Summary of Proposed Investment
Project Number
9055
Company Name
Drilltech Engineering Services Limited
Date SPI Disclosed
May 21, 1998
Country
Zambia
Industry
Manufacturing
Status
Completed
Sector
Iron (Pellets, etc.)
Department
Regional Industry - MAS Africa
Environmental Category
B - Limited
Previous Events
Approved : Jun 24, 1998
Signed : Jan 8, 1999
Invested : Apr 7, 1999
Project Description
SUMMARY OF PROJECT INFORMATION (SPI)
Project Name Zambia-Drilltech Engineering Services Limited
Zambia
Region Sub-Saharan Africa
Sector Mining
Project No 009055
Projected Board August 30, 1998
Date
Company Name Drilltech Engineering Services Limited
Technical Partner and/or Major Shareholders
Drilltech Engineering Services Limited is a Zambian company owned by William Mwiinga (53.3%), Zambia Venture Capital Fund (33.3%) and other employees of Drilltech (13.4%). William Mwiinga(43) has a degree in Mechanical Engineering and several years experience at top management level. He joined Boart Longyear Zambia Limited in 1995 and led the management buy-out of the drilling division, which resulted in formation of Drilltech. ZVCF is principally owned by CDC and is one of the few sources of long term funding in Zambia.
Project Cost Including proposed IFC investment
The project cost is US$950,000 and IFC has been requested to provide a loan of US$350,000.
Location of project and Description of site
The project is located in industrial area of Kitwe, on the Copperbelt.
Description of Company and Purpose of Project
Drilltech was setup in 1997. The company bought, from Boart Longyear, two diamond core surface exploration drilling rigs, four water well drilling rigs, and workshop equipment. The sponsors plan to upgrade the two old-type diamond drilling rigs and to buy a rotary rig which can be used for both surface and water well drilling. The modernisation and expansion project will enable the company to double the number of water wells drilled and to consolidate its mineral exploration drilling market.
IFC’s finance will complete the financing plan.
Environmental Category and Issues
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. Environmental health and safety issues include source of water and power on site, including fuel storage; dust emissions from drilling operations; contamination of ground water and/or surface waters; disposal of solid and other liquid wastes on site, including sewage; safety of underground structures and works; employee exposure to dust, heat and noise; provision of employee personal protective equipment; employee health and safety training; and fire safety and emergency response provisions.
IFC has reviewed copies of Drilltech environmental policy and employee health and safety practices as well as the proposed mitigation measures for the project. Drilltech normally draws water from its client’s water supply source for the period that it is operating on site and waste water is generally discharged to the client''s drainage system. Power is supplied by means of diesel powered generators, and fuel for generators is stored on site. At IFC''s request, Drilltech will in future store all fuel drums on bunded cement slabs, the bunds will be packed with sawdust to soak up any fuel that spills, and the sawdust will be incinerated on site as needed. Waste oil is collected in drums and returned to Drilltech''s headquarters, where it is sold to mines for use as combustion fuel for furnaces. Dust emissions from drilling are controlled through wet drilling and bentonite is used as a drilling lubricant to keep dust levels down. Solid and liquid biodegradable wastes are buried on site in a central landfill area. Non-biodegradable wastes are returned to the company''s headquarters where they are recycled or disposed at a municipal waste site. In accordance with Zambian regulations, drill rig and workshop personnel are provided with goggles or face shield, hard hat, overalls, gloves, steel toed boots, and ear plugs or ear muffs. Use of this equipment is strictly enforced. To ensure that it undertakes work only for clients that adhere to these regulations, Drilltech has made it a policy only to accept contracts with mining companies operating within the requirements of national environmental protection laws. Drilltech will provide IFC an annual list of the mines for which it has performed contract drilling services, as well as written confirmation from the Ministry that each of these mines is operating in a manner that conforms to all Government of Zambia requirements.
The Environmental Review Summary (ERS) is expected to be available on or about May 29, 1998 from the Infoshop.
Date SPI sent to Infoshop May 21, 1998
“This Summary of Project Information is prepared and distributed to the public in advance of consideration of the proposed transaction by the Corporations Board of Directors. It is provided for the purpose of enhancing the transparency of IFC’s activities and should not be construed as presuming the outcome of IFC Board consideration.”
For additional Information contact: Corporate Relations Unit -
telephone: (202) 473-7711
facsimile: (202) 974-4384
Environmental documents for this project are available at http://www.ifc.org and from the World Bank InfoShop (http://www.worldbank.org/html/pic/aboutinfo.html).
Sponsor / Cost / Location
Related ESRS/ERS
