Environmental & Social Review Summary
Project Number
9084
Company Name
Pasteurizadora Rica SAS
Date ESRS Disclosed
Feb 5, 2010
Country
Dominican Republic
Region
Latin America and the Caribbean
Last Updated Date
Dec 31, 2016
Environmental Category
B - Limited
Status
Completed
Previous Events
Approved : Nov 29, 1999
Signed : Dec 15, 1999
Invested : Nov 15, 2000
Sector
Dairy Products
Industry
Agribusiness and Forestry
Department
Regional Industry MAS LAC & EUR
Project Description
- 4 -
International Finance Corporation
A Member of the World Bank Group
International Finance Corporation
A Member of the World Bank Group
Environmental Review Summary (ERS)
Project Name Dominican Republic - Pasteurizadora Rica S.A.
Region Latin America and the Caribbean
Sector Food and Agribusiness
Project No. 009084
1. The project will support Rica''s five year investment program which consists of: (i) expanding its processing capabilities at Pasteurizadora Rica''s plant in Santo Domingo; (ii) consolidating its overall distribution network to improve distribution efficiency and market; (iii) developing a modern 1,500 cow dairy farm under a majority owned joint-venture to ensure balanced availability of high quality raw milk (the Lecheria farm); and (iv) expanding its existing orange groves by developing 600 hectares of new orange tree plantations (Consorcio Citricos Dominicanos - CCD), to balance its dependency on imported frozen juice concentrate.
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 as well as site visits and discussions with the sponsor. The following potential environmental, social, health and safety impacts of the project were analyzed:
· Details of any land acquisition;
· Air emissions from dairy and fruit juice processing plants;
· Water use and waste water treatment;
· Solid waste management;
· Pesticide use and Integrated Pest Management;
· Use and management of hazardous materials (including fuel and pesticides);
· Relationship with dairy out-growers;
· Occupational health and safety.
The information provided about how these issues and potential impacts have been addressed in the development of the project are summarized in the paragraphs that follow.
3. Details of land acquisition: Land to be developed at both the orange orchards at CCD and the Lecheria farm was formerly used for agriculture and development will not affect natural habitats. The use of these sites is via acquisition through private sale or long term lease, and there has been no economic displacement.
4. Air emissions from dairy and fruit juice processing plants: There are no significant air emissions from the Lecehria farm site and its rural location and state of the art design will ensure that odor is not a problem. Temporary milk chilling (prior to transfer to the Santo Domingo processing facility) will be via a CFC based (Freon) cooling unit and use and phase out of refrigerants will comply with Dominican Republic Standards and the requirements of the Montreal Protocol. Electrical power for the CCD site is obtained from municipal supplies and a small (250HP) oil fired boiler which is used for hot water and citrus pulp drying. The emissions from this source are within World Bank Group (WBG) requirements. The site''s cooling system is ammonia based and the sponsor will develop an emergency plan to address the safe use and management of ammonia. Power for the Santo Domingo site is generated via three small on site generators (2x650Kw and 1x 500Kw). The emissions from these sources are not significant and will operate in compliance with WBG requirements. Steam is generated from a small (9600HP) oil fired boiler and emissions will be within WBG requirements. Refrigeration systems at Santo Domingo are CFC based (Freon -22) and use and phase out will comply with Dominican Republic Standards and the requirements of the Montreal Protocol.
5. Water use and waste water treatment: Water use at the Lecheria site is for cattle, feed crop irrigation and washing of the dairy facility. Water is drawn from an adjacent canal - supplies are sustainable and use for the farm will not adversely affect other users. There is no discharge of wastewater from the farm (all liquid wastes receive on-site treatment prior to use as irrigation water). There is currently no irrigation of the CCD orchards (although drip irrigation tests on a small experimental plot are being undertaken) and process waters (60,000 gallons per day) is abstracted directly from an adjacent river. The sponsor has all necessary permits to undertake this activity and is in the process of developing a recycling system at the plant to reduce process water demand. Wastewater from the site is treated on site prior to discharge in the river Basima. Local authorities monitor this discharge and the site is in compliance with local requirements. The sponsor will demonstrate compliance with WBG requirements prior to disbursement and will correct any deficiencies as a Condition of Disbursement. Sanitary wastes are discharged to on-site septic tanks in accordance with local regulations. The Santo Domingo site currently discharges waste water to the municipal sewer but will install a dedicated on-site waste water treatment plant during the project. Design specifications for this facility will be provided to IFC for review prior to disbursement.
