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This Environmental Review Summary is prepared and distributed in advance of the IFC Board of Directors’ consideration of the proposed transaction. Its purpose is to enhance the transparency of IFC’s activities, and this document should not be construed as presuming the outcome of the Board of Director’s decision. Board dates are estimates only.
Any documentation which is attached to this Environmental Review Summary has been prepared by the project sponsor and authorization has been given for public release. IFC has reviewed this documentation and considers that it is of adequate quality to be released to the public but does not endorse the content. |
Environmental Review Summary with attachments : Corrective Action Plan |
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| Project number | 20653 |
| Project name | Wadi Holdings |
| Country | Egypt |
| Sector | Agriculture And Forestry |
| Department | Agribusiness |
| Company name | Wadi Holdings |
| Environmental category | B |
| Date ERS disclosed | May 12, 2005 |
| Status | Active |
| Previous Events | Invested: May 17, 2006
Signed: June 24, 2005
Approved: June 17, 2005 |
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| Project description |
The project is a corporate loan to Wadi Holdings Company (SAE) (Wadi), one of Egypt’s leading poultry breeding companies. Wadi and its subsidiaries have, in recent years, branched out into poultry-feed and olive production. The company is now positioning itself for future growth and diversification. Under its current expansion and diversification plan (2004 to 2008), Wadi will achieve the following:
- add new grandparents hatchery and breeder sites for day old chicks (DOC),
- implement broiler sales and contract farming,
- expand olive and vegetable acreage, production and processing, and
- joint venture with foreign and local partners to set up a glass container manufacturing plant for its own needs and those of the local market; and
- invest in North Africa and in the Middle East region in poultry projects and other agribusiness ventures.
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| Environmental Category B disclosure requirements |
IFC requires that this document is made available through the World Bank InfoShop and to the locally affected community no less than 30 days prior to project consideration by the IFC Board of Directors.
The Summary of Project Information (SPI) also provides details of where the ERS has been made available to the locally affected communities. The SPI must be sent to World Bank InfoShop no less than 30 days prior to project consideration by the IFC Board of Directors.
To view the Summary of Project Information(SPI) for this project, click here |
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| Environmental and social issues |
This is a Category B project according to IFC’s Procedure for Environmental and Social Review of Projects because a limited number of specific environmental and social impacts may result that can be avoided or mitigated by adhering to generally recognized performance standards, guidelines or design criteria. Review of this project consisted of appraising technical and environmental /social information submitted by the project sponsor and a physical review of all existing operations and sites proposed for expansion in Egypt. The following potential environment, health and safety and social impacts of the Project were analyzed.
- Management systems for quality, food safety and environmental affairs;
- Sustainability of farming practices and activities;
- Sustainability and quality of potable water for farming, animal rearing and food processing;
- Discharges to the environment (air emissions and wastewater);
- Solid waste management;
- Proposed glass manufacturing operation;
- Occupational health and safety; and
- Future poultry and agricultural expansions in North Africa and in the Middle East region.
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| Proposed mitigation for environmental and social issues |
The sponsor has presented plans to address these impacts to ensure that the proposed project will upon implementation of the specific agreed measures, comply with IFC environmental and social requirements, host country laws and regulations and the World Bank/IFC environment and social policies and the environmental, health and safety guidelines. Information about how these potential impacts will be addressed by the sponsor/project is summarized in the paragraphs that follow. Further information is provided in the attached Environmental Action Plan (EAP).
- Management systems for quality, food safety and environmental affairs.
Beginning in 1999 Wadi obtained ISO 9001-2000 quality management certification for several of its operations, which are all situated along the principal highway connecting Cairo to Alexandria. The companies is continuing to expand the reach of this program into poultry and farming operations. Wadi is seeking Hazard Analysis and Critical Control Point (HACCP) food safety certification for several operations. These include Wadi Food operations at Km 54 and Km 90 in Sadat industrial City. HACCP certifications are expected during the third quarter of 2005. Wadi will continue expanding its quality and food safety management systems to facilitate compliance with Egyptian regulatory and IFC guideline requirements in compliance with the attached Environmental Action Plan (EAP).
- Sustainability of farming practices and activities.
