6. Chemical use on the farm will be limited to the addition of calcium and phosphorus compounds (added as an inorganic fertilizer to reduce feed use through the promotion of phytoplankton growth) and malathion or rotenone (to treat residual ponds following shrimp harvesting and drawdown). Use of these materials will be controlled and the sponsor has demonstrated adequate management capacity at other sites to ensure that use will conform to WBG requirements.

7. Water use and waste water management from production and processing activities: Pond water at the farm will be exchanged at the rate of approx. 5 % of volume per day, (2 million m3 per day at full project development) to maintain good dissolved oxygen levels and salinity conditions in the ponds. There is an adequate and sustainable supply of water (which will be drawn from the Gulf of Venezuela) and abstraction will not have a significant impact on other users of the Gulf or the wider environment. At the proposed stocking densities, waste water effluents will be in compliance with WBG requirements (Table 1), however, in addition, the project will incorporate a 225 ha. effluent treatment pond, providing a greater than 24 hr. retention time before discharge water is returned to the Gulf of Venezuela. The inclusion of the effluent treatment pond is to provide flexibility should higher stocking densities be selected in the future. Surface runoff will be directed to a large (812 ha) retention area and then diverted around the site to discharge directly to the sea. It is not anticipated that this will cause significant ecological impacts.

8. The soils at the site are predominantly clay and will form an effective barrier against the seepage of saline waters into the ground. There are no people or agricultural activities within or adjacent to the site that could be affected by changes in salinity. Similarly, given the physical barrier between the site and the Olivitos Reserve, the risk of impacts to the wetland are not significant. The sponsor will be required to monitor groundwater quality as part of the project.

9. Wastewater from the (third party owned and operated) packing plant that the project will use during phase I is discharged to Lake Maraciabo and data provided by the owner demonstrates compliance with Venezuelan standards and requirements. The new packing plant that will be designed to comply with effluent WBG requirements.

10. Solid waste management and disposal: The principal waste materials generated by the farm and packing plant will be: sanitary wastes of employees, materials from office and cafeteria, repair shop discards including used motor oil, feed sacks, and shrimp heads. The sponsor will recycle and re-use material where possible and will dispose of remaining farm waste at the Quisiro landfill which will be improved through a joint program to be developed by the sponsor and local municipality.

11. Hazardous Materials Use and Management: Hazardous materials that will be used include: diesel fuel, rotenone, malathion, chlorine, and lime. (Table 2). Diesel fuel will be stored in secure tanks with secondary containment. Rotenone and malathion application will be by trained operators, and chemicals will be stored in a secure location. The existing packing plant uses Freon 502 refrigerants and there are no significant emissions from other sources. The new plant will use ammonia or CFC free refrigerants and will be designed to comply with WBG requirements.

12. Environmental Management Systems (EMS): An EMS will be established and in house monitoring of key parameters will be undertaken. This will be complemented by periodic sampling by independent and government agencies as part of the permitting requirement of the Government of Venezuela. Responsibility for implementing and supervising the EMS will be assigned at the senior technical level, reporting directly to the project’s General Manager. The packing plant is HACCP and ISO 9000 certified and the ISFV operation will develop and implement similar quality management and health and safety requirements when it develops its packing plant. The project will also be designed to comply with the Global Aquaculture Alliance''s codes of practice for responsible shrimp farming Global Aquaculture alliance (1999) Codes of practice for responsible shrimp farming GAA St Louis MO (http://www.GAAlliance.org).

13. Occupational health and safety issues: The sponsor will provide a full support and benefit package as required under Venezuelan law (social security and insurance, minimum wage + 20%, vacations and productivity bonus). As per the Venezuelan Labor Code, an Occupational Health and Safety plan will be implemented as part of the project.

14. Land acquisition process and possible impacts related to physical and/or economic displacement: The farm will be developed on approximately 8,000 hectares whose southernmost boundary is located approximately 2 km to the north of the village of Quisiro. The entire site was acquired by Interaqua in two lots from a single family in the early 1990s and there has been no physical resettlement or economic displacement. The project will not affect public access to the beach or interfere with traditional fishing and recreational activities carried out there. There are no recorded archaeological or cultural remains or sites within the development area.

15. IFC will monitor ongoing compliance with World Bank Group environmental, social, 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 confirmation:

· of compliance with Venezuelan EIA review requirements (relating to compliance with Venezuelan norms and standards, construction practices, mitigation and monitoring practices - including those relating to monitoring of ecological impacts to the Olivitos wetland);
· of pesticide (and other agrochemical) use and management practices as well as details of pests controlled;
· that the company is achieving WBG requirements for waste water quality from all its sites and Venezuelan effluent standards from the Maracaibo packing plant that is owned by third parties;
· that the development and operation of the Quisiro landfill complies with WBG requirements; and
· of the progress in implementing the company''s EMS.

16. Based on its review of available information regarding potential environmental impacts and proposed mitigation measures, IFC concludes that the proposed project will meet World Bank Group environmental, social, health and safety policies and guidelines and host country requirements.


Table 1 Waste water quality from existing Interaqua operations