PROJECT

Projects

Environmental & Social Review Summary

Project Number

9426

Company Name

Propileno de Falcón, C. A. (Profalca)

Date ESRS Disclosed

Feb 5, 2010

Country

Venezuela, Republica Bolivariana de

Region

Latin America and the Caribbean

Last Updated Date

Jan 2, 2017

Environmental Category

B - Limited

Status

Completed

Previous Events

Approved : May 25, 1999
Signed : Aug 20, 1999
Invested : Sep 7, 1999

Sector

Petrochemical

Industry

Manufacturing

Department

Regional Industry MAS LAC & EUR

Project Description

-4-

March 17, 1999
Environmental Review Summary (ERS)

Project Name: VENEZUELA: Profalca

Region: Latin America and Caribbean

Sector: Chemical Manufacturing

Project No: 009426


1. The project is to construct a facility to separate a mixed liquefied gas-stream into polymer grade propylene and propane in a C3 splitter. The polymer grade propylene will be taken by the project company, Profalca, and propane will be returned to the mixed-gas supplier, PDVSA PG. The splitter is designed to produce at least 130,000 mt/yr of polymer grade propylene.

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

· site selection, and site selection procedures;
· air emissions;
· liquid effluent handling, treatment and discharge;
· solid and hazardous waste handling and disposal ;
· contingency and emergency planning and response; and
· general health and safety issues.

The sponsor has provided information about how these potential impacts will be addressed and demonstrated how the proposed project will comply with applicable local regulations and World Bank policies and guidelines. This information is summarized in the paragraphs that follow.

3. The project site occupies approximately 6 hectares on an industrial area and is located adjacent to the Paraquana Refining Complex (Cardon) in the State of Falcon, Venezuela. The industrial plant will basically consist of treatment and distillation units, and service and storage areas. The facility will also include the addition of facilities to the existing docks for shipping of final product. The project will not involve human resettlements and will not impact sensitive habitats.

4. Profalca and PDVSA will sign an industrial services agreement by which PDVSA will supply services including electricity; steam; docking facilities; emergency fire fighting service; and supply of raw, process, and fire fighting water. As part of the agreement, Profalca will use the refinery’s fire fighting services and facilities.

5. The process will not generate air emissions. However, there will be a closed system ready to collect overpressure equipment relief gases, which may be emitted. The collected gases will be sent to the refinery’s flare.

6. There are no process liquid effluent generated; however, the oily waters resulting from either equipment maintenance or malfunctions will be treated onsite. These liquid effluents will be collected in a closed system and disposed in a 7.8 m3 oily water pit. The accumulated oil and water will be drained to the oil retention sump and to the water retention pond respectively. Domestic wastes from septic tanks will be sent to the refinery’s sewer water treatment plant.

7. Noise levels outside the property boundary will be maintained below 70 dBA ensuring compliance with World Bank guidelines.

8. The catalysts generated will be collected, properly stored and sent back to the suppliers for recycling purposes. Domestic residues will be collected and properly disposed at a landfill authorized by the local authorities.

9. Once separated, the propane will be sent via pipeline to the refinery and the propylene will be stored in two refrigerated above ground storage tanks. The propylene will be then pumped to the dock facilities where will be loaded into refrigerated ship-tanks.

10. Profalca will ensure that all ships using the refinery’s terminal will follow the established procedures on prevention and management of surface water pollution from ships and that the ships loading liquid propylene will comply with all safety precautions to minimize the risk of accidents.

11. Profalca’s fire prevention measures will follow the strict refinery requirements for construction, design and operation. The propylene tanks will have pressure relief valves. The plant will be provided with a firewater main and foam generating facilities in accordance with international design standards. It will also have extinguishers and spray systems as necessary. PDVSA’s well- trained fire brigade will be responsible for handling fire-related emergencies within Profalca premises. Profalca’s fire drills will be performed in coordination with the refinery.

12. Profalca is currently completing the HAZOP study, the emergency response plan; and the operation, inspection and maintenance manuals. Copies of the HAZOP conclusions and the emergency response plan will be submitted to IFC as soon as they are ready.

13. Profalca will implement occupational health and industrial safety training programs and will establish procedures including proper handling of chemicals substances, hearing, respiratory protection, and basic sanitation, in accordance with international standards. Personal protective equipment will be provided to and required to be used by the employees. With the implementation of these procedures, Profalca will be in compliance with World Bank guidelines.

14. Profalca will develop a formal environmental policy and will hire an Specialist in charge of environment and occupational health and safety matters to oversee the implementation and compliance of the environmental and health and safety requirements.

15. The project is anticipated to be completed by June 1999. By then, Profalca operations will be fully in compliance with the relevant World Bank guidelines and policies.

16. Profalca will annually submit to IFC a monitoring report to ensure ongoing environmental compliance during the life of the project. Profalca’s monitoring reports will include monitoring results and current status for the following components, at a minimum:

· project status including key developments or deviations from the original design;
· annual statistics for occupational accidents and illnesses including number of employees, work hours and lost-time incidents;
· rate of work related accidents and incidents;
· interactions with the local communities;
· significant incidents, if any; and
· employee training programs.

17. Based on the review of the available information regarding potential environmental impacts and proposed mitigation measures, IFC concludes that the proposed project is being designed to meet Government of Venezuela requirements, and World Bank policies, and environmental, health and safety guidelines.

18. IFC will monitor Profalca’s ongoing compliance with World Bank policies and guidelines during the life of the project by evaluating environmental performance reports submitted annually to IFC by the sponsor and by conducting periodic site reviews during project supervision.

Environmental and Social Mitigation Measures

Broad Community Support