Project Name Argentina-T6 Industrial

Region Latin America and Caribbean

Sector Food and Agribusiness

Project No. 008278 May 9, 1997


1. This proposed investment located in Puerto San Martin consists of the construction of a 4,800 ton per day soybean crushing plant located adjacent to Terminal 6 S.A., an existing grain export facility.

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 completed by IFC’s Agribusiness Department staff. The following potential environmental, health and safety impacts of the project were analyzed:

· air emissions and dust control;
· effluent treatment and disposal;
· stormwater drainage and treatment
· solid waste management;
· chemicals handling and disposal;
· fire prevention;
· emergency response; 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 site is located in the city of Pto. Gral. San Martin next to the Parana River at the km 45 in the Province of Santa Fe. The plant will be located next to the Terminal 6 S. A. port terminal and will use the terminal’s existing infrastructure. No relocation or resettlement was involved in the acquisition of the land.

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

5. 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 at all times. 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. T6 Industrial will implement a monitoring program to ensure that the emissions are in compliance.

6. The industrial liquid effluents from the plant will be treated and disposed in aerobic evaporation ponds. The boiler and cooling water will be discharged to the Parana River which is also T6 Industrial’s source of process water. The effluents discharged will comply with local requirements and World Bank guidelines. Domestic sewage is treated in a septic system. T6 Industrial’s facility will comply with the governmental standards and World Bank guidelines for liquid effluents.

7. The domestic solid wastes generated will be apprpriately disposed according to local regulations. The organic biodegradable solid residues generated will be landfilled.

8. Hexane, a highly flammable solvent, will be used during the oil extraction process at an approximate rate of 3,000 l/d. The sponsor will implement a strict safety program 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. 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 will be clearly marked and appropriately lighted.

9. The transportation, unloading and storage of hexane, and other chemicals will be 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 will be permitted during loading operations. No “hot activities” will be performed during loading times. The equipment involved on the loading operations (valves, pipes, etc. ) will be carefully checked to ensure that accidental spills will not occur. Hexane will be stored in underground storage tanks. The measure gauges will be controlled and checked frequently and gas will be slightly depresurized to ensure adequate operation of the tanks The facilities will be mantained slightly under pressure to avoid gas leaks and will be monitored permanently to detect potential chemical leaks to the air. The sponsor will also establish an emergency response plan.

10. T6 Industrial will establish Fire Safety and Occupational Health and Safety programs to comply with governmental standards and World Bank guidelines. Specialized Safety and Industrial Hygiene personnel will be in charge of overseeing all safety and environmental matters involved in the operation of the project. Employees will be 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 will be monitored for employee exposure to noise and dust. Employees will be provided and required to use appropriate PPE when noise and dust levels are above the standards. Employees will have annual medical exams including vision and hearing tests.

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 T6 Industrial’s ongoing compliance with World Bank policies and guidelines during the life of the project by evaluating the environmental performance reports submitted annually, in conjunction with the annual financial report, to IFC by the sponsor and by conducting periodic site reviews during project supervision.

13. The environmental performance reports submitted by the sponsor shall include at a minimum the following information:

· air emission monitoring results;
· liquid effluents monitoring results;
· health and safety training programs and
· annual statistics for occupational accidents and illnesses including number of employees, work hours and lost-time incidents.



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May 9, 1997 3:48 PM