Environmental & Social Review Summary
Project Number
9190
Company Name
S.A. SAN MIGUEL A.G.I.C.I. y F.
Date ESRS Disclosed
Feb 5, 2010
Country
Argentina
Region
Latin America and the Caribbean
Last Updated Date
Dec 31, 2016
Environmental Category
B - Limited
Status
Completed
Previous Events
Approved : Oct 30, 1998
Signed : Jun 10, 1999
Invested : Jul 9, 1999
Sector
Fruits and Vegetables
Industry
Agribusiness and Forestry
Department
Gbl Ind, Manufact, Agribus & Services
Project Description
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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 ARGENTINA: SAN MIGUEL
Region Latin America and Caribbean
Sector Agribusiness
Project No. 009190
1. This project involves the production of citrus (mostly lemons) for fresh fruit and processing into juice, oil and peel. Specifically, the project will assist in the expansion of fruit processing (from 200,000 to 270,000 tons per annum) and packaging facilities, investment in new orchards and micro- irrigation equipment, rehabilitation and maintenance of existing orchards and renewal of agricultural equipment.
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:
· plantation site selection and acquisition, and associated social impacts;
· environmental and health and safety performance of the existing and expanded packaging and processing plants;
· water supply and wastewater treatment plant(s) capacity and sludge disposal;
· solid waste processing, management and disposal;
· use and handling of pesticides/hazardous materials; and
· general employee health and safety, including training.
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. The sponsor processes fruit from 23 separate farms totaling 14,421 ha - of which 5,389 are currently in use as citrus groves. In 1998, of this cultivated area, 715 ha correspond to new plantations and 1,558 ha are planted with trees that are not yet productive. All the land is owned by the Company. Former land use of the farms was mostly for sugar cane and no ecologically sensitive habitats have been affected by past citrus planting activities and none will be affected by the proposed planting program. There are significant areas of natural forest on steeper slopes within the farms which will all be retained (for erosion and water discharge control). Past and proposed future planting has not directly affected local people and no re-settlement has or will occur.
4. The sponsor operates two processing plants, the Lavalle plant is sited within the city of San Miguel de Tucuman and is surrounded by a mix of residential and industrial buildings. The Famailla plant is 40km south of the city in open farmland. Operation of both plants is in compliance with all relevant national and local laws and in compliance with World Bank Group (WBG) policies and guidelines with the exception of waste water discharges (see paragraph 6 below).
5. Water for irrigation activities is drawn from tube wells (relevant abstraction licenses are held by the sponsor) and is stored in farm ponds prior to use. Process water at the production site is drawn from tube wells.
6. Process wash waters from for both plants (Famailla 70l/s and 50l/s from Lavalle) are currently discharged to waste water treatment systems that are owned and operated by the sponsor. The systems comprise solid waste separators and neutralization tanks but neither site currently complies with WBG requirements for BOD. The sponsor has committed to upgrading both systems and will be in compliance with WBG guidelines by the end of the project. The preparation of a timebound Corrective Action Plan for the waste water treatment plants will form a condition of disbursement. Wash waters at the newer Famailla plant are re-circulated to reduce water use (by an estimated 30%). Discharge of effluents is to adjacent ditches and drains which discharge to streams.
7. The plants are powered by 4 boilers which provide steam/ drying heat for processing. The boilers are fired by natural gas and operate within World Bank Group guidelines for NOx, SO2 and particulate emissions.
8. Solid wastes comprise rotten fruit and leaves (totaling c 3,000 tons per annum), office waste, sludge from waste water treatment systems and miscellaneous processing wastes (machine, parts, damaged crates and other packing materials). All solid waste is currently disposed of at licensed landfill sites, although the sponsor is examining the feasibilty of using organic waste for animal feed or combining with dried citrus peel for sale to others.
9. Hazardous material use includes pesticides (Bromacil - 5,000kg/yr and Roundup 16,000 l/yr), fungicides (copper oxychloride approximately 240,000 kg/yr) which are applied in the citrus plantations. All agrochemicals are securely and safely stored and only handled by personnel who have received appropriate training and who have been issued with appropriate equipment and protective clothing. Disposal of used containers follows industry best practice. Use of agrochemicals follows standards and application methods that have been accepted by the US EPA and Food and Drug Administration and FAO and European Community.
10. Refrigeration and cooling systems at the Famailla and Lavalle use ammonia as a refrigerant and appropriate emergency plans are in place . No CFCs are used at either plant for refrigeration.
11. Neither plant generates excessive noise beyond the site boundaries and employees are issued with appropriate personal protection equipment (PPE) if they are required to work in noisy areas. The sponsor has a full range of health and safety measures (PPE, training, medical and first aid facilities) and operates to industry norms for all occupational health and safety issues.
12. 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 San Miguel and by conducting periodic supervision.
13. Based on its review of available information regarding potential environmental impacts and proposed mitigation measures, IFC concludes that San Miguel''s proposed project will meet World Bank Group environmental, health and safety policies and guidelines and host country requirements.
Environmental and Social Mitigation Measures
Broad Community Support
Related SII
