Environmental & Social Review Summary
Project Number
8101
Company Name
Drop of Zanzibar Ltd.
Date ESRS Disclosed
Feb 5, 2010
Country
Tanzania
Region
Africa
Last Updated Date
Dec 31, 2016
Environmental Category
B - Limited
Status
Completed
Previous Events
Approved : Jul 16, 1997
Signed : Aug 14, 1997
Invested : Oct 9, 1997
Sector
Soft Drink
Industry
Agribusiness and Forestry
Department
Gbl Ind, Manufact, Agribus & Services
Project Description
Environmental Review Summary (ERS)
Project Name AEF - TANZANIA: Drop of Zanzibar
Region Africa
Sector Industrial and Consumer Services
Project No. 8101 April 16, 1997
1. This project involves the establishment of a mineral water processing and bottling plant, and a PET bottle manufacturing plant. The project will be located in Unguja, Zanzibar and will have a capacity of approximately 20,000 bottles per day. Water will be sourced from several wells which are being leased to the sponsor on a 33 year concession basis by the Government. Bottled water is primarily for the local market, but may also be exported to the mainland. Total project cost is estimated at US$1.25 million of which AEF has been approached to provide a loan of US$400,00.
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 key environmental, health and safety issues considered in this project include:
· water supply sustainability and impacts on other users;
· impacts on hydrogeology;
· water quality monitoring/testing;
· liquid and solid waste disposal;
· power supply source;
· employee training and safety; and
· general housekeeping.
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. On the basis of positive results from the various water analyses completed (physical and chemical), environmental clearance from the Water Department and the Commission for Lands and Environment, Government of Zanzibar has been given to the company to extract 50 cubic meters of water per day. Pump tests, completed under the supervision of the Water Department, were carried out over a period of several months. Amounts of water pumped were in the range of 10,000 liters/hr, and the level of the well water remained unchanged. The concession water level, which is approximately 15 meters below natural ground level, will be monitored on a daily basis. Additionally, pump tests will be performed yearly (and reported on to IFC as part of overall project monitoring reporting) to determine the effect caused on the aquifer. The tests will be conducted under the supervision of the Water Department. The concession is located in an uninhabited part of the island, thus impacts of water extraction on other users is not a factor. The soil in the concession is limestone with the upper five meters of laterite. Rain in the area of the concession will be between 1500 and 2000 mm per year, concentrated in April/May and October/November. The sponsor will have access to five different wells located within the concession. The capacity of the wells is adequate to sustain the requirements of the plant, projected at 20,000 liters/day.
4. In terms of water potability monitoring, the plant will have its own testing equipment. Bacteriology analysis and analysis of NH4+ and NO2- will be performed on a weekly basis. In addition, the sponsor will request quarterly analysis from the Government Laboratory.
5. The plastic bottles in PET will be purchased in pre-form size from Italy and blown to final size on the premises. The manufacturing process is dry and only small amounts of solid waste will be generated. This will be approximately 1% of the quantity of caps, pre-forms, bottles, wrapping films and paper labels. These materials will be collected and disposed of by the local authority. At full capacity of production the concession will produce a maximum amount of waste of 100 kg of PET pre-form/bad bottles per month, 10 kg of plastic caps and 12 kg of shrink film. The sponsor plans to eventually purchase equipment to manufacture bottles on site, directly from imported pellets.
6. Liquid wastes generated will primarily be composed of sewage and excess pumped groundwater (no treatment of groundwater is necessary). Given the isolated location of the plant, the Commission for Lands and Environment have authorized the installation of a septic system. The septic system will be located a minimum of 300 meters from any of the wells. All sewage will be channeled to a septic tank. Sewage and septic sludges will periodically be collected by the local authority for proper disposal. The sponsor has committed to monitor septic seepage and, as outlined above, regular water quality testing will be undertaken.
7. The power to the plant will be supplied by the city 200 kW transformer, which will be maintained and checked systematically by the government. In the future the sponsor plans to install a stand-by generating unit. The sponsor has committed to install secondary containment structures for any fuel storage tanks (including fuel storage tanks associated with backup power supply).
8. Employees will undergo an initial medical checkup and safety personal protective equipment will be provided as appropriate. The sponsor has developed a plant emergency response and evacuation plan. The plan addresses emergency response coordination with local authorities, personnel training and regular drills to address emergency situations of various magnitudes. Fire safety equipment will be provided as appropriate. The sponsor has committed to comply with all applicable World Bank guidelines.
9. IFC will ensure ongoing compliance with World Bank environmental, health and safety policies and guidelines during the life of the project by evaluating monitoring reports submitted annually to IFC by Drop of Zanzibar and by conducting periodic supervisions.
10. 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.
Environmental and Social Mitigation Measures
Broad Community Support
Related SII