Wadi’s grape and olive farms are certified organic in accordance with European Standard EU 20092\91, which provides ecological guidelines for all agriculture products imported into or grown in the European region in a bid to protect consumers from fraud. Additionally, Wadi is seeking certification of its farms to the National Organic Program (NOP) under the direction of the Agricultural Marketing Service (AMS), an arm of the United States Department of Agriculture (USDA). This program facilitates domestic and international marketing of fresh and processed food that is organically produced and is designed to assure consumers that such products meet uniform standards for organically produced produce. Wadi’s farm inputs include water from deep wells, inorganic mineral fertilizers (dolomite-magnesium; sulfur; feldspar; rock phosphate; and chelated micronutrient compounds), and compost prepared at Km 49. Organic compost is biologically produced from solid waste emanating from animal rearing and farming operations. Compost is used in nurseries, planting and grove maintenance. Wadi operations utilize integrated pest management techniques and selected biological controls for pests of economic significance. Specifically, light traps, pheromone traps, and Trichogramma wasps are used to control the most common pest species: the olive fruit fly, Bactrocera oleae, and the olive fruit moth, Prays Oleae. Additionally Wadi poultry operations are surrounded by physical barriers to prevent entrance of dogs and other animals.
- Sustainability and quality of potable water for farming, animal rearing and food processing.
Water for farming, feed mill, animal husbandry, and employee housing operations is sourced from government-permitted ground water wells. Water samples from food manufacturing and packaging operations are collected routinely and checked for potability in compliance with HACCP food safety and other quality management requirements.
- Discharges to the environment (air emissions and wastewater).
Wadi operations utilize electric power supplied by the public grid. In general the company does not generate significant air emissions from operations. Sanitary wastewater generated by employee housing and employee facilities at each installation is discharged to septic tanks and subsurface absorption fields; wastewater from food manufacturing operations at Sadat City is discharged to the wastewater system for the industrial complex in compliance with facility permitting requirements; and wastewater at bulk olive packaging and olive oil manufacturing operations at Kilometer 54 is collected and used for dust suppression on roads and similar purposes. Collected wastewater at this operation will be treated biologically to render it acceptable for drip irrigation of agricultural crops in accordance with the attached Environmental Action Plan (EAP).
- Solid waste management.
Wadi collects organic solid waste from agricultural operations and bedding materials from animal husbandry and composts these materials in an operation situated at Km 49. Resulting organic compost is used for cultivation of seedlings and grafted stock in nurseries and planting of young trees and vines in the fields. Wadi will optimize this operation and establish new olive groves on some 2000 acres in the offing. These operations will collect available organic wastes and produce high quality compost for Wadi needs and for the local market. General solid waste from housing and other operations is at present managed informally. Wadi will develop a mandatory waste segregation standard operating procedure and incorporate this document into the procedures manual developed for quality management systems and, subsequently, implement this program. The procedure will formalize the company’s objective of using all available organic waste for compost manufacturing and to collect other wastes (e.g. used oil, plastics, carton, etc.) for resale. This program will be planned and implemented in accordance with the attached Environmental Action Plan (EAP).
- Proposed glass manufacturing operation.
In a joint venture with foreign and local partners, Wadi Holdings will set up a glass container manufacturing plant for Wadi’s own products and also for the needs of the local market on an industrial plot situated in Sadat Industrial City. An environmental assessment required to obtain government permits to construct the facility is underway at present. The turn key plant will be supplied by the Hwa Hsia Glass Co. Ltd of Hsin Chu, Taiwan's largest container manufacturer. Raw materials will be sourced locally, the furnace will be gas fired, and the manufacturer will submit certification and calculations confirming that wastewater and air emissions from plant operation will comply with IFC guideline and Egyptian regulatory limits in accordance with the attached environmental action plan (EAP).
- Occupational health and safety.
Wadi provides pre-employment physical examinations for employees and medical care. Additionally, the company provides general and job specific training programs for employees. However, there are existing work place safety issues at several operations. In order to improve occupational health and safety in all existing and planned new operations, Wadi will conduct an audit of existing operations to determine existing gaps between present operations and the requirements of IFC’s occupational health and safety guideline. Identified corrective measures will be implemented in accordance with the attached Environmental Action Plan (EAP).
- Future poultry and agricultural expansions in North Africa and in the Middle East region. IFC will work closely with Wadi to ensure that planned operations in these regions are designed and constructed to facilitate compliance with IFC guidelines. |
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| Conclusion |
| Accordingly, IFC concludes that the proposed project will meet the applicable World Bank/IFC environment and social policies and the environmental, health and safety guidelines upon successful implementation of the agreed mitigation measures. |
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| Monitoring and compliance |
IFC will evaluate the project’s compliance with the applicable environmental and social requirements during the lifetime of the project by reviewing the annual monitoring reports (AMRs) prepared for the project covering:
- the status of implementation of all measures contained in the Environmental Action Plan and
- ongoing performance of project-specific environmental, health and safety activities as reflected in the results of periodic and quantitative sampling and measuring programs. Periodic site supervision visits will also be conducted. |
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| Environmental and Social Documentation |
| The following supporting document provides further details of environmental and/or social issues: Environmental Action Plan (EAP). |
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