Project Name TANZANIA: Pallsons II Consumer Industries Ltd.

Region Sub-Saharan Africa

Sector Agribusiness

Project No. 008771
April 6, 1998

1. This project involves the expansion of an existing (AEF project) vegetable oil production plant. The plant is located in Arusha at the Themi Industrial Estate, as part of the expansion capacity will be increased 50% through addition of a 50 tpd expeller and additional storage areas. An ERS for the existing project was completed, and released through the World Bank’s Public Information Center August 27, 1996. As part of the review for plant expansion the sponsor submitted independent verification of boiler capacity and effluent treatment.

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. The following potential environmental, health and safety impacts of the project were analyzed:

· boiler/air emissions;
· liquid and solid waste disposal;
· fuel storage;
· employee training and safety; and
· fire protection.

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 (this information is partly based on information provided for the original project review completed in 1996).

3. The sponsor has submitted data, from the manufacturer, on boiler performance. The plant boiler is of a small capacity and will comply with World Bank guidelines on a mass emissions basis. The boiler was tested by the Ministry of Labour, Inspector of Factories, boiler capacity is under 5 million BTU.

4. The liquid wastes, which are generated by oil washing with soda caustic and brine, are disposed of in a septic tank. This septic tank is periodically emptied by municipal authorities and treated at the Arusha Municipal Works at Lemara Sinon.

5. The solid wastes generated include husk and seed cake. Twenty percent of the husk is reused, the remaining 80 percent is sold as secondary fodder for animal feed. The seed cake is a secondary product of the plant and is sold as premier animal feed.

6. A 15 day fuel supply will be stored in secondary containment storage tanks. The sponsor has fire fighting equipment including hoses and pumps to assist combat potential fires, has installed water outlets and an early warning system to assist in the immediate evacuation of the building.

7. Pallsons has established Fire Safety and Occupational Health and Safety programs which comply with governmental standards and World Bank guidelines. Employees are trained by the Fire Department and receive additional training relating to plant safety rules, accident prevention, hazards of the workplace, and use of Personnel Protective Equipment (PPE).

8. 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.

9. IFC will monitor Pallsons’s 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.

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April 8, 1998 9:59 AM