6. Solid waste management : Solid waste from the Lecheria farm comprises manure, which will be used as fertilizer for the farm''s feedlot crops. Solid waste from CCD comprises citrus pulp, which is used as animal feed. Solid waste from the Santo Domingo site comprises whey, which is currently discharged to the municipal sewer. As part of the project, this will be removed and used as cattle feed at Lecheria and other farms. Other solid wastes (paper, card etc) are recycled (paper sacks/bags) or disposed of to either on-site or municipal landfills.
7. Pesticide use and Integrated Pest Management : Agrochemical use at both the CCD and Lecheria sites will conform with local and international norms. Integrated Pest Management approaches are being used at CCD and advice is sought from the Fundacion de Desarrollo Agropecuario on appropriate biological controls of pest species (principally Diaprepes abbreviatus by the fungus Beauveria bassiana). The sponsor has provided details of all agrochemicals used in its operations to IFC and these conform with WBG requirements.
8. Use and management of hazardous materials: Hazardous materials include diesel fuel (at CCD and Santo Domingo) and agrochemicals. Diesel fuel is stored above ground and has secondary containment, agrochemicals are stored in locked facilities with restricted access and strict use/disposal procedures.
9. Relationship with dairy out-growers: Rica obtains milk from approximately 70 dairy farmers in the Santiago and Santo Domingo areas and provides extension support and guidance to all suppliers. This support includes technical and management assistance. The sponsor will be required to provide more advice and guidance on wastewater /solid waste and other environmental management issues as part of the project.
10. Occupational health and safety: Standard occupational health and safety measures are in place and appropriate training (including for new staff at the Lecheria facility) will be undertaken. The company currently does not have an HACCP but will develop one over the course of the project.
11. IFC will monitor ongoing compliance with World Bank Group environmental, social, health and safety policies and guidelines during the lifetime of the project by evaluating reports submitted annually to IFC by the sponsor and by conducting periodic supervision. In particular, IFC will require annual confirmation of progress in:
· development of the HACCP (including ammonia emergency response at the CCB site);
· agrochemical use and management;
· technical assistance provided to out-growers.
12. Based on its review of available information regarding potential environmental impacts and proposed mitigation measures, IFC concludes that the sponsor''s proposed project will meet World Bank Group environmental, social, health and safety policies and guidelines and host country requirements by project completion.
International Finance Corporation
A Member of the World Bank Group
International Finance Corporation
A Member of the World Bank Group
Environmental Review Summary (ERS)
Project Name Dominican Republic - Pasteurizadora Rica S.A.
Region Latin America and the Caribbean
Sector Food and Agribusiness
Project No. 009084
1. The project will support Rica''s five year investment program which consists of: (i) expanding its processing capabilities at Pasteurizadora Rica''s plant in Santo Domingo; (ii) consolidating its overall distribution network to improve distribution efficiency and market; (iii) developing a modern 1,500 cow dairy farm under a majority owned joint-venture to ensure balanced availability of high quality raw milk (the Lecheria farm); and (iv) expanding its existing orange groves by developing 600 hectares of new orange tree plantations (Consorcio Citricos Dominicanos - CCD), to balance its dependency on imported frozen juice concentrate.
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 as well as site visits and discussions with the sponsor. The following potential environmental, social, health and safety impacts of the project were analyzed:
· Details of any land acquisition;
· Air emissions from dairy and fruit juice processing plants;
· Water use and waste water treatment;
· Solid waste management;
· Pesticide use and Integrated Pest Management;
· Use and management of hazardous materials (including fuel and pesticides);
· Relationship with dairy out-growers;
· Occupational health and safety.
The information provided about how these issues and potential impacts have been addressed in the development of the project are summarized in the paragraphs that follow.
3. Details of land acquisition: Land to be developed at both the orange orchards at CCD and the Lecheria farm was formerly used for agriculture and development will not affect natural habitats. The use of these sites is via acquisition through private sale or long term lease, and there has been no economic displacement.
