Project Name: AEF – Guinea Conakry: Alex Socatrag

Region: Sub Saharan Africa

Sector: General Manufacturing

Project No.: 009051


1. This project involves the aquisition and expansion of 2 maintenance garages and two workshops from the Compagnie des Bauxites de Guinée (CBG), in Kamsar and Sangaredi; some minor construction work and a gradual expension of present activities. The garages are located in an industrial zone and cover respectively 6417 and 2250 sq m. CBG is the largest employer in the country and produces 80% of hard currency earnings. In the rationalisation of its operations designed to reduce costs and focus on bauxite production, CGB has chosen to privatize its maintenance garages and it is expected that the garages will thus be more efficiently managed at reduced costs. The sponsor is a joint venture between a Canadian company, Alex Pneu et Mécanique and the former employees of the CBG garage.

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:

· Site location and land use;
· Air emissions;
· Liquid effluents treatment,disposal or recycling (including sewage, used motor oils and motor fluids);
· Fuel and other chemicals storage(including secondary containment and leak detection);
· Hazardous and solid waste management and disposal;
· Noise emissions;
· workplace health and safety; and
· Employee training and fire protection.

The sponsor has presented plans to address these issues and demonstrates 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 company has verified that past activities have not created contamination of the
underlying aquifer; no known soil contamination has been found at the garages. The water table is at about 3 to 4 metres from the surface in Kamsar and deeper in Sangaredi. There are some artisanal wells in the vicinity of the garage (200 metres) and no water contamination was ever reported.

4. No emission of air pollutants is associated with the project. Ambient noise level is not expected to exceed acceptable noise for this type of activity. Levels will remain within World Bank guidelines limits for commercial usage.

5. New operational practices will improve existing on site environmental protection. Alex Socatrag for CBG has clearly indicated that they will make sure that all necessary repairs will be made:

· Run off water concrete-lined gutters will be cured regularly and, at a minimum, at the beginning and end of the rainy season;
· Septic tanks will be emptied regularly as needed or after 24 months of use at the latest;
· Leakage of drinking water reservoir piping will be repaired and the reservoir piping system will be monitored; and
· The oil/water separators will be repaired and maintained.

6. A waste management plan has been devised for liquid, solid and hazardous waste
collection and disposal. The garage operation is expected to generate miscellaneous solid wastes such as used tires, plastics, paper, aluminum cans, etc. A certain level of waste minimization and recycling (both formal and informal) is already implemented at the CBG garages and it will be transferred to the new operation. The miscellaneous solid wastes generated at the garages is collected by the City and transported to the CBG landfills. Used oil is regularly collected by CBG and transported to the Kamsar plant where it is added to the combustion fuel for burning. New waste management practises will be introduced which will improve existing on site environmental protection, namely:

· Hazardous waste will be collected and disposed off separately from other solid wastes: hazardous wastes such as solvents, paint, used batteries and absorbant material contaminated with used oil will be separated at the garage, contained in drums and directed to the CBG operated landfills;
· The new management will not permit the stockpiling of used tires in the garages yard: they will be regularly collected by the City and transported to the CBG operated landfills where they will be disposed in isolated piles to limit the risk of fire hazards;
· Sludges from the septic tanks will be emptied regularly as needed or after 24 months of use at the latest. The sludge is collected by CBG and disposed of in the city sewage system;
· Secondary containment and leak detection system will be installed for new storage equipment, existing storage tanks should be retrofitted;
· Garage operations do not release, systematically, liquid effluents to the environment, and oil/water separators are installed as an emergency measure in case of accidental spill; and
· Training in waste management practices will be regularly undertaken. It will include, without being limited to, environment awareness, the identification of hazardous material used in the garages; the disposal practice for hazardous wastes, solid wastes and used oil; the introduction to the accidental spill management method; and in the use of absorbent material in accidental spills.

7. No Ozone Depleting Substances (e.g., CFCs) will be used in air conditionning maintenance, air conditioning, or fire-fighting equipment on the premises.

8. An Environmental Management Plan will be submitted in line with World Bank guidelines. It will ensure adequate environmental monitoring, health and safety measures, fire safety and emergency response plan in terms of accidental spills. It includes:

· Environmental management: the environment management plan with all its mitigation measures and proposed training will be under the responsibility of the Chief of Personnel and Training. Two (2) other persons will be designated, one for each of the garage, for the environmental follow-up. Health and safety in the workplace will be under the responsibility of the Chief of operations and both Kamsar and Sangaredi Chief of operation services.
· Mitigation and development: the disengagement of CBG garages at Kamsar and Sangaredi involves, primarily, modification to the organizational structure of the activities until recently under the responsibility of CBG. Mitigation measures include the reintegration of each one of the existing CBG employees to the new society Alex/Socatrag without a single layoff or firing and the increase of salaries. A yearly budget will be dedicated to the community activity programmes.
· Environmental monitoring includes regular inspection of environmental protection equipments, adequate supply of petroleum products absorbents, analysis of the quality of water in the nearby wells at the beginning of operations to establish a base line and twice yearly thereafter.

Alex Socatrag is committed to fulfill the environment management plan as described herein and will provide the necessary financial and human resources for its implementation.

9. Workers training programs will be designed to increase the level of expertise in the different operations at the company. The COOP Alex/Socatrag business plan includes the basis for a training programme of the garage workshops. The training programme will include comprehensive health and safety precautions and procedures regarding storage, handling and use of harmful materials. The programme will also include environmental awareness and training for accidental spill and hazardous waste disposal management.

10. Fire safety at the company is carried out in compliance with local and World Bank
regulations and guidelines. Fire extinguishers will be located at strategic place as per the Province of Quebec Petroleum products regulation. Fire drills including, use of fire fighting equipment and evacuation plans are part of Alex Socotrag fire safety program. Training and inspection of fire equipment is provided by the CBG fire department.

11. Adequate ventilation will be provided where necesary and protective gear such as
hard hats, safety boots and goggles will be made mandatory on site.

12. 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 Alex Socotrag and by conducting periodic supervisions.

13. 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 the Government of Guinée Conakry requirements, and World Bank policies on environmental, health and safety guidelines.


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May 12, 1998 2:16 PM