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

5 At Piura, the company discharges wastewater to a surface drain via a series of settling ponds. The company achieves Peruvian standards (<100mg/l oil and grease and <1000mg/l BOD) and is looking at ways in which wastewater can be further improved. Because the company discharges directly to surface waters IFC has requested that the company prepare a Corrective Action Plan that will identify a timetable and implementation program for compliance with WBG requirements.

6 Air emissions: Potential air emissions arise principally from boilers, fugitive emissions of solvents from vegetable oil sites and CFCs from refrigeration plants. All boilers are fired by bunker fuel although there are plans to convert sites in Lima to natural gas when it becomes available. Boilers at the Fideeria, Alianca, Piura and Arequipa sites are all small (<10 tons steam per hour) and emissions are insignificant. At Copsa larger boilers with state of the art combustion control systems have been installed and emissions are negligible.

7 Other sources of air emissions arise from fugitive emissions of hexane estimated at approximately 2l/t of oil seed crushed at both oil plants. These losses are acceptable and within industry standards. Freon 22 will be used at the Fideeria site but will be replaced with ammonia or an accepted Freon substitute in accordance with Peru''s commitments to the Montreal protocol.

8 Solid waste management: At all sites, solid waste generation is minimized through recycling (card, plastic, paper), burnt in boilers (lubricating fuel), sold to others (surplus plastic containers, some lubricating oils), used as cattle feed (contaminated pasta) or disposed of to municipal landfills.

9 Management and storage of hazardous materials: Hazardous materials use includes small volumes of pesticide (knock down, racumin) which are used to control vermin and insects, Hexane and hydrogen gas (for extraction at oil plants) and fuel oils (for boilers). All sites have secondary containment for fuel oil.

10 None of the pesticides used is banned or subject to restricted use and all are stored in secure areas. Application is undertaken by trained staff with necessary personal protection equipment. At both the Copsa and Piura sites hydrogen gas is produced and stored on site, Hexane is also stored at these two sites. There is a comprehensive health and safety plan for use and storage of both substances and use complies with industry norms. Hexane use is NFPA 36 certified at both sites.

11 Occupational health and safety (including risk of explosion and workplace air quality): Occupational health and safety is well managed at all plants and all staff receive personal protection equipment as required and training in operational and health and safety issues. Accident statistics are compiled at each site and on site medical facilities are available. All sites have fire control equipment and staff are trained in the use of equipment. Fugitive dust emissions from milling and other operations are low and well managed in all production units. The Arequipa site aims to be HACCP registered by September 2000 and other sites will follow.

12 Corporate wide environmental management: The Arequipa site is ISO 9002 certified, the facility plans to apply for ISO 14002 certification in the year 2000 and there is senior management commitment to implementing an Environmental Management System (EMS) based on World Bank Group requirements throughout the company. For the Copsa site this will allow the sponsor to implement a structured program of improvements to waste water treatment that will ensure compliance with WBG requirements by the end of the project.

13 IFC will monitor ongoing compliance with World Bank Group environmental, health and safety policies and guidelines during the lifetime of the project by evaluating reports submitted annually to IFC by Alicorp SA and by conducting periodic supervision. In particular, IFC will require annual reporting on:

· ongoing compliance (or progress towards achieving compliance) with WBG and national requirements;
· progress in implementing the EMS.

14 Based on its review of available information regarding potential environmental impacts and proposed mitigation measures, IFC concludes that Alicorp SA''s proposed project will meet World Bank Group environmental, health and safety policies and guidelines and host country requirements.