PROJECT

Projects

Environmental & Social Review Summary

Project Number

9974

Company Name

PBG S/A

Date ESRS Disclosed

Feb 5, 2010

Country

Brazil

Region

Latin America and the Caribbean

Last Updated Date

Jan 2, 2017

Environmental Category

B - Limited

Status

Completed

Previous Events

Approved : Mar 3, 2000
Signed : Apr 24, 2000
Invested : Jun 16, 2000

Sector

Glazed Ceramic Tiles

Industry

Manufacturing

Department

Gbl Ind, Manufact, Agribus & Services

Project Description

Environmental Review Summary (ERS)


Project Name Brazil - Portobello II

Region Latin America and Caribbean

Sector Ceramic Tiles

Project No. 009974


1. Portobello S.A. is one of the leading Brazilian manufacturers of ceramic tiles. Its products include ceramic tiles for walls, floors, and external cladding, mortar and grout, all produced in its Tijucas, State of Santa Catarina. This project will expand Portobello’s operations and consist of: (i) a new plant of porcelain tiles in Tijucas, Santa Catarina, (ii) a new mineral processing unit to prepare material for the new porcelain tile plant, (iii) a new mortar and grout plant in Sao Paulo, (iv) the expansion of Portobello Shop franchisee retail chain with 35 new stores, (v) additional working capital and restructuring of part of the Company’s high-cost short-term debt. It is estimated that the Project will be completed by the end of 2000.

2. This is a category B project according to IFC’s environmental and social 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 and site review completed by IFC’s Technical and Environment Department staff. The following potential environmental, health and safety impacts of the project were analyzed:

· Economic and/or physical displacement resulting from land acquisition;
· Air emissions;
· Liquid effluents handling, treatment and discharge;
· Solid waste handling and disposal;
· Employee exposure to heat, noise, dust and chemical substances; and
· Fire safety and emergency preparedness.

The sponsor has presented plans to address these issues and demonstrate that the proposed project will comply with applicable governmental and World Bank requirements. The information provided about how these potential impacts are addressed in the development of the project is summarized in the paragraphs that follow.

3. Portobello’s land acquisition has been conducted on a “willing seller-willing buyer” basis. The designed properties for the extraction of minerals or raw materials, have also been acquired on a willing seller – willing buyer basis. Once the properties are acquired, Portobello request the Federal Government for an exploration and extraction authorization of the properties. The mines are located away from residential areas and resettlement of people has not occurred. Portobello is committed to undertake and provide IFC with details of future land acquisitions and to comply with World Bank policies and guidelines. Although not anticipated, any land acquisition requiring resettlement will be subject to the preparation of a Resettlement Action Plan to be approved by IFC prior to acquisition of the land.

4. Air emission sources at the Portobello facilities includes the atomizer, the drier, the furnace and the exhaustion systems. Portobello has designed control systems for each unit to demonstrate compliance with Brazilian as well as IFC air emission levels. The matrix for all the energy sources will be modified through out the facilities for the use of natural gas only. The elimination of coal and liquefied petroleum gas as sources of energy will eliminate the emission of sulfur and ashes. This modification will also provide an energy cost reduction of about 22.1%. The exhaust systems at the Portobello’s facilities will capture all the suspended material and transport it to a baghouse system to be stored in tanks. The suspended material will be re-processed.

5. Liquid effluent generation including washing water from the separators, mills, tanks and water for cleaning, etc. will be transported to a tank with a capacity of 90 m3 for storage. Once the volume of wastewater accumulated is sufficient, this will be processed and the suspended solid collected in silos. Portobello’s wastewater treatment plant capacity will be increased once the expansion occurs, the facility consist of a series of stages which includes the removal through gravity to a decantation tank of the suspended solid, flocculant addition, transfer of flocculated water to a tank through a filter system, and discharge of treated water. Currently Portobello, uses 70% of treated water in its process, and it is expected to use 100% treated water in the future. Portobello liquid effluents comply with IFC guidelines for liquid effluents.

6. The solid waste generated at Portobello’s consist of plastic, paper, metal, and organic material. Plastic, and paper are sold to recycling companies. The waste consisting of damaged ceramic tile pieces go through a wet process for conditioning purposes for the later incorporation to the production process. The non-recycling solid waste will be collected and disposed of at a municipal landfill.

7. Fuel materials such as lubricant oils, grease, kerosene etc., are stored in appropriate areas. The liquefied petroleum gas area are protected with a metallic fence and contains fire extinguishing equipment. Only authorized personnel is allowed in these areas, and adequate training in handling of fuels and chemicals is provided to employees.

8. In general the noise level at the facilities will be below 85dBA, however, protective hearing equipment will be provided to employees for those areas that are above 85dBA. The facilities have adequate ventilation and lighting.

9. Fire protection equipment will be located through out all the facilities of Portobello. All employees will be trained in the use of fire fighting equipment. Fire and emergency preparedness training and drills are provided on a regular basis. Portobello is ISO 9002 certified and is expected to be ISO 14001 in early 2001. In addition, Portobello provides training for health and safety, ceramic production, and maintenance.

10. 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 Brazil requirements, and World Bank policies, and environmental, health and safety guidelines.

11. IFC will monitor ongoing compliance with World Bank policies and guidelines during the life of the project by evaluating monitoring 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