PROJECT

Projects

Environmental & Social Review Summary

Project Number

8644

Company Name

Baterías de El Salvador, S.A.

Date ESRS Disclosed

Feb 5, 2010

Country

El Salvador

Region

Latin America and the Caribbean

Last Updated Date

Dec 31, 2016

Environmental Category

B - Limited

Status

Completed

Previous Events

Approved : May 12, 1998
Signed : Dec 1, 1998
Invested : Dec 18, 1998

Sector

Electrical Machinery, Equipment and Components (Electric Lighting, Motors, Batteries, Insulated Wires and Cables, Fiber Optic Cable, Carbon and Graphite Products, etc.)

Industry

Manufacturing

Department

Regional Industry MAS LAC & EUR

Project Description

- 3 - 11/24/1997


International Finance Corporation
A Member of the World Bank Group
International Finance Corporation
A Member of the World Bank Group
REVISED Environmental Review Summary (ERS)

Project Name EL SALVADOR: Baterias Record S.A.

Region Latin America and Caribbean

Sector Manufacturing

Project No. 008644


1. This project involves expansion and modernization of a new automobile battery recycling and manufacturing plant, and closure of an existing small battery manufacturing plant in an urban area. At the old factory, which is now closed, the company manufactured about 200 car batteries per day. At the new plant, the project recycles old batteries and manufactures about 1,800 batteries per day.

2. This is a category B project according to IFC’s environmental review procedure because a limited number of 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. The following potential environmental, health and safety impacts of the project were analyzed:

· liquid effluents and spill containment;
· air emissions, particularly of lead dust;
· worker exposure to lead and acids; and
· closure and cleanup of the old plant

The following is a summary of findings of IFC’s environmental review of this proposed investment.

3. The sponsors recently relocated their battery operation from an old factory in a dense urban neighborhood in San Salvador to a new factory on vacant land in an industrial area about 33 km west of the city. The land at the proposed new plant site was vacant, with a mixture of grass, shrubs, and bare soil. Because of the climate and poor soil quality, the land in this designated industrial site was not in agricultural production and did not represent good quality natural habitat.

4. The battery acids from the recycling process are collected, neutralized and filtered in the plant’s wastewater treatment facility. The treated effluents are recycled into the process, so that all process water is in a closed circuit. Potential spills from the old batteries are controlled throughout the operation. The old batteries entering the plant are placed in a designated paved area with drainage ducts to transport spilled liquids to the wastewater treatment plant. The domestic sewage is discharged into the city’s sewage system, and is the only effluent discharged from the operation.

5. Lead plates and lead oxides from the recycled batteries are metalurgically reduced (purified, recycled) to produce recycled lead for use in the manufacture of new batteries. The particulate emissions generated during the recycling process are collected in cyclones and in a baghouse and recycled into the lead reclaim circuits. The battery recycling line is of US design, and the equipment is designed to comply with USEPA and OSHA air particulate regulations. Plastic battery casings are crushed and sold for reuse in new battery casings manufacturing.

6. The sponsor uses fuel oil and waste oil as furnace fuels. The waste oil used is collected by the sponsor at its retail service stations and from independent service stations and stored in barrels and storage tanks. The waste oil is then transported by the sponsor to the battery recycling and manufacturing plant. The company has plans to install a new desulfurization system in the coming year so that lead oxides can be more easily processed in the furnace, and a system to use oxygen instead of air in the furnaces. These planned measures will significantly reduce NOx emissions and further improve stack emissions.

7. The sponsor has a general safety and evacuation and fire prevention task force to ensure that that the environmental, health and safety measures are up to date and that the employees are properly trained. The employees are provided with personal protective equipment including gloves, goggles, masks and other safety equipment. Employees are also required to leave their work clothes at the factory, shower, and then dress with their own clothes before leaving the factory. The employees have period medical check ups. The sponsor has an emergency response plan in place and fire extinguishers throughout the facility.

8. The sponsor is carrying out a cleanup program at the old battery manufacturing plant to use this site as a service station and warehouse. In addition to manufacturing new batteries at a small scale (200/day), small quantities of old batteries (about 100/day) were also recycled at the old plant. The sponsor is removing all the old materials such as old batteries, battery cases, battery oxide dust, and any other type of waste left behind. In the old plant building, walls and floors will be swept, scrubbed, and painted. The old battery breaking room will be demolished, covered in concrete, and used as a parking area. The sponsor will analyze the floor and soils to assess existence of any potential lead contamination. This is a self-regulated cleanup program, as there is no appropriate environmental regulation in El Salvador. The sponsor is basing the cleanup program on standards and criteria established by Mexico for the lead and battery industry. The cleanup and reconditioning is being supervised by company engineers and independent analytical labs, which are carrying out the sampling analyses for residual lead. Should soil contamination exist, the sponsors will remove the contaminated soil and fill the areas with new uncontaminated soil and concrete. The contaminated soil will be properly disposed.

9. IFC will monitor 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. As part of the environmental performance report, the sponsor will provide stack emission monitoring results to ensure that lead emissions are in compliance with design specifications.

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 El Salvador requirements, and World Bank policies, and environmental, health and safety guidelines.




L:\WPEU\JOSEFINA\SALVADOR\BATERIAS.ERS
December 3, 1997 4:00 PM

Environmental and Social Mitigation Measures

Broad Community Support