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OEA/Foz

Environmental & Social Review Summary

This Environmental and Social 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 and Social 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.
Project number 27787
CountryBrazil
SectorUtilities
DepartmentInfrastructure
Company nameFoz do Brasil S.A.
Environmental categoryB
StatusPend PDS-IR
Date ESRS disclosedJuly 6, 2009
View Summary of Proposed Investment (SPI), click here
OverviewCategory & Applicable StandardsKey Issues & MitigationCommunity EngagementsClient's Documentation

Overview of IFC's scope of review
IFC’s review included visits to Odebrecht Engenharia Ambiental (“OEA”, or the “Company”) offices in Sao Paulo, Brazil, where meetings and interviews with key staff (management, technical, human resources) were conducted, and numerous, relevant internal documents and records surrounding the Company’s environmental and social (E&S) performance were analyzed. Among others, these included environmental health and safety policies; integrated health, safety and environmental management program and procedures manual; environmental licenses; risk management audit framework; environmental, health and safety monitoring indicators; and presentation materials about the Company business activities. IFC staff conducted inspections of representative operating facilities – water treatment and wastewater treatment plants serving the cities of Rio Claro and Limeiras in the State of Sao Paulo; a wastewater treatment plant under construction in the city of Rio Claro; a new construction and demolition waste disposal facility located in the outskirts of the City of Sao Paulo; a wastewater ocean outfall project under construction in the City of Salvador, State of Bahia; and a contaminated soil incineration facility located near the City of Mosoro in the State of Rio Grande do Norte. Finally, the E&S appraisal also relied on the relevant findings of an independent technical and management review of Odebrecht Engenharia Ambiental conducted by the consulting firm Encibra on behalf of IFC (May 2009).
Project description
The Project involves the financing of equity investments in municipal and industrial water and sanitation projects developed by Odebrecht Engenharia Ambiental (“OEA”, or the “Company”), Odebrecht S.A. (“ODB” or the “Sponsor”) environmental engineering subsidiary formed to own and manage the Odebrecht group’s water supply, sewage treatment and industrial waste management investments. OEA already has a substantial portfolio (9 projects as of May 2009). These investments may include (i) investments in existing water and sanitation assets in Brazil under public-private partnerships (“PPP”) and traditional concession structures; (ii) the expansion of activities by acquisitions and/or associations/partnerships; and (iii) the development of greenfield projects.