Environmental & Social Review Summary
Project Number
9654
Company Name
Africa Plantations Company Limited and African Highlands Plantations Company 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 : Mar 31, 2000
Signed : May 24, 2000
Invested : Jun 27, 2000
Sector
Coffee, Cocoa, Tea
Industry
Agribusiness and Forestry
Department
Regional Industry - MAS Africa
Project Description
ENVIRONMENTAL REVIEW SUMMARY
Project Name Zambia – African Plantations
Region Sub-Saharan Africa
Sector Food and Agribusiness
Project No. 009654
1. This project involves the expansion of three coffee estates in Northern Zambia, currently owned by African Plantations Company Ltd. (APC). Two of these, Kateshi and Ngoli, were formerly owned by the Government-owned Zambia Coffee Company Limited (ZCCL), which was privatized and purchased by the sponsors in 1995. The third estate, Isanya, was purchased by the sponsors in 1996. The sponsors have invested substantial funds in the estates in new coffee plantings, infrastructure, plant and equipment. Since acquisition, Kateshi plantation has been increased from 147 ha to 533 ha and Ngoli from 89 ha to 124 ha. At present 324 ha of coffee have been planted at Isanya. The sponsors have planned further expansion to bring the combined total plantation size to 1,900 ha by the end of 2001. In the next three years, 600 ha will be planted at Kateshi, 155 ha at Ngoli and 176 ha at Isanya. The project includes additional infrastructure development and purchase of equipment. Zambia’s Arabica coffee is renowned for its high quality and fetches premium prices on the world market. The expansion project will make APC the largest coffee producer in Zambia.
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. Key environmental health and safety issues analyzed with respect to the plantation included:
• selection, handling, application and disposal of agrochemicals;
• integrated pest management;
• provision of protective equipment and employee training;
• regular medical check-ups for employees handling agrochemicals; and
• agrochemical container disposal.
Key environmental health and safety issues analyzed with respect to irrigation systems included:
• source and volume of water supply;
• impacts on riverine hydrology;
• potential loss of grazing land and wildlife habitat if applicable;
• impact on fisheries and subsistence fishing if applicable;
• minimum flow maintenance and impacts on downstream users;
• increased waterborne diseases;
• restoration of land disturbed during rehabilitation and construction; and
• general worker safety during construction.
Key environmental health and safety issues analyzed with respect to processing plants included:
• power supply including fuel storage if applicable;
• emissions from boilers and other sources;
• workplace hygiene and housekeeping;
• provision of personal protective equipment and employee health and safety
training;
• solid and liquid waste disposal; and
• fire protection and life safety.
3. IFC has reviewed environmental information supplied by APC, including hydrology assessments for the existing and proposed dams and weirs the original dam design reports for each dam, and water resources and irrigation audits for each of the estates. In accordance with IFC’s Operational Policy (OP) 4.37, “Safety of Dams” (September 1998), the sponsors undertook a safety review of the existing dam at Ngoli and the dam under construction at Isanya. The safety review was conducted by an independent dam specialist, who has provided written reports of findings and recommendations.
4. Selection, handling, application and disposal of agrochemicals: Because of the remote location of the estates, APC must stock large quantities of the pesticides and fertilizers it is likely to require. All chemicals are stored in locked metal transport containers. Fertilizers are stored in a locked warehouse. APC intends to introduce a double locking system when operations are fully underway, with keys kept by the stores clerk and relevant field supervisor or estate manager. APC maintains accurate records of pesticides used, as well as counts of pests for which the pesticide was used. These records are then reconciled against the amount of each pesticide supplied. Pesticide application is either by hand-held knapsack sprayers or by tractor-drawn mist blowers. APC attempts to keep the volumes used as low as possible: approximately 150 liters per ha. None of the pesticides used by APC is listed on either the World Bank or European Union (EU) lists of banned substances. APC does not apply ethyl dibromide, which is widely used in the region for fumigation purposes during either production or storage. APC currently use benomyl, which appears on the World Bank list of substances whose use is to be avoided if suitable alternatives are available, as a seed dressing. Benomyl is applied to the seed in powder form prior to planting to prevent seedborne fungal diseases. APC is willing to discontinue its use if a suitable alternative can be identified, and has contacted the Pesticides Committee of the Zambian Export Growers Association (ZEGA) in this regard. The volume of benomyl used is 1g/kg of seed (or 1 g per ha of planted coffee) every 8 years. All pesticides are used at the manufacturers'' recommended and registered rates. APC bases fertilizer application on analyses of soil and leaf samples from various areas of the plantation. Fertilizers currently are applied in low volumes, by fertigation throughout the year. This method maximizes uptake, thereby minimizing both the amount of fertilizer used as well as the likelihood of migration into the soils and/or ground water.
5. Integrated pest management: Plantations are scouted on a regular basis for pests and diseases. Numbers of key pests on sample trees are recorded and plotted graphically. Pesticides are only applied when the numbers reach threshold levels, and only in areas where infestation is evident. Effective control of leaf miner on the plantation is being achieved through soil application of granular pesticides. These are applied sparingly at every second planting station, providing effective control using half the amount of pesticide. APC is complying with the Zambia Coffee Growers Association ban on the use of Pyrethroids sprays on coffee, as such sprays can have negative effects on predator levels. APC works closely with Misamfu Research Station in Zambia to undertake experimental plantings with a number of new Arabica hybrids to assess their resistance to coffee berry disease. APC will actively pursue any of these that appear promising and would enable production using less chemical intervention.
6. Provision of protective equipment and employee training: All of APC’s employees are provided with clothing and equipment appropriate to their job. Employees involved in pesticide handling and application are supplied with overalls, gum boots, gloves, and masks or activated carbon respirators, depending on the chemical in use. These employees also receive practical training on an ongoing basis, with special reference to safe handling and use of chemical pesticides. The training materials used have been obtained from the Agricultural Chemical Industry Association of Zimbabwe and the Global Crop Protection Federation. Additional practical training from individual pesticide suppliers is also made available to employees.
7. Regular medical check-ups for employees handling agrochemicals: Since taking over management of the estates, APC has initiated regular medical examinations for employees who handle and/or apply pesticides or other agrochemicals. All employees involved in such activities undergo baseline medical examinations at the Kasama hospital. Follow-up examinations are conducted annually. If these examinations detect possible exposure to pesticides, the employee will be moved to an alternative task, and the circumstances under which exposure may have occurred will be investigated. Complete records are kept of all employees reporting to the government clinic located on the Kateshi estate. Clinic staff have been requested to report any instance of suspected chemical exposure immediately to APC''s General Manager and/or Personnel Manager.
8. Agrochemical container disposal: All empty chemical containers must be returned to the storage areas. If possible, they are then returned to the supplier for reuse. Those that cannot be returned are triple rinsed, punctured, and either buried or incinerated on site. Employees are not permitted to take used containers for personal household use.
9. Source and volume of water supply: At present, all water used in present operations, including irrigation and processing, is drawn from rivers and streams that adjoin or pass through the estates. Kateshi estate is supplied with water drawn from the Lukupa river and Kafika and Lukusa streams. Ngoli estate draws water from the Kabulukutu river, downstream from where it joins the Chamfubu river. Isanya estate historically has drawn water from Isanya stream, Lucheche river and Mbulu canals. There are two small weirs located on the Lukupa and Lucheche rivers to divert water to Kateshi. All water abstraction is done in accordance with the terms of permits issued by the Zambian Ministry of Water Affairs. Additional water required for the projects will be met by the construction of dams (2,500 megaliters in size at Ngoli and 2,000 megaliters in size at Isanya) and a small weir at Kateshi. Phase 1 of the Ngoli dam is complete and construction of the Isanya dam is underway. Development of the Kateshi weir will begin in 2001. At Isanya, abstraction points and canals are already in place. Irrigation pumps, piping and related equipment will be installed as part of this project. Water analyses conducted by APC indicate bacterial counts that could result in health problems. As a result, APC plans to construct a water treatment facility on site. Once constructed, treated water will be supplied for all domestic requirements on the estates.
10. The dams have been planned by Coyne & Belier, an international firm of consulting engineers specializing in dam design and construction, who are also supervising construction by APC’s dam building team. In accordance with IFC’s Operational Policy(OP) 4.37, “Safety of Dams” (dated September 1998), the sponsors undertook a safety review of the existing dam at Ngoli and the dam under construction at Isanya. The safety reviews were conducted by an independent dam specialist, who has provided written reports of both findings and recommendations for each of the dams. The sponsors have agreed to implement all of the recommendations listed in the "Summary of Recommendations" sections of the two reports, and to include an update on these remedial activities as part of the Annual Environmental and Social Monitoring Report (AMR) submitted to IFC.
11. Impacts on riverine hydrology: Water abstraction for Kateshi and Ngoli estates dates to the mid-1980s, when APC was established as a parastatal company with assistance from international donors. The Ministry of Water Affairs has kept flow records on these rivers since 1978, with the exception of the period 1991-95. Little data are available, however, to determine how riverine hydrology may have been affected historically by the offtake of water for irrigation and processing at the estates. Due to the limited size of earlier irrigation schemes, abstraction did not amount to a significant proportion of average dry season natural flow and therefore has not had a significant impact on riverine hydrology to date. The area under irrigation has expanded considerably since 1998, however. Recent hydrological studies have shown that, during the hot dry months of September and October, normal river flow will not sustain peak irrigation demand. As a result, storage dams are planned to harvest floodwaters during the rainy season (November through March). These waters will be used for irrigation purposes during the dry season (April-October). In accordance with Government permit requirements, normal river flow will continue to be released during the dry season to sustain riverine hydrology and associated riverine ecology. The dams are expected to enhance aquifer recharge by retaining rainfall that then percolates to groundwater bodies. In general, the dams will have a regulating effect on river hydrology by storing peak flows and releasing them gradually through the spillway.
12. Potential loss of grazing land and wildlife habitat if applicable: There will be limited inundation of land by the water storage development on all three estates. At it final (phase 2) level, Ngoli dam (storing 2500 ml) will have a reservoir surface area of 45.4 ha, 16% of the total irrigated area of the estate. Isanya dam (storing 2000 ml) will have a surface area of 41.1 ha or 8% of the estate’s final irrigated area. Surface area of the Kateshi weir will be approximately 38 ha, or 8% of the final irrigated area. These relatively low proportions of inundated areas have been achieved by matching sustainable catchment yields to annual irrigation demand at each of the three estates, thereby ensuring that no reservoir is larger than necessary. In all cases, the lands that have been or will be inundated are not used for any kind of agricultural activity including grazing. Local wildlife and bird populations, which have been significantly reduced as a result of unlicensed hunting in the area, are expected to improve as a result of a more reliable water supply.
13. Impact on fisheries and subsistence fishing if applicable: APC has confirmed that there are no fisheries and very little subsistence fishing on any of the rivers in question. As a result, it is expected that there will be no impact on subsistence fishing downstream of the projects. The downstream areas affected are relatively small as, in all cases, abstraction points are above substantial river confluences, which feed all downstream inhabited areas. As they are flood water storage dams the natural flow of the river is unaffected.
14. Minimum flow maintenance and impacts on downstream users: Flow rates on all of the rivers and streams in question fluctuate considerably between the dry and rainy seasons, and flow stops completely in the smaller of these during the dry season. However, because APC intends to expand the amount of land under cultivation at all three estates, it is likely that water usage will increase at each of these locations. In all cases, historic flows have been carefully analyzed and the storage capacities designed to meet certain minimum flow requirements with built-in degrees of comfort. These proposals have been analyzed by the local authorities in the determination of appropriate abstraction rights. It is APC’s experience that the water storage capacity (existing and under construction) will improve the consistency of river flow between the seasonal extremes. This will be beneficial to the 200 people and subsistence farmers who currently use the river, mainly for domestic consumption. As stated in #13 above, only flood water is stored by the dams and natural river flow is unaffected. purposes. It must be stressed that the purpose of a storage reservoir is to store floodwater from the rain season for irrigation use during the dry season. Not only does this provide a more reliable irrigation water source, it also reduces irrigation demand off normal dry season river flow. As a result, normal dry season inflow to the dam will be released downstream to sustain the river ecologies and downstream users. Two factors are likely to mitigate the impact of increased water usage: installation of drip irrigation systems at all of the estates, which use less water than conventional systems; and acquisition of new coffee bean processing equipment, which uses considerably less water than existing equipment.
15. Increased waterborne diseases: Waterborne and water-related (i.e., malaria) diseases are endemic to the area. Historically, waterborne diseases have been responsible for most of the health complaints received at the government clinic on Kateshi estate. Malaria is especially widespread; bilharzia (schistosomiasis) less so. As a result of the planned dams and irrigation canals in connection with the project, there is likely to be an increase in the prevalence of waterborne diseases. With construction of a water treatment plant in late 1999, however, the sponsors expect that the prevalence of such diseases will be reduced significantly. APC makes clinical and medical facilities available to employees and the immediate community. The World Health Organization (WHO) has advised the sponsors against distributing malaria prophylaxis to employees and their families because it could interfere with the natural levels of immunity that exist in populations continually exposed to malaria.
16. Restoration of land disturbed during construction: The only major construction work will entail the building of dams and weirs. Land disturbed by such construction is limited (not more than 2-3 ha). Where not inundated, these lands have been revegetated with a grass cover upon completion of construction, to prevent erosion. Most of the materials required for dam construction have been obtained from within the reservoir basin. Once extraction is complete, the borrow areas are rehabilitated by leveling all slopes to at least 45º and spreading original stripped top soil over the excavated areas before inundation begins. Spillway approach and return channels have been excavated down to solid, non-erodable rock foundations and sidewalls are to be lined with masonry to prevent erosion. In addition to dam construction, the only other construction activities at Kateshi and Ngoli will be replacement of existing underground irrigation piping with drip irrigation systems and construction of housing and estate sheds. All excavation and trenching will be done manually, using employees from the estates. Very little new construction will be needed to upgrade the processing facilities -- old pulpers will be replaced with new ones, but the structures and conveyance systems will remain essentially the same. A structure for the processing facility will be constructed at Isanya. No new land will need to be cleared for the facility site.
17. General worker safety during construction: As noted above, construction activities will be primarily excavation and trenching. In most cases, estate employees will be used for these tasks. Estate employees will do construction of basic housing, and estate sheds. APC will ensure that all employees involved in construction activities are provided with overalls, gum boots, gloves, and safety helmets, as necessary. This requirement will extend to any external contractors (e.g., electrical, plumbing) used on site.
18. Power supply including fuel storage if applicable: All estate activities, including irrigation, processing, and domestic and administration activities, are powered by electricity from Zambia''s national grid. A back-up generator is used for the factory and basic lighting requirements. Fuel used at the estates is stored in aboveground bulk vessels supplied by the national fuel companies. At IFC’s request, all fuel storage tanks on the estates will be fitted with secondary containment structures capable of holding the entire contents in the event of a spill or breach.
19. Emissions from boilers and other sources: There are presently no boilers on the estate. In future the estates may make use of oil or diesel fired artificial dryers. These are not expected to consume more than 20 tonnes of fuel a day at peak season.
20. Workplace hygiene and housekeeping: Hygiene is relevant in the context of APC''s processing operations. Here precautions are necessary to maintain quality throughout the coffee washing process. Failure to maintain such standards would not in any way pose a threat to the health and welfare of the employees in question. APC considers good housekeeping a prerequisite to secure the commitment of employees to acceptable standards at work. Work is underway on the preparation of a best practices manual, which will in the future provide standards across the group in the management and maintenance of order in the estates activities, including relevant reporting standards. This manual is available at APC''s Harare office.
21. Provision of personal protective equipment and employee health and safety training: APC provides all necessary protective clothing as stipulated by its own policies, national employment guidelines and the recommendations of suppliers. Where appropriate, the company and its suppliers conduct intermittent safety training and education programs. Ablution facilities and toilet blocks are provided at the processing factory. All permanent employees are provided within the estate housing areas. Housing is provided for all 160 permanent staff. Casual workers are drawn from nearby communities and number between 800 and 2,000 depending on the time of year.
22. Solid and liquid waste disposal: Pulpery operations typically produce large volumes of effluent and solid organic wastes. These wastes are discharged to a series of seepage ponds, where solids are allowed to settle and liquids are pumped to the next pond. Conductivity of the effluent is high as a result of dissolved potassium and other salts from the coffee bean skins, and pH is low. The processing facilities at both Ngoli and Kateshi were sited away from any surface water bodies to prevent against the possibility that effluent would enter any of these bodies. Most processing takes place during August and September, at the peak of the dry season. As a result, the settling ponds are virtually dry by the time the rains begin in December. The probability of the seepage ponds overflowing and reaching any surface water bodies in the area is thus extremely low.
23. Over time, APC intends to install state of the art pulpery equipment at all three estates, which will employ a mechanical rather than fermentation based pulping process. This particular machinery has been developed as part of an "environmentally friendly" system to wet process coffee. The pulping process requires limited water and allows for much more effective composting of skins. The resulting compost has a high nutrient content and will be used as mulch on grasses on the estates. The washing process uses only 1 liter of water per kg of clean parchment coffee, compared to 30-40 liters per kg using existing equipment. Transport and grading of coffee in this processing system also uses much less water than conventional equipment. The net result of installing this new system will be to reduce significantly the water requirements per unit of coffee processed. As a result of the decreased water use, the system results in lower volumes of total effluent and a lower concentration of organic matter. There is at present no processing capability at Isanya, but the company intends to install a processing facility in early 2000.
24. Fire protection and life safety: APC takes precautions against fires which are prevalent during the dry season by establishing and maintaining perimeter fire-breaks, maintaining basic tractor-drawn fire fighting equipment in working order, and keeping essential fire extinguishers in the sheds and processing areas of the estates. There have been no significant fires over the period of APC’s tenure. All buildings have been fitted with new fire response equipment consistent with British Standards Institution (BSI) requirements. The in-field fire response system will include fire hydrants and reels connected to the irrigation system.
25. Based on its review of the environmental information provided by APC, 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, and environmental clearance is given for this project. 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
