PROJECT

Projects

Environmental & Social Review Summary

Project Number

9722

Company Name

CEFAS S.A.

Date ESRS Disclosed

Feb 5, 2010

Country

Argentina

Region

Latin America and the Caribbean

Last Updated Date

Jan 2, 2017

Environmental Category

B - Limited

Status

Completed

Previous Events

Approved : Dec 17, 1999
Signed : Jun 21, 2000
Invested : Oct 4, 2000

Sector

Quarried Construction Materials (Including Asbestos, Crushed Stone Construction, Aggregates, Granite Block, Sand, etc.)

Industry

Manufacturing

Department

Gbl Ind, Manufact, Agribus & Services

Project Description

6

Environmental Review Summary (ERS)

Project Name Argentina - CEFAS

Region Latin America and Caribbean

Sector Quarried Construction Materials

Project No. 09722



1. The project consists of: (i) physical restructuring of production facilities at Quilpo, Dock Sud, La Preferida, Curymil, and Decavo; (ii) increase of quarry reserves and modernization of lime production facilities at La Providencia; (iii) construction of a new lime production plant at San Juan; (iv) establishment of a new distribution facility at Alianza; and (v) general upgrade of environmental standards at all plants. The project, estimated to cost US$40.9 million (including working capital, bridge loans and interest during construction) will be implemented in 39 months starting from October 1,1999 and going until the end of year 2002.

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

· site selection, and site selection procedures;
· air emissions including fugitives;
· liquid effluent handling, treatment and discharge;
· fuel and hazardous materials storage and handling;
· solid and hazardous waste handling and disposal;
· quarry reclamation plans;
· contingency and emergency response plans;
· labor force reduction;
· employee training; and
· general health and safety issues.

The sponsor has presented plans to address these issues and demonstrated that the proposed project will comply with applicable local regulations and World Bank policies and guidelines. The measures proposed to address the project’s potential environmental impacts during its implementation are summarized in the paragraphs that follow and described in a Corrective Action Plan (CAP) (See Appendix A) for most of the operations.



3. CEFAS manufactures four main products: a) quick and hydrated lime (several qualities), produced in 3 locations; b) aggregates, produced at a plant and quarry complex in the province of Buenos Aires and sold through three distribution centers in the same province; c) mortar, produced at a plant in the province of Buenos Aires and sold through a distribution center in the same province; and d) gypsum and clay, produced in the province of Neuquén.

Quilpo
4. This plant, located at approximately 20 km to the south of the city of Cruz del Eje, in the Province of Cordoba produces hydrated lime. The process includes perforation, blasting, crushing, and screening during the extraction of the limestone; calcination, crushing, grinding, hydration, during the production of the hydrated lime; and packaging. Manually operated vertical kilns, fired with wood, are use in the process.

5. Process and domestic water is obtained from the Quilpo River and it is treated prior drinking use. There are two well-ventilated fuel oil underground storage tanks. The main process emissions are particulate matter from the handling of materials, the calcination, and hydration processes. There are no air pollution controls currently installed. The domestic liquid effluents generated are disposed in septic tanks. The process liquid effluents generated by the hydration process are released to the nearby land The waste oils generated will be reused in the lubrication of equipment.

6. As part of the environmental improvements, Cefas will change the fuel used to be natural gas and install air pollution control devices in the transfer points, crushing and grinding, kilns, and hydration and packaging areas. Cefas will build a gas line to connect to the main gasoduct and be able to access the natural gas. An environmental impact assessment, acceptable to IFC, will be conducted to evaluate the potential implications as a result of the new gas line. In addition, it will develop procedures for the proper handling and disposal of liquid and solid residues; and implement water reuse practices (i.e., cooling and grinding areas, etc).

La Providencia
7. This plant, located in Olavarria in the Province of Buenos Aires, produces hydrated lime. The process includes crushing, hydration, grinding, and packaging. This plant has six vertical kilns using coke as fuel. Process water is pumped to the plant from a lake located in one of the project’s quarry. Groundwater is used for domestic use and commercial water for drinking purposes.

8. The main process emissions are particulate matter from the handling of materials, material stockpiles, and the calcination and hydration processes. There are no air pollution controls currently installed. The domestic liquid effluents generated are disposed in septic tanks. The process liquid effluents are released to the nearby land. The waste oils generated will be reused in the lubrication of equipment.




9. As part of the environmental improvements, Cefas will install a new palletizing plant with the appropriate air pollution control devices and will also install air pollution control devices in the transfer points, crushing and grinding, kilns, and hydration and packaging areas to reach compliance with the World Bank guidelines. It will also develop procedures for the proper handling and disposal of liquid and solid residues.

Decavo and Corcemar
10. These two plants located in the Province of San Juan, produce quick and hydrated lime. Decavo has four calcination kilns and two hydrators while Coemar has only two calcination kilns. The hydration process takes place only at Decavo. The overall operation, consisting of exploitation, crushing, hydration, grinding, and packaging. The four 23 tpd capacity, vertical quicklime kilns, which use coke as fuel, are being currently repaired and reconditioned. The two 65 tpd vertical kilns will be automatically controlled. A hydrator, previously used at the Malaguenio plant, will be installed at Decavo along with a hydration lime to be transferred from the KM 25 plant, a no longer operational Cefas facility.

11. Process and domestic water is obtained from groundwater sources and the water from human consumption is obtained from commercial dispensers. There is one aboveground fuel oil storage tank without double containment to prevent ground contamination in case of leaks or accidental spills. The domestic liquid effluents generated are disposed in septic tanks. The process liquid effluents are released untreated to the nearby areas. The waste oils generated will be reused in the lubrication of equipment.

12. The main process emissions are particulate matter from the handling of materials, the calcination and hydration processes. The operation of this plant is manual and there is an overall need for air pollution control systems. The four kilns will stop operating, once the new plant to be installed nearby begins operation in the year 2003. In addition, the hydrators will operate sporadically and will be permanently dismantled by the year 2006. Cefas will commission an environmental impact study (EIS) satisfactory to IFC before initiates operations in the new quarrie (March) which will be exploited as part of the proposed project. Copy of this EIS will be submitted to IFC prior first disbursement.

13. As part of the environmental improvements, Cefas will install air pollution control devices in the transfer points, crushing and grinding, kilns, and hydration and packaging areas; and install the secondary containment for the fuel oil aboveground storage tank. It will also develop procedures for the proper handling and disposal of liquid and solid residues; and implement water reuse practices from the hydration process.

14. In the proximity to the Decavo installations, there is an extensive volume of discarded lime generated from previous practices that Cefas will integrate to the current process. This action not only will generate an economical benefit but will also be part of Cefas overall environmental improvement since it with eliminate an otherwise waste material.



Dock Sud
15. The mortar producing facility is located in Avellaneda, in the western side of the Dock Sud Port Area in the Province of Buenos Aires. Operations include reception the raw materials, drying of the sand in a rotary kiln, mixing, and packaging. Natural gas is the fuel used in the drying kiln. Process water is obtained from the La Plata River, the drinking water is obtained from commercial dispensers, and the domestic water is obtained from the water supply system.

16. The process water generated are returned uncontaminated to the river. The domestic liquid effluents generated are disposed in septic tanks. The main process emissions are particulate matter from the handling of materials, the drying operations and the segregation of the materials. The domestic solid residues are collected by the local authorities. The minimum amount of hazardous residues generated (waste oils) are properly stored and when sufficient quantities are collected will be treated by an external authorized contractor.

17. As part of the environmental improvements, Cefas will install air pollution control devices in the raw material reception area, transfer points, sand drying, and packaging areas; develop procedures for the proper handling and disposal of liquid and solid residues; and control the sediments in the stormwater drainage.

La Preferida
18. This aggregates producing facility is located in the Sierra Bayas zone near the city of Olavarria in the Province of Buenos Aires. The process includes exploitation, crushing, and screening. This plant has three aboveground fuel oil storage tanks with double containment to prevent ground contamination in case of leaks or accidental spills.

19. Process and domestic water is obtained from groundwater sources. There are three fuel oil aboveground storage tanks with secondary containment to prevent soil contamination in case of leaks or accidental releases. The main process emissions are particulate matter from the materials storage piles, crushing, screening, and handling of materials. The domestic liquid effluents generated are disposed in septic tanks. The process liquid effluents are released untreated to the nearby grounds. The domestic solid residues are collected by the local authorities. The minimum amount of hazardous residues generated (waste oils) are properly stored and when sufficient quantities are collected will be treated by an external authorized contractor.

20. As part of the environmental improvements, Cefas will install air pollution control devices in the transfer points, crushing and grinding areas. It will also develop procedures for the proper handling and disposal of liquid and solid residues; and prepare and submit to IFC quarry reclamation programs including measures to control erosion and deposition in nearby water bodies as a result of the exploitation activities.




Curymil
21. This plant is located in Zapala, Province of Neuquen exploits gypsum and clay. As part of the improvements, Cefas will build gypsum storage silos and will ensure that the air emissions are properly controlled to ensure compliance with the World Bank guidelines.

