Ruritania Small Enterprise Support Program Sub-project:
PRIME 4U POULTRY FARM
I. BASIC PROJECT INFORMATION
The Ruritania SME Program aims to stimulate the development of agricultural production and
processing with particular emphasis on production for export to European Union countries. The project
is Category FI, with Category A and B sub-projects. An Environmental Management Framework (EF)
for the project sets out EA category screening criteria and general procedures for environmental
assessment, mitigation and monitoring. The intermediary Financing Instutions ( FIs) are responsible for
ensuring that the EF is followed, including carrying out the screening, assisting sub-borrowers to
understand and carry out their responsibilities under the EF , and monitoring implementation of subprojects to ensure that they comply with both Ruritanian national environmental laws and World Bank
environmental and social safeguard policies. In addition, Environmental Inspectors from the Ministry of
Environment are responsible for monitoring compliance with Ruritanian regulations and standards.
The “Prime 4 U Poultry Farm LLD” was set up in 1985 as a small operation to raise poultry
(chickens, turkeys) and process them for wholesaling to supermarkets and fast food chains, as fresh and
frozen whole birds, parts and processed products (e.g. chicken “nuggets,” chicken “jerky”). Specifically,
the business consists of the following operations:
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Purchasing day old chicks and raising them to slaughter size
Poultry slaughtering in its own slaughterhouse
Processing plant (e.g. extrusion of “nuggets”)
Packaging plant
Production of poultry feed in its own processing plant, using purchased raw grain and minerals
15 transportation trucks for carrying live poultry from farm to slaughterhouse, refrigeration vans
for transport to retail stores and airport
In 2004, the company sold $1.5 million in-country and for the first time had $0.5 million export to
Europe, primarily Holland and France.
B. Sub-Loan Objectives and Activities
Objectives: To expand poultry production of chickens and turkeys for fresh meat and frozen domestic
and export market by 25%. Improve the reliability and enhance the quantity of supply to retailers in
country and to improve quality of exports in terms of time products arrive at airport and packing and
boxing of shipped products. Improve waste control by having more efficient waste collection and
minimize waste volumes and reduce nitrate pollution in the Wuntskleen River through establishment of
on-site fertilizer production.
Investments: Modernization of the slaughterhouse with new equipment meeting EU standards
(including updated refrigeration and flash freeze equipment). Construction of 10 new warehouse style
poultry houses with external yard areas for production of new line of certified “cage free/free range”
poultry. Expansion of water supply and waste collection systems to service the new poultry houses.
Establishment of composting and dehydration facility for fertilizer production.
Total cost of sub-project: $2 million, including: USD 750,000 from the WB-financed SME Project
(remainder coming from the EU Export Promotion Fund and from the company’s own funds.
Project duration: 2 years
D. Project location, description of facilities and potentially affected communities/persons
The poultry farm occupies a fenced compound of 25 acres, of which about 10 acres is taken up with built
infrastructure and the remainder is mainly open grass and scrub brush transected by access roads and
paths and by several small streams which are tributaries of the Wuntskleen River, which is in turn a
tributary of the Danube. The farm lies 5 km to the west of the main town of Ganza (population 15,000).
There are three other small villages located downstream along the Wuntskleen River at distances of a, 4
and 8 km from the farm (total population about 8,000).
Physical infrastructure includes:
30 housing units, each having the capacity to hold 1000 adult birds.
Three silos and feed storage units.
Concrete slab with fuel tanks
Washing slab for vehicles
Workshop and sheds for vehicle maintenance and machinery repair
Facilities for worker dressing, washing/bathing; latrines
Chemical storage shed
Two generators to back up/supplement power from the main town grid
The slaughterhouse is located adjacent to one of the poultry houses and is connected to it by a
covered walkway.
The main water supply comes from connection to the town water system, but a water compressor uses
ground water for all outside washing (vehicles, buildings, paths, etc.)
New poultry houses will be located adjacent to existing houses on western side of the compound
The new composting and dehydration facility will be built on the eastern edge of the compound.
Task # 1: Indicate what is the EA Category for this sub-project, and why
Task #2: Indicate which Safeguard policies are likely to be triggered by this project and why
Task #3: Identify 5 significant potential negative environmental impacts of this project which
will need to be mitigated (for purposes of this exercise, fill in only the lefthand column of the
table).
Environmental
impact/issue
Mitigation
Measure
Monitoring
Indicator
Task #4: If appropriate, fill in the following Entitlement Matrix for at least three
groups/categories of “Project Affected People,” in accordance with the provisions of OP 4.12,
indicating the type of impact/loss on project affected people and their associated entitlement to
assistance.
Category of PAP/type of loss
Entitlement