Environmental & Social Review Summary
Project Number
9808
Company Name
Frutera del Pacífico, S.A.
Date ESRS Disclosed
Feb 5, 2010
Country
Guatemala
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 : Feb 18, 2000
Invested : Mar 31, 2000
Sector
Fruits and Vegetables
Industry
Agribusiness and Forestry
Department
Regional Industry MAS LAC & EUR
Project Description
- 3 -
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 Guatemala- Frutera del Pacifico
Region Latin America and Caribbean
Sector Food and Agribusiness
Project No. 009808
1. The project consists of a US $20 million investment to be undertaken by Frutera del Pacifico to put into production 1,412 ha of banana plantation at two farms ( Olga Maria and La Sierra) on the Pacific coast of Guatemala. Of this total, the company has already developed 750ha of banana plantation at the Olga Maria farm.
2. This is a category B project according to IFCs 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 provided by the sponsor. The following potential environmental, social, health and safety impacts of the project were analyzed:
· Land acquisition and development;
· Agricultural practices in the plantations;
· Water supply, sustainability and discharge;
· Solid waste management
· Management and handling of hazardous materials;
· Environmental management systems;
· Employment and labor commitments and worker health and safety.
The information provided about how these issues and potential impacts have been addressed in the development of the project are summarized in the paragraphs below.
3. Land acquisition and development: The two farm sites have been leased from non-resident owners and prior land use was for agriculture (sugar cane, cotton and cattle). Employees of former lessees have been re-employed by the project sponsor and development of the farms for banana production will not result in physical or economic displacement of other parties. Two small rivers drain through the La Sierra farm (the Rio Seco and Zanjon Puyamute) and two small rivers (including the Rio El Danto) border the Olga Maria farm. Development of the farms will have no significant effect on these or other natural habitats. Right of Way alignments for water supply and access roads are required and these will be developed without economic displacement or impacts to natural habitats.
4. Agricultural practices in the plantations: A range of agrochemicals will be used on the farms. Herbicides and pesticides will be applied by trained backpack spray operators and fungicides for Sigatoka control will be applied aerialy under standard industry operating practices and controls. The use of pesticides, herbicides and fungicides will conform to industry standards and requirements and to the Environmental Management System (EMS) that will be developed by the sponsor for both farms (see section 9). Field application of herbicides and pesticides at the Olga Maria site is already good and similar systems will be implemented at the La Sierra farm. The sponsor aims to reduce use of agrochemicals through management and other interventions (by maintaining shade and reducing weed growth and regular census of bananas for fungal attack) and agrochemicals will be stored securely at each site and use of chemicals will be recorded and monitored.
5. Water supply, sustainability and discharge: Irrigation of the farms is required for part of the year and water will be abstracted from adjacent rivers and eight on-site bore holes. Permission to abstract water for the La Sierra farm has been obtained from the "Departamento de Normas y Regulaciones, Ministerio de Agricultura" and it has been determined that abstraction will have no impact on other users of the river water or the wider environment. Similar permits are being sought for the Olga Maria site. A sprinkler irrigation system will be installed at both farms to maximize irrigation efficiency.
6. The only discharges will be from the packing plants (estimated at 350gallons of borehole water/minute at each plant) and septic discharges from toilets etc. During the packing process, bananas are washed with a solution containing cleaning and fungicidal chemicals. This water is subsequently used as the basis for Sigakota control liquids. Wash water that does not come into contact with chemicals receives basic treatment (settling tanks to remove suspended solids) before being discharged to adjacent water courses. Septic wastes are disposed of on site via septic tanks. A water recycling system will be installed at each of the packing plants as they are developed.
7. Solid waste management: Solid waste comprises organic waste from packing plants, plastic bags, card and pesticide containers. Plastic bags will be removed from organic debris and returned to the supplier for disposal or recycling. The remaining organic waste will be returned to the plantation as a soil conditioner. At the sponsor''s other farms, waste reduction programs have been implemented (primarily to reduce the use and waste of plastic) and similar programs will be developed at the project farms. Agrochemical containers will be collected, segregated and returned to the manufacturer by registered third parties and in accordance with industry standards and practices.
8. Management and handling of hazardous materials: Hazardous materials that will be used on the farms include agrochemicals (discussed above) and fuel. Fuel storage arrangements at La Sierra have been installed by Shell Oil (including secondary containment). Similar systems will be installed at the Olga Maria farm shortly. Hazardous wastes comprise pesticide containers (described above).
9. Environmental management systems (EMS): The sponsor has implemented an environmental management system at other plantations and is currently implementing an EMS at the Olga Maria farm. A similar EMS will be implemented at La Siera. The sponsor has already appointed an environmental manager for the project and detailed operational guidelines and procedures are being developed. These include guidance on the use of agrochemicals and training for employees and will allow the company to achieve ISO 14000 certification within 2-3 years.
10. Employment and labor commitments and worker health and safety : When fully developed, the farms will employ 1500 workers and will operate in compliance with Guatemalan labor requirements (including minimum age stipulations) and WBG requirements. Training in occupational health and safety and environmental management will be provided to all employees and appropriate clothing (gloves, masks etc) will be provided to employees working with agrochemicals. The sponsor will provide sanitary facilities, a cafeteria and recreational facilities at both farms.
11. IFC will monitor ongoing compliance with World Bank Group environmental, social and health and safety policies and guidelines during the lifetime of the project by evaluating reports submitted annually to IFC by the sponsor and by conducting periodic supervision. In particular, IFC will require annual reporting on:
· Development and implementation of the EMS and progress towards ISO 14000 compliance;
· Agrochemical application and use;
· Fuel storage.
12. Based on its review of available information regarding potential environmental impacts and proposed mitigation measures, IFC concludes that the sponsor''s proposed project will meet World Bank Group environmental, health and safety policies and guidelines and host country requirements.
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 Guatemala- Frutera del Pacifico
Region Latin America and Caribbean
Sector Food and Agribusiness
Project No. 009808
1. The project consists of a US $20 million investment to be undertaken by Frutera del Pacifico to put into production 1,412 ha of banana plantation at two farms ( Olga Maria and La Sierra) on the Pacific coast of Guatemala. Of this total, the company has already developed 750ha of banana plantation at the Olga Maria farm.
2. This is a category B project according to IFCs 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 provided by the sponsor. The following potential environmental, social, health and safety impacts of the project were analyzed:
· Land acquisition and development;
· Agricultural practices in the plantations;
· Water supply, sustainability and discharge;
· Solid waste management
· Management and handling of hazardous materials;
· Environmental management systems;
· Employment and labor commitments and worker health and safety.
The information provided about how these issues and potential impacts have been addressed in the development of the project are summarized in the paragraphs below.
3. Land acquisition and development: The two farm sites have been leased from non-resident owners and prior land use was for agriculture (sugar cane, cotton and cattle). Employees of former lessees have been re-employed by the project sponsor and development of the farms for banana production will not result in physical or economic displacement of other parties. Two small rivers drain through the La Sierra farm (the Rio Seco and Zanjon Puyamute) and two small rivers (including the Rio El Danto) border the Olga Maria farm. Development of the farms will have no significant effect on these or other natural habitats. Right of Way alignments for water supply and access roads are required and these will be developed without economic displacement or impacts to natural habitats.
4. Agricultural practices in the plantations: A range of agrochemicals will be used on the farms. Herbicides and pesticides will be applied by trained backpack spray operators and fungicides for Sigatoka control will be applied aerialy under standard industry operating practices and controls. The use of pesticides, herbicides and fungicides will conform to industry standards and requirements and to the Environmental Management System (EMS) that will be developed by the sponsor for both farms (see section 9). Field application of herbicides and pesticides at the Olga Maria site is already good and similar systems will be implemented at the La Sierra farm. The sponsor aims to reduce use of agrochemicals through management and other interventions (by maintaining shade and reducing weed growth and regular census of bananas for fungal attack) and agrochemicals will be stored securely at each site and use of chemicals will be recorded and monitored.
5. Water supply, sustainability and discharge: Irrigation of the farms is required for part of the year and water will be abstracted from adjacent rivers and eight on-site bore holes. Permission to abstract water for the La Sierra farm has been obtained from the "Departamento de Normas y Regulaciones, Ministerio de Agricultura" and it has been determined that abstraction will have no impact on other users of the river water or the wider environment. Similar permits are being sought for the Olga Maria site. A sprinkler irrigation system will be installed at both farms to maximize irrigation efficiency.
6. The only discharges will be from the packing plants (estimated at 350gallons of borehole water/minute at each plant) and septic discharges from toilets etc. During the packing process, bananas are washed with a solution containing cleaning and fungicidal chemicals. This water is subsequently used as the basis for Sigakota control liquids. Wash water that does not come into contact with chemicals receives basic treatment (settling tanks to remove suspended solids) before being discharged to adjacent water courses. Septic wastes are disposed of on site via septic tanks. A water recycling system will be installed at each of the packing plants as they are developed.
7. Solid waste management: Solid waste comprises organic waste from packing plants, plastic bags, card and pesticide containers. Plastic bags will be removed from organic debris and returned to the supplier for disposal or recycling. The remaining organic waste will be returned to the plantation as a soil conditioner. At the sponsor''s other farms, waste reduction programs have been implemented (primarily to reduce the use and waste of plastic) and similar programs will be developed at the project farms. Agrochemical containers will be collected, segregated and returned to the manufacturer by registered third parties and in accordance with industry standards and practices.
8. Management and handling of hazardous materials: Hazardous materials that will be used on the farms include agrochemicals (discussed above) and fuel. Fuel storage arrangements at La Sierra have been installed by Shell Oil (including secondary containment). Similar systems will be installed at the Olga Maria farm shortly. Hazardous wastes comprise pesticide containers (described above).
9. Environmental management systems (EMS): The sponsor has implemented an environmental management system at other plantations and is currently implementing an EMS at the Olga Maria farm. A similar EMS will be implemented at La Siera. The sponsor has already appointed an environmental manager for the project and detailed operational guidelines and procedures are being developed. These include guidance on the use of agrochemicals and training for employees and will allow the company to achieve ISO 14000 certification within 2-3 years.
10. Employment and labor commitments and worker health and safety : When fully developed, the farms will employ 1500 workers and will operate in compliance with Guatemalan labor requirements (including minimum age stipulations) and WBG requirements. Training in occupational health and safety and environmental management will be provided to all employees and appropriate clothing (gloves, masks etc) will be provided to employees working with agrochemicals. The sponsor will provide sanitary facilities, a cafeteria and recreational facilities at both farms.
11. IFC will monitor ongoing compliance with World Bank Group environmental, social and health and safety policies and guidelines during the lifetime of the project by evaluating reports submitted annually to IFC by the sponsor and by conducting periodic supervision. In particular, IFC will require annual reporting on:
· Development and implementation of the EMS and progress towards ISO 14000 compliance;
· Agrochemical application and use;
· Fuel storage.
12. Based on its review of available information regarding potential environmental impacts and proposed mitigation measures, IFC concludes that the sponsor''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