Malagueño and Capdeville
22. The Malagueño plant, located in the province of Cordoba, produced hydrated lime. Cefas has closed down the operations at this plant due to the overall poor technical and environmental conditions. Equipment from this plant will be transfer to be used as needed in the other Cefas operations.

23. The Capdeville plant located approximately 5 km to the north of the city of Mendoza, which produces lime and hydrated lime will be permanently closed down by December 1999.

San Juan-New Plant
24. A new hydrated lime facility will be installed in the Los Berros area, which will replace the Decavo operations. Groundwater will be used. It is anticipated this plant will use natural gas as fuel and will consist of two vertical shaft kilns and a new hydrator. In addition, this plant will install crushing, grinding, and packing equipment, as well as an automatic palletizer. The hydrator and the distribution center will be located next to the Retamito railroad station located approximately at 10 km from the plant site.

25. This plant will be built and operated in compliance with the applicable World Bank guidelines. The air emission will be fully controlled and the liquid effluents generated will be either recycled or treated before there are released to the environment. Cefas will conduct an environmental impact assessment for this project. Copy of this study will be submitted to IFC prior first disbursement.

26. In addition to the several distribution centers located in various cities in Argentina including Buenos Aires, Cordoba, Mendoza, etc., Cefas will installed a new distribution center at Alianza on the outskirts of Buenos Aires. This installation will include reception and storage of materials. The operation will be properly controlled so that there are no air emissions to the atmosphere above the 50 mg/Nm3 World Bank particulate guideline. Cefas will submit to IFC an assessment of the environmental impacts and the control measures to be implemented to ensure compliance with the applicable World Bank guidelines prior to first disbursement.

27. To reduce noise emissions, Cefas will regularly maintain the equipment at all installations and if necessary it will implement corrective measures to ensure compliance with the applicable World Bank guidelines.

28. Cefas will prepare and submit to IFC quarry reclamation programs for all its current quarries as well as the abandoned and new quarries to be exploited. These programs will include better exploitation methods to control erosion and deposition in nearby water bodies as a result of the exploitation activities and reforestation programs.

29. Cefas will establish an environmental health and safety group to identify problems, establish corrective and proactive action programs, train personnel, and monitor performances. This group will operate both at the corporate level with an specialized professional and at the plant level with a responsible environmental person who reports to the plant manager. In addition, Cefas will develop a comprehensive environmental management system by which it will establish a detailed monitoring program including the assessment of groundwater quality, will develop contingency plans, will established a rigorous employee training, occupational health and industrial safety programs, etc.

30. All Cefas installations will have well-equipped systems to respond to emergencies, perform periodic fire drills, and have well trained fire-brigades available at all times. Cefas will continue to provide to and will require the use of personal protective equipment (hard hats, dust mask, hearing protection, etc.). The employees will receive pre-employment and periodic medical check-ups and will have access to well-equipped medical facilities at each one of the plants.

31. Cefas is committed to inform IFC of any additional initiative that they implement, during the life of the project, and that generates environmental impacts. Thus Cefas will submit the potential impacts and proposed mitigation actions before such initiative is implemented.

32. By project completion, Cefas’s operations will be in full compliance with the relevant World Bank guidelines and policies and with the Argentinean environmental standards. Cefas will annually submit to IFC a monitoring report to ensure ongoing environmental compliance during the life of the project. However, during the implementation of the CAP, Cefas will submit semi-annual environmental reports informing IFC about the progress of the CAP. Minimum information to be provided in the environmental monitoring reports is provided in Appendix B

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

34. IFC will monitor Cefas’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.


APPENDIX B

MONITORING REPORTS MINIMUM REQUIREMENTS

For each one of Cefas plants:

· CAP status including key developments or deviations from the original;
· status of the mitigation actions for the projects defined during that year;
· stack emission monitoring results;
· process and domestic water liquid effluents concentrations;
· ambient noise levels;
· significant incidents, if any;
· annual statistics for occupational accidents and illnesses including number of
employees, work hours and lost-time incidents;
· rate of work related accidents and incidents
(Rate = # of incidents/# of workers)
· interactions with the local communities; and
· industrial, safety, and environmental employee training programs.

In case of any deviation from the applicable World Bank Environmental and Occupational Health and Safety guidelines, the company shall inform IFC within a period of not more than five (5) working days about the nature of such deviation and the steps taken to correct such deviations.

Environmental and Social Mitigation Measures

Broad Community Support