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Environmental Review Summary with attachments : Resettlement
Action Plan
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Project number 10305
Project name Sao Paulo Alpargatas Northeast Expansion
Country Brazil
Sector Textiles, Apparel & Leather
Department Latin America & Caribbean
Company name Sao Paulo Alpargatas S.A.
Environmental category B
Date ERS disclosed May 25, 2001
Status Pending Approval
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Project description
Sao Paulo Alpargatas S. A. (SPASA), is the leading Brazilian footwear
manufacturer. The investment program comprises: (i) the modernization
of plant facilities through the acquisition of state-of-the art
equipment aimed at achieving lower production costs; (ii) the
expansion of the production capacity of sandals and other rubber
and PVC footwear, of athletic footwear, and of coverings and tarpaulins;
(iii) expansion of the Meggashop strategic outlets and Timberland
operations; (iv) investment to upgrade the Company's environmental
practice; and (v) various other investments to improve SPASA's
operating efficiency, including training of personnel
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) provides details of where
the ERS has been made available to the locally affected community.
The SPI must be sent to 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
Environmental and social 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. The review of this project
consisted of evaluating technical and environmental information
submitted by SPASA and the technical and environmental appraisal.
The following potential environmental, health, and safety impacts
of the Project and SPASA's existing core operations were analyzed:
· site selection, planning and land acquisition;
· air emissions;
· process and domestic liquid effluents treatment and discharge;
· solid and hazardous wastes handling and disposal;
· fire prevention and emergency response;
· workforce retrenchment;
· occupational health and safety programs; and
· employee training program
Proposed mitigation for environmental and social issues
SPASA has presented plans to address these issues and demonstrated
that the proposed project will comply with applicable local regulations
and World Bank policies and guidelines. The measures proposed
to address the project's information provided indicating how these
potential environmental impactsimpacts will be addressed in the
development of the project includes during its implementation
are described in a Corrective Action Plan (CAP) (See Appendix
A) and is summarized in the paragraphs that follow.
.
SPASA operations include seven footwear-manufacturing plants,
two covering and tarpaulin plants one sports ball manufacturing
plant, nineteen Meggashops outlet stores and three Timberland
stores. Six of the plants are located in the northern and Northeastern
Brazil, Natal, Santa Rita, Campina Grande, Joao Pessao, and Manaus.
The additional four operations are located at Mogi Mirim (Sao
Paulo State), Poso Alegre ( Minas Gerais State), and two plants
at Veranopolis (Rio Grande do Sul State). In addition to these
plants there are also 14 minor scale satellite plants that support
most of the above mentioned operations.
SPASA has five business areas including Athletic Footwear, Sandals
and Low-end Footwear, Coverings and Tarpaulins, Meggashops, and
Timberland operations. The manufacturing of athletic footwear
includes cutting/preparation/stitching; sole manufacturing, assembling,
and finishing. There are two types of footwear manufacturing (i)
vulcanized shoes, and (ii) cemented shoes. Vulcanized shoes require
that rough rubber and the fabric parts are manually cemented using
forms and adhesives. The finished shoe is further vulcanized.
Cemented shoes have all parts cemented using forms and adhesives.
Sandals production includes the cementing of rubber sheets, assembly
of the sole, vulcanization, and final parts assembly. The two
types of coverings, polyethylene and PVC, are produced in two
steps, the fabric production and the film extrusion. By pressing
both, film and fabric, the coverings are formed.
As part of the project, SPASA will open nineteen additional Meggashops
in commercial areas. All the land acquisition will be conducted
as private land sales with legal owners on a willing buyer/willing
seller basis and will involve neither relocation nor economic
displacement since they will be located in already developed and
commercially zoned areas that do not contain any squatters or
illegal land occupant.
For its operations, SPASA uses a variety of materials including
rubber, PVC, adhesives, solvents, plasticizers, canvas, leather,
nylon, polyester, dyes, etc. The types of materials used will
not be increased as a result of the project. The vapors generated
in the work environment are being controlled and will continue
to be controlled as a result of the project. SPASA will install,
as needed, the appropriate ventilation systems and will control
the air releases prior discharging them to the atmosphere. The
boilers, which are used to produce steam will be monitored to
determine the air emission levels and will be also controlled
to ensure that all emissions and workplace air conditions are
in compliance with the applicable World Bank guidelines.
SPASA will continue recirculating process waters and, as part
of the project, will upgrade and install, as necessary, wastewater
treatment plants to treat domestic and process effluents prior
being discharged. The treated effluents will be in compliance
with the applicable World Bank guidelines.
Currently, SPASA has solid waste segregation programs and as needed
it will develop solid residues handling management programs. As
part of the project, in several of its plants, it will upgrade/build
areas for proper temporary storage and handling of the solid residues
generated. Most of the wastes generated (i.e., paper, plastic,
rubber, wood, etc.) are either reintegrated into the process or
sold for reuse. The remaining wastes are and will continue to
be properly disposed, in accordance to the local regulations,
by either placing them in secured landfills or incinerating them
in cement kilns.
SPASA will continue implementing and will develop, as needed strict
measures to handle the raw materials. Specific measures include,
double containment walls around the tanks to avoid the risk of
ground contamination in case of a leak or an accidental spill.
It will also upgrade the raw material storage areas, which stored
flammable materials, at most of the operations to prevent the
possibility of accidents. Needed fire prevention measures will
be implemented and the personnel will continue to be trained in
the safe use and handling of these materials.
All SPASA operations will continue to maintain excellent housekeeping
and safety signaling. In addition, as part of the project, SPASA
will continue implementing measures and programs that will enhance
significantly the working conditions of its employees. The rigorous
ergonomics programs already initiated will continue to be implemented
and the excellent medical access available at all plants will
be maintained and improved as needed.
To reduce noise emissions, the equipment at all plants is regularly
maintained and if necessary, additional measures will be taken
to comply with the World Bank guidelines.
SPASA has established an environmental health and safety (EH&S)
structure at plant level which depending on the number of employees
includes safety engineers, environmental technicians, physicians,
and nurses who work in close cooperation with the plant managers.
This team is doing an outstanding job in identifying problems,
establishing corrective and proactive action programs, training
personnel, and monitoring performances. As part of their activities,
the EH&S team implementationperforms monitoring of its air
emissions, liquid effluents, and workplace conditions; risk analyses
during and after commissioning of new projects; develop and implement
standard operating procedures; conduct training; and ensure that
the fire brigades, which are available at all times, are fully
trained. SPASA will complement the existing EH&S structure
at corporate level, as needed and mutually agreed with IFC, with
specialized professionals to ensure the implementation and full
compliance of the environmental programs and initiatives.
SPASA has engaged in a retrenchment program at some of its operations
in full compliance with the Brazilian labor requirements and the
Union Agreements. In addition, SPASA is providing medical insurance
for three additional months beyond termination and will pay additional
salaries in addition to those established by law. SPASA will also
provide support through the Commerce and Industry Federations
to implement training and placement programs.
SPASA is committed to inform IFC of any initiatives that generate
material environmental impacts and will submit the proposed mitigation
actions before such a project begins to be implemented. Likewise,
SPASA will inform IFC, at the earliest possible date, of any expansions
or improvements that could cause physical or economic displacement
and will submit plans for appropriate mitigation measures to be
approved by IFC prior to implementation of such an activity.
Conclusion
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.
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: (i) the status of implementation of
any measures contained in the Corrective Action Plan (CAP) and
(ii)] ongoing performance of project-specific environmental, health
and safety and social activities as reflected in the results of
periodic and quantitative sampling and measuring programs. Periodic
site supervision visits will also be conducted.APPENDIX A
CORRECTIVE ACTION PLAN
SÃO PAULO ALPARGATAS S.A.
ENVIRONMENT INVESTMENT PROGRAM (US$'000)
TIMEFRAME
TOTAL
Natal #10 (and stitching satellite units)
19.0
Improvements of the Warehouse for Chemical Products
December 2002
3.0
Improvement of Effluent Treatment Plant for domestic and process
wastewater
December 2002
6.0
Air emissions and workplace air control systems
December 2002
5.0
Improvement of Solid Waste & Hazardous Material Temporary
Storage
December 2001
3.0
Ergonomic Evaluation Program
December 2001
2.0
João Pessoa #30 (and stiching satellite units)
47.0
Improvements of the Warehouse for Chemical Products
December 2001
6.0
Improvement of WWTP for Sanitary Effluent
December 2003
25.0
Improvement of Solid Waste & Hazardous Material Temporary
Storage
December 2001
6.0
Ergonomic Evaluation Program
December 2001
3.0
Other
7.0
Santa Rita #26 (and stiching satellite units)
379
A new Warehouse for Chemical Products
December 2002
200.0
Improvement of WWTP for domestic and process Effluent
December 2002
12.0
Improvement of Solid Waste & Hazardous Material Temporary
Storage
December 2001
12.0
Ergonomic Evaluation Program -Satellites
December 2001
10.0
Air emissions and workplace air control systems including boilers
December 2002
35.0
Improvement / Replacement Fire Fighting Equipment
December 2002
45.0
Improvement of fuel and raw materials storage tanks (impermiabilization)
December 2002
35.0
Ergonomic Evaluation Program
December 2001
25.0
Others
5.0
Veranópolis #15 & # 25 (and stiching satellite units)
852
Warehouse for Chemical products
December 2002
200.0
Fire Fighting Equipment
December 2002
40.0
Improvement of Solid Waste & Hazardous Material Temporary
Storage
December 2001
80.0
Improvement of landfill
December 2002
50.0
Heat-protection for press facilities (15)
December 2001
40.0
Improvement in medical care facilities (15)
December 2002
50.0
Water tank revamp (15)
December 2001
20.0
Improvement of oil storage tanks (3 aboveground, 1 underground)
(impermibilization)
December 2002
25.0
Revamp of roof (15)
December 2003
40.0
Dressing Room and other employee facilities (dining room)
December 2003
100.0
Evaluation of air emissions including boilers/ Filter Installation
if needed
December 2002
35.0
Contaminated Soil Assessment (25)
December 2002
26.0
New Effluent Treatment Plant dor domestic and process wastewaters
(15)
December 2003
80.0
Medical surveillance programs for employees
December 2001
15.0
Training in health, security and environmental best practices
December 2001
21.0
Ergonomic Evaluation Program
December 2001
30.0
Jaboatão #7
378.0
Warehouse for Chemical products
December 2002
20.0
Fire Fighting Equipment
December 2002
30.0
Improvement of Solid Waste & Hazardous Material Temporary
Storage
December 2001
20.0
Heat-protection for press facilities
December 2002
40.0
Improvement for 6 aboveground storage tanks (impermibilization)
December 2001
25.0
Revamp of roof
December 2003
80.0
Dining Room for employees
December 2003
30.0
Air emissions and workplace air control systems including boilers
December 2002
35.0
Contaminated Soil Assessment
December 2002
35.0
Improvement of WWTP for Process and Sanitary Effluent
December 2003
18.0
Medical surveillance programs for employees
December 2001
10.0
Ergonomic Evaluation Program
December 2001
30.0
Others
5.0
Campina Grande #22
959
Warehouse for Chemical products
December 2002
200.0
Improvement of Fire Fighting Equipment
December 2001
60.0
Improvement of Solid Waste & Hazardous Material Temporary
Storage
December 2001
80.0
Heat-protection for press facilities
December 2002
60.0
Improvement of raw materials and fuel storage tanks (impermebialization)
December 2002
50.0
Revamp of roof
December 2003
40.0
Expansion of Dining Room / Dressing Room for employees
December 2001
60.0
Air emissions and workplace air control systems including boilers
December 2002
35.0
Contaminated Soil Assessment
December 2002
40.0
New Effluent treatment plant for domestic and process wastewaters
December 2003
200.0
Medical surveillance programs for employees
December 2001
35.0
Training in health, security and environmental best practices
December 2001
9.0
Ergonomic Evaluation Program
December 2001
90.0
Alagoa Nova #266
7.0
New Septic Tank
December 2002
3.0
Fire Fighting Equipment
December 2001
4.0
Mogi Mirim #17
527
Warehouse for Chemical products
December 2001
150.0
Replacement of oil tanks
December 2001
25.0
Air emissions and workplace air control systems including boilers
December 2002
95.0
Fire Fighting Equipment
December 2002
15.0
Improvement of Plant Flooring
December 2002
40.0
Replacement of air conditioning system
December 2001
11.0
Improvement of fuel storage tanks (impermibilization)
December 2002
10.0
Revamp of roof
December 2003
70.0
Imprevement of Ventilation System for Final Products (Sporting
Goods) Warehouse
December 2003
25.0
Contaminated Soil Assessment
December 2002
35.0
Ergonomic Improvement program
December 2001
35.0
Training in health, security and environmental best practices
December 2001
12.0
Meggashops
Fire Prevention and Safety Management Programs
December 2001
4.0
TOTAL
3,168
Environmental and Social Documentation
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 decision.
Any documentation which is attached to this Environmental Review
Summary has been prepared by the 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.
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