Environmental & Social Review Summary
Project Number
9465
Company Name
Esquire Roses Farm Limited
Date ESRS Disclosed
Feb 5, 2010
Country
Zambia
Region
Africa
Last Updated Date
Jan 2, 2017
Environmental Category
B - Limited
Status
Completed
Previous Events
Approved : Jun 29, 1999
Signed : Aug 19, 1999
Invested : Oct 8, 1999
Sector
Horticultural Products (Flowers)
Industry
Agribusiness and Forestry
Department
Regional Industry - MAS Africa
Project Description
ENVIRONMENTAL REVIEW SUMMARY
Project Name ZAMBIA: Esquire Roses (PVT.) Limited
Region Sub-Saharan Africa
Sector Food and agribusiness
Project No. 009465
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1. This project, which is to be financed through the Africa Enterprise Fund (AEF), involves the expansion of an existing floriculture operation. Esquire Roses Farm (Esquire) is a Zambian company that is successfully running a 2-hectare (ha) rose export project on a 15 ha plot in Makeni, 6 kms from Lusaka, the capital. The project was established in October 1995 with the assistance of a European Investment Bank loan, and went into production in November 1996. Esquire now wishes to expand the project from 2 to 4.5 ha. This will enable the project to benefit from production and marketing economies of scale, thereby significantly improving its margins. Using their own funds, the sponsors have already cleared the land and started construction of the first additional greenhouse. The sponsors intend to grow two new medium stem varieties on the additional 2.5 hectares, which will be sold directly to existing markets in Germany, as well as through the Dutch auction system. Rochel, a well-known and experienced French supplier, will supply the greenhouse equipment, including plastic, irrigation and fertilizer application system.
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 key environmental health and safety issues that were analyzed are as follows:
· source of water and impacts on other users of proposed irrigation scheme;
· source of power supply including on-site fuel storage, if applicable;
· storage, handling and application of agrochemicals;
· integrated pest management;
· disposal of solid and liquid wastes including sewage;
· CFC-free cold storage and air conditioning equipment;
· provision of employee personal protective equipment;
· employee health and safety training and monitoring;
· proper disposal of used pesticides containers; and
· fire protection and response.
3. IFC has reviewed environmental information supplied by Esquire, including the Codes of Practice it follows for handling and applying agrochemicals and ensuring employee welfare, and list of all agrochemicals available for use in its operations. Key elements of this information are described below.
4. Source of water and impacts on other users of proposed irrigation scheme: Esquire currently uses approximately 38,000 liters per day; 55,000 liters per day during hot weather. The sponsor expects this consumption level to double as a result of the expansion. All water is obtained from boreholes, approximately 5 meters in depth, located on the property. No water is drawn from surface sources.
5. Source of power supply including on-site fuel storage, if applicable: Power is sourced from the Zambia Electric Supply Company (ZESCO), the national provider. Although the power supply in Lusaka is quite reliable, the sponsors nonetheless keep a small diesel-powered generator on site. The generator is stored in a separate shed with a cement floor, cement walls on three sides and metal roof. At IFC’s request, the sponsor has constructed a cement barrier along the front of the shed to ensure that the structure can contain the entire contents of the tank in the event of a spill or breach.
6. Storage, handling and application of agrochemicals: The sponsor is an active member of the Zambia Export Growers Association (ZEGA), which provides technical assistance services to its members in a number of areas, including agrochemical use. The sponsor is a member of ZEGA’s Pesticides Committee, which has produced a written “Code of Conduct for the Safe Use of Pesticides on the Farm” (edition 2 dated July 1998). This document provides detailed guidelines for undertaking all aspects of pesticides handling, application, record keeping and disposal and is the basis for the practices that Esquire uses in its operations. ZEGA also provides on site training for member companies’ staffs in agrochemical use and handling. In 1998 ZEGA joined the Dutch “Milieu Project Stertelt” (MPS) environmental management and labeling program. Fourteen growers, including Esquire, have since become corporate members of MPS. In accordance with both ZEGA and MPS requirements, all agrochemicals are stored in a locked area, access to which is restricted to the Farm Manager. Removal of any agrochemicals from the storage area is recorded in a centrally maintained registry, which includes information on date received, volume, expiration date, and when used. MPS also requires that agrochemicals be stored separately from other items in a properly ventilated area. Esquire is in the process of complying with this requirement. Esquire uses mobile tanks equipped with hosepipes and nozzles to apply pesticides. Pesticides are currently mixed in an unpaved, open area before being transferred to the mobile tanks, a practice that can result in spills to the ground. At IFC’s request, the sponsors have agreed to carry out the mixing in a paved and bunded area to ensure that spills do not result in contamination of soils or groundwater. None of the pesticides used by Esquire is listed on either the IFC or European Union (EU) lists of banned substances, or on the IFC list of substances whose use is to be avoided if suitable alternatives are available.
7. Integrated pest management: With technical support from ZEGA, Esquire has undertaken a number of integrated pest management (IPM) initiatives. Esquire has had two employees trained by ZEGA to do pest scouting. These individuals scout each of the greenhouses daily and maintain records of pest infestations. Pesticides or fungicides are only applied when a pest population reaches a recognized threshold level and, wherever possible, “spot” applications are used rather than applications to the entire crop. Under the MPS program, growers must conform to stringent environmental management and record-keeping requirements, especially in regard to handling and use of agrochemicals, and use of IPM techniques. With MPS support, ZEGA is currently involved in a biological control trial at one of their member farms, using a predator supplied by MPS to control red spider infestations. Esquire is actively monitoring the success of these trials to assess their applicability for their own holdings.
8. Disposal of solid and liquid wastes including sewage: Biodegradable solid wastes from harvesting operations are disposed on site in compost pits. When the pits are full they are covered with soil and left for more than a year to decompose. The composted matter is then mixed with soil in the greenhouses. As part of the expansion Esquire intends to install a shredding machine for the stems, which will accelerate the process of decomposition, enabling the company to handle the additional waste generated by their expanded operations. Other solid wastes (e.g., office and packaging wastes) are collected in large bins and transported on a regular basis to a municipal landfill. Sewage and wastewater from the office are discharged to a septic tank and soakaway system. Esquire is in the process of constructing housing units for their staff, which are equipped with pit latrines constructed by CARE International. The capacity of these units is approximately 24-36 months, after which Esquire will contract with a local company to have them pumped out.
9. CFC-free cold storage and air conditioning equipment: The sponsor has confirmed that the cold room utilizes R-22, a non-CFC refrigerant acceptable under the provisions of the 1987 Montreal Protocol on Substances that Deplete the Ozone Layer. No new cold storage facilities will be needed as a result of the expansion. As part of the process of preparing the land (2.5 ha) for the new greenhouses, the soils will have to be fumigated. Esquire had originally planned to use a steam sterilization machine, which ZEGA had hoped to acquire this year. ZEGA has had to delay this purchase, however, with the result that Esquire now plans to use methyl bromide for this one-off fumigation effort. Like CFCs, methyl bromide is an ozone-depleting substance whose use is gradually being phased out under the Montreal Protocol. Use of methyl bromide is, however, permitted in Zambia until 2002. The fumigation will be supervised by ZAGA and carried out in accordance with international requirements regarding safe handling and application of methyl bromide. Employees involved in the effort will be provided with all necessary personal protective clothing and equipment, in accordance with ZEGA, MPS and international requirements.
10. Provision of employee personal protective equipment: Esquire currently has 64 full time employees. This number is expected to increase to approximately 110 as a result of the expansion. The minimum age for employees is 18 years. Esquire adheres to all relevant Government of Zambia labor laws and regulations, as well as ZEGA’s Code of Conduct for Worker Welfare (edition 1 dated January 1998). All of these employees are provided with overalls and gum boots. Employees involved in handling and applying agrochemicals are provided with all of the items of personal protective equipment specified in ZEGA’s Code of Conduct for the safe use of pesticides. These include overalls, impermeable gloves, impermeable apron, gumboots, and face shield or cartridge respirator. The sponsor has stated that employees must adhere strictly to these requirements. In accordance with MPS requirements, no employees are allowed to enter greenhouses for a specified period of time after spraying has occurred. These time restrictions have been tailored to take into account local weather conditions and greenhouse construction methods and materials. MPS also requires that shower facilities be provided for spray operators. Esquire has indicated that these will be installed within the next few months.
11. Employee health and safety training and monitoring: Esquire currently has three employees involved in the mixing and application of agrochemicals. All have been trained in safe procedures for carrying out these operations by ZEGA personnel. As additional staff are needed to perform these operations, they will also be trained by ZEGA. Esquire currently has a system whereby nursing staff from a local clinic visit its premises every other month to test staff for communicable diseases and treat any illnesses. Staff who become ill on the job are also taken to this clinic. At IFC'' request, Esquire has agreed to undertake several activities to strengthen its employee health and safety program. The sponsor will designate three or four employees to receive emergency first aid training, focusing on appropriate actions to take in the event of accidental poisoning or over-exposure to chemicals. At least one of these employees will be on duty at all times. Esquire has also agreed to a program of annual physical examinations for all employees, and employees involved in handling and applying agrochemicals will be given blood tests semiannually to determine whether exposure to these substances has exceeded safe levels.
12. Proper disposal of used pesticides containers: Wherever possible, Esquire purchases agrochemicals in containers that can be returned to the supplier. Where this is not possible, Esquire follows procedures established by ZEGA and consistent with MPS. Under these procedures, used containers are washed thoroughly and the wash water added to the spray mixture being prepared. Containers are then punctured or crushed to prevent their being re-used for other purposes. Rinsed containers are stored securely before being disposed either by on-site incineration or burying. ZEGA’s Code of Conduct outlines procedures to ensure that either incineration or burying is done in a safe and environmentally sound manner.
13. Fire protection and response: To reduce the likelihood of a brush fire damaging its facilities, Esquire regularly cuts the grass around its greenhouses and outbuildings and has established a firebreak around the compound. There is ample water available on the site directly from boreholes, as well as a sufficient number of hosepipes that could be used in the event of a fire emergency. Staff do not at present receive training in fire prevention and response, and there are no fire extinguishers in either the office or any of the storage sheds or other outbuildings. At IFC’s request, the sponsor has agreed to install fire extinguishers in each of the structures on site. The sponsor has also agreed to institute a fire and emergency response training program for all employees, to be conducted either by the local fire brigade or a local supplier of fire safety equipment.
14. Based on its review of available information regarding potential environmental impacts and proposed mitigation measures, IFC concludes that the proposed project is being designed and will be operated to meet pertinent Government of Zambia requirements and all relevant World Bank policies and environmental, health and safety guidelines.
15. IFC will monitor ongoing compliance with World Bank Group policies and guidelines during the life of the project by reviewing and evaluating the Environmental and Social Monitoring Reports (AMRs) to be submitted annually to IFC by the sponsor, and by conducting periodic site visits during project supervision.
Environmental and Social Mitigation Measures
Broad Community Support
Related SII