4. Air emissions from dairy and fruit juice processing plants: There are no significant air emissions from the Lecehria farm site and its rural location and state of the art design will ensure that odor is not a problem. Temporary milk chilling (prior to transfer to the Santo Domingo processing facility) will be via a CFC based (Freon) cooling unit and use and phase out of refrigerants will comply with Dominican Republic Standards and the requirements of the Montreal Protocol. Electrical power for the CCD site is obtained from municipal supplies and a small (250HP) oil fired boiler which is used for hot water and citrus pulp drying. The emissions from this source are within World Bank Group (WBG) requirements. The site''s cooling system is ammonia based and the sponsor will develop an emergency plan to address the safe use and management of ammonia. Power for the Santo Domingo site is generated via three small on site generators (2x650Kw and 1x 500Kw). The emissions from these sources are not significant and will operate in compliance with WBG requirements. Steam is generated from a small (9600HP) oil fired boiler and emissions will be within WBG requirements. Refrigeration systems at Santo Domingo are CFC based (Freon -22) and use and phase out will comply with Dominican Republic Standards and the requirements of the Montreal Protocol.
5. Water use and waste water treatment: Water use at the Lecheria site is for cattle, feed crop irrigation and washing of the dairy facility. Water is drawn from an adjacent canal - supplies are sustainable and use for the farm will not adversely affect other users. There is no discharge of wastewater from the farm (all liquid wastes receive on-site treatment prior to use as irrigation water). There is currently no irrigation of the CCD orchards (although drip irrigation tests on a small experimental plot are being undertaken) and process waters (60,000 gallons per day) is abstracted directly from an adjacent river. The sponsor has all necessary permits to undertake this activity and is in the process of developing a recycling system at the plant to reduce process water demand. Wastewater from the site is treated on site prior to discharge in the river Basima. Local authorities monitor this discharge and the site is in compliance with local requirements. The sponsor will demonstrate compliance with WBG requirements prior to disbursement and will correct any deficiencies as a Condition of Disbursement. Sanitary wastes are discharged to on-site septic tanks in accordance with local regulations. The Santo Domingo site currently discharges waste water to the municipal sewer but will install a dedicated on-site waste water treatment plant during the project. Design specifications for this facility will be provided to IFC for review prior to disbursement.
6. Solid waste management : Solid waste from the Lecheria farm comprises manure, which will be used as fertilizer for the farm''s feedlot crops. Solid waste from CCD comprises citrus pulp, which is used as animal feed. Solid waste from the Santo Domingo site comprises whey, which is currently discharged to the municipal sewer. As part of the project, this will be removed and used as cattle feed at Lecheria and other farms. Other solid wastes (paper, card etc) are recycled (paper sacks/bags) or disposed of to either on-site or municipal landfills.
7. Pesticide use and Integrated Pest Management : Agrochemical use at both the CCD and Lecheria sites will conform with local and international norms. Integrated Pest Management approaches are being used at CCD and advice is sought from the Fundacion de Desarrollo Agropecuario on appropriate biological controls of pest species (principally Diaprepes abbreviatus by the fungus Beauveria bassiana). The sponsor has provided details of all agrochemicals used in its operations to IFC and these conform with WBG requirements.
8. Use and management of hazardous materials: Hazardous materials include diesel fuel (at CCD and Santo Domingo) and agrochemicals. Diesel fuel is stored above ground and has secondary containment, agrochemicals are stored in locked facilities with restricted access and strict use/disposal procedures.
9. Relationship with dairy out-growers: Rica obtains milk from approximately 70 dairy farmers in the Santiago and Santo Domingo areas and provides extension support and guidance to all suppliers. This support includes technical and management assistance. The sponsor will be required to provide more advice and guidance on wastewater /solid waste and other environmental management issues as part of the project.
10. Occupational health and safety: Standard occupational health and safety measures are in place and appropriate training (including for new staff at the Lecheria facility) will be undertaken. The company currently does not have an HACCP but will develop one over the course of the project.
11. IFC will monitor ongoing compliance with World Bank Group environmental, social, health and safety policies and guidelines during the lifetime of the project by evaluating reports submitted annually to IFC by the sponsor and by conducting periodic supervision. In particular, IFC will require annual confirmation of progress in:
· development of the HACCP (including ammonia emergency response at the CCB site);
· agrochemical use and management;
· technical assistance provided to out-growers.
12. Based on its review of available information regarding potential environmental impacts and proposed mitigation measures, IFC concludes that the sponsor''s proposed project will meet World Bank Group environmental, social, health and safety policies and guidelines and host country requirements by project completion.
Environmental and Social Mitigation Measures
Broad Community Support
Related SII
