efficacy, selectivity, operator safety and environmental impact. None of the pesticides proposed for use by JY Estates is listed on either the World Bank or European Union (EU) lists of banned substances. JY Estates currently uses two chemicals (DDVP and benomyl) that appear on the World Bank list of substances whose use is to be avoided if suitable alternatives are available. IFC requested the sponsor to evaluate whether the use of these chemicals is essential, and they have agreed to phase out the use of both DDVP and benomyl once current stocks have been depleted. Because JY Estates intends to export to EU countries, its pesticides practices must meet all relevant EU regulations. Consistent with these regulations, all agrochemicals and pesticides will be 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. Measuring and mixing will take place in a specially designated, well ventilated area with direct access to ablution facilities. Application of all pesticides and fertilizers is to be either by motorized wheelbarrow sprayers or manual backpack sprayers, as appropriate for the chemical in question. Transport of all agrochemicals will be carried out under strict supervision and only by drivers who have been trained to recognize the various chemical warning labels and received instruction in appropriate procedures for handling such containers. Used containers will be returned to the manufacturer if possible, or triple rinsed and punctured before being burnt or buried on-site, in accordance with manufacturers'' and GIFAP GIFAP (Groupement International des Associations Nationales de Fabricants de Produits Agrochimiques) is the international trade association for manufacturers of agrochemicals. recommended practices.

5. Integrated pest management (IPM): JY Estates employs a number of IPM techniques in its present operations, and these will be utilized at the Chisamba project as well. Greenhouse size and orientation are selected to give an optimum growing environment that promotes vigorous growth, thereby reducing the incidence of pests and diseases. Rose cultivars are selected with regard to their susceptibility to pests and diseases, and resistant cultivars are used wherever possible. Humidity and air circulation within the greenhouses are managed to ensure that the environment is less conducive to pests and disease. High standards of hygiene and weed control are maintained at all times to minimize the incidence of pests. Pest "scouting" is carried out on a daily basis by a trained staff member. All other employees are trained to recognize signs of crop ill health and to report these to their supervisor. Sticky and pheromone traps are used to assist with pest monitoring and containment. Where practical, the sponsors have indicated their intent to use biological agents -- both natural and introduced -- instead of chemical pesticides. JY Estates utilizes outside consultants and liaises regularly with the Zambian Export Growers Association (ZEGA) to ensure that it is aware of recent developments in IPM research. Chemical pesticides will be used in response to an identified pest or disease rather than as a routine preventative measure, which reduces overall pesticide use and prevents against pest resistance to particular chemicals.

6. Water supply: There is no surface water source on the property and the nearest watercourse is approximately 3.5 kms to the east. Consequently the sponsors propose to obtain most of their water from seven existing boreholes on the site. Three new borehole sites has been identified but have not as yet been drilled. It is farm policy only to pump boreholes at a maximum of 65 percent of their recommended capacity to reduce the risk of depletion, particularly during extended drought periods as have prevailed in recent years. The sponsors also intend to collect and store rainwater that collects on greenhouse roofs, and estimate that some 16,000 cubic meters (about 7 percent of total project requirements) can realistically be collected in this manner. JY Estates will implement a number of water conservation measures. Irrigation is to be by both microjet spray lines and drip lines. The microjet is used primarily to maintain humidity (i.e., short, frequent, low volume applications). Drip irrigation is used to maintain soil moisture and apply fertilizers, minimizing water loss through evaporation. Soil tensiometers will be used to monitor soil moisture. Irrigation timing, volume, and dose times can then be adjusted based on ambient soil moisture, minimizing water loss from surface runoff and leaching.

7. CFC-free cold storage: All cold storage equipment will utilize R-22, a hydrochloroflourocarbon (HCFC) refrigerant whose use is currently permitted in Zambia under the Montreal Protocol on Substances that Deplete the Ozone Layer.

8. Periodic employee health monitoring: JY Estates provides basic medical services at its present location, and intends to continue this practice at its new facilities. Routine medical care will be provided for all employees and their resident dependents at an on-site clinic staffed by a full-time nurse. The farm nurse will receive special training in recognizing and treating pesticide exposures and common farm accidents. The nurse will also be responsible for monitoring and keeping records of employee family health, residential hygiene and occupational accidents, and will provide instruction to employees and their families on the prevention and treatment of prevalent diseases including AIDS, rabies and malaria. First aid equipment will be placed in strategic locations on the farm property and all employees will receive basic first aid training, including procedures to be used in the event of an accident. If necessary, more extensive medical facilities are available at a hospital approximately 25 kms from the farm.

9. Provision of personal protective equipment and training: Employees involved in pesticides handling and application will be supplied with overalls, boots, rubber gloves and aprons, hats and face shields. Depending on the nature of the pesticide, employees also may be required to wear respirators. All employees working with pesticides will receive extensive training in the proper use of this equipment and in appropriate procedures for transporting, storing, handling, applying and disposing of pesticides. All personal protective equipment will be stored in a locked room in close proximity to the chemical store and mixing area.

10. JY Estates plans to provide accommodation for all its employees and their dependents. All housing units will be constructed of mud bricks to minimize the risk of fire. A water supply will be available on site and washing facilities and toilets served by septic tanks also will be provided. Firewood is to be supplied by the farm to ensure that wood is not gathered from nearby properties. Recreational areas (football and volleyball) will be provided and land is to be set aside for employees to grow vegetables for home consumption. All solid waste will be collected and transported for disposal at the farm''s landfill.

11. Based on its review of JY Estates'' Environmental Health and Safety Plan, IFC concludes that the proposed project is being designed and will be operated to meet Government of Zambia 